HND Business Unit 9: Entrepreneurship and Small Business Report

This report provides a comprehensive analysis of entrepreneurship and small business management, exploring various types of entrepreneurial ventures, including small, medium, and large ventures, as well as lifestyle, speculative, and survival ventures. It highlights the similarities and differences between public and private entrepreneurial ventures, focusing on management skills, organizational structure, and economic motives. The report also examines the impact of micro and small businesses on the UK economy, emphasizing their role in employment and economic growth. Furthermore, it discusses the importance of business start-ups in fostering social economic growth and the characteristic traits and skills of successful entrepreneurs, using Simon Cowell as an example. It assesses entrepreneurial personalities for motivation and explores how background and experience can either hinder or foster entrepreneurial success, with Richard Branson's experiences as a case study. The report concludes with a summary of the key findings and insights into the dynamic world of entrepreneurship.

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
Types of Entrepreneurial Ventures..............................................................................................3
Similarities and Differences between Entrepreneurial Venture..................................................4
Impact of Micro and Small Businesses on Economy..................................................................5
Importance of Business Start-ups in growth of Social Economy................................................6
Characteristic Traits and Skills of Successful Entrepreneurs......................................................6
Assessment of Entrepreneurial Personality for Motivation.........................................................7
Background and Experience Can Hinder or Foster Entrepreneurship.........................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Entrepreneurship is the ability of a person which provides better information to make
decision which increases the potential of business organization to compete in the market
effectively. Increase in the market competition it is very essential for entrepreneur to develop
effective strategies and gain better knowledge and skills which helps to increase performance of
business enterprise to gain higher profit margins effectively. This report provides brief
information about types of entrepreneur ventures which have some similarities and differences.
Report describes impact of SME on economy of UK and importance of business start-ups. It is
highlighted that characteristics, traits influence success of entrepreneurs which helps to develop
effective personality for motivation.
Types of Entrepreneurial Ventures
It is very essential for entrepreneurship to analyse all the types of ventures which can be
best compatible with entrepreneurial typology to attain better outcomes and compete in the
market effectively.
Small Ventures
Small venture is formed with the purpose to increase profit margins with lowest
investments. This venture also has higher potential to generate better opportunities which
increases customer satisfaction (Radović-Marković and Tomaš, 2019). This venture tends to
have lower risk which helps entrepreneurs to gain better results to grow business effectively.
Analysing the increase in demand of dairy products in the market creating business which dairy
products to meet the exceeding demand of customers and gain higher profit margins.
Medium Ventures
Medium ventures has the capacity to grow their business by investing in itself which
increases their sales, product line however medium ventures do not have efficient management
system which increases the cost of operation and impact pricing of product to compete in the
market.
Large Ventures
Large scale venture are more professional in developing strategies and allocating their
resources for optimal usage. This venture also helps to develop better products according to

needs and wants of customers which also increase customer satisfaction effectively. For instance
octopus venture is large venture.
Typology of Entrepreneurial Ventures
Lifestyle Venture
Lifestyle venture is emphasised on the quality of living of the entrepreneur in order to
increase the potential of the business venture effectively. This venture aims to increase the
potential of products and services which are suitable for customers according to their standard of
living. However, lifestyle venture is not effective in managing all the resources which lack in
competency in the market.
Speculative Venture
This venture observes market trends and uses it as the opportunity to grow business in the
market. This venture focuses on profitability and increases the performance of products and
services according to needs and wants to customers. This type of venture is medium size
ventures.
Survival Venture
This is short term venture which analyse all the short term factors in the business
environment to forecast outcomes and formulate effective strategic planning to gain better profit
margins at fast as possible and develop effective exit strategy which reduces all the risk of this
venture. This type of typology is suitable small venture in the market effectively.
Similarities and Differences between Entrepreneurial Venture
Differences between Entrepreneurial Venture
Basis Public Venture Private Venture
Management Skills Public venture has effective decision
making process which helps to increase
their performance to achieve objectives.
Public venture has problem solving skill
which helps to face all the challenges in
the market effectively.
Private venture has better
communication channel which helps to
increase the information between all the
functional departments and attain better
productivity to manage all the activities.
Organization
structure
Public venture has division organisation
structure which allows company to
delegate authorities according to their
Private vesture has well classified
organisation structure which reduces
internal disputes and assigns roles and

classification. This helps to increase the
performance of the organisation to
achieve objectives effectively.
responsibilities to each member of the
venture according to their potential.
Economic Motives the main focus of public venture is to
provide social welfare and improve
society facilitation (Zeyen and
Beckmann, 2018). Venture earns
revenue to facilitate better community
upliftment which improves standard of
living of population.
The main focus of private venture is to
earn more profit and grow in the market
to compete with other businesses. This
venture aims to reduce cost of the
operation which helps to gain more
profits and attain core competency in
the market effectively.
Reward emphasis Public venture provides dividend on the
shares of shareholders which increases
the satisfaction and improve brand value
of the venture business effectively.
Diversity and equality is implemented to
the employees who help to increase the
motivation.
Private ventures have effective reward
system which provides financial
rewards which improves the loyalty of
employees and enhance satisfaction.
Similarities between Entrepreneurial Venture
 Private and public venture which has effective workforce which increases the
performance of both ventures. Both ventures has similar marketing and same structure
which helps to increase customer base and gain better profit margins.
 Funds are acquired by investors and external sources in both ventures which help to grow
business in the market.
Impact of Micro and Small Businesses on Economy
SME is the majority in UK which helps to increase the economic growth of the nation
and develop better facilities for its citizens. It is very essential for UK to support small and
micro scale business organisation as it has potential to generate better products and services and
improve the quality of market competition. Micro and small business provides alternative
options to customers to chose from which increase their satisfaction and hence increase the
productivity to grow in the market to achieve objectives effectively (Nassif, Armando and Lopes
La Falce, 2020). This also helps to reduce the competitive advantage of large scale industry by

reducing their products and service prices. 1.4 million of small scale enterprises in UK has
employment opportunities which increases the income level of the nation to boost GDP
effectively. micro and small business of UK provides around 60 percent of total employment in
the country which also provides opportunity for different industry to grow and expand in the UK
market to compete in large scale business organisation effectively.
Importance of Business Start-ups in growth of Social Economy
Business start ups are the new innovative visionary business which provides better
products and services to market which increases the value of certain activities which differs from
traditional activities. Business start ups provide better opportunity for the market learn new
information and improve awareness to make better decision. Due to increase in demand the rate
of criminal activities like fraud has increased which has impacted the trust of customers on the
new business firms in the markets. Start ups has more potential to grow in the market and
provide better growth to economy of UK (Zeyen and Beckmann, 2018). It also helps to develop
effective strategies by analysing political, social, legal, environmental, technological to
determine opportunities and increase economic growth of the business effectively. start ups also
provide better liquidity in UK market to develop more facilities for citizens and increase their
education level. It helps citizens by providing better employment opportunity and improving the
standing of living which enhance overall productivity of all the industries and increase per capita
income of the public effectively.
Characteristic Traits and Skills of Successful Entrepreneurs
Characteristics, traits and skills are inner strengths of entrepreneur which helps them to
become successful. Having more knowledge and experience helps entrepreneur to increase the
performance of the organisation and develop effective organisational culture (Lechner and
Pervaiz, 2017). It is very essential for business to have healthy working environment which
ensures better productivity of the business to achieve its objectives and compete in the market.
Skills and Characteristic of Simon Cowell
Simon Cowell is one of the successful entrepreneurs in UK who has developed different
ventures and increase his potential due to his effective skills, traits and characteristics.
Communication Skill

It is very essential for entrepreneur to have proper communication with their audience to
provide them with information to increase the productivity of the activity (Usman, 2020). Simon
Cowell has effective communication skill as he influenced many people to follow his success
story and become more determined in what they want to peruse.
Ethical Skill
Simon Cowell is having morale which helps him to make better decision for him and for
his businesses. This also helps Simon Cowell to increase his credibility in the market to become
more successful.
Innovative skill
Innovation is very essential to grow and to innovate it is very essential to have proper
information and knowledge. Simon Cowell is open minded to new information and has active
attitude to learn new things which helps him to increase is experience to develop innovative
thinking.
Assessment of Entrepreneurial Personality for Motivation
A successful entrepreneur has potential traits and knowledge to make effective decision
which increases the performance of his business effectively. It is very essential to analyse
personality of entrepreneur which increases the degree of motivation to achieve objectives of the
business organisation effectively (Laudano, Marzi and Caputo, 2018).
Openness
This personality trait helps to increase in the innovation and creative thinking of person
which also helps to them to learn more information from the surrounding to increase their
potential to make decision effectively.
Conscientiousness
This personality trait helps to provide high level of vision, goal oriented behaviour which
helps to increase the efficiency of entrepreneur to develop effective planning for future projects.
Agreeableness
Agreeableness personality trait helps entrepreneur to increase trust, affection,
humbleness, social connection with the people around. This helps to increase the teamwork
efficiency of entrepreneurs and also provides better emotions to understand each member.
Neuroticism

This trait portrays stress, anxious, unstable behaviour which is not effective for
entrepreneurs. It is very essential for entrepreneur to have low level of this personality trait to
reduce stress and focus on sound decision making to become successful.
Extraversion
This trait is portrayed by social connectivity, high interaction, influencing skills which
help to increased performance of business to achieve objectives. This trait also helps to increase
leadership roles (Dana, 2018).
Background and Experience Can Hinder or Foster Entrepreneurship.
It is very important to understand all the factors which provide opportunity to an
entrepreneur to become successful. It is been analysed that childhood and past experience helps
entrepreneur to make decision and also impact the personality development of the person to
improve the productivity of the business organisation effectively.
Richard Branson is a very popular business man of United Kingdom, and he belongs from an
educated family (Burns, 2016). Richard Branson was very poor in education as he was suffering
from dyslexia and also failed in almost every school till age 13 after which he moved to Stowe
School but the efficiency of understanding was not better, and he dropped out at the age of 16. at
this age he stated a magazine called students and distributed first batch for free to the public. His
strategy was to recover the money in the publication which helped him to increase his financial
condition. Thus due to poor academic and educational skills Richard Branson always faced huge
criticism. However he did not allowed the criticism to lead over his enthusiasm. Thus failure in
education motivated him to gain success in entrepreneurship so that he can prove himself and
can overcome the childhood sufferings and challenges. This also helps Richard Branson to
develop better information in his childhood and which helped him to become successful by
maki8ng decision. It also helped Branson to understand better information about all the skills
which were important to improve the performance of his business to gain better profit margins to
compete in the market and attain core competency effectively.
CONCLUSION
This report concludes that it is very essential for business to ascertain different types of
entrepreneurial ventures to reduce the risk of investment. It also helps to improve skills and

knowledge to entrepreneur to make effective decision and gain better opportunities in the market.
report provided information which helps to conclude that entrepreneurship is very essential for
growth of business and motivation of employees in the organisation. Different skill,
characteristics, traits helps to develop successful entrepreneur which is more effective to achieve
objectives.

REFERENCES
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Dana, L.P., 2018. ENTREPRENEURSHIP & SMALL BUSINESS.
Laudano, M.C., Marzi, G. and Caputo, A., 2018. A decade of the International Journal of
Entrepreneurship and Small Business: a bibliometric analysis. International Journal of
Entrepreneurship and Small Business. 33(2). pp.289-314.
Lechner, C. and Pervaiz, A., 2017. Entrepreneurial Strategy: A contingency review and outlook
for future research in SAGE Handbook for Entrepreneurship and Small Business.
SAGE.
Nassif, V., Armando, E. and Lopes La Falce, J., 2020. Entrepreneurship and Small Business in
the Context of Post Covid-19: Is there Light at the End of the Tunnel?. Nassif, V.,
Armando, E, & La Falce, JL (2020). Entrepreneurship and Small Business in the
Context of Post Covid-19: Is there Light at the End of the Tunnel.
Radović-Marković, M. and Tomaš, R., 2019. Globalization and entrepreneurship in small
countries. Routledge.
Usman, A., 2020. ENTREPRENEURSHIP AND SMALL BUSINESS.
Zeyen, A. and Beckmann, M., 2018. 11. Exploring the global potential of social entrepreneurship
and small. Research Handbook on Small Business Social Responsibility: Global
Perspectives. p.267.
Zeyen, A. and Beckmann, M., 2018. Exploring the global potential of social entrepreneurship
and small business social responsibility for tackling societal value creation. In Research
Handbook on Small Business Social Responsibility. Edward Elgar Publishing.