Impact and Importance of Entrepreneurship and Small Business Report

This report delves into the multifaceted world of entrepreneurship and small business management. It begins by defining entrepreneurship and exploring various types of entrepreneurial ventures, including large corporations, small-scale businesses, social enterprises, and scalable businesses. The r...Read More

Entrepreneurship and
Small Business Management

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1: Different type of entrepreneurial project and their relation with typology......................1
P2 Similarities and differences between various entrepreneurial ventures............................3
TASK 2............................................................................................................................................5
P3 Impact of micro and small business on economy.............................................................5
TASK 2............................................................................................................................................7
P4. Importance of firm start-up's and small business to growth of social economy after Brexit7
P5. Skills, characteristic and traits of entrepreneurs...............................................................8
TASK 3............................................................................................................................................9
P6 Entrepreneurial personality reflect entrepreneurial mind-set and motivation...................9
TASK 4 .........................................................................................................................................10
P7 Background and experience can hinder or foster entrepreneurs ....................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneurship forms an integral part of every business as every large and successful
firm started out as a small enterprise led by an entrepreneur (What is Entrepreneurship?, 2017).
An entrepreneur is an individual who take initiative to think an innovative idea, nurture it into a
concept and then assemble all the working into a business venture by capturing market
opportunities and taking risk of losses due to market uncertainties and dynamics (Acs, Autio and
Szerb, 2014). The report will evaluate various entrepreneurial ventures along with analysis of
valid similarities and differences of various business typologies. The project will also provide
synopsis about probable impact and importance of start-up's and small scale business firms on the
economy of UK. Further it will also discuss various traits and skills that is requisite for
entrepreneur to bear all risks capabilities that is essential to have to compete and lead in dynamic
market environment. Also it will ascertain impact of background and experience in success or
failure of a company and entrepreneur.
TASK 1
P1: Different type of entrepreneurial project and their relation with typology
Entrepreneurship forms integral part of any business as every large organisation started
out as a small venture lead by an entrepreneur. According to Ducker, (2014) entrepreneurship is
one of most creative process towards a company and its various activities to organize, handle and
lead individuals towards one objective. Thus, an entrepreneur is an individual who willing take
risk and put up its career and financial security for bringing change in society. Entrepreneurial
venture could be defined as a start-up that is at initial phase and is associated with lower capital
investment and limited business operations. Entrepreneurial enterprise on other hand could be
defined as a business that is well established and is known for its huge capital investment and
large scale of business operations. Through a business venture or a start-up business Peterson
introduce new and innovative ideas for anticipating current and future requirements of customers.
Therefore, in order to successfully utilize all its limited resources for getting maximum outcomes
and higher profits an entrepreneur is liable to conduct a thorough research about various market
aspects including in depth analysis of various types of entrepreneurial ventures and evaluate and
select most suitable one in the light of chooses project and its requirements. Mentioned below are
some prominent types of ventures:

 Large Corporations: Large corporations are having definite life cycle and they acquire
growth and sustainability by synthesizing new products and services as per customers’
requirements. These enterprises are also subject to huge capital investment and heavy
market competition, hence they are required to mould their goods and services according
to business dynamics in order to maintain and sustain is market position. For instance,
TESCO UK is one the largest British multinational retail chain that deals in groceries and
other general merchandise. Small Scale Corporation: UK is one of the greatest hub for start-up or small scale
corporations that significantly contributes in providing employment to nation. Small scale
business includes start-ups such as cafes, consultants, grocery stores etc. that requires
limits capital and resources to carry put its business activities (Bhachu, 2017). Also they
are less prone to risk and are single owned and managed by an individual owner. For
instance, Oak cash and carry is one the successful small scale retail business in UK that
offers wide range of goods in bulk for retailers, offices, caters etc. Social Enterprise: These ventures works with the main objective to provide and develop
products and services for betterment of society by providing them basic merchandises at
affordable prices. These non-profit organizations don’t not have profit generation as their
main motive ad it focuses on manufacturing goods and services that would enhance
effectiveness and efficiency of society and its environment. For instance, Oxfam
international is a association of 20 charitable firms that works with the main objective to
eradicate global poverty and to for sustainable development of its society people. Scalable Business: These organisations mainly emphasis upon quality and creative
aspects of a business venture rather merely manufacturing in products in bulk. These
enterprises are quit focused and determined towards their vision and business concept and
they use innovative ideas to attract investors who shares same vision.
Types of entrepreneurial typology: Serial Entrepreneur: These entrepreneurs have a high spirit to take up new challenges
and come up with something new and innovative on repetitive basis so as to give
something new and distinctive to world. After successfully establishing one venture these
serial entrepreneurs delegated roles and responsibility of undertaking operations to some
efficient and capable individual and they themselves shift their focus on something more

challenging areas of field (Blackburn, Hart and Wainwright, 2013). For instance, Virgin
group is one the most suitable example for this business typology as they are having more
than one brand under Virgin group. Social Entrepreneur: They are entrepreneurs that strives with an objective to raise
standard of living of society people by introducing positive changes in their lives. They do
not work for wealth maximisation and are clear in their mission to support and develop
society by offering products and services to cater their daily requirements. For example,
The Create Foundation CIC in UK is a community interest company that provided
innovative employment and training opportunities and assist homeless, marginalised and
vulnerable people to rebuild their lives.
 Female Entrepreneur: They can be described as woman or group of women who novice,
organize and commence a business enterprise. A woman entrepreneur is a confident,
creative and innovative female who is having capabilities to attain self-economic
independence either as a single owner or in collaboration, provides employment
opportunities for others through a start-up and manage that enterprise while keeping pace
with her family, personal and social life. For example, Emma Kane who is the founder
and CEO of Red leaf communications that is an award winning London based PR and
investor relations company (Brandstätter, 2011).
P2 Similarities and differences between various entrepreneurial ventures
Difference between Female and male businesses
Female Entrepreneur Business Male Entrepreneur Business
 In female owned business all business
operations and functions are managed
and controlled single handed by female
entrepreneur.
 Women entrepreneur besides having
profit motive seeks to provide some
kind of contribution to society.
 They are more concerned about
hazards and loss in business ownership
 In male enterprise the activities of
whole business are operated by male
entrepreneur.
 Men entrepreneurs on other hand
focuses on economy and cost
 Men entrepreneurs on other hand are
more willing to take risks and believes
in the philosophy of higher risks for
higher returns.

Similarities between Female and male businesses
 Female Entrepreneur Business  Male Entrepreneur Business
 The overall aim of women entrepreneur
is to earn high rate of returns on their
investments.
 The criteria for attaining growth and
sustainability is to be proactive in
launching new and innovative products
in context to the frequently changing
needs and desires of customers.
 The main and single objective of male
entrepreneur is to earn higher profits
and wealth maximization.
 To be figurehead and be successful in
long run similar as female
entrepreneurs, the criteria for them
remains same i.e. to introduce
distinctive and unique products and
services.
Difference between Lifestyle ventures and Serial entrepreneurs
Lifestyle ventures or businesses Serial entrepreneurs ventures
 They place passion before profits and
intentionally selects business model that
combines personal interests, knowledge,
expertise with ability to earn a living.
 A lifestyle entrepreneur generally
combines a hobby or area of interest
with a profession and do not diversify
their business so as to remain in control
of their enterprise.
 These entrepreneurs continuously work
upon new and innovative ideas and
creative thinking while starting a new
venture.
 Serial entrepreneur on other hand keeps
on getting indulge in something unique
and distinctive each time in repetitive
manner. They like achievements and
after establishing in venture delegate its
activities to proficient individual so as
to work on commencing a new one.
Similarities between Lifestyle ventures and Serial entrepreneurs
 Lifestyle ventures  Serial entrepreneurs
 Lifestyle entrepreneurs emphasizes on
their passion and thus shifts from one
 Similar to Lifestyle entrepreneur serial
business men also keeping on changing

venture to another to for taking up job
that relates to their field of interest.
 They like to explore something
different that is exciting and from
which they relate to. They crave for
change.
their area of work with motive to
introduce something unique and
creative each time.
 Also like lifestyle entrepreneur they
have high propensity for innovation,
creativity and change.
TASK 2
P3 Impact of micro and small business on economy
As mentioned earlier small scale business or start-ups are emerging with a significant rate
in UK as for instance there are more than 3500 small ventures alone that opened up during time
period of 2016-17. One of major reason behind this is the fact that small scale business
contributes a large in nation's economy which forms key aspect that political and legal factors are
in immense favour in growth and flourishment of these small scale businesses. However, there
are various factors that affects functioning of these enterprises (Bridge and O'Neill, 2012). For
instance, Brexit is likely to effects on the future strategic intension of SME's especially large,
innovative and export oriented one that are more likely to trade internationally are in particular
concerned about ramification of Brexit. Mentioned below are the major three types of businesses
that dwells in UK economy:
Small: The investment in resources and plant & machinery of these firm does not go
beyond 20,000,00. The number of people employed by these firms is less than 70 and the annual
turnover remains under the £ 6.6 million.
Micro: These companies involves less than 10 number of employees and their investment
in plant and machinery does not exceed 25,000,00. These firm are to generate approx. revenue of
£ 2 million.
Medium: Medium scale business ventures maintain a wo0rkforce of less than 270
members and their annual turnover remains under £ 25.9 million. These organisation aims
towards attaining long tern objectives and higher profits within specific period of time (Bruton,
Ahlstrom and Li, 2010).
Nature and Characteristic of partnership, sole and private which are as follows:

Private: These organisations are generally launched and managed by an individual and
does not distributes is shares to the general public. They have approx. 50 members who start up
an organisation by investing large amount of money in business.
Sole Proprietorship: These ventures are also started by a single individual who is
accountable for commencing and handling entire business activities and operations. They operate
with the main objective of earning higher profits. It is one of the completest business structure to
operate that is subject to least regulations.
Partnership: It is similar to sole proprietorship in almost all aspects except that involves
two or more business owners. All these partners are liable for paying out debts and can be legally
sued by third party in case of non-payment (Carsrud and Brännback, 2011).
Corporation: These business ventures are established by stakeholders and take lot more
legal formalities and time to set up in comparison to other legal entities. Under these enterprises
every member is having their own powers and rights to take appropriate decisions that is to
provide benefit to business.
Impact of SME's on UK economy
Local effect: In UK economy, SME's alone generates about 60%-70% of overall
employment opportunities to the people. They account around 95% of firms and their scale of
production have a positive effect on economy as it contributes to maximum tax discharging. At
local level these SME's helps in generating various job opportunities for young and upcoming
generations and assist in sustainable development of local people. In its estimated that every year
these SME's are providing 64% empl6yment with support of market.
Regional Impact: In current there are more than 5 million SME's that are operating in
UK economy. By adopting latest technology and innovative ideas these micro and small
organizations put efforts for ascertaining needs and requirements of various market segments. By
identifying these demand, they make necessary modification in existing products to customize
them as per demand of various segments.
National and international Impact: Both start-ups and small scale business plays vital
role at national and international level of UK economy. It is evident from the fact that it provides
over 67% of UK's employment under which it provides direct employment to 25 million people
and indirect job opportunities to 1.6 million people that contributes to more than 50% of nations
GDP. According to statics most of UK people are employed in private sector that assist

government in formulating appropriate policies that further helps in growth and development of
these business concerns (Chittithaworn and et al., 2011).
TASK 2
P4. Importance of firm start-up's and small business to growth of social economy after Brexit
Brexit is the intended withdrawal of UK from the European Union which implied that
benefits of belongingness to the unified monetary body no further will outweighed the cost of
free movement of immigration. This generatively impacted UK economy was that its slowed
down the UK economy by 2.4% in 2017. Also it resulted UK to pay an exit fees of extra 3
million pounds over two years.
Source: Impact of Brexit
Further in absence of tariff free trade the costs of about 150 imports and other exports
raised making British goods high prices and less competitive in comparison to EU nation's export
(Chrisman and et. al., 2012). In this aspect start Up's and small business majorly assisted UK
economy. Start-ups could be defined as temporary ventures that are designed for searching out
for a repeatable and scalable business models on the other hand small scale business could be
defined as self-owned and ,managed , organized venture for profit and not dominating in its field

of work. Both these plays a critical role in the growth of UK economy as they are major
contributor in generating large employment opportunities for nation. Mentioned below is the
significance of small and start up business.
 Small scale and starts up provides various employment opportunities to UK economy.
After Brexit there has been about an increase of 41% in the job opportunities generated
by these these two businesses.
 Also Brexit has led to abolishment of industrial sector. This has further induced UK
government to formulate many policies related to export and imports. It is because of the
fact that there is tremendous increase in imports from emerging economies like India,
Africa and Middle east.
P5. Skills, characteristic and traits of entrepreneurs
Entrepreneur is a concept that excel out conventional way of commencing and handling a
business and to reach out new levels of innovation to attain edge in competitive business. For
example, Mark Zuckerberg and Bill gates are the two successful entrepreneurs that are known for
their distinctive skills and capabilities of efficiently managing complex and dynamic situations.
Mentioned below are skills, characteristic and traits of entrepreneurs: Ability to take risks: One of the essential characteristics for a successful entrepreneur is
readiness to take risks. It is because risks is essential to bring forth opportunities for
business and also for personal growth of entrepreneur as well as it helps them to be
adaptive towards dynamic market situations (Desai, 2013). Both Bill Gates and Mark
Zuckerberg is known for ability to take risk as both of them come up with extremely
exclusive concepts that were not known to anyone. Hence, they have taken huge risk of
rejection of their concept people as people initially were unknown for the basic concepts
of computers or a social site. Communication Skills: Another important skill for an individual to be a successful
businessman is to have be excellent communicator. It is because good communication
skills help in maintaining amicable relations with both employees and customers. Also it
is essential to clearly state company's objective and level of performance to workforce in
effective manner. Both these entrepreneurs are excellent communicators as they are able
to pursued and convenience its customers to adopt new technologies.

 Innovative and creative: In today's time it is one of most essential trait for a entrepreneur
to develop. It is because creative thinking and innovative ideas assist an enterprise to cope
up with frequently changing consumers need and maintain brand image of its company by
creating most unique and distinctive products and services (Djankov and et. al., 2010).
Both these entrepreneurs are way to innovative and creative than other parallel business
persons as they introduced unique most distinctive concepts for which people were not
knowledgeable. Visionary: It is important for an entrepreneur to have a clear vision and to have
confidence to make its workforce believe in that so that they can work autonomously to
attain that vision. Bill Gates and Mark Zuckerberg are truly visionary entrepreneurs in
comparison to other managers as they were confident about their business ideas
irrespective of number of associated risks with it and they successfully executed their idea
into a whole new venture.
 Versatility: In this era of competitive business scenario successful are those businessmen
that are offering variety of services and products. Thus, entrepreneur who is versatile
opens doors to several opportunities. By being versatile in learning new cultures and
languages in order to effectively communicate with consumers as it helps in building
strong relations with clients and to be competitive as well (Fisher, 2012). Both these
business owners are truly versatile as they keep on indulging into new product
development after the launch of others and are not stagnant on just one concept. Microsoft
have several different types of software and Facebook is also diversifying which is
evident from its acquisition of famous social app WhatsApp.
TASK 3
P6 Entrepreneurial personality reflect entrepreneurial mind-set and motivation
There are various elements that represents a successful entrepreneur including being
innovative, risk taking, versatile etc. There is major correlation between personality of
entrepreneur towards entrepreneurial motivation and mind-set. Both Mark Zuckerberg and Bill
Gates have this distinct personality trait that helps them to understand their co-workers and staff
members that further contributes to overall mind-set and above all towards entrepreneurial
motivation (George and Bock, 2011). For these five dimensions of personality could be analysed
through Big Five Framework:

 Openness to experience: It is first part of Big Five Framework that is linked with
innovation and creative thinking. Entrepreneur is required to be curious, creative,
imaginative and innovative enough to analyse unfulfilled needs of its customers and to
produce distinctive goods and services to cater those requirements to be a market leader. Conscientiousness: It forms second factor that depicts individual’s personality to be
achievement oriented and persistent to attain goals (Naudé, 2013). These personality
traits help business owner to create strategies and policies distinctively by analysing
market environment to be assured of success and growth. Extraversion: This factor assist entrepreneur to effectively communicate its vision and
objectives in most persuasive manner to different types of people including clients,
sellers, venture capitalists etc. This helps in gaining their trust and confidence of firm's
vision and objectives (Grimaldi and et. al., 2012). Agreeableness: This personality trait makes it desirable for entrepreneur to be trustable
and honourable in nature. It is essential to possess in order to gain cooperation and
association of employees so that they can perform given tasks as per directions with their
best efforts within specific time frame.
 Emotional stability: This forms last personality trait of big five frame that make it
requisite for entrepreneur to be emotionally stable and resilient even during most
stressful situations.
TASK 4
P7 Background and experience can hinder or foster entrepreneurs
Mentioned below are certain factors that critically impacts personal power and
capabilities of an entrepreneur:
Family Background: Bill gates is one of the successful entrepreneur. Family support
plays important part for an individual to become entrepreneur, having their support motivates a
person to peruse whatever they want without any stress that give superior results. Also in case of
Marks Zuckerberg when he was facing different allegations from the media and society his
family remained besides him as a constant support that lead him to face all issues successfully
and clearing out all negative allegations (Kuratko, 2016).
Nationality: It greatly impacts entrepreneurial motivation and mind set. It is because
being from same nationality it becomes easy for entrepreneur to understand and evaluate culture

of that nation in efficient and systematic manner. Also, being from same nationality helps
business person to gain support and trust of its customers ( Light, 2011). In case of Bill Gates and
Mark Zuckerberg one of the major reason behind their success and immense popularity is been
belonging to same origin in where they commenced their business.
CONCLUSION
The project undertaken explores the concept of entrepreneurship along with contribution
of various types of ventures towards the growth and development of an economy at various
levels. It also discusses about various skills, traits and characteristics of a successful entrepreneur
and how its impacts entrepreneurial motivation and mind-set.

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