Entrepreneurship & Small Business Management: An Analytical Report

This report provides a comprehensive analysis of entrepreneurship and small business management, exploring diverse entrepreneurial ventures and their relation to entrepreneurship typology, examining the similarities and differences between different entrepreneurial ventures. It assesses and interprets relevant statistics and data to illustrate the economical influences of micro and small businesses. The report also investigates the contribution of small and start-up businesses towards the growth of the social economy and delves into entrepreneurial traits, skills, and characteristics, highlighting entrepreneurial behavior as a motivating factor for a quality mindset. Furthermore, it provides practical examples that influence entrepreneurship, offering a holistic view of the subject matter. Desklib offers a platform for students to access this and other solved assignments.

Assignment Name: Entrepreneurship and Small Business
Management
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Table of Contents
Introduction.................................................................................................................................................3
Task1: LO1..................................................................................................................................................3
1.1 Analyzing diverse entrepreneurial ventures emphasising their relation with entrepreneurship typology
[P1]..............................................................................................................................................................3
1.2 Exploring similarities and differences between different entrepreneurial ventures [P2]........................4
TASK 2: LO2..............................................................................................................................................7
2.1 Assessing and interpreting relevant statistics and data to illustrate economical influences of micro and
small businesses [P3]...................................................................................................................................7
2.2 Contribution of small and start-up business towards the growth of social economy after “BREXIT”
[P4]..............................................................................................................................................................8
3.1 Carrying out research to determine entrepreneurial traits, skills and characteristics [P5]....................10
3.2 Entrepreneurial behaviour as a motivating factor for a quality mindset [P6].......................................11
Task 4: LO4...............................................................................................................................................12
4.1 Practical examples that influence entrepreneurship [P7].....................................................................12
Conclusion.................................................................................................................................................14
Reference List:..........................................................................................................................................15
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Introduction
An entrepreneur is the one who assumes the risk of the business. He is the one who organizes
and manages firms. An entrepreneur believes in optimistic attitude. He is the person who
converts the new idea into a successful innovation. The concept of entrepreneurship carries a
wide range of scope. On one hand, an entrepreneur is the person who made changes create
innovation and left footprints for the younger generation on the other hand entrepreneur is the
person who works for himself. Entrepreneurship has become significant today as it helps to
develop managerial capabilities. Other significant area includes ameliorating living standards for
the people, enhancement in economic development. Organization formed because of a good
dynamic entrepreneur. Entrepreneurship is influenced by the plethora of factors, such as market
situation, political atmosphere. The victory of an entrepreneur depends on the economic and
social condition of the country. Market situation globally and nationally influences entrepreneur
as helps to clear entrepreneur regarding recent trends and needs of people. Perseverance, pro-
activeness, self- introspection habits, risk-taking attitude are the core competencies of
entrepreneurs.
Today a wide array of innovation has been brought in the field of education, health sectors. An
entrepreneur promotes capital formation. It enhances a wide array of employment opportunities,
increases country’s export trade. It stimulates wealth creation and the rise of GDP rate and per
capita income.
Task1: LO1
1.1 Analyzing diverse entrepreneurial ventures emphasising their relation
with entrepreneurship typology [P1]
An entrepreneur is someone, who starts their business using the limited amount of resources and
also plans and takes all the risk and the reward of the venture. The idea is usually a new
recreation with product and service rather using a business model, which is existed. Such type of
ventures always targets huge return with the huge amount of uncertainty. The entrepreneur
always wants to take the risk in both financial safeties for an idea they want to capital on
uncertain ventures. As said by Kirzner (2015) an entrepreneurial venture arranges for the capital,
stocks to be utilised, location to manufacture and good and skilful employees by the help of an
enterprising individual to produce smooth running services.
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The other important aspects are sales, distribution, and marketing which the help of an
entrepreneur is controlling. It is also concentrated on giving services as an advice to the new and
mid-stage companies. According to Bridge & O'Neill (2012), many ventures are to be invested
by one or more than one individuals as the individuals expect it will bring gain in a financial way
for all the backers. They are being created based on market demand or if there is the shortage in
the supply. The entrepreneur uses this opportunity to create services and gains the huge amount
of wealth. As said by Santos (2012) the entrepreneur always looked as a leader in the business
and able to invent some new ideas and processes of the respective business.
They are always able to perceive new opportunities in the business and unveil positive
perception. As said by Shane (2012) to become a successful entrepreneur one has to get
motivation, which means that they are confident enough to take the risk to be able to gain profit.
One has to be creativity so that they can create new ideas. According to Storey (2016) one has to
be versatile that is relying on the staffs. One must have skills in the business to set up the internal
systems, One can able to tolerate risk and able to have a vision for success in the company. As
per said by Baum (2014), there are five types of entrepreneur which is known as the topology of
entrepreneurship, they are the sceptical entrepreneur, the copycat entrepreneur, the research
entrepreneur, the determined entrepreneur, the accomplished entrepreneur.
In the case of sceptical, they see the uprising of others and start to examine to check for any
break for success. In the case of the copycat entrepreneur, they check the uprising of others and
try to do the exact same process like the others. As coined by Butler (2012) the research
entrepreneur researchers all possible scenarios and starts a business using the outcome. As said
by Martin (2013) et al. the determined entrepreneur is those who want to start a business without
copying any others process. As coined by Venkataraman et al. (2012), the accomplished
entrepreneur is those who has gone through all the levels of entrepreneurship, also had built
business and has been able to reach their success. Entrepreneurship is being driven and have
been established by the behaviours which h exhibited by entrepreneur. There are risk takers, who
seize an opportunity, which may not be able to identify the necessary risk. It creates business that
able to grow to large enterprise.
1.2 Exploring similarities and differences between different entrepreneurial
ventures [P2]
Some of the similarities and differences between the entrepreneurial ventures are given below
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Lifestyle Entrepreneur Serial Entrepreneur
Difference Difference
1. A person, who generates a business
through altering their personal lifestyle for
their purpose
1. A person, who comes up with new
innovative ideas continuously and be able
to start a business
2. They are mainly focused on the people by
providing life rewards so that they can
enjoy and must have the passion about their
activities
2. They mainly focus on the functioning,
which is being done day to day.
3. They usually do not focus on making
profits and they are determined to stay as
entrepreneur
3. They mainly focus on making profits
and they are prefer to progress research
entrepreneur
4. This business has an up growth because
it is made according to the passion of the
individual for what they are doing.
4. Sometimes, there is a drawback that the
entrepreneur sometimes gives another
individual to handle the business.
5. A lifestyle entrepreneur can able to come
up to new ideas according to their lifestyle
and they can’t give responsibilities to
Other.
5. A serial entrepreneur can able to come
up with new ideas and can give new
responsibilities to someone and can move
to create new other idea.
Similarities Similarities
1. They started their business by the help of
their new ideas.
1. They started their business by the help
of their new ideas.
2. They are used to take risks on both
security and financial ground to start a
business using their own ideas according to
their passion
2. They also take risks in both in terms of
security and financially to start a business
for financial progress
3. This company also can have small
business by enabling different approaches
for running it
3. It can able to have small business and
use different approaches for running their
business.
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Social Entrepreneur Techno Entrepreneur
Difference Difference
1. In case of social entrepreneur, it
observes issues on the social like
hunger and forming the business
according to the social needs
1. In case of techno entrepreneurs, they usually
start a business using the idea of new technology
like smart phones to gain profit
2. Social entrepreneur pursue
funding through the sources, which
are not being associated with
business ventures
2. Techno entrepreneur prosecute their funds
through the sources, which are being associated
with business ventures
3. In case of social entrepreneur, they
always view their profit in the
business largely by the means of
sustainability
3. Techno entrepreneur always aim for gaining
and maximizing profit from the business for both
the stakeholders and investors
4. Social Entrepreneur is actually
falls under the topology of research
entrepreneurship where the
entrepreneur starts a business
according to the researches the social
needs of the individual
4. Techno Entrepreneur falls under the sceptical
entrepreneurship where the entrepreneur studies
the technology of the other company and updated
one to start a business
Similarities Similarities
1. Social Entrepreneur takes the risk
both financially and security to start
a business.
1. Techno Entrepreneur takes the risk in both
financially and security to start a business.
2. Social Entrepreneur renovate new
ideas to create the business for
making profit.
2. Techno Entrepreneur also recreates new ideas
in terms of technology to create business and gain
profit according to it.
3. They do take the role of services, 3. This entrepreneur also takes the role of all the
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researching raw materials etc parts of the services, decision making etc.
Entrepreneurs Owners manager
Difference Difference
1. The entrepreneurs do not help
communities; it only looks for their
own development.
1. The owners manager can
create ideas which can help the
community
2. They can come up with new ideas
which are not being tested,
diagnosed or worked through.
2. Owner-managers can make
calculated decisions where the
outcome is clear.
3. Entrepreneurs are risk takers 3.Owner-managers are tactical
and operational thinkers.
Similarities Similarities
1. Entrepreneurs are committed to their
business
1. They also committed to the
business
TASK 2: LO2
2.1 Assessing and interpreting relevant statistics and data to illustrate
economical influences of micro and small businesses [P3]
Before having information on micro and small business enterprises, it is meant to be
recapitulating the knowledge of micro and small enterprises. According to Oni and Dania (2016),
micro enterprises are those whose investment cannot exceed rupees twenty-five lacs and small-
scale enterprises are those whose investment cannot exceed rupees five hundred lacs. Micro and
small enterprises play vital role in the development process of economic and social development
for ten major countries. They invest mainly in the production of goods for plants, machinery, and
equipment. Ten major countries lay more stress on small-scale enterprises for economic
development since they outvoted large-scale enterprises both in respect of the share of labor
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forces and quantity of establishments, micro and small industries form an integral part of
economic development.
Today small business plays a key role in the economic development of the country. According to
Vox, small business enterprises accounts for 55% of all jobs and 66% of all newly produced
jobs. Creating jobs and mobilizing wealth is the integral factor for the economic development of
the country. If more people will earn commendatory income then more wealth will be
accumulated, eventually promoting capital formation. Micro and small industries lead to an
escalation in GDP rates. Micro and small business make a significant contribution towards GDP
growth because of their presence in large numbers and through their process of income
generation. In addition, small firms are effective in producing intermediate goods, the goods that
are used to make other goods. The process of entrepreneurship provides an opportunity for those
persons who feel they are blocked in any organization. Micro and small industries provide are
the best options for any person who wants to venture startup business. Implementation of micro
and small business mitigate the problem of inflation. Micro and small firms have greater
flexibility in coping up their production levels and able to adjust fluctuations on demand. They
act like a buffer to sudden demand expansion without raising the prices of goods. Reduction in
inflation means the slow rising of the price. Fall in inflation rate increases more export among
countries. When countries export more than import, the problem of current account deficit will
get mitigate. Now, as opined by Ranciere et al. (2012) current account deficit has a direct effect
on the economic and social development of the country. These all factors such as current account
deficit, wealth accumulation, promotion of capital formation, reduction in abrupt inflation
contribute to the mercantile development of the country. The small business able to provide
technical innovation also provides employment, also provides competition to the market, also it
helps in filling the society and other business needs. Small scale industries plays very important
role in GDP. The failures of small business are lack of expert people, poor financial control. A
micro business firm is made with four or five employees.
2.2 Contribution of small and start-up business towards the growth of social
economy after “BREXIT” [P4]
The term “BREXIT” denotes British exit. British exit refers to withdrawal of Britain from the
European Union as a member. According to Vox, Britain had been the member of European
Union since 1973 but recently series of complications arises. The European central bank’s
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cataclysmic way of handling the post-2008 economic recession caused sky-high unemployment
in Greece and Spain. As a result, Britain lost its confidence towards European Union. Though
conservation Prime Minister David Cameron was against this withdrawal act, other members of
his party including former London member Boris Johnson supported this act.
After its implementation, an immediate debate happened between pros and cons. Some were of
the view Brexit caused epochal economic disaster whereas some claimed well economic
opportunity grew during this period. As opined by Dhingra et al. (2016), in the long run, Brexit
will have negative implications.
Here comes the role of small and start-up business in accelerating the growth of a social
economy. Small businesses contribute to local economies by bringing enhancement in the
growth and innovation in the community in which business is established. Sometimes, large-
scale enterprises depend upon small-scale enterprises for their business activities through
outsourcing. Small-scale business gifted with the quality of adapting and embracing quickly with
the changing economic atmosphere. This happens because small-scale businesses are customer-
oriented. Small-scale business attracts loyal customers, which means during tough times small
scale business stay afloat. Hence, it contributes to the growth of local economic development.
When customers are praising small enterprises, they are essentially giving their black money to
their local communities, which in turn generate the higher level of revenues. These mean
business will pay higher taxes including local taxes, which can be effectively used for local
police or fire department or schools.
Hence, small scale and startup make a big contribution towards the development of social
economy. As said by Santos (2012), small-scale industries and startup companies do not stay
small forever. Companies such as Soft cat, Jb Global grew to large corporations. Moresand is the
prime example of how a small idea can change the whole world. Being a large corporation, it
provides employment to millions. Startup entrepreneurship needs to be encouraged for
innovation techniques, which will help in the acceleration of productivity. Startup companies
provide job to thousands of youth. Apart from that, it encourages research-innovation system.
Hence, both small-scale industries and startup companies play a key role in shaping economic
progression of the country. Small business in UK has been accounted for about 99.3% of the
private sector part of the business in year 2016. The combined annual turnover of SMEs was
about 1.8 trillion pounds, which is the 47% turnover of the private sector. Employment in large
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business was 10.5 million and turnover is about 2 trillion pound which accounts of about 53%.
Private sector business is not evenly distributed in UK.
3.1 Carrying out research to determine entrepreneurial traits, skills and
characteristics [P5]
Entrepreneurship can be defined as a venture to start a business that is initially small but has
bigger plans. As opined by Bridge and O'Neill (2012) that, like other business, it has risks and
need of capital. However, the only difference is that entrepreneurship is all about introducing
something new or innovative into the market. It is a business of course; however, a business that
has strong desire to do something different and make a place in the market.
An entrepreneur is slightly different from an ordinary business manager. The entrepreneur has
some skills that are above par as compared to an ordinary business manager. As said by Landes
et al. (2012), it is the passion of an entrepreneur to start-up and leads a full-fledged business.
The first quality that is required by an entrepreneur is his money managing capability. Initially,
in most of the start-ups, the capital is limited. As suggested by Baum et al. (2014) an efficient
entrepreneur knows how to deploy his capital in the most economic way, his motive requires
being raising the profitability of the start-up with time. the entrepreneur should know every detail
of all the money that goes out as well as all the money that comes in.
Another quality of an entrepreneur that makes the difference is his knowledge about investors.
Every business requires money, and a good entrepreneur can analyse, which organisation(s) or
person can sponsor his business. The entrepreneur needs to be very convincing to such investors
so that the investors can invest in the start-up.
Any start-up has a lot of problems and shortcomings. These are initially small and very
centralised. As a result, there is no separate management team, finance departments and other
departments in the beginning. Therefore, the founding member’s quality of being calm in a
frustrating moment is essential. This stress busting mindset is also a differentiating quality of an
entrepreneur.
Perfection is never required in business paradigm. An entrepreneur knows his skills and his
weaknesses. This makes decision making easier in the case of the entrepreneur. A business
manager is simply executing his duties because it is an already ventured area and it has enough
grips in a market. However, an entrepreneur is passionately venturing something new and trying
to profit by introducing this innovation in the market. A business manager needs to have strong
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management skills, whereas an entrepreneur has leadership qualities to manage his staffs because
there is a sheer need to train and guide the workers in the context of his new innovative business
idea.
The challenges for a business manager is very less when compared to an entrepreneur. A
business manager already has his customer base and all that is required is to maintain a good
quality of the service provided by that firm. However, the entrepreneurs generally need to
research their potential customers for the new product or service. They always have to provide
extra benefits to grab a position in the market. An entrepreneur has the quality to analyse latest
trends and real-life challenges. With a lot of research about the market needs they upgrade their
products whereas in the case of simple business the up gradation speed is analysed to be slower
that a start-up. The common traits of entrepreneurship contains orginal and independent thinkers
, very confident, ris takers and other traits like self employed parents, self educated etc. The main
characrestic for successful entrepreneur can only be possible when it is creative and innovative,
creating new products, and positioning in the market. Many skills are used in the
entrepreneurship can create opportunities to it.
3.2 Entrepreneurial behaviour as a motivating factor for a quality mindset
[P6]
It has been globally reported that most of the firms these days are more concerned with survival
in the market rather than progressing and growing. The reason behind this is the lack of
entrepreneurial qualities.
As opined by Miller et al. (2012), entrepreneurs are people with a positive mindset. The
personality possessed by them is different from the others. Psychological studies and research
back up this fact.
The study requires the ‘BIG FIVE model of personality’ to develop its findings. A global
research in which both entrepreneurs and other managers participated showed that in many traits
entrepreneurs were above par.
Openness
It is the quality by virtue, of which an individual has likeliness to learn new things. A trait
reflects creativity and better imaginative powers in an individual. In this point, the entrepreneur
scored higher than the ordinary business managers did. It concludes that the entrepreneurs are
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more open to new things and this makes them more innovative and knowledgeable than the
others.
Conscientiousness
This is a personality trait by virtue of which an individual is more reliable as well as organised.
In this test, the entrepreneurs again scored higher. This analysis makes it pretty clear that
entrepreneurs are more hardworking as individuals as well as more goal-directed and dependable
than the other business managers.
Extraversion
These individuals derive work efficiency by interacting with others. In this test, entrepreneur
scored higher again. It can be suggested that entrepreneur has better team efficiency and
communication skills as well.
Agreeableness
An individual is caring and forgiving by virtue of this trait. The entrepreneur scored lower in this
test. This is challenging to stay in the market and there is an utter need to turn more agreeable to
meet the goals more conveniently.
Neuroticism
This trait in abundance leads to negativity. In this test, the entrepreneurs scored low. However,
this is a positive thing because lower score in this test makes the entrepreneurs less vulnerable to
emotions like anxiety, anger, depression and other negativities. On the other hand, it also reflects
that the ordinary business managers are more stressed out during their job execution as compared
to the entrepreneurs and in this context, it can be stated that individual mental performance of
entrepreneurs is better than the business managers.
As a whole, it can be summarised from the section that the entrepreneurs have higher confidence
levels, more trustworthy, creative as well as hard working. All they need is to grow as
individuals that are more agreeable. The entrepreneurs have a positive outlook to business, which
keeps them motivated. They are passionate towards their ideas and this keeps them motivated in
work-field. The hard work put in by the entrepreneurs are analysed to be more than the
individual business managers, this, in turn, makes them more productive.
The stress analysis also gives positive statistics in favour of the entrepreneurs. The person
reflecting entrepreneurial qualities stay motivated and less stressed. This adds on to their mindset
getting positive and healthy day-by-day. In the personal characteristic of the Entrepreneurship on
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