Entrepreneurship: Venture Types, Traits, and Economic Impact

This report provides a comprehensive overview of entrepreneurship and small business management, exploring various dimensions and aspects of entrepreneurial ventures. It begins by defining entrepreneurship and categorizing different types, such as small business entrepreneurship, large company entrepreneurship, scalable start-up entrepreneurship, innovative entrepreneurship, and researcher entrepreneurship, highlighting their similarities and differences. The report then delves into the importance of small businesses and innovative start-ups on the economy and society, emphasizing their role in fostering innovation, increasing employment, and expanding the tax base. It also examines the traits of successful entrepreneurs, using the example of Mark Pearson, co-founder of Marcko Media, to illustrate these qualities. Finally, the report discusses environmental factors that can either foster or hinder the growth of entrepreneurship, providing a holistic understanding of the need, development, traits, and factors associated with entrepreneurship.

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1 Different types of Entrepreneurial Ventures and their relation with typology of
Entrepreneurship.....................................................................................................................1
P2 Similarities and differences between entrepreneurial ventures.........................................4
P3 Impact of Micro and Small businesses on Economy........................................................6
P4 Importance of small businesses and start-ups in growth of social economy....................7
P5 Traits of Successful Entrepreneurs....................................................................................8
P6 Aspects of entrepreneurial personality reflecting entrepreneurial mind set and motivation
..............................................................................................................................................11
P7 Personal life and background that foster or hinder entrepreneurship..............................13
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18
Books and Journals...............................................................................................................18

INTRODUCTION
Small business and small entrepreneurship models include those individual entrepreneurs
who carry out businesses with limited capital and resources in their hands but aspire to become
global leaders with their skills and ideas. Many such successful entrepreneurs have not only
fulfilled their ambitions, but also by bringing their ideas and visions before the world helped
upbringing new thought process, determination, creativity and zeal in many people around the
globe, especially in youth who are full of energy (Bylund and McCaffrey, 2017).
Entrepreneurship is not only carrying a business and earning profits, but it reflects qualities of
innovations, leadership and bringing some sort of social change by means of innovative
contributions.
In this report it has been attempted to understand different dimensions and aspects of
entrepreneurship. Firstly, meaning and types of entrepreneurship followed by similarities and
differences between them. Secondly, importance of small businesses and innovative start-ups on
economy and society are made comprehensive. This is followed by understanding different
qualities of successful entrepreneurs and how successful entrepreneurs and entrepreneurial
qualities helps motivating other people in society as well. For this purpose, report have taken
example of a very young successful UK based entrepreneur Mark Pearson, who is co-founder of
a new age web based news and advertisement company Marcko media, started in 2006. Also, a
discussion on different environmental factors fostering and hindering growth of Entrepreneurship
is made. All these topics, through brief understanding provides holistic frame of need,
development, traits and factors of entrepreneurship.
MAIN BODY
P1 Different types of Entrepreneurial Ventures and their relation with typology of
Entrepreneurship
Entrepreneurship is the complete process of developing launching and running a business
by potential entrepreneurs who have idea of business in their mind and who aspires to turn that
idea in reality. Entrepreneurs are not just businessmen but they have a certain will to bring
societal change through their innovation.
For fulfilling their goals and vision these potential entrepreneurs intends to make best use
of their skills and talent, carrying out such activities which reflects best output of them as a
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businessman as well as leader, these are called Entrepreneurial activities. Therefore, these
entrepreneurs then a give a name to their businesses, thorough which they develop products and
bring it before society, also these entrepreneurs and their products are known by that name. This
process of naming is called Enterprising and business entity than established is Enterprise.
Though there exist many types of Entrepreneurship, report shall be discussing most
common among them.
Small business Entrepreneurship
Small business entrepreneurship is the one where one or two individuals attempts of
starting a business which is based on a very general idea of business which mostly includes no
new innovations in it (Leonidou and et.al., 2018). These entrepreneurs have a tendency of
leading a common life, not aim over high profits. Employees that these businesses include are
entrepreneur himself or few of its local friends and family members. Small grocery shops,
departmental or retail shops, medical shops, local Saloons, local Boutiques etc. are few of the
examples in this type of business.
Large company entrepreneurship
This is that type of entrepreneurship when a business holds good amount of capital in
hands to invest in business and possess new innovations. These type of companies are part of C-
level executives group companies. With the help of their innovation skills these companies fulfil
market demands in such a way that proves beneficial for companies by means of high profits and
for consumers by means of fulfilment of their choices. Big tycoons like Microsoft, Google, Tesla
etc. falls in this type of entrepreneurship.
Scalable start-up entrepreneurship
In these type of entrepreneurship businessmen is motivated by new ideas and innovations
for meeting market demands by means of their business skills and innovation skills (Azoulay and
et.al., 2020). These entrepreneurs aim at bringing such products or services, that not only attracts
good profits for them but being some sort of new developments or revolution in society. Many
these start-ups start in parts of technological hub in advanced countries like Silicon Valley.
Examples of scalable Start-ups include Instagram, Uber etc.
Innovative entrepreneurship
These entrepreneurs are willing to bring new ideas and innovations in market and society
through their businesses, generally in field of technologies, by which people can continuously
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grow to make better life for themselves. Also, with these developments they inject a new order
that becomes impulsive in society that people have no options besides adapting these
developments (Kimmitt, Muñoz and Newbery, 2020). These includes Apple, YouTube etc. are
example of this entrepreneurship model.
Researcher entrepreneurship
Researcher entrepreneurs are those entrepreneurs who take their time to complete
research about their business plan, status of market, competition, marketing methods, demand
levels in market and future prospects of their businesses, before launching their business and
entering in market. These entrepreneurs do not wish to face any difficulty while running their
business operations.
Different models of entrepreneurship have been developed in business world.
Development of these models is attributed to fact of variety in requirements of consumers as well
as businessmen themselves across different parts of world (Gast, Gundolf and Cesinger, 2017).
Relation with entrepreneurial typology
Growth typology- Growth typology comprises of those attributes of small entrepreneurship
where innovators helps bringing such products in society and for customers which satisfies their
needs in quicker and modern way. By bringing such innovations, developers offer most modern
solutions to past problems of customers. Entrepreneurship models like Innovative
entrepreneurship, Scalable start-ups, Research entrepreneurship and Large scale entrepreneurship
are most helpful in this typology.
Lifestyle typology- Lifestyle typology means when businesses or entrepreneurs develop such
products which are according to new trends and changing preferences of consumers in society
and which brings a change in lifestyle of consumers and users. Research entrepreneurship and
innovative and large scale entrepreneurship again are efficient model in this context. Small scale
entrepreneurs are important in this context to bring products of modern time for direct use to
customers.
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P2 Similarities and differences between entrepreneurial ventures
Similarities Differences
Motive One common motive shared
by all type of entrepreneurship
businesses is profit. They all
seeks to achieve higher growth
and profitability for wellbeing
and survival of their business.
Some businesses may aspire to
seek larger growths and profits
like large scale companies and
Researcher entrepreneurship,
whereas, small business
enterprises look forward for
sustainable profits. Motive of
scalable start-ups are profit as
well as bringing social
changes.
Scale of operations Similarity is seen as each type
of entrepreneurship have their
consumer bases to which they
aspire to satisfy. No survival is
possible without market base
and business operations for
satisfying them.
Difference lies in size and
scale of business operations.
This is evident by looking at
Large scale companies and
Small scale business
enterprises. Similarly
Researcher enterprises have
large scale operations but
scalable start-ups not.
Level of Innovations Each type of entrepreneurship
have some sort of innovations
either in business skills or in
products or services.
Innovative enterprises and
scalable start-ups have high
level of innovations in
products and services. Large
scale companies have
reasonable levels. Whereas,
Small businesses reflects no
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new innovations in products.
Differences between Serial entrepreneurs, entrepreneurs and owner-managers
Similarities Differences
Serial Entrepreneurs These are those individuals
who have experience of
running multiple businesses.
They would have started from
any single business but with
time they further progressed in
several one.
They have knowledge and
experience of multiple sort of
businesses. Also, these people
have their business skills tried
and tested, thus their
competency is higher.
Entrepreneurs Entrepreneurs are individuals
running a business. They bear
most of the risks and rewards
of it. With innovations and
new ideas they try attaining
new heights in their business.
They are mostly new business
persons. These individuals
have new ideas in their minds
and attempts to bring them in
reality. Level of risks are
generally higher for them, as
they have no or minimal
experience in business.
Owner-manager These are individuals who
owns and runs a business,
started from their creativity
and innovations skills. And at
the same time they bear
responsibility of managing it,
like a manager.
These individuals bear dual
responsibility. By owning the
business they hold majority of
stakes. And by managing the
same these individuals aligns
business totally with their
vision and try to mitigate risks.
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P3 Impact of Micro and Small businesses on Economy
Micro enterprise is enterprise which operate in less number of employees and capital.
They mostly fulfil demands in regional markets. Whereas, small business has little big scale of
business operations and have significance in economic conditions of an area. Businesses, be it
micro or small, produce and offer products as per demands of consumers, this is important for
them as a business as well as it is important for economy of country. Small and micro enterprises
operate in small scale operation fulfilling regional or local demands, thus their number of units
can be multiple. More business units mean more employment opportunities. Other way, small
businesses therefore expands tax base in economy for the Government, by offering employment
opportunities and also through establishment of many business units. Through increased number
of employment opportunities income level in economy also increases that further triggers more
demand in economy, it also raises people's standard of living when they start consuming and
using more products. Additional dynamics over business competition in local and national
economy and markets are more advantages of small and micro businesses in a country's economy
(Impacts of small business on UK economy, 2021).
UK government is seen actively supporting establishment of Small and Micro enterprises
due to their multiple benefits like increasing employment, expanding tax base, triggering
innovations, improving competitive spirit in market and many more in the line. By supporting
micro and small enterprises, UK government is not only fulfilling economic goals of country but
also helping people in getting their personal goals.
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Source: Contribution of small businesses in UK economy, 2021
From graph, it is evident that small and micro business enterprises have very significant
contribution in UK's economy, which stands no less than 99.3%, established to fulfil demands of
people in country's regional and local markets. The diagram put forth that 47.8% of these
business units are helpful in generating employment, which are able to secure 36.8% of turnover
helpful in increasing business performances and bringing them good profits. Small businesses
are very needful at this time in UK to fulfil rising employment demands which are pushed more
at times of Brexit and COVID-19 pandemic.
P4 Importance of small businesses and start-ups in growth of social economy
Small businesses and start-ups besides levying good impact over economic prosperity in
a country, also make some contributions in social manner. They, directly or indirectly, seen in
bringing many changes and developments in society through creativity and new innovations as
well as business operations. For getting better insights about contribution of entrepreneurs, it is
important to understand what creativity and innovation means for an entrepreneur.
Creativity- Creativity for an Entrepreneur is the ability to develop new ideas and concepts. It is
the ability of looking at problems in different manners from other and try finding its ultimate and
long term solution. For example, when problem of inadequacy of public transport was gearing
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problem in peoples' life, and solution was being found out from increasing public vehicles itself.
Uber created idea of providing at door cab services to people.
Innovation- Innovation is an entrepreneur is ability to apply creative solutions to problems. The
idea of solution developed in creative mind to find solution of problem is made realistic through
creative and new manner of solutions, proving beneficial for all. Like, for providing at door
services of cab, Uber developed an online application. Through this customers can order cab
over one click and choose vehicle mode of their convenience. Also, those who wish to run their
vehicles can do so creating a simple account and provide details of vehicles over same
application. Hence solution for all was found out on a single platform.
Important contributions of Entrepreneurs are discussed in report:
Rise in standard of living- Small businesses provides lots of opportunities through employment
and income, especially in semi-urban region and rural region. Small businesses offer
employment to local populations and also uses services of these areas helpful in business
activities (Gielnik, Bledow and Stark, 2020). This way small businesses helps raising income
level and standard of living in two ways, one by providing direct employment and second by
making procurements from local markets. Also, these businesses help raising standard of living
of people in semi-urban areas by offering variety of products developed by them through their
innovations.
Brings new innovations in market- Entrepreneurs of Small businesses and start-ups are full of
new ideas in their minds and new innovations which they are willing to turn into reality so their
efforts could bring a new change in society and prevailing social order by providing people more
efficient and quicker ways of fulfilling their own needs (Zakieva and et.al., 2019). For example,
Uber identified requirements of people to avoid delays and discomfort caused to them by public
transport facilities, therefore this business came up with the idea of online cabs and taxi bookings
which brings customers taxi direct on their location. Customer make booking by following
simple process on online application. This not only saved time and money of people but also
reduced overcrowding in public transport.
P5 Traits of Successful Entrepreneurs
Success of any business enterprise depends on the way its business operations are carried
out and decisions made thereon. Person who has this responsibility is called Entrepreneur. These
entrepreneurs are people in possession of good skill-sets of innovation as well as business, ability
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to take risks and leadership qualities (Srinivasan and Venkatraman, 2018). Many successful
entrepreneurs thus have made strong examples in society by rising their business from nothing to
small to become big business tycoons, by efficiently using their skills and talents. This report has
attempted to discuss these traits and qualities that are possessed by successful entrepreneurs to
have good insights about them. For this purpose, instance of a young and successful entrepreneur
Mark Pearson is taken in report.
Mark Pearson is the founder of Marcko media, a fast growing global web based
marketing and advertisement company founded in 2006. Company is currently operating as UK's
biggest voucher and deal network. A discussion on what traits and qualities of Mark Pearson
have credited this success of Marcko media is made in report as follows.
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Illustration 2: OCEAN Theory of Personality