Assessment of Entrepreneurship and Small Business Management Report

This report, created for a BTEC Level 4 Higher National Certificate in Business Unit 9, delves into the multifaceted world of entrepreneurship and small business management. It begins by defining entrepreneurship and exploring different types of entrepreneurial ventures, including public, private, and social ventures, while also comparing and contrasting their similarities and differences. The report then evaluates the significant impact of micro and small-sized businesses on a country's economy, highlighting their contributions to national income, employment generation, and economic growth. Furthermore, it analyzes the importance of small businesses to the growth of the social economy. The report proceeds to identify key characteristics, traits, and skills of successful entrepreneurs, focusing on motivation, creativity, and risk-taking abilities. Finally, it examines how background and experience can both hinder and foster entrepreneurship, providing a comprehensive overview of the factors that influence entrepreneurial success.

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Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
LO 1.................................................................................................................................................3
P1 Different Types of Entrepreneurial Ventures.........................................................................3
P2 Similarities and Differences amongst Entrepreneurial Ventures...........................................4
LO 2.................................................................................................................................................6
P3 Impact of Micro and Small sized Businesses on a country’s economy.................................6
P 4 Importance of small business to the growth of the social economy......................................7
PART 2............................................................................................................................................8
LO 3.................................................................................................................................................8
P 5 Characteristics traits and skills of a successful entrepreneur................................................8
P 6 Entrepreneurial personality reflect entrepreneurial motivation and mindset........................9
LO 4...............................................................................................................................................10
P7 Background and experience hinder and foster entrepreneurship.........................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Traditionally entrepreneurship is the process though which a person called an
entrepreneur, creates a business organisation or organisations and scales it with the intention to
generate profits. Modern entrepreneurship process also includes initiatives taken on by
entrepreneurs to find innovative solutions to world’s biggest problems in an attempt to further
improve the quality of life available to the general public. Entrepreneurs have become increasing
essential to the growth and development of a business organisation and the business environment
in general because entrepreneurs innovate on existing operations present in the market and create
employment for the general public which is immensely influential to the development and
growth of a given business market (Kuratko, 2016). This report assesses the various types of
entrepreneurial ventures along with their similarities and differences. The report also evaluates
the impact that operations of small and medium sized businesses have on the local and
international business environment and their significance. Then the report identifies the key
characteristics needed to develop an entrepreneurial mindset. Finally, the report analyses how
various business environments affect entrepreneurial ventures.
PART 1
LO 1
P1 Different Types of Entrepreneurial Ventures
Entrepreneurship is the process through which an entrepreneur creates a new business
organisation with the intention to generate profits. The entrepreneur takes on most of the risks
involved in such a process in hopes of earning bigger rewards later during the business’s
operations. Entrepreneurial activity comprises of the enterprising human action taken on by the
entrepreneur with the intention to generate profits by creating or expanding operational capacity
of a business organisation. While, an enterprise is an existing business organisation that
generates profits by producing products or services created by an entrepreneur.

A serial entrepreneur is an entrepreneur who consistently thinks of new ideas and
innovations in order to start multiple new business operations. This is in stark contrast to a
traditional entrepreneur who creates and starts an organisation and then dedicates his efforts to
improve its functioning (Burns, 2016). Serial entrepreneurs are also different to managers of a
business organisation who do not have any financial stake into the organisation and are tasked
with managing its day to day operations. There are primarily three different types of
entrepreneurship ventures available to entrepreneurs:
Public Entrepreneurial Ventures: These are the entrepreneurial ventures by entrepreneurs who
are part of the governing authorities, created to enter into public markets with the intention to
provide an innovative service to the general public in order to increase their standards of living
or to eradicate an undesirable aspect of the local society. These ventures are started by
entrepreneurs with the intention to grow the venture and improve the society at large.
Private Entrepreneurial Ventures: Private entrepreneurial ventures are started by private
entrepreneurs with the singular objective to generate profits for himself and the organisation.
These types of ventures innovate and occupy the local markets with the entrepreneur taking on
most of the risks involved in order to reap bigger rewards later. An example of private
entrepreneurial venture is that of the business organisation Tesla, started and grown by Elon
Musk primarily with the intention to generate profits using innovative technology.
Social Entrepreneurial Ventures: In these types of entrepreneurial ventures, private
entrepreneurs try to fund, create and apply innovative and modern solutions to address existing
social, environmental and cultural issues within a country (Read and et.al., 2016). This approach
acts as a link joining the public and private venture’s entrepreneurial operations in order to work
towards creating a better future while being privately owned. For example, Grameen Bank a
privately owned which provides loans to underprivileged sections of the population at no
collateral.
P2 Similarities and Differences amongst Entrepreneurial Ventures
There exist various similarities and differences between the different entrepreneurial
ventures in the market. The table mentioned below identifies the various similarities and
differences between public, private and social entrepreneurial ventures.

Basis Public Ventures Private Ventures Social Ventures
Value
Public ventures are
operated to provide
social value to the
public.
Private ventures are
operated with the
intention to provide
financial value to the
entrepreneur.
Social Ventures are
operated in order to
provide social value to
the general public.
Strategy
For public
entrepreneurial
ventures, the business
strategy is developed
with the intention to
address public’s social,
cultural and
environmental issues.
For private
entrepreneurial
ventures, the business’s
strategy is solely based
on generating higher
profits for the
entrepreneur and the
organisation.
Though social ventures
are owned privately,
their business strategy
revolves around
addressing public’s
social and cultural
issues using innovative
modern solutions.
Revenue Sources
Public entrepreneurial
ventures generate
operational revenue by
charging the public with
various taxes and
customs such as
corporate and income
taxes in addition to extra
fines and penalties
(Storey, 2016).
Private entrepreneurial
ventures their private
revenue sources are the
price they charge from
created goods and
services or through
loans from banks or
from selling their
operational shares in the
market.
Primarily social
entrepreneurial ventures
source revenue needed
for sustaining their
operations though
donations and public
grants.
Objective
Main objective of public
entrepreneurial ventures
is to improve the
lifestyle standards of the
public.
Primary objective of
private entrepreneurial
ventures is to generate
profits (Burns and
Dewhurst, 2016).
Main goal of social
entrepreneurial ventures
is to provide social
value to public and
improve their social
wellbeing.
Profits generated by
public entrepreneurial
Profits generated by
private entrepreneurial
Profits generated by
social entrepreneurial

Profit distribution
ventures are divided
equally amongst its
various stakeholders
which include its
suppliers, employees,
administration and the
society.
ventures are distributed
amongst its owner and
the stakeholders such as
investors, shareholders
and administration etc.
ventures are not given to
any one individual but
are divided equally
amongst the society.
Stakeholders
Public entrepreneurial
venture’s stakeholders
include its customers,
investors, owners,
employees, suppliers
and the society itself.
Private entrepreneurial
venture’s stakeholders
include its shareholders,
investors, competitors
and government.
Social entrepreneurial
venture’s stakeholders
include its donors,
funders, competitors ,
customers and directors.
LO 2
P3 Impact of Micro and Small sized Businesses on a country’s economy
Currently, there exist more than 5.5 million business organisations in the UK’s private
sector. Of these close to 5.4 million businesses fall under the category of small sized businesses
meaning that they require employees in the range of 10 to 50 employees for fulfilling their
operations. Of these 5.4 million business organisations, a further 5.3 million businesses fall
under micro sized businesses which employee less than 10 people for their operations. This has
been hugely beneficial to UK’s local and international trading markets as operations of micro
and small sized businesses add to the add to their country’s national income and economic
development, while their operations also address the given poverty and employment rates of UK.
As there are such a huge number of micro and small sized businesses present in the UK, they
also contribute significantly towards its annual economic growth and national income. As of
2016, small sized businesses made 47% of UK’s total turnover of all private sector business
organisations which amounted to close to 1.8 trillion sterling pounds(BUSINESS POPULATION
ESTIMATES FOR THE UK AND REGIONS 2016, 2016). Another major contributions of micro
and small sized businesses to UK’s economy is through their employment generation. Micro and

small sized businesses create huge employment opportunities for the local populations of UK, as
can be observed from the fact that of the total number of employment opportunities created by
UK’s private sector businesses, 60% of it was created straight from the operations conducted by
micro and small sized businesses. Due to major jobs created by micro and small sized business
operations, only 4.8% of UK’s total population remains unemployed. As of 2016, UK’s micro
and small sized businesses contribute to a total of 15.7 million employment opportunities within
the UK which provides livelihood to a large sect of its populations.
There also exists great competition amongst micro and small sized businesses to grow
their business operations and generate profits in the market. As per a recent study, it is found that
55% of all micro and small sized private business organisations operating in the UK end up
closing within the first five years of their operations. The primary reason attributed to this
finding is the saturation of local markets by larger multi national corporations who make use of
the principle of economies of scale to drive their product costs low. Micro and small sized
businesses find it immensely hard to outcompete these businesses in the local markets and have
to close their operations in order to save as much financial resources as they can.
P 4 Importance of small business to the growth of the social economy
There is a huge impact on the social life of the people because there are a lot of social
help which the population can get because of this factor. There are 5.7 million SME in United
Kingdom which is helping the country have a better functioning for them so that they can have a
better lifestyle (Kunaka and Moos, 2019). The lifestyle of people is getting better in the country
because there are so many opportunities which are coming in front of the population of the
country. There are more than 99% of the people of United Kingdom which are getting their job
opportunities from this factor which is a great idea for the government as well. The government
is also promoting this factor so that there is a better functioning of the country and the
government will be able to develop the country further which can make the economy of the
country further stable.
The GDP of the country is growing and the recession which had come in the year 2008
which has been recovering by the country and this is a great advantage for the country therefore
they will be able to grow even faster and that can be a great advantage for the country. The
lifestyle of the people has changed and the knowledge and skills which are present in the people

has improved which is making them even more aware of the surroundings which they deserve to
have. The government is making the country develop so that the people can have a better
lifestyle and have a better environment to live in. The government is providing loans to the
people so that they can start their businesses in the country so that the government can make the
employment rates in the country develop which is a great sign for the country’s development
(Yan and Yan, 2016).
PART 2
LO 3
P 5 Characteristics traits and skills of a successful entrepreneur
There are a certain kind of traits and skills which are required in an entrepreneur so that
they can become successful in the competitive market. Entrepreneurs have to make a lot of risk
taking steps for the company so that they can explore more and learn a lot which will be good for
the future and the following report discusses the traits and skills of an entrepreneur (Pham,
2018).
Characteristics
 Motivated
There are a lot of failures which have to be faced by an entrepreneur as well like the breakfast
idea did not take up in the market of Tom all of a sudden but he was motivated enough which
continued to expect something out of his idea (Mehtap, 2018). There has to be a sense of
motivation in the entrepreneur so that they can achieve them no matter how much time it takes.
 Creative
The entrepreneurs have to get something creative to the market otherwise the customers are
not going to get attracted to the products which they have to get in the market. Tom Mercer got
healthy breakfast for the customers only then he became successful because that was a very
creative idea so that the customers did not get late for the business and at the same time takes
care of their health.

 Adventurous
There are risks which have to be taken which is an adventurous move which the entrepreneur has
to take like Elizabeth took by funding herself by friends and family and then starting her own
new business (Laukkanen and Tornikoski, 2018). There has to be an adventurous soul in an
entrepreneur which should be present so that they can achieve their objectives and goals.
Skills
 Ability to sell
Elizabeth had a skill which was her ability to make the customers purchase her advises therefore
she was so certain about starting her own EG consultancy but before she took some experience
so that she could take steps and measure to start her own business accordingly. Experience does
make a lot of difference in a business and for an entrepreneur it is very essential so that they can
know more about the industry which they would be entering. The competition is increasing
therefore the entrepreneurs must know what they are stepping into (Saleem, 2017).
 Ability to hire right candidates
The entrepreneur has to have people in the company or have to have loyal partners so that
they can share their ideas so that their ideas can achieve the objectives and goals that they
deserve. There has to be an effective workforce in the company so that they can make the
productivity of the company increase and the demands of the customers are met from time to
time therefore hiring is another skill which the entrepreneur must have.
 Self awareness
The entrepreneur must know themselves well so that they can make decisions for the future
accordingly which will make them successful (Hornsby and et.al., 2018). They should be
mentally prepared for the worst and the best for the future which can be done when the
entrepreneur is self aware for themselves.
P 6 Entrepreneurial personality reflect entrepreneurial motivation and mindset
The mindset of the entrepreneur has to be well balanced with the personal and
professional lifestyle so that they can make decisions accordingly. There are a lot of risks which

have to be taken by an entrepreneur of the organization which have to be either good or bad but
there is a lot of learning which is present in the decisions which they make. There has to be a
control on the organization of the entrepreneur and also that all the employees share the same
objective for the company like the entrepreneur does for the company so that the company can
find it easier to function smoothly in the market. There has to be a strong personality of the
entrepreneur in the company so that the employees want to follow them which will help the
company to grow in the market which is a very essential factor for the company so that they can
have a competitive advantage in the company. The demands of the customers has to be met from
time to time and it is not possible for the entrepreneur to make all the functioning of the company
be functioned by him therefore he must make sure that the employees follow what he has to say
in the company so that the company can achieve the objectives from time to time. Motivation is
something which the entrepreneur can spread in the company if they want to because there has to
be a positive environment in the company so that they can achieve their objectives for a long run
in the market. The entrepreneur has to make sure that the people in the company are positive and
have a transparency in the company so that they all can share the same aims and objectives
which will give clarity of functioning in the company. The mindset of the entrepreneur will
reflect on the employees therefore the entrepreneur has to show the best to the employees about
the company so that they can be motivated and the company can function effectively. There are a
lot of risks which have to be taken by the entrepreneur of the company but the employees do not
have to know about them because that can make the company have a lot of difference in the
working (Runyan and Covin, 2019). The workforce of the company has to see the best of the
company and the entrepreneur has to know that they are doing their best for the company like
Tom did for MOMA Foods and Elizabeth did for EG consultancy.
LO 4
P7 Background and experience hinder and foster entrepreneurship
Entrepreneurship background is considered as the previous professional and personal
experiences share by entrepreneurs. Background and experience put a huge impact over
entrepreneur’s personality. Impacts of entrepreneur background and experience over the
entrepreneurial practices can be summarised in the following manner.

Improve decision making: Background and experience of entrepreneur put huge impacts over
the decision making process of entrepreneurs (Fohim, E., 2017). Decision making is a crucial
aspects of the business as all outcomes of the businesses are highly depends upon the decision
making techniques of entrepreneurs. Decision making is an effective tool as it involves many
processes such as situation evaluation and analysis, situation awareness, problem identification
and recognition, competition analysis and other aspects that support entrepreneurs in taking
effective business decisions that can support entrepreneurs in taking competitive advantages of
business. For example back ground and experiences govern by entrepreneur Elizabeth Gooch has
supported the decision making process in the entire entrepreneurial journey. Elizabeth has joined
the HSBC bank at the age of 18 which improves the analytical skills of the Elizabeth in respect
to assessing needs of target customers. Banking experience of the Elizabeth Gooch has also
supported the market awareness of the entrepreneurs. Both the skills and abilities are among the
primary activities involved under decision making process of entrepreneurs.
Improve analytical skills: Background and experience of entrepreneurs support the analytical
skills of entrepreneurs. Analytical skills of entrepreneurs support them in taking crucial decisions
in respect to the growth and development of business. Analytical skills enable entrepreneurs to
analyse about the actual market situation. Assessment of market situation helps entrepreneurs to
evaluate the needs of target customers in the market. For example background of the
entrepreneurs Elizabeth Gooch has supported him in taking crucial decisions of the business by
utilising analytical skills. Elizabeth Gooch has employed in bank at the age of 18 which
developed the analytical skills in the entrepreneurs. Banking sector is among the crucial market
sector that drives the analytical skills of individual. The experience governed by Elizabeth
Gooch has supported him in making suitable decisions as a consultant in latter stage of his
consulting business.
Communication skills: Communication skills are a crucial aspects of the entrepreneurial
business. Entrepreneurship is all about communicating the idea to the society and other
associated entities involved in the external business environment. Effective communication skills
get to utilise at all the stages of business life cycle (Fathia, N., 2019). Communication skills not
just support entrepreneurs to deal with customers but also with investors and other associated
stakeholders of the business. For example entrepreneur Elizabeth Gooch worked in HSBC bank

in the beginning of his professional life. Banking experience of the entrepreneur has developed
an effective communication skill in entrepreneurs which supported him through out of his
entrepreneurship journey in satisfying the needs of the clients at consultancy business.
Consultancy is highly depends upon the communication skills as effective solutions are only
useful when they are effectively communicated with the target customers and clients.
All the above aspects has developed in entrepreneur Elizabeth Gooch due to the previous
experiences that has boosted the entrepreneurial success
CONCLUSION
In conclusion, it can be inferred that Entrepreneurs have become immensely influential to
the growth and development of a country’s local and international economic environment. This
report assesses the different types of entrepreneurial ventures and their relationship with
entrepreneurship typology along with their differences and similarities. Then the report examine
how micro and small business affect the economy of a country and their significance to its
growth. The report also identifies the characteristic traits which distinguishes successful
entrepreneurs from other managers and how one’s personality can affect entrepreneurial mindset
and motivation. Finally, the report evaluates the impact of personal background and experience
on one’s entrepreneurial adventures.