Entrepreneurship and Small Business Management: Ventures Impact

This report provides an overview of entrepreneurship and small business management, examining different types of entrepreneurial ventures, their similarities and differences, and their impact on the economy. It discusses local, scalable start-up, global, serial, female, and social entrepreneurship, highlighting the importance of small and micro-businesses in economic development, particularly in the UK post-Brexit. The report also explores the significance of small businesses in the growth of the social economy, noting their contribution to employment, poverty reduction, and improved living standards. Furthermore, it analyzes the characteristics and abilities of successful entrepreneurs and assesses how personal background and past experiences can influence entrepreneurship, concluding with the critical role of these ventures in fostering economic and social progress.

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

Contents
Introduction......................................................................................................................................4
TASK 1............................................................................................................................................4
P1 Different types of entrepreneurial ventures and topology......................................................4
P2 similarities and difference between entrepreneurial ventures.................................................5
TASK 2............................................................................................................................................6
P 3 impact of micro and small business on economy..................................................................6
P 4 Explain the significance that small businesses on the growth of social economy.................7
TASK 3............................................................................................................................................8
P5 Characteristics as well as abilities of successful entrepreneur...............................................8
P6 Assessing the way aspects of the entrepreneurial personality reflect entrepreneurial
motivation and mindset................................................................................................................9
TASK 4............................................................................................................................................9
P7 Assessing the way persons background as well as past experience can hinder foster
entrepreneurship...........................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

Introduction
Entrepreneurship is the skills of the person that support the person in establishing the new
business and operating it in smooth manner. Small business contributes well in the economy
development of the nation (Schaper, 2016). Present study will discuss different types of
entrepreneurial ventures and their topology. Furthermore, it will explain similarities and
difference in these different enterprises. Furthermore, report will describe contribution of small
business in the growth of economy. In addition, skills of entrepreneurs will be illustrated with the
examples. Study will examine impact of background, past experiences on entrepreneurships.
TASK 1
P1 Different types of entrepreneurial ventures and topology
Entrepreneurship is the ability of the person that makes the person able to establish a new
business and earn profit (Schaper. and et.al., 2014). There are several ventures that have unique
character tics. These are explained as below:
 Local business entrepreneurship: It is the type of business which conducts at small level.
Travel agents, plumbers, stores etc. are examples of such type of business units. These
are opened by single person or by the family members (Abreu and Grinevich, 2013).
Their main agenda is to earn profit for their survivals. They have limited funds thus; they
have to carry out the operations at limited areas. They invest own money in the business.
They conduct market research and analysis needs of consumers. On the bases of their
needs they offer them goods and services. It supports these entrepreneurships in
generating profit ((Stimpson and et.al., 2016)).Their topology is to earn more profit and
sustain in the market for longer duration.
 Scalable start up entrepreneurship: It is another type of business. They have innovative
ideas that support the business owner in attracting investors (Stimpson and et.al., 2016).
The target of the organization is to implement innovative ideas so that unique products

can be provided to the consumers. In order to accomplish their objectives they always try
to recruit skilled people those who have fresh talent. This supports in bringing innovation
in the business. Silicon Valley is the great example of such type of entrepreneurship
venture. Their topology is to serve innovative products to the market and offer amazing
services to consumers (Scott, 2016). They have such amazing ideas of new technologies
that support these firms in managing their operations well and gaining success in the
market ((Stimpson and et.al., 2016)).
 Global entrepreneurship: They are the large business units. Their main focus is on the
growth and expansion of business unity. They always concentrate of needs of consumers
and look at the competitor strategy. According to these elements, these firms make their
strategy. This helps them in gaining competitive advantage and sustaining in the market
for longer duration. They have adequate financial resources (Dorantes, Hallam and
Zanella, 2017). They get funds from banks or other investors. That funds support these
entities in conducting their business at large scale. They have advanced technologies
which supports the entrepreneurship ventures in minimizing mistakes and enhancing
efficiency level of operation.
 Serial entrepreneurship: They are such ventures which pay more operations on day to day
functioning of business. Such type of business is developed by other persons and these
entrepreneurs help these firms in their expansion. For example Sir Richard Branson is the
person who has supported in development of Virgin group (Schaper, 2016).
 Female entrepreneurship: They are the business units those which are run by female
person. They take initiative to start a new business and work for making it large
organization.
 Social entrepreneurship: they are another type of ventures those which work for social
welfare. Their agenda is not to earn profit, they just work for the welfare of population
(Stimpson and et.al., 2016).
Activities of Entrepreneur
Entrepreneur are those business person (small or big) who takes lots of responsibilities of
company and manage them efficiently. Here is the work they do.

They check for the products to be sent to the clients. They plan for new products to be created.
The better the quality of product, the more the sale will be. And this gives profit to business. As
they know the requirement of customer so can create another product and make their clients
happy and this can increase the growth. They connect with everyone. They build healthy
relations with everyone around to study human behaviour.
Entrepreneur time to time plans for new and exciting things that benefit the company. It
can be either developing new ideas for present business or new product or can be planning for
next business. They can provide new ideas on marketing. They have the ability to mentor
someone and that makes them different from others as employees under them learn from them.
Difference between Intrapreneur and Entrepreneur
Basis of difference Intrapreneur Entrepreneur
Level of dependency Intrapreneur (employee) is
dependent on entrepreneur.
Entrepreneur (owner) is
independent on his own actions
Fund raising No involvement in fund raising
activity
Funds are raised by the former
themselves required for carry out
operations
Risk-taking attitude They does bear full risk
associated with the business
operations
Entrepreneurs
are risk –bearer
Operations Intrapreneur operates from
within the company itself
The former operates from outside
the company
P2 similarities and difference between entrepreneurial ventures
Each venture is different from others and have own uniqueness. One of the major
differences between global and local entrepreneurial venture is their size and scope. Local
ventures are conducting their operations at limited areas (Schaper. and et.al., 2014). They have
limited resources thus, they are of small size. Whereas global ventures operate across the world.

They have huge funds which support in expanding their business and running it in smooth
manner. These global businesses are able to hire more than 50 employees in organization.
Whereas local ventures have to recruit limited people in the workplace. Global entrepreneurial
ventures implement tall structure. As they have many branches in many locations thus, they
cannot directly communicate with each employees thus, they adopt tall structure whereas local
business adopt flat structure so that their workers feel satisfied in the firm and retain in the
organization for longer duration (Abreu and Grinevich, 2013).
Female and male entrepreneur ventures are different from each others. In the female
ventures a woman take initiatives to run the business. Individual control over the firm and carry
out entire operation in their own supervision. Whereas Male venture are run by Male person.
Individual always take risk so that entity can grow well in short duration (Stimpson and et.al.,
2016).
Serial ventures monitor day to day operations of the business. They have limited funds.
They generally gets funds from close people such as families, friends etc. Whereas global
organizations have adequate sources of collecting funds such as bank loan, investors etc. They
earn high profit as compare to serial ventures. Agenda of serial entrepreneur is to provide
innovative products to the consumers where global business units concentrate on expansion of
business by providing satisfactory services to the end users (Dorantes, Hallam and Zanella,
2017).
Apart from many difference there are many similarities in these various ventures. On of
the main same thing between local and global entrepreneurial venture is that they both try to
serve their consumers well. They know that consumers are the key stakeholders of the business.
Overall success of business unit highly depends upon these people. Thus, they always conduct
market research in order to identify needs of end users (Schaper. and et.al., 2014). According to
their needs they offer them goods and services so that consumers become loyal towards the
brand. Both try to retain its skilled labor in the workplace for longer duration. They always try
that their talented people share their innovative ideas so that entity can make positive changes in
the firm which can support in the growth of the entity. Serial and female both ventures
concentrate on implementing new things in the business that can support in the growth of
business unit (Stimpson and et.al., 2016). Social entrepreneurs and serial ventures have

similarities in developing the products. They both try to satisfy their consumers by offering them
such products that can fulfill their requirements (Stimpson and et.al., 2016).
TASK 2
P 3 impact of micro and small business on economy
Micro and small businesses are such firm that operates their business at limited areas.
They have limited number of employees and have limited funds to conduct their operations.
These firms always work for the development of economy condition (Stimpson and et.al., 2016).
After Brixit many big organizations have faced huge complication. Britain was the country
which was highly depended upon the export and import business. But after Brixit trade
relationship with the nations have been finished. This has created issue for the large
organizations to carry out their business (Stimpson and et.al., 20166). They have terminated
most of these employees at that time which has created issue for the nation because at that time
value of currency got down to great extent. At that time small business have contributed well in
developing economy condition of the country. In the year 2014 these small and medium size
firms have generated 5.2 million revenues. That has helped in improving GDP rate. Furthermore,
when big firms were failed to conduct their operations in smooth manner that time small firms
have given jobs to many people and has contributed in increasing employment opportunities for
them (Abreu and Grinevich, 2013).
Number of SMEs start-ups in
UK
Approx. 6,60,000
Number of employing business 1.3 million
Number of employments
provided
1.61 million
Annual turnover of SMEs 1.9 trillion
The above depicted table clearly shows that contribution of small business enterprises is
highly significant in offering employment opportunities. Hence, referring the level of turnover
and employment it can be depicted that contribution of small business start-ups is highly
significant in the economic growth and development.

P 4 Explain the significance that small businesses on the growth of social economy.
Statically records show that UK is the country where many small size business are
running smoothly. They are providing quality products at affordable rate to the consumers. It
approximately contribute 5% in the economy development of nation (Stimpson and et.al., 2016).
From the records of 2015 it is shown that these micro firms have helped in reducing 3% poverty
rate. These entities have given job opportunities to the young people by this way per capita
income of the nation has been improved. UK is the region where every year small business
contributes in improving standard of living of approx 65% population (Abreu and Grinevich,
2013). There are many people those who are educated but are not having experience. Thus, big
organizations do not hire these people. In such condition these micro firms give them
opportunity to work with them and gain experience. By this way they get chance to work with
the large business units. This opens many career opportunity options for them that assist in
reducing poverty for the nation. In this manner small and micro firms contribute in developing
economy condition of the nation.
United Kingdom is the tourism destination where every year many travelers come and
spend mon ey (Schaper, 2016). With the help of this activity local firms get chance to generate
more profit. By this way these entities pay more tax to the government. This money is utilized by
them for the development of country. 4% employment is generated by small and micro
organizations every year in the nation. That has supported in providing income sources to the
public and fulfilling their basic needs. When Uk was suffering from economic crises at that time
these small corporation have contributed well in balancing the condition of the nation and helped
in increasing value of currency (Stimpson aet.al., 2016).
TASK 3
P5 Characteristics as well as abilities of successful entrepreneur
A person who has desire to become successful entrepreneur needs to develop some
special culpabilities as well as core competencies. Successful entrepreneur also have depth
knowledge about business. These people have some special qualities such as high risk bearing
capacity, high influencing power which allows them to differentiate themselves from other
people within an enterprise. Successful entrepreneur also have leadership qualities which are

generally used by them for guiding as well as motivating people to work for benefit of company.
These people also have decision making capacity which helps them in making suitable plans ,
strategies or judgement for business. In addition to this, an entrepreneur also haver certain other
qualities as well as skills such as :
Freedom directed-It is the unique quality of successful entrepreneur is that they have
experience which helps them in managing the business in systematic as well as effective manner.
Knowledge about managing business-
Visionary – These people have high visionary power which allows them and they are realistic in
nature. Successful entrepreneur establishes Smart objectives which are to be achieved by an
employee within the specific time duration. They have high analytical skills which an individual
used for identifying the methods or innovative ways to drive firm towards accomplishment of
objectives.
Persuasive- Successful entrepreneur has the capability as well as the knowledge about the
techniques which can be used for dealing as well as coping up with difficult as well as complex
situation. An individual has high potential to transform risk into opportunities.
It is still topic for the debate whether entrepreneur born or made. Many of the authors
have founded that an entrepreneur has some qualities which are good gifted while few abilities or
core competencies are gained by them through working as life experiences.
Comparison between traits, abilities as well as competencies of manager and an
entrepreneur.
There is very big difference between traits, abilities and core competencies of manager as
well as an entrepreneur. Business owner is recognized as a person who establish a company and
have the responsibility to run the business in ethical as well as systematic manner. On the other
hand, manager is a person who works full or part-time for an enterprise.
Manager are the person who have responsibility to manage business operations, so it is
essential for them to have specific knowledge about the field. Whereas, an entrepreneur are
responsible for controlling as well as managing all the aspects of business. So, business owners

are required to develop depth knowledge about the business and they also need to have much
working experience.
An entrepreneur has high risk bearing capacity as compared to managers. In addition to
this business owner also have high decision-making power. On the other hand, managers in an
organization has high influencing power which they can use for motivating other employees to
improve their performance and make their essential contribution in driving firm towards
accomplishment of objectives.
Managers are less conscious about business as compared to entrepreneur. Managers are
only concerned about completing their tasks as well as fulfilling their responsibility towards
company (Bridge, and O'Neill, 2012.)
P6 Assessing the way aspects of the entrepreneurial personality reflect entrepreneurial
motivation and mindset
Entrepreneurial mindset is defined as specific state of mind which drives human action
towards entrepreneurial activities. It is the unique quality of an individual hose who have
entrepreneur mindset that they have high potential to explore as well as capture various business
opportunities. Motivated, highly talented and successful entrepreneur have good innovation skills
and these people believes in creating new values. An entrepreneur is considered to be as a
dynamic actor and these people have high level of desire to change. Successful business owner
has confidence and such people believe that they can make difference. These people also have
passion for making things happen. Entrepreneurial mindset is also referred to as combination of
abilities, core competencies bas well as behavior that is adopted by an individual personally or
professionally. It also includes flexibility of an individual to adapt change, risk taking capacity,
creativity, problem solving capabilities, self-motivation etc. As per the trait approach
entrepreneur possess set of abilities related to internal control, planning, goal setting,
independence and decision making. Trait approach states that an entrepreneur is required to be
strongly motivated.as self-motivation will help an individual in overcoming several obstacles or
hurdles which might occurred in establishing new business venture. An entrepreneur is required

to have control on their activities. Asthis skills will assist a person in generating the effective
outcome (Brenkert, 2017)
TASK 4
P7 Assessing the way persons background as well as past experience can hinder foster
entrepreneurship
Business owner work under the constraints of their environment There are several factors
which has direct as well as significant influence on the choice of establishing a company. Some
of the constituents or variables includes culture, economic factors, family background, culture,
personality etc.
Personal background-This variable includes the previous employment experience, family
background, gender, psychological traits have direct as well as significant effect on the
choice of business owner related to establishing new business venture. Business owner
gain several opportunities and gain knowledge or develop innovative idea from the
personal background. Personal background also includes level of education, social values,
lifestyle etc.
National culture-This constituents also have major influence on the decision of an
entrepreneur related to starting up new company. Cultural background has direct as well as
significant influence on reason for opening new company. This type of influence can arise
from traditions or trends prevailing in the society. National culture has direct as well as
major influence on business owner intention or objective of establishing new business
venture.
Economic circumstances – Economic environment exercises the most direct and
immediate influence on entrepreneurship. This factor includes the availability of financial
resources which are required for establishing as well as running business in systematic
manner. Availability of funds encourages an enterprise to establish new business venture.
It is considered to be as an important part of decision. An entrepreneur making decision or
judgment related to starting new business venture by considering the fact the return that

will be gained by an entrepreneur by making investment on establishing new business. An
individual plans to establish new business venture due to two reason such as need of
money and lack of job opportunities. These factors have direct as well as major effect on
the personal well as professional growth of an entrepreneur.
Character and traits- there are several entrepreneurship and business skills, experience
that will have a positive influence on innovative entrepreneurship This factor has
significant influence on decision related to starting up of new business venture. It includes
the risk bearing capacity of anentrepreneur, knowledge about particular field,interest,skills,
core competencies etc. Innovative abilities are required by business owner for managing
the changes and dealing with several obstacles which might arise in establishing new
business or company. In addition to this there are several other attributes need to be
developed by business owner which includes visionary leadership as well as change
oriented. The character as well as traits have positive influence on the entrepreneur
decision relating to opening a new business venture. It allows an entrepreneur to explore as
well as capture various business opportunities. Traits and skills allows business owner to
develop potential or strength for managing the risks (Blackburn, Hart and Wainwright,
2013)
According to Big five theory, a successful entrepreneur have five personality traits these are :
Neuroticism: As per this concept, business owner should avoid taking emotional decisions. An
individual those who are highly emotional in nature are considered to be unstable. However. A
person with low on this trait considered to be as emotionally stable. Person with Low emotional
level is calm, even tempered and have high level of confidence which enables them to make
suitable business decision.
Extraversion: an entrepreneur with this type of personality trait are generally more concerned
about their roles as well as responsibilities within an organization. These people are generally
much talkative and assortative in nature.
Openness :An entrepreneur with this type of trait are generally have high desire to create new
things. These people generally have creative thinking which helps them in finding solution to