Entrepreneurship and Small Business Management: Strategies & Impact

This report provides a comprehensive overview of entrepreneurship and small business management, beginning with a definition of entrepreneurship and its significance. It explores various types of entrepreneurial ventures, including small business, scalable, large company, and social entrepreneurship, highlighting their similarities and differences. The report also examines the impact of small businesses on the economy, emphasizing their role in financial independence, innovation, and job creation. Furthermore, it discusses the traits and skills of successful entrepreneurs, along with the motivations and mindsets that drive them. The report concludes by considering how background experiences can foster entrepreneurship, offering valuable insights for aspiring business owners and those interested in understanding the dynamics of small and medium-sized enterprises.

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1 Types of entrepreneurial ventures.....................................................................................1
P2 Similarities and differences between various entrepreneurial ventures............................3
TASK 2 ...........................................................................................................................................5
P3 Access the data research and how business impact on the economy................................5
P4 Small business contribute to the growth of social economy.............................................6
TASK 3 ...........................................................................................................................................8
P5 Traits and skill of successful entrepreneur........................................................................8
P6 Aspects that reflect motivation and mindset of an entrepreneur.....................................10
TASK 4 ........................................................................................................................................10
P7 How the background experiences can foster entrepreneurship.......................................10
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
An Individual who have distinctive thought process and the ideas they are putting in
running a business is called as entrepreneurship and person who is involved in this procedure is
defined as entrepreneur and business entity is called as enterprise(Albort-Morant and Ribeiro-
Soriano, 2016). A specific person takes all the responsibility of risks and benefits in a business .
The present report describes about the benefits of being an entrepreneur. Along with this the
skills required to be successful entrepreneur are also mentioned in the report. In addition with
this, types of entrepreneurial ventures and Importance of start ups and how it can contribute to
the economy of the country is also discussed. This report also emphasizes on how Brexit can
makes its influence on the small and medium size business enterprises. As an research executive
of an IT company, will try to clear all the aspects of a business that are helpful in making a
business successful.
TASK 1
P1 Types of entrepreneurial ventures
An activity which is used to set up the business undertaking financial hazards is known as
entrepreneurship and those people who create these type of business are considered as
entrepreneur (Baum, Frese and Baron, 2014). While its concept states that, a person or
individual that helps in staring the business activity from starting of an enterprise to make it
profitable along with time . Entrepreneur tries to use there quality of leadership and skill , its
overall managerial capability that can make the business effective and productive. This also
allows to develop the decision making capability for choosing the best alternative among the
various available.
Entrepreneurial ventures gives focus to give to the early and medium-sized company in
which they gives importance to innovation and opportunity that could be beneficial to a business.
Thus, enterprise can gain economic and social value in the business. There are various types of
entrepreneurial ventures which are as follows:
Small business entrepreneurship- A person who starts and run a business with
constricted amount of resources and plan. The idea of a model is having the new or innovate
product or services is known as small business entrepreneurship. For example carpenter,
plumber, hairdresser, travel agents etc. Generally the type of entrepreneur hire various
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employees from their own family (Birley and Stockley, 2017). These type of business are less
profitable when compared to the other business. The main aim of this entrepreneurship is to earn
living for family but despite of making higher profit margins. The entrepreneur of these type of
enterprise also make availability of funds through the small loan from friends and family.
Scalable entrepreneurship- The entrepreneurship that can be developed through an
innovative and creative idea is considered as scalable . This type of entrepreneurship moves the
business to the higher growth and to earn huge profit margins in shorter period of time is
considered as scalable type of entrepreneurship. This type of entrepreneurship makes its impact
by entering the huge market and takes share and the integrate them in a new market and grows
speedy (Burns and Dewhurst, 2016). Entrepreneur in these type of enterprise employ the best and
brightest employee which can give them fast and accurate results in a business. Large amount of
risks are involve in these kinds of programas the higher growth also have chances of higher risks
possibilities in a business.
Large company entrepreneurship- The entrepreneurship that are bigger in size as well
as that want to gain the productivity and performance for the longer period of time are
considered as large company entrepreneurship. This type of entrepreneurship give focus to
sustainable innovation and offer those kinds of product and services that varies to their main
product with some kind of creativity. In this, large company can also create new product in a
business that can give them competitive advantage over the rival (Cucculelli and Bettinelli,
2015). Higher amount of productivity and profit can be achieved but it is difficult to execute the
plan as these are large in size and consist of various culture in it.
Social entrepreneurship- The type of entrepreneurship which gives focus to those
product and services that aims to solve the social issues or problems arises in the environment.
The overall focus is to make this world a better place to live. There main concern is regarding
solving the problem not for earning more profit then ever. All the issues related to the
environment and various culture are addressed in this entrepreneurship program. Entrepreneur
develops their plan and implement them in order to get maximum benefits.
Entrepreneur's typologies can be categorised on the basis of different types and majorly it
can be classified into business and gender based typologies and both of them are explained
below:
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Trading entrepreneur- The type of business activity in which entrepreneur participate
in all the trading activity. Like obtaining the finished product from manufacturer through seller
so the trading entrepreneur acts as a middle man between the dealer and customer (Donnellon,
Ollila and Middleton, 2014). In these type of entrepreneurship, a businessperson deals with
various type of activity like marketing, branding etc. They creates and develop those idea that
helps them in effective trading.
Manufacturing entrepreneur- The entrepreneur which convert the raw substantial into
the finished good, they research about different types of resources and latest technology used in
manufacturing process. It identify the needs or desire of customer and tries to satisfy them as
early as possible.
Agricultural entrepreneur- The entrepreneur who does the business activity regarding
the agriculture motives falls under this category (Goffee and Scase, 2015). The company which
is related to the agricultural product adapts the situation according to the scenario of related
market,if the condition of market are good for making profit then, then the entrepreneur takes the
risk according to it . On the basis of gender, there are two kinds of entrepreneur which are as
follows:
Male entrepreneur- The business organisation that are controlled by men only and all the
related work of the business activity are done by men present in an company. They gives the
focus on the economy and cost effectiveness of the product and services, and are task oriented
and flexible in nature.
Female entrepreneur- The overall all entrepreneurs are closely-held and overall
controlled and managed by the women in the particular field. There main focus is to address all
the business which are related the women.
P2 Similarities and differences between various entrepreneurial ventures
Each type of entrepreneurial venture whereas is interlinked with each other, there are
numerous differences and similarities in each types i.e. discussed as under:
Sameness between small business entrepreneurship and scalable venture are as follows;-
1. Both type of entrepreneurial ventures work for achievement of sustainable profit and
growth.
2. Both entrepreneurial venture need best and bright employee as there is certain amount of
risk is involved in entrepreneurship activity(Goss, 2015).
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3. Creativity and innovation are needed in both type of venture for the longer run in the
business.
4. Adjustment or changes can be done at any level of program so both are flexible in
nature.
Differences between small and scalable type of entrepreneurship are as follows.
Small business entrepreneurship Scalable entrepreneurship
The employee in these type of
entrepreneurship are generally the family
member, relative and friends.
High quality and professional are needed to
maintain the sustainable growth and are chosen
through professional interview process
Profit margins are lower and takes calculated
risk so there is slower growth rate of the
business.
Almost all types of risks are taken and to
handle all those risks, profession are taken as
an expert, higher possibility of growth rate.
Overall size of the company is smaller and
number of employees are also less .
Comparatively bigger in the size and
considerable more employees number.
These generally focus on the basic needs of the
consumer hence less innovative
service/product.
This gives focus to creativity and innovation
the most importantly it gives concentration on
rapid growth of the organisation in short period
of time.
Similarities between large company and social entrepreneurship are as follows
1. Both kind of entrepreneurship work for the larger number of people or customer.
2. Both work for solving the social, cultural and environmental issues as large company
entrepreneurship are also bound to perform all the corporate social responsibility (CSR)
while doing the business (Kuratko, Hornsby, and Hayton, 2015).
3. Both are focused on doing the business for the longer period of time.
The various differences between the large and social entrepreneurship are as mentioned
below:
Large company entrepreneurship Social entrepreneurship
Intentionally works for the economical and
financial growth of the country and
Works only to solve the problem related to
culture, environment and social issue.
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organisation.
Gives focus to the profit and productivity
margins.
Profit achieving is not their main goal they
work for people living in the society.
This covers the broader area of customer
when compared to social entrepreneurship.
Work for the particular types or class of people
and hence their reach to customer is small.
TASK 2
P3 Access the data research and how business impact on the economy
Handling the small and micro business is always challenging for the entrepreneur as all
the function of whole business are controlled and coordinated by an entrepreneur himself (Lima,
and et. al, 2015). There are various kinds of background in which small business operates can
and also can make their impact on the mind of people. According to a study it has been analysed
that over 5.2 million new business have provided job opportunities to people which means 99.9
percent business has been established in United Kingdom.
Mainly, the small business are overshadowed by the large business program as small
business cannot spend too much on there marketing and advertisement activity. And micro or
small business also generate less revenue than the large business but plays the important role in
the success of the economy of the country.
In three ways, the micro and small business contribute to the economy of the country:
1. The financial independence can be achieved by setting up small business in the country.
2. This also encourages creativity and innovation of the new product which helps in
knowing the desire of the customer.
3. It creates the employment opportunities with in the country.
So being the own boss of your business is always better than working as an employee
under someone. Small business always generates the opportunity and generates the employment
in every field of work whether it is technical, managerial, social etc.
Micro and small business are the engine for the growth and development of the country
as this make allow to both the citizen and the government of a country to attain or gain those
type of services that can help them in growth for future period of time (Mariotti and Glackin,
2015). This also allows to the creative entrepreneur in the country to act upon the various
innovative ideas that could make a dream business idea into reality. Most important benefit of
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the micro or small business management is that they give the money back to the people where
they live. So, this will also helps in making the country as well as various business independent
to the other for their product and services.
The creativity and innovation of the product and the services are matched with the desire
of the customer or the taste and reference of the customer and only the local or small business
can know somewhere the exact choice and the preferences of customer desire. All the business
whether small, medium or large have an impact on economy of United Kingdom and it can be
understood by the points mentioned below:
Local Impact: Companies that are operating its business at local level are helping United
Kingdom to 65 percent which means around 92 percent of the economical part is furnished
through firms working under this.
Regional Impact: Organisations that comes under this have a huge impact on the
economy of nation as it improves the status and generates more and more revenue.
International and national Business: In this context big companies come under this and
they help country in increasing their GDP rate upto 0.2 percent which is good as compared with
others.
P4 Small business contribute to the growth of social economy
Brexit is the short form of “ British exit from the European union”. After being detached
from the European union, there were several benefit for the United Kingdom which are as
follows :
Higher opportunities in the vibrant markets- After Brexit, the government of united
kingdom was able to sign new and fresh deal that can gave more profit outside the market of
European union (Mugler, 2017). The other member of the EU were also enjoying the benefits of
the international market. The country like China and India were also good in the economic rate
of growth so UK enjoys those benefit after getting separated from the European union.
Encouragement in the local business- After getting separated from the European Union,
the local business were put into the front as they were only the hope for the making the economic
growth stable, after drastically fall of business due to Brexit. So, as government of United
Kingdom stable in nature thus, company are making policies and strategies accordingly.
(Scarborough and Cornwall, 2015). This also build trust level of the local businessman and an
entrepreneur.
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Better talent can be acquired- After being separated, it had become beneficial to the
united kingdom to recruit the calibre engineer or staff for the non European countries. After
being isolated, the government of United Kingdom can attract more talented labour from the
other parts of the world.
Limit the rules and Regulation- The rules and regulation that were binding united
kingdom to limit to reach to its full potential in the context of growth of business ,while it was
member of European union. Those regulation were almost eliminated after brexit. Now, after
separation, they were becoming socially available for the growth of the social economy (Schaper
and et. al, 2014). The local entrepreneur and the small businessman were undoubtedly frustrated
with the regulation of Europasian union.
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Source: Impact of Brexit on economy
From the above mentioned graph it has been evaluated that although Brexit for a time
being puts a negative impact on the business environment but after particular period of time
growth in business was seen. This happened because of the fall in the economic level of United
Kingdom. Thus, due to this consequences government of UK told small business environment to
come up with new and innovative business. Therefore, these small business enterprise increased
the employment level and provided job opportunities at local level. Thus, with the help of this
graph business which are categorised between 1-9 comes under micro level business and it has
increased to 18.9 percent. Other than this, 10-49 comes under small business enterprise and they
have shown a growth of 23.4 percent.
TASK 3
P5 Traits and skill of successful entrepreneur
The traits and skill of the two successful entrepreneur that would be taken are as follows:
Mark Zuckerberg, the owner of Facebook and Steve Jobs, an American entrepreneur and
founder of famous company Apple Inc.
Mark Zuckerberg is founder of social networking site popular which is known as
Facebook. has its personality traits to make the ideas into the reality, , he always believes that a
great team is very much needed to make the businesses more success full. The risk taking ability
of mark Zuckerberg was very high it was its one of biggest characteristic which differentiate him
with others. His another personality traits is that he is a great philanthropist which is a quality to
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Illustration 1: Impact of Brexit on economy

do promote the well-being of various people in the society .The fearless attitude of mark is the
another character ic which makes him better that any other type of business men . Its personality
is most down to earth so the number of people are attracted to him. This is the most important
characteristic of its personality. Marks Zuckerberg always follow the path of feedback from the
employees as well as the people that uses there site. This helps in building him effective system
which would be always better then the previous one. He is never afraid of trying new things on
it social network and always ready to take risk which is the quality of an effective entrepreneur.
Steve jobs the founder of Apple Inc. is the another name who is the most successful
entrepreneur of the world was very innovative in nature he wanted to stay hungry and one who
never get satisfied with its present moment (Stead and Stead, 2017). He believed that there is
nothing impossible in this world which keeps him going towards the huge amount of success
with time. The aggressive mindset which is the another attribute or trait of Steve jobs is the trait
that helps in making the creative ideas for the future time period. Meditation and calmness is
very necessary for being stress free from the working environment and Steve jobs was very
spiritual in nature and he travelled throughout India for gaining spiritual thoughts. He was
tending towards the yoga and was fully devoted to meditation that gave him peaceful mind .Jobs
was strong believer of perfection in every type of work he does and if the things did not turn up
to be perfect to its expectation then he tries to make it perfect in every possible manner as he
can. The communication skill was excellent which an another traits of its personality , so Jobs
was very able to make understand there team of developer and engineers that what does he
actual expect to them, regarding the its innovative product and services.
These are some skill and the characteristic of two most successful entrepreneurs which
makes them different with the other businessman. There is a very large difference between the
businessperson and an entrepreneur. Where an entrepreneur works on a new or unique idea, a
businessman works on old idea which is already established.
These are some skill and the characteristic of two most successful entrepreneurs which
makes them different with the other businessman. There is a very large difference between the
businessperson and an entrepreneur. Where an entrepreneur works on a new or unique idea, a
businessman works on old idea which is already established.
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