Entrepreneurship: Types, Characteristics, and Economic Impact

This report provides a comprehensive overview of entrepreneurship and small business management. It begins by defining entrepreneurship and identifying various types of ventures, including micro firms, small organizations, medium enterprises, and social startups. The report then investigates the similarities and differences between these ventures, focusing on their purpose, capital requirements, techniques, workforce size, and associated risks. Furthermore, it discusses the different ranges of entrepreneurial ventures in both the corporate and public sectors, highlighting their unique characteristics and objectives. The report then examines the scope, growth, and development of entrepreneurial ventures, emphasizing the importance of small businesses to the UK economy. It analyzes the characteristics, traits, and skills of successful entrepreneurs, such as passion, market knowledge, risk-taking ability, and planning skills, and explores how personal background and experience can influence entrepreneurial success. The report concludes by summarizing the key findings and providing a detailed analysis of the factors contributing to entrepreneurial success and the impact of small businesses on economic growth.

Entrepreneurship and
Small Business
Management
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1. Identifying the different types of entrepreneurial venture..................................................3
2. Investigating the similarities and difference between entrepreneurial venture..................4
A) Discussing the Different range of entrepreneurial venture for demonstrating an
understanding of an entrepreneurship in both corporate and public sector............................6
B) Critically examining the scope, growth and development of entrepreneurial ventures....6
TASK 2............................................................................................................................................7
A) . Critically evaluating the contribution of micro and small firms in economy of UK......7
B) . Identifying the role of small business and their contribution to the regional, national and
global level.............................................................................................................................8
C) . Analysing the significance of small business to the economic growth of UK................8
TASK 3............................................................................................................................................9
1.Analysing the characteristics, traits and skills of successful entrepreneur..........................9
2. Analysing the way aspects of an entrepreneurial personality reflects entrepreneurial mind
set and motivation.................................................................................................................10
3. Examining the different arguments related to the characteristics of entrepreneurs.........11
4. Examining the way background and experience can hinder or foster entrepreneurship..11
5. Analysing the relationship between entrepreneurial entrepreneurial characteristics and the
influence of personal background and experience to specific successful entrepreneurs......12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Entrepreneurship can be defined as the activity of establishing new company, taking high
risk in order to gain profit in the future. Generally, setting up of small business require less
investment. An entrepreneur is a person who is accountable for managing various business
activities. Management can be referred to as alignment as well as coordination of various
activities in an enterprise. Business owners need to possesses specialized skills and core
competencies which will assist them in accomplishing desired objectives. Small business
enterprise is generally privately owned companies which consists of only few employees.
The purpose of the report is to determine the scope, growth as well as development of an
entrepreneurial venture. It also emphasizes on analyzing the contribution of small business to
economy of UK. Study will also demonstrate the significance of small business to economic
development of nation.
TASK 1
1. Identifying the different types of entrepreneurial venture
Entrepreneurial venture emphasizes on delivering on providing advisory services to the
micro and big organization. Such firm are generally owned by a single owner. An entrepreneur
has responsibility to manage various business activities. There are different types of
entrepreneurial ventures these are:
Micro firms: They are generally recognized as small business. Establishment of such type
of companies requires less investment. An entrepreneur also invests less amount of money on
technology, plant and machineries. These companies consist of fewer workers. Micro business
has less capital turnover as compared to other companies. Examples of micro companies are
bakeries, small retailers etc.
Small organizations: Setting up of these type of business ventures generally requires high
capital investment. Such companies also employ few workers. Few small organizations are
regional supermarkets, consulting companies etc. Small organization are privately owned.
Medium enterprise: these organizations are considered to be as backbone of country. In
UK, medium enterprise is contributing a lot towards generation of employment and economic
development of nation (Dees, 2017). Such type of organization generally consists of less than
250 workers.
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Relationship with typology of an entrepreneurship.
Social startups: Social welfare is the main purpose of these types of an organizations.
Firm intends to manufacture product or services for the betterment of society. Income earned by
these organizations are generally used for development of society. Social startup has high scope
of growth in the future.
Scalable start up: The aim of these companies is to bring positive as well as big change in
the society. An entrepreneur of such firm are generally high risk takers. Business owner
generally concentrates on creativity as well as quality of the business activities. These
organizations want to higher revenue without incurring any additional expenses.
Large company entrepreneurship: The purpose of these types of enterprises is to earn
high profits and achieve growth by providing innovative products and additional services to
customers. Large organization has to face stiff competition. It is very much important for big
organizations to develop products or services considering the change in trends.
2. Investigating the similarities and difference between entrepreneurial venture.
Basis Micro business
enterprises
Small organisations Medium
Meaning Micro enterprise are
those which operates
business at very small
scale and there are
only few business
activities
Small companies are
those which operates
on medium scale.
These firm has wide
scope as well as
potential of growth.
Such organisation
requires high capital
investment.
Purpose Purpose of this type
of company is to earn
revenue.
The aim of such
enterprises is to foster
growth and to foster
growth.
Purpose of such
companies is to
become large
corporations.
Capital Generally require less
capital investment.
As compared to micro
firm these companies
require some huge
amount of
These business
entities requires huge
amount of capital
investment.
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investments.
Techniques Traditional
techniques are
generally used by
these companies for
executing various
business activities.
Both intensive
technology and
labour is used for
performing different
business operations.
These companies
generally use advance
technology.
Number of workers Micro firm generally
does not consists of
more than nine
employees.
The maximum
number of employees
in small organisations
are 50.
Medium size
organisation consists
of more than 250
workers.
Risk Setting of such type
of business involves
less risk.
Medium risk is
involved in
establishing small
business (Storey,
2017).
There is high risk
involved in starting
up of this type of
business ventures.
Investment in plant and
machineries
Entrepreneur of micro
firm makes
£26186.60 investment
on plant and
machinery
Business owner of
small business only
invest £5,23,789.6 for
acquiring technology.
These organisation
make huge
investment of money
that is
£10,47,463.97on
machineries.
Similarities between Entrepreneur ventures
 The biggest similarities are that the purpose of all three types of businesses is to earn
higher revenue and profit. Objective of micro, small and big companies is to earn income
and foster growth in the future.
 Losses under all the three kinds of businesses cannot be set off easily because, all these
establishments are not so big that they can bear heavy losses.
 All these business venture intends to provides good quality of products as well as services
to customers.
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 The other similarity between micro, small and medium organization is that all three types
of business ventures uses technology for executing business activities.
 Some kind of Risk is associated with establishment of these type of corporations.
A) Discussing the Different range of entrepreneurial venture for demonstrating an
understanding of an entrepreneurship in both corporate and public sector
Public sector entrepreneurship: It can be referred to as declaration of innovative public
policies which generates economic prosperity by changing the status Quo economic
environment into economic units. Public sector entrepreneurship has direct influence
transformation primarily by increasing the effectiveness of knowledge networks. Business
owners of public limited companies are people outside government. They are basically
public servants. The functions of public entrepreneur are to work closely with people in the
country. Due to changes in business environment n entrepreneur of public organizations are to
act as co-designers of services as well as co-producers of results.
Public sectors organization is mainly concerned about the creation of new services,
improving productivity etc. The main purpose of these organizations is to provide services to
citizen. Examples of public sector enterprises are electricity board, gas and oil, Police
services, Postal services etc.
Corporate sector- This industry consists of the mixture or set of all types of companies
such as private, public and in profit organizations, Corporate sector is considered to be as a
part of economy which mainly have focus on transactions of business. The main purpose of
companies operating in this sector is to earn income and generate profit (Abor, 2017).
Corporate sector has crucial role to play in development as well as diffusion of technology.
In the future, this sector will act as major driver of bringing the positive and big change in
UK.
B) Critically examining the scope, growth and development of entrepreneurial ventures.
Owners of small companies has perspective that an industry in which they are operating their
business has wide scope of growth in the future. An entrepreneur of small firm is optimistic
about their business. They have expected that there will be 2.3 percent increase in sales in one
year.
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An entrepreneur of small companies is mainly concerned about the effect of economic
changes on their profitability. Some researchers perceive that an entrepreneur has good
opportunity and wide scope of selling service rather than manufacturing a product.
The entrepreneur can achieve better results if the size of the business is small. As per the view of
Shattner (2016), there is high chances of growth of small medium enterprises in UK. This
statement has been given by Shatner (2016) considering the past trends and increase in number
of new start up . According to the opinion of Drucker (2015) as small firms are contributing to
the economy and social development, government should support these organizations in
fostering growth and development (Bridge and O'Neill, 2017).
TASK 2
A). Critically evaluating the contribution of micro and small firms in economy of UK
In ppt.
A). Identifying the role of small business and their contribution to the regional, national and
global level
In ppt.
A)Analysing the significance of small business to the economic growth of UK
In ppt.
TASK 3
1.Analysing the characteristics, traits and skills of successful entrepreneur.
An entrepreneur has some specialised skills, knowledge as well as expertise which helps
them in achieving success. They have abilities and core competencies which make them different
from other people within an organisation. In context of given case study, Steph Croft-Simon,
who is business owner of Nom food has innovation skills which is used for developing the
flavors in a drink. In addition to this, Steph Croft-Simon also have knowledge about industry and
market which has enabled her to become successful owner (Richter and et.al., 2016). She also
had the knowledge about management which has assisted her in managing various activities
involved in the process of development. The other characteristics, traits and skills of successful
entrepreneur are:
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Passionate – In context of given case study, Steph Croft-Simon she is very much passionate
about her work. The evidence of this fact is that, she has taken high initiatives for developing the
understanding about industry as well as market. In addition to this, she has put all her efforts in
finding the manufacturer who can develop innovative flavor for popcorn, all these activities
show her dedication towards work.
Product as well as Market knowledge- She has been successful in launching her product as she
had a knowledge about market and an industry.
Risk taker – this is the core quality which make them different from other people at workplace.
In context of given case study, despite of knowing the fact that the flavor she wants to add in the
popcorn might not be preferred or liked by customers, Steph Croft-Simon has taken risk to
launch new flavor of popcorn in the market.
Planning and management skills- Steph Croft-Simon also possess these skills. The evidence of
these fact is that, she has made an effective marketing plan and has managed all the promotional
activities in an effective manner. Planning and Good management skills has supported a lot in
becoming successful entrepreneur.
Confidence- Steph Croft-Simon was confident about the decision related to launching new favor
of popcorn made by her is correct. In addition, this, she was confident about the fact that a
market for popcorn that was simple, free from artificial flavors, and that wasn’t covered with
refined sugar.
2. Analysing the way aspects of an entrepreneurial personality reflects entrepreneurial mind set
and motivation
Entrepreneurial personality has direct as well as significant influence on person mind set
and motivation. Personality is the core element which encourages an individual to start their own
business. An individual gets motivated for establishing their company or business after getting
the idea. There are several components which constituent success of business owner. It also
involves an ability of person to take risk, generate new ideas, acquire leadership qualities and
management knowledge which is very crucial for running business in systematic manner. It is
very much important for an individual to continuously facilitate innovation, as this will help
them in becoming competitive (Richter and et.al., 2016). The external factors have direct as well
as significant influence on person personality. In context of the given case study, Steph Croft-
Simon has gain popularity due to successful launch of new flavored popcorn, this has enabled
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her to gain confidence. It is very crucial for Steph Croft-Simon acquire more skills in
understanding their Co – workers which will assist her in developing of more new business
ideas.
3. Examining the different arguments related to the characteristics of entrepreneurs
There are basically two notions are associated with the statement whether entrepreneur is
born or made: Some scholars states that skills and knowledge are gained by entrepreneur by
working in different fields. While some people perceives that an individual possess
entrepreneurial skills as well as leadership qualities from birth. As per the view of Baum (2014)
who states that an entrepreneur is made (Zhao, 2016). He also said that the external factors
encourage an individual to develop specific abilities and core competencies. Baum also perceives
that the management as well as leadership are two skills which are developed by an individual
due to situation around them. In addition to this an entrepreneur possess risk bearing capabilities
which they developed with the passage of time.
4. Examining the way background and experience can hinder or foster entrepreneurship
Life experience as well as education are two major factors which shapes an individual
personality. The important qualities of successful entrepreneur are self-management, motivation
and coordination. In context of given case scenario, Steph Croft-Simon has all three traits which
made her successful entrepreneur. This has been evidence from the fact that Sales of potato
crisps have taken a hit,but have not yet been crushed by the rise of the kernel , experiencing this
situation she has not felt demotivated , in fact she has taken another risk of launching new flour
of popcorn. She has successfully address the loop holes due to which she could not get success in
previous project, this quality of Steph Croft-Simon has supported her in achieving success in
launching other product. It has analyzed from the case scenario that experience is the main
component which helps n individual in dealing with major challenges. In context of given case
scenario, Steph Croft-Simon has to face many challenges in launching new floured pop corns
due to intense level of competition in an industry (Cowling and et.al., 201.). This challenges she
could face easily as Steph Croft-Simon had a depth know3ledge about the market which has
enabled her to make an effective plans and strategies.
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5. Analysing the relationship between entrepreneurial entrepreneurial characteristics and the
influence of personal background and experience to specific successful entrepreneurs
Experience is the factor which has direct effect on person’s personality. Positive as well
as negative characteristics possess by an individual is due to their past experience. Experience
allows an individual to gain knowledge about particular field. In context of given case study,
Steph Croft-Simon has failed in maintaining the demand of crisp potato chips in the market, she
has learned from her failure (Birley and Stockley, 2017). This was her past experience which has
encouraged her to gain knowledge about the market. In context of case study, risk taking ability
is mainly an acquired skill of Steph Croft-Simon in which she has already dealt with the same
situation before in her business experience. When once all challenges are successfully handled
by an individual, then its enables a person to increase their level of confidence.
CONCLUSION
It has been concluded from the report that small medium enterprise has contributed a lot
towards social and economic development of United Kingdom. Study has also concluded that
individual past experience, background and personality have direct influence on their
entrepreneurial mindset and motivation. It has been concluded from the project that risk taking
capacity is the core quality of an entrepreneur. Report has also concluded that small medium,
enterprises in UK have high scope of growth. It has also been concluded that small business has
great importance in context of nation success and growth.
It has been recommended that an individual in order to become success entrepreneur should
develop various, skills and core competencies. In addition to this, a person should not get
demotivated from failure and an individual should learn from their mistakes.
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REFERENCES
Books and journals:
Abor, J.Y., 2017. Public Sector Interventions and Small Businesses. In Entrepreneurial Finance
for MSMEs (pp. 153-167). Palgrave Macmillan, Cham.
Birley, S. and Stockley, S., 2017. Entrepreneurial teams and venture growth. The Blackwell
handbook of entrepreneurship, pp.287-307.
Bridge, S. and O'Neill, K., 2017. Understanding Enterprise: Entrepreneurs and Small Business.
Macmillan International Higher Education.
Cowling, M. and et.al., 2015. What really happens to small and medium-sized enterprises in a
global economic recession? UK evidence on sales and job dynamics. International Small
Business Journal. 33(5). pp.488-513
Dees, J.G., 2017. 1 The Meaning of Social Entrepreneurship. In Case Studies in Social
Entrepreneurship and Sustainability(pp. 34-42). Routledge.
Dugguh, S.I., 2017. Entrepreneurship and small business: Strategic approach to alleviating
poverty and corruption in Nigeria. GSTF Journal on Business Review (GBR). 3(1).
Guiliani, F. and Torrès, O., 2018. Entrepreneurship: an insomniac discipline? An empirical study
on SME owners/directors. International Journal of Entrepreneurship and Small
Business. 35(1). pp.81-101.
Mauer, R., Neergaard, H. and Linstad, A. K., 2017. Self-efficacy: Conditioning the
entrepreneurial mindset. In Revisiting the Entrepreneurial Mind (pp. 293-317). Springer,
Cham.
Richter, N. and et.al., 2016. Fostering and Hindering Factors—Success of Early Stage Internet-
Enabled Startups.
Storey, D., 2017. Six steps to heaven: Evaluating the impact of public policies to support small
businesses in developed economies. The Blackwell handbook of entrepreneurship,
pp.176-193.
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Zhao, Y., 2016. Entrepreneurial mindset. Education for Sustainable Happiness and Well Being,
Routledge: New York, pp.66-84.
Online
McAllister. J.,2017 Importance of small business in the economy. [Online]. Available through. :
<https://www.makeitcheaper.com/blog/the-role-of-small-businesses-in-the-uk-
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