Pearson Unit 09: Entrepreneurship and Small Business Management Report

This report, submitted for the Unit 09 Entrepreneurship & Small Business Management module, provides a comprehensive analysis of entrepreneurship concepts and their practical applications. It begins by defining key terms such as entrepreneurship, entrepreneurial activity, and enterprise, and then differentiates between various types of entrepreneurs including serial entrepreneurs, intrapreneurs, and owner-managers. The report then focuses on the roles and characteristics of micro, small, and medium-sized organizations in entrepreneurial ventures, comparing their similarities and differences. It explores the growth and lifestyle of entrepreneurship in both public and corporate sectors. The report also evaluates the impact of small businesses on the economy, examining their contribution at local, regional, and national levels, including statistics on size, turnover, profit, and innovation. It delves into the key aspects of the entrepreneurial mindset, including skills and characteristics. The report also examines the environments that foster or hinder entrepreneurs, discussing factors influencing venture startups, risks, rewards, uncertainties, and their mitigation. Finally, it assesses the positive and negative impacts of past experiences on entrepreneurs, concluding with a discussion on the scope, development, and growth of the chosen venture. The report also includes an analysis of the venture type, which is a small business entrepreneurship based on personal financing, focused on creating a study abroad services company aimed at maximizing the number of international students in Canada.

PEARSON REG. #
AYESHA ZEHRI
UNIT 09: ENTREPRENEURSHIP & SMALL
BUSINESS MANAGEMENT
Academic Year: 2019-2020
Unit Tutor:
Assignment Title: Venture types and impacts of small
business on economy
Issue Date:
Submitted on:
I SOLEMNLY DECLARE THAT THE WORK SUBMITTED FOR THIS ASSIGNMENT
IS MY OWN AND RESEARCH SOURCES ARE FULLY ACKNOWLEDGED
SIGN: TUTOR SIGN:
DATE: DATE:

Table of Contents
1. Entrepreneurship Concepts & Applications........................................................................1
1.1. Entrepreneurship............................................................................................................1
I. Entrepreneurial Activity................................................................................................1
II. Enterprise.....................................................................................................................2
III. Differentiate b/w:.........................................................................................................2
i. Serial Entrepreneur........................................................................................................2
ii. Intrapreneur....................................................................................................................2
iii. Owner-Manager..........................................................................................................2
IV. Type of Venture Chosen.............................................................................................3
1.2. Roles & Characteristics of Micro, Small & Medium-sized Organization in
Entrepreneurial Ventures.........................................................................................................3
1.2.1. Similarities & Differences b/w them to help implement my venture..................3
1.3. Growth & Lifestyle of Entrepreneurship in Public & Corporate Sectors.................4
1.4. Scope, Development & Growth of My Venture...........................................................4
2. Impact of Small Business on the Economy..........................................................................5
2.1. Analyzing Small Firms & Their Contribution to Social Economy............................5
2.1.1. Small Firms’ Types..................................................................................................5
2.1.2. Small Firms’ Contribution of Social Economy (at National, Regional & Local
Level) 5
I. Local/Regional Level of Economy.................................................................................6
II. National Economy.......................................................................................................6
III. International Level......................................................................................................6
2.1.3. Small Firms (Size, turnover, profit, growth, innovation, sustainability &
adaptability statistics)............................................................................................................6
2.1.4. Impact of Findings on selected venture/project report........................................7

2.2. Evaluating Small, Medium & Large Business in Economy........................................7
2.2.1. Differences of each in Economy based on Data & Statistics................................7
2.2.2. Impact of Local, Regional, National & International Startups in Different
Levels of Economy..................................................................................................................7
2.2.3. Impact of Findings on Selected Venture................................................................8
3. Key Aspects of Entrepreneurial Mindset.............................................................................9
3.1. Entrepreneurs & Small Business Owners....................................................................9
3.1.1. Can Entrepreneurs be Born or Made....................................................................9
3.1.2. Can Characteristics be Learnt & Adopted by Anyone......................................10
3.1.3. Types of Skills Representing & Differentiating Entrepreneurs from Managers
10
I. Motivation......................................................................................................................11
II. Visionary....................................................................................................................11
III. Resourcefulness.........................................................................................................11
IV. Innovator....................................................................................................................11
3.2. Entrepreneurial Characteristics & Situational Factors............................................12
3.2.1. Entrepreneurial Characteristics in Personal Context........................................12
I. Opportunistic.................................................................................................................12
II. Innovation..................................................................................................................12
III. Doer.............................................................................................................................13
IV. Risk Taker..................................................................................................................13
4. Environments that Foster or Hinder Entrepreneurs........................................................14
4.1. Factors Influencing Choice of Starting up a Venture................................................14
I. Background....................................................................................................................14
II. Education...................................................................................................................14
III. Experience..................................................................................................................15

4.2. Risks, Rewards, Uncertainties & their Mitigation in Startups.................................15
4.2.1. Risks........................................................................................................................15
I. Work Timings................................................................................................................15
II. Schedule......................................................................................................................15
III. Market Environment................................................................................................16
IV. Managerial Limitations............................................................................................16
V. Financial Losses.............................................................................................................16
4.2.2. Rewards..................................................................................................................16
I. Growth Opportunities..................................................................................................16
II. Financial Success.......................................................................................................17
III. Structure.....................................................................................................................17
IV. Flexibility....................................................................................................................17
V. Customization................................................................................................................17
VI. Achievement...............................................................................................................17
4.2.3. Uncertainties in Startups......................................................................................18
I. Technological.................................................................................................................18
II. Political.......................................................................................................................18
III. Competition................................................................................................................18
IV. Consumer Dynamics.................................................................................................18
V. Resource Deficiency......................................................................................................18
4.2.4. Managing Uncertainties........................................................................................19
I. Simple Concept..............................................................................................................19
II. Testing........................................................................................................................19
III. Early Approach.........................................................................................................19
IV. Investment..................................................................................................................19

V. Cash Flow Management...............................................................................................20
VI. Analytical Capabilities..............................................................................................20
VII. Risk Management Plan.............................................................................................20
4.3. Positive & Negative Impact of Past Experience on Entrepreneurs..........................20
References.....................................................................................................................................22

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1. Entrepreneurship Concepts & Applications
The first section of this report has been divided in four parts. In the first part, we’ll discuss
entrepreneurship, entrepreneurial activity, enterprise and discuss differences between different
types of entrepreneurs. Next, we’ll discuss the roles and characteristics of micro, small and
medium sized organizations in entrepreneurial context followed by an insight into the growth
and lifestyle of entrepreneurship in both public and private sectors. Lastly we’ll discuss the
scope, development and growth of the chosen venture in light of market factors.
1.1. Entrepreneurship
The planning, designing and launch of a new business idea is entrepreneurship. The financial risk
associated with the business idea, the formation of the business including its structure,
operations, clientele and supply chain as well as different functional processes are a part of
entrepreneurship. There are various types of entrepreneurship that are based on the type and area
of the business idea. Similarly, entrepreneurs are also segregated into a various types depending
on their area of specialization and interest. We will discuss these different types of entrepreneurs,
the concept of enterprise and entrepreneurial activity as well as a chosen venture type in this
section.
I. Entrepreneurial Activity
The process of creating entrepreneurial opportunities as a product of the entrepreneurial ecology
is called entrepreneurial activity. Entrepreneurs undertake entrepreneurial activity to come up
with ideas and strategize them into practical solutions through innovation and transformation.
The outcome of entrepreneurial activity in shape of a new business venture adds value to a
fraction of the society and economy with innovation, growth and advancement as its main
outputs.
There is a clear difference between static management and entrepreneurial activity where the
former focuses on business context with impacts influenced from social, economic, political,
cultural and legal factors. There are no limitations to entrepreneurial activity in terms of new or
existing markets, market segments, products or services. Instead, the concept revolves around the
creation of new markets, market segments, products and services based purely on creativity,
innovation and transformation (Content et al., 2020).

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II. Enterprise
The term enterprise is a substitute for a profit making company however it is generally
associated with an entrepreneurial venture. The term is used for a new business that is an
outcome of entrepreneurial activity based on a new idea, product, service, market or innovation.
Most of the startup businesses are referred to as an enterprise that have been formed through an
initiative by undertaking considerable operational, financial, legal and investment risks.
III. Differentiate b/w:
We will now discuss the concepts of serial entrepreneurs, intraprenerus and owner-managers
individually and then summarize their differences to ultimately choose a venture type for our
idea.
i. Serial Entrepreneur
An individual that continuously comes up with new ideas and initiates new business ventures on
the basis of such ideas is called a serial entrepreneur (Morris et al., 2018). A very prominent
example would be that of Elon Musk who continuously explores new ideas and creates new
companies as we have seen in case of Tesla, SpaceX and Hyperloop. A serial entrepreneur as
against a conventional entrepreneur doesn’t stop at one idea or business and continuously strives
to brainstorm innovative ideas to create new products and services.
ii. Intrapreneur
An intrapreneur is basically an employee within a company tasked with the responsibility to
come up with new ideas for products, services and ventures, The intrapreneur also looks into
transformative innovation whereby striving to find new ways to enhance efficiency and optimize
existing processes and operation. The difference between intrapreneur and an entrepreneur is that
the former doesn’t have any risks and neither the opportunity to cash in those risks as an
entrepreneur however has all the resources and authority as their counterpart.
iii. Owner-Manager

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An individual who operates and owns a business is an owner-manager and is similar to an
entrepreneur of the new age where most of the entrepreneurs either manage company affairs or at
least one major function of the business such as technology or innovation. However the
difference lies between the goals of an owner-manager and an entrepreneur, where the former
establishes a business solely for personal goals, mostly livelihood and isn’t always associated
with innovation.
IV. Type of Venture Chosen
The type of venture for my idea would be small business entrepreneurship based on personal
financing, idea and vision. The venture will be based on creating a study abroad services
company aimed at maximizing the number of international students in Canada.
1.2. Roles & Characteristics of Micro, Small & Medium-sized Organization
in Entrepreneurial Ventures
The difference between micro, small and medium sized organizations is placed in the
formulation and operational structure. Typically a micro organization has less than 5 employees
and generally makes revenues lower than even small sized organizations. Generally such
ventures are focused on conventional ideas and existing business categories such as that in sole
proprietorship.
Small sized entrepreneurial ventures are businesses that are formulated from personal finances,
ideas and vision usually with the help of friends, family and peers. The businesses under this
category are also based on existing markets and services however in case of technology startups,
revenues can exceed but the scope of business remains small in size (Israr et al., 2020).
Medium sized organizations are properly structures and well planned companies with
considerable human, capital and operational resources at disposal. Unlike small sized firms, their
goal is not merely to make profit for survival rather they focus on a vision and grow towards
achieving them.
1.2.1. Similarities & Differences b/w them to help implement my venture

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The main difference between entrepreneurial ventures is based on their size and the purpose of
their formulation where micro and small business ventures are mostly focused on the sole idea of
making profit and operate in existing markets with conventional business ideas. Medium sized
firms are more likely to operate in new markets with new business ideas based on innovations.
This clarifies the fact that for a new business idea the venture should at least be a medium sized
firm or work its way towards it after its creation in order to operate at its potential.
1.3. Growth & Lifestyle of Entrepreneurship in Public & Corporate
Sectors
Entrepreneurship is not necessarily a term exclusively used in private sector but is usually
associated with it. The set of business activities and structure of entrepreneurial ventures of small
and medium size are generally placed in the private sector. However entrepreneurship has
emerged in the public sector over the past decades with the emergence of public sector
enterprises.
The growth and lifestyle in public and corporate sectors is similar as well as different in a
number of areas. The private sector is highly competitive and is inclined towards maximizing
profits and minimizing costs and expenses. The public sector entrepreneurship on the other hand
isn’t always in losses as is generally perceived to be however in terms of expenses and costs, it
certainly is. The corporate sector entrepreneurship is aimed at maximizing returns for investors
and stakeholders whereas public sector enterprises ensure the equal provision of benefits to all
the parties involved in the operations of entity (Ratten & Ferriera, 2017).
A major difference between the lifestyle of the two sectors in terms of entrepreneurship is the
fact that the employees and management of the private sector enterprise are highly aggressive
and competitive in maximizing output efficiencies of the organization as well that of the
workforce. While the public sector enterprises often lack in such competitiveness and also lacks
behind in taking as many risks as their private sector counterparts. The growth of public sector
ventures is almost guaranteed with direct backing from the state that provides considerable tax,
resourcing and support benefits whereas a private entity is solely responsible for all the risks on
its hence the growth and lifestyle differs greatly.
1.4. Scope, Development & Growth of My Venture

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The scope of my venture as indicated earlier will be based on the model of a medium sized
organization with a small initial startup. The scope, development and their major factors have
been discussed individually in this section. Study Guide plans to explore unconventional,
untapped and high potential destinations such as Italy, Japan, Romania, Turkey, Brazil,
Argentina, Greece, Spain etc. and form a network of offices and partners to promote
international education. This will not only enhance cultural exposure for our clients but also
allow us to leverage our proactive strategy to sign favorable deals with host institutions. Our
main objective is to create and explore an untapped market niche and attract at least 20-30%
share of existing market.
2. Impact of Small Business on the Economy
This section has been divided into two parts, the first subsection discusses the types of small
firms and their contribution to social economy at national, regional and local levels. The turnover
of small firms as well as the impact of finding of the first subsection on the chosen venture are
also discusses. The second subsection evaluates small, medium and large companies in the
economy where difference of each category have been discussed based on statistics and data.
The impact of local, regional and international startups at different levels of the economy have
been discussed in this section as well with a reference to the impact of such findings on chosen
venture.
2.1. Analyzing Small Firms & Their Contribution to Social Economy
In this sub-section of the report, we will discuss the types of small firms, their contribution to the
economy of United Kingdom as that is the location of our new venture (United Nations, 2020).
We will also discuss the financial indicators of such firms that impact on the continuity of such
businesses and in turn analyze the influence of these findings on our new venture.
2.1.1. Small Firms’ Types
There are four main types of small businesses in line with the generally accepted definition of
small firms. These types are:
I. Sole Proprietorship
II. Local Businesses

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III. Business Suppliers
IV. Innovation led businesses
2.1.2. Small Firms’ Contribution of Social Economy (at National, Regional & Local
Level)
The role of small firms is very important in the overall economy of UK with a huge impact on
different levels of the economy as well. The impact of small firms at local/regional, national,
international levels is given as:
I. Local/Regional Level of Economy
Small firms play a significant role at regional and local level of the economy in UK. These firms
establish new market as well as expand the existing markets that are not expandable by medium
or large firms. The small firms account for majority of the total businesses in the country as well
as around the globe. They also play a key role in creating new jobs and providing livelihood to
millions of people.
II. National Economy
The small firms contribute about half of the total economy of the United Kingdom. These firms
increase productivity as well GDP of the country. They create jobs at all levels of the economy
and also increase the number of suppliers in the market giving rise to competition and
competitive practices hence improving lives of customers. These firms also have a high rate of
growth and are also subject to private sector rebates that allow small firms to register higher
returns.
III. International Level
The real global GDP is made up of small firms in majority. These firms work closely with each
other as firms of the same category attract each other for partnerships as they understand and are
comfortable with the way deals are made and their subsequent terms and conditions as well. In
today’s world, small firms work virtually with freelancers from a number of countries, especially

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developing countries in wake of competitive pricing and help in the growth and development of
economies around the globe.
2.1.3. Small Firms (Size, turnover, profit, growth, innovation, sustainability &
adaptability statistics)
The total number of small firms in 2020 has been noted to be around 6 million in the United
Kingdom with 0 to 49 employees per firm. The small firms account for 99% of all the firms in
the country with a collective workforce of about 13 million and a cumulative turnover of 1.5
trillion pounds. The growth rate of small businesses has been noted at 72% for the past two
decades cumulatively and at an average of about 7% year on year. The majority of small firms
are based on sole proprietorship with a considerable percentage of small firms with no
employees. These firms are well placed with impressive figures in terms of profitability and
business continuity however only a small portion of these firms are innovation startups
accounting to less than 5%.
2.1.4. Impact of Findings on selected venture/project report
The findings from the details based on statistics and data of small firms present a favorable
outlook for a startup business. However small firms mostly account for sole proprietorship,
technical services and some in innovation but we’ll be able to ascertain the right category of
business formation with the findings from the next section that look over all firm types.
2.2. Evaluating Small, Medium & Large Business in Economy
This section looks at small, medium as well as large business in the economy of United Kingdom
((National Statistics, 2020)). We will discuss differences of each firm type based on economy
related data and statistics, the impact of these firm types on local, national and international
levels and the impact of these findings on the chosen venture.
2.2.1. Differences of each in Economy based on Data & Statistics
Small Firms have the majority share in total number of firms with a turnover of 1.3 trillion
pounds, employing 1.6 million people whereas medium sized firms employ 16 million
employees and have a turnover of 2.2 trillion pounds cumulatively. The small and medium sized