Entrepreneurship & Small Business Management: An In-Depth Report

This report provides a comprehensive overview of entrepreneurship and small business management, covering various key areas such as types of entrepreneurial ventures based on scope, growth, and development, including micro-enterprises, small/lifestyle ventures, medium-sized ventures, gazelle ventures, and social entrepreneurship ventures. It discusses the related typology of entrepreneurial ventures, such as survival, lifestyles, managed growth, and aggressive growth, highlighting the differences and similarities between these ventures. The report also examines the impact of micro and small businesses on the economy, including their role in decreasing unemployment, generating GDP, improving living standards, and raising competition levels. Furthermore, it explores the skills, characteristics, traits, and motivational drivers of successful entrepreneurs, reflecting their personality, and analyzes varied factors or environments that hinder or foster entrepreneurship, such as background and experience.

Entrepreneurship and Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
LO1..................................................................................................................................................2
Types of Entrepreneurial ventures...............................................................................................2
Related typology of entrepreneurial ventures..............................................................................4
Difference between entrepreneurial ventures..............................................................................5
Similarities between entrepreneurial ventures.............................................................................6
LO 2.................................................................................................................................................6
Micro and Small business impact on economy...........................................................................6
LO 3...............................................................................................................................................10
Skills, characteristics traits, and motivational drivers of successful entrepreneurs, that reflect
their personality.........................................................................................................................10
LO 4...............................................................................................................................................14
Varied factors or environment that hinder or foster entrepreneurships.....................................14
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Entrepreneurship is a process that of setting business activities by undertaking financial
risk in order to earn maximum amount of profitability and market share. Serial entrepreneur are
individual that continuously come up with new ideas and innovation to start a business and
satisfied needs of customers in effective manner. Intrapreneur is a person that is self motivated
and active to undertake high amount of financial associated with starting and establishment of
business. There is rapid growth and expansion of small and micro business in UK that have
contributed in increasing overall employment opportunities and GDP of country. Entrepreneurs
have several skills, capabilities and knowledge that motivate them to start their own business for
earning profitability in competitive market. Background and experiences are two main factors
that hinder or fosters entrepreneurship in the economy. This report is about small and
entrepreneurship management which is prepared in order to know the way business are being
managed and operated. It covers several key areas such as types of entrepreneur venture on basis
of scope, growth and development and their related typology. It also discusses about impact of
small businesses on economy and several characteristics, traits, skills that drive entrepreneur. At
last it have explained about the way background and experienced of individual hinder or foster
entrepreneurship.
MAIN BODY
LO1
Types of Entrepreneurial ventures
There are different ranges of entrepreneurial ventures from small to large scale enterprise
that operates in society. Such venture can be easily classified on basis of their scope of operation,
growth and development and legal ownership of business (Jones and et.al., 2020). Therefore
various types of entrepreneur ventures can be stated as below:
Micro enterprise: It can be stated that micro and small enterprise are growing at rapid stage as
most of the people are planning to start their own business by using their saving amount for

operation and establishment of business. Micro enterprises have employees ranging from 0-10
that work together in small workplace to render services to few individuals in society. Such
enterprise have limited or no scope of development due to less availability of financial and
physical resources to operate business. For examples: small cafe in a street or plumbers that
planned to start its own business for earning sufficient amount of profitability. There are certain
benefits of micro ventures that is required low capital, more flexibility and can takes decision
independently. But they have limited or no access to capital and earn lower profit margin by
satisfying needs of few individuals.
Small/lifestyles ventures: Such types of enterprise are established by owner
because they are more interested or love doing business in specific field. Lifestyles ventures
owner comes with new and innovative ideas to start and operates business so that needs of
diverse individual can be fulfilled. Entrepreneurs have established these firms in order to have
luxury life by earning large amount of profitability (Saseendran and Salman, 2019). Most such
business includes activities or services that are of entertainment and fun like holiday in.
Lifestyles ventures entrepreneur are independent and have full control over business operation as
they wants to attain their respective goals. Lifestyles ventures may required high amount of
capital to run and operates business so entrepreneur must have sufficient amount of fund for
smooth operation of enterprise.
Medium size ventures: These are enterprises that are mostly established with main perspective
to grow and expand its business by rendering qualitative and innovative products and services to
end customers. It has employees ranging from 0-250 that worked hard for achievement of
success and its operates its business at regional level only. Therefore it can be illustrated that
medium enterprise contributed in effective generation of employment opportunities and
increasing level of standard of living of various individuals.
Gazelle Ventures: It is another types of ventures that is found in economy which have large
scale of operation and grow and developed at rapid stage in order to earn more and more profit
margin. Gazelle ventures always offer qualitative or innovative products and services to ends
users for retaining their satisfaction and loyalty for long term growth and success of enterprise.

There are large numbers of employees that are performing their function at different stores or
office of firm located at different countries (Belitski and Heron, 2017). So, gazelle ventures
required more capital, employees to operate its various function or satisfied needs of diverse
individual living across worldwide.
Social entrepreneurship ventures: There are some enterprise which are not established with
motive to earn profit rather than to delivered several products and services to people at
affordable rates. Main aim of social entrepreneurship ventures is to provide support to various
individual or enhance their welfare. Social enterprise may be run and own by sole proprietors or
partners to make life of people better so it reinvest profit earned in business so that needs of
people can be meet and economy can grow.
Related typology of entrepreneurial ventures
There are various types of typology for entrepreneurial ventures that can be illustrated as
follows:
Survival: Firms that are established with a motivate to survive and sustain in market by
delivering small amount of products and services to few individual. Survival is typology of
micro business as they are generally operated to sustain in competitive market by delivering
products at lower profit margin so that customers may be induced to purchase from such
enterprise for satisfaction of their respective requirements.
Lifestyles: These enterprises have owner that wants to live better or luxurious life by earning
more amount of profit margin from business (Staniewski, 2016). Lifestyles is related typology of
small business as they mainly operated with minimum number of employees that is less than 50
to cater needs of few individuals.
Managed growth: There are certain firms in market that have medium scale of operation and
profit margin or managed growth that contributed in expansion and sustainability of business.
Medium size ventures included managed growth business as it also have sufficient employees
and resources for satisfaction of wants of various individual.
Aggressive growth: Organisation that are established with an motivate or aimed to expand or
grow in market by innovating products and services so that new as well as existing customers are

influenced to have purchased of products from one company to another (Randolph, Li and
Daspit, 2017). These firm plans to expand business operation by entering into new market or
different countries to cater needs of diverse individual. Aggressive growth firm is typology of
large or gazelle ventures as it also have large market share, strong brand image and customers
satisfaction because of differentiate products and services.
Difference between entrepreneurial ventures
There are key differences between various types of entrepreneurial ventures which can
be illustrated as follows:
Basis High growth firm Small/ social
enterprise
Lifestyles ventures
Scale of operation It can be stated that it
have large market
share or scale of
operation as it deals in
varieties of products
and services to
fulfilled needs of
diverse individuals.
It have limited scale
of operation as main
motivate it to sustain
its business operation
in competitive market
environment.
These are firm have
medium to high scale
of operation in
industry and operated
with an motivate to
maximise owner fund
so that it can live
better lifestyles.
Growth perspectives It has high growth
perspective due to
strong brand presence
and awareness among
large number of
customers regarding
qualities of products
and services render by
firm.
Small enterprise has
no or limited
approached for
growth because of
insufficient funds and
other resources for
operation of business
(Liñán, Paul and
Fayolle, 2019).
Entrepreneur of
lifestyles ventures
have established
company with main
motivate to grow its
profit so that it can
live luxury lifestyles.
Ownerships Such enterprise are
mostly owned and
These enterprises are
mainly owned and
It is owned and
managed by sole

managed by partners
or individual for
effective achievement
of company goals.
operated by single
individual and its
family member for
earning sufficient
profit for their living.
proprietor or
entrepreneurs that
want to have their
dream life or business.
Similarities between entrepreneurial ventures
It can be illustrated that lifestyles, high growth and small business all are established and
operated in market for earning profit margin by delivering products and services to several
individual (Schaper, 2016). In order to make optimum utilisation of resource, reduce amount of
wastages, errors or mistake companies’ needs to be effective managed so that particular goals
can be achieved.
LO 2
Micro and Small business impact on economy
Small businesses is defined as a partnership, privately owned or sole proprietorship that
has limited applicants who work from them and limited fund more than a regular seized or
corporation business. They provide daily used products or services to local people, with fixed
rate and satisfy consumers. While medium sized ventures is defined as a firm that not exceed at
least 2 out of 3 of following criteria in present and future year. They are unable to earn a lot of
profit by selling things because it has limited resources. It can be said that small and micro small
business by operating and managing their business put positive impact on economy but at
different levels such as local, regional and national as well as at international degree as well.
Decrease unemployment rate-
5.7 million Private sector companies are operating in United Kingdom they are increasing
more than more year by year. These small businesses put affect in positive manner by providing
job opportunities to local people who are unable to earn and fulfil their psychological needs.

They help to decrease unemployment ratio and offer the best job opportunities at local level.
They account for more than 33 percent of job and 21 percent of turnover.
Figure 1SMEs Impact
(Source: What Are SMEs & Why Are They So Important for the UK Economy? 2019)
They make effective contribution towards local economies by conducting this practice
which is quite beneficial for them as well as residential people (Rungani and Potgieter, 2018).
Generate GDP-
Small and medium business contributes at regional level effectively by increasing gross
development profit through market expansion. By starting new businesses SMEs generate more
GDP that help in development of economy.
Improve living standard of people-
Small and medium sized businesses by providing fair employment opportunities and
quality services, improve livings standard of individual, they contribute at regional level by
conducting effective practices.
Raise competition level-

At international level, SMEs contributed or influenced at greater level, they help to
increase competitive environment that force other firms to improve their business activities even
better. Small and medium businesses play vital role in being service providers to primary sector,
they put high pressure on companies to manage their growth and success for long. It can be said
that, these types of ventures in global economy is a quite essential role in construction of
community which is free of poverty.
Importance of business start up and small businesses in context of social economy growth-
Social economy-
It formed by a rich diversity of companies and enterprises, such as mutual’s, social
enterprises, cooperatives, foundations, paritarian institutions, cooperatives and sharing common
features and values.
In United Kingdom, small & medium business are defined as independent ventures with
fewer than 260 workers, they have an year turnover of less than 50 million or an yearly balance
sheet sum that does not exceed over 43 million. It analysed that SMEs are really very important
for growth and development of social economy (Srhoj, Škrinjarić and Radas, 2019). They create
a team of skilled and talented applicants as well as semi skilled employees to help further
business and industrial expansion in nation. SMEs contribute to economy by innovative and
bringing growth to community in which ventures is established. Every country is consist of cities
and states and has their own demands and living standards. Small and medium size businesses
play the largest role to fulfil daily life, business and social demands (Abeh, 2017). They are part
of community that is begin to aid individual and get profit, and every person deserved to be
beneficial and some do it through beginning a small venture, some do it by starting an online
services and rest of the do it through jobs and professions. In the UK, there are millions of start-
up’s and small businesses operating and running their business.
There are certain things to be understood here, for example approximately 600 million
employment would be needed worldwide over next 15 eras. Mostly, most of formal roles that are
accessible in developing markets are created by start up and SMEs. It is almost four out of 5 jobs
available in market. It can be said that start up businesses contributes to fast development of new
locations and technologies where they operate (Quingco and Leonoras, 2019). In long term, these

types of organizations create a wide portion of new employments and contribute to nation’s
economic growth. Considering that start up firms are based on innovations and creations,
potential of these businesses represents healthy middle of economy. When nation wishes to
encourage new employments in long term, it is important for it to invest into segment of firms
that create most vacancies in long period. Starts up ventures are ideal opportunity & form for
activating and employing young generation. They have ability to create more patents than big
companies, which is usually because workers are given freedom to create and work
independently.
Evaluating differences between small, medium and large ventures make to economy-
It analysed that small, big and medium sized of business are different from each other on
basis of some points, they affect economy and contribute in its development effectively. It can be
said that medium enterprises are everywhere around the world like an ice cream parlour or cafe
where people like to visit with their friends and family members. There are small ventures with
minimum workers and capital. Medium size firms are not been able to provide high percentage
of employment to local people. They do not need more workers who serve services or provide
products to consumers. It usually operates with less than 5 people and is started with less amount
of capital.
On the other hand, Small enterprises are defined as business that employs more than
medium size of businesses and have a good volume of sales than the other. They are capable to
hire 10 to 15 workers who are able to provide quality services or goods to target market. They
are exist almost in every sector and can range from convenience outlets to small production
plants. It can be a local general store or bakery that employs 10 individual or a production unit
that employs more than 50 applicants. Additional kinds of small scale ventures include law
firms, engineering, privately owned restaurants, dry cleaners and architectural organizations.
Despite of small and medium businesses, large companies impact economy and
contribute to make it better than before, by generating revenue even better and providing high
employment opportunities to residential people after Brexit. This is one of the biggest factors
that increase unemployment rate in UK and affect living standards of local people negatively.
Large companies like TESCO and other support to make economy and economic condition even

better, they recruit people who have semi and high skilled. Large firms are significant to overall
economy because they seek to have more financial assets than small or medium organizations to
conduct investigation and develop new things for target consumers.
LO 3
Skills, characteristics traits, and motivational drivers of successful entrepreneurs, that reflect
their personality
Definition of Entrepreneurs-
Entrepreneur is an person who creates or develop a new business, bearing most of the
challenges and enjoying most of rewards (Veleva and Bodkin, 2018). These are the people who
prove to be successful in taking on major risks of start up are awarded with profits, benefits and
continued progress chances. They take risk to grab the available opportunities and potential
chances within sector to enhance business performance and build strong brand image in
marketplace, which is really very important. Entrepreneur is the one who manages, organizes and
assumes risks of a venture or company. An business tycoon develops a firm around a new idea or
concept, assuming risk for their growth and success. They take decision after analyse overall
situation and take suggestions from other stakeholders who are working with them in same
company since for so long to make business more powerful.
They invest money in profitable activities or projects to increase their productivity &
profitability level even better. It can be said that tycoon is an essential driver of innovation and
economic growth, they generate innovative ideas and concepts and develop plan to convert into
physical form.
Definition of business managers-
They are responsible for measuring and supervising a organization activities and workers
as well as management practices. Business managers are accountable for managing day to day
functions or ventures operations of a firm. It can be said that an effective business managers is
one who aligns guidance and appropriate directions of enterprises to meet set aims and objectives
of company. Managers in business is in charge of all helping services for organization, they may

work all recordkeeping, office staff, supervise management assistants and assign work activities
to employees and set deadlines for goals of venture. They create and implement procedures to
enhance operational efficiencies and maintain as well as repair work area equipment in
systematic manner. They monitor work place area to assure health & safety standards are
effectively meet. Business managers should deal with outside stakeholders and consumers
problems and communicate with business executives.
They also develop work schedules and fixed budgets. They are capable to manage staff
performance and improve their current skills even better which is important and beneficial for
management in term of increasing profit margin.
Skills of successful entrepreneurs that differentiate them from managers of business-
Curiosity-
An successful entrepreneurs have appropriate skills or abilities which makes them able to
handles every situation. For example, to gain competitive benefits, successful business man use
their skill they discover new ideas, reveal potential niche chances and innovate something new. It
is contingent on being passionate about varied types of study outside of one’s comfort area. This
skill makes successful entrepreneurs different from business managers as they are unable to
discover innovative idea and implement it (Mamabolo, Kerrin and Kele, 2017).
Strategic thinking-
Another skill of successful entrepreneurs which make them different from an business
managers is strategic thinking. They are capable to learn to decompose a issue to their root and
reveal better chances for growth. Business man figure out innovative solutions and determine
low risk activities. While business manager is not able to find out creative ideas, as they only
follow existing structure developed by high authority. Manager is able to conduct practices
according to set plans developed by an entrepreneur like Bill Gates.
Critical thinking skills-
It is one of the most important and beneficial skills of successful entrepreneurs which
make them totally different from managers of companies. It can be said that progressive and
successful business man is able to build business via technological innovation or effective