Entrepreneurship and Small Business Management: Ventures and Impact

This report provides an overview of entrepreneurship and small business management, examining different types of entrepreneurial ventures, their similarities, and differences, and their relationship to the typology of entrepreneurship. It interprets statistical data to demonstrate the impact of micro and small business enterprises on the economy, explaining the significance of small businesses and start-ups to the progress of the social economy. The report also identifies the characteristics, skills, and traits of successful entrepreneurs, differentiating them from other business managers and assessing aspects of the entrepreneurial personality that reflect entrepreneurial motivation and mindset. Finally, it examines how background and experience hinder or foster entrepreneurship, providing examples and analyzing the linkage between entrepreneurial characteristics and the influence of personal background.

Entrepreneurship
and Small
Business
management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1 Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship......................................................................................................1
P2 Explore the similarities and differences between entrepreneurial ventures...........................3
M1 Investigation into diverse range of entrepreneurial ventures to showcase understanding of
entrepreneurship in both the public and corporate sector ..........................................................4
D1 Critical examination of scope, growth and development of entrepreneurial ventures .........5
TASK 2............................................................................................................................................6
P3 Interpretation of relevant statistical data to demonstrate impact of micro and small business
enterprise on economy ...............................................................................................................6
P4 Explanation of significance of small business and business start-ups to the progress of
social economy............................................................................................................................7
M2 Evaluation of differences made by small, medium and large businesses to the economy
through application of relevant statistics ....................................................................................9
D2 Critical evaluation of impact of small businesses on different levels of the economy ........9
TASK 3..........................................................................................................................................10
P5 Determination of characteristics, skills and traits of successful entrepreneur which
differentiate them from other business managers.....................................................................10
P6 Assessment of aspects of entrepreneurial personality which reflect entrepreneurial
motivation and mindset.............................................................................................................11
M3 Exploration of different types of argument relating to entrepreneurial characteristics......13
D3 Analysis of characteristics, traits, skills and motivational drivers of successful
entrepreneurs.............................................................................................................................13
TASK 4..........................................................................................................................................13
P7 Examination of ways in which background and experience hinders or fosters
entrepreneurship using examples..............................................................................................13
Richard Blain............................................................................................................................14

M4 analysis of linkage between entrepreneurial characteristics and influence of personal
background................................................................................................................................14
D4 Critical analysis of background and experience influencing entrepreneurs........................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Entrepreneurship is defined as the ability as well as readiness to create organise and run business
enterprise along with various uncertainties in order to attain the objective of higher profitability
(Mugler, 2017). Entrepreneur is the individual who has capabilities and desire to establish,
administer new business through bearing risk and enjoy most of rewards. Whereas small
businesses are defined as the privately owned organisation under partnership, sole-proprietorship
with fewer employees. Entrepreneurs have various skills and abilities that enable them to run
business operations efficiently and lead it towards growth and development through attaining
opportunities. Basically, Entrepreneurship is about identifying opportunities as well as
assembling in order to convert possibilities into reality. In this report, different types of
entrepreneurial venture and their interrelation with entrepreneurship typologies are mentioned.
Description regarding similarities and differences of entrepreneurial venture and impacts micro
and small businesses on economy are covered. Furthermore, importance of small and start-up
business in the growth of social economy are explained. Entrepreneur posses various skills, traits
and characteristics that differentiate them from business managers and aspects that states that
entrepreneurial personality reflects entrepreneurial motivation and mindset are explained. Apart
from that how background and experiences are hinder and foster for entrepreneurship are
mentioned in this project report.
MAIN BODY
P1 Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship
Entrepreneurship is defined as the process of establishing business through an innovating ideas
and concept (Melwani, 2018). Entrepreneurial ventures uses innovation as well as opportunism
to produce new product in market that ensure growth and development of business in
competitive environment. There are various types of entrepreneurial ventures that have separate
characteristic that are mentioned below:
Micro ventures: Micro ventures are defined as the entrepreneurs who are involved in
fulfilling basic needs and demands of families through providing required products and services.
In this business venture, resources are limited and have no premise to run business operation
regularly. Micro business are engaged in providing basic services that are provided without using
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technological and innovation aspects. Main objectives of these venture is to survive in market
and serving quality products to large number of customers. Duncan Bannatyne is the example of
micro entrepreneurship.
Lifestyle ventures: Lifestyle venture is defined as the entrepreneurship which has stable
income and use of business model that is aligned with management (Farinha, Ferreira and
Nunes,2018). These business are established and run by its founders with the objectives of
sustaining in market with gaining particular level of income and engage in providing particular
lifestyle to its customers. In order to deal with competition level in market, organisation reinvest
its funds that enable business to sustain for longer period of time. The capacity of organisation is
limited with constant number of employees. Chris Guillebeau is the example of lifestyle venture.
Medium size ventures: Medium size venture are defined as the entrepreneurship that
have stable growth in market and adopt the business model that includes creating new products
and launching them in new market place for expansion. These businesses are involved in
developing the products according to regional requirements of customers. Earth-I is the example
of medium-sized venture. his enterprise was founded in the year 2015 and gained success in the
aerospace sector (Earth-i, 2021).
Gazelle ventures: Gazelle venture is defined as the entrepreneurship that use
technologies and innovation in order to attain exponential growth and development in target
market. These ventures gather initial capital through issuing equity shares. Engagement of
customers is important for these types of entrepreneurship to sustain for longer period of time.
Uber is the example of Gazelle venture.
There are various types of entrepreneurial typologies that are related to entrepreneurial
ventures. Typology of entrepreneurship is defined as the process of classifying as well as
grouping entrepreneurs into different activities. These typologies are mentioned below:
Craftsman entrepreneurs: Craftsman entrepreneurs are defined as person who start
business with using their learnt and acquired skills (Berglund, Hytti,and Verduijn, 2020). They
have various characteristics such as they are blue collar origin or they are involve in informal
sector of employment. They are come from educational, training background and have
technological experience that enable then to concentrate on current business activities. Micro
ventures are classified into this typology of entrepreneurship because of slow growth of such
enterprise and they are usually managed by the owner with their capital.
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Opportunistic entrepreneur: Opportunism entrepreneurs are defined as the entrepreneur
who are involve in scanning business environment in order to search viable opportunities that are
exist in business environment (Miao and et. al., 2019). These entrepreneurs are creative, hard-
working, variety of work experience and having knowledge of various educational courses.
Basically, these entrepreneurs are from middle class origin. Medium-sized ventures are included
in this typology of entrepreneurship seek to exploit opportunities provided in the market to
ensure continuous growth and long-term survival of the enterprise. The ventures are managed by
hard-working individuals looking to make exponential growth.
Growth-oriented entrepreneur: Growth-oriented entrepreneurs includes individuals who
develops break-out and involve in high growth organisations that is able to attain high revenue
and create high employment opportunities. Main objective of these entrepreneur is to attain
business goals and objectives on time with great efficiency that lead business towards growth
and development.
Administrative entrepreneur: Administrative entrepreneurs are consider as the person
which is involve in administrative techniques and functions (Thies and et. al., 2019). These
entrepreneurs provides new and innovative options to prevailing future situations in effective and
efficient manner that helps to gain competitive advantages. It enables business to attain
objectives on time with efficiency. Gazelle ventures are classified in administrative entrepreneur
typology as they seek to utilize advanced technology to provide solutions for current problems
faced by consumers and gain high growth.
P2 Explore the similarities and differences between entrepreneurial ventures
There are various entrepreneurial venture are established by the entrepreneur that have
some similarities and differences as their size, number of employees and purpose. Primary
differences between entrepreneurial ventures is provided below:
Basis Micro ventures Medium size
ventures
Gazelle ventures Lifestyle
ventures
Purpose The purpose of
macro business is
to maximise
standard of living
The purpose of
medium sized
enterprises is to
ensure long-term
The purpose of
Gazelle
enterprises its to
attain rapid
The aim of life-
style ventures is
to sustain the
lifestyle of the
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and attain
scalable growth in
business.
survival of the
enterprise with
stable
profitability.
Earth-I is able to
maintain stable
profitability
because of
effective
technology used
at the firm.
growth in short
span of time and
secure industry
leadership
(Günzel-Jensen
and et. al., 2020).
owner and is
usually
constructed so
that the owner
gains an
unconventional
job.
Number of
employees
Employees limit
in Macro venture
is ten or less the
ten.
Employees limit
in medium-sized
venture is 250 to
500 employees.
Employee limit in
Gazelle venture is
more than
medium sized
ventures because
they focus on
attaining rapid
growth.
The lifestyle
ventures usually
higher low
number of
employees so that
the owner is able
to maintain
lifestyle of
choice.
Similarities between enterprises Attaining profitability: All types of entrepreneurial ventures focus on gaining
profitability weather it is for survival or for investing in continuous growth (Brown and
et. al., 2018).
 Facilitate economic growth: A similarity between entrepreneurial ventures is that they
contribute to economic growth by generating employment and turnover.
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M1 Investigation into diverse range of entrepreneurial ventures to showcase understanding of
entrepreneurship in both the public and corporate sector
Micro and small business enterprises are part of the private sector and involve wide range
of activities which do not require sophisticated technology or high level skills. Lifestyle
entrepreneurship are understater by individuals who aim to improve their personal lifestyle
through entrepreneurship and are also present in the private sector. The public sector enterprises
in UK are not describes as micro or lifestyle ventures because the aim of public institutions s
welfare of the people of UK and contributing to economic growth which is not possible by
following the purpose of size of small, micro, medium or lifestyle ventures. For example The
British Museum is a public sector institution in UK which hires 1000 employees and focuses on
collecting global cultures and benefit humanity through preserving artefacts related to global
cultures. This depicts that public institutions cannot be classified under lifestyle, medium, micro
or small enterprise. In addition to this, Gazelle ventures are also part of the private sector of the
economy (Pardo and Alfonso, 2017). This is because these firms aim to double the revenue of
the company under the time period of four years. On the other hand the objectives of firms in
public sector such as NHS, Armed forces and Office for National statistics is to increase self-
reliance of nation and ensure safety security and economic progress of the country.
D1 Critical examination of scope, growth and development of entrepreneurial ventures
The scope of micro and small business enterprises is vast covering wide range of
activities which requires unsophisticated technology (Al hawamdeh Dr, 2021). The advantage
of this scope is that it provides entrepreneurs ability to set up their enterprise by using any of the
wide range of activities which require low investment. The disadvantage of such huge scope is
that micro and small business firms gain low profitability. The scope of medium-sized
enterprises is also large but competitively smaller than micro and small entropies. This is
because wide range of skilled professions and low scaled business activities are included under
the scope of micro businesses. The advantage gained by medium sized enterprises because of
large scope is that enterprises with high growth potential can be constructed easily by emerging
enterprises. This is because they will be able to construct medium sized enterprises easily. The
scope of gazelle ventures is huge, because this type of ventures are able to gain success in short
amount of time and support development of economy. The advantage of such high scope of
gazelle ventures is that such ventures are able to create new jobs in the economy. The
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disadvantage of high scope of Gazelle ventures is that ity also introduces high risk of financial
failure of the enterprise.
TASK 2
P3 Interpretation of relevant statistical data to demonstrate impact of micro and small business
enterprise on economy
A business is classified on the basis of ownership and the size. The size of the business
decides the level of operations associated with it. Further three types of business are discussed
below:
 Micro Business- This refers to a small business that employs and operates with less than
10 people. These are started with small and a minimal amount of capital. These accounts
to around 96% of the total business in UK. One example of micro business operating in
UK is Proviz, they deal in range of cycling accessories.
 Small business- This is defined as privately owned company which is doing their
operations with a range of 10- 49 employees. 4% of total businesses operating in UK are
small business. Example of small business is Davison Canners, their business is of
catering for dessert, bakery and dairy.
 Medium-sized business- Business operating with employees in range of 50-249
employees are considered in the medium-sized business category. This accounts to just
1% of the total businesses in UK. Example of medium sized business is Captify, they
specialise in media decision and search intelligence.
(Source: Small Business Statistics 2020)
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Illustration 1:
Small Business Statistics 2020

Contribution of micro and small organisations to UK economy-
From the above data it can be interpreted that 99% of all the business operating in UK
falls under the category of micro and small business. Which proves that most of the financial
benefits for the government is gained from these industries. Further there are several factors
which helps in contribution in the economy of UK, few of them are discussed below(Small
Business Statistics 2020, 2021) :
Employment generation- These industries help in eradication of problems regarding the
employment of youth as due to several start ups in this industry there are opening for employees.
Data suggests that with expansion of business in these industries, the unemployment rate of UK
has declined. This positively impacts the economy in a long run as the income and employment
of youth directly contributes to the Gross domestic product of UK.
Revenue from Taxation- As the micro and small industries accounts to around 99% of
the total businesses. This means that most of the tax revenue is generated from these sectors. Tax
is very helpful in building the economy of the country, and these businesses contributes a lot.
This positively impacts the economy and smooths the functioning of the government.
Driving growth and innovation- Micro and small businesses are open to new
innovations, they start exploring the new things in the environment. This helps in the growth of
the economy as these businesses later will represent UK on a global level. A new innovation in
the field of production or technology will help the businesses in the aspects of growth. These
aspects directly puts a positive impact on the economy of UK.
P4 Explanation of significance of small business and business start-ups to the progress of social
economy
Social economy focuses on the relationship between social processes and economics.
Social economy is that sector of the market which operates between the public and the private
sphere. The primary characteristics of social economy is the primacy of the individual and social
objectives over capital. In addition to this some other attributes of social economy are sustainable
growth, social and economic balance, democratic governance and ownership. The three elements
of social economy in UK are co-operatives, Mutuals and Voluntary organizations and
foundations.
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(Source: The Social Economy in the UK)
From the above graph it is determined that marketing share of Wool Agricultural co-
operative is the highest as a percent of total output Despite privatisation the total number of co-
operatives in the agricultural sector survived, The amount equalled to 13% of the agricultural
market. This depicts the important role of agricultural co-operatives to the UK economy. In
addition to this, other kinds of co-operatives also contribute top economic development in UK.
The turnover of worker co-operatives in the year the year 2006 equalled to £115. This also
showcases the high influence and important role of worker co-operatives t the UK economy. The
next element of social economy in UK is mutual organizations. In the year 2010 the number of
mutual insurers in the UK equalled to 57 with £80 billion assets and 20 million consumers (The
Social Economy in the UK, 2010). Mutual benefit societies play an important role in developing
the economy as large number of policymakers also gain direct benefit from the growth of the
company. This ensures that economic progress positively affects individuals from every
economic level. In addition to this strong presence of mutual organizations in UK is
advantageous for economy of the country because the profits gained by the company helps
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Illustration 2: The Social Economy in the UK

sustain growth of the organization and benefit the mutuals of the company. The final element of
social economy in UK are the Voluntary organizations. The share of precopulatory sector in
national employment to the national economy is 12.3%. The UK voluntary sector is formed with
the combination of corporatist model in the northern Europe and commercial model of USA. The
vocabulary organizations are highly beneficial to the UK economy as they not only lead to
economic benefits of the company but also lead to social progress of the country. This helps
ensure that every social group in the country experiences social progress along with the rest of
the country. It is important for government of UK to ensure sustenance of all three elements of
social economy of UK so that the country can make economic progress in a responsible manner.
M2 Evaluation of differences made by small, medium and large businesses to the economy
through application of relevant statistics
Small, medium and large business firms contribute to the progress of UK economy. This
is depicted by the statistics that at the start if the year 2021, 5.5 million small business firms
accounted for the 99% of total business population in UK which is 5.6 million (UK Small
Business Statistics, 2021). This showcases the massive contribution of small business firms to
the UK economy. In addition to this another statistical data which sheds light on the benefits
provided by small and medium sized business firms to the UK economy is that employment
generated by small firms in the year 2020 accounted to 12.9 million while the turnover generated
by small firms for the particular year was 1.6 trillion GBP.
D2 Critical evaluation of impact of small businesses on different levels of the economy
Small firms are beneficial to the UK economy by generating employment at large scale
and contributing large amount of turnover to UK firms. In addition to this small business firms in
UK also make positive contribution to regional economy by help build circular economy at
regional scale. Small business firms are crucial to global economic growth as the act as employer
for large number of unskilled workforce and help generate large amount of turnover. The main
challenges faced by small business firms in the current day and age are intense competition from
international conglomerates and global economic downturn because of the pandemic
(Salamzadeh and Dana, 2020).
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