Analysis of Entrepreneurship & Small Business Management (Unit 9)

This report provides a comprehensive analysis of entrepreneurship and small business management, focusing on different types of entrepreneurial ventures and their relationship to the typology of entrepreneurship. It assesses the statistics and data to understand the impact of micro and small businesses on the economy, highlighting their significance in the growth of the social economy. The report also examines the traits, characteristics, and skills that differentiate entrepreneurs from managers, exploring how aspects of entrepreneurial personality can demonstrate an entrepreneurial mindset and motivation. Furthermore, it uses examples to explain how the experience and background of entrepreneurs can both foster and hinder entrepreneurship, providing a thorough overview of the key factors influencing entrepreneurial success. The document is available on Desklib, a platform offering study tools and resources for students.

Unit 9: Entrepreneurship &
Small Business Management

Table of Contents
INTRODUCTION ..........................................................................................................................3
PART 1............................................................................................................................................3
Explain different kinds of entrepreneurial ventures and how it relates to typology of
entrepreneurship.....................................................................................................................3
Assess the statistics and data in order to understand how micro & small business impact the
economy.................................................................................................................................5
Significance of small business and start ups in growth of social economy............................9
PART 2............................................................................................................................................9
Traits, characteristics and skills of entrepreneurs which differentiate them from managers. 9
How aspects of entrepreneurial personality can show entrepreneurial mindset & motivation.11
By using examples, explain how experience and background of entrepreneur can foster &
hinder entrepreneurship........................................................................................................11
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
The entrepreneur is the person who conduct the market research and run the business
with the limited funds and resources so that they can ensure higher profitability. Sole person is
regarded as the individual who is responsible for all the risk and rewards by own that is being
generated throughout the business. This idea majorly concern with the introduction of the new
business idea rather than existing business model which also helps in the development of the
economy. There is the minor difference between the owner and the small business which is
owner tends to run their business with the known risk rather taking taking the new risk and small
business entrepreneur focuses on innovation and new offerings so that they can offer the
products in the large market. This report is conducted in two parts, wherein it will analyse the
different type of venture and their impact on small business on economy & also analyse the key
aspects of entrepreneurial mindset. Moreover, It will analyse the different environment that
hinder and foster entrepreneurship.
PART 1
Explain different kinds of entrepreneurial ventures and how it relates to typology of
entrepreneurship.
The entrepreneurial venture is the business that is launch & run by the person who is
having limited resource and high risk. The major objective of such venture is to generate higher
profitability and ensures higher sales. There are business which is majorly characterised by the
strategic and innovation approaches. There are various kinds of ventures that explained as
follows: Small business:There are the business which is having limited employees that ranges
between 0-49 and they usually get the funds from the family, friends and small business
loans ans the savings of the owners. Aim is just to earn the livelihood by earning higher
profits as they can not overtake the industry due to lower profits. Their main
consideration is to have the limited profits. Sacable start up business: It is the type of enterprises which focuses on innovation and
making some potential change within the organisation. They may face uncertainty while
running the particular business and also having the many chance to et failure as they do
not have much information about the current trends of the market. For this, they need to

conduct the market research so that they can achieve higher level of success and growth.
For example, bulb is the start up that influence the market of UK by offering its
innovative ideas that is giving 100% renewable electricity in United Kingdom. Large business:These are the enterprises in large number of employees are working in
comparison to small business. They are usually engage in offering new products
according to the taste and preferences and laws, competitors as per the customers. They
are also launching the unique products and main aim is to have the growth and enhance
their operations in order to capture the large market. This tend to have the better approach
in the market so that they can generate higher profits. Social business:these are the business enterprises which are engage in doing some
charity work or the welfare of the society. This also helps in overcoming the social needs
of the people and also increase the standards of living of individuals by their products and
services.
Typology of entrepreneurship
In this area of entrepreneurship, typology is defined as the explanation of different kinds
of entrepreneurship and these are explained as follows: Lifestyle firm: those are the type of firms which aim is to enhance the living standards of
the individual by offering the quality products in the market. On other hand, with the
consideration of its social working, it also offer the employment to the individual by
which they can earn their livelihood & enhance their living standards. Growth firms:These are the venture which is being operated with the aim of expanding
their business so that they can ensure higher growth. It is applicable for the large business
& small scale business as they are having the capacity to have more growth due to their
sole motive of earning higher profits.
Similarities & distinction between types of entrepreneurship.
Differences
Basis Small Large Social
Scale Such organization are
operated best small scale
with a used of less
amount of funds and
These business
venture operator
business at large still
which is quite use
This are the
organization which is
being operated
welfare of the

resources. amount of money for
smooth running of
the business.
society and to meet
the needs of the local
people.
Objective The main objective of
search venture this to
earn their livelihood to
live their life
comfortably.
The objective of the
company is to earn
more profit with the
help of innovative
ideas and products
These are being
formed to uplift the
local people and
their living standard.
Similarities
Basis Small Large Social
Meeting the needs Such business are
being operated to meet
the basic needs of the
individual.
These businesses are
formed to satisfy the
needs and wants of
customer at larger
scale.
These are form to
provide support to
the local people and
order to satisfy their
needs.
Society upliftment They provide there is
job opportunities to
the people by which
day can have the good
life.
Provide various job
opportunities as well
as animated product
which can satisfy the
people can live their
life comfortably.
This provides
services to the
individual in order to
improve their living
standard as well as
the society.
Assess the statistics and data in order to understand how micro & small business impact the
economy.
In the business industries, small, medium & large companies plans an significant role
within the economy as they are offering various employment opportunities for the citizen of UK.
This helps in bringing innovation and financial dependencies within the organisation. Different
type of organisations are given below:

 Micro-these are the business who is having low annual sale and profits which is more
than 5 workers that also owners also. This business environment includes the computer
services, catering and may more. Such type of business depends upon the various sector
of the nation. Small- these are the business that are privately owned by the businessperson and having
few employees with low revenue in their regular operations. It is the consideration of
self-employment & start ups. Here, the entrepreneur are having the various concept as per
the country and the number of workers that is less than 500 employees. thus, the few
investment leads to have their market share but with the limited amount of resources. Medium-These are the enterprises in which less than 250 employees are working in order
to increase the annual income and sale of the company. This leads to have the better
approaches in the market and the financial resources of the companies are generally
investors and the leaders. For this, they have to make the better decisions in consideration
to the company. Large-the organisation that comes under the large scale organisation as it has more than
250 workers and the turnover of such companies is more than 50 million pounds.
Factors which impact on the economy
The micro and small business which plays the significant role in the economy of UK and
as per the research, It was found that small scale organisations are having the high growth rates
in comparison to the other companies. Due to the immense level of support by the government to
have the small and medium venture that includes financial schemes in order to give the loan
which helps in boasting the overall venture. On of the factors that includes in the enhancement of
the economy of UK that involves the high turnover rate. Increase in the turnover of small
medium enterprises shows the growth in the economy as high sale and revenue helps in
generating more taxations and income for the business.

Another factors is export opportunities that leads to increasing the GDP as there is
exchange of foreign currency in the nation which directly contribute to the GDP of the nation.
Thus, results in enhancing economy.
Employment opportunities which is clearly mentioned in the graph and shows that small
ventures are offering employment opportunities to the people in comparison to the other business
which are large and medium enterprises. They also provide approximately 98.3% people who
have got the job which contributes in high per capital income.

Impact on various economies- Regional- These are the small & micro business which are contributing to the
development of the economy & supports to the local community in different ways. For
instance, they provide employment opportunities to the local people which can enhance
the employment rates & also leads to improve the spending power of the consumer. Local- It is stated that small business also contributing to the growth of the economy as
these businesses also providing such places which can leads to make them socialize them
for having the access to the essential goods and services. For example, coffee shop or
small groceries, medial etc. helps in fulfilling the needs of the necessary items that helps
in enhancing the living standards of the individual and also boast the society.
 National-Small-medium enterprises in UK is contributing to the growth of the economy
as they are giving employment opportunities to the people that results which helps in
enhancing the per capita income and thus, this is leading to contributing to the growth of
the GDP. It also inspires innovation which is leading to contribute to the country's GDP.
This also helps in creating new processes and also create value to the industry.

Significance of small business and start ups in growth of social economy.
Social economy plays an significant role for establishing the business that can helps in
attaining the desired objectives & goals within the set period of time. In this, new start-ups &
small business have the major role in the UK economy as they both are helpful in order to meet
the certain issues in the business environment that can be occur at the time of Brexit and this is
considered as the threat in order to accept the change in the business environment. In context to
Brexit, there are various difficulties and complexities outside the entry and also meeting the
competition that is positively meeting the overall efficiency and the decision-making of the
company. Other than this, the phenomena of Brexit also helpful for the start-ups small firms as
they are developing various employment opportunities for the people of UK which is being used
by having advanced technologies and the methods. Furthermore, small business are concern with
those business that are being operated by the individual as it helps in achieving the need and
wants for their higher success and growth in the market. This also operates the business with the
sole aim of formulating the procedures and the norms so that growth and success can be retained.
There are various benefits and significance of small business in relation to venture and this is
given below:
 Job opportunities- such businesses creating large amount of employment opportunities
by which they are indirectly supporting the local people of a nation in maximizing their
living standards.
 Improve living standards- new startups and small business helps in meeting the needs
and wants of the people in there affordable budget and also provide various job
opportunity to earn income with support and enhancing living standards.
PART 2
Traits, characteristics and skills of entrepreneurs which differentiate them from managers.
Different entrepreneur have unique set of skills characteristics and traits tell me the main
successful person from the ordinary one. There are two entrepreneurs who got huge growth and
success in their professional life by having integrated set of skills and capabilities. They are
being different from the business manager and that individual can be a successful entrepreneurs
if they are having adequate characteristics and skills which are given below:
Characteristics:

 Motivator: this is the necessary attribute of the individual by which station effectively
perform in their given job role. This helps both the entrepreneur I.e. Elizabeth Goach and
Tom Mercer why which taken carry there work in and appropriate manna and also leads
to take better decisions for the success & growth of them business. This make
differentiate from the other Entrepreneur as they are having these set of skills. Passion: it is necessary attribute of the entrepreneurs why which day can continue there
work without any hurdle or issue. With this, both the entrepreneur i.e. Elizabeth Goach
and Tom Mercer majorly emphasis on their work by which they can reach to their set
goal. This makes them different from the other entrepreneur as manager loose their
passion in the long journey
Traits
 Creativity- it is the foremost trait of successful entrepreneur innovate new ideas in order
to resolve that is problem at the workplace. Elizabeth and tom become successful as they
are having innovative thinking in order to solve where is problem and reach to their
desire goal. Leadership quality- it is the necessary trait for the entrepreneur to be a good leader
which a can give the direction to the employee to reach to the set goals. Such aspects
helps them to solve the issues of the employees so that they can move in the right
direction. This makes Elizabeth Goach and Tom Mercer different entrepreneur to have
better results within the organization.
Skills
 Confident- it is the important quality of the people which must be there to wear good
entrepreneurs so that they can make a better choice for accomplishing their venture. Both
Elizabeth Goach and Tom Mercer are more confident in getting new ideas and implement
them for their business which can help in meeting the competitive advantage of the
market. As this quality also make them different from the other business manager in
order to execute their plan properly.
 Disciplined- additionally the individual must be at discipline person so that they can
maintain the balance between personal & professional life. This skill is present in
Elizabeth Goach & Tom Mercer and due which they can concentrated on their objective
without getting diverted.

How aspects of entrepreneurial personality can show entrepreneurial mindset & motivation.
There are certain characteristics and skills of the entrepreneur which make them different
from the ordinary people. This factors also shows the motivational and the influenced mind set of
the individual which impact in the mind of the entrepreneur to become successful. OCEAN
model is being used which is having five factors that are explained as follows:
 Openness: the factor is it related to the idea in emotion of the buyer which shows the
creativity & curiosity for taking effective decision for their business enterprises. This also
has in learning new aspect and consideration to handle the challenge.
 Conscientiousness: it is related to the reliability and flexibility of the individual which
must focuses on their goals rather than to include other unproductive task in order to
reach to the desired objectives.
 Extraversion: it is the state of entrepreneur in which they have to keep talk it is energetic
and social so that they can influence the working of their employees in order to get better
result with in the organization and also leads to maintain good relationship with that staff.
 Agreeableness: the spectra shows that entrepreneur needs to be trust full and cooperative
so that they can maintain good coordination with their employees. Why which taken
maintain that trust among the employees to take better decisions and suggestions from
them for the further improvement.
 Neuroticism: it is related to the fear frustrations, anxiety, jealousy by which the
entrepreneur can react at negatively in various situation. So they need to avoid search
elements which are leading to have the spectre in order to maintain good and healthy
working environment at the workplace.
By using examples, explain how experience and background of entrepreneur can foster & hinder
entrepreneurship.
Entrepreneur are having certain set of skills by which they can run a business enterprises in
order to generate higher profit and revenue. Experience and the background of entrepreneur that
helps in getting more focus in their working and also guides towards goal. The background and
experience of Elizabeth Goach and Tom Mercer helps them to become powerful entrepreneur are
given below:
Elizabeth Gooch
Background and experience:

She has started employing at the the HSBC Bank in the very early age of 18 years & further
left the job and started working in the consultancy venture. She left the form again & collect
some small amount of funds from their family & friends. By which she started providing training
and consultancy services with the help of owning to their own company. She lacks some skill
that required information for enhancing the profitability & productivity of the company'. So she
changed their services with the software and hired Rodney Baker-Bates, CEO of prudential
financial services & recruited him as a chairperson of the firm. Afterwards she run the company
in the large market and gather some more investment from the investors.
She started her business & faced various problems such as insufficient fund no support from
the family and friends. She managed various issues and analyse the growth of their business. Our
father also told her to get employment instead of owning a business. Later she meet the CEO of
prudential financial services who give them innovative ideas related to the software. Then she
get some potential investors for their business and manage to overcome the losses in the year of
2007 and Nate and gradually gained good profit margin.
Tom Mercer
Background and experience:
Tom Mercer was a student of Cambridge University & also have the experience in the
management consultant in Baij and Co. That is also established in London. Used to work in
different companies but always think about the innovative ideas in order to start their own
venture. While going to their job regularly he noticed that the people have the several options for
lunch and dinner instead of getting good breakfast. So we got the idea of starting their business
in 2006 by blending some health drinks that includes smoothies and oats. Gradually business
speed up and company is having the employees more than 25 till 2009.
Tom Mercer having working experience as a city workers by that he knows about the
struggle of the people in getting and the breakfast while going to their work. You often goes to
work late and think of new innovative ideas. In the initial time we cut the fruit and shelf in the
night and put them in the bottles for selling them in the morning. You also sold their product in
the railway station for analyzing the demand & requirements of the customers in order to offer
breakfast accordingly.
By analysing the background and experience of Elizabeth Goach & Tom Mercer, they are
become successful in their venture by overcoming various difficulties in order to to get growth &

development in the business venture. Due to continuous focus and favourable results for the
success both of the entrepreneur have face various issue and learnt from this issue in order to
resolve them for future growth.
CONCLUSION
This is summarised from the above report that entrepreneur are the person who convert their
innovative idea into reality in order to satisfy the needs of the potential customer. There are
various types of venture such a small large social that are related to different topologies of
entrepreneurship. Startup in small venture are useful as they are contribute in giving various job
opportunities & enhancing the living standards of the society. Integrated set of skills and
characteristics that are needed for the entrepreneur to become successful in their business.

REFERENCES
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