Entrepreneurship and Small Business: Venture Analysis & Impact

This report provides a detailed analysis of entrepreneurship and small business management, focusing on the relationship between entrepreneurial ventures and their typology. It examines the impact of small businesses on both the economy and social development, highlighting their role in local, regional, national, and international contexts. Furthermore, the report identifies key traits of successful entrepreneurs, discussing whether these traits are innate or acquired, and explores the influence of past experiences and backgrounds on entrepreneurial motivation and mindset. The analysis covers various types of entrepreneurial ventures, including start-ups, social enterprises, and corporate ventures, comparing their similarities and differences in objectives, techniques, and societal contributions. The report concludes by emphasizing the importance of understanding entrepreneurial ventures for effective entrepreneurship and its overall impact on economic and social growth.

ENTREPRENEURSHIP AND
SMALL BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Major entrepreneurial venture and its relationship with typology. .......................................1
P2 Major similarities and differences between entrepreneurial venture.....................................2
P3 Impact of small business on economy. .................................................................................3
P4 Impact of small business in the major development of social economy................................4
TASK 2............................................................................................................................................5
P5 Traits of successful entrepreneurs and identify whether they are born or made....................5
P6 Entrepreneurial motivation and mindset are reflected by entrepreneurial personality..........6
P7 Concept of entrepreneurship is affected by past experience and background.......................7
CONCLUSTION.............................................................................................................................8
.........................................................................................................................................................8
REFERENCES ...............................................................................................................................9
.......................................................................................................................................................10

INTRODUCTION
Entrepreneurship is the key concept which involves the idea of designing and running an
entire new business. People who involve in these kind of activities is probably known as
entrepreneur (Fassin, Van Rossem and Buelens, 2011). It is evaluated that entrepreneur indulged
in business activities from start up companies. Entrepreneurs in context of start up companies
have limited resources and they served in limited area. But with strong determination and will
power, these companies finally attain market shares and profit. Small business management
refers to the idea where entrepreneur basically indulged in establishing and maintaining all
business operation with most effective manner (Helfat and Winter, 2011). They aim to attain
stability and sustainability in the market. It is important for every country to encourage the idea
of entrepreneurship because with introduction of new business unit, opportunities of employment
increase. Thus, there will be more money creation in the market. There will be growth in the
economy. Given report is based upon the entire concept of entrepreneurship and the ways by
which entrepreneurial venture affect the typology of entrepreneurship.
TASK 1
P1 Major entrepreneurial venture and its relationship with typology.
Major entrepreneurial ventures
Start up companies- This is the most common venture in which any new entrepreneur
invest their money, resources, idea and time. This is the foundation of establishing any new
business which can gradually expand in the market with their continuous efforts.
Social- In this kind of venture, company mainly focus towards providing solutions to the
various social issues (Dennis Jr, 2011). They mainly work for the improvement of social people.
Corporate- In this kind of venture, large company invest their money into start up
companies and thus, it becomes important for them to gain profit in the market.
Public sector- In this type of entrepreneurial venture, it is necessary to be more focused
towards delivering effective and efficient public services.
Typology of entrepreneurship
On the basis of above entrepreneurial ventures, typology of entrepreneurship can be
decided.
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Small business- This is the most common type of entrepreneurship which mainly deals
with small business plan and idea. Example of this can be plumber, electrician etc. they have
limited resources but work with most effective manner.
Scalable start ups- In this kind of entrepreneurship, it has been evaluated that they have
strong believe in their business idea and thus they aim to survive long in the market with by
fulfilling the need and demands of people (Chrisman, Chua and Barnett, 2012). They try to earn
maximum number of market shares.
Large company- They are well established companies in the market with high market shares and
profit. They act like a market leader and thus serve as per the demand of the customers.
Social entrepreneurship- Main aim under this type of entrepreneurship is not to earn any
profit but to work for the common people. They get full support from the side of government and
hence can work in the most effective manner.
On the basis of above it can be concluded that the understanding of entrepreneurial
venture is important in order to follow the right type of entrepreneurship approach.
P2 Major similarities and differences between entrepreneurial venture.
Similarities
1 All business venture comes under the head of business. They may have different
objectives but they are indulged in one or the other business activity as a whole. That is why is is
estimated that
2. They need to follow same procedure in the establishment of their business. This is
because there are some set of rules, relations, norms which must be followed by companies in
order to run their business without any obstacles (Nga and Shamuganathan, 2010). There are
some legislations made by government to describe the basis on which all business venture can
perform their actions.
3 they contribute to the society. Business venture may vary from each other in the
context of their objectives and goals. On the other side, they must be liable for contributing in the
growth of the economy.
Differences
1 One of the major difference between all business venture is that the have different
objective, purpose, mission, goals and vision. That is why, their desired level of result will be
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different. Their main purpose of being in the market will surely vary from each other. For
example, Social entrepreneur is mainly into the market to solve social issues.
2. They also vary from each other in terms of adopting techniques and methods. This is
because techniques are adopted in order to achieve some specific target (Russo and Perrini,
2010). In other words, on the basis of goal of a company, the major techniques are decided.
3. All the major entrepreneurial venture vary from each other in terms of their role. Thus,
it can be concluded that different entrepreneurial venture have different roles and
responsibilities. And these roles are decided as per their different mission and objectives.
P3 Impact of small business on economy.
As small business are very important in order to decide the growth of economy. This is
because there is a major contribution of these businesses in establishing the GDP of a country.
Economy is a combination of local, regional, national and international economy. Given below
are the major impact of small businesses on various economies:
Local economy- This is the major economy which get affected by establishment of small,
micro and start up companies (Helfat and Winter, 2011). This is because small business came
into market with a focus upon some specific customer group. They first choose some local
market with limited number of resources. In this way people living in local area get most benefit
out of small business establishment.
Regional economy- Once small business get positive response from local economy then
they move towards regional economy. Delivering products to the people of regional area will
create so many job opportunities. Thus, new business will serve more number of people and
generate money in the economy as well. As most of the people will get employment
opportunities , that means their standard of living will also increase and thus this will lead to
enhance purchasing power of the customer.
National economy- Local and regional economy combine with each to reflect the impact
stratus of national economy. It has been evaluated that the effectiveness of national economy can
be reflected from the condition of local and regional economy (Acs, Autio and Szerb, 2014).
Therefore, nation as a whole must be stable in order to reflect growing economic conditions.
Stability and sustainability can be achieved by establishment of small business.
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International economy- Result of local, regional and national economy can be reflected
from international economy. Small business will lead to create stability in international economy
by reducing the level of poverty and generating various employment opportunities for the people
P4 Impact of small business in the major development of social economy.
It is a known fact that establishment of small company plays a vital role in establishing
the growth of economy. In border context it can be seen that the impact of entrepreneurship is
very remarkable on social economy (Naudé, 2010). This is because social entrepreneurship
mainly deals with social issues. Companies working under this head needs to be fully concern
about social issues and troubles. They work for the benefit of the society. That is why, it is
suggested to encourage small business management so that economy can get benefit out of it.
Major impact of micro and small business on social economy can be seen from the following
point:
Social issues can be resolved- One of the major impact of small business on the social
economy can be seen from the fact that the various social problems can be resolved. As small
business is mainly aims to full fill the need of common people living in some specific region.
That is why it can be concluded that small business can change the face of social economy. It can
improve its growth and hence overall economy can be improved.
Standard of living increases- This is the second most important affect of small and micro
business on social economy. When businesses are made in order to solve various social issues,
that means people will get various platform to improve their work efficiency and thus, it will
increase their purchasing power. It is also evaluated that opportunity of employment will
increase and thus, the purchasing power of an individual will also rise.
Purchasing power increase- On the basis of above, a conclusion can be drawn that is the
purchasing power depends upon the standard of living (Samwel Mwasalwiba, 2010). If standard
of living will increase that will automatically maximize the purchasing power.
From the above point, it can be evaluated that small and micro business have a great
impact on social economy. It will help in its overall growth.
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TASK 2
P5 Traits of successful entrepreneurs and identify whether they are born or made.
All successful entrepreneurs have some basic traits which makes them different from any
other entrepreneurs. These characteristics are very important in order to decide the success rate
of any entrepreneur in the market. Bill Gates and Mark Zuckerberg are two personality who is
worldwide famous of their entrepreneurial style. The major traits which are found in context of
mentioned entrepreneurs are as follows:
Dynamic in nature- It has been found that the above mentioned entrepreneurs are so
dynamic in nature that they become role model for other. Dynamic personalty can be seen by
their way of carrying out all the operations of business. They act so systematically that other
people get influenced and motivated at the same time. It can be considered as the most important
trait of every successful entrepreneur.
Act like an expert- From the working style of mentioned entrepreneurs, it can be every
well evaluated that they are probably act like an expert (Puffer, McCarthy and Boisot, 2010).
This is because they are not liable for performing any single task in the business but responsible
for monitoring the entire operations of the company. That is why, it is essential for them to be
expert in all possible areas in order to run business successfully.
Believe in planning- It is necessary for the successful entrepreneur to make a plan and
decides major strategies and methods to achieve the target of the company. If proper planning
has been conducted by then comp-any, then only they can make profit out of it and in this way
there there market shares will also increase.
Take high level of risk- This is so far the most essential trait that is found in successful
entrepreneurs like Mark Zuckerberg and Bill Gates. This is because popularity of any business in
the market depend upon its performance and success. That is why, it is necessary to take in order
to shine in the market. Higher the level of risk will ensure the high amount of return as well.
Act like team leadership- Entrepreneurs are liable for running an entire business with the
help of employees and other key persons. But the major idea behind establishing that business is
all based upon that one single person known as entrepreneur (Nga, and Shamuganathan, 2010.).
That is why, it becomes the core responsibly of entrepreneur to develop the leadership skills. In
this way, they can monitor all key functions of the business.
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Confident in nature- It is necessary for a successful entrepreneur to be confident about
what they are doing. They must be highly positive in nature and so courageous that they can
handle every crises in business. Their confidence must be seen in their approaches towards
business activities.
A great manger- It has been noticed that a successful entrepreneur must have quality of a
successful manger. They can manage different work and thus, it become essential for them to see
all activities under managing different task of a business. In this way, the entire effort of an
entrepreneur will help them to achieve their goal.
It is also a matter of great discussion that whether an entrepreneur is made or born. In
this respect, it can be concluded that entrepreneurs can be made as well as born. This is because
some people have the skills and traits of being a successful entrepreneur from the time of their
birth. On the other hand, there are some who develops entrepreneurial skills by proper education
and learning.
P6 Entrepreneurial motivation and mindset are reflected by entrepreneurial personality.
It is evaluated that entrepreneurial personality can be reflected from entrepreneurial
motivation and their mindset. This is because personality plays a major role in determining the
motivational factor and mindset of any individual. Given below are major elements which can
affect the personality of an individual.
Family upbringing- It is a known fact that a child get to learn the difference between
good and bad from their childhood only. In this way it can be concluded that family upbringing
plays a major role in determining and shaping the personality of an individual. Value and beliefs
are developed from the family upbringing and that is why, the major part of personality of an
individual can be developed from the type of upbringing.
Lifestyle- Lifestyle of an individual can be reflected by their way of living. Dressing
sense is one of the major part which can be evaluated as a part of their lifestyle. A major part of
an individual personality is shaped from their lifestyle.
Cultural differences- This is the major factor which reflects the personality of an
individual. Cultural differences can be seen from the way by which one community follow their
customs (Morris, Kuratko, and Covin, 2010). In this way, it can be evaluated that their
personality will be develop from their own culture. Culture in this context can have many
dimensions such as relationship with people, attitude to time and attitude towards environment.
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Personal motivation- This is so far the best way by which a personal can feel motivated
without any external support. Personal motivation helps an individual to find solution of their
problem by themselves and in this way, they can do any task in most effective manner. This will
surely improves the work efficiency of an individual.
On the basis above , it can be concluded that there are so many factors such as cultural
differences, family upbringing, personal motivation and lifestyle which have a great impact on
developing personality of an individual. These personality plays a major in developing the traits
of a succesful entrepreneurs. In this way, a person's personality can affeted by so many factors
and thus it is necssary to evalute these factors so that a complete entrepreneurial petrsonality can
be developted.
P7 Concept of entrepreneurship is affected by past experience and background.
It has been already mentioned that there are so many factors which can directly affect the
personality of an individual. As entrepreneurial personality has some unique traits that is why, it
is necessary to evaluate those factors which can affect the personality of an entrepreneur (Bosma,
and Levie, 2010). In this regard, it is very well estimated that a person's past experience and
background can also affect its present personality traits. In context of entrepreneurship, it can be
concluded factors like type of education, economic circumstances, character traits and national
income plays a major role in fostering and hindering the concept of entrepreneurship. Given
below is the detailed evaluation of all these factors.
Type of education- Education is important in order to make people aware about all
possible aspects of society and thus it will also increase the intellectual level of an individual. As
far as entrepreneurship is concern about, it has been noticed that with the help of several
concepts and approaches towards entrepreneurship, one can actually shine in the market with
their business unit. These concepts can be learnt from education. That is why, type of education
plays a major role in determining the efficiency of entrepreneurship.
` Economic circumstances- Economic conditions plays a major part in determining the
growth of any business. This is because growing economy will have many advantages to a
company. There will be large amount of resources and also people will have high purchasing
power. This means their standard of living will also increase. That is why, economic conditions
plays a vital role in determining the growth rate of any entrepreneurial activities in the market.
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Character traits- This is again a very important factor which determines the type of
entrepreneurship approach. On the basis of character traits only, people can perform the major
objective behind the concept of entrepreneurship (Kirzner, 2015). Traits like positive nature,
leadership skills, dynamic personality, role model, an expert, motivator, conflict resolution,
planning and many more are the crucial characteristics of a successful entrepreneur. This plays a
major role in determining success rate of any business unit in the market.
National income- This can be defined as the way by which financial conditions of a
country can be determined. National income will indicate the stability of a country. If a country
is having balanced cash flows, that means the company can get various financial support and
thus their business will get tremendous level of success in the market in terms of both market
shares and profits.
CONCLUSTION
On the basis of this, it can be concluded that the concept of entrepreneurship is very
important in order to understand the idea behind entrepreneurs. There are several type of
entrepreneurial ventures and accordingly there are typologies of entrepreneurship as well. In
context of entrepreneurship it has been noticed that there are so many important traits that plays
Majorca role in determining the success rate of that entrepreneur in the market. For this purpose,
there are also some element which may affect the personality of an individual. A person's past
experience and background also plays a major role in determining the current personality traits.
In short, establishment of small and micro business is very important in order to improve the
growth of the economy. Local, regional, national and international economy can be affected by
small business establishment and management.
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REFERENCES
Books and Journals
Acs, Z.J., Autio, E. and Szerb, L., 2014. National systems of entrepreneurship: Measurement
issues and policy implications. Research Policy, 43(3), pp. 476-494.
Alvarez, S.A. and Barney, J.B., 2010. Entrepreneurship and epistemology: The philosophical
underpinnings of the study of entrepreneurial opportunities. Academy of Management
annals, 4(1). pp. 557-583.
Bosma, N. and Levie, J., 2010. Global entrepreneurship monitor: 2009 global report.
Chrisman, J.J., Chua, J.H., Pearson, A.W. and Barnett, T., 2012. Family involvement, family
influence, and family‐centered non‐economic goals in small firms. Entrepreneurship
theory and practice, 36(2). pp. 267-293.
Dennis Jr, W.J., 2011. Entrepreneurship, small business and public policy levers. Journal of
Small Business Management. 49(1). pp.92-106.
Fassin, Y., Van Rossem, A. and Buelens, M., 2011. Small-business owner-managers’
perceptions of business ethics and CSR-related concepts. Journal of Business ethics.
98(3). pp.425-453.
Helfat, C.E. and Winter, S.G., 2011. Untangling dynamic and operational capabilities: Strategy
for the (N) ever‐changing world. Strategic management journal, 32(11). pp. 1243-1250.
Kirzner, I.M., 2015. Competition and entrepreneurship. University of Chicago press.
Morris, M.H., Kuratko, D.F. and Covin, J.G., 2010. Corporate entrepreneurship & innovation.
Cengage Learning.
Naudé, W., 2010. Entrepreneurship, developing countries, and development economics: new
approaches and insights. Small business economics, 34(1). p.1.
Nga, J.K.H. and Shamuganathan, G., 2010. The influence of personality traits and demographic
factors on social entrepreneurship start up intentions. Journal of business ethics, 95(2),
pp.259-282.
Nga, J.K.H. and Shamuganathan, G., 2010. The influence of personality traits and demographic
factors on social entrepreneurship start up intentions. Journal of business ethics, 95(2).
pp. 259-282.
Puffer, S.M., McCarthy, D.J. and Boisot, M., 2010. Entrepreneurship in Russia and China: The
impact of formal institutional voids. Entrepreneurship theory and practice, 34(3). pp.
441-467.
Russo, A. and Perrini, F., 2010. Investigating stakeholder theory and social capital: CSR in large
firms and SMEs. Journal of Business ethics, 91(2). pp. 207-221.
Samwel Mwasalwiba, E., 2010. Entrepreneurship education: a review of its objectives, teaching
methods, and impact indicators. Education+ Training, 52(1). pp. 20-47.
Online
Entrepreneurship: Characteristics,Importance, Types, and Functions of Entrepreneurship. 2016.
[Online]. Available Through:
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On 2st July 2017].
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