Report: Unit 9 - Entrepreneurship and Small Business Management

This report delves into the multifaceted world of entrepreneurship and small business management. It begins by defining entrepreneurship and exploring various types of entrepreneurial ventures, including established companies, public and corporate sectors, and different typologies like small and large social ventures, high-growth firms, and survival firms. The report then analyzes the similarities and differences between these ventures, focusing on aspects like creative ideas, innovation, and brand creation. It examines the impact of small and medium businesses on the economy, highlighting their role in growth, local economies, and adaptability. Furthermore, the study explores how small businesses and start-ups contribute to the growth of the social economy, particularly in terms of employment creation, innovation, and promoting diversity. The report also analyzes the characteristic traits, skills, and motivational drivers that distinguish successful entrepreneurs from other business managers, and how background and experience can influence entrepreneurial success. The report concludes with a summary of the key findings and insights, offering a comprehensive overview of the subject matter.

Unit 9 - Entrepreneurship
and Small Business
Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Explaining different types of entrepreneurial.............................................................................3
Analysing entrepreneurial ventures similarities and their difference..........................................4
What are the impact of small and medium business on the economy .......................................6
Examining small business and their start-ups to growth of the social economy .......................7
Analysing the characteristic traits, skills and motivational drivers of successful entrepreneurs
that differentiate them from other business managers................................................................8
Difference between successful Entrepreneurs and Managers on the basis of traits, skills and
motivational drivers ..................................................................................................................9
Examine the entrepreneurial personality that reflect entrepreneurial motivation and mind-set.
...................................................................................................................................................10
Explaining background and experience can hinder or foster entrepreneurship.......................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneurship is defined as ability that varied peoples have and used to establish, manage
and sustain a venture, along with sort of uncertainties to make money. It can also describe as
procedure by which an individual or teams of individuals formed a business whether it is small
or large, within specific sector. While small business management, refers to procedure of
supporting & coordinating each aspect of a small venture, whether it’s organizing workers,
suppliers and other stakeholders. The current assignment will explain development, scope and
growth of varied range of entrepreneurial ventures. It will define how small businesses have an
effect on different degrees of economic and in a global context. Furthermore, the study will
justify characteristic traits, competences and motivational drivers of successful entrepreneurs,
supported by particular examples. Lastly, it will clarify experience and background influences'
businessman, both positively and negatively, by contrasting & comparing examples.
MAIN BODY
Explaining different types of entrepreneurial
Entrepreneurship: It is the process of creating a business to bear the risk with the aim of
making profits. It is also known as transforming world by solving all the problems.
Entrepreneurial venture: It refers to the organization that places opportunism and
innovation in the heart to create social and economic value.
Establish company- It defines those companies that are already established their ventures
within marketplace or sector by using key strengths and capabilities (Morris and et.al., 2018).
For example, TESCO is considered as establish firm because it has formed in effective manner.
It gains competitive edge by using good financial background and key resources that are valuable
for the brand in term of increasing its sales, productivity and profitability, which is quite
essential to do.
Public sector: it is the type of sectors that are owned by the government and that includes
public goods and government services that are related to law enforcement and health care.
Corporate sector: They are the part of economy that is invented by the companies. They
are the part of domestic company that doesn't include government, private households and non-
profit organisations.
Typology of Entrepreneurship-

Small size social venture: These are the business that gives the importance to social
good in their local specific key wording along with the aim of business success. Like Oak Cash
& Curry
Large size social venture: It is the type of social venture that serves their social goods
globally to increase the growth and success of the business. Company like British Red cross
(Ahmad and et.al., 2018)
High growth firms: They are the mainly 10% of the companies that contributes the half
percent of jobs in these sectors this are manufacturing and service industry. Example of high
growth firm is Monza that is suited in UK
Types of typologies of entrepreneurship-
Public sector entrepreneurship: It refers to the new area of enquiry that means the
formation of innovative idea. For instance British business bank is the public sector enterprise
(What is Public Sector Entrepreneurship, 2021).
Social enterprise: It is the type of enterprise that is also known as business that have
specific objective that have its own primary purpose. Example NATIONAL HEALTH SERVICE
(Yu and et.al., 2019). Social enterprise is also covers under entrepreneurial typology, which
define activities of those companies that have taken initiatives to improve living standards of
people and their health as well like above one.
Survival firms: These are the business that has started their company in n years are still
running and have reached to their nth anniversary. It is one of the most common form of
typology in which those companies who suffer a lot while operating their venture has been
included. Survival organizations face varied challenges to obtain benefits and to survive in
market.
Managed growth firms: This is the type of company which have managed its business as
compared to competitors. Such instance Monza is the managed growth firm of UK. In this
category of typology of entrepreneurship, that firm that has managed their venture activities by
taking several actions has been recognized.
Analysing entrepreneurial ventures similarities and their difference Creative idea: both public sector and social entrepreneurship bring new ideas to reduce
the social needs of the people.

 Constant innovation: All the ventures have this similarity in them they all want their
business grow and for that they have to create new and innovative idea. Creating a brand name: both survival firms and managed growth firms are succeeded
today by creating a good brand name that will result in good reputation and in the world
they are known by the people.
 Driving forces: All the enterprises perform the function that is related to driving force
that means power and energy that is in front of motion. They are the internal and external
forces that are performed within the organization (Lewellyn, 2018).
Differences between the ventures are:
Basis Public sector
entrepreneurship(
British business
bank)
Social
entrepreneurship
(NATIONAL
HEALTH
SERVICE)
Survival firms
(Funnel care)
Managed growth
firms(Monza)
Annual growth
rate
The growth rate
of the bank
increase 21
percent per year.
The average
growth rate of the
social enterprises
grow yearly at
932%
87.6% is the
growth rate for
the survival firms
Managed growth
firms have annual
growth rate
between 15 %-
45%
Managerial style The managerial
style that is used
by the public
sector
entrepreneurship
is relations-
oriented
leadership
National health
service
entrepreneurship
uses
transformational
managerial style
It uses
Consultative
managerial style
This firms uses
different type of
managerial styles
that are
Authoritative,
democratic and
Coercive.
Source of finance In this type of
entrepreneurship
the company uses
Source of finance
in this are angel
investors and
For the firms the
source of finance
is invoice
Managed growth
firms source of
finance is retained

personal
investment,
buyouts and
commercial bank
loans.
wealthy
individuals
factoring, bank
loans or merchant
earnings, equity
capital
Organizational
structure
They use
hierarchy
structure
These are
structured as
separate legal
entity that can
work for profit
and non-profit
motive
In this type of
firm divisional
structured is used
They use
corporate
organizational
structure for their
business
Managerial skills It includes team
working,
leadership and
decision making
skills.
Strategy planning
, creativity and
innovation
Team building,
problem solving
coaching and
motivation
Skills includes
communication
and technical
Economic motives The main motive
of the public
sector
entrepreneurship
are social security
and welfare
Social problems
and challenges,
personal
experience &
inspiration are the
economic motive
for the social
enterprises
The motive is to
provide good
product and
services to its
customers by
fulfilling their
needs
The economic
motive for the
firms are
increasing sales
and market share
What are the impact of small and medium business on the economy
Small business: These are the type of business that are privately owned corporations, sole
proprietorship and partnership that have less employee and annual revenue then the other

company. In this manufacturing and services sector investment can be done up to 1 crore and
turnover of five crore. For example like bakeries, candles and chocolates stores.
Micro business: They are small business that has less than 10 people with small amount of
capital. The investment done by this sector is more than one crore but less than ten crores with
the turnover of between five to fifty crores. Like amazon suppliers, home-based business.
Small and medium enterprise is known as the engines of development and economic growth.
Small and medium enterprise has great impact upon the economy as it is based on the society
that is free from poverty. The reason of this impact is that it not only provide different types of
opportunities to the different strata in the society but also to make sure that it will ensure flow of
money which occurs across different levels of the society.
Impacts on the economy are:
Growth: This is the type of business which will not stay small. For example the company like
Nike and Microsoft all have started working from the small business and from household. These
businesses grow their company by offering the jobs to their community. They also have the
great deal for innovation by bringing new ideas. They are more contact with the customers' and
the population. This is the best business to try innovative ideas on the faster basis by fulfilling
the needs of its customers (The impact of SMEs in the global economy. 2020.)
Keeping money local: the main motive of the small business is to keep their business local. That
means that they have to work with the fellow small business by supporting them so that they can
use local goods that will give benefit to the community.
Adaptability: small business is more adaptable at the change of economic climates. As the
demand of the consumer shifts and small business gets the line to make their client happy that
the larger companies cannot do. It will also result in making customer loyalty stronger than
compared to larger business (Alam and Alam, 2019 ). All the small business employs the people
from their own community who give them the opportunity to increase career mobility and
growth.

Economic contributions: It is the company which have less than 500 employees. It has impact on
the economy as it fulfils the needs of the people on the faster basis as compared to the large
business. Business is also responsible for creating the jobs for the individuals in the worlds. It
has impact on the economy as all the risk under this are managed by the owner who have highly
skilled at managing this risks
Examining small business and their start-ups to growth of the social economy
Social economy: It is the type of businesses that is formed by the rich variety of
organizations like social enterprises, mutual that have common features that is democratic
governance, voluntary and open membership (Importance of small business growth and startups,
2021).
Creation of employment: Every year small business creates majority of the jobs for individuals.
Creation of employment under the small business will result in high productivity sectors and
decent working conditions for the employees. This will also result in helping the society,
government and nation to reduce the employment problems that are faced by the country.
Innovation: This business are best and all positions to introduce new ideas. This is because in
this company the owner doesn’t have to take any approval from anyone else. For example the
individual have opened cosmetic shop to do the changes in the business they don't have taken
advice or permission from others. They can also covert their ideas into reality on the faster basis
in the comparison of large enterprises (Daud and Hanafi, 2018).

Leading the way diversity: The start-ups of the small enterprise are related to atmosphere and
promoting diversity in workplace. The small enterprises are leading they need change which will
result in addressing this imbalance. It is regarding providing supports that are related to diversity
resources, by bringing implementation experts and understanding the scope of diversity.
Meeting social responsibility: it is very important and main role of the small enterprises that is
creating a moral and greater productivity among the employees under the workplace. The
company have started following this social responsibility before long term when this corporate
social responsibility was that it helps the small enterprises in motivating, retaining and attracting
employees related to the activities that are performed under the enterprise. For example it results
in enhancing good brand reputation of the organization.
Local improvement: it is the type that gives benefit to the neighbourhood as compared to own
enterprises. These plays an important role in the company as it will result in growth and
innovation for the community as well (Clark, Newbert and Quigley, 2018). They also deal in
local improvement by giving providing the employment opportunities for the individuals who
have been not hired by the larger corporation is also important for the company as it will also
result in increasing brand awareness by creating positive reputation of the company
Analysing the characteristic traits, skills and motivational drivers of successful entrepreneurs that
differentiate them from other business managers
Entrepreneurial mind-set is the type of skills that help the individuals to identify the different
type of opportunities to success in variety of fields (Mamabolo, Kerrin and Kele, 2017). There
are two different type of mind set that is they are those people who have fixed mind-set things
that the qualities are in individuals from inborn and are not changeable. On the other hand
growth mind set believe that individual can develop the abilities by doing hard work and way of
commitment.
Importance of entrepreneurial mind-set are:
 It helps in developing confidence by giving more opportunities (Kottika and et.al.,
2020).
 By this managerial and attitude skills of the individual are easier to accomplish.
 It allows the individual to develop the skill which will make them feel happier at the time
of working in the workplace.
 It means that the individual is not afraid to take the risk and experiment.

 Entrepreneurial mind set will help the people to identify the problems and how to solve
this on faster basis.
Different characteristics of successful entrepreneurship are:
 Successful entrepreneur have the skills that is to develop and identify the problems by
giving solution. For example Steve jobs who are leader of Apple have not copied the
plans he has established new and innovative ideas for markets.
 They are more focused on making business model that will result in growth of the
company.
 Entrepreneur knows how to research about their markets by targeting its customers.
 They know how to make their customers by building strong product that will create
brand reputation which helps company to success quickly (Pavlykivska, Marushchak, and
Oleksandra, 2020). Zuber and Mohsin Issa are the successful entrepreneurship who has
made money by opening petrol stations.
Difference between successful Entrepreneurs and Managers on the basis of traits, skills and
motivational drivers
Basis Successful entrepreneurship Manager
Traits Creativity, vision, flexibility
are the traits of successful
entrepreneur (Obschonka,
Moeller and Goethner, 2019).
Traits of managers are they
focus on employee strength,
handles the pressure of
company, communicate
honestly with the employees.
Skills It includes creativity, ability to
listen, ambition and
confidence
Skills of manager are problem
solving, decision making,
mentoring, communication and
interpersonal skills.
Motivational drivers Main aim of this is to make
different in the world and
having satisfaction on the
work that is done by
Motivation for the managers is
independence, safety, fairness
and security.

entrepreneurship.
By the above table it has been seen that creativity skills are very important to become successful
entrepreneurship on the other hand manger need the skills that are related to communication and
problem solving. Entrepreneurship aim is create something different from the world and
managers have to be fair about its employees (Lechner and et.al., 2018.)
Examine the entrepreneurial personality that reflects entrepreneurial motivation and mind-set.
Entrepreneurial motivation is related to transforming individual to become a powerful
businessman that can create the opportunities for economic development.
The entrepreneurial personality is measured using Ocean personality model:
Openness: It is related to unusual ideas, art, variety of emption and emotion. These traits include
insight and imagination of people that have broad range of interest in work ( Orlova and et.al.,
2018).
In these traits people have focus to learn new things by enjoying new experience. In this the
lifestyle of people becomes creative as they have full focus on tracking new challenges by trying
new things.
Conscientiousness: Zuber and Mohsin Issa both have standard features that is high level of
thoughtfulness, goal-directed behaviours that have made then successful entrepreneurship among

the world. They spend their time in preparing important tasks by paying attention to all the
details and have set a proper schedule to implement all this tasks (Loh and Lau, 2019).
Extraversion: Entrepreneurship also has the feature of sociability, assertiveness, emotion and
talkativeness that are very important to gain social situations. They feel energetic when they
around the other people (The Benefits of Having An Entrepreneurial Mindset, 2021).
Agreeableness: This trait is related to personality dimensions that include kindness, trust that
shows the lifestyle of entrepreneurship. Both the brother are more competitive and even
manipulative that also contribute and distribute happiness among other people.
Neuroticism: This is defining the culture of the individuals that is related to emotions, sadness
being a successful business they have faced several problems that are related to mood awing,
irritability at the time of work.
Explaining background and experience can hinder or foster entrepreneurship
Issa brother are from very small village of Baruch Gujarat but they were born in Blackburn and
were working in the petrol station in greater Manchester. Later on they have gone to build the
chain of patrols stations in Europe then they have been the part of their company. They have
worked in the textile industry and then petrol station. Issa brother have good experience in the
field of petrol. When they have started their career in this petrol station both the brother have
started saving thee money. The increase came as the leading oil companies sold off or out of use
their High Street petrol outlets to dressed ore on production and satisfactory. Zuber Issa was
experienced about how to make strategy in the business and Mohsin run the business. The
company have reached high stages by the series of acquit ions. Entrepreneurship experience
refers to the understanding customer needs that are related to customers and validity.
CONCLUSION
By summing up above, discussion it has been concluded that small, large, high growth and
established organization are achieving their businesses goals and objectives, by choosing and
using appropriate approaches and techniques. It has been identified that each firm is quite
different from each other on the basis of varied basis, but still similar in term of taking initiatives
to reach at target market and gain competitive advantages, while operating within different
sectors in effective manner. The contribution of Micro and small size ventures has provided
positive outcomes in term of developed economies. They have taken effective and essential
initiatives, which are quite beneficial for local people in UK. Furthermore, from above analysis,

it has been determined that social economy has progressed even better, because start-up business
has supported in context of this success in varied terms. It has been summarized that many
persons in recent time has become successfully businessman as they learned from their own
mistakes.

REFERENCES
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