Entrepreneurship and Small-Business Management: Detailed Analysis

This report provides a detailed analysis of entrepreneurship and small-business management, covering various types of entrepreneurial ventures and their relation to the typology of entrepreneurship. It explores the similarities and differences between ventures, highlighting risk-taking, management styles, and capital sources. The report also examines the impact of micro and small businesses on the economy, particularly in the UK, focusing on local, national, and international levels. Furthermore, it justifies the importance of small businesses and start-ups in fostering social economy growth by improving living standards and promoting balanced regional development. The characteristic traits and skills of successful entrepreneurs are determined, differentiating them from other business managers, and reflecting on the entrepreneurial personality, motivation, and mindset. Finally, the report explains how background and experience can either hinder or foster entrepreneurship, providing a comprehensive overview of the subject. Desklib offers additional resources and solved assignments for further study.

ENTREPRENEURSHIP AND
SMALL-BUSINESS MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P.1. Various kinds of entrepreneurial ventures and explain how they relate to the typology of
entrepreneurship.....................................................................................................................1
P.2. Explore the similarities and differences between entrepreneurial ventures....................2
TASK 2............................................................................................................................................4
P.3. Micro and small businesses impact on the economy and illustrate it with graphical
representation.........................................................................................................................4
P.4.Justify the importance of small businesses and business start-ups to the growth of social
economy.................................................................................................................................6
TASK 3............................................................................................................................................7
P.5. Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers.......................................................................................7
P.6. Aspects of the entrepreneurial personality and reflect entrepreneurial motivation and
mind set..................................................................................................................................9
TASK 4..........................................................................................................................................11
P.7 Explanation on how the background and experience can hinder or foster entrepreneurship.
..............................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Entrepreneurship is the ability of a person to start a new business venture in order to
attain profits by taking risks. It is the process of starting a new enterprise where goods and
services are being traded. This report will focus on Various kinds of entrepreneurial venture and
their typologies. Moreover, it covers similarities and differences between entrepreneurial
ventures. Importance of small businesses and business start-ups to the growth of social economy
will also be described briefly. Furthermore, this project will also determine the characteristics
traits and skills of successful entrepreneurs i.e. Jack Cohen, owner of TESCO has been chosen
and how he is different from another business manager.
TASK 1
P.1. Various kinds of entrepreneurial ventures and explain how they relate to the typology of
entrepreneurship.
Entrepreneurship is a process of starting and managing a new business in order to earn
profits. Entrepreneur is a person who come up with a new business idea and take all the risks and
necessary steps for its formation with a motive of earning profits and growth in the future.
Types of entrepreneurial ventures:
Craftsman Entrepreneur: These business person has high technical experience and are good at
professional skills. But such entrepreneur is not good at communication. Below are the
characteristics of Craftsman entrepreneur:
 Such businessman does not take high amount of risk.
 Organization is managed by them in such a way as if they are managing their families
 Maximum two to three capital resources are used by such business person in order to
establish new venture (Durst and Roth, 2018).
 Does not plan the future growth in advance.
Growth oriented owner- entrepreneur: Such businessman focus on growth of the venture.
Growth is measured by calculating the following aspects:
 Increase in sales of the company
 Profits percentage should be increased
 Covers maximum market share by preparing a target market
 Focus on quality of product and services in order to sustain in market in long run.
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Growth oriented entrepreneur are always highly motivated towards their work and they never
feel sense of satisfaction. These people have the highest level of energy and are good at
multitasking. He will always find a new opportunity in order to attain growth of venture.
Manager or innovator: Manager of firm is lifeblood of organisation. He is a person who
handles the entire system and activities of an enterprise. Innovator is an individual who comes up
with a new idea to start a business and takes all the required steps to start a new firm.
Owner refusing growth but seeking efficiency: People who does not focus much on growth of
the enterprise rather it has complete focus on efficiency and its betterment. Quality of product
and making it with more efficiently by use of labour and machineries is the focus of such
businessman (Laukkanen and Tornikoski, 2018).
Risk oriented entrepreneur: Individual who take more risk than the average business man.
Such entrepreneur has great vision and takes all the opportunity comes in their way. They focus
on taking higher risk in order to earn more incomes and growth. There is a phrase that more will
be the risk greater will be the return. So such entrepreneur takes higher risk and enjoy higher
returns. But failures are also to a great extent by such people.
Family oriented entrepreneur: A business that is run by whole family or it can be said that
where all the people working in the firm belongs from same family. In such kind of enterprises
cost of governance comes very low, because accounting work or any other legal work is
managed by their own family members. Human capital is their first resource because entire
family coordinates and work together.
Visionary entrepreneur: This business man has long termed vision who see all the conditions
and aspects before taking any decision. Those who have better vision are more successful in the
future, because those who are good at determining things tends to have less failure in life.
P.2. Explore the similarities and differences between entrepreneurial ventures
Basis Craftsman
Entrepreneurial
venture
Family oriented
entrepreneurial
venture
Risk oriented
entrepreneurial
venture
Meaning These business have
high technical
knowledge and are
People works for their
family business in
such enterprise or it
These business man
take more risk than the
average business
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good at professional
skills.
can be said that under
such business all
working individual
belongs from same
family.
person.
Risk taker Such enterprises do
not take high amount
of risk
These establishments
take limited risk as per
size and objectives of
business
Such business takes
the highest amount of
risk in order to achieve
maximum profits.
Capital Maximum two to three
capital resources are
used by such firms
Maximum capital is
raised from within the
family. It is called
social capital.
Capital can be raised
from any source by
such businesses. Such
as owners fund, public
shares etc.
Future growth Does not plan future
growth in advance.
These plan growth as
per the requirement of
family and its business
Growth is focus of
such enterprise and for
that business-man
takes all necessary risk
to achieve the same.
Management Organization is
managed by them in
such a way as if they
are managing their
daily work.
Complete management
is seen by the family
members.
Management is seen
by the managers of the
enterprise and they
take all the decisions
related to firm.
From the above table it has been illustrated that All the enterprises are different when it comes
to risk taking because every business is established for earning higher profits. Management
handling techniques are not same because all has their own leadership qualities or techniques of
motivating employees. Every business raise capital from different sources which is feasible to
them. This all aspects differentiate them from each other.
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Similarities between the above three enterprises:
 All businesses have same objectives and goals of attaining success in the future, No one
works for failures.
 Every firm believes in online advertising through social media platforms like Facebook,
Instagram etc.
 All three organisation believes in taking opportunities seriously and working on them to
achieve success in the future.
 A person comes with an idea to start his own venture, they have to go through all the
legal proceedings of starting new business
M1 Range of entrepreneurial ventures
There are different stages of entrepreneurial ventures which are defined below.
Entrepreneurial: An entrepreneur is the one who comes up with an idea for establishing
a venture and starts it by taking all necessary steps. It is something new which does not associate
with existing business model.
Intrapreneurship: Intrapreneurship is like entrepreneur in a bugger organization. They
are usually highly self-motivated, proactive and action-oriented people who easily take decision
or initiatives of their own, even within the boundaries of an organization, to take innovative
products or services.
D1 Critical examination of scope development and growth of entrepreneurial ventures
As per Jones (2018), every ventures focuses on growth and development thus it takes maximum
possible risk in order to attain higher profits. Higher the risk more will be the return and growth
in venture. Whereas, As per Caputo (2018), More risk can be lead to failure of establishment.
TASK 2
P.3. Micro and small businesses impact on the economy and illustrate it with graphical
representation
Small and micro business are lifeline of United Kingdom. This kind of firms require less
capital investment and number of working employees are also less. These concern have a few
resources, employees and have a very little working capital for investment. In United Kingdom,
majority of firms have less than 10 people working with them. In United Kingdom, more than 15
million of the country are working with small and micro enterprises. Micro and small business
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have earned around 25 million pounds as annual turnover in UK. In 2016, private business has
got increased till 97000 in numbers (Torrès and Thurik, 2018). Such private sector businesses
have great contribution in GDP of whole nation and it provides employment opportunities to all
people of the country who are in need.
Such kind of organization has following impact on the economy of UK:
Impact on local economy: In London, Micro and small industries carry more than 50%
of overall market. Huge activity of these concern plays a crucial part in entire economy of the
city and also contributes to its position as major world-wide business centre. Micro and small
scale enterprises makes up to 48% of business aggregate of the city (Impact of small business on
economy, 2017).
Impact on national economy: In United Kingdom, small and micro firms covers around
71% of the business. In the economy of United Kingdom, 35% of employment is carried by
small and medium sector firms and have 19% turnover of overall businesses in UK. At national
level, around 4.2 million establishments are at micro and small level which has less than 10 and
25 employees respectively (Spence and et.al., 2018)
National level Total business Ratio of SSI
United Kingdom £5.4 million 94.00%
The whole employment in United Kingdom are as follows:
Nation Total Employment Ratio of SSI
United Kingdom £16 million 65.00%
Impact on international economy: Micro and small business have great prospective at
contribution of growth at international level. Large number of products are being exported by
these undertaking. Micro and small business has higher contribution in increasing overall
exports of United Kingdom. Internationally, 75% business is improved by such small firms.
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Illustration 1: Impact of small business on economy
(Source: Impact of small business on economy, 2017)
P.4.Justify the importance of small businesses and business start-ups to the growth of social
economy
Small businesses play a major role in the economy of United Kingdom. Around 25
million business are set up which are of small nature in the entire country. These firms are set up
in order to earn profits and revenue, but it has a huge contribution on the economy of nation.
Below are some points which will show impact of these enterprises on social economy
Standard of living: Small businesses has played the best role in improving standard of
living of people. One of the main reason of betterment of living standard is by giving
employment to unemployed people. But other than that innovative ideas have been adopted by
small firms and this helped society in enjoying new and different products and culture. All this
has a great impact on improving life style of citizens of the nation (Jones and et.al., 2018)
Balanced regional development: Small businesses are being set up in those areas which
are less developed and backward in every aspect. Setting up of these small scale industries has
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helped in improving infrastructure such as roads, water supply, electricity etc. Employment
opportunities are also created in those areas and that leads to improvement of regions.
Authorities of nation also promote this kind of development of regions which are under
developed by providing various benefits and rebates to new start-ups (Lerner, Verheul and
Thurik, 2018).
Exports: To expand a business, person thinks of exporting products outside the nation so
that international market can also be covered. This will help in economic development of the
nation by currency inflows in the country and bigger markets are being captured. Economic
revenue will lead to development of society at large. Thus, exports of articles will improve the
social condition of the country.
Create jobs: Start up means establishing a new business and that leads to one less job
seeker in the nation. And many employment opportunities are opened and provided by that
single new start up. Creating job and giving employment to people will help them in earning on
their own and living a life with better facilities and that will improve the social economy of
country (Lee, 2018).
Creativity: Start-ups always focus on coming up with an innovative idea so that in can
survive in this existing world. Creative new products bring change in mind set of society.
Adopting of innovative products will bring a change in society and will help in development of
the same.
Growth domestic product: Starts ups plays a very important role in the GDP of the
nation. It has increased 35% of GDP of country. Social development has been seen by the
increasing GDP of the country. Increasing GDP to a great extent by small enterprises resulted in
social development of the nation (Importance of small businesses, 2016)
Environmental benefits: Small businesses needs less working capital. Less resources are
being used by the organisation because amount of capital invested is low. Hence, they make
optimum utilisation of resources. This results in saving of resources as well as controlling the
wastage of environment (Laudano, Marzi and Caputo, 2018.)
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M.2 Differences small, medium and large businesses make to the economy, applying relevant
data in addition, statistics
All the three businesses contributes to a great extent to the economy. This businesses give
employment to people as well as increases gross domestic product of the nation.
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D.2 Critically examine how small businesses have an impact on different levels of the economy
As per Spence (2018), small business has helped in higher growth of economy by way of
giving employment opportunities to people. It has also contributed in the GDP of nation.
Whereas, As per Laukkanen (2017), small businesses has developed unfair competition between
companies.
TASK 3
P.5. Determine the characteristic, traits and skills of successful entrepreneurs that differentiate
them from other business managers
Jack Cohen and Sam Wolten are being taken to conduct the research and know their
skills traits and characteristics of being successful in their life.
Jack Cohen: He is the founder of TESCO which is a chain of super market. Jack Cohen
was Born in London and became the fourth Biggest retailer in world. In starting Jack Cohen has
made specialisation in Food but later on he moved TESCO in every area such as electronic
items, Music systems, etc.
Sam Wolten: He is an American business-man who has founded Retail store named as
Walmart. He has all the characteristic if being a successful business man and that is reason he
has become biggest private employer in the World. During a time, He was the richest man in
America (Torrès and Thurik, 2018).
Below are the skills and traits of both entrepreneurs which has made them successful in their life.
Skills:
Innovative: To become a successful business man, a person is required to come with different
and innovative ideas. Every person wants to have their own business, so one needs to be different
and come with an innovative idea in order to sustain in this competitive world.
Motivation skill and positive behaviour: Businessperson should always have skills of
motivating other person because he needs to motivate employees in the company for doing better
work and for taking out the maximum work from them. A Person should always have positive
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attitude towards everything in life that will result in attaining success (Braunerhjelm, Ding, and
Thulin, 2018)
Characteristic
Education: In decision making or in managing a business education plays a vital role. A person
who is educated has a better vision and knowledge about the market. Educated people have a
personality of taking decision with patience and they study the behaviour of consumer with great
aspect.
Not afraid to take risk: A business man should always have an ability to take risk
because higher the risk more will be the return. Risk and reward are always simultaneous to each
other. A risk taker is a person who stakes everything in the hope of attaining higher profits and
growth. Jack Cohen is a risk taker with a great vision and mission in business. That is the reason
behind his success and becoming fourth Biggest retailer in entire world (Trehan, Higgins and
Jones, 2018)
Believer of perfection: Sam Wolten was a such a perfectionist and that is the main
reason behind his success. Work with discipline and perfection make a person more successful.
Jack Cohen is a risk taker with a great vision and mission in business. That is the reason behind
his success and becoming fourth Biggest retailer in the world.
Traits:
Acceptable and flexible: A successful entrepreneur has the ability to accept all changes
with time. A business person is not flexible as per needs of the consumer then it will result in
failures (Characteristic traits and skills of successful entrepreneurs, 2017).
Jack Cohen has the ability of accepting every changes with time and that Behaviour has made
him opened chain of retail stores and made him a successful entrepreneur.
Passion for Positive change: Business man should have such skills that he should accept
every change with a positive attitude. They should have desire to change the world with their
product or services. Jack Cohen has idea of changing the community system by making available
all products under one roof. This is the biggest reason behind his success.
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