Entrepreneurship & Small Business Management: Venture Impact

This report provides a detailed analysis of entrepreneurship and small business management, examining various entrepreneurial ventures, their similarities and differences, and their impact on the economy. It discusses the significance of small businesses and startups for social economic development, highlighting their role in job creation, innovation, and community engagement. The report also outlines the character traits and skills that distinguish successful entrepreneurs from business managers, using J.K. Rowling and Larry Page as examples. Furthermore, it explores how a person's background and experience can foster entrepreneurship. The study emphasizes the importance of small businesses in contributing to local economies through taxes and employment, and the role of innovation in driving economic growth, making it a valuable resource for students and entrepreneurs alike. Desklib offers a wealth of similar resources for further study and assignment assistance.

Entrepreneurship and Small Business
Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
LO 1.................................................................................................................................................3
P1 Types of Entrepreneurial ventures and their relations to typology........................................3
P2 Similarities and Differences between various entrepreneurial ventures................................4
LO 2.................................................................................................................................................5
P3. Micro and small business impact on the economy...............................................................5
P4. Importance of small business and start ups for the development of social economy-.........7
L O 3................................................................................................................................................8
P5. The character traits and skills of successful Entrepreneurs that distinguishes them from
Business managers-.....................................................................................................................8
P6. Aspects of Entrepreneur's personality that affect his motivation and mind set-...................9
L O 4..............................................................................................................................................10
P 7 How Background and experience can foster entrepreneurship...........................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneurship is a process of self-analysis, designing, starting and managing own
venture, which at first is a small business. Entrepreneur grabs the opportunities that are
prevailing in the current market, analyzing them, and making its best use. This report includes
different entrepreneurial ventures and their similarities and differences. Further, this study
discusses about the significance of small business, traits of entrepreneurs that differentiates from
business manager. J.K. ROWLING and LARRY PAGE are selected for this study, their skills
and trade are described in this report. Furthermore, assignment explain how experience and
background of person influence the entrepreneurship.
'Make it work' is a consultancy firm that was founded in 2013. It was started by two
brothers when they saw entrepreneurs struggling for the survival.
LO 1
P1 Types of Entrepreneurial ventures and
their relations to typology
Micro Enterprise: A micro
enterprise is that enterprise which employs
less than 10 people. It is started with a very
small amount of funds and it generally
provides goods and services to the local
areas. There are various examples of micro
enterprise in United Kingdom, like: Lawn
and landscaping companies, Street vendors,
Independent mechanics etc.
Small Enterprise: Small enterprise
are those enterprises which have less than 50
people working in it. Some examples of
Small scale enterprise can be barber shop,
small retail shop etc. The investment here is
basically on machinery and plant on
ownership, lease or hire basis.
Medium enterprise: These are those
businesses which have less than 250 people
employed. There are various examples of
medium-sized enterprises. Some are: John
Good Shipping, which is a logistics
company; Giacom, which is an IT company
and many more are there. These industries
are mostly run by millennials.
Large enterprise: Large enterprises
are those enterprises which have their office
in more than one country. They employ
thousands of people and need very big
investment. Example: Tesco. It is a large
scale industry with its headquarter in UK
(Zahra and Wright, 2016)
Managed growth firms: These
firms are those which grow faster than the
average company in the economy. There are
no rules of defining growth for this company

but have more revenue annually compare to
other same industry. The reason can be
efficient team, great mentor etc (Urbano and
Aparicio, 2016)
Aggressive growth firm: These are
those firms whose demand increases at a
very high rate. The risk here is also more but
returns are also very high in comparison to
other firms. It uses those techniques which
are unique and not easily acceptable.
Public sector entrepreneurship: It
is new to the economy. It includes those
firms which are working with government to
facilitate the demand of public. It means that
the public servant should think like an
entrepreneur.
Typology
Survival firm: The aim of survival
firm is just to stay in market and face the
company's financial duties. Many company
employ survival entrepreneurship, just to
stay in market for long term. The work of
survival firm is to cut costs of company,
reduce labour turnover and more. It is
adopted by small and micro business as by
this way they sustain in the market and gain
reasonable profit.
Lifestyle firm: This type of firm
undertakes all those activities which are
beneficial for the owner. Like: activities
which increases the income of owner, or the
activities which the owner enjoys etc. These
firms are risky. Example: gas station, mini
markets. This typology is adopted by small
and medium size business units. By this way
they become able to generate reasonable
amount of profit.
Social enterprise: These are those
firms whose major aim is welfare of the
society. They are generally non-profit
organizations. Some social enterprises are
NGOs, Cooperative houses and many. These
enterprises are always there to help the
individual who is facing problem in their
business (Neumeyer and Santos, 2018). This
typology is adopted by public firms as these
enterprise continuously work for serving the
nation best.
P2 Similarities and Differences between
various entrepreneurial ventures.
Similarities
Funding from some venture
capitalist: All the entrepreneur venture
needs funding for their business. Some
needs funds to start their company and some
need funds to run their enterprise. Few
entrepreneurs have their own funds and
mostly all take loans from the big
organizations and banks.
Creative idea: All the entrepreneur
venture should be creative and should
always be ready to take some risk to create

something new if needed. A successful business is always started by a new and
creative idea (Morris
and et.al., 2018)
Difference between
various entrepreneurial
ventures
LO 2
P3. Micro and small
business impact on
the economy
Small businesses are
privately owned
corporations having less
revenue than a medium
size business. Small and
micro businesses usually
defined as a business
having people fewer
than 250. Small and
micro businesses have
made a great impact on
UK's economy. Small
businesses contribute in
economic development
in many ways like
giving people
opportunities to achieve
financial independence,
encouraging innovation
and creates employment
opportunities.
MICRO SMALL MEDIUM LARGE
1. Annual
growth rate.
Less than 5%
growth rate
annually.
The growth
rate is slightly
fast.
It grows
faster
comparing to
small-
business.
The growth
rate is rapid
in large
organizations.
2.
Organizational
Structure.
As such no
organizational
structure.
Simple
organizational
structure
Functional
organizational
structure
Functional,
product-based
organizational
structure
3.
Management
style.
Reactive Tactical Strategic Proactive
4. Managerial
skills.
It needs
selling skills.
It needs
operational
skills.
It needs
strategic and
delegating
skills
It needs
planning,
accounting,
leadership etc
skills
5. Technology
Investment.
Basic
technology is
needed
Some
technology is
needed to run.
Investment is
high
comparatively
Investment is
very high in
large
organizations.
6. Source of
finance.
Mostly Self
financed
Self financed,
family, Bank
Self financed,
bank,
investors
Public
markets,
private
investors,
banks.
7. Reward Weekly or
daily income
Salary, bonus Salary,
incentive,
bonus
Capital Gains,
Equity(Burns,
2016.)

There were around 5.6 million small
and micro businesses at the start of 2018.
Around 99.3% of businesses are small and
micro businesses of all private sector
businesses at the start of 2018. These
statistics shows that small and micro
industries played a major role in
development of an economy. Small and
micro businesses cover all the major markets
in UK which helps the economy in
developing employment opportunities. Total
employment in small and medium scale
industries was 16.3 million, which was 60%
of all private sector employment in UK. By
offering this much of employment
opportunities, small and micro businesses
plays a major impact on economy. Small
and medium businesses helped in economic
growth by providing employment
opportunities to the people who were not
being employed by larger corporations.
Figure 1: profit of SMEs
(Source: UK SME Data, Stats & Charts,
2019)
Small and micro businesses are more
likely to employ less skilled workers and
individuals who don't have any prior
experience of the field. These practices
benefit the economy in two ways. Firstly,
small firms employ workers who have
difficulty in securing jobs, thereby reducing
the duration of frictional unemployment
among these individuals. Secondly, the
employment of these workers raise their
productivity by giving them on job trainings
and work experience.

The combined annual turnover of
small and medium businesses was around
£2.0 trillion, that was 52% of all private
sector turnover, which clearly shows that
more than half of the business turnover is
being generated by small and medium
business of UK. Small and micro businesses
contribute to local economies by bringing
growth and innovation to the community
where business is being established.
Small and micro businesses
contributes a lot towards local government
funds through taxes, which helps the
economy financially. When consumers are
patronizing local small and micro
businesses, they are essentially giving
money back to their local community.
Innovation was the major element in growth
of economy. Small and micro businesses
brings innovation in market which leads to
high productivity because of consumer
preferences and consumer satisfaction.
P4. Importance of small business and start
ups for the development of social
economy-
Small businesses and local start ups
play a key role when it comes to economic
growth of rural areas and even urban cities.
They generate employment and also makes
people self sufficient with a mere minimum
investment. The main reason for the growth
being that small businesses pay taxes to the
government and that leads to increase in
GDP of the country.
Research has shown that the private
sector business in the United Kingdom are
on its all time high and as of now there are
nearly 5.5 million private sector enterprises.
The government's contribution cannot be
ignored as they have provided these
entrepreneurs with every possible help that
they could (Walsh and Passerini, 2016).
Importance of growth of small scale
business are-
Creation of Employment- As stated
earlier, the biggest advantage of Small scale
businesses and startups is that they create
employment. Local businesses not only
make people self sufficient, but they also
create jobs for other people in the society.
With their wages and salaries, the
employees purchase products and services.
Thus, the money rotates in the economy
itself and makes it even stronger.
Innovation- Every company starts
with an idea, but it is the greatness of the
idea that transforms the destiny of the
business. Multi national companies like
Amazon, Facebook, Apple and google all
started in small places but with great ideas.
An idea must be unique, creative. If the idea
is special than everything else follows.

Once the company grows, it generates more
revenue, as a result more taxes are paid,
more employment opportunities are created
and also it fulfills its social responsibility.
Engage significant no. of people
including one from the disadvantaged
groups- The true contribution to the social
economy will be done only when there is
balanced regional development i.e.
contribution by each and every member of
the society without any partiality. The
disadvantaged people and people with
physical disabilities should be assigned task
according to their capabilities.
Meeting social purpose- Every
business man has to be creative and unique
in order to move forward. Contribution to
society is done in more than one way but the
major contribution involves finding unique
solution to the problems of society. It is the
moral duty of every business to fulfill its
social obligations towards society because
every business is indebted to society as it
uses its resources.
Leading the way on diversity- Local
businesses in European and Asian countries
give equal opportunities to women and
minorities to work with them so that they
can express and implement their skills as
well. Diversity also leads to unity and
provides balanced development.
L O 3
P5. The character traits and skills of successful Entrepreneurs that distinguishes them from
Business managers-
Skills and Characteristics of Successful Entrepreneurs-
Risk Takers- The synonym of an entrepreneur is risk bearer. He must be willing to take
risks, if he is not confident enough about his risks and objectives then the company won't be able
to survive. Larry page has always believed in risk taking, but these risks were properly calculated
and analyzed before implementation (Walsh and Passerini, 2016). Whereas business managers
do not take any risk they try to avoid risk so that company’s goal can be accomplished.
Motivation- If an Entrepreneur wants to achieve the company's goals and objectives then
he must be willing to push himself to the edge. Larry page has motivated personality or skill The
motivation and dedication of both Larry Page can be seen in their works.
Flexible- Every business operates in a dynamic environment. Hence, an Entrepreneur
must have flexible mind set, Larry always be ready to adopt, change as per the working
environment and requirement of business (Memili and et.al., 2015).

Communication skill: Larry has good communication skill which has made him unique
from other business manager, by this way he has built up strong relations with other people those
who can support her in her career growth. Business manager only interact with employees they
never communicate with investors in order to get more funds (Schreier, 2018).
Skills and characteristics of JK Rowling
 Technical skill: He is having great technical knowledge which has made him successful.
 Presentation skill: JK Rowling can present himself in very effective manner that is the
reason he has established and expanded business successfully, business managers has
limited access to present themselves.
 Positive attitude: he always behave positive in complex situation which encourage others
as well.
Difference between Successful Entrepreneur and Business Manager-
Entrepreneurs are born leaders, they have the inherited quality to solve problems. Their
problem solving skills help them to generate creative ideas and later on convert that idea into
successful business model. While on the other hand, managers have the job to manage the
business that has been created by the vision of an Entrepreneur. (Baum, 2015)
P6. Aspects of Entrepreneur's personality that affect his motivation and mind set-
Crucial Personality traits of an Entrepreneur are-
Openness to experience- The word speaks for itself as it is concerned with openness to
experience, openness to learn, openness to fail and then again bounce back to success. He must
also be open towards implementing new ideas and changes in the organization as per the
conditions. This involves being, clever, clear, creative and innovative. For instance, both Larry
JK Rowling are open minded, they both understand and emphases on new ideas which make
them innovative and creative. By this way they can make correct decision. This reflect their
mindset and motivation to deal in complex situations.
Conscientiousness- It means being able to act sanely and in a socially accepted manner. He must
not be instinctive, he should analyze the consequences of his actions in advance and then
accordingly take decisions. Larry and JK Rowling both are successful entrepreneurs, they
understand emotions of others which support them to build strong relationship with others and
meeting the interest of stakeholders. This reflect their personality to manage people and run
business for achieving long term goal.

Extroversion- It means moving forward in both professional lives. An entrepreneur must
be an outgoing person that means that he should have the skills to communicate, interact and
network with different people who are important to his business. Larry and JK Rowling both
have attitude of extroversion, this thing motivate them and help them in finding new
opportunities.
Agreeableness- A crucial trait of an Entrepreneur must be that he should be a great
listener. He must listen to the people around him as well as outside the company. It further
includes skills like being patient, approachable and a bit diplomat. Larry and JK Rowling
understand view point of others and make each decision after evaluating it properly. This
personality of both aid in running business successfully and it also shoe their mind set to run the
firm.
Neuroticism- This personality trait defines basic human feelings of fear, anxiety,
depression which is common for every person to face. Excessive neurotic attitude of
entrepreneur may hamper the working environment of the entire organization. Therefore, it is
important to be positive, thick skinned, calm and remain optimistic even in the toughest of
situations. (Jain and Jain, 2019).This personality of Larry and JK Rowling assist in always
creating favorable conditions for the business and finding new opportunities for the growth of
business unit.
L O 4
P 7 How Background and experience can foster entrepreneurship
A successful journey has some difficult paths. For understanding those challenges we
will study about, two famous entrepreneurs:-
J.K. ROWLING
Joanne Rowling, known by nickname as J.K. Rowling is a British author. She is the
inventor of the creative series 'Harry Porter' which got her multiple awards and recognition, over
500 million copies were sold. She is the great person and have faced huge difficulty in her life.
After failing in her married life she has learnt that failure cannot stop a person, this thing has
motivated her and she has started putting hard after that. She has suffered from depression as
well but she overcome such bad situations and this learning and experience have made her able
to work hard and fulfil her dreams. She spent her time mostly sitting in a local cafe, writing.
After 5 years of struggle her first book was completed. 12 best publishers rejected her book

saying it is too long to see, children won't be interested is watching this. She was disappointed
and felt miserable. Finally, Bloomsbury said yes to publish her book. The book was a hit. But her
believe that failures can't stop you and one should follow their passion and never give up on their
dreams keep her going. This make her a successful entrepreneur.
LARRY PAGE
Lawrence Edward Page, one of co founders of Google is an internet entrepreneur. He is
the CEO of Alphabet Inc. He is also the co founders of Page Rank (search ranking algorithm) for
google. Some incidents influenced him to become a change agent. Page's grandfather was a
labour at a Chevrolet Plant in Michigan., labours were beaten by their superiors, neither
government took care of workers safety nor unions bargain about the working conditions and fair
wages. Page once told about this in his interview that his grandfather's story encouraged him to
make google. Educational techniques of Maria Montessori influenced Page and helped him
design Google's work system. She believed in child's liberty or freedom. She believes in
improving individual so the society can develop. Students were asked to take real world
challenges and work on small scale businesses. Tesla's story influenced Page to make new
technological advancements. The last influencer was a program Leader shape. These all phases
influenced him towards making Google a successful and a leading business house. Larry after all
the struggle stands on what he believes in become a successful entrepreneur.
CONCLUSION
From the above study we have learned that the economy of United Kingdom has been
affected by micro, small, medium and large enterprises. There are various similarities between
different entrepreneur ventures. Every entrepreneur should have will power, should be creative
and should face the challenges. There are various differences in entrepreneur ventures also.
Some differences which can be seen is different annual growth of all the ventures, different
managerial skills required to do a business, various sources of finance, technology needed by
different business and at the last the reward which the company get from taking risk and doing
all the hard work. There are various typologies of entrepreneurial ventures like survival firm,
growth firm and more. At last, it depends upon entrepreneur to run the business and make it
successful.