Entrepreneurship: Ventures, Economic Impact & Success Traits

This report explores entrepreneurship and small business management, highlighting different types of entrepreneurial ventures, their similarities, and differences. It illustrates the importance of micro and small businesses and their impact on the economy, particularly in the UK, emphasizing their contribution to GDP, employment, and innovation. The report also characterizes the traits and skills of successful entrepreneurs that differentiate them from other business managers, discussing how background and experience can both help and hinder entrepreneurial endeavors. Furthermore, the document examines the role of small businesses and start-ups in the growth of the social economy, noting their contribution to technological development, job creation, and overall economic welfare.

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PART A...........................................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different types of entrepreneurial ventures and their relations with each other...............3
P2 Similarities and differences between various entrepreneurial ventures............................5
TASK 2............................................................................................................................................6
P3 Data and statistics to illustrate micro and small businesses impact on economy.............6
P4 Importance of small businesses and business start-ups to growth of social economy......9
PART B..........................................................................................................................................10
TASK 3..........................................................................................................................................10
P5 Characteristic traits and skills of successful entrepreneurs that differentiate them from
other business managers.......................................................................................................10
P6 Aspects of entrepreneurial personality reflect entrepreneurial motivation and mindset.13
TASK 4..........................................................................................................................................14
P7 How background and experience can hinder entrepreneurship with examples..............14
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Entrepreneurship refers to the process of which an individual develops ability to
organize, develop and operate a business enterprise considering fact of uncertain business
environment. A sound working of a business organisation depends on it's way of management to
tackle with various uncertainty faced by firm while carrying it's respective operational activities.
It includes changing demands of customers, uncertain social environment, dynamic political
environment and many more(Julien ed., 2018). This report will highlight different types of
entrepreneurial ventures with their similarities and differences. With addition to it, this document
will illustrate importance of small as well as micro business enterprises with their impact on
economy and will characterise skills and traits of a successful enterprise which helps them
differentiate from others.
MAIN BODY
PART A
TASK 1
P1 Different types of entrepreneurial ventures and their relations with each other
Entrepreneurship in a business firm refers to overall process of shaping efforts been
produced by respective staffs working in an organisation towards achievement of business goals
and objectives. Employees performing their various job roles in an enterprise poses different
style for completion of assigned task. Sound entrepreneur is the one who ensures better
productivity in business operations by grouping efforts of various individuals and by maintaining
effective coordination in an organisation (Dana, 2017). There are different types of
entrepreneurship, out of which some of them are as follows:
Small business entrepreneurship: With light to fact, majority of business operating
across the world are small businesses. The main objective of these businesses aside profit
making is to support their respective family and maintain living standards. In most of cases in
small business, there is sole proprietorship form of ownership (Neumeyer and Santos, 2018).
However they might hire staffs and family members for delegating respective business activities.

It includes businesses such as hairdressers, boutiques, plumber and many other businesses done
on small scale.
Large company entrepreneurship: This type of entrepreneurship supports hiring up of
well qualified professionals for conduction of respective operations of business firm. The main
objective for business firm is to earn high profits and sense of being on top is evaluated. Big
company focuses on creation of new products or services as per trending demands of companies
customers in given marketplace. Some examples of these types of entrepreneurship are Google,
Microsoft and Disney.
Scalable start-up entrepreneurship: This type of entrepreneurship originates with an
idea that operational activities of business firm can bring changes in world. These types of
enterprises aims at conduction of respective operational activities of the firm by adoption of
innovative approaches (Chen, Chang and Pan, 2018). High qualified professionals are been hired
in these organisation and main focus is to introduce new approaches for doing specific work by
taking help of innovate techniques and using appropriate technologies. It includes organisation
like; Facebook, Uber and Instagram.
Social entrepreneurship: These types of entrepreneurship supports conduction of various
operational activities, keeping in mind valuable resources of the firm and it's respective social
objectives towards society. Operational activities in these businesses are aimed at production of
certain product or service that might be helpful for solving social issues in society. There main
objectives is not to carry out profits, instead they aim at providing better society for various
companies to operate their operational activities.
Characteristics of successful entrepreneur
 They are self motivated individuals,
 Ability to take risks/ Daring,
 Good knowledge about management principles,
 Good communication skills,
 Passion.
Therefore, it can be analysed that various types of entrepreneurship have different styles
in working. However they are interrelated with each other in respective working of business
organisations. It becomes important for managers and leaders of specific entrepreneurship to
analyse it's proper aims and objectives for effective decision making in the company (Frederiks

and et. al., 2019). For instance a manger in social entrepreneurship can't ignore social objective
of the workforce or aims at profit making of the firm. Various types of entrepreneurship ventures
have differences in their working style, entrepreneur should adopt according to respective plans
and polices of business firm.
P2 Similarities and differences between various entrepreneurial ventures
Every business organisation is formulated with an aim of extracting maximum output of
profits from minimum input of efforts and resources invested in the workforce. A sound
management of a business firm is defined by conducting timely research of company's business
environment and reacting by formulation of effective plans and policies for the company.
On the other hand, these entrepreneurship are also considered by their differences in their
ultimate goals and objectives. For example; hiring process of small entrepreneurship includes
hiring up of lesser qualified professions with investment of small resources when compared to
large entrepreneurship (Hisrich and Ramadani, 2017). Entrepreneurial ventures have various
differences and similarities in their respective operational activities which are as follows, with
regards to small, large, Scalable and social entrepreneurship;
Types Differences Similarities
Small V/S Large enterprise  The working of small
enterprises is at low
scale, while on the
other hand large
enterprise operates it's
working on a
comparatively larger
scale then small
enterprises.
 Capital invested in
small enterprises are
comparatively lesser
then the amount of
capital invested in large
 One of the main
similarity between
small and large
enterprises is that they
operates with ultimate
objective of profit
maximization.
 Both the business
organisation have to
run their respective
firm's activities under
certain rules and
regulations as been
imposed by respective

enterprises. governing body in
marketplace.
Social V/S Scalable enterprise  If social enterprise is
been taken into
consideration, it can be
said that, operational
activities of firm is
focused on creation of
various products or
services which helps in
making up of better
society. Whereas
Scalable enterprises
works towards bringing
in any innovate trend in
business environment.
 Social enterprise works
with main motive for
serving their business
activities towards
society. Whereas
ultimate firm's aim is
focused towards profit
maximization of
workforce.
 One of the basic
similarity of both
enterprise i.e. social
and scalable, is to
provide quality
services to respective
companies customers.
 Both the organisation
aims at promoting
innovative approaches
in conduction of
operational activities in
business firm.
TASK 2
P3 Data and statistics to illustrate micro and small businesses impact on economy
Market possess both type of businesses small as well as large which necessarily should be
carried out in accurate style. Small and micro businesses in UK contributes their 48% of profit to
economy of the country (Tribe, 2020). Diversification of business in the market is just because

most of micro and small businesses are privately owned. Small as well as micro businesses are
alleviated by government of UK because they hugely help in the growth of country's economy.
In UK 80% of businesses are small enterprises so mostly opportunities of employment at wider
level comes from this segment. Hence small and micro businesses are considered as the
backbone of economy.
Effect of micro and small businesses on economy :-
Decrease in unemployment rate- As it has been specified that these small as well as micro
businesses provides employment opportunities so it increases economy. By providing more
number of jobs productivity scale enhances rapidly.
Increases GDP- 25% of total UK GDP is generated by UK family firms. 52% of overall turnover
of private sector is from small and micro-enterprises. Hence it shows the monetary value
received by UK and overall economy benefits from small businesses.
Increases productivity- As these businesses provide employments so they provide knowledge,
trainings and develop skills so it enhances productivity at large level. So increment in
productivity tends to more tax payment to government hence it also leads to growth in
economy.

The above picture shows that rather than larger organisations small,medium and micro
enterprises gives more contribution in country's economy. In 2010 large organisations went
downward and after 2010 all large, small, micro as well as medium organisations boosted their
businesses in UK at larger level.

Given graph describes that 18% profit ratio for growth and evolution of country economy is
provides by small as well as micro-enterprises (Healy and Lenz, 2017). As employment scale and
business sector grows rapidly the opportunities for earning more tax also increases for government.
Thus by this economy of country grows and develops.
After analysing all the above matter , government should give more opportunities or
encourage new set ups or start ups so it will be beneficial for development of country and growth of
country economy. Small businesses contribute positively to new innovations also.
P4 Importance of small businesses and business start-ups to growth of social economy
Social economy:- It is a branch of economics defined as mixed economy consisting both
type of sectors public as well as private sectors (Zeuli and O'Shea, 2017). It concentrates on
social welfare such as helps in evaluating ethical values, attitude of people rather than generating
revenue or earning profits. Social economy not only access at domestic level but access to
international levels also on the basis of their capability, size and scope.
For example:- A social organisation named as Safe Point Trust, its capital is used for running
operations and businesses.
Importance of small businesses towards growth of social economy-
As it has been cleared that small businesses assists in enhancing overall development and
growth of country's economy with the help of social economy. It gives employment
opportunities to people at a very large scale. It helps in increasing productivity by providing
skills and knowledge as well as helps in increasing GDP of country. It is being discovered that
business run by UK is mostly that is 88.8% from small enterprises and new start ups.
 Development in technology- As new start ups come in the market place a lot of
innovative ideas, new technologies, research are generated hence it improves and
develops technology to a broad level (Qian, 2018). It also helps clients and customers in
better delivery of their products and services such as on time and safe delivery.
 Introduce new systems and research- As new start ups in market place increase so it will
lead to development of research by using new resources such as tools or new
technologies. It also takes system's ranking to higher level. With the help of innovation it
is possible to expand businesses in existing market as well as international market.

 Generate job opportunities- The primary advantage of establishing and increasing small
businesses is increment in employment opportunities for individuals (Bird, 2019)
 . It helps in reducing unemployment rate in country as well as pulling out people from
poverty by micro franchising.
Thus from above paragraph it is discovered that small as well as medium enterprises
creates effective impact and plays big role in enhancing social economy. It has been analysed
that these businesses makes more profit and generates more revenue in comparison to large
businesses. So it is quite important to keep an eye on small businesses for more growth of
country's economy.
PART B
TASK 3
P5 Characteristic traits and skills of successful entrepreneurs that differentiate them from other
business managers
The scope of an entrepreneur is wider than manager, as manager is a person who looks
and manages respective operational activities of a business firm, whereas, entrepreneur is a
person who not only manages key activities in an organisation individually but also recognizes
trending consumer problems and provide needful motivation to respective staffs working in an
organisation. Manager of respective company monitors performances of various employees
working in an organisation also assign different task and ensures completion of assigned tasks at
given time period (Munir, Jianfeng and Ramzan, 2019). On the other hand, entrepreneur are the
real owners of the company, they produces ideas for producing products or services taking help
of number of employees in decision and planning structures of the company.
With respect to given case study of famous entrepreneur Elizabeth Gooch and Tom
Mercer, it can be said that both entrepreneur didn't focused on end results while they were more
concerned for conduction of respective business operations effectively. Both entrepreneur
struggled in their respective life stages to be on the position on which they are right now. Their
respective characteristics, traits and skills that differentiate them with other business managers
are as follows:
Elizabeth Tom Mercer

Trait
 Innovation: Elizabeth
used various innovate
techniques in operation
of respective business
activities.
 Optimist: She
undertook various
operation activities of
the firm in a positive
way, by treating
failures as one step
ahead to success.
 Innovation: Tom
Mercer, adopted
innovation as only
approach to give
healthy competition to
respective company's
competitors.
 Self-belief: Tom
believed in his abilities
and performed various
tasks in organisation
with full confidence
without fear of facing
failures.
Characteristics
 Team Player: It
suggested all the
activities and tasks
performed in
organisation are well
coordinated and team
bounded.
 Courageous: It
highlights characterise
of entrepreneur being
courageous enough to
take big decision
regarding operational
activities of the
business firm.
 Daring: It suggest
characteristics of
entrepreneur for been
daring in taking up
respective decisions of
business firm.
 Hard working: This
characteristics provides
better way for
performing activities in
a business firm. As if
owner of organisation
is hard working, it
helps in serving as
motivation to various
employees of the firm.

Skills
 Good communication:
It carries skill of being
a good communicator
in an organisation. It
helps in better
coordination of
respective departments
of the business firm.
 Management
knowledge: For
effectively
implementation of
respective plans and
policies good material
knowledge about
management theories
and principles are
required.
 Technical knowledge:
This skill helps in
avoiding up of
wastages of valuable
resources of the firm.
 Time management:
This skill helped in
saving up to time being
valuable resource for
the company.
By analysing respective case studies of both entrepreneurs, it can be said that, both of
them have done excellent job in coming up with position of what they are right now. With
respect to Elizabeth, as per stats of management today, 2006, she was awarded with 7th most
successful female entrepreneur of the year. She is the owner of EG solution, the only firm that
provides guaranteed return on investments (Papagiannis, 2018). Initially she worked at HSBC
bank at age of 18 and after serving for time period of 12 months, her efforts shifted for working
at consultancy which helped large organisation for managing their staffs more effectively. By her
excellent dedication, innovative and optimist approaches and by effective coordination of firm's
staffs firm was able to achieve objectives and showed with increase of 28% sales turnover to 4.2
million cents for year 2005.
Difference between managers and entrepreneur of the business firm
Basis Managers Entrepreneur