Entrepreneurship and Small Business Management: Analysis Essay

This essay provides a comprehensive overview of entrepreneurship and small business management, beginning with a determination of the typology of entrepreneurship, including small-business, scalable start-up, large company, social, and female entrepreneurship. It examines the differences and similarities between these ventures, focusing on social versus large-scale businesses and female versus male entrepreneurship. The essay further explores the impact of small and micro businesses on the economy, highlighting their roles in employment and foreign direct investment. It emphasizes the importance of small businesses and start-ups to the economy, particularly in terms of employment, turnover, and exports. Finally, the essay identifies the key determinants of a successful entrepreneur, such as motivation, risk-taking, innovation, and adaptability, and discusses how a person's background and past experiences can either hinder or foster entrepreneurship. Desklib offers a wealth of resources, including past papers and solved assignments, to support students in their studies.

Entrepreneurship and
Small Business Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Determine the typology of entrepreneurship.........................................................................3
P2 Examine the differences and similarities between entrepreneurial ventures.........................4
TASK 2 ...........................................................................................................................................6
P3 Examine how small and micro impact the economy.............................................................6
P4 importance of small business and start-ups to economy........................................................7
TASK 2............................................................................................................................................8
P5 Determinants of successful entrepreneur...............................................................................8
P6: Aspects of the entrepreneurial personality............................................................................9
P7: Influence of person’s background and past experiences that hinder or..............................11
foster entrepreneurship. ...........................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship is refereed to an activity which involves all the factors taken to
establish a new business. For example, designing, launching, risks, etc. It is the capacity or
willingness to develop, organize and manage business along with risks in order to make a profit.
The person who starts a new venture is known as entrepreneur. It is necessary to have great will
to start a new thing as it involves various risks and no guarantee of it success. There are many
hurdles and issues which comes along with new business, successful entrepreneur is that who
overcome all the factors with confidence. This assignment will focus on different types of
entrepreneurial ventures and their relation with entrepreneurship. Different roles, objectives and
characteristics of different ventures and different size are mentioned in this assignment.
Interpretation of small and micro business and its impact on economy. Different characteristics
for becoming a successful entrepreneur and how entrepreneurial personality reflects
entrepreneurial motivation are discussed in this assignment, in addition to this, how personality
is shaped by different factors and hoe person's background and past experience can hinder and
foster entrepreneurship is also mentioned.
TASK 1
P1 Determine the typology of entrepreneurship
Entrepreneurship can be defined as a process of designing, developing and managing
ability of a person or a group of persons to initiate a new business venture for earning higher
profits. These people who willingly creates these start ups by identifying opportunities and
evaluating them for creating goods and services that caters needs of customers are known as
Entrepreneurs. Thus, by starting new business entrepreneurship helps in creating new and
innovative goods and services which results in providing employee opportunities for people
leading to more and more economic growth and development for a nation (Drucker, 2014).
Mentioned below are various typology of entrepreneurs through which an entrepreneur can earn
profits :
 Small-Business Entrepreneurship: This type of business is owned and mange by a
single-proprietor. Most of starts up falls into this category as they initially required less
financial, human and capital resources and mainly focuses on producing goods and
services as per customers requirements so as to earn minimal profits to ensure their

survival. In UK small entities share 94% of total businesses and employ 50% of all
government workers.
 Scalable Start-up Entrepreneurship: A scalable start-up are those enterprises who
looks for repeatable and scalable business that converts entire firm into profitable, high-
growth enterprise. It is done by earning new market shares and entering into new markets
having good growth opportunities by taking risks. These firms mainly focus on rapid
change and development of business.
 Large Company Entrepreneurship: Large business firms are those who grow by
providing new and innovative products and services as per customers. They involves
huge capital investment, greater risks, abundant human, financial and other resources.
The main motive of these firms is to earn higher profits and to gain compensative edge
over its rivals to capture market share (Pott and Pott, 2012).
 Social Entrepreneurship: These enterprises focuses on manufacturing those product &
services that helps in solving society problem such as poverty, unemployment etc. or
fulfil its need. With the aim of improving economic condition of country and to serve
society they make up a perfect amalgamation of profitable, non-profitable or hybrid
businesses.
 Female Entrepreneurship: This are the enterprise that are stated and managed by
female entrepreneurs who are having minimum financial interest of 51% of share capital
and generating atleast 51% employment purely by women.
P2 Examine the differences and similarities between entrepreneurial ventures
From the above mentioned different types of entrepreneurs, it is evident that they are
quite different from each other in terms of their size, growth, profits, aims etc. Every venture has
its own characteristic which differs from other firms but at the same time they too have certain
similarities between them (Welter, 2011). Mentioned below are some similarities and
differences between social & large scale business, female & male entrepreneur:
 Social Enterprise  Large Scale Enterprise
 Differences
 Social enterprises are created with the
 Differences
 The main motive of these organization

main aim of providing social benefits or
solving society problems.
 The operations of these firms are not
quitted by owners even at times when
company is not earning any
profits(Bridge and O'Neill, 2012).
 Similarities
 Social enterprises considers its people
as their greatest assets and generate
products and services that can cater
their needs and aspirations.
 Social enterprises analyses market
trends and realities to find out issues,
problems and requirements of public to
make goods and services based on it.
is to earn maximum profits by
generating goofs and services as per
customers needs and wants.
 In case large scale business stops
earning sufficient profit the owner shuts
down its operations and resumes it back
only in case when a new idea is
generated which is feasible as per
market environment.
 Similarities
Similarly large scale business also works
towards manufacturing products and services
according to needs and demands of its
consumers to earn higher profits.
For finding out the latest taste, preferences of
its customers and other prevailing trends these
industries too go for a complete study of
market and its environment to make
customized products as per clients
requirements.
Female entrepreneur business  Male entrepreneur business
 Similarities
 The main focus of these firms lies in
getting hold on large market share and
attaining growth in initial phase.
 They make modification in its product
and services as per changing needs and
wants of a consumers(Burns, 2010).
 The main motive of these firms is to
attract large no of consumers and to get
 Similarities
 Male enterprise also have works
towards attaining higher profits &
growth.
 To attain higher profits and success
these firms too analyse the frequent
changes occurring in market and
manufactures goods and services as per
it

an edge over business competitors.
 Differences
 They lack of confidence and
capabilities as compared to male
enterprise.
 Decision taken by these firms are slow
as they critically analyse each and every
factor related to it (Brenkert, 2018)
 They posses great communication skills
as compressed to male enterprise.
 They too share same aim as female
owned enterprise as they too
emphasises on capturing large market
share to get lead over rivals.
 Differences
 They are quite stable having high level
of motivation and efficiency in
conducting their business operations.
 Due to high proficiency level decision
making process is quite fast.
 Their communication skills are not as
effective as female owned firms
TASK 2
P3 Examine how small and micro impact the economy
There are different times of business which can be adopted by a entrepreneur for stating
up its new venture. The new venture could be a micro, small and medium depending upon the
availability of resources, capital and capabilities of an entrepreneur(Carland and Carland, 2015).
 Micro Business: Micro scale divisions are small in size operating with the main aim to
earn sufficient profits that can help it in managing livelihood of person. It consists of a
small business having less than 10 employee, with turnover not exceeding €2 million or
PhP 3 million and operations to be handles by a sole owner. They have a flexible
organizational and legal structure as it involves fewer people in their decision making.
 Small Business: These type of entities generally operates in local economies. These
organizations are large in comparison to micro enterprises and consists of employees
between 50-100 and turnover not less than 56 million dollars. Their main aim of these
firms is to generate sufficient profit so that they are able to manage their day to day
operation and working capital (Parker,, 2018). They are customer oriented firms who

make modification in their products and services as per customers requirements(Dennis,
2011).
 Medium: These enterprises operates their activities at much larger scale in terms of
investment and resources applied in it as compressed to small and micro firms. The no of
employees working in these firms is around 250-500 and revenue earned goes around 5 to
23 million dollars. Such type of enterprise often operate their business activities on large
level as compared to micro & small(Down, 2010). These firms carry out its operations in
order to get hold of large market share with maximum profit generation. All partners in
firm are having equal profit sharing ratio and liabilities are limited as per no of share
holds by each of them (Schaper and et al, 2014). Mentioned below are different areas of
economy affected by small & medium size enterprise:
 Employment:SME's serves as the main source of generating employment in rural areas
because of the fact that they provide job opportunities to people who are less qualified
having limited skills. According to the census report, SME's contributes up to 25% in
overall growth of the economy(Georgeand and Bock, 2011).
 Foreign Direct Investment (FDI): It is an investment made by enterprise or investor in
some other country or countries where the interest and opportunities for business lies.
The main purpose of FDI is generating higher revenues for home country and to
maximise share percentage of SME's for economic growth and development of a nation
(Zimmerer, Scarborough and Wilson, 2005). SME's are more adjustable to have FDI in
comparison to medium or large scale firms as they are having more flexible legal
structure as compared to both of these.
P4 importance of small business and start-ups to economy
The small businesses turned out be quite beneficial for the economy of UK. It is evident
from the fact that 99% of total business in UK are owned by small and medium level industries .
The importance of these businesses are for the economy is as follows: Employment: Small business plays a vital role in the economy by creating various
employee opportunities for the people having less knowledge and skill. From the last
recorded statistics it is analysed that T60% of the total employable workforce is been
engaged in small businesses and entrepreneurial ventures and more than 24.3 million

population depends upon small ventures operating in the country (Carlandb and et al,
2007)
 Turnover: Another important manner in which small scale business supports an economy
is by increasing its turnover rate i.e. cycle of rate at which companies sales is been carried
out. According to records the combined turnover of UK stands at 10 £ million i.e. 15% in
2017.
 Exports: Among all small business 63% of firms trade internationally selling their
products outside their home country. The revenues earned from these ventures helps in
providing benefits to people directly or indirectly. The exports of the UK were recorded
at 408.9 billion USD which has increased by 12% due to efforts of small businesses and
start-ups in the country(Gorgievski, Ascalonand and Stephan, 2011).
TASK 2
P5 Determinants of successful entrepreneur.
Entrepreneur is a person who starts or run a new business rather than working as an
employee in any company(Hall, Danekeand and Lenox, 2010). They are more interested in job
giving as compared to job seeking. They have following characteristics, which make them
successful entrepreneurs:
 They are motivator and passionate.
 Risk taker.
 Decision maker.
 Innovators.
 Hard working and dedicated towards their work.
 Adaptable to every situation.
 Flexible with every tasks.
 Have great knowledge about their market and product.
 Strong management capabilities.
 Have strong planning skills.
 Self- Confident and open minded.
 Self starter.
 Creative and innovative thinking.

 Strong work ethics.
Above are some key characters which are possessed by successful entrepreneurs and
these traits help them to run their business in desired manner. They handle every situation with
utmost perfection and make alternate strategies to handle risk and problems which can arise t the
time of start up of business(Leitch, Hill and Neergaard, 2010. There are many entrepreneurs
which have been running their start ups efficiently with the help of above traits and some name
of successful entrepreneurs are mentioned below:
David and Simon Reuben: They are British businessman and Philanthropists and are
ranked as the 60th wealthiest people in the world. They are brothers which were born in India in
Iraqi Jewish family, moved to London in 1950 with the spirit of entrepreneurship in their hearts.
They both work in different areas and invested their money in property as well as in raw
materials businesses. They were living in poverty but have a zeal to do something with their lives
and moved to London. They work hard in order to start up their businesses. With extraordinary
enthusiasm and entrepreneurial spirit, they are now the wealthiest brothers in the world. Surely,
they have all the characteristics which had made them successful in their business. They were
risk taker, decision maker, have effective management skills, knowledge about market and
products, hard working, etc. Some characteristics are present form birth but some are developed
over time. These brothers have entrepreneurial spirit in their hearts and wants to do something
great in their lives. Some traits were already present in them but some characters they build over
time like they work hard, gained market knowledge, made effective decision and took various
risk in order to make their business a successful venture(Ligthelm, 2010)).
Another successful entrepreneur is Sir Richard Branson, who is the CEO of famous
Virgin group. It is basically a conglomerate of company which include Virgin Mobile, Airways
and Megastores. Richard is known for his exuberant and eccentric personalty and have all the
traits of becoming a successful entrepreneur such as he used to take calculative risks, embrace
any failure and learn new things out of it, he used to think big, built a strong team and delegate
them in effective manner, have excellent communication skills and ensure it among members,
etc. He is also a philanthropist and donated millions to charitable trusts.
P6: Aspects of the entrepreneurial personality.
Proficient entrepreneurs depicts great entrepreneurial personality which becomes role
models for other individuals who are going to start up their ventures. Great entrepreneurs highly

motivates new entrepreneurs and guide them with various necessary factors and key points
which can help them to start their business in more efficient manner(Bridge and O'Neill, 2012).
It is not necessary that every entrepreneurs comes from a wealthy family and have good
background or lifestyles. They can be from poor families like one mentioned above, that is David
and Simon Reuben, they lived in poverty and have no connection with rich people. From there,
they decided to make meaning out of their lives and shifted to London to start up their business.
They were not having good condition, out of which they did not leave their hope for starting a
business and did hard work to make their dreams possible. They took several risks in order to
start up their venture and something successfully succeeded and sometime failed. This thing
didn't change their mind, they work more to make things better.
The zeal and entrepreneurial spirit both brother have is a great inspirational and
motivational factor for other individuals. This reflects that, to become a great entrepreneur, it is
not necessary to belong from a rich background, it all requires to have great zeal and motivation
to do something meaningful and provide benefits to people as well as to country.
Whereas in other situation, if an entrepreneurs is belonging from rich family and have
good condition, they can take more risks as they have financial support and good connections
which can be a great advantage at the time of starting a new business as finances are the most
crucial factor for business(Burns, 2010).
Shaping of entrepreneurial personality is greatly affected by family upbringing, lifestyle,
cultural differences, personal motivation, etc.
Family upbringing: It is one of the important factor which greatly influences
entrepreneurship personality. Education and guidance provide by parents greatly impacts on
personality. If mother and father both are entrepreneurs, then they can shape the personality more
efficiently and guide them in better manner. If parents are not entrepreneur, they can also give
proper guidance and shape their children's personality.
Culture differences: There are some places where starting up a business for men and
women are not allowed or have less proportions. Cultures is concerned with attitude and beliefs
in the case of entrepreneurship which may be linked with autonomy, creativity and sense of
responsibility ans so on. It also refers to hard skills which include entrepreneurial knowledge and
skills and management competencies. Culture is basically mixture of various norms, values and
belief that is shared by a particular community and impacts personality of an individual.

Personal motivation: If an individual wants to start a new business, the he or she should
have zeal and will to do that. Personal motivation is a great factor which encourage individual to
take risk and make decisions which can help them to establish good business(Carland and
Carland, 2015).
P7: Influence of person’s background and past experiences that hinder or foster entrepreneurship.
Entrepreneurship is greatly influenced by past and person's background as they can pose
negative as well as positive impact(Dennis, 2011). There are some factors which impact
entrepreneurship and are mentioned below:
Level and type of education:
CONCLUSION
From above assignment, it can be concluded that, entrepreneurs are the one who start up
their new business and strengthen economy of the country. To become successful, individual
have to posses different traits as mentioned above in the assignment. Now days, it has become a
trend to open up new businesses and motivate other candidates to implement their ideas into
practical. They can start at micro and small level, afterwards they can expand their business and
operate at large scale. Entrepreneurial personality is greatly effected by family upbringing,
culture differences, personal motivation, etc. Successful entrepreneur greatly influence new
entrepreneur to start good business and run in desired manner.

REFERENCES
Books and Journals
Mariotti, S. and Glackin, C., 2014. Entrepreneurship and small business management. Pearson
Higher Ed.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Pott, O. and Pott, A., 2012. Entrepreneurship. Unternehmensgründung, unternehmerisches
Handeln und rechtliche Aspekte, Heidelberg.
Welter, F., 2011. Contextualizing entrepreneurship—conceptual challenges and ways
forward. Entrepreneurship theory and practice. 35(1). pp. 165-184.
Brenkert, G.G., 2017. Entrepreneurship, ethics, and the good society. In Entrepreneurship (pp.
85-128). Routledge.
Parker, S .C., 2018. The economics of entrepreneurship. Cambridge University Press.
Schaper, M. T and et al, 2014. Entrepreneurship and small business.
Zimmerer, T. W., Scarborough, N. M. and Wilson, D., 2005. Essentials of entrepreneurship and
small business management. Upper Saddle River, NJ: Pearson/Prentice Hall.
Carland, J. W and et al, 2007. Differentiating entrepreneurs from small business owners: A
conceptualization. In Entrepreneurship (pp. 73-81). Springer, Berlin, Heidelberg.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small business.
Palgrave Macmillan.
Burns, P., 2010. Entrepreneurship and Small Business: Start-up. Growth and Maturity. Palgrave
Macmillan.
Carland, J.W. and Carland, J.C., 2015. A model of potential entrepreneurship: Profiles and
educational implications. Journal of Small Business Strategy. 8(1). pp.1-14.
Dennis Jr, W.J., 2011. Entrepreneurship, small business and public policy levers. Journal of
Small Business Management, 49(1), pp.92-106.
Down, S., 2010. Enterprise, entrepreneurship and small business. Sage.
George, G. and Bock, A.J., 2011. The business model in practice and its implications for
entrepreneurship research. Entrepreneurship theory and practice. 35(1). pp.83-111.
Gorgievski, M.J., Ascalon, M.E. and Stephan, U., 2011. Small business owners' success criteria,
a values approach to personal differences. Journal of Small Business Management.
49(2). pp.207-232.
Hall, J.K., Daneke, G.A. and Lenox, M.J., 2010. Sustainable development and entrepreneurship:
Past contributions and future directions. Journal of Business Venturing. 25(5). pp.439-
448.
Leitch, C., Hill, F. and Neergaard, H., 2010. Entrepreneurial and business growth and the quest
for a “comprehensive theory”: tilting at windmills?. Entrepreneurship Theory and
Practice. 34(2). pp.249-260.
Ligthelm, A.A., 2010. Entrepreneurship and small business sustainability. Southern African
Business Review. 14(3).