Entrepreneurship and Small Business Management Report: Key Aspects

This report on entrepreneurship and small business management provides a comprehensive overview of various entrepreneurial ventures, including small business entrepreneurship, scalable startups, large company ventures, and social entrepreneurship. It analyzes the similarities and differences between these ventures, focusing on their aims, product offerings, market share, opportunities, and returns. The report also examines the significant impact of small, medium, and large businesses on the economy, particularly in the UK, highlighting their contributions to employment, innovation, and economic growth. Furthermore, it delves into the characteristics, traits, and skills of successful entrepreneurs, exploring how their personalities reflect entrepreneurial motivation and mindset, and how these factors can either hinder or foster entrepreneurial endeavors. The report references various academic sources to support its findings and analysis.

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P 1 Different types of entrepreneurial ventures and their relation to the typology of
entrepreneurship..........................................................................................................................3
P 2 Similarities and difference between entrepreneurial venture................................................4
LO 2.................................................................................................................................................8
P 3 Impact of small business in the economy.............................................................................8
P 4 Importance of small business and start ups to the growth of the social economy..............10
LO 3...............................................................................................................................................12
P 5 Characteristics traits and skills of successful entrepreneur.................................................12
P 6 Aspect of the entrepreneurial personality reflect entrepreneurial motivation and mindset 13
LO 4 ..............................................................................................................................................15
P 7 Hinder or foster entrepreneurship.......................................................................................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
Entrepreneurship is the activity by which new businesses are setup if one is having
willingness to develop and manage such business by taking different risks. On the other side an
entrepreneur is a person who creates this new business with the help of innovative ideas and is
able to bear risk involved while starting the business (Liu and et.al., 2019). Entrepreneurs are
basically people who are as an innovator is having source of new ideas related to goods and
services to create different business procedure. Present report is based on different types of
entrepreneurial venture and relation to the typology of entrepreneurship and their similarities and
difference between the entrepreneurial ventures. Report on the economy assess will also show
the impact of small and micro business and for the same it interpret relevant data and statics. It
also explains the way small business and start ups are becoming important to the growth of the
social economy. Report also describes different skills and characteristics of a successful
entrepreneur that is making it differentiable from other business managers. At last report will
state the way entrepreneur's personality reflect entrepreneurial motivation and mindset with the
example of hinder and foster entrepreneurship.
LO 1
P1 Different types of entrepreneurial ventures and their relation to the typology of
entrepreneurship
Entrepreneurship means to start a new business with innovative idea with undertake the
risk in order to provide the services to the customers which other competitors are not able to
provide and to gain maximum profit.
Types of entrepreneurship
There are four types of Entrepreneurship:
Small business Entrepreneurship – Small business generally refers to the grocery stores,
hairdressers, consultants, travel agents, plumber, electricians and etc. they are the one who run
their business individually and hire local employee or from the family (Abbas, 2018). They start
their business from taking loan from the friends, family or small business loan as it does not
require large amount to start small business but barely profitable.
Scalable start up Entrepreneurship – This kind of entrepreneurship is generally high risk taking
as it is being start with new innovative ideas as compared to the society and market competitors.

With the innovative ideas they attract the investors to invest in their business to start. They hire
the best and bright employee and focus on the scale requires to open new ventures or to expand
rapidly.
Large company Entrepreneurship – There are companies which require large amount to start
their business and is having finite life cycle. These company grows by having sustaining
innovation and offering such product that is differentiable in market as customer taste changes
due to which competition is high in market. Company is able to create big brand image by
providing new products and services to the customers with different variant.
Social Entrepreneurship – Social entrepreneurship are having their focus on product creation so
that needs of the society can be fulfilled and their various problems can be solved. There major
goal is to make improvement in the society and make the world a better place to live in rather
than to just earn profit for the business(Amolo and Migiro, 2017). They are usually non profit
business.
Types of Entrepreneurial ventures are as follow:-
An entrepreneurial venture are usually meeting the needs of potential customers as they
are able to provide such product and services which are lacking in market. Business person is
developing the market by determining the need of the customers and with useful resources they
start their entrepreneurial ventures.
Start-up – With the innovative ideas individual entrepreneur initiate a start-up for the scalable
business model so that different services can be provided in the market where competitors are
not able to deliver such products and services.
Acquisition – Acquisition is act where a larger company purchase the most of the share of the
small company to have control in hand. An acquisition company generally have 50% ownership
in target market and is allow to make respective decisions on its own without any approval of the
acquired firm.
Franchise – Franchise venture is a strategy that many business adopt in order to expand its
business in market. Here a contract is being sign by one company with another organisation to
sell its products and services by using the name and image of firm.
Joint venture – Joint venture is an enterprise that is jointly taken by two parties by having an
agreement where they agree to joint their resources so that they are able to develop a new entity
in the market.

Public-Private partnership – This is the collaboration of the private sector and government
agency to deliver the goods and services the public (Amolo and Migiro, 2017).
P 2 Similarities and difference between entrepreneurial venture
Differences between three main entrepreneurial ventures
Social
Entrepreneurshi
p venture
Smaller profit
venture
Large scale
entrepreneurshi
p venture
Scalable
entrepreneurshi
p
Type This life style
organisation
comes under
franchise venture.
This smaller
profit also comes
under the start up.
This high growth
organisation
comes under the
public-private
venture and joint
ventures.
This type of
organisation
comes under the
acquisition
venture.
Aim This venture is set
up with the aim of
altering the
personal lifestyle
of the people
(Audretsch,
Lehmann and
Menter, 2016).
Aim of the small
profit venture is
to deliver the
small-scale
products at low
price.
These ventures
aim is to earn the
maximum profit.
Main aim of this
scalable
entrepreneurship
is to gain scalable
profit and expand
rapid business.
Products These ventures
deliver the
products which
are related to
daily life style of
the people, like
clothing’s,
Smaller profit
venture includes
grocery store,
bakeries, hair
dresser,
photographers,
This high growth
ventures includes
the large retail
supermarket,
manufacturing of
the car, big hotels
This provide all
kind of products
which have large
emend in the
market and can
help business to

footwear, beauty
products and
many more.
restaurants, etc. and many more. grow more.
Market share It has limited
market share
It has very limited
market share and
some it has no
market share by
the company.
Half of the market
share in the
market is by the
high growth
ventures.
It is being start
with low market
share and slowly
gain large share in
market.
Opportunities There are wide
opportunities in
the market for the
life style venture,
because its
products are used
in daily life style
of every people.
It has the large
opportunities but
only in domestic
level.
Market
opportunities for
the high growth
ventures are very
high and also
have the
opportunities to
share market
globally.
It also have
opportunities in
the market as the
it acquire the
share of small
business unit to
increase their
share in market.
Returns Its aim is to set up
business for
sustaining and
limited level of
profit.
As its names
shows it is very
small amount of
profit is being
gained.
As it describes
profit return of
this venture is
very high.
This have high
profit return as it
has control over
the small business
so all the profit
share of small
business related
to this (Brahma,
Tripathi and
Bijlani, 2018).
Similarities of entrepreneurial ventures on the basis of:

New ideas – All the ventures whether it is start up, joint venture, acquisition or public-private
partisanship all are established with the aim of the new ideas that provide the new services and
product to the customers. Like start up and joint venture are set with the new ideas to deliver that
services and products which are not delivered elsewhere in the market.
Being risky – All the ventures are undertake risk to start new business. Like start up and joint
ventures where two or more firms come together to start a new business, they do not have any
idea about the future whether the new businesses will be successful or not.
Established by open minded entrepreneurs – All type of the ventures, start up, franchise, joint
ventures all are the established by the open-minded entrepreneurs, who are willing to invest in
the new ventures without having any fear of losing in the market or any kind of risk.
Achieving greater success – For any business whether it is joint venture, start up, franchise start
and run the business with having similar aim of getting success and gaining the profit in the
market.
LO 2
P 3 Impact of small business in the economy
Small companies play significant role in the growth of the economy. In the UK economy,
at the start of 2018 small business account for 99.3% of all private sector business and 99.9%
were small or medium-size. Total employment in SMEs was 16.3 million of which 60% of all
private sector employment in UK. There are around 25-27 million small business in the UK that
account for 60% to 80% of all the UK jobs. Their annual combined turnover is 2.0 trillion, it is
52% of all the private sector turnover.

Illustration 1: Impact of small business in the economy
(Source : Impact of small business in the economy, 2019)
Impact of medium-sized businesses on economy
Medium size business is one of the major element that impact economy of UK. It
provides various opportunities for the economy such as bringing wealth, innovative products,
resources, competitive advantage etc. (Burns and Dewhurst, 2016).
In recent years medium-size industries have boost the productivity and contributed 47 %
of their revenue. These business need support from government to expand and develop their
business. It provides employment opportunities to the people to increase their standard of living.
Medium business is important in the economy to make financial independence, innovate
products.
These business adopt changes quickly and adjust their business environment according to
the change in external environment. They adopt new technologies in order to reduce production
cost and make products affordable to customers. Medium size business are now switching their

business to e-commerce and online transactions of goods and services. This change will make
their business operation easy and companies will reduce the cost of marketing.
Effect of large businesses on economy
Large business plays critical role in the increasing economic growth of the country. Large
business not only helps the domestic economy but also helps global economy by expanding their
business globally.
As large the corporation they produce more, will pay higher wages, enjoy the higher
profit and more successful in domestic as well as in international market and helps more in the
economic development (Liu and et.al., 2019).
The main advantage of the large company is that have the large scale businesses then the
vendors and suppliers provide the more discount to company so the company can undercut the
price of the final products as small business offer to the customers, and can maximize the profit
margin.
Impact of SMEs on International Economy
SMEs helps in increasing the competition in the market amongst the peer and also heat
up the market. New entrepreneur brings new ideas and skills that bring new technological change
in the global economy. SMEs play a role of the fuel in the economic growth of the country (Gu
and Qian, 2018).
In almost every country whether it is developed or developing SME has large proportion
of the business in that country over 90% of SME improves the job rate, even if the big country
cut down the jobs SME keep developing and increase and creating more jobs (Brahma, Tripathi
and Bijlani, 2018).
SME play a vital role and have strong connection with the hunger, poverty and economic
well being. It helps in developing the society by creating job for the every kind of people and
improve the society condition.
P 4 Importance of small business and start ups to the growth of the social economy
Social economy is set of business that are having rich diversity and can contributes to
society.
Importance of business start ups
 Increase in GDP – Business start-ups help to enhance the growth of the economy as it
increases the gross domestic product. Most of the countries support and encourage the

start-ups as it helps in economic growth of the country by increasing in the GDP(Gu,
Qian and Lu, 2018).
 Start-ups create more jobs – Start-ups are also creating employment and this is only the
reason government is encouraging the people to come up with new innovative ideas to
start a business. That is the reason day by day start-ups are increasing in number. It is
also creating jobs at domestic level and this is resulting in decrease of unemployment in
the country that helps the social economy by giving job in the country.
 Better living standard – It also helps in improving the life style and living standard of
the people as start-ups always come up with innovation and new technology in the
market. There are many start-ups which are working in rural areas for the development of
the community that results to increase in economy.
Importance of small business in growth of social economy
 Small business unit brings high rate of employment in the country at domestic level and
also helps in building good opportunity in rural area that helps to increase the
employment rate in the UK. House of common liberty showed that small medium
enterprises hired 14,424,000 people as employees in the UK last year.
 Small business enterprise is having higher growth rates in all three areas of innovation
namely product, process and wider innovation and this helps in bringing innovative
products and services in market.
 SME's could inject a possible £20 billion into the economy by the 2020 if they are
allowed to develop with full potential. They not only add value to the regional areas but
also help to boost competition in local market (Burns, 2016).
 Small firms usually boost the local market as they come up with innovation to bring
growth by having creativity ideas and taking it to the market where they serve.
 SMEs also contribute a great deal with the larger company as the they produce and
provide resources that larger companies are unable to [provide or complete.
 Such small companies are better to train employees and able to attract them to develop
innovative product that are targeted and fulfil the need of the local community.
As in this way small business and the start ups play great role in growth of the economy
of the UK and help to provide employment rates and increase growth value of the UK economy

by delivering the innovative products and services to the customer at domestic level and full fill
their need as larger companies not able to give (Scarborough, 2016).
LO 3
P 5 Characteristics traits and skills of successful entrepreneur
personal quality of a person is personal characteristics of an individual. These qualities
are what that make up one's personality and helps the individual to get in new situation and
handle and manage all things.
Characteristic of successful entrepreneurs
Successful entrepreneurs have many characteristic traits that make them successful in
their business these are as follow:
 Need for achievement - Successful Entrepreneurs have their needs that they want to
achieve anyhow and for this they work hard to achieve it.
 Self-confidence - A successful entrepreneur not have any doubt whether they can
succeed or not. They are confident for their knowledge and hard work that will make
their business succeed (Kuratko, Hornsby and Hayton, 2015).
 openness to change - Successful entrepreneurs are flexible and open minded that they
always ready to bring changes in their business strategies that can help to improve and
increase the sale they never hesitate to accept the new change in the business.
 Being Competitive - All the businesses have their competition. A successful
entrepreneur never afraid of their competition and always ready for the challenges in the
market (Brahma, Tripathi and Bijlani, 2018).
 Willingness to work hard – Hard work is the main characteristic that make an
entrepreneur successful. As they are the hard worker and accept all the work willingly
and complete their work to enhance their productivity.
 Never stop learning - Another characteristic that make an entrepreneur successful is
that they never give up on learning. They always try to learn skills that they can use in
their business to enhance the productivity and top attract the customers in order to
increase sales.
Skills for successful entrepreneurs

 Business skills – The main skill that make a entrepreneur successful is business skill.
Planning, organizing, management, way of behaving with others al are the skills that
make n entrepreneur successful.
 Technical skills – Rapidly changing technology in the business and also having the
knowledge about the technology is the big skill now days that can make business
successful. Like using computer to manage stock and for calculation, using updated
software and application that make business easy to manage (Gu and Qian, 2018).
 Communication skills – Entrepreneurship is the face to face interaction with the clients
and customers and suppliers, entrepreneur have to deal them and communicate with
them. Communication is the skill that can attract the people to buy more and invest more
that make successful entrepreneur.
 Human relations skills – With the help of the communication entrepreneur make strong
relation with customers, suppliers and investors that helps in their business and building
successful entrepreneur (Bernardino and Santos, 2018).
 Money management skills and knowledge – Successful entrepreneur have the money
management skills and knowledge that they manage all the inflow and out flow of the
money in their business and have skills to utilise that capital in effective way like to bring
resources or any other that can help their business to grow more and increase the
productivity.
P 6 Aspect of the entrepreneurial personality reflect entrepreneurial motivation and mindset
Mindset is collection of thoughts and beliefs that shapes the habits and behaviour of an
individual that affect what an individual feel, behave, and what they do. This mind set make
sense to the entrepreneur.
Wanting more than money - Some successful entrepreneurs not work only for to earn money;
they want something else from the business. Entrepreneurs work for their satisfaction and
happiness that give them real cherish. In that business’s entrepreneurs can work effectively
without any fear of losing the profit and can work effectively and innovatively (Sakhdari, 2016).
Not missing opportunities – A successful entrepreneur never miss out any opportunities. They
always grab the advantage of every opportunity at right time and work upon it and increase their
profit and make relation with customers and clients and also increase their production.