Entrepreneurship and Small Business: A Detailed Report

This report provides a comprehensive overview of entrepreneurship and small business management. It begins by defining entrepreneurship and exploring different types of entrepreneurial ventures, including small businesses, large companies, scalable start-ups, and social organizations, highlighting their similarities and differences. The report then examines the impact of micro and small businesses on the UK economy, emphasizing their role in job creation and economic growth. It also discusses the importance of small-scale businesses in fostering social economy development. The report concludes by identifying the key traits and skills of successful entrepreneurs, such as being a dreamer, innovator, passionate, learner, and risk-taker, as well as the importance of feedback in business operations. Overall, the report offers valuable insights into the world of entrepreneurship and small business management, emphasizing their significance in both the financial and social economies.

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION....................................................................................................................................................3
TASK 1 ....................................................................................................................................................................3
P1. Entrepreneurial ventures and the topology of them......................................................................................3
P2. Similarities and differences between the different types of entrepreneurial ventures..................................4
P3. Impact of micro and small business in the economy....................................................................................5
P4. Importance of small scale businesses on the growth of social economy......................................................6
TASK 2.....................................................................................................................................................................7
P5. Successful entrepreneur traits and skills.......................................................................................................7
P6. Personality of a entrepreneur with regard to entrepreneurial motivation and mindset. ..............................8
P7. Influence of past experience of a entrepreneur.............................................................................................8
CONCLUSION........................................................................................................................................................9
REFERENCES.......................................................................................................................................................10

INTRODUCTION
Entrepreneurship is the business activity or it is referred to an innovation which is
made by the entrepreneur who undertakes all the task of the business process. He comes up
with a start-up in which ideas and innovations are included (Bridge and O'Neill, 2012).
Basically entrepreneurship has to deal with small businesses because small enterprise is full
of ideas and creativity. Federation of Small Business(ESB) is a organisation which deals with
small businesses in UK. The aim of this organisation is to promote small enterprise and watch
over their activities. They try to create an environment where these industries can grow. This
all assignment will be dealing with all the elements of entrepreneurship and how the small
businesses can be managed.
TASK 1
P1. Entrepreneurial ventures and the topology of them.
Entrepreneurship is a term which came into existence in 21st centuries and it is seen
that a entrepreneurial venture has lots of scope in the market it is unique and innovative. Any
product which is introduced in the market will be only accepted if it has some value and
people find it useful in their day to day life. Any entrepreneur can change the business plan or
could set new standards by renovating a business model because it is important that a existing
product is renovate or modified on regular time period. For every different ventures a new
plan is required depending upon the type of business it is. In market there are several
different types of entrepreneur ventures exists in the market which are as follows:-
Small Businesses:- This type of organisation operates their business activities in
limited area with limited number of resources. They normally hire employees in very limited
number so their production is also low (Lee-Ross and Lashley, 2010). Sales of these
enterprise is low because they don't have much business units so their production is in limited
quantity.
Large Business Companies:- Such companies manufacture or produce their products
and services in large quantity. Operating units are more than five and always believe in
expanding the number of those units in different areas and countries. They recruit employees
in large numbers so that they could complete the demand of their products and services in the

market. These types of companies are listed in the stock market and aims at earning profit for
their shareholders by distributing some amount of shares in the market.
Scalable Start-up Business:- They set up the targets or make a scale of the activities
which defines that what will be their priorities and while starting business on what areas they
will be focusing on.
Social Organisation:- Social organisation aims at serving the society through their
business. They carry out social work through social innovation and work normally in rural or
backward areas where scope of development is there (Storey and Greene, 2010).
Development of the social factor is the purpose of such kind of organisation.
These all types of organisation shares a relation with typology of entrepreneurship
which are the combination of these different ventures and types of entrepreneurship. Firms
can be differentiated on the basis of their role, purpose of those business and how large or
small it is on the basis of capital and labour. These can also be classified on the basis of
businesses, technology, motivation, ownership and gender.
P2. Similarities and differences between the different types of entrepreneurial ventures.
As discussed above we came to know that there are four different kinds of
entrepreneurial ventures based on different criteria and the business they operate.
Differences between Social and Scalable Start-ups
The purpose of Social entrepreneurial firms is to work for the humanity and develop qualities
in them. They operate their business activity by using resources in limited manner called as
sustainable development. They make products which can be useful or give services which
develop social environment. On the other hand scalable start-up aims at generating profit and
make target by looking for their profit.
Similarities
These kind of firms are funded by the government as they give subsidy to operate or start
these type of entrepreneurial ventures. These can be based on public private partnership
ownership terms where both has some sort of shares of the companies with them (Burns,
2010).
Differences between small and large enterprises
The difference between these ventures can be understood through their name only. They can
be differentiated on the basis of the hierarchy in the management as small scale industries

does not follow much structure or we could say that they does not have much level of
management. The decision making power is only with few people in small scale businesses
but in the large scale ventures decision making power is distributed among different people.
All the people working there are responsible for some sort of work which they have to
manage on their own level (Martin, McNally and Kay, 2013). We could say that these kind of
organisation follows a hierarchy with respect to its management. Small scale does not have
much labour for their business activity has the product of the goods and services are in
limited number.
Similarities
Both the ventures set goals and target for the team members that by this deadline they need to
complete or achieve certain specific work. They both have the common purpose of earning
profit.
P3. Impact of micro and small business in the economy.
Micro businesses are the businesses which has almost 10 employees or less than that.
Micro businesses can be like opening a ice-cream parlour or a small cafe. It is started with
very small amount of capital and create a big impact in the economy by enhancing the
income and lowering the overall cost of business. They are in maximum number if compared
with other entrepreneurial ventures because for opening such business not much amount of
money is required or no proper training is required. Whereas small scale ventures are the
business which are bigger than the micro businesses and might have up to 50 employees
working their. Both micro and small businesses are helping the UK economy in reaching new
heights and growth as they are creating employment for the citizens of UK in large numbers.
Approx. 5 million micro business are there which constituted 96% of overall business in UK
and accounts for 32% of employment (Acs, Audretsch and Lehmann, 2011). There are lots
of business like agriculture, mining, retail, transportation, accommodation, food, insurance,
education, health, social work and art related businesses constituted in micro and small scale
businesses. Normally most people like to open a business related to retail sector and gives
employment to 19% of people. In 2015 in the UK there were 383,000 business births and are
much more than the business deaths. So this shows that these business are expanding in large
number. Small and micro business are also attracting women entrepreneurs towards them
because the risk is low and the amount which need to be invested is also low. In 2014

business lead by women accounted for approx. 38% of all SMEs and in UK women led these
business contribute about approx. £75 billion to the economic output. These business have
contributed in every level of the economy from local level to national and international.
Small scale and micro level companies are also exporting these products and services in the
foreign countries which is helping British government to maintain balance of payment. Both
micro and small business can contribute their share in development of economy (Kirzner,
2015). They can increase the income, can create the employment, could increase yield,
improve food security and a better livelihood.
P4. Importance of small scale businesses on the growth of social economy.
Development of the economies of the country aims at developing social factor for
social well being. Development of the social organisations which constitutes social economy
are the main aim of the social development. Social organisations may be credit unions,
NGO's, charitable trusts and trade unions. Small scale industries or business not only have
role of developing the financial economy of the country but they equally have to contribute in
social economy. Aim of these business should be empowering people by providing or helping
them in getting certain things which are needed for living. They can contribute in developing
health and education facilities, solving water scarcity and sanitation problem. They could
increase the wages of the workers or labours who are working for them from a long period of
time. They could give some sort of profits in raising education standards or providing
resources which are useful making sure that every child of UK have access to education.
Those slum areas where poor people who are suffering from malnutrition can be checked or
can be given medical assistance by organising health camps. Developing livelihood also carry
benefits for for self-esteem, hope for the future and keep families together. Growth of small
scale business can also help the marginalized social groups like tribes, women and the people
who are suffering from disease like AIDS to come out and live a comfortable life where they
don't need to bow down in-front of any person. If they have any idea or innovative creation in
their mind they can start a business and could become independent. Opening a small business
does not require much capital, resources and has low risk (Drucker, 2014). If a country's
social economy growth rate is high than country will automatically see the positive
consequences in financial economy. Happiness index, life expectancy and healthy population
are the indicators of social economy.

TASK 2
P5. Successful entrepreneur traits and skills.
Successful entrepreneur is the innovator who knows how to use his skills to drive his
organisation to success. The enterprise he owns is flexible and dynamic in nature and are
open to any form of innovation or creativity. It is estimated that a successful entrepreneur
should posses some skills and traits which are as following:-
Dreamer:- He should have an idea about whatever things he will be carrying out or he
should have a image of the future goals which he wants to accomplish.
Innovator:- Successful entrepreneur have a talent of creating innovation through
assuming resources available to him. He should have skills of doing things differently at
regular basis and a modification should be done so that he could maintain the standards.
Passionate:- He should posses a spark in his mind that help him in doing work more
efficiently (Baum, Frese and Baron, 2014). Entrepreneur don't bother about the hurdles which
will be coming in their way because they are confident in whatever they are doing.
Learner:- Entrepreneur is a learner who always try to try from his experiences or
something related to his field of business.
Risk Taker:- Entrepreneurship is a business activity which involves a lots of risk but
that does not mean he should stop his activities. Business is full of uncertainty so should take
risk on the basis of assumptions.
Feedback:- The best way to know the performance of the business is to take feedback
from the market where it is performing its operations. By knowing the status of the business
it will help them to know what is going wrong and what all changes need to be done in
business plan.
Richard Branson is the founder of UK based Virgin Group who is known to be investor and
philanthropist. His success stories are almost known to every person because he has that
attitude of working hard and utilize the opportunities available in the market. When he was at
very young age he wanted to be an entrepreneur at a young age (Morris, Kuratko and Covin,
2010). And his desire and passion made him hit the bulls eye and came out with Virgin
Group which has become a prominent group because people trust them. In 2016 it had 19.5
billion GBP revenue and continuously increasing or expanding their business in different
sectors. Its the background and past experience which effects its business but it is not

important a entrepreneur should have qualities and traits by birth (Bosma and Levie, 2010).
They have the art of looking at things very minutely because they know every small thing can
create a impact.
P6. Personality of a entrepreneur with regard to entrepreneurial motivation and mindset.
Entrepreneurship is affected by lots of things like what kind of personality and
mindset a entrepreneur have. Whatever are our past experience that will definitely affect the
business he is involved in. Personality of the person can be defined as the qualities that make
character of the person. For example, a person have destructive personality so that means he
don't look at things in positive manner. There can be various aspects of it like the mental,
emotional, physical, spiritual and social (Dacin, Dacin and Matear, 2010). These all are
connect to the mind of a person and its the mindset of the person how he reacts to the various
things around him. A personality can be shaped by family upbringing, lifestyle of a
individual, cultural differences because his life revolves around these. If a person want to
achieve success in the business he is doing than he needs to be motivated or believe in
personal motivation factor because he come across a lots of person or situation so its on him
how he takes those situation and make a mindset. He should get motivated from those
situation whether good or bad. Entrepreneur should be confident enough or should have high
moral. It is important that owner of the firm who is an entrepreneur should be motivated, has
a nice personality which shows his mindset because when he will be well and good his staff
who is working under him will also gets an motivation.
P7. Influence of past experience of a entrepreneur.
Before starting any business a action plan is prepared by the entrepreneur which
highlights all the activities which he will be carrying out. He needs to know what are the risks
involved or what reward he will get in starting a business. But there are lots of things which
he need to see before starting it as background of the entrepreneur affects a lot. Background
can be defined on various factors like types of education, nationality of the person, economic
circumstances and his character traits (Defourny and Nyssens, 2010). For example, a
entrepreneur wants to start a mechanic business so he should have knowledge or have
education of machines and its various applications. Other person who wants to start a
business a selling flower and greeting cards in Saudi Arabia but he will hardly get successful
as rules and regulation of the country does not allow people to get moral social and show

their affection at public place. For starting a business a person needs money so he should be
economically strong because if he has taken someone kind of loan and does not get succeed
so he will be in big loss. So by keeping risks in mind he should arrange his funds and make a
second plan if plan first fails.
CONCLUSION
Small businesses contributes a handsome share in the economy of any country and in
UK it is providing the employment to a almost half of the population according to the official
data. They contribute in the social economy of the country by improving their lifestyle and
empowering socially marginalized groups. Entrepreneur is a person who is responsible for
every activity taking place so he should be motivated and has a positive background.

REFERENCES
Books and Journals
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small
business. Palgrave Macmillan.
Lee-Ross, D. and Lashley, C., 2010. Entrepreneurship and small business management in the
hospitality industry. Routledge.
Storey, D.J. and Greene, F.J., 2010. Small business and entrepreneurship. Financial
Times/Prentice Hall.
Burns, P., 2010. Entrepreneurship and Small Business: Start-up. Growth and Maturity.
Palgrave Macmillan.
Martin, B.C., McNally, J.J. and Kay, M.J., 2013. Examining the formation of human capital
in entrepreneurship: A meta-analysis of entrepreneurship education outcomes.
Journal of Business Venturing. 28(2). pp.211-224.
Acs, Z.J., Audretsch, D.B. and Lehmann, E.E., 2013. The knowledge spillover theory of
entrepreneurship. Small Business Economics. 41(4). pp.757-774.
Kirzner, I.M., 2015. Competition and entrepreneurship. University of Chicago press.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Baum, J.R., Frese, M. and Baron, R.A., 2014. The psychology of entrepreneurship.
Psychology Press.
Morris, M.H., Kuratko, D.F. and Covin, J.G., 2010. Corporate entrepreneurship &
innovation. Cengage Learning.
Bosma, N.S. and Levie, J., 2010. Global Entrepreneurship Monitor 2009 Executive Report.
Dacin, P.A., Dacin, M.T. and Matear, M., 2010. Social entrepreneurship: Why we don't need
a new theory and how we move forward from here. The academy of management
perspectives. 24(3).pp.37-57.
Defourny, J. and Nyssens, M., 2010. Conceptions of social enterprise and social
entrepreneurship in Europe and the United States: Convergences and divergences.
Journal of social entrepreneurship. 1(1). pp.32-53.
Online
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