Entrepreneurship and Small Business Management: Growth and Economy

This report provides a detailed analysis of entrepreneurship and small business management, examining different types of entrepreneurial ventures and their relationship with the typology of entrepreneurship. It highlights the differences and similarities between various types of entrepreneurship and assesses the impact of micro and small businesses on the economy, emphasizing their importance in the social economy. The report also delves into the characteristics of a successful entrepreneur, exploring the aspects of entrepreneurial personality that reflect motivation and mindset, and discussing how personal background can either hinder or foster entrepreneurial endeavors. It covers topics such as survival ventures, lifestyle ventures, managed growth ventures, and different entrepreneurial types like skeptical and researcher entrepreneurs, further analyzing the role of small business organizations in social welfare, employment, and economic development.

ENTREPRENUERSHIP
AND SMALL
BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1 ...........................................................................................................................................3
P1 Examining the different types of entrepreneurial ventures and how they are related with
typology of entrepreneurship .................................................................................................3
P2 What are difference and similarities between types of entrepreneurship..........................4
P3 Impact micro and small business have on the economy...................................................5
P4 Importance of small business organisations towards social economy .............................6
PART 2 ...........................................................................................................................................7
P5 Characteristics of a successful entrepreneur.....................................................................7
P6 What are the aspects of entrepreneurial personality that reflects motivation and mindset8
P7 Personal background can be hinder and foster on entrepreneurs....................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship is the process of setting up own business and evaluate the potential of
business in market place. It involves to provide employment to the unemployment peoples by
generating and small business. These enterprises and small business are helpful in the
development and growth of any society. This report also involves about risk and uncertainties
faces by the managers when they implement any business. Entrepreneurship is the heart of every
business organisation and it provides effectiveness and durability to any organisation
(Ackermann, 2012). The report also refers about the roles and functions of entrepreneurship in
small business management therefore achieving success and growth. Every business organisation
must be large small or medium just to be survive.
Further more, the report also based upon the innovative and creative thinking of
entrepreneurs in their business and how they produce their products and services towards getting
customers attraction. Along with this, there so many types of small business, such as – micro
and macro small business organisations and how they impact on local, regional and international
markets and the economy of country.
PART 1
P1 Examining the different types of entrepreneurial ventures and how they are related with
typology of entrepreneurship
Entrepreneurship is the term that includes something different. Innovate and effective
thinking of entrepreneurs make them different from others. It is consider with ability and
willingness of managers in order to develop their business organisation. Entrepreneurship plays
an very crucial role in success and growth of small and large businesses. An entrepreneur take
care of the whole activities of business an create policies accordingly (Bridge and O'Neill, 2012).
Along with this, there are different types of entrepreneurship ventures, such are as follows: - Survival ventures – Survival ventures are those which provides basic substance to the
entrepreneur and his/her family. It involves small business enterprises, such as grocery,
consultants, travel agents, plumbers, carpenters, electricians etc. These kind of small
business are not register by any authority and do not have any premises with society
(Carraher and Paridon, 2015). These business are regulate in order to fulfil daily basic
needs of entrepreneurs.

 Lifestyle ventures – It involves small start-ups, that are newly generated enterprises by
the entrepreneur with the idea of something different. Lifestyle ventures involves
scaleable starts ups what silicon valley entrepreneurs and their venture investors do. In
that kind of entrepreneurship, managers have new and innovate ideas by which they want
to change the vision of overall world. They also attracts investors by their thoughts and
views, and they want to hire best and the brightest employee for their business
organisation.
 Managed growth ventures – These ventures focus on growth and development of their
business. For that, their entrepreneurs are focus on developing and creating ideas in order
too generate their business.
Typology of entrepreneurship – Different types of entrepreneurs are as follows: - The Sceptical entrepreneur – In that kind of entrepreneurs, managers are sees the
success of others and implementing same methods in its organisations. Entrepreneurs are
believe on stars and luck to run their business. This is the sarcastic type of entrepreneur
that have excuse of every problems and issues (Dennis Jr, 2011). Sceptical entrepreneurs
are do not focuses on success and growth of their business organisation.
 The researcher entrepreneur – this kind of entrepreneur always focus on research and
conclusions. He loves to learn all the times and developing own mind strategics.
According to their research and findings, these entrepreneurs have probable solutions of
all problems and issues. Along with this, managers think that research is the key of
success so as they tries to identifies the effective and accurate manner of accomplishes
success and growth.
P2 What are difference and similarities between types of entrepreneurship
In capital market, there are two types of entrepreneur, small or social business
organisations and large business organisations. Difference between small and large business
organisations is as follow: -Small business organisation are always focuses on social welfare in
order to provide them quality products and services. They are implement to fulfil the all
necessary requirements of peoples and they prefer to supplying products in the low area of the
society therefore they can also develop their living standards. Small scale business enterprise are
run upon public faith and their trust by providing them quality products and services (Henrekson
and Sanandaji, 2014). Meanwhile that kinds of enterprises are not working with the aim of

earning profits. Social or small business enterprises are creation of tangible social values that
seeks with economic values, this emerging is the primary mission of these organisations. These
entrepreneurship ventures are passion centric in order to produce innovative products and
services for local communities. Apart form this, large scale business organisations are prefer to
earn profit by providing quality products to the peoples. So as these are organisations are focuses
on their business and financial gaols towards achieving success. It involves the interest of
shareholders by pitiless chasing accomplishing profitability and growth. Large business
organisations also supply beliefs and values to their customers by good quality products and
competitive pricing offers so as customers can easily attracts towards their services.
There are some similarities between both organisations, such as – social and businesses
organizations, both are focused on providing quality products to the society. Both wants to work
for the development and betterment of the societies and their customers in order to develop their
living standards and lifestyles. Social and business organisations wants to change the overview
of communities and make it as a modern society. Along with this, both enterprises wants to fulfil
the needs and demands of their customers by providing them effective and quality products
(Luiz, 2011). At last, both organisations seeks to develop their images among society so as more
peoples can attract with them.
The overview of public, private and medium ventures are as follow - Public ventures – Public ventures are created with the aim of providing quality services
and products to peoples and it that kind of ventures are come under government or semi
government. Private ventures – Private business ventures are establishes with the aim of earning profit
and maximising growth of their companies. It focuses on attracting many customers and
clients.
 Social ventures – Social ventures are those which only implements for social welfare and
developing growth for low section of the society.
P3 Impact micro and small business have on the economy
There is a huge impact of micro and small-business sectors on economy of the country.
These are some factors small business organisations that impact on the economy of the country,
such as follows -

 Improves economical growth – Micro and small business environment are helpful in
developing economic growth of the company. Small business helps in improving the
living standard of people by providing them employment opportunities. In these days,
there are so many start ups are open so as they need well qualified peoples along with this
they generate job opportunities for peoples . And small business organisation are ready to
provide products and services at very efficient rates. These organisations are able to
retain new talent who are able to produce new innovations and implement new solutions
to presenting ideas and views. Small business organisation are also helpful for large
business organisation by providing them raw materials and many other business
functions. Future growth – small-business organisations are enable to achieve future growth and
development to the employees. Because these organisations needs hard working and
talented peoples so as it is a good platform of starting a carrier of individual's. Along with
this, these organisations are not stay always small, their managers have innovative and
creative ideas so as they are able to achieve their goals and objectives (Mullins, 2013).
Nike and puma, both was started their businesses as a start up but now they are the most
demand able product in whole world. Apart from this, by providing future growth and
development of micro business, they are also increases the future growth of economy.
 Contribution – Small business organisations are contributes in environmental
development. With the idea of something different, their managers forces the utilization
of available resources. It also prefer to the sue to green products in order to welfare of the
environment. Small businesses also contribute in the development of the lower section of
the society by supplying them quality products and services.
P4 Importance of small business organisations towards social economy
Small businesses organisation are helpful in order to the development of society and their
peoples. They plays an important role in welfare in small section area of the society by giving
them all facilities. Importance of small business organisation are as follows: - Bunch of innovations – As along, small business organisations have various kind of
opportunities and innovations. By applying they can easily produce effective and efficient
products for them so as they can easily in proves their living standards. Small business
organisations are enable their relations with customers and know their demands and

needs , so as they can produce accordingly. These enterprises are the best path of starting
of carrier because an individual can easily learns managerial skills and more by working
with start ups. They regulate with the aim of generate something new and different for
customers. They keep ability to change the overall world with their ideas and thoughts.
And they actually do the same, to providing good quality products and services at very
cheap prices because they focuses on reduce wastage and increasing manufacturing. Providing employment – As a new business, small start ups have a lot of job
opportunities for the youth and women. Some organisation also gives facilities to work
from home to women so as they can gives chance to women for their development. Along
with a lot of job opportunities or an new business, their managers are ready to high
salaried packages to the peoples so as they can easily persuade to do jobs in start ups
(Phillips and Pittman, 2014). If all the peoples of society get job so as the problem of
poverty and unemployment also reduces. Due to this, small business organisation also
helps in improving the economy rate. Supplying quality products – Small business
organisation are enable to provide quality products and services to their customers and
client so as they can trust upon these organisations. Because still the customers are not
enable tom trust upon these organisations, they are not sell their products among society
and GDP (growth domestic product) of the country. If the economy rate of the country is
develop so as the living standard and values of peoples are also extend.
 Supplying quality products – Small business organisation are enable to provide quality
products and services to their customers and client so as they can trust upon these
organisations. Because still the customers are not enable tom trust upon these
organisations, they are not sell their products among society (Turró, Urbano and Peris-
Ortiz, 2014).
PART 2
P5 Characteristics of a successful entrepreneur
A successful entrepreneur should have to dedicated about his missions and visions so as
he can able to achieve organisational goals and objectives. There are certain characteristic of
traits and personality of an successful entrepreneur, Such as follow: -

 Strong network abilities – an entrepreneur is able to have a strong networks so as he can
promote his business and products. Strong network abilities are the key part of every
successful business and his manager as well. Successful entrepreneur knows very well
that how to develop his network and relations, because it gives them a wide range of
customers and clients (Schaper and et. al., 2014). It develops healthy relations with
customers in order to increases sales. To be an entrepreneur he should able to complete
the needs and requirements of customers, and he must have extreme dedication towards
developing products and services. Adaptability and flexibility – adaptability and flexibility are the most essential skills of
an successful entrepreneur. It refers about to face any situations and challenges that effect
th overall situations of business organisations. If a business person is ready to face off all
negative circumstances of environment, so then he is able to stands for a long period of
time in capital market. Meanwhile, being a successful business person it is necessary to
show dedication for ideas and thoughts. Successful entrepreneurs also have to know what
to be adapt and when to be flexible, it also easier the decision making process of the
company so as they can maximise their product's efficiency (Sciascia and et. al., 2012).
Being able to willing for plans and strategics, helps in top develops a successful business
entrepreneur. He should able to flexible in order tot face all conditions and a good
understanding of market norms. With the helps of this, entrepreneurs are able to develop
their policies in order to achieve success and growth.
 Risk taker – If an entrepreneur is able to take risk so as he is the capable and successful
business entrepreneur. Because it is essential to take risk and uncertainties, they enhance
the growth and development of business organisations. An entrepreneur have to develops
confidence among himself so as he can able to face risk and upcoming challenges
therefore it increase market growth of the company. The confidence level of business
person helps to taking effective decisions for a long term period and generate determine
ideas or thoughts as well.
P6 What are the aspects of entrepreneurial personality that reflects motivation and mindset
There are some factors that affect entrepreneurial performance in an business
organisation Due to these factors, sometime small business organisations are faces the chances of

reducing marketing growth and their sustainability. The factors that affecting performance of an
entrepreneur are as follows: - Knowledge – An entrepreneur must have the knowledge about all external and internal
factors of market, so as he can easily analyse the performance of employees. If
entrepreneur have good knowledge about market conditions so as he can able to develop
strategics and policies accordingly. Effective and impressive strategics helps in to to
achieve organisation goals and objectives (Seymour, 2012). Apart form this, he also has
knowledge about ethics and law so as policies and strategics can be developed
accordingly. Knowledge of what he is doing and what wants to achieve helps in
measuring the growth and success of every small business organisation and a successful
entrepreneur as well. Funds and capital also helpful in obtaining financial helps for
purchasing equipments and raw materials. Funding – funds and capitals also affect the performance of an entrepreneur because it is
not possible to do any activity with findings. Lack of money also impact on manager's
performance therefore he is not able to develops polices and plans. Along with this,
affective and efficient products are also not produce as along it needs funds. If
entrepreneurs don't have any source of funds so as they have to depends on loans and
investors, and after that if they are not able to return them so as it effects on
organisational image in overall marketplace (Singh Sandhu, Fahmi Sidique and Riaz,
2011). Funding are the key factor that determines whether entrepreneur is dedicate
towards his works and responsibilities. It also helps in creating a viable business plans
and improving the quality of products, without proper funding an entrepreneur cannot be
able to accomplish success and growth for its business organisation.
 Responsiveness – An entrepreneur should be responsive for every products and services
that he produces in his business organisation. Opportunities can leaves very quickly so he
should have to take decisions fast in order to take good opportunities and chances. If an
entrepreneur is not responsive towards customer's needs and demands so as customers
also not interest in order to purchase its products. Along with this, it reduces the market
growth of the company and its annual sale revenue as well.

P7 Personal background can be hinder and foster on entrepreneurs
Personal background of the entrepreneur also affects on his performance and decision
making process of the company. There are some factors that foster impact on entrepreneur's
performance, such as - Type of education – Education culture of the entrepreneur also effect on his performance.
If he had good qualification skills and educational background so as his thinking and
ideas are effective. So as education and qualification also impact on entrepreneurship
with the decision making process of the company. If any person haven't any skills or
knowledge so as he is not able to be an entrepreneur. His decisions and polices cannot
able to achieve market growth and opportunities. To become a successful business
entrepreneur it is mandatory that an entrepreneur must be well qualified and he has
proper knowledge of external market. Past experience – Past experience of managers also affects their decision marketing
process of the company. Due to this, they are not able to create effective and creative
marketing decisions in order to achieve growth and success (Storey, 2016). If
entrepreneur is come from poor background so as he understands the importance of each
and every resource of company. Resources are the main components of every product and
service in order to make it effective. Therefore an entrepreneur have a good working
experience and skills so as he is able to maintain overall activities in the organisation.
 Character traits – personality, attitude, beliefs, behaviour of the entrepreneur also affects
his performance. It helps in dealing with peoples, develop relationships among
employees and customers, these are characteristic that also effect the entrepreneurship
decision making process.
CONCLUSION
From the above mentioned report it has been concluded that entrepreneurship is the
essential role of every small business organisation. It helps in taking effective decisions and
managing overall working activities of the organisation. In small business organisation
entrepreneurship play a crucial role by providing employment to peoples, producing quality
products for customers, increasing GDP and economical conditions of the countries. It also
provides products on cheap rate so as the lower section of the society can be easily afford it. This
report also involves the roles and responsibilities of an successful entrepreneur, that he as

confident, risk taker and adaptable for every situations. But the past background of an
entrepreneur also impact on his performance, it involves characteristic traits, knowledge and type
of education.

REFERENCES
Books and Journal
Ackermann, S.J. ed., 2012. Are small firms important? Their role and impact. Springer Science
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discipline. Journal of Small Business Strategy. 19(2). pp.89-98.
Dennis Jr, W.J., 2011. Entrepreneurship, small business and public policy levers. Journal of
Small Business Management. 49(1). pp.92-106.
Henrekson, M. and Sanandaji, T., 2014. Small business activity does not measure
entrepreneurship. Proceedings of the National Academy of Sciences. 111(5). pp.1760-
1765.
Luiz, J., 2011. Small business development, entrepreneurship and expanding the business sector
in a developing economy: The case of South Africa. Journal of Applied Business
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before launching a lean start-up. Pearson UK.
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Seymour, R. ed., 2012. Handbook of research methods on social entrepreneurship. Edward Elgar
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Singh Sandhu, M., Fahmi Sidique, S. and Riaz, S., 2011. Entrepreneurship barriers and
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Storey, D.J., 2016. Understanding the small business sector. Routledge.
Turró, A., Urbano, D. and Peris-Ortiz, M., 2014. Culture and innovation: The moderating effect
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Online
Enterprise, Entrepreneurship and Small Business 2010. [online]. Available through:
<https://us.sagepub.com/en-us/nam/enterprise-entrepreneurship-and-small-business/
book227613>. [Accessed on 16th May 2017].
Entrepreneurship and Small Business Management. 2017. [Online]. Avaialbel through:
<http://business.illinoisstate.edu/management/sequences/entrepreneurship.shtml>.
[Accessed on 16th May 2017].