Entrepreneurship & Small Business Management Report

This report comprehensively examines entrepreneurship and small business management. It delves into different types of entrepreneurial ventures, highlighting their similarities and differences, such as private, public, social, serial, and female ventures. The report analyzes the significant impact of micro and small businesses on local, regional, national, and international economies, emphasizing job creation, income generation, and increased purchasing power. Furthermore, it explores the importance of small businesses and startups in the growth of the social economy, focusing on their role in providing socially acceptable products and services, wealth creation, and technological advancements. The report also discusses the essential traits and skills of successful entrepreneurs, including risk-taking, innovation, focus, and people management. Finally, it investigates the influence of entrepreneurial personality, family upbringing, parental background, occupational background, and past experiences on entrepreneurial success. The report concludes by summarizing the key features of entrepreneurship and the distinctions between entrepreneurs and businessmen.

ENTREPRENEURSHIP AND SMALL
BUSINESS MANAGEMENT

Table of Contents
INTRODUTION..............................................................................................................................3
P1 Different types of entrepreneurial ventures :.........................................................................3
P2 Similarities and differences of different types of entrepreneurial ventures:..........................4
P3 Impact micro and small
business have on the economy...................................................................................................6
P4 Importance of small
businesses and start-ups on growth of social economy...............................................................7
P5 Traits and skills of an entrepreneur:.......................................................................................8
P6 Affect of entrepreneurial personality:....................................................................................9
P7 Impact of background and past experiences on entrepreneur:.............................................10
Conclusion.....................................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUTION
Different people have different meaning of entrepreneurship as some consider start up
founders as entrepreneur but some consider local small vendors with street business as
entrepreneur. Entrepreneur is a self employed person who take risks in order to convert their idea
into reality. They face a lot of problems in initial stage like lack of funding, wrong decision
making, lack of contacts etc. Small business have to face a lot of competition from big MNCs so
initial period is always considered as most important time for lot of early birds. The advantages
of small businesses and entrepreneurship is that it helps in generation of employment in a
country and motivate people to make them self employed and provide employment instead of
looking for employment (Kirzner 2015). Assael Architecture is a company which can be
considered as medium enterprise and they are known for their creative designing of
infrastructure and integrity in business. They are providing quality services to their customers
and generating employment in their economy. The biggest threat or fun in entrepreneurship is
that no one knows what will be the outcomes, it can be very disappointing or it may turn a small
firm into a transnational company.
P1 Different types of entrepreneurial ventures :
Risk is an integral part of entrepreneurship as result is very uncertain. Normally a
businessman can predict how much profit they will earn, what can be their turnover but for
entrepreneurs it is difficult to find and predict outcome. Their are many types of entrepreneurs
and they can be defined on different basis. First can be on the basis of ownership, two types are
present here one is private other is public. In private they focus on achieving profits as money is
their main objective but in public venture, they focus on development instead of profit as they
want to solve public problem without earning any profit from public. Other basis can be scale of
enterprise in which business is defined in two parts, one is small scale business other is large
scale business. It is not necessary that only a small firm take risk and start something new, big
companies can also start something new and different whose outcome will be too uncertain and
difficult to predict. Small scale business face challenges like acquiring talent, fund problem etc.
but large scale business has many necessary resources required to do innovations and start
something different and new. Their are some social entrepreneurs who do not believe in making
money but they focus on providing necessary facilitates to needy people and layman. They do
not have any relation with government and generally registered as NGO. These are some

popular kinds but there are also some others types one of them is Copycat entrepreneur in which
they just copy invention or an idea and make something similar to the original product or service
(Drucker, 2014). Their are some arguments that two people can have same idea but if someone is
really coping than they should do smart work and instead of coping they should switch to
modelling. Other can be a research entrepreneurs, they want to explore and learn so they can
grow their business. Biggest problem with this type is that they put so much focus on research
that they ignore implementation of strategy which is equally important to research.
Types of entrepreneurial venture:
Social venture – Their main aim is social welfare instead of earning profit. Government
also provide various kind of financial assistance because they try to basic problem related to
society.
Serial venture – These types of venture invest in more than one idea. They have a habit of
entering in new types of business by using innovative ideas. If their one plan did not work than
they try to convert other idea into reality.
Female venture – These venture are run by women entrepreneur, they own their firm and
manage their business for long period of time. They use innovative thoughts at the time of
providing services or manufacturing of goods. Society and government play crucial role in
success of these types of ventures.
P2 Similarities and differences of different types of entrepreneurial ventures:
Their are many types of entrepreneurs like mentioned earlier, similarities in private and
public entrepreneurship is that they both target on fulfilling public need because in case of public
they consider providing basic facilities as their main objective and in case of private they want to
earn money by buying and selling useful and necessary goods to laymen. Both of them target on
solving problems related to economy. Another similarity between private and public enterprises
is that they both focus on generating employment as for most of the government unemployment
is a big concern and private enterprises want to employ more people so they can convert into big
company in future plus some government policies motivate private entrepreneurs to generate
more employment in order to avail some benefits from government side. Similarity between
social entrepreneur and public entrepreneur is that both of them do not target profit and keep
public welfare as their prime objective. They consider social welfare as their reason of doing
business and make their goods or service available for a reasonable rate or sometime free. .

Similarity between them is that both them can work on same idea, as idea is not related to fund
or experience. Another similarity is that both of them have resources to start their operations as
amount may differ but basic resources can be same. Difference between private and public
entrepreneurs is that private always keep money as their main objective and some time in order
to earn more profit they can ignore public welfare (Bosma and Levie, 2010). But public
entrepreneurs always keep public welfare as their prime objective and do not give much
importance to money so they do not focus on earning revenue. Public entrepreneurs can operate
without any profits for a long time as they are supported by government but private cannot
operate for long time in loss because they have limited funds and they have to give answers to
investors about profits and future of business.
Difference between Large and small entrepreneur:
Large scale entrepreneur Small scale entrepreneur
 They are normally owned by big
companies and transnational company.
 They invest heavy capital in their
venture as they do not have any fund
problems.
 Government do not involve much in
their operations as they have deep
pocket and reliable human resource.
 They start their business in prime
locations and in major cities because
they can afford it.
 They have resources for functions like
marketing, training of employees etc.
 They are owned by either sole
proprietor or in partnership.
 They have to invest very carefully in
their venture because they do not have
many resources and have very limited
fund.
 Government intervene in their business
when they feel that they need
government assistance to operate
against Large scale entrepreneur.
 Generally they do not have fund to
operate in major cities and prime
location so they choose small cities.
 They have less resources to invest in
marketing and training of employees.

P3 Impact micro and small business have on the economy
Small enterprises are those enterprises which are small area of operation, usually a start-
up and they are funded by small angel investors. They help in driving innovative and creative
economic sectors in the country (Barringer, 2012). These enterprises help in building
employment in the economy by creating a way of providing and generating employment in the
economy.
Micro-enterprises are those enterprises who employ few people on the part of providing
products and services to the local areas and these enterprises operate with a small capital
investment. Micro-enterprises add value to the country's economy by generating jobs, providing
incomes and wages and it helps to generate purchasing power by lowering cost of goods and
services. Various impacts of small and micro enterprises are :-
 Local Economic Impact:
◦ Locally demanded goods and services are generated means that the goods and
services are produced according to the needs of local persons who have daily
purchasing from these business ventures.
◦ Individual Income, job creation increases when business house provides products and
services to the consumers and consumers get satisfied by them, then individual earns
profit in the form of high sales and in return creates jobs for small and technical
graduates.
 Regional Economic Impact:
◦ Regional growth and developments: through the supply of all the facilities people
who were earlier travelling out for jobs, they will start working in there region and
this will create a better standard of living for the region.
◦ Better Job opportunities in the region: through the development of new enterprises a
process will start where new type of jobs will be available for people in the particular
region as they don't need to travel out for job.

 National Economic Impact:
◦ High purchase power: It means that when people of any country are benefited by the
foreign products and services in their own county itself then automatically their
purchasing power will increase in terms of better opportunities for the country .
◦ National Development: It means that through manufacture of all the type of products
and services in the economy a nation will tends to be developed on the level of
providing better services.
 International Economic Impact:
◦ Financial power will be more to the economy for the products and services which
have high value in the international market.
◦ Trading between developed nation will be relatively more then earlier because earlier
the economy was known as underdeveloped but now with the financial stability,
availability of all type of goods and services , it will known as developed economy.
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From the above graph it can be analysed that growth of number of enterprises are increasing with
a faster rate.
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From the above graph it can be analysed that South Asia and Africa are highly dependent on
micro and small businesses. Out of total employment 75% is given by small business
enterprises.
P4 Importance of small businesses and start-ups on growth of social economy.
Social economy is the third economy after private and public economy that have large
and positive impact of development of products and services of any country. Social economy
helps in understanding the economic and social behaviour, It analyses all the factors which are
required for social and economic development like social values, ethical and morale standards
and cultural and personal traits of living in an economy (Agarwal, Audretsch, and Sarkar, 2010).
Small business are the business enterprises that regulate the flow of economic policies,
procedures and generates employment opportunities for all the sections of society.
Small businesses have following impact on social economy.
 Small businesses have the major impact of providing the products and services which are
socially acceptable around the economy.
 Wealth is being created for development of products and services as more and more
people are being benefited by that product or service.
 New ways of providing products and services are generated to enable the consumer to
buy same type of product with different social techniques.
 Enables the individuals to adopt new ways of productivity.
 Technology which is socially and universally accepted are utilized for the purpose of
providing complete and correct information about different products and services.
Start ups refers to those business ventures which are new in business and mainly work on
technology related sector. Start ups have the following impact on social economy
 They provide jobs to a large amount of populations so they cannot depend on other and
their living standard raises. A Start up can not give much employment but when number
of start ups enhance they ultimately give job to many people. They also help in
generating indirect employment which is ignored by many but it is an important
contribution from their side.
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 They provide more competition in market which promote fair trading and maintain
proper demand supply chain. It ultimately reduces the price of product which make them
available to more population.
 A trend starts in market as working in the small teams helps in creating and generating
new ideas and helps the business to grow and develop more rapidly which give
inspiration to many people of self employment and generating employment.
Currently private sector, which include small business and start ups, are paying low money if it is
compared from public but the difference is not much. They have touched the same rate in
previous time and they may touch it again.
P5 Traits and skills of an entrepreneur:
Definition of successful vary from person to person, so it is difficult to find a proper
definition of successful entrepreneur because of different perceptions and choices. But there are
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some qualities which is common in every entrepreneur, like risk taking ability and innovative
mind etc. Entrepreneur should posses some general skills like working in a environment which is
full of pressure which is very necessary because he has deal with many problems and work hard
with consistence. Other quality is focus which is one of the most important quality as if a
entrepreneur lose his focus he has face serious consequences in return because he is the leader
and make significant decision. He should have an ability to focus on long term goals instead of
short term return because in new business it is difficulty to get early profits. It depends on
perception of an individual that entrepreneur are made or they are born as both things are
possible. Their are other psychological qualities, such as self-confidence, self-esteem, self-
efficacy which is they must also possess. An important quality he must possess is that he should
have ability to find and manage people because only right people can take organisation in right
direction and help in achieving desired objective. At the time of business operations he should
focus on learning new things and get specialisations in business because continuous learning can
provide higher growth in future. Some people argue that entrepreneurs cannot be made through
study or experience, they are born. This arguments is not completely wrong as there are many
family business which are successful run by different generations. Other argue that
entrepreneurship can be taught which is right to some extent as some part of entrepreneurship
can be taught in colleges but ability to take risk in life cannot be taught by any institution
(Santos, 2012).
P6 Affect of entrepreneurial personality:
The "entrepreneur" is an individual, leader, prospector, risk taker and project evaluator
who mobilises resources from an area of low yield to a high productivity. For any entrepreneur it
is true that their behaviour is the outcome of his life experiences. Therefore the behaviour of the
interpreter can be said as a sum of his upbringing, culture and family background. It is a fact that
no one is an enterpriser by birth but the culture and the personal background make an individual
of a particular type. Different characteristics which influence the behaviour of the entrepreneur
are:
 Achievement motivation- the desire for success affects the behaviour of an individual
to a great extent. It depends how much the entrepreneur is dedicated towards his work
and what is his expectations from the start ups. More the dedicated person more effective
will be the results.
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 Family upbringing- the family background of entrepreneur also have major effect on
him. If there are members who are in the same field than it is a positive motivation for the
person who wish to start a new set up. On the other hand if the family do sent support the
concept of entrepreneurship than it becomes difficult for him to develop. People find this
risky and therefore resist to be a part of it.
 Parental background- if the parents are in business than their children also join the
same and continue with the business. In this way new changes are brought by them with
new process and new product styles. In this case they are not a part of first generation but
of the second generation entrepreneur.
Occupational background- it is one of the most influencing factor. Person having work
experience is capable of taking more effective decisions and after getting knowledge it can be
implemented in a better way in the business.
P7 Impact of background and past experiences on entrepreneur:
When an individual do not know what is entrepreneurship it is difficult make him
entrepreneur and it is related to human psychology. Family background made a huge impact on
psychology of an individual as if he saw his family member taking risk and taking about
innovations than he can have an idea to start something of his own or to take calculated risk in
life and in business (Oosterbeek, Van Praag and Ijsselstein, 2010.). Entrepreneur need proper
training, they are not made in one day or by teaching one principle. They have live in an
environment where they can get all the knowledge regarding to entrepreneurship and get quality
experience so in future they can make something of their own. Education that they get in school
and colleges is also an important factor as if they get good platform at school and college level it
will be easier for them to cope up when with world when they are new in market. Practical
knowledge is also very important as there is a huge difference between knowledge provided
trough books and knowledge they get in market.
Experience is also important as if an individual work in company where people like to
take risk as well company have an environment where they give more power to employee, he
will learn a lot and can become entrepreneur in future (Von Graevenitz, Harhoff, and Weber,
2010). Their are countries which have trend of promoting entrepreneurs so in these countries
people become entrepreneur easily and they easily get the knowledge regarding it because when
whole society is thinking, working and promoting entrepreneurship it is not hard to generate new
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entrepreneurs. Economic circumstances are also significant in this issue as if country is facing
hunger or terrorism issue than they can not promote this issue and people will focus on getting
basic amenities instead of becoming entrepreneurs. But an economy where people have enough
money to fulfil their basic need and enjoy their life they can move toward becoming an
entrepreneur as they do not have any other tension in their life. Individual character is another
point that cannot be ignored as some people has ability to take risk in their life but some do not
like to take risk. Some can easily find and manage human resource needed to run a business
whereas some do not possess this quality (Welter, 2011). It is considered that if someone want to
become rich he should start a business so most people consider this as biggest benefit of doing
business but many businessman believe that they do not started business to earn money but they
wanted to follow their passion and create something that make this world a better place to live.
Conclusion
Entrepreneurship is related to risk taking and doing something that is not present in
market. They are of many types and have to do lot of activity in operation of business. SMEs are
small and medium enterprise who do not have much capital and operate in a limited market.
They provide employment to few people and have very less resources compare to multinational
companies or large domestic firms. People often get confuse between a businessmen and
entrepreneur, earlier one focus on earning maximum profit but later one believe in using
innovative ideas in order to provide various types of goods and services. Purpose of
entrepreneurship venture may differ but their basic features never changes.
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REFERENCES
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new theory and how we move forward from here. The academy of management
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Delgado, M., Porter, M.E. and Stern, S., 2010. Clusters and entrepreneurship. Journal of
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Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
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Oosterbeek, H., Van Praag, M. and Ijsselstein, A., 2010. The impact of entrepreneurship
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Santos, F.M., 2012. A positive theory of social entrepreneurship. Journal of business ethics,
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Storey, D.J. and Greene, F.J., 2010. Small business and entrepreneurship. Financial
Times/Prentice Hall.
Von Graevenitz, G., Harhoff, D. and Weber, R., 2010. The effects of entrepreneurship education.
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Online
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<https://www.inc.com/magazine/201309/jessica-bruder/psychological-price-of-
entrepreneurship.html>. [Accesses On 11 May 2017].
Entrepreneurship. 2017. [Online]. Available Through: <https://hbr.org/2017/01/buying-your-
way-into-entrepreneurship>. [Accesses On 11 May 2017].
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