Entrepreneurship & Small Business Management: A Detailed FSB Report

This report delves into the realm of entrepreneurship and small business management, beginning with a classification of different types of entrepreneurship, including innovative, adaptive, fabian, drone, empirical, rational, cognitive, public, private, large scale, and small scale. It compares and contrasts these structures, highlighting their impact on society and the current business economy. The report further identifies the characteristics of a successful entrepreneur, assessing how entrepreneurial personality aspects reflect business motivation and mindset, and examining the effect of background and past experiences on fostering entrepreneurship. It emphasizes the critical role of small and medium-sized enterprises in contributing to regional and national economies, creating job opportunities, and driving innovation, while also acknowledging the technological advancements and product innovations brought about by large-scale entrepreneurship. The report concludes by stressing the importance of both small/medium and large-scale entrepreneurship in ensuring a stable economic situation, developing a skilled workforce, and fostering innovation.

ENTREPRENEURSHIP AND SMALL BUSINESS
MANAGEMENT
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Table of Contents
Introduction......................................................................................................................................3
Part 1................................................................................................................................................3
P1. Providing the different types of entrepreneurship.................................................................3
P2. The structure of the entrepreneurial venture and comparing them with each other..............4
P3. Interpreting and assessing the different types of entrepreneurship and discussing their
impact on the society...................................................................................................................5
P4. Illustrating the impact of the different types of entrepreneurship on the current business
economy and atmosphere............................................................................................................6
Part 2................................................................................................................................................8
P5. Determination of the characteristics of a successful entrepreneur........................................8
P6. Assessment on how the aspects of entrepreneurial personality reflect the motivation and
mindset of the overall business mindset......................................................................................9
P7. Examining the effect of background and past experiences on the foster entrepreneurship.10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12
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Introduction
Every individual who takes up the brittle risk of setting on a new venture by themselves is called
entrepreneurs. Due to the fact that individual entrepreneurship has gained momentum in the
recent years, it is rightly outletting the dynamic activity in the realms of development and
progress. It is a form of innovative ideas and production that definitely cause an effective impact
on the market and the subsequent economy. It can be minimised and put into as entrepreneurship
consists of a player who can helpfully bring in economic change by the help of their vast
economic skill and knowledge supported by high spirit initiative taken by some personnel and
the innovation (Arshed et al. 2014, p. 640).
Part 1
P1. Providing the different types of entrepreneurship
Entrepreneurship has been traditionally defined as the procedure of creating and running a new
business, which generally begins as a small business. While the term is mostly associated with
start-up businesses, entrepreneurial behaviour can be observed in small medium and large sized
firms. Individuals who actively form or create their own businesses and lead them towards
growth and prosperity can be termed as entrepreneurs. A true entrepreneur should always be
created and manage changes by recognising opportunities and manage resources to take
advantage of these opportunities and create a profitable business venture.
Entrepreneurship can be classified into certain categories:
Innovative entrepreneur
An entrepreneur who utilises skill and information in order to shuffle the random factors of
production and provide a new service or product to the market.
Adaptive entrepreneur
An entrepreneur who has no new ideas but rather adopts certain successful ideas that have
already been introduced another entrepreneur.
Fabian entrepreneur
In this type of entrepreneurship, the entrepreneurship is cautious and estimates in the decision-
making process and brings about innovative changes in the production when the organisation is
threatened.
Drone entrepreneur
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This kind of an entrepreneurship takes place when the entrepreneur is fixated on his policies
even when the organisation is threatened and running losses.
Empirical entrepreneur
This type of entrepreneurs prefers following the thumb rule rather than innovating their products
(Blackburn et al.2013, p. 10).
Rational entrepreneur
In this type of entrepreneurship, the owner identifies the random factors that are responsible for
simultaneously affects the framework of the business and implements new ideas in order to
sustain the company.
Cognitive entrepreneur
In this type of entrepreneurship, the owner of the business is advised by professionals and
experts on how to undertake the decision-making process for the implementation of-of
innovative and revolutionary ideas in the existing structure of the organisation.
Public entrepreneurship
In this kind of entrepreneurship, the organisation works I collaboration with different
government bodies and entities.
Private entrepreneurship
In this kind of entrepreneurship, the approach is more profit oriented and unknown to avoid a
low profit making in the market.
Large scale entrepreneurship
This kind of entrepreneurship exists mostly in developed countries
As they are able to develop new ideas and work on them due to their availability of large scale
resources and sustenance of high revenue and simultaneously develop financial as well as
technological capacities.
Small entrepreneurship
In this kind of entrepreneurship, the entrepreneurs lack resources and funds and are in need of a
boosting production and the sales process as well as the implementation of new ideas (Carland et
al.2015, p.55).
P2. The structure of the entrepreneurial venture and comparing them with each other
The aforementioned types of entrepreneurship can be analysed and an assessment can be made in
order to conclude the differences and similarities that are present in all of these types. As
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compared to the more aggressive form of entrepreneurship a drone entrepreneurship lacks
interest in bringing in creating new innovations in the practices though this may result in the
reduction of revenues. This occurs as there is a fear of damage to the existing structure of the
organisation. And the process of the business if focused on the innovation. In comparison to this
if a corporation does not trip or does not adopt to these innovative ideas to minimise the damage.
In the field of entrepreneurship, this kind of individuality results in the entrepreneur sp's division
where the entrepreneurs either innovate the process or do not implement the ideas at all. While a
few of the entrepreneurs are involved in making a profit and are aimed at earning a profit in the
formof a heavy amount of revenue, some of these organisations are involved in bringing
innovations and revolutionary ideas in the domain that is public by working in coalition with the
government. Even though there are slight differences between all the entrepreneur approaches
the principal of the concept remains the same (Carraher and Paridon, 2015, p.90).
It is necessary to understand that the private domain and the public domain of entrepreneurship
are completely different from one another in terms of ideology and practises. The Private sector
of the entrepreneurship is more concentrated in bringing innovations in the productiveness so
they can and garner a huge amount of profit which will allow the corporation to increase their
enterprise. In a case like this the organisation that is n consideration is generally more focused
onself-developmentthan sustaining the society in general. As a result, the products or services
that are provided by them are more innovative ad exclusive. However, in a public-sector
entrepreneurship, the focus of the organisation is to bring about a general development among
the society with innovative ideas that will increase the revenues for the organisation as well as
the general society. It can be concluded that for the sake of the society a public-sector
entrepreneurship will work with the government to provide innovation and ideas that will in
overall benefit the society as a whole rather than only focusing on the revenue that is earned. The
public enterprises enjoy a certain amount of trust from the community as they are the sole
customers of the business as they are their activities are generally for the sake of general
development and not personal profit.
P3. Interpreting and assessing the different types of entrepreneurship and discussing their
impact on the society
The businesses that are small or medium in size are in direct relations with the local, regional and
global economy. It has been seen that in comparison to all the large industries, the small and
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medium sized industries are responsible for the majority of the contributions to the region and
the national economy. This occurs as these enterprises have involvement with a large number of
people who are specifically trained so they can handle the needs of the economy. In Comparison
to the large-scale industries, these industries are much simpler and less specialised in regards to
the process of production. The industries that are small and medium sized are responsible for
hiring in bulk I order to suffice the requirements of labour while the large-scale industries are
generally or technologically stable and in need of less man power. They look for more trained
manpower in order to handle the process. The large-scale industries are responsible for the
development of products or services that are utilised as sales in the commercial market. The
small-scale industries and businesses that are undertaken by the small-scale entrepreneurs are
much less focused on personal profits and are more involved in pursuing processes and services
that are beneficial to the society as a whole. It has been proven that in comparison to a large-
scaleentrepreneurship the small and medium ones are responsible for revolutionising the market
and they have been able to consistently and with satisfactory results been able to perform in
terms of output and have consistency created better job opportunities thus it can be concluded
that though the large-scaleentrepreneurship are more technologically advanced and more
innovative in terms of products and services and products that are provided by them it is the
small and medium scale industries who provide employment and supply thus are more beneficial
to society and the population in general (Carsrud and Cucculelli, 2014, p.191).
P4. Illustrating the impact of the different types of entrepreneurship on the current
business economy and atmosphere
Along with providing services to the customer'sstart-up projects or the small projects, the small
entrepreneurshiphas a particular impact on the locality in general and they effectively transform
as well as influencing the overall economic progress of the region. The small and medium scale
entrepreneurship have the tendency to hire skilled as well as unskilled labour in their employ and
they have to make up with the labour demands of the organisation. The local youth in the areas
where the business mainly focuses on start attaching themselves to the challenge of pursuing the
high profile of attracting themselves to the high-profile careers that are associated with these
organisations. It is a form of general knowledge that a small-scale industry lays its base on the
psychology of the customer however it is generally not observed how these small-scale
industries have a farfetched effect on the socio-economic fabric that is prevalent in the society.
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The small-scale industries are largely responsible for the development of a certain part of the
society as they do not concentrate on the profits of their industry but concentrate on the profit of
the society as a whole. This small-scale entrepreneurshipis not only essential for making
innovative changes to the process of production but is very clear in their view of-of creating a
new industry. These organisations are dedicated to performing beyond the obligations that are
legal in order to make this world a better place to live in and thus they create a replying effect on
the businesses and start-ups and thus have a very critical effect on the present economy and
business environment. These industries thus have a very crucial impact on the current status of
the social economy (Chetty et al.2014, p.820).
In the current era, the experts are approaching new and improved methods to measure the
economic development. it can be assumed safely that the small and medium scale industries are
the primary providers of safe and stable employment to alarger part of the society and the large-
scale industries are responsible for pro vivid in innovative products to the market. This proved
that both types of entrepreneurship are necessary to offer a stable economic situation to the
society thus developing a skilful workforce as well as innovation in the products and services
provided.
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Part 2
P5. Determination of the characteristics of a successful entrepreneur
To be a successful entrepreneur, one should have the insight to the upcoming changes that the
society is moving towards and what can be the upcoming demands. Also, it is important to be
up-to-date with the current affairs of the particular country where is business will be set up, as
the economy of each country differs from the parent country.
Perseverance and focus on the business strategy are the main keys for an entrepreneurship to be
successful and the hindsight should be oflong-term success rather than short-term returns.
Any unique idea takes the time to grow and to be accepted into the society and thus there should
be the steadfastness to keep on going till success starts coming. Any business takes the time to
grow and one should have the perseverance to let the company/organisation grow steadily and
give time for it (Williams and Martinez, 2014, p.14).
Presently, entrepreneurship development is recognised as an important catalyst that can spur
economic growth and prosperity especially in the countries that practise free market economy,
and therefore it is also important that the entrepreneur should be very much conversant with the
financial status of the company. The risks and rewards which the company will have to face or
will enjoy should be estimated properly, as because of the risks become more than the rewards,
there is no doubt that company will start to fail and the whole purpose for creating the same will
become baseless (Doroshenko et al.2015, p.255).
However, moving forward with the determination to sustain in the market, entrepreneurship can
be learned by experience with time, since every experience matters. Also, there are many
management schools, where people can learn more skills to be developed on how to manage the
company affairs, accounts, human resources and many other skills can be developed (Smallbone
et al.2014, p.115).
It is often said that “economy is the effect for which entrepreneurship is the cause". The
development of the economy is usually associated with its industrial development. An
entrepreneur is a person who organises the factors of productions - land, labour and capital, and
establish a business venture and carries out the operations in the business in a profitable manner
(Fayolle and Gailly, 2015, p.80).
The most common traits of entrepreneurs are that they are the Original thinkers and Risk takers.
These people take responsibility for their own actions, feel competent and capable. These people
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set high goals for themselves and enjoy working toward them and enjoy the success that comes
with it.
P6. Assessment on how the aspects of entrepreneurial personality reflect the motivation
and mindset of the overall business mindset
Entrepreneurs can also be defined as self-employed people who also have some self- motivated
traits. These people generally show traits of independent motivators and leaders, who also
motivate people who are around them. These people have the ability and drive to carry out
innovations, characterised as a new source of raw material, a new method of production, a new
market or a new principle. To be able to carry out these new innovations, the entrepreneurs have
a dynamic attitude with the will to change. The prime factor that motivates an entrepreneur is not
the profit but the realisation of the idea and the acceptance of the same in the society. However,
making money is not so unimportant as to run and implement the ideas, capital is a prerequisite.
Also, these people show the trait of being strong mentally, so that in case any idea fails and the
whole process is a failure, these people take the risk of trying to materialise their ideas and are
always in the process to overcome the hurdles that come with trying to process the ideas (Roth,
2014, p.400).
Extraversion or Surgency (talkative, assertive, energetic) is related to aspects such as being
energetic, sociable (ability to develop social networks) and seeking a leadership role.
Agreeableness (good‐natured, cooperative, trustful), describes on the one end of the scale a
person who is cooperative, while the other end describes of the scale describes a self‐ centred
and hard bargain person. Conscientiousness (orderly, responsible, dependable), describes a
person that is achievement oriented, efficient and dutiful. Emotional Stability versus Neuroticism
(calm, not neurotic, not easily upset), describes a person who has self‐confidence, is stress
tolerance and being positive. Openness to experience (intellectual, imaginative, independent‐
minded), describes a person who is characterised by seeking new experience, exploring ideas,
being creative and innovative (Minai et al.2014, p.540).
According to researchers, entrepreneurs/self‐employed have higher scores on openness,
extraversion and conscientiousness while they found no differences regarding emotional
stability.
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P7. Examining the effect of background and past experiences on the foster
entrepreneurship.
What determines or motivates a person to start a new business or become an entrepreneur is the
kind of ideas and the resources he/she has in the background.
Resources such as Capital in the form of currency and real estate which can be utilised as
investments in a business agenda, Education which can be provided to the general population in
order to increase the workforce off both skilled and unskilled labour thus increasing the overall
productivity of the venture, Viability of the idea which will provide a basis for earning
investments from other major ventures that can be related to the nature of the product or service
provided and Past Experiences of the managerial staff that will increase reliability of the venture
to the investors thus making it more profitable to increase investment and making the venture
more successful (Piperopoulos and Dimov, 2015, p.971) .
Perhaps the most distinguished scholar when it comes to entrepreneurship, the realisation of
ideas is not only imperative for entrepreneurs, but also a rare capability. Schumpeter once wrote
that “ideas are cheap” suggesting that anyone can have an idea but only certain persons have the
capacity to realise an idea.
And to implement these ideas one has to have a background to arrange for the capital for the
assignment. Also, there are people, who are risk takers and arrange for the capital from different
investors. Education is also an important aspect of a person, who becomes an entrepreneur, as
education brings in new ideas. Education does not always mean the knowledge one gains from
the educational system, but how the person has accepted the technical knowledge for starting up
the business, as to start the business and to go for it, all the pros and cons should be understood.
The viability of the idea – The entrepreneur has to make sure that the idea for the new business
should be viable and be accepted easily so that success comes readily.
Past Experiences – Many entrepreneurs start their business after they have been working in some
other organisation before they start it off themselves. This gap is necessary to gain knowledge
about how the technicalities of a business work (Qian and Haynes, 2014, p.525). Support from
Family – Support from the family plays a big role in making the entrepreneurs successful, as
most start-ups need a lot of time and patience, and the entrepreneur to see the success of their
ideas keep away from all other social responsibilities.
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These above resources also cause hindrances for the entrepreneurs, as many times it has been
observed that viable and good ideas from the budding entrepreneurs are not realised due to
absence of capital, some start-up close down early since the entrepreneur is not educated enough
about the organisational processes that need to be followed, some people start new business but
their ideas seems to be too much traditional and same than earlier ideas, not having proper
experience in the industry is also a drawback for the entrepreneur. One of the biggest challenges
that are faced by the entrepreneur is the support from the close family and friends (Ratten, 2014,
p.270).
Conclusion
The given assignment in accordance with the assignment which is present in small and medium-
sized industries and the enterprises that cause an impact on the growth as well as development
for an economy or a society in general. The assignment aids in understanding the underlying
characteristics if being a successful entrepreneur and also sheds light on the barriers that are
faced and overcome during setting up a business venture. The impact and influence of these
small and medium-sized organisations on the local and national economy has been also
discussed which showcases the growing importance of small and medium-sized enterprises
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References
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policy formulation to blame?. Small Business Economics, 43(3), pp.639-659.
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