Entrepreneurship: Small Business Management, Ventures and Economy

This report provides a comprehensive analysis of entrepreneurship and small business management, beginning with a definition of entrepreneurship and its role in economic stability. It explores various types of entrepreneurial ventures, including lifestyle, survival, managed growth, and aggressive growth ventures, highlighting their differences and similarities. The report also discusses the impact of micro and small businesses on the economy at local, regional, national, and international levels, emphasizing their importance in providing employment and fostering economic development. Furthermore, it examines the significance of small businesses and start-ups in the social economy, focusing on their ability to maintain personal relationships with customers and quickly respond to business problems. The report concludes by outlining the key characteristics and traits of successful entrepreneurs, reflecting on how personality and past experiences can either hinder or foster entrepreneurial endeavors. Desklib offers a range of solved assignments and past papers to aid students in understanding these concepts.

Entrepreneurship and small
business management

Table of Contents
INTRODUCTION...........................................................................................................................1
Part 1................................................................................................................................................1
P1 Various types of entrepreneurial ventures.........................................................................1
P2 Differences and similarities between entrepreneurial ventures.........................................3
P3 Impact of micro and small businesses on economy..........................................................4
P4 Importance of small businesses and start-ups in social economy.....................................6
Part 2................................................................................................................................................7
P5 Characteristics and traits of successful entrepreneurs.......................................................7
P6 Reflection of personality over entrepreneurial motivation...............................................8
P7 Background and past experiences that hinder or foster entrepreneurship.........................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
An entrepreneur is a person who initiates an idea of business and then take steps to
establish it, manage its functions and operations in appropriate manner, take risks and then
achieve its previously set organisational goals. Entrepreneurship is relating to developing any
business idea and then manage it in appropriate manner. It is simply defined as designing,
launching and then running that business effectively (Blackburn, Hart and Wainwright, 2013).
4Com PLC is one of the small business organisation that can be taken as an entrepreneurship.
This company provides services relating to business broadband, internet as well as other
services. Generally small businesses are managed by an individual or group of some people to
achieve personal as well as organisational objectives. Entrepreneurship and small businesses are
not only self oriented but they also provide sustainable growth to economy as well. Main
objectives of these are to maximise their profits and satisfying demands of customers. In the
given report different typologies of entrepreneurial venture, characteristics and qualities of
successful entrepreneurs, their mindset as well as past experiences are discussed.
Part 1
P1 Various types of entrepreneurial ventures
Entrepreneurship is related to taking any new idea and then work on it. Manage business
activities after taking and managing all risks associated with them an effectively run the
organisation. It helps in maintaining stability of enterprise in economy and move ahead to its
sustainable growth. These are a set of personal as well as professional qualities and skills of a
person that are used from origin to the end of any organisation. Following are different types of
entrepreneurial ventures: Lifestyle ventures: These ventures are such organisations that does not work or operate
their activities for profit motive in terms of monetary rewards. They work for make
modifications and wanted changes in their lifestyle (Bridge and O'Neill, 2012). These
type of entrepreneurs value their lifestyle more then money. These ventures are
established by those individuals who give preference to their families and their freedom
more then profits and money, they want to live wherever they are desiring to live. Survival ventures: These ventures do not have enough work space and premise and they
do not have sufficient resources to run business effectively. It is not necessary for these
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ventures to be registered. These enterprises generally operate on cash as well as exchange
basis and they do not have connection with banks and banking relations. Managed growth ventures: These business entities have a good infrastructure for
managing their work and they also have adequate resources. These ventures seek for a
continuous growth and development in economy (.Burns, P., 2010). They can develop
themselves by launching new products as well as expanding their businesses. Main
objective of such ventures is to maintain a sustainable growth in rising economy and
market.
 Aggressive growth: These type of establishments raise funds for their business through
equity and and their objective is to get significant and substantial growth in economy as
soon as it is possible for them. These are consisting of great risk management potential
and different innovative ideas to modify their products and increase their sales in market.
These undertakings are generally based on technologies. They increase efficiency of its
business as well as profitability by operating functions in great manner.
Following are typologies of entrepreneurship: Small business entrepreneurship: Small businesses are generally defined as small lever
enterprises or service providers such as plumbers, electricians, small stores or travel
agents that are operating their functions on small level (Carland, Carland and Stewart,
2015). They appoint their family members and local area people as employees of their
business and provide them employment. These businesses are found all over the country
and they cover a big area in economy. Scalable start-ups: These enterprises are those, who know their vision from starting day
when business was established. They keep a point of view to make changes in whole
world. Investors of such state of mind make investments in these start-ups. They explore
those business models that are repeatable and ascend able. Large company entrepreneurship: The main element of these enterprises is to introduce
new products in economy and create a space for their in market. They make pace in
mindset of their customers. Companies who are already in existence make such things
possible by activities of merger and acquisitions of any other company that has expertise
in innovation of products according to new technologies introduced in the market.
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 Social entrepreneurship: Companies those are involved in activities of satisfying
customer and society needs and work for welfare of society are considered in this
category. Their focus is on making society better and they do not perform activities for
welfare of society.
P2 Differences and similarities between entrepreneurial ventures
There are various type of ventures in market and all those are different from each other in
some ways. They are also similar in some matters (Carraher and Paridon, 2015). Following are
these differences and similarities between these ventures:
Types of ventures Differences Similarities
Lifestyle ventures These ventures are generally
established for making
changes in their personal
lifestyle but other ventures
mainly focus on profits in
monetary terms.
Orientation of
entrepreneurship of lifestyle
and survival ventures is low
comparatively.
Survival ventures These ventures suffers from
financial crisis and shortage of
resources and working premise
but all other ventures can
manage their work very well.
All ventures are involved in
working for their growth and
to survive in economy so as in
survival ventures. All these are
focused towards their
objectives.
Managed growth ventures These ventures focus on their
sustainable growth in market
but high growth potential is
needed in aggressive growth
ventures (Chittithaworn and et.
al., 2011).
Style of management in both
managed as well as aggressive
growth ventures in same and
that is strategic and their
approaches for exiting from
market are also similar and
those are sell and merger.
Aggressive growth ventures These ventures are growth
oriented and need a substantial
Managed growth and
aggressive growth ventures
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growth. They have efficient
infrastructure and resources to
manage their work but there
are some other ventures those
do not have enough
infrastructures and their
different objectives.
both operates for same
objectives of growth in
economy. Both focus on
making new products and
introducing them in market.
 Private enterprises: These entities are owned and handled by individuals on private
basis. Their control is not in the hands of government or any other local authorities but in
hands of owner of these enterprises (Dennis, 2011). Securities of such enterprises are not
traded on stock exchanges. Public enterprises: These organisations are managed by general public as well as
government and their agencies. There is private investment is also allowed in some of the
undertakings. These operate their functions to provide goods and services to public on
reasonable prices.
 Social enterprises: These businesses focus on providing services to society for their
welfare and maximising well being of the societies. They work for good causes and their
main motives do not include profit maximisation.
P3 Impact of micro and small businesses on economy
It is a very big challenge for the owners and managers of small businesses. these
enterprises are generally managed by only one entrepreneur or less number of people. These
businesses effects the economy of a country to the great extent. These enterprises are not able to
earn profits and generate revenues on a large scale such as large business enterprises but still
they have approach on a big area of country (Gorgievski, Ascalon and Stephan, 2011).
According to the research made on economy of UK it was found that there are 80.3% businesses
that are working in private sector and approx 89.9% businesses are of micro and small nature.
Parliament report presents that these undertakings are providing 32% employment and turnover
at eighteen percent. Following are their impacts on economy:
Local impact: These businesses have a great impact on local economy because these
businesses are involved in providing employment to the people residing in local areas as well as
their family members and that will help in developing the regional area. Different large
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enterprises also depend on existing small enterprises for hose work that are not related to their
business activities can be outsourced. They can make quick responses to the economical changes
in environment.
Regional impacts: Small enterprises can have different impacts on different enterprises.
It is all because of growth in employment rates. Where in any region competition is on peek and
more over it these is less chances of survival for any business enterprise then it will be difficult
for them to find their growth (Islam and et. al., 2011). These organisations effects different
regional areas.
National and international impacts: Small organisations provide their goods and
services to whole nation as well as in international market through different methods. These
entities play a vital role in increment of gross domestic products. They introduce and sell such
commodities in market they can also be used by country to export them to overseas. SME's
contributed £1.6 trillion in the start point of year 2014 and then in between 2009 to 2013 there
was a big change in introduction of small scale businesses and that was approx. forty seven
percent.
Figure 1: Contribution of Organisation
(Source: Antony, Vinodh and Gijo, 2016)
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P4 Importance of small businesses and start-ups in social economy
In any social economy small and micro business play a great role because most of the
area is generally covered by these small businesses. Following are some points that present
importance of a small business enterprise:
 Provide employment: These enterprises are small in nature and need few members or
employees to manage the activities of business. They appoint workers fro their local area
and also their family members and provide them employment. Because of it the rate of
employment of whole nation also increases (Lee-Ross and Lashley, 2010). These
businesses give jobs to others and minimise poverty rate of any country. So it can be said
that these start-ups and businesses are really very important for any business.
 Maintain personal relationships: There are less number of tasks and functions in small
businesses as compared to large scale businesses and these all can be managed easily.
Employees of these businesses have enough time to handle their customers personally
face to face. It helps in maintaining personal relationships between employees and
customers.
Figure 2: Role of Small Business
(Source: Delta Regional Authority. 2017)
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 Quick response to business problems: These business entities are able to quickly reply
and face the problems arose during business activities. They do not have to abide by any
commands form any authority because they have simple business process and business
environment. It is tough for large business enterprises to make changes in their business
strategies if any problem arises during business course but small and micro businesses
can quickly adapt these changes (Blackburn, Hart and Wainwright, 2013.). If any
problem arises regarding products to their customers then then it will be easy for small
businesses to solve these problems fast.
 Improvement in GDP: These businesses contribute a great amount in GDP of an
organisation. By increment in gross domestic product, economy of a nation becomes
powerful. It helps in continuous growth of economy and help in decreasing percentage of
imports as well.
 Innovative and inventive: These undertakings take risks and invent new products and
launch in market. Beside this they also make necessary changes in their existing products
according to the demand and needs of customers (Preuss, 2011). They make
improvements in their goods as well as services so that society can be satisfied and
economy can achieve a continuous growth.
 Satisfy society needs: These enterprises first assess the market needs and then take
necessary steps to fulfil these demands and provide societal satisfaction.
Part 2
P5 Characteristics and traits of successful entrepreneurs
Every entrepreneur should possess skills and qualities to manage all risks and functions
of any business in an effective manner. These businessmen have their different past
backgrounds, qualifications as well as different geographical conditions but still they have some
qualities that lead them to be successful entrepreneurs. Following are some of these traits:
 Risk management: It is very important for a person to be an entrepreneur that he should
not be afraid of taking risks because if a businessman takes more risks then he has
chances to earn more profits.
 Hard work and discipline: Every person should be hard working as well as disciplined
at the time of work. If a person possess these qualities then he will be able to maintain a
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healthy business environment. These qualities can lead him to be a successful
entrepreneur.
 Passionate: A businessman should be passionate about that work he is performing
because if the work is of his interest then it will be easy for him to perform that work
with full energy but the work is not in his interest then it will lead him to a stressful
situation.
 Confidant: If entrepreneur is confident then he can manage the stressful and worst
situations in business. There are sometimes situations in any business when everything
goes reverse but if the businessman is determined and confident then he can face all
worst situations also (Stokes, Wilson and Wilson, 2010).
There are many examples of successful entrepreneurs and Bill Gates and Mark
Zuckerberg are some of them. They are the most famous businessmen known around all over the
world. He achieved the position of CEO at the age of 24 and became a billionaire as well. On
another hand Bill Gates is the richest person of world. Following are the qualities and
characteristics of these businessmen:
Daring and smart worker: These entrepreneurs are not only hard worker but they are
smart worker as well (Nga and Shamuganathan, 2010). These are always ready to take risks and
make changes in their products as well as services that attract more and more people.
Great vision: Mark Zuckerberg and Bill Gates have a great vision regarding their
business plans and activities. They take any steps or make any decision after considering that
what will be the effect of these activities.
Continuous learner: They both possess quality of learning new things. They learn new
things from their past experiences and then take reasonable steps to rectify their mistakes. These
new things and experiences make these entrepreneurs successful.
P6 Reflection of personality over entrepreneurial motivation
Personality of a person helps him in being a good and successful entrepreneur. Family
upbringing, cultural differences as well as life style of these persons have effect on mind set of a
entrepreneur. It is necessary that the person should be consisting of some qualities such as
managing risks and operating his functions effectively. Following are some of the factors which
reflect the motivation and mindset:
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Family upbringing: If a person has a business family background and people from
family are connected with some business activities then in most of the cases that person also gets
attracted towards business activities (Ligthelm, 2010). But it is not necessary that everyone have
same kind of family upbringing but still they prove to be a successful entrepreneur.
Lifestyle: Lifestyle of a person also effects the mind set and motivation of him. If any
person has potential to fight with stressful situations then it will be very easy for him to manage a
business in a very appropriate manner. If they possess a quality of learning from their past
experiences and mistakes then they can easily handle business situations after considering past
mistakes made by them.
Cultural differences: Every person come from different places and they have different
cultures also. There are various geographical changes as well that effect the mindset and the level
of their motivation. These factors help in selecting the best option for their career purpose.
Personal motivation: It is necessary for every individual to be self motivated. He should
also possess skills and characteristics of an entrepreneur then only he can be a successful
businessman. This is one of the part of personality that motivates a person and changes his
mindset.
P7 Background and past experiences that hinder or foster entrepreneurship
There are many entrepreneurs who have different family backgrounds and various
experiences. For an example Mark Zuckerberg is a very well known and successful entrepreneur.
Eduction of a person plays an important role because if a person is qualified in business
management then it will be easy for him to be an entrepreneur (Sampaio, Thomas and Font,
2012). But it is not necessary because in case of Mark Zuckerberg he had eduction of software
and computer programming. But still he is well renounced as one of the most strong
businessman.
Family background of a person also matters. It is important that family is supporting
while starting any business because it will help him to achieve success and boost his morale as
well. In case of Mark Zuckerberg, his father was very supportive for his business plan of
introducing a social networking site named Facebook. He always supported him and even started
tuition for his software programming.
It is also been considered that economical situations are in favour of business plan or not.
There are always some chances that government and state authorities do not support the business
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plan as well as market is also not in favour in such condition it is not possible to develop the
existing business and entrepreneurship.
Professional skills, qualities and characteristics also leave impact or any entrepreneur. If
the person hold such qualities like confidence, determination, not afraid of taking risks then it
will definitely foster the entrepreneurship.
There are always some risks and rewards associated with any organisation and these can
be regarding the products that are going to be sold by a company or regarding competitors and
rivalry position in market (Schaper and et. al., 2014). There are some rewards also such as profits
and also it will satisfy needs of customers and society.
CONCLUSION
The above research report has been prepared after making investigation regarding
entrepreneurship and small business management. Entrepreneurship is related to taking a
business idea and then transform it into an enterprise. Risks and rewards are also involved in
such businesses. It has also been concluded in this report that small businesses play a very
important role in growth and development of economy. Their impact on local, regional, national
as well as international sectors are also discussed. It is necessary that entrepreneurship should be
encouraged and small businesses should be managed properly because they will help in growth
and development of economy.
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REFERENCES
Books and journals
Antony, J., Vinodh, S. and Gijo, V. E., 2016. Lean Six Sigma for Small and Medium Sized
Enterprises: A Practical Guide. CRC Press.
Blackburn, R. A., Hart, M and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development. 20(1). pp.8-27.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small
business. Palgrave Macmillan.
Burns, P., 2010. Entrepreneurship and Small Business: Start-up. Growth and Maturity. Palgrave
Macmillan.
Carland, J. C., Carland, J.W. and Stewart, W.H., 2015. Seeing what's not there: The enigma of
entrepreneurship. Journal of small business strategy. 7(1). pp.1-20.
Carraher, S. M and Paridon, T.J., 2015. Entrepreneurship journal rankings across the discipline.
Journal of Small Business Strategy. 19(2). pp.89-98.
Chittithaworn, C and et.al., 2011. Factors affecting business success of small & medium
enterprises (SMEs) in Thailand. Asian Social Science. 7(5). p.180.
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.
Gorgievski, M. J., Ascalon, M. E. and Stephan, U., 2011. Small business owners' success
criteria, a values approach to personal differences.Journal of Small Business
Management. 49(2). pp.207-232.
Islam, M.A., and et.al., 2011. Effect of entrepreneur and firm characteristics on the business
success of small and medium enterprises (SMEs) in Bangladesh. International Journal of
Business and Management. 6(3). p.289.
Lee-Ross, D and Lashley, C., 2010. Entrepreneurship and small business management in the
hospitality industry. Routledge.
Ligthelm, A. A., 2010. Entrepreneurship and small business sustainability.Southern African
Business Review. 14(3).
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Neck, H.M and Greene, P.G., 2011. Entrepreneurship education: known worlds and new
frontiers.Journal of Small Business Management. 49(1). pp.55-70.
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).
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Preuss, L., 2011. On the contribution of public procurement to entrepreneurship and small
business policy. Entrepreneurship & Regional Development. 23(9-10). pp.787-814.
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and entrepreneurial activity. Psicothema. 23(3). pp.453-457.
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Schaper, M. T and et.al., 2014. Entrepreneurship and small business.
Shane, S., 2012. Reflections on the 2010 AMR decade award: delivering on the promise of
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Stokes, D., Wilson, N and Wilson, N., 2010. Small business management and entrepreneurship.
Cengage Learning EMEA.
Storey, D.J and Greene, F.J., 2010.Small business and entrepreneurship. Financial
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