Entrepreneurship: Small Business Management Report Analysis

This report provides a comprehensive analysis of entrepreneurship and small business management. It begins by examining different types of entrepreneurial ventures, including social, scalable, and large company enterprises, and explores how they relate to the typology of entrepreneurship, such as lifestyle and growth enterprises. The report then delves into the similarities and differences between these ventures. A significant portion of the report is dedicated to interpreting and assessing data and statistics to illustrate the impact of micro and small businesses on the economy, highlighting their contribution to employment and GDP. Furthermore, it explains the importance of small businesses and start-ups to the growth of the social economy, outlining the four pillars of social economy. The report also identifies the characteristic traits and skills of successful entrepreneurs, differentiating them from other business managers, and assesses how entrepreneurial personality reflects motivation and mindset. Finally, the report examines how background and experience can either hinder or foster entrepreneurship, using relevant examples to support the analysis.

Entrepreneurship Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1: Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship.......................................................................................................3
P2: Explore the similarities and differences between entrepreneurial ventures..........................4
TASK 2............................................................................................................................................7
P3: Interpret and assess relevant data and statistics to illustrate how micro and small
businesses impact on the economy..............................................................................................7
P4: Explain the importance of small businesses and business start-ups to the growth of the
social economy.............................................................................................................................8
TASK 3............................................................................................................................................9
P5: Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers.............................................................................................9
P6: Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mindset................................................................................................................................11
TASK 4..........................................................................................................................................11
P7: Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship.........................................................................................................................11
CONCLUSION..............................................................................................................................12

INTRODUCTION
Entrepreneurship is the process to start, develop as well as manage the new organisational
venture by taking the suitable amount of risk in order to generate the high amount of profitability
as well as productivity. The entrepreneurial spirit to start something innovative is the ability that
help to generate the success and enhance the level of competition to gain the better and sound
position in the global competitive market (Bennett, 2014). An individual who take the initiative
to transform the problem into the solution and exploit the opportunity is known as entrepreneur.
Their efforts usually combine the labour, land as well as capital that together help to transform
the raw material into the desirable goods and services. This report cover topics like different
range of venture types that is considered by entrepreneurial. Access the impact of small scale
business on the economy and determine the essential aspect of the entrepreneurial mindset.
Further, determine the different environment that can hinder the entrepreneurship.
TASK 1
P1: Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship
Entrepreneur venture are basically the owner of the new start up that have strong vision
and make the firm scalable in order to earn they huge amount of profitability as well as
productivity. They haver the urge to explicitly gain the advantage of rapid growth as well as high
return by positively contributing for the functioning of communities. These venture create the
different type of job due to which the local authority promote the new venture as it helps to
participate in the economic growth of the business. Their distinct way to carry the business helps
them to effective plan out the things and execute them in the same manner with the objective to
reduce the chances of gaps. Thus, the entrepreneur venture pursuit the opportunity present in the
external environment by taking sustainable amount of risk and allocating the resources
effectively (Bogdanova, 2016). Thus, there are different type of ventures whose explanation is
determined below:
Social entrepreneur: The objective of social entrepreneurs is to create the innovative
product as well as service that can primarily satisfy the social needs and want. So irrespective of
thinking for the whole society these entrepreneurs thinks for the small section of the society that
are not formulate enough in comparison to the majorities. So their solely function is to offer the

better place and work for the social welfare rather than profit maximization. Additionally, it
include the non profit organisation that work for certain cause irrespective of thinking to
maximising the market share to gain the best possible profitability. For example, Oxfam is the
social enterprises that was started by the independent voluntary bodies who have the collective
objective to reduce work against the global poverty issue.
Scalable entrepreneur: This type of venture is quite different from the social welfare
because here the innovator have the vision to change the perceptive of whole world by
implementing the innovative actions. For this they require the support of different type of
investors which can be either venture capitalist or financial institution (Burns and Dewhurst,
2016). The support of these members assist the venture to rapidly expand in different
geographical area to gain immense success. For instance, Facebook and Instagram are the kinds
of scalable business that capitalises the risk and gain maximum return.
Large company entrepreneur: Here the entrepreneur with the help of extensive research
and advance technology offer the innovative product to the public that can help to meet the
demand of global people. Their scalable objective helps the firm to sustainably grow and expand
its operations effectively. This include the enterprise like Google, Microsoft and all the big brand
that satisfy the people and play significant role in their day to day lives.
Entrepreneur typology: There are different type of typology which are successfully
used in the various entrepreneur venture on the basis of the benefit derived from them.
Explanation of some of the typology are defined below:
Lifestyle enterprise: This typology include entrepreneurs that function with the objective
to enhance the lifestyle of people by generating certain level of income from business (Wu and
Huarng, 2015). It include the social entrepreneurial venture that makes significant effort in order
to enhance the lives of people and make significant effort to maintain the lives of people.
Growth enterprise: This typology is adopted by the scalable as well as large business as
they contribute to develop the worldwide image of company to gain the advantage of long term
sustainable development.
P2: Explore the similarities and differences between entrepreneurial ventures
Entrepreneur venture are of various types such as social, large as well as scalable
enterprise that exist and function with the unique objective which make it efficient enough to
function. But apart from it all the ventures are based upon the innovative concept that bind them

together and maintain the similarity amongst different forms. Explantation of the difference and
similarity between different type of venture are explained in the tabular form:
Similarities Social Enterprise Scalable
entrepreneur venture
Large company
entrepreneurial venture
Cover the need Social enterprise
objective is to cater the
needs of the
unprivileged group of
the society (Burns,
2016).
Their objective is to
develop the effective
strategies by which
they can expand the
operation in order to
accomplish the need
of different audience.
Large venture is
formulated with the
objective to analyse the
changing requirement of
the mass market and
launch the product as
well as different variants
accordingly.
Concentrate on larger
group of audience
This venture focuses
on large section of the
society because they
work for the social
cause by which they
make effort to cover
greater section within
specific time frame.
These venture have
strong vision to
change the
perspective of people
by which they aim to
cover large group on
the basis of their
idea.
These venture gets the
advantage of their
economies of scale in
order to expand the
services in different
platform.
Economic growth They focus on the
weaker section of
society and concentrate
on the untapped aspect
that strength the overall
economy.
Scalable enterprise
helps in the
economic growth by
engaging the large
number of audience
and attracting the
interest of external
stakeholders like
investors,
government and
They participate in the
economic growth by
offering employment
opportunity to the wide
number of audience.

global customers.
Difference Social Enterprise Scalable entrepreneur
venture
Large company
entrepreneurial
venture
Objective To carry forward the
business for social
welfare instead of
much concentrating on
the profitability is the
objective of social
enterprise
Their objective is to
operate and function
with the objective to
change the perspective
of people as well as
the way by which
operations are carried
out.
The prime objective of
large enterprise is to
expand the operation's
of business and
enhance the market
share (Chell and
Karataş-Özkan, 2014).
Motive to function They carry out the
business with the sole
motive to work for the
welfare of society and
mitigate the social
issue.
These are the
revolutionary leader
whose motive is to
cover the interest of
large section of
audience.
To gain global
dominance these
entrepreneur
understand the need of
people and bring the
vital change by offer
them the innovative
product to meet the
needs successfully.
Control It include the efforts of
voluntary people as
well as local
authorities that carry
out activities fro the
benefit of society.
It basically include the
efforts of single
individual or group of
two three members
that collectively think
upon the certain
Such business are
carried out by the
efforts of various
partners that function
together to gain the
wide market

objective. effectively.
TASK 2
P3: Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on the economy
Micro business are basically the subsets of small business in terms of the number of
employee and function. Although both are similar as they carry out the functioning in the smaller
section of the society but generally small business have wide scope and employee in comparison
to the micro business. Thus, apart from this both the venture function for the systematic
performance and contribute the economy by enhancing the employment opportunity that engages
the unskilled as well as skilled worker (Fayolle and Gailly, 2015). This basically raises the gross
domestic product of an economy for sustainable functioning.
Contribution of micro business in the economy of UK
Source: The role of Start-ups and Small Business in today's economy. 2019
On the basis of above graph it has been determined that the contribution of both small as
well as micro enterprise is immense in comparison to the large business that help the economy to
grow and expand its functioning (Essential Facts You Should Know about SMEs in the UK,

2019). The employment opportunity offered by small business and large business is 48% and
40% respectively. This depict that small and medium enterprises are making efforts to expand its
offering effectively.
Positive impact: Due to the large emergence of MSME is to enhance the employment
opportunity and bring the significant innovation in order to carry forward the functioning of
business effectively. This even helps the government to generate huge taxes that can be utilised
for the potential growth of an economy.
Negative impact: As the government impose the similar type of tax on the offerings of
both large and small scale business ( Fayolle, Liñán and Moriano, 2014). This leads large gap
between the different businesses where the rich tend to become more rich and affect the
functioning of small enterprises.
P4: Explain the importance of small businesses and business start-ups to the growth of the social
economy
Social economy refer to the mixed economy that include the role of both public as well
as private sector which is essential to carried out the economy effectively. This represent the rise
in market economy that involve the inclusive participation of the overall economy for the
systematic business functioning. This basically include the diverse venture like mutual
association, social enterprises, cooperative body that help to effectively share the common value
as well as features among the people (Karatas‐Ozkan and et. al., 2014). Hence, it involve the
wide participation of different range of SMEs to attain the chances of long term sustainable
development.
Four pillars of social economy
Mutual: This involve the non profit enterprises that function together in order to cater the
specific objective of firm.
Foundations: Within this pillar all the assets of an organisation are used for the general
interest in order to meet the social cause.
Charities: All the voluntary firm like NGO raise funds from the society or the interested
public in order to meet the purpose and perform the functioning durably.
Association: It refer to the integration of people that function together for the profitable
cause this lead to the innovation in order to satisfy the problem of the society.
Importance of small business or start ups on the growth of social economy

Offer adequate employment opportunity: Introduction of the vast small businesses helps
to reduce the unemployment issue by offering the adequate amount of employment opportunity
to the different section of society. This enriches the living standard of people due to which they
become independent and cover up the needs as well as requirement for the sustainable
development of an economy (Linton and Solomon, 2017).
Enhances the infrastructure of an economy: Generation of the new venture or strata up
help the economy to develop as they work for the growth and development. This help them to
generate the suitable amount of revenue that is further utilised for the effective operations of
firm. This fund in the form of taxes goes to the government which is then utilised to enhance the
infrastructure and form better trade relation.
TASK 3
P5: Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers
The presence of suitable characteristics, trait as well as skill of the entrepreneur assist
them to carry out the functioning of firm effectively. This let them to remain motivated and take
the entrepreneurial plunge effectively (Mazzarol, 2014). The two entrepreneur for which this
part is categorised includes the Bill gates as well as Steve Jobs that successively work in order to
gain the preferable position. The explanation of all necessary aspect is defined below:
Characteristic
Steven job was passionate enough due to which the entrepreneur successfully carry
forward their aim and make the necessary actions to covert their dream into reality. This even
helped them to cope up with the different hurdles to perceive better growth opportunity. Along
with that the founder of Apple that is Steve Jobs has the risk taking ability that pushed him to
attain the objective.
Skill and Trait
Time management and the self discipline is most efficient skill that helped Steve Hobs
to maintain the consistency and set the priorities in terms to attain the objective and manage the
functioning within stipulated duration. Along with that confidence is the essential trait that
realised the inner potential to build the most recognised brand in terms of technology that is
Apple.

Difference between entrepreneur as well as Business manager
Characteristics, skill and
traits
Entrepreneur Manager
Foresight vision These innovator have the
foresight vision due to which
they convert creative idea
into concept which acts as an
effective solution.
They relative remain more
focus to use advance
technique to serve the
market effectively.
Risk taking ability Entrepreneur are prone to
take the calculative risk due
to which they have the
potential to run business
process effectively (Obeng,
Robson and Haugh, 2014).
Manager are more focused
to run the traditional
business where the amount
of risk is low in comparison
to solely starting the new
venture.
P6: Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mindset
As the performance of the entrepreneur is based upon the unique concept based on which
they carry out the performance of business. Along with that different personalities of the
entrepreneur which vary from one to other show the motivation as well as mindset level. There
are different factors that help to identify the personality of the entrepreneur which are explained
below:
Openness: as per this element the personality of the entrepreneur is imaginative and remain
open to the external environment. They basically discover the knowledge associated with the
new opportunity of business. As both the entrepreneur Bill gate and Steve jobs have the same
personality which is advantages to carry out the business operation effectively.
Conscientiousness: It involve the certain attributes like goal oriented behaviour as well as
disciplined attribute that help to attain the potential objective. This is the efficient way that
potentially help the entrepreneur to make adequate plans as per the policies of firm (Sirelkhatim
and Gangi, 2015).

Extroversion: It involve traits like talkative, assertive as well as energetic attribute that
promote the individual to function effectively. This helps the entrepreneur to understand the
situation and cater the specific needs as well as expectation of an organisation. This is the useful
way to develop the business effectively and participate in the successive growth of firm.
Agreeableness: This reflect the kind and understanding nature of the entrepreneur that
help Steve jobs to understand the perspective of people and bring the revolution in terms of
security or graphics. Hence, such participative nature helps to develop preferable objective.
Neuroticism: it involve the negative feeling or trait that can pull back the entrepreneur
from gaining success. So traits like feeling of fear to take risk and jealously needs to be mitigated
to deal with the stressful situation and carry functioning smoothly.
TASK 4
P7: Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship
There are certain factors such as family and educational background that allow an
entrepreneur either to gain success or hinder its performance (Volery and Mazzarol, 2015). Thus,
the impact of different elements on the functioning of business and understanding of various
entrepreneurs are determined below:
Steve Jobs: Steve jobs was born in 1955 at California and became the co-founder of
Apple company. From his childhood only he was fond of using the technology due to which he
in the early age decided to become the engineer. Although he dropped out from the college to
pursuit his passion. He was the adopted son but always gained the motivation from his family
member in order to do something unique. The entrepreneur invested the time in learning the
graphical and utilised it while inventing iPhone. It became one of the most prestigious products
dan gained the attention of huge market.
Bill gates: The other entrepreneur is Bill Gates who build Microsoft which is widely used
software, so the creative thinking ability helped the entrepreneur to become of the most richest
person. He was born on 1955 in Seattle, USA and became the part of upper middle class family.
From the early age only Gates was ambitions and close top his mother who was the teacher and
use to motivate him to become the charismatic leader. Like, Steve Jobs he too drooped out from
the Harvard university with the objective to lead the dreams. He investment immense amount in

the computers and develop the Microsoft that helped the entrepreneur to gain dominance in the
large market.
CONCLUSION
From the above report it has been concluded that entrepreneur are the creative thinkers
that take the responsibility to convert innovative business idea into successful business plan to
meet certain needs of target market. An entrepreneur venture can be either small or social
depending upon the common purpose on the basis of which it has been established. But all these
venture or new start up conduct positive impact on the functioning of an economy. These
innovative entrepreneur are based upon the certain concept which different from other traditional
business because of the unique skill set and trait that help to gain the better position. Further,
there are certain hindrance on the path of an entrepreneur that can affect its plan and urge to run
the business. But they need to be determined enough in order to carry out different operation
effective and gain the vital position.