Entrepreneurship & Small Business Management: Detailed Analysis

This report provides a comprehensive analysis of entrepreneurship and small business management, focusing on different types of entrepreneurial ventures such as survival firms, lifestyle firms, managed growth firms, aggressive growth firms, public sector entrepreneurship, and social entrepreneurship. It explores the similarities and differences between various business ventures, including large and scalable ventures, small business and social ventures, and large and small business ventures. The report also examines the impact of micro and small businesses on the UK economy, highlighting their contribution to GDP and employment. Furthermore, it discusses the skills and characteristics of successful entrepreneurs, emphasizing the interdependency between personality, motivation, and mindset. The analysis considers how background and experience can either foster or hinder entrepreneurship, ultimately concluding with key insights into the dynamics of entrepreneurship and its significance for economic growth and social well-being.

Entrepreneurship and Small
Business Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Different Types and typology of entrepreneurship......................................................................3
Similarities and differences between different types of Business entrepreneurial ventures........5
Impact of the micro business and small business on the economy..............................................6
Importance of small businesses and business start-ups to the growth of the social economy.....8
The skills and characteristic traits behind a successful entrepreneur that distinguish them from
other business organization managers. .......................................................................................9
Interdependency in between the entrepreneur personality and entrepreneurial motivation and
mindset. .....................................................................................................................................11
Analysis of background and experience plays role in fostering or hindering the
entrepreneurship.........................................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Entrepreneurship depicts the ability to develop and manage business enterprise in order to
make a profit. This vision can be defined on the basis of discovery along with all risk
uncertainties within a competitive marketplace globally. This research focuses upon the types of
entrepreneurial ventures and their relationship with the typology of the entrepreneurship.
However, All the ventures have their own specification based on their own category and sectors,
they are equally important for the growth to the social economy. Furthermore, this report
emphasizes on how the skills, mindset and personality of successful entrepreneurs plays vital
role towards the success of the business. Moreover, to study the psychology behind the business
success, the strategies and experience skills of the successful entrepreneurs are being discussed
in the report.
Different Types and typology of entrepreneurship
Entrepreneurship refers to the process of starting business or building existing one. It is
created to develop and organize the business with the goal of gaining profit and making
meaningful impact on the society (Dimitriadis and et.al, 2017). An entrepreneur is a person with
the ability and desire to establish the business or entrepreneurial ventures. Following are the
types of entrepreneurial ventures.1. Survival Firms: The main purpose of this entrepreneur venture is to survive in the market
and meet the financial objectives of the company. The long term goal of such
entrepreneur venture is to stay in the business.2. Life Style Firms: Entrepreneurs create these firms around the lifestyle of their own. Such
entrepreneurship is motivated by the survival and need to maintain the way of life. Long
hours of work is invested by the owner in the venture (Mouraviev and Avramenko,
2020).3. Managed Growth Firms: In managed Growth firms, Entrepreneur seeks to manage the
growth and development of the business in effective and efficient manner. Managed
growth firms are focused on the organisational goal.

4. Aggressive growth Firm: It refers to the firms with the motive of rapid growth in the
market. Such entrepreneurship is created to reach the top-level of the market. Aggressive
growth firms have innovative and risk taking approach to achieve its goal.5. Public Sector Entrepreneurship: Public Sector Entrepreneurship can be defined as
business of innovative public policies that has greater impact on the economy of the
country. These are large companies majorly owned by the government.
6. Social Entrepreneurship: Entrepreneurship with the motive of social well-being are
known as social entrepreneurship. This kind of business focus on the social mission with
the image of the business, like discipline, innovation and determination. A social
entrepreneur is a path breaker with powerful visionary, innovation and real world
problem solving creativity (Kickul and et.al, 2017).
Different typology of entrepreneurship
Craftsman entrepreneur / Independent entrepreneur: they are type of entrepreneurs who comes
from a blue collared background. Such type of entrepreneurs grow up in task oriented
environment.
Opportunistic entrepreneur: these are entrepreneurs who are prepared for any kind of opportunity
and find opportunity to be exploited and are ready to work hard
Growth oriented entrepreneur: such entrepreneurs have different goal and attitude towards their
venture and known their outset which they want to focus upon to grow their business.
Administrative entrepreneur: activities of such kind of entrepreneurs focuses around
administrative techniques and functions.
1. Small business Entrepreneurship : SME refers to the local small business start-up. It
does not include chains or departments. Small business entrepreneurship is a single
location business such as restaurant, retail shop, and store to sell handmade products
(Yunus, 2017). This type of business are started to meet the daily requirement of the
owner and their family members. Small business entrepreneurship need less amount of
capital and it requires less time to implement the plan into work. Such types of business
are easy to operate. Out of total business in United Kingdom above 80% are Small

business entrepreneurship. Such firms are survival firms that do not have intension to
grow more or to trade outside the domestic boundaries of the country.2. Large company Entrepreneurship : It refers to the new opportunities at large scale or
advancement of ideas within existing entrepreneurship. Large business entrepreneurship
are generally already established company that are expanded with new opportunities.
Tesla is a good example of large company entrepreneurship. Tesla is an international
electric vehicle and clean energy company. Large companies need more amount of
capitals and employees to operate the business. Cost of the large business are involved in
the manufacturing and selling the products. It takes huge amount of cost in large business
that is collected with the help of investors and other funding sources. Aggressive firms
and public sector entrepreneurship is included in such forms as large firms are in hurry to
grow more and their hares are hold by the public also.
3. Scalable Start-up Entrepreneurship : This kind of entrepreneurship refers to the companies
that manages to have potential of increasing the revenue while keeping the cost of the
organisation low (Wach, 2020). Main organisational goal of this business is to gain profits.
Such type of business are majorly concerned with the increase of the profit margin. This
entrepreneurship does not have intension to satisfy the customer by quality of the product or
services. Managed growth firms comes under scalable start-up entrepreneurship as they work
with proper management to increase the efficiency and profit in the business.
4. Buyer Entrepreneurship : It refers to the entrepreneur that uses their own wealth to run
the business. Buyers often focus on the developing a business that already has a solid
foundation rather than starting a business with ground level.
Relationship between the different types of entrepreneurial ventures and typology of
entrepreneurship
 Small business Entrepreneurship: A person who sets up Micro or small business enterprise
ventures can belong to or classified as independent / craftsman entrepreneur because micro-
enterprises are often established and managed by the owner with his own capital (one man
business) and growth is slow/minimal initially.

 Large company Entrepreneurship: A person who runs a large company or enterprise can
belong to Opportunistic entrepreneur as such kind of entrepreneurs do not leave any kind of
opportunity to be exploited for achievement of desired goals and objectives.
 Scalable Start-up Entrepreneurship: A person who runs a scalable start-up or enterprise can
belong to growth- oriented entrepreneur as such kind of entrepreneurs know their outset
which they want to focus upon to grow their business.
 Buyer Entrepreneurship: A buyer entrepreneur can belong to Administrative entrepreneur
focuses around administrative techniques and functions to meet buyers needs.
Different types of Business entrepreneurial ventures
Similarities between business entrepreneurial Ventures keeps them connected. However,
Differences are the reason of distributing various types of ventures. Following are some
similarities and differences between business entrepreneurship.
Large and Scalable Entrepreneur Venture
Similarities
 Both types of business ventures are established by the entrepreneur.
 The product and services provided by both business are creative and different from
existing products in the market.
 Both kind of business have necessary resource in order to adopt the changes easily within
the business environment. Achieving long term goal is the main purpose of both organisations. All the efforts by
both organisations are done to achieve the long term goals.
Differences
 Large business ventures have planned to achieve any goal (Nielsen and Lund, 2018).
While Scalable venture does not have always planned or work according to the plan.
 The need of resources and finance is high in the large business organisation. On the other
hand scalable business does not rely on huge finance use innovation to develop the
growth of the business.

 Scalable business attract the investor with their innovative and effective product and
services. However, large business ventures attract their inverters though their huge
production and growth of the business.
Small business ventures and Social entrepreneur venture
Similarities
 General target achievement is goal of the both entrepreneur ventures.
 Both business focus on developing new techniques in order to meet customer needs.
 Survival in the market is the ultimate goal for the business with the help of proper growth
and development in the business. Both entrepreneurship influences the society in various terms.
Differences
 The main purpose of Social ventures is to serve the society with their business activities
while small business targets to gain profits in order to meet their family requirements.
 Outcomes of SME can be measured in wealth or monetary form but Social ventures
outcomes can be seen through development in the society.
Large and small business ventures
Similarities
 Motivation of both business is to gain profit by providing goods and services to the
customer. Both business are focused into survival and the growth of the business in the market.
Differences
 Small business have small area of providing services but large business ventures are
expanded to the wide area of serving.
 Cost of operating in both business have major differences SME does not need high
amount of operating cost while large business cannot run on low operating cost.
 Small companies focuses on the local market but large business ventures have big
market.
 Large business have big scope and more strategies to perform task while small
entrepreneurship have small scope and fewer strategies to perform the task of the
business.

Impact of the micro business and small business on the economy of UK
Micro Business : It refers to the type of small business that employees less than 10
people in the business (Simonova and et.al, 2017). According to the Office for National Statistics
and Department for Business, A micro business has turnover less than £632000 and assets less
than £316000 (GOV.UK, 2021). Micro business can send only balance sheet with less
information to the Company House. Examples of micro business are Mantons cards.
Small business : It refers to the company having turnover of £10.2 million or fewer and
balance sheet less than £5.1 million along with 50 or fewer employees in the business. Small
business can only send abridge accounts if all company members are agreed to it (GOV.UK,
2021). Example of Small business is Davison Canners.
The impact of the micro business and small business is very great on the UK's economy.
These business have the largest number of population in the United Kingdom. The income
generated by these business is contributed to the Gross Domestic Product of the country. This
leads to the contribution of Micro business and Small business to the economy of the United
Kingdom. These business have a great impact on the economy of the United Kingdom as
majority of employment is created by the small and medium sized business. Total employment
created by SME was 16.3 million that is 61% of the total employment in UK (UK Small
Business Statistics, 2021). Economy of UK is affected at large scale by the small business in the
country that shows the contribution of the SME in the UK development. The reduction in the
small business due to the impact of Covid reduced the growth speed of the economy of the
United Kingdom.

Figure 1 (Source : BEIS, Business Population Estimates, 2020, Table 1)
Research from Business population Estimates shows that there are over 5.7 million
business in the UK out of which 96 % are micro business and less than 4% are small business as
shown in figure 1. This shows that the economy of the UK is majorly depended on the small size
and micro business.
Micro business and SME has contributed to the economy in many ways such as
employment, social impact, growth of the country and increase in the GDP. Major part of GDP is
being hold by micro and small business ventures. Micro companies like Mantons Cards
providing best greeting cards in the country has a great impact on the economy of the country
(Gherhes, Vorley and Brooks, 2020). Company produce card for the customer that lead to the
self-reliance of the economy. Mantons Card uses eco-friendly production in respect to the social
responsibility. Small business like Davison Canners produce food products for the domestic area.
Manufacturing and agricultural procedures are done by the company helps in the increase of the
employment. Employment within the country has good impact on the economy of the United
Kingdom.

Challenges faced by the Small business in UK
Stretched IT resource : A Stretched IT team affects may small business, some businesses
do not have Information technology that lead to the increase of various challenges that a small
business has to face. The adoption of the technology in the business is increasing rapidly as the
customer are more likely to prefer digital transaction. Small business that do not have such
facility or technology have to face the challenge related to the loss of customers in the
organization .
Lack of budget making improvements: budget is generally not prepared by the small
business as the process in the budget making process lead to the increase in the cost and that is te
major reason small business do not prepare the budget for the business it leads to increase in
more cost in the business as preparing the budget for small business do not take much cost and
small business have to face various challenges related to the preparation of the budget.
Importance of small businesses and business start-ups to the growth of the social economy
Social economy refers to the factors that include situations in which people learn, live,
work and play. Small business are easy to start and minimum resources are helpful to start the
business. Small business have potential to start the company from the ground level. Small
business contributes to the local economy growth as the business is at local area and it represents
the local preferences of the people. According to the Business statistic 96% of the business i the
United Kingdom are Small business entrepreneurship (Ward, 2021). Following are the
importance of the small business and start-ups to the growth of the social economy: Creation of Employment: SME creates employment in the local area of establishment. It
provides opportunities to the people seeking for employment. Small business contributes
a lot to the economic growth of the country in terms of employment. Small companies are
capable of providing quality jobs because of less number of employees. There were 6
million SME in the United Kingdom in 2020 which was over 99% of all business
(Business population estimates 2020, 2020) Local Development: Contribution to the local economy leads to the development of the
area. Generating income by employment increase the living slandered of the society. This
leads to the development of the domestic area of the entrepreneurship (Okamuro,

Nishimura and Kitagawa, 2019). SME also contribute to the growth of the economy by
providing services, products and tax to the economy. Such small steps towards the
growth of the economy leads to the big difference in the development. SME also helps
the society to create better environment as social responsibilities are taken by the
companies in order to gain interest of the public, business develops various
environmental regulation. Such approach improves the environment living of the
surroundings. Fast Adaptation: Small business are capable of fast adaption to the new situation with its
flexibility feature. SME are easy to adopt change as they are small and adoption at one
location made a lot faster for the business (Yunus, 2017). Digital gap are smaller in such
business and creating new normal is a smooth process for business as low number of
employees takes less time to understand and adopt the change in the business. This ability
of SME creates huge impact on the growth of the economy socially and technologically.
Development in business is quicker than compared to the larger business
entrepreneurship. Small area of recognition and business, flexibility and low number of
employees plays an important role in making fast adaptation.
 Encouraging Entrepreneurship: Small Business Entrepreneurship has been encouraging
many other entrepreneurs from generations. People are influenced by the business idea,
and they adopt the same to generate their income (Dimitriadis and et.al, 2017). This lead
to increase in the amount of SME in the country and help in the contribution to the
economy of the country. This type of business are easy to start so the impact of the idea is
huge on the society. It is also the reason for SME having 99% of the all business in the
United Kingdom.
The characteristics required for successful entrepreneurs
The characteristics of an entrepreneur are major factors behind the success or failure of
business venture. An entrepreneur should have few of main skills for the attainment of
business plan as well as the successful execution of that plan (Lyons, Lyons and Samson,
2021). These characteristics can be listed as:
 Creativity: Creativity always looks after something new and unique. The desire of being
different and new on its own have a very huge impact on the success of any business.
Without any creativity, invention or innovation can never be imagined. Idea behind the

innovation is a key element of any startup. Entrepreneurs are generally full of new ideas
as well as the new solutions of old problems. However, it is not like every idea will be a
hit but at-least the experience behind that idea will lead towards the gold. As an example
Phillip green is one of the best example of innovative entrepreneur, he started with the
shoe import business but with the creativity as well as hands on training he started to
import shoe as well as many more products such as clothes etc. now he is listed in one of
the most successful importer in UK. This skill is required to become successful
entrepreneur because an entrepreneur is making new and innovative products. They are
generating new and creative ideas and making new products so that need of people can be
satisfied. When a person thinks creative ideas then they are successful because people
want new and innovative products. So, an entrepreneur should have creative skills so that
they can complete task and accomplish goals and objectives. Creativity powers
innovation, establishes new perspective and solutions to problems which is beneficial for
entrepreneur.
 Professionalism: The behavior and professional mannerism takes an entrepreneur on a
very next level in terms to be successful. A good behavior with employees and client
always results in a long term relationship, reliability and the loyalty. A good entrepreneur
always keep the employees positively motivated. However, professionalism over the limit
hampers the good relationship in between the employees as well as the clients because it
leads towards the lack of emotional bond in between them. As an example, Richard
Branson, CEO of the virgin group is always known because of his professionalism as
well as the motivating behavior towards his team. This behavior leads him towards the
better image in front of his employee as well as in the industry.
 Planning and knowledge: It is the most important milestone to run a show. Planning is a
strategy which adds up the resources, structure and a path to process that results in goal
achievement. For the various situations or can be said a crisis can be overcome with a
plan. Planning always leads towards the guild lines to achieve minimum risk. However,
planning without proper statistics can not be that beneficial for a business. Knowledge
behind the planning is also equally important in business success. The knowledge of
market, recent trends, strength as well as the weaknesses of own business can result in a
healthy business organization Such as David and Simon Reuben (Reuben brothers)