Entrepreneurship and Small Business: Ventures, Skills, and Impact

This report provides a comprehensive overview of entrepreneurship and small business management, exploring different types of entrepreneurial ventures and their relationship with entrepreneurship typologies. It examines the impact of micro and small businesses on the economy, highlighting the importance of start-ups in the growth of the social economy. The report also details the characteristic traits and skills of successful entrepreneurs, analyzing how personality aspects reflect entrepreneurial motivation and mindset. Furthermore, it discusses how background and experience can either hinder or foster entrepreneurship, providing a holistic view of the entrepreneurial landscape. Desklib provides this and other solved assignments to help students in their academic journey.

Entrepreneurship and Small Business Management
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Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
Different type of Entrepreneurial venture and its relation with typology of the
entrepreneurship.....................................................................................................................3
Similarities and differences between entrepreneurial venture...............................................6
LO 2.................................................................................................................................................9
Impact of micro and small business on the economy ...........................................................9
Importance of small business and business start-ups to the growth of social economy.......10
LO 3...............................................................................................................................................11
Characteristic traits and skills of successful entrepreneurs.................................................11
Aspects of the entrepreneurial aspect’s personality reflect entrepreneurial motivation and
mindset.................................................................................................................................13
LO 4...............................................................................................................................................14
Background and experience can hinder or foster entrepreneurship....................................14
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18
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INTRODUCTION
Entrepreneurship is all about the process and a study to start or create a new business
with the aim of generating profit while taking the risk.
This report is all about the entrepreneurship and small business management that will
explain the market intelligence and give the advice in establishing the small business and
entrepreneurs. Report will include the entrepreneurship and small business management and its
practice. This will also include the different type of the entrepreneurship and type of
entrepreneurial ventures and the similarities between them. Furthermore, it will include the
impact of the small and micro business on the economy. Report will also explain the importance
of the small, micro and start-ups to the growth of the social economy. Report will describe the
characteristic and skills of successful entrepreneurs that make them different from other
entrepreneurs. It will include aspect personality that reflect entrepreneurial motivation and mind-
set. And report will tell how background and experience can hinder and foster the
entrepreneurship.
LO 1
Different type of Entrepreneurial venture and its relation with typology of the
entrepreneurship
Introduction
This will include the definition of Entrepreneurship. It will also cover the different
typology of the entrepreneurship and the types of the venture.
Entrepreneurship
Entrepreneurship is the process and a study to start or create a new business with the aim
of generating profit while taking the risk. Entrepreneurship is all about the people who takes their
career and dream into their hands and lead it in their own choice direction to create new business
and life on their own terms (Kuratko, 2016).
Entrepreneur
Entrepreneur is a people or individual who found, build and run a small business with
taking the risk and give the rewards to the venture with the aim of making profit. An
entrepreneur is innovator, source of good and new ideas, services and business.
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Typology of entrepreneurship
There are three types of Entrepreneurship:
 Individual Entrepreneurship – Individual entrepreneurship refers to the person or
people that start and runs the business individually. In this a single entrepreneur invest in
the business individually to set up a new venture and takes all the risk related to the
business individually. In this type of entrepreneurship include all the small size business.
This is a good rather than other type because all the profit margin would be only
belonging to that individual there is no need of sharing the profit (Hechavarría and
Welter, 2015).
 Corporate Entrepreneurship – Corporate entrepreneurship or the intrapreneurship is
referring to the applying the entrepreneurship inside the established organisation, that
believe into generating new and creative ideas within the established business and lead it
to improvement of the organisation profit and financial gain. In which they support and
encourage their employees to behave like entrepreneur in the existing organisational
structure (Entrepreneurship, 2019). Right vision and skills encourage the employees to
find new opportunities and ideas, that helps in innovating new products and services.
 Public sector Entrepreneurship – Public sector entrepreneurship means to take
initiative to innovating the public policy that helps in generating the greater economic
value by transforming the status of the economic environment which is more productive
to economy that create and innovate the activities for the public welfare. This public
sector entrepreneurship as it names refers to take the risk in the economic activities and
policies that would help the public organisation in gaining the profit and which would
work for the public satisfaction (Fayolle and Gailly, 2015).
Types of Entrepreneurial Ventures
An entrepreneurial venture or business venture us also be a small business which is built
by investing one or more individuals and groups with the expectation that business brings the
profit. Most of the business venture is created on the basis of the demand and needs of the
customers and the lack of supply in the market. Entrepreneur\ and investor proceed to build the
idea of creating, producing and selling the product.
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11 Start-up – Start-up venture is the young company that is just launched in the market or
just begin to develop. Start-ups are usually a small business and being financed and
operated by the individual or group of founders. These companies offer the products
which are not being delivered elsewhere in the market (York, O'Neil and Saraswathi,
2016).11 Acquisition – This is the situation where large companies purchase the share of the small
entrepreneur to take control on it. Through this they also try to purchase all of its sahre
and stocks.11 Franchise – In this business situation, one company sells the product of the other
company with having the name and image of the other company and its products.11 Joint venture – This is the condition, when two or more company jointly come together
in order to open new business with having new idea or product (Urbano and Aparicio,
2016).11 Public-Private partnership – In this, private and public companies collectively open the
organisation to the betterment of the society.
Relationship between types of entrepreneurial venture and typology of entrepreneurship
Individual entrepreneurship and start up: There is relationship between is, That both the ventures
can be start or build by the individual on a low scale. That provide the service and product to the
customers.
Corporate-entrepreneurship and joint venture: These both type of the ventures works for the
development of the organisation and to increasing the growth profit of the organisation
Life cycle of entrepreneurial firms
There are three stages of the entrepreneurial firm:
Birth stage – This is the initial stage of the any entrepreneurial firm where founder is ready with
all the plans, investment and ready to take risk and implement the plan to start firm.
Breakthrough stage – In this stage business consistent generate the source of income and taking
new customers, cash flow has improved (Corporate Entrepreneurship2019).
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Maturity stage – In this stage firm has stable profit year on year and firm enjoys the high
growth rate.
Conclusion
From the above it is concluded that there are different types of ventures that help in economic
growth of the country and also concluded that these ventures are interconnected with each other.
Similarities and differences between entrepreneurial venture
Introduction
This will include the difference between entrepreneurial ventures. And will also include
the similarities of these entrepreneurial ventures and short brief about intrapreneurship and
Social entrepreneurship.
Differences between three main entrepreneurial ventures
Life style venture Smaller profit
venture
High growth venture
Type This life style venture
consists under
franchise venture.
All the low profit
venture consist under
the start up.
This high growth
organisation comes
under the joint venture
and public private
venture.
Aim Aim of this venture is
to transform the
lifestyle of the
common people.
Target of this low
profit venture is to
deliver small-scale
products at low price.
Target of high growth
venture is earn the
maximum profit share.
Products This venture deliver
the products which are
related to daily life
style of the people,
like clothing’s,
footwear, beauty
Low profit venture
includes grocery store,
bakeries, hair dresser,
photographers,
restaurants, etc
(Mrkajic, Murtinu and
High profit growth
ventures includes the
large retail
supermarket,
manufacturing of the
car, big hotels and
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products and many
more.
Scalera, 2019). many more.
Market share It has limited market
share.
It has very limited
market share that can
contribute in economy.
Half of the market
share in the market is
by the high growth
ventures.
Opportunities There are large
number of
opportunities in the
market for the life
style venture, because
its products are used in
every day life style of
every common people.
At domestic market
level, it has large
opportunities.
Market opportunities
for the high growth
ventures are very high
and also have the
opportunities to
expand its market
globally.
Investment For Life style venture
there is also no need to
spend such high
amount (Hamdan,
2019).
These small-scale firm
can be established by
investing low amount.
These types of
ventures need high
amount of investment.
Similarities of entrepreneurial ventures on the basis of:
New ideas – All the entrepreneurial ventures are being started with the same motto of provioding
the new generated products with having the new ideas that are useful for the customers and
market. And also not available in the market already (Fayolle and Gailly, 2015).
Being risky – All of the ventures are being started and begin their business with having the risk
of failure. They do not take tension of being fail in the future. They have to take risk for setting
up any new business in the market. The business will give the return of their investment or not,
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customers would accept the new products and services or not. There are high risk of setting up
new ventures that every type of ventures take risk while building up new venture.
Developed by open minded entrepreneurs – All of the entrepreneurial ventures are operated
by the open minded entrepreneur as they are open to make change in their strategies that help
them to be successful in m,market. Open minded entrepreneurs think beyond the boundaries that
helps to set up new ventures with new ideas and innovative products (Hechavarría and Welter,
2015).
Having more innovative products – Like start is usually set up to provide the new products and
services which are not delivered in the market. Like this joint venture are also played the same
role to provide the innovative and new products which the company not produced before. And
the public private partisanship is done with the aim of changing society and make improvements
for this they make new and innovative policy and start firm that helps in changing the society.
Entrepreneurship and Social entrepreneurship
Entrepreneurship is the practice of the entrepreneurship by the employees within the
organisation. It involves the new ideas and opportunities in order to fulfil the purpose of creating
the value in the organisation. And Entrepreneurs are those who applies this practice in the
organisation and takes the responsibility to innovate new ideas, products and process or any
invention in the organisation. This helps the firm to grow more, attract the new customers and
increasing the revenue of the firm (Kuratko, 2016).
Social entrepreneurship is the basic level of business where business is being run for the
social cause. It works to recognise the social problem of the society and work for to achieving
the social change in the society by applying the entrepreneurial principles, process and
operations. These organisations only work for the betterment of the society not for gaining the
profit. This social venture is all about to research the social problem and then creating and
managing the social venture to accomplish the target of the desire change in the society, this type
of the ventures helps the society to improvement its living standard. These organisations
associated with the non-government and non-profit organisation.
Conclusion
It has bee concluded from above study is that there is difference in the life style, smaller
profit and high growth ventures that describe the investment level and products of these ventures.
And also got to know the life style stages of the firms.
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LO 2
Impact of micro and small business on the economy
Introduction
This answer will include the contribution of the small and medium-sized business in the
economy and will also include the analysis of role of SMEs in the UK economy.
Impact of medium-sized businesses on economy
Enhancing the market share of medium sized organisation increases and contribute in the
growth of a country’s economy. Increasing job opportunities in medium sized organisations
helps in reducing the level of unemployment which assist in improving the economic condition
of the country. (Burns and Dewhurst, 2016). According to recent studies, the rate of registration
of medium sized organisation has been increased as compared to multinational companies. A
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Illustration 1: Statics of UK SMEs business
(source: The Role of Start-ups and Small Businesses in Today’s Economy)

major benefit of medium size organisations is that they have high potential and capability of
generating higher employment at relatively low investment and capital.
These types of businesses easily adapt frequently changing business environment
and take advantage of innovative technology as well as making use of internet for e-commerce
and transaction.
Impact of large businesses on economy
Large organisations or businesses also plays a major role in development of economy in a
country. These types of businesses contribute in local as well as global economy by expanding
the company’s reach in global market.
The large industries or organisations have greater productivity that helps to earn a large
amount of profit in the global market. It provides increased wages improving the employment
rate and provide great benefits to the economy of a country.
Impact of SMEs on International Economy
SME’s are responsible for enhancing the market competition and also brings new
techniques within the business environment by heating up the marketplace. (Kozubíková and
et.al, 2015). These types of business cover a major part of market in developed as well as
underdeveloped countries. More than 90% of SME’s can be found in every country that are
responsible for increase in employment rate.
Conclusion
From the above answer it can be concluded that the role of the SMEs in the UK economy
has large as comparison to the private sectors business and provide the job opportunities in the
UK economy.
Importance of small business and business start-ups to the growth of social economy
Introduction
This answer will include the importance of the small business and start-ups in the in the
growth of the social economy. And also include the explanation of the CSR (Corporte social
responsibility).
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Social economy focuses on the relationship between social behaviour and economics. It
examines, how the ethics, social norms influence the buying behaviour and cre4ate the quality
job that can have the ability to meet the current challenges.
Social enterprise is that which helps in improving the social well-being, environmental
sustainability and economic performance, living standard of the society.
CSR (Corporate Social Responsibility)
Corporate social responsibility is a strategies by which companies take the responsibility
for betterment of the society and environmental impact of their business. It is the integration of
the social beneficial programs and activity into business model and culture (Rhodes, 2015)..
Importance of business start ups
 Start-ups help to create more jobs – As the number of start up increasing in the
country, number of jobs are also increase with it. This help to reduce the unemployment
from the country by providing them large number of jobs to them.
 Increase in GDP - GDP (gross domestic products) also be increased by the help of the
start up business. As the number of start up business are contribute a lot to the economy
so it help to increase the share of GDP in country's economy.
 Better living standard – All the star ups are begin with having the creative ideas and
new technology, as this star ups help to provide more jobs to the people , then indirectly
the living standard is increased and become better (Brinckmann and Kim, 2015).
Conclusion
From the above answer it has concluded that SMEs play vital role in increasing the social
economy and social enterprise. Small business also helps in improving the society and living
standard of the society.
LO 3
Characteristic traits and skills of successful entrepreneurs
Introduction
In this answer it will include Personal characteristics and skills of an entrepreneur that
help them to become successful entrepreneur. And will also discuss about whether entrepreneurs
are born or made.
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Personal characteristic of successful entrepreneurs
Various characteristics are carried by the successful entrepreneurs, these are as follow:
 Need for achievement – There is the need for the entrepreneur to achieve the success in
the market. They do not have any other choice except this and also do not have career
option that they can follow after this (Brinckmann and Kim, 2015).
 Self-confidence – Entrepreneurs are confident regarding all their activities and decisions.
They do not doubt on their decision making skills ans strategies which they take for the
success of business (Ziyae and Heydari, 2016).
 Being Competitive – This is the main characteristics of the entrepreneur that are always
ready for the competition in the market and do not afraid from the competition growth.
Skills for successful entrepreneurs
 Business skills – Entrepreneur have the business skill in their by birth. This is being
gained and adopt by their blood if any family member is good entrepreneur.
 Technical skills – Successful entrepreneur is always up to date with the changing
technological change. This help thy entrepreneur to become successful in the market.
And help to provide quality product as well to the customers (Ziyae and Heydari, 2016).
 Human relations skills – Entrepreneurs are very active in making relation with the
people like customers, clients and other stakeholder. This help to in their strategic
planning, and become successful in market.
Entrepreneurs are born or made
Many entrepreneurs are there in the worlds in which many of them innate abilities and
many made by life experience and self-qualities. Self-characteristics of the entrepreneurs like
confidence, open minded, flexibility, technical skill all are not gained from the DNA, have to
learned from the experience and hard work that make entrepreneur a successful entrepreneur
(Sanberg, 2018).
Conclusion
From the above discussion it can be concluded that the there are various characteristics of
an entrepreneur 5that make them successful and also concluded that they made not born.
Aspects of the entrepreneurial aspect’s personality reflect entrepreneurial motivation and
mindset
Introduction
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