HNC Business (Level 4): Entrepreneurship and Small Business Report

This report provides a comprehensive overview of entrepreneurship and small business management, examining different types of entrepreneurial ventures and their relationship to entrepreneurial typology. It analyzes the similarities and differences between these ventures, as well as the impact of micro and small businesses on the economy, supported by relevant data and statistics. The report further explores the importance of small businesses and business start-ups for the growth of the social economy and the characteristics, traits, and skills of successful entrepreneurs, differentiating them from other business managers. It also discusses how entrepreneurial personality aspects reflect motivation and mindset, and how background and experience can either hinder or foster entrepreneurship. The report uses examples from Eddison's GE group and the UK economy to illustrate key concepts and provides a detailed analysis of the subject matter.

Entrepreneurship and Small Business
Management

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship......................................................................................................1
P2 Explore the similarities and difference between entrepreneur ventures...............................2
M1...............................................................................................................................................4
TASK 2............................................................................................................................................4
P3 Interpret relevant data and statistics to illustrate data how micro and small businesses
impact on the economy...............................................................................................................4
P4 Explain the importance of small businesses and business start-ups to the growth of the
social economy............................................................................................................................6
M4...............................................................................................................................................7
D2................................................................................................................................................8
TASK 3............................................................................................................................................8
P5 Determine the characteristics traits and skills of successful entrepreneurs that differences
them from other business managers............................................................................................8
P6 How aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mindset......................................................................................................................................10
M3.............................................................................................................................................10
D3..............................................................................................................................................10
TASK 4..........................................................................................................................................10
P7 Examine using relevant examples how background and experience can hinder or foster
entrepreneurship........................................................................................................................10
M4.............................................................................................................................................11
D4..............................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneurship is the fast forward business activities which influence many other
individuals to take start-up and new activities. It is the process of designing, launching and
running a new business which is often initially a small business activities and the people who
created new business and star-up with their own ideas its called Entrepreneur. It is defines the
particular single person who established their business at their own level. Besides, present report
based on Entrepreneurship in the context of Eddison's GE group. Further apart it will discuss
about the different types of entrepreneurial ventures and relate to the typology of
entrepreneurship. It will also explain the similarities and differences between entrepreneurial
ventures. It will further describe about the importance of small business and business start-ups
for the growth of social economy and social development. Characteristics traits and skills of
successful entrepreneur which makes them differ from the other business managers. How
entrepreneur background and experience helps them to make its career more fruitful and
effective.
TASK 1
P1 Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship.
The impact that small business sector has on the economy is well known which is very essential
and required for the economic development. It will require holding that position in terms of
necessary things. It is very required to enhance the role of entrepreneurship ion the country in
order to introduce new market growth. Eddison's GE group adopts is the another major high
group entrepreneur which is an American multinational conglomerate incorporated in New
York. Moreover, different types of entrepreneur are work in their own level (Mariotti and
Glackin, 2014). It makes huge changes and impactful decision making approach. Moreover,
entrepreneur has gives positive impact on the growth of national economy, which gives positive
impact on the behaviour. Here are giving some different types of entrepreneur
Small business entrepreneurship: This entrepreneur sees the success of others and
immediately starts to question it. Small entrepreneur are generally started their business at small
investment. They enhance opportunity growth and label in the market growth. In UK there are
number of departments are their to work for the development. Small entrepreneur always
1

having limited resources and capital to invest in the business activities. Besides, the objective of
the business is to earn customer faith full fill business target and objectives. Small entrepreneur
are like grocery stores, hairdressers, consultants, travel agents, internet commerce store fronts,
carpenters, plumbers, electricians etc. his running its business is just for earning money to live
their life and full fill their basis needs of their families.
Scalable Startup entrepreneur: these are the entrepreneurs who change the world from his
one idea. It enables the opportunity and growth for the economy. They are good at to attract
number of investors towards more development (Schaper and et.al., 2014). They hired the best
talent and skill full environment growth. It is the growth of more development opportunity. It is
the profit loss income growth. The focus of the business is on the scalable requires even more
venture capital fuel rapid expansion.
Large company Entrepreneurship: large company entrepreneur is based on large scale it
provides great opportunity for the company. Its focus on the customer needs and wants. For
that, They always enhance the customer service and quality management in the organisation.
These types of entrepreneurship venture they always adopt best for them or for its business
services. Ironically large company size and culture gives high performance level for big
expansion.
Social entrepreneurship: Social entrepreneurship is the non profit organisation which aiming
is to protect the interest of people are not much able to protect its own basic life. Moreover,
another major fact of social entrepreneurship is that they always provide free services for poor
peoples.
Female entrepreneurship: Female entrepreneur are established for the purpose of women
empowerment. Female also very much interested in the development of business growth and
earn profit revenue and market share growth.
Entrepreneur typology has defines into many forms. There are number of different definition of
entrepreneurship and entrepreneur. Different business owner adopt their own learning strategy
in the business. Moreover, entrepreneur also effect from other activities such as different
hierarchy channel and position they affect company policies. Different typology enhance the
individual for better development and achieve their target goals for their business growth.
P2 Explore the similarities and difference between entrepreneur ventures.
One and foremost similarities between different entrepreneur is that Each and every
2

entrepreneur having one objective that is to earn profit maximization, for which they run their
business activities and development plans. It gives new scenario for the organisation to promote
business activities. Another similarity is that, every individual or business owner require
adopting corporate social responsibility to enhance the social growth. Through which they keep
the company image in the market and stability in long term (Hatten, 2015). All entrepreneur
organisation adopts employees to full fill the business objectives in productive manner. It gives
positive impact on the business nature towards the development.
Differences between types of entrepreneurs.
Basis Small
ventures
Scalable
ventures
Large
ventures
Social
ventures
Female
ventures
Objectives Small venture
has one
objective to
run their
business to
just full fill
their family
needs.
Its main
objective is
that to
enhance
business
growth and
objectives
Large
organisation
main goal is to
provide the
best quality
services and
earn profit
revenue.
Its main aim is
to provide
social welfare
and remove
poverty in
nation.
Its main aim is
that to earn
women
empowerment
and different
opportunity.
Purpose Its main
purpose is to
feed their
family needs.
Its main
purpose is
grab more
opportunity.
Its main
purpose to
make profit.
Purpose of
social ventures
to protect
social
economic
cause which
impact on the
poor people.
Female
entrepreneur
has main aim
is to earn
profit revenue
and market
image.
Capital Small
ventures
invest capital
by their own
Small ventures
arrange their
capital from
their friends
Large
organisation
always take
loan from
Social
ventures or
non profit
organisation
Female
entrepreneur
organise their
capital from
3

saving. and family or
take loan from
bank.
bank or
liquidate their
bonds and
shares for the
capital
requirement.
arrange their
capital from
charity and
donation.
taking loan
from banks.
Risk It involves no
risk
It involves
risk lesser
than large
ventures.
It involves
huge risk.
It involves no
risk no profit.
It also
involves risk
factor.
Customer
oriented
It's not
customer
oriented they
only run their
business for
some profit
making
interest.
Its value
oriented and
creative to
make
customer
satisfied and
happy.
Its customer
oriented who
provides great
quality
services to
their
customers.
Social
ventures
always thinks
for betterment
in the
organisation.
Female
entrepreneur
aiming is that
to make
customer
happy and
satisfied.
M1
Entrepreneurship is the essential part of the organisation and make essential part in the
economy. In both corporate and public sector it makes good impact on the business activities.
Moreover, another major impact of the company is that to promote business economy. Along
with that, it will also require making good presence in the market in terms of making good profit
and earn market share.
TASK 2
P3 Interpret relevant data and statistics to illustrate data how micro and small businesses impact
on the economy.
Being a small scale owner is very challenging these days, small business owner are
belongs from different new owners each with their self issues. Moreover, it will also beneficial
4

for the organisation is that to maintained better environment life for the organisation. Small
organisation operates its business activities in small level and try to grow in expand level.
Moreover, small business organisation is the another important factor to make economy more
strong and effective. Small image organisation are having long lasting image in the market by
giving high opportunity. Moreover, small business gives large impact on the behaviour of
population. Small business enterprises are the backbone of the UK economy which driving
growth, opening new markets and creating job therefore for contributing is vital. This is the
process of vital economy which creating national economic growth to the country (Burns, 2016).
Small business enterprises, which makes different sources of funds and opportunity for the UK
economy. SME creating competition and challenging growth factor of the economy. It will
moreover collecting growth factor and impacting on the behaviour of creating more skills and
potential environment. Along with that, SME contribution in the UK economy is that 99.9
percent. Moreover, it was the another factor to take care of the small needs of the consumers.
Small scale business and new start-up grow up the market and introducing many more services
and expansion level. It creates new dealing process of making towards the ongoing process. In
2014 there were 5.2 million businesses in the UK according to figures published by the
department for innovation business and skills. Over 99% small scale enterprises take care the
need of people and organise great opportunity and growth for unemployed people. It grows the
economy and give the best opportunity to the people to make possible things. In according to the
economic power house, In the UK the vast majority of business employ out of which 33 of
employment and 19 % of turnover. Moreover, it will also take the part of the organisation which
makes easier task for the organisation to take care the needs of organisation. Small scale
organisation take care the needs of organisation profit. Small scale gives heavy impact on the
overall development of the economy in terms of every scenes. Moreover, another major part of
the organisation take care the needs of organisation. Moreover, another major part of the
organisation is that to take care the needs of customers. There were a record 5.7 million private
sector business a t the start of 2017. Moreover, this is the increase of 197000 since 2016 million
more than in 2000. Since, 2016 in UK economy 41000 employing businesses increased in more
rapid manner. Besides, number of non employing bushiness by 155,000.
SME and the economy: in terms of economy of the UK has also expanded and increase with
number of companies. In terms of total employment in SME sector was 16. 1 million out of
5

which 60% of them are from private sector employment in the UK market. Moreover, another
major issues are majorly linked to the organisation process.
Composition of the business population:
In 2017 there were 1.3 million employing business and 4.3 million on employing
businesses. On the other side, it will more impressive and effect full process to making
environment more productive and impressive (Mahadea and Kaseeram, 2018). Location is the
another major changes and effective process making task. UK economy 5.7 million business,
45% were registered for VAT or PAYE. From the past so many years it has been changed and
growing economy of UK.
P4 Explain the importance of small businesses and business start-ups to the growth of the social
economy
Small business enterprises are the backbone of the economy through generate economic
growth for the society and their quality of development. Small businesses has increasing high
growth factor for organisations and for the society as well. Besides, they generate different forms
of product and services for their quality maintenance and offering new technology products to
buyers as well. It will more impactful for the society upliftment. Entrepreneur is the only leaders
who drive small scale businesses in the UK economy. They contribute innovation, technology,
variety of product and services, employment and standard of living. This process of development
provides huge opportunity for the organisation development. It also makes new powerful impact
for the future development process. Small scale organisation is the great economy for the
organisation. For example Thomas Edison he is known for overcoming a myriad of life
challenges including debilitating illness at childhood after so many years they never give up and
earn good amount of money and share in the market. He is the example of good entrepreneur in
the challenging market. He started their career as an investor in New Jersey with automatic
repeater and his other improved telegraphic devices (Schermerhorn and et.al., 2014). These
types of entrepreneur influence social economy growth. It makes environment positive and
influencing towards success. Small scale has an opportunity to grow its business at large level in
terms of good presenting task. Without start-ups small scale business have not grown more due
to which company fails to reach innovation and creativity.
Importance of SME in Social economy
6

Being innovative: SME offering innovation and creative product and services. It
provides great impact on the innovation world. Entrepreneur is known for its creativity and skills
which creates positive scenario in the market. Because of improper suggestions and implication
process.
Job Creation: Small scale sector has increasingly providing great impact on the social
economy by providing employment opportunity to the unemployed people. It gives new
opportunity to live the life in standard form (Mamabolo, Kerrin and Kele, 2017). Moreover,
another major impact of the SME is that they provide equal opportunity to people in order to get
the best effective process making task.
Standard of living: Small Scale businesses offering new jobs to those persons who
having enough capabilities and skills to get the job. SME provides job through people get enough
income to live their life. Through which they full fill their family needs and requirements. This
process reduce unemployment ratio in terms of removing social cause. Moreover, another
process of income is that to full fill their basic needs through which people enhance their
standard of living process.
Efficiency: it also helps to enhance the efficiency level of employees in terms of
productive work. Small Scale enterprises are much beneficial as compare to medium size
businesses. Small business enterprises are provided more flexibility and innovation the
consumers. Moreover, another part of the organisation is that to promote small scale business in
terms of better performance.
Wages and Benefits: small scale enterprises provides good amount of wages and salaries
to workers according to their skills and wants. Small scale enterprises has huge scope for
development. Through they provide better services to consumers.
M4
Small and large organisation are totally different from each other. Small scale business
has based on small scale with limited profit margin. Besides, large organisation based on large
scale in terms of impressive number of objectives. Big organisation also give large economic
growth in order to enhance the effective management tool. Moreover, it will also give positive
impact on the behaviour of economy growth. In UK economy 99% share contributed by small
scale enterprises rather than large organization.
7

D2
Small Scale enhance the national economy by increasing the standard of living and by job
creation. Besides, it also introducing innovation (Solomon and Linton, 2016). Moreover, in order
to provide more opportunity and growth level. In order to more specific creation
TASK 3
P5 Determine the characteristics traits and skills of successful entrepreneurs that differences
them from other business managers.
Small entrepreneur are the most challenging and innovative, it creates so many
opportunities for itself and for customers as well. Entrepreneur requires much more than just big
ideas. New entrepreneur has unique idea and creativity which the implement in the business
function. With the help of skills and entrepreneur characteristics they enable the things and
create new opportunity. Thomas Edison is the successful entrepreneur who overcome from their
different life challenges. Thomas Edison suffering from many health issues such as debilitating
illness at childhood. He is the multi millionaire who started their business from through very
struggler part. They struggled their idea till they achieve that one into productive manner. They
invent new ideas such as light bulb, phonograph now which they become telephones. They
revolutionise the small idea into big one. He is the last 7 child in his family who suffering from
many disease like fever, ear infection leading to his deafness. His mother inspires Edison to take
its own initiatives and achieve something great in their life. Entrepreneur has borne with some
skills and talent to become a successful business man. With the help of skills and leadership
characteristics single person become successful entrepreneur person (Fayolle and Gailly, 2015).
It gives lots of opportunity and growth in order to meet the final goals and objectives. There are
some characteristics and traits of successful entrepreneur.
Motivation
Motivation is the tool or technique which acquire motivation skills and higher
opportunity level for an individual. Motivation is the comes from hard-working and motived to
succeed. A successful entrepreneur always motivated and give motivation to others. Such as
Thomas Edison said that “I am Proud of the fact that I never invented weapons to kill”. They
motivate others that never create wrong things which harms to others. They motivate others to
8