Small Business Management: Ventures, Impact, Traits, and Hindrances

This report provides a detailed analysis of entrepreneurship and small business management, covering various types of entrepreneurial ventures, their similarities and differences, and the typologies of entrepreneurship. It interprets statistics to demonstrate the impact of micro and small businesses on the economy, highlighting their local, regional, and national contributions. The report also examines the importance of small businesses and start-ups in fostering social economy growth, along with the characteristics, traits, and skills of successful entrepreneurs. Furthermore, it explores how an entrepreneur's personality and background can influence their motivations and either hinder or foster their entrepreneurial journey. The report uses data and examples to support its analysis, offering a comprehensive overview of the factors driving success in entrepreneurship and small business management.

Unit 9-
Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Different types of entrepreneurial ventures and typology of entrepreneurship....................3
P2. Similarities and differences between various entrepreneurial ventures................................5
TASK 2............................................................................................................................................7
P3. Interpretation of statistics for showing impact of micro and small business on the
economy......................................................................................................................................7
P4. Importance of small businesses and business start-up in growth of social economy...........8
TASK 3............................................................................................................................................9
P5. Characteristic, traits and skills of successful entrepreneurs..................................................9
P6. Aspects of the entrepreneurial aspects personality reflects entrepreneurial motivations...10
TASK 4..........................................................................................................................................11
P7. Background and experience can hinder or foster entrepreneurship....................................11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneurs are those people who works in the direction to put dreams into reality.
They invent or think of a new idea according to the trends and changing preferences and needs of
the society and then implement the same to earn money out of it. Entrepreneurs are the main
people who works to increase the economy of a nation by providing job, generating revenues,
etc. to the people in need which helps in raising their living standards. The entrepreneurs start
working on this by establishing a small or a medium sized business through which they try to
support country's economy (Bischoff, Volkmann and Audretsch, 2018). This report determines
various types of ventures and also the types of typologies of the ventures of entrepreneur along
with the differences and similarities between them. The report will show the interpretation of
relevant statistics to show the impact of micro and small scale business on the country's
economy. This report also explain the importance of the small scale business along with the
growth of social economy due to the start-ups and also traits, characteristics and skills required in
any successful entrepreneur. Lastly, this report will also be focusing on the aspects of the
personality of entrepreneur which reflects the motivation and mindset along with how a
background and experience can be hindered or fostered in an entrepreneurship.
TASK 1
P1. Different types of entrepreneurial ventures and typology of entrepreneurship
Those individuals who are responsible for the formation of a new business in which they
provide products and services to the customers in consideration is called as an entrepreneur. This
is the type of venture which is formed by an entrepreneur is to generate profit and improve the
living standards. These ventures are formed with a particular and pre-set objective and goals.
There are many type of entrepreneurial ventures which are set up by the individuals according to
the types of services they provide, size, scope or purpose.
Entrepreneurial Activity
It is the process of a business by which they create economic activities and generate the
value of their business (Rouchy, Tavassoli and Wernberg, 2021). These activities includes ways
by which new ideas are explored so as to develop the business and its growth. After generating
new ideas, they are implemented into reality to provide products and services to the customers
according to their needs and preferences. The idea so generated and the business so formed is to

generate money by an entrepreneur and to provide with the employment which will lead to
increasing economy.
Various types of Venture Small Business: This is the type of venture which has employees, size, capital and
operations at very small scale. The formation of this type of venture is to earn profit by
providing services and products to the customers. This type of venture can be formed
either by an individual person or in partnership. The main aim of starting this business is
to earn profit and improve living standards. This type of business have not more than 50
employees working and also the net worth of the business is £2 Million. For e.g.
Clarasys, Travelodge, etc. Large companies: These are the types of company that have their operations at a very
large scale (Santini, 2021). They do not have any limit to the business operations, size,
number of employees, scope, etc. this type of business functions and provide its products
and services at a huge platform as it mostly operates globally. This type of venture
requires huge amount of capital as they operate its activities globally and smoothly.
These types of venture easily sustain the market because of their experiences and the
adaptability of the new changes. For e.g. Marks & Spencer, TESCO, NHS, etc. Social Enterprises: This is the type of venture which is formed for the social
development and also for the welfare of the society. These are the organisations that
develop new and innovative ideas that is used for the development and growth of the
society. This type of venture have huge scope as they provide with better opportunities of
employment which helps in increasing the living standards of the people. These are the
type of business which so not aim at earning profits as the main aim is welfare of the
society. They run locally and immensely contribute in the economic development. For
e.g. TOMS shoes, Warby Parker, etc.
Typologies of entrepreneurship
There are various types of typologies that are involved in entrepreneurship ventures and
mainly deals with the development of the business and its effectiveness (Powers and Zhao,
2019). Few of the typologies are discussed below: Lifestyle Enterprise: These are the types of an enterprises which mainly focuses on the
improvements to be made in upgrading the living standards of the people to the place

where company is situated. This is the type which falls under the category of social
ventures. They provide with an opportunity to the locals of the place with jobs along with
the products and services.
 Growth Firms: This is the type of company which is mainly formed to earn huge profit
and large amount of revenue (Badri and Hachicha, 2019). These firms are always trying
to come up with new and innovative ideas so that their both productivity and profitability
increases in the competitive market. The ideas so generated by the company are in
accordance to te needs and preferences of the customers. This may come under the
category of either small or large organisations.
Both the entrepreneurial ventures and typologies are connected as both provide better life
style by improving the living standards of the people by putting all the efforts they can. Both of
them provides with their contribution which results in development and growth of the business
along with the country's economy.
P2. Similarities and differences between various entrepreneurial ventures
There are many similarities as well as differences between various entrepreneurial
ventures on varied basis. They are as follows:
Similarities
Basis Small business Large business Social Enterprise
Meeting the needs It is formed to satisfy
needs of the local
consumers.
It is formed to satisfy
consumer's need at a
large level.
It is formed for the
welfare of the people
and society at large by
providing them with
various support.
Society Upliftment Job opportunities or
employment is
provided to uplift the
local people (Valdés
and et. al., 2019).
Job opportunities are
provided along with
the implementation of
new and innovative
ideas that helps in
satisfying the needs of
the consumers. This
They provide people
with an opportunities
by which they can try
and improve their
lifestyle or living
standards.

overall uplift the
society and their
standards of living.
Differences
Basis Small business Large business Social Enterprise
Scale These are the small
scale business which
uses small amount of
money in a business.
These are the high
scale business which
needs huge amount of
capital investment to
run the business
effectively and
smoothly.
These are the types of
business that mainly
operates so that the
needs of the locals and
the society are being
satisfied.
Purpose The main purpose is to
provide comfort living
and earn livelihood.
These are the type of
business which is
mainly formed so that
huge amount of profit
can be earned by
innovating new ideas
and products in the
market (Guerrero and
et. al., 2020).
The main purpose of
this is to uplift the
local people of the
society by improving
their living standards
and providing them
with job opportunities.
Characteristics Limited resources are
needed for the running
of this business and
also the interference of
the government is very
less.
The main
characteristics of this
business is that they
require huge amount
of resources like:
capital, employees,
etc. Also the
interference of the
government is also
The main
characteristics of this
type of business is that
they receive all the
capital to operate from
the government as this
business is mainly for
the society and their

very high as this type
of business have very
huge and varied
operations.
upliftment.
TASK 2
P3. Interpretation of statistics for showing impact of micro and small business on the
economy.
Business organisations are considered as very important for the development of the
society and economy of the country. They have great impact on the country's economy. These
organisation have huge contribution in the increment of the economy by which the infrastructure,
institutes, etc. of the country are developed. There are three types of business organisations. They
are explained below: Small: These are the type of organisation that do not generate revenue more than £5
Million and also the employees who work are less than 50 in number (Marshall and
Gigliotti, 2020). The impact on the economic development through these organisation is
very low scale as very less employees are employed and less revenue is generated. Medium: More than 50 employees are employed in this type of organisation but are less
than 250 and the revenue generated is between £5 Million to £22 Million. These types of
organisation generate high revenue which impact the development of economic by
providing more jobs and satisfactions to the customers. Large: These are the organisations that works on a very high scale with more than 250
employees and revenue generated by them is also more than £22 Million. They provide
with most of the job opportunities globally.
Impact of SME on Economy
Local Impact: The local economy is directly impacted by the Micro and small business
as they are indulge in providing products and services to the local people. These type of business
are mainly formed after considering needs of the customers. By performing an analysis, a
company determines its purchasing power to provide products (Mendoza, Coule and Johnston,

2021). They also provide jobs and employment opportunities so that the living standards of them
can be improved which will further help in the local economic development.
Regional Impact: This is also impacted by the SME as they also helps in providing job
opportunities. There is a positive impact on the economy and also on its development. The high
rate of employment and talented workforce enables the business to expand. This helps in
improving the regional income that is later used for the development.
National Impact: The economy is also impacted by SME at national level as they
operate business with less amount of capital (Wale and Chipfupa, 2021). They mainly focus on
the innovation and creation of new ideas so that the profits and the productivity of the company
can be enhanced. This increase in profit is helping the government of UK in the economic
development of the country by uplifting the society.
Growth in UK business by number of employees (2000-2019)
Illustration 1: merchantsavvy (2021)
The above data describes the changes in the members of company by size of business
since year 2000. There are many non employers in UK so it is easy for them to start with a new
business. This graph shows that there is growth in the sector of medium size business, small size
and micro size business.

Businesses in UK by business size/ No. of employees 2019
From the above graph it is seen that the non employee companies have increased very
fast while in comparison of it with other sized company since 2019. Slow growth rate was seen
in the year 2017-18 but since 2019 an upward slope was noticed.
From the above two graph it is seen that there are many non employees who are free and
can start with their own business. The government of UK is encouraging them as they have huge
contribution in the economic development of the country. If al the non employed individuals
starts freelancing or any start up, this will lead to the increase in number of employees which will
eventually lead to the economic growth of UK.
P4. Importance of small businesses and business start-up in growth of social economy
Start-ups and the small businesses are considered as the backbone of the country as they
helps in providing with job or employment opportunities to the people of the country and also
huge amount of revenue. They are important as they provide with employment and better living
standards to people. The number of these organisations are increasing rapidly in UK which is
positively impacting social economy. The government of the country is supporting these firms as
it is providing maximum efforts to develop a country. There are many importance of these small
scale and start-up bushiness. Few of them are mentioned below:
 Job Creation: These business organisation plays a vital role to provide with the
employment opportunities to people which helps a country to grow economically. By
providing jobs the business helps in enhancing the skills and capabilities of the workers.
With this enhancement they get motivated to create new ideas or innovation and soon
Illustration 2: merchantsavvy (2021)

they start with their own business. It is very important as it helps in eliminating
unemployment and also increases economic growth.
 Improving Living standards: Both types of businesses helps in the improvement of the
living standards of the people by providing with the products and services that have good
and standard quality, also they are made in accordance to the need and preferences of the
consumers.
 Economic growth: Both the businesses helps in the development of the society by
providing with the job or employment opportunities to the unemployed which eventually
results in raising their living standards (Quagrainie and et. al., 2020). Such business
immensely contribute in the economy of the company by generating revenue which
increases the economic growth of the company.
TASK 3
P5. Characteristic, traits and skills of successful entrepreneurs
For a successful entrepreneur it is important that they posses skills traits and
characteristics that distinguish them from the other managers. All these are important so that they
innovate and create new ideas that will help a company in generating profits and increases its
productivity (McElwee and Atherton, 2021). The entrepreneurs chosen in this report are two
brothers named: Zuber Issa (48) and Mohsin Issa (49) who started with the business of a single
petrol forecourt and now owns more that 5200 stations of petrol in US. The characteristic, trails
and skills of them are discussed below:
Characteristics
 Passion: This is the characteristic which helps an entrepreneur to be focused on the work
and be involved in it without any distraction or problem. With this characteristic both
Zuber and Mohsin can be focused on their work and indulge themselves in such a away
that they achieve the set goals. This characteristics helps them to be different from that of
company's managers as they sometimes lose their control and make decisions not suitable
but the entrepreneur never loses his cool and make decisions effectively.

 Self Belief and hard work: It is another characteristics which will help Zuber and
Mohsin to effectively perform their work by believing in themselves and their ideas and
also by working hard in the direction to achieve their goals.
Skills
 Innovative Thinking: It is one of the important skill as with this the new ideas are
generated and the problems are solved (Umar, Sasongko and Aguzman, 2018). By
adapting this skill by Zuber and Mohsin, they will be able to solve the problems
successfully and also will be able to generate new ideas to increase the profits and growth
of company.
 Leadership: This is also one of the important skill as with this the entrepreneurs are able
to lead their employees. Both Zuber and Mohsin by attaining this skill will be able to lead
the company and its employees by providing them with the guidance and the ways in
which they can achieve the goals or targets of the company.
Traits
 Confident: This trait is necessary as by this the entrepreneur can make decisions that are
effective. Both the brothers, Mohsin and Zuber are very confident because of which they
attained so much success in their business by implementing new ideas and generating
profits. This made them successful and the value of their brtand is also very high.
 Disciplined: This is also one of the very important trait which is to be adopted by the
brothers Zuber and Mohsin as this is helpful in keeping focus on the work and maintain
the required balance in the personal and professional life. This balance helps them to stay
focused on their work without any distractions.
P6. Aspects of the entrepreneurial aspects personality reflects entrepreneurial motivations
The entrepreneurs have many trails, skills and characteristics that distinguish them from
any other person or the manager of the company. These factors motivates and set mind of the
entrepreneurs which further helps them to be successful and achieve goals. The Model which is
used to reflect the motivation and mindset of the entrepreneur is called as OCEAN model. The
said model have 5 aspects which are explained below:
 Openness: This aspect of the model is connected with the ideas, emotions and adventure.
This aspect is the reflection to the creativity and curiosity that helps entrepreneur in

taking best decisions. This is the way in which new things can be learnt and challenges
can be handled.
 Conscientiousness: This aspect is connected with reliability and flexibility (Aggarwal
and Shrivastava, 2021). This aspect helps entrepreneur to stay focused on their goals
targeted so that they do not involve themselves in activities that are not productive.
 Extroversion: This aspects states that the entrepreneur are expected to be energetic,
communicative, social and assertive in nature so that they can influence other people and
also its employees. This helps in maintaining good relations between the employees and
the company and also with other people.
 Agreeableness: This aspect is concerned with the cooperation and trust. This is to be
attained so that their exist healthy relationships and proper coordination is present
between the employees and the other people with the company. With this, entrepreneur
can also ask for suggestions from its employees which will help them to take best
decision.
 Neuroticism: This aspect is linked with the fear, worry, anxiety, frustration, etc. where
the entrepreneur acts negatively and take decisions not suitable for the company. This
aspect shall always be avoided by an entrepreneur as it badly impact the business,
relations with other people/ employees and also business activities.
TASK 4
P7. Background and experience can hinder or foster entrepreneurship
Experiences and the background of the entrepreneur plays an important role to carry out
the business and its activities effectively and leads them to earn profit and be successful. The
background and experience of the two brothers Zuber and Mohsin Issa which helped them to be
successful in business and in life is given below:
Background
Zuber and Mohsin were the two brothers. Their parents shifted to united Kingdom to
work for a a textile company in 1960's and then they started running a petrol pump. Both the
brothers received their education form school named: Witton Park High. Their childhood was
very simple and modest. They both grew in a terraced house located in Blackburn.