Entrepreneurship and Small Business Management Report and Analysis

This report on Entrepreneurship and Small Business Management provides a comprehensive analysis of different types of entrepreneurial ventures, including small business, scalable start-ups, large company, and social entrepreneurship, and their relation to the typology of entrepreneurship. The report investigates the similarities and differences between these ventures, and evaluates the impact of small, medium, and large businesses on the economy using relevant data and statistics, particularly focusing on the UK. It also interprets data to illustrate the impact of micro and small businesses on the economy and explains the role of small businesses and start-ups in the growth of the social economy. Furthermore, the report delves into the characteristic traits and skills of successful entrepreneurs, explores aspects of entrepreneurial personality, and examines how background and experience can influence entrepreneurial performance, providing an in-depth understanding of the field.

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................2
TASK 1 ...........................................................................................................................................2
P1 Different types of entrepreneurial ventures and manner in which they related to typology
of entrepreneurship......................................................................................................................2
M1 Investigation of diverse range of entrepreneurial venture to demonstrate and
understanding of entrepreneurship in public and corporate sector.............................................4
P2 Similarities and difference in between entrepreneurial ventures...........................................4
M2 Evaluate the differences small, medium and large businesses make to the economy
applying relevant data and statistics............................................................................................1
TASK 2 ...........................................................................................................................................1
P3 Interpret relevant data and statistics to illustrate how micro and small business impact on
the economy................................................................................................................................1
P4 Explain small business and business start ups to growth of the social economy .................3
TASK 3............................................................................................................................................4
P5 Characteristic traits and skills of successful entrepreneurs ...................................................4
P6 Aspects entrepreneurial personality.......................................................................................6
M3 Explore and examine different lines of argument relating to entrepreneurial characteristic7
TASK 4............................................................................................................................................1
P7 Different ways by which background and experience can hamper the performance of
entrepreneurship..........................................................................................................................1
M4 Analyse the link between entrepreneurial characteristics and the influence of personal
background and experience to specific successful entrepreneurs .............................................2
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
Entrepreneurship is a formative action in which a business is set up as to gain profit and
stability. This form of business is an entrepreneur take risk to start their venture with small
capital in order to gain profit (Ács and Szerb 2014). A small-business and start up units acts as
an most important part of a country in order to strengthening its position and economic stability.
Present case scenario is based on, Entrepreneur and Small business management. This report
include different form of entrepreneurial ventures along with impact of small and micro business
unites of a economy. In addition with this report covers skills and traits of an successful
entrepreneur. Lastly, different aspects of entrepreneurial personality, mindset, motivation and
manner in which experience and background can foster or hinder concept of entrepreneurship is
included in this report.
TASK 1
P1 Different types of entrepreneurial ventures and manner in which they related to typology of
entrepreneurship
As per the definition of Koontz & Fulmer, entrepreneurship is mainly a person ability to
evaluate business opportunity in order to gather capital together as to take advantage of
opportunity as to run a business while taking risk of failure and hoping for success.
Entrepreneurship is a form of business process in which creation of a successful entity is
done with the help of effective ides and innovation (Aspects of Entrepreneurial personality.
2017). An entrepreneur start their business with a sum of limited resources and capital along with
a risk factor in order to effectively contribute in nation economy. There are different forms of
entrepreneurial ventures which is described below:
Small business entrepreneurship:
There are wide range of small-business ventures existed in UK. Small businesses venture
are operated by small ratio of employees along with owners or also can be run by friends, family
and partners. Some of the examples of small entrepreneur include, small scale production houses,
internet cafes consulting and mobile retailers.
Scalable start-up entrepreneurship:

Entrepreneur of these business start ups put their more focus on innovation and quality
of a product and services. Main purpose of entities within small scale entrepreneurship is scale.
In this venture capital and financial investment is required to expand their business.
Large company entrepreneurship:

Companies within large scale entrepreneurship put their more focus on offering best
effective and innovative products and services to their customers. As in this dynamic changing
world where preferences and demands of customers are changing in a fast phase it is essential
for entrepreneur to effectively mould their ideas and bring more innovation in their offering as to
effectively compete with their present competitors.
Social entrepreneurship: In this form of entrepreneurial venture entrepreneurs effectively
contributes their ideas in order to serve society and environment in better way. In this,
entrepreneur develop more innovative products and services that will help them serve society is
a better way.
All these types of entrepreneurial venture effectively contribute their functioning and
ideas in order to create a more develop market environment (Drucker, 2014). This will not only
help them to create more profit base but also benefit economy of a country to effectively
strengthen their market stability.
Typologies of entrepreneurship ventures:
Topologies refers to the segmentation of things based on their types. This segmentation
can be based on structure, form, style and plan. The typologies of entrepreneurial ventures are
discussed below:
Survival Ventures: These ventures are formed for meeting the basic necessities of
humans in order to survive in the market. The business companies in this sector are not
registered due to which they did not perform the business operations in any type of premises.
Micro ventures are common example of such ventures.
Lifestyle Ventures: These are formed for meeting the income satisfaction of the
entrepreneur. Such ventures are not subjected to growth and expansion. These ventures has
constant employees and operate their business from a single premises. Example include small
business organisations.
Managed Growth Ventures: Such ventures are formed for expanding their business
operations, launching new products and services with innovative ideas, shifting their
geographical locations and hire new staff etc. Example of such venture includes medium sized
organisation.
Aggressive Growth Ventures: These are technology based ventures having strong
innovative potential. These organisation gathers the necessary funds from equity capital in order

to seek more growth. Their main focus is on globalising their business. Example of such ventures
include large scale business enterprises.
Social Enterprise: Enterprises like social and scalable perform their business functions
with a motive to grow their business in a short period of time by offering best effective services.
Small Enterprise: Organisation those who perform their functions in small scale
enterprise provide required amount of benefits to consumers by evaluating their needs and wants
in best effective way.
Lifestyle Firms: Lifestyle venture also aim towards creating high end goodwill in a
marketplace and perform their daily basis operations with a purpose to create huge profit.
M1 Investigation of diverse range of entrepreneurial venture to demonstrate and understanding
of entrepreneurship in public and corporate sector
Social entrepreneurship: Entities within this sector, perform their functions in public
sector as they operate their day-to-day functioning in order to satisfy customers in best effective
way without considering high profitability base.
Large company entrepreneurship: Companies within large company entrepreneurship
operate their goals in corporate sector. Companies within this, put more focus on providing
products and services to customers along with expecting to gain more profitability base.
P2 Similarities and difference in between entrepreneurial ventures
There are different types of elements with the help of which similarities and
differentiation of a task and a activity can be effectively conducted. There are some certain
differences and similarities is done for entrepreneurial ventures:
Types of enterprises Similarities Differences
Small v/s Large Business
enterprise
 Business enterprises
within small and large
enterprises perform
their functions by
offering all possible
benefits to consumers
 Appropriate
differentiation in
between large scale and
small business
enterprises can be
effectively done by

by ensuring their actual
demand and need in a
best effective way.
measuring their
financial conditions.
For instance,
organisations of large
scale operate their
business with huge
ratio of fund in order to
effectively conduct
their day-to-day
business functioning.
While on the other
hand, entities within
small enterprises
perform their business
functioning with
limited source of
capital and resources.
Social v/s Scalable
Enterprise
 Business entities within
social and scalable
enterprises mainly
conduct their day-to-
day business functions
with a motive to offer
welfare services to
society and individual.
 Entities engage in the
process of creating
wide range of new and
innovative ideas in
order to serve people
by providing them best
 Social enterprises
conduct their business
operations with a
formative aim to offer
welfare services to
consumers. On the
other hand,
entrepreneur of
scalable enterprises
perform their business
functions with a motive
to bring best effective
and innovative
offerings to their

beneficial services as to
make their life more
easier (Kirzner, 2015).
customers.
 Entrepreneurs in
scalable enterprises
perform their day-to-
day operations while
satisfying large
consumer base in order
to increase enterprise
probability. While on
the other hand,
entrepreneurs of social
enterprises effectively
perform their business
operations as to solve
different types of issues
that has been faced by
individuals.
Lifestyle and survival
Entrepreneurial Venture
Ventures like survival and
Lifestyle operate their day-to-
day functions with a motive to
earn huge profit along with
sustainable growth. (Fassi and
Buelens, 2011).
In lifestyle venture
entrepreneurs run their
business functions as per their
interests and passion. They
perform their business
operations according to their
field of interest. For instance,
travel bloggers and fashion
bloggers. While, entrepreneurs
form survival venture conduct
their business operations as to
ensure long term sustainability
of their business.

M2 Evaluate the differences small, medium and large businesses make to the economy applying
relevant data and statistics
Enterprises within small and large business enterprises conduct their day-to-day
operations as to offer best effective and qualitative products and services inn order to accomplish
their objectives and targets in a well defined way (Islam, 2011). Whereas, Enterprises in small
scale sector operate their business operations in national and local marketplace while, large scale
enterprises perform their functioning at international and national marketplace. All the
companies performing their functions in this sector effectively contributes in UK economy by
increasing GDP up to 6.1 %. Along with this in the employment sector these companies helps in
raising estimated amount of 33% increase within UK.
Figure 1UK SME's Data, Charts and Graphs
Source: Merchant navy, 2018

Medium Scale Business:
Medium scale business is a unit in which number of personnel fall below some certain
limits. Some of the examples of Medium scale enterprises are independent firms, subsidiary.
Large Scale Business:
They are large scale units those who engage in the process of huge transaction. Companies
within this sector require huge manpower and infrastructure along with capital assets.
Small Scale venture impacted largely on the economy of UK as it efficiently increases
Employment rate at the rate of employing upto 16. 3 million individuals in UK (The Role of
Small Business in the UK economy, 2018). In addition with this, small business units had
estimated amount of 2.0 million Euros turnover which helps UK to remarkably increase its
overall ecomony.
TASK 2
P3 Interpret relevant data and statistics to illustrate how micro and small business impact on the
economy
Micro and small organisation are consider as essential part of any economy of country
which help them in increasing their presence in international market (Decker, 2014). According
to report published by government of UK, it is analysis that micro and small business more than
87 percent are contributing in boosting economy of country. In UK there are more then 4.1
billions micro and small company conducting their business and help in growing economy.
Through this GDP of UK get strengthen by 6.1 percent. Along with this, these type of

organisation generate job opportunities at local, state, national and international level by offering
effective products and services to customers. By evaluating data published in past many year it is
identified that now a day micro and small business organisation increasing rapidly.

Illustration 1: Impact of Economy on UK, 2018
(Source: Impact of Economy on UK, 2018)
By analysing above given graph it can be evaluate or interpreter that, Brexit impact on
UK market in positive manner because by after it micro company grow near about 88.2 percent
and as compare to GLLCP than it is expanding more than 0.6 percent rate. Along with this other
industry i.e. small and large are having similar kind of starts. So it can be conclude that micro
level company are more likely to confluence economy in both negative and positive manner of
United Kingdom.
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Share of business in United Kingdom: In United Kingdom there are large number of small and
large business unit which help in growing economy of country in effective and appropriate
manner (Kuratko, 2016). These respective sector prove approx 1.4 millions employment
opportunities for local, state, national and international peoples in UK. Moreover by this they
able to gain more and more foreign currencies which help in strengthen economy of country in
effective and appropriate manner. There two type of business also impact on economy of
country, some major of them are explain below:-
Job Creation: Micro and small business units plays an essential role in growing economy of
country as well as it also help in generating jobs or employment. According to published data by
government of UK, it is show that small and micro level business generate 2.50 millions
employment opportunities for unemployed peoples. Along with this, through the respective data
it is also identify that more than 50.1 percent female are working in respective sector. Through
which UK able to build themselves as a women empowered country.
Contribution to Innovation: Small and micro business company come up with new and
innovative ideas, products and services in order to attract customers and serve market in
appropriate manner. Small business units provide quality products to large business unit for
completing production procedures. Moreover this will help leading stable economy, increase job
opportunities and living standard of customers.
In respect of UK small and micro level business company contribute in enhancing their
economy and generating revenue. Along with this 1.9 millions jobs are generated by small
company in UK which help respective company in boosting their strength in effective manner.
Moreover their government also providing relief of tax on these enterprise in order to motivate
them.
P4 Explain small business and business start ups to growth of the social economy
Exit of Britain form European Union is known as Brexit. A referendum was passed in
which 51.9% population form Britain voted in the favour of Brexit while region of Scotland and
Ireland decided to remain the providence of EU. This put large impact on United Kingdom
economy which create so many obstacles for UK to grow. Thus, in order to cope up with this
situation in best effective way government of UK decided to create formative ideas for small-
business and start up to increase them as an tool which help UK to rise. In order to strengthen
small-business government of UK is required to provide contributive support to these units by
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providing them different types of perks and benefits such as relaxation in Tax rates. This will
help country to strengthen their financial stability and overall productivity.
Social Economy
It is an economy that mainly participates in trade that are related to international. Countries
those who have small economies are basically are a price taker. Small and Micro business units
effectively contributes about 6.0% GDP by bringing more job opportunities and innovative
products and services. Thus these business units play essential importance for small business
units and start ups.
TASK 3
P5 Characteristic traits and skills of successful entrepreneurs
Every individual has different skills and traits that differentiate themselves from one
another. It is essential for every entrepreneur to update themselves according to the changing
time in order to improve their capability and skills (Kiss and Cavusgil, 2012). Basic traits for
entrepreneurs includes high risk taking capabilities, confidence, adaptable etc. In context to
current report, characteristics and skills of two different successful entrepreneurs are stated as
below:
Peter David Jones
Peter David Jones, a British entrepreneur born in 1966. The person has developed an
academy in which skills of entrepreneurs are being taught to young generation people. The
characteristic and skills of Peter David Jones has been stated as below:
Characteristic of Peter Jones:
Confident: High level of confidence helps entrepreneurs in making their business
successful. In context to chosen entrepreneur, the person is very confident which helps him in
performing their work in effective manner. High level of confidence also improves performance
of individual and makes it easier for him to attain their goals and objectives in effective manner.
Passionate: Passion is considered as the best characteristic of entrepreneur which
enhances chances of their success in effectively. The chosen entrepreneur is much passionate
about their professional life. This can be well understood by observing failure in business and got
loss of around 200,000 euros. Further with positive passion Peter have joined Nixdorf.
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Managers basically works for company that might be completely different from their interest.
This shows that manager do not work towards their passion as compared to entrepreneur.
Skills of Peter Jones:
Innovative Thinking: The entrepreneur is recognised with its innovative thinking that is
related with television, retail, mobile phones and property. The innovative thinking of this
entrepreneur have made him realise that entrepreneurship skills could be taught to young people
on the basis of their acceptance. This skill of Peter separates him from other managers as they
does bring high innovation in their decision making.
Time management: Peter Jones is also blessed with time management skill as the person
adequately manages its work within the provided time frame. In addition to this, Peter Jones also
utilises extra time by investing it into supporting young entrepreneurs by teaching them.
Characteristics traits of Peter Jones:
Peter Jones is highly confident as his profession belongs to media industry (Choi and
Majumdar, 2014). Profession of this person makes him face many cameras in a single day. It
can be said that entrepreneur have high range of confidence as compared to managers as they
take more risky decisions which is only possible because of their confidence only.
Simon Phillip:
Simon Phillip Cowell is England based entrepreneurs who belongs to profession of
television producer, manager, talent judge, etc. Simon is popularised for its singing and bands of
boys.
Characteristic of Simon Cowell
Optimistic: It is the core characteristic of individual which focuses in negative change
into positive and worthful that provides significant outcome. In context to Simon Cowell, the
entrepreneur has strong capability of optimistic which have made him successful in his
profession.
Risk Tolerance: Risk taking is considered as the capability of individual which allows
him to take risky decisions that are mandatory for their company. Simon have to take numerous
of decision in their day to day life as they belongs to profession of television producer,
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consultant, judge of reality shows and entrainment manager. Risky but successful decision of
Simon have made it possible for him to attain success.
Skills of Simon Cowell
Leadership: Simon Cowell follows democratic leadership style which influences interest
of his followers and also helps in attained desired goals in effective manner.
Effective communication: Simon Cowell owns effective and influential communication
skill that helps him in persuading interest of its followers and makes him work accordingly.
P6 Aspects entrepreneurial personality
Every individual posses special attribute which distinguishes them from others and those
attributes and skills assist them to push their limits and fulfils goals and targets efficaciously. To
form their personality individual must have proper knowledge base and skills
Openness: Individuals who adapt to learn new things on the continous basis and enjoys
high degree of experiences. This involves various types of traits such as imaginative, insightful
and other variety of interests. This is required by entrepreneur to maintain healthy competitive
environment which will further help to achieve goals and objectives. This leads to increase in
sales and functions of manufacturing.
Conscientiousness: To conduct business operations smoothly it is important for the
entrepreneur to be aware of their conscious mind as this will benefit in implementing the
innovative ideas (Kirzner, 2015). As, there are dynamic changes in environment so it is
important for every firm to adopt the changes and modify the ideas, policies and strategies to
conduct business operations in effective manner.
Extraversion: as per this trait, the individuals posses with sociability, talkativeness,
assertiveness and excitability. Individuals with high degree of extraversion are tend to outgoing
and want to be remain around other people. Whereas, individuals with low degree of
extraversion are more reserved and believe in social settings. Further this will help in
accomplishing their goals and objectives.
Agreeableness: It is important for individuals to be agreeable in nature to carry out
business operations and influence others with their ideas. For this they must have positive
influencing power with effective communication skills. It is crucial for entrepreneurs to have
such a personality which will help to inspire team members and lead to increase their
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motivational level. This will lead to accept future challenges and accomplish their targets in the
specific time period.
Neuroticism: According to this trait individual are having high degree of emotional
instability and posses negative emotions. To overcome this it is important for individuals to
posses certain skills for controlling their emotional stability and decrease their level of negative
emotions. It is very important for entrepreneurs to maintain their emotional stability. Their
should be no impact on their behaviours because of failures and must have risk taking abilities.
It is essential for an entrepreneur to have proper emotional stability in their nature. Further this
will provide certain benefits to assume risk and decrease the degree of risk.
M3 Explore and examine different lines of argument relating to entrepreneurial characteristic
Characteristics of entrepreneur possess broad similarities with respect to characteristics of
leader. Entrepreneurs formulate their own goals for handling risks and make plans for achieving
them. For this they need to interact with large number of people like distributors, suppliers,
investors and employees. Apart from this, they need to have plans and use these resources for
attaining objectives of organisation.
Entrepreneurs are made as things change continuously thus to adopt that it is require by an
individual to adopt different types of skills and traits. These characterises can be effectively learn
by any person with high possessiveness of learning (Are Entrepreneurs Born or made, 2019). As
with having ability to learn new things and identification of new opportunities lead a person to
become self employed.
TASK 4
P7 Different ways by which background and experience can hamper the performance of
entrepreneurship
Entrepreneurship is a process of intuition, developing, organising, managing and running
a successful venture. It is the capacity and willingness to develop and initiate the innovative
ideas for running a smooth business (Chrisman, 2012). An entrepreneur is an individual who is
also known as an innovator who have capability of producing several new ideas and
implementing them for further production of products or services. Two entrepreneurs discussed
in this report are Simon Cowell and Peter Jones. The description of each is the following:
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Education: Education and learning are now not so important but impacts the idea
generation of the entrepreneur. In the present scenario, it has been noticed that education is only
required for starting ideas. Every entrepreneur is educated in today's scenario which helps in
generating skills for initiating ideas. The selected entrepreneurs have develop creative mindset
by starting innovative ideas at younger age. For instance, the belongings of Simon Cowell were
from Lambeth, London whose mother was a ballet performer and father was property developer,
real estate agent and executive in music industry.
Family background: family background has great impact on the entrepreneurs. It
defines the person living standard. An entrepreneur who has faced the challenging atmosphere
and belongs from challenging background understands the worth of money and initiates there
skills in distinct areas by optimum utilisation of available resources. For example, the
background of Simon Cowell is reputed where his parents are well educated and helped in
understanding the skills and fostering growth of them but the case with Peter Jones is not same.
He had faced various critical situations in his past which made him ready to face all the
uncertainties in future to grow the skills as well as personality.
Social Networks: Social networks helps in developed experience along with good
relations with others for the purpose of acquiring the knowledge and sharing the skills. The
social network plays an important function in the life of any entrepreneur. Skills are enhanced by
the individuals by contacting with other people as well as gaining more experiences by noticing
the manner of performing ideas in the social networking (Bridge and O'Neill, 2012). In case of
Simon Cowell, he has more relations in the social networking which helps in influencing various
people. Such key skill enhances the entrepreneurship within him.
M4 Analyse the link between entrepreneurial characteristics and the influence of personal
background and experience to specific successful entrepreneurs
Different entrepreneurs have different qualities or skills to formulate the ideas. Some of
the qualities includes risk taking ability, open minded, creativity, confident, passion towards
ethical working and many more. The entrepreneurial abilities depend upon their family
experiences, background, networking along with knowledge. It can be said that education, family
background along with social networks plays an important function which influences the way of
performing innovative ideas as well as helps them to become the successful entrepreneurs.
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Simon Cowell acquired his skills in music from the parents. In contract, Peter Jones is an
investor on BBC and is an entrepreneur who has interest in television, retail, mobile phones,
media and property.
CONCLUSION
From the above report, it has been concluded that entrepreneurship is concerned with
assuming the risk with the unique and innovative idea that can make changes in the overall
world. This present report is related to concept of entrepreneurship in extended manner which
contributes towards the economic development and growth in effective manner. Business venture
is classified in different types such as small, micro, medium and large sector enterprises which
helps to capture a large share of market and further leads towards growth of economy in
efficacious manner. Therefore, it is crucial for the entrepreneurs to have proper skills and
knowledge base and must have appropriate qualities with respect to confidence and decision
making skills so, that business operations are conducted in effective manner. Moreover, to attain
best possible outcomes history, background and past experiences helps entrepreneurs to frame
their business ideas accordingly.
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