Entrepreneurship & Small Business Management Report - Semester 1

This report provides a comprehensive analysis of entrepreneurship and small business management. It begins by exploring various types of entrepreneurial ventures, including small businesses, scalable start-ups, large corporate ventures, and social enterprises, and examines their similarities and differences. The report then assesses the impact of small businesses on the economy, interpreting relevant data and statistics to illustrate their significance, particularly in the UK. It also delves into the importance of small businesses and start-ups in fostering the growth of the social economy. Furthermore, the report determines and assesses the key aspects of an entrepreneurial mindset, identifying the characteristic traits and skills of successful entrepreneurs. It also examines the different environments that can either foster or hinder entrepreneurship, analyzing the influence of personal background and experience on entrepreneurial success. The report concludes with a summary of the key findings and insights into the multifaceted nature of entrepreneurship.

ASSIGNMENT
Entrepreneurship & Small Business
Management
1

Table of Contents
Introduction.................................................................................................................................................4
Part 1...........................................................................................................................................................5
LO 1 Explore and illustrate the range of venture types that might be considered entrepreneurial...............5
P.1 Examine different types of entrepreneurial ventures and explain how they relate to the typology of
entrepreneurship.....................................................................................................................................5
P2: Explore the similarities and differences between entrepreneurial ventures...........................................6
M1: Investigate a diverse range of entrepreneurial ventures to demonstrate an understanding of
entrepreneurship in both the public and corporate sector............................................................................8
LO2: Assess the impact of small businesses on the economy......................................................................9
P.3 Interpret and assess relevant data and statistics to illustrate how micro and small businesses impact
on the economy.......................................................................................................................................9
P4: Explain the importance of small businesses and business start-ups to the growth of the social
economy....................................................................................................................................................11
M2: Evaluate the differences small, medium and large businesses make to the economy, applying
relevant data and statistics.........................................................................................................................12
Part 2.........................................................................................................................................................13
LO3: Determine and assess the key aspects of an entrepreneurial mind-set..............................................13
P5: Determine the characteristic traits and skills of successful entrepreneurs that differentiate them from
other business managers............................................................................................................................13
P6: Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and mindset.
.................................................................................................................................................................. 14
M3: Explore and examine different lines of argument relating to entrepreneurial characteristics.............14
LO4: Examine the different environments that foster or hinder entrepreneurship.....................................15
P7: Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship........................................................................................................................................15
M4: Analyse the link between entrepreneurial characteristics and the influence of personal background
and experience to specific successful entrepreneurs..................................................................................16
Conclusion................................................................................................................................................17
Reference..................................................................................................................................................18
2

Introduction
Entrepreneurship is the approach to launch a company by planning for the exact purpose of
various threats, such as the uncertainties found with both financial and administrative
endeavours. Owners and operate a business successfully can choose a different framework for
their entrepreneurial activities, such as sole proprietorship, partnership, corporation, or non-profit
to best suit their interests. The developers must have particular qualifications, and capabilities in
management and administration, as well as the ability to grow a business, and company in those
areas to have a good opportunity. The entrepreneurship that a company is capable of yielding
depends on various aspects, including the personality of the owner, history, knowledge and
abilities of the owner, and level of experience. This report would analyse various forms of
business projects on the economy, with particular attention provided to their impact on different
regions. in addition to this, there would be elaboration on the complexities of how one should
join the company and what it takes to launch it, as well as rewards and obstacles to experience.
3

Part 1
LO 1 Explore and illustrate the range of venture types that might be
considered entrepreneurial.
P.1 Examine different types of entrepreneurial ventures and explain how they
relate to the typology of entrepreneurship.
Below are the numerous forms of entrepreneurial ventures:
Entrepreneurship of small businesses: These types of start-ups may only be operated by the
founders, and the number of workers is very small. Furthermore, sales production is limited, and
these companies are constantly concentrating on attracting new customers and creating new
goods or services. This style of company can be managed with the help of family members and
colleagues. However, there are many small companies that provide creative goods or services
and are increasing rapidly (Drucker, 2014).
Scalable start-up entrepreneurship: These companies begin with creative concepts and
concentrate on delivering innovative goods or services from the outset. These founders claim
that their inventions have the potential to transform the planet, and they seek funding from
venture capitalists. These companies seek the best minds for the market and strive to provide a
flexible business model.
Big corporation entrepreneurship: Since large companies have a short life span, they rely on
delivering innovative goods or services to consumers in order to maintain the business's survival
and durability. Customers' demands and trends change with time, as does regulation and policy,
which force major organisations to engage in technological innovation and develop innovative
goods for completely different markets. However, the organization's size renders technological
creativity impossible.
Social entrepreneurship: This form of entrepreneurship focuses on addressing multiple social
issues through the distribution of goods or services. This kind of organisation focuses on making
the environment a safer place for citizens, which may be for-profit, non-profit, or a combination.
This organisation focusses on creating a better world for the people and can be for-profit, non-
profit or hybrid (Scarborough, 2016).
4

P2: Explore the similarities and differences between entrepreneurial
ventures
The following are some of the variations and parallels between numerous entrepreneurship
ventures:
Factors Small business
entrepreneurship
Scalable start-up
entrepreneurship
Large company
entrepreneurshi
p
Social
entrepreneurship
Goals
and
objectives
These
organisations do
not have well-
defined priorities
and objectives, and
they may strive for
lower profitability
and development.
This organisation
seeks to deliver
creative solutions
on a regular basis
while
simultaneously
maintaining
strong
profitability for
investors
(Kirzner,2015).
These companies
intend to stay in
the industry by
introducing
innovative goods
or services as well
as marketing
campaigns.
These
organisations
strive to offer
high-quality
goods and
services in order
to make the planet
a safer
environment.
Risks While the threats
are smaller, rivalry
with similarly
sized organisations
is fierce.
The threats are
significant because
of the huge amount
of capital funding
and the pressure to
return a large
amount to investors
by reaching a high
revenue volume.
The threats are
moderate since
big corporations
often sell in large
quantities due to
their brand
appeal.
The threats are
not especially
large since these
companies often
gain political and
public funding as
a consequence of
their vision.
Employee
number
There are no more
than 50
Depends on Employees can be It all depends on
the scale of the
5

employees. structure and size. more than 1000. business.
Structure Partnerships
frequently lack a
proper
organisational
framework and are
managed as sole
proprietorships.
Corporations or
limited
corporations are
the most popular
styles.
The corporate
framework is
often complicated,
and the
corporation may
be public limited
or private limited
(Dees, 2017).
Mainly trustee
based
organisations.
M1: Investigate a diverse range of entrepreneurial ventures to
demonstrate an understanding of entrepreneurship in both the
public and corporate sector.
Whether it is owned by the government, it is run by the public sector directly or by the
government or indirectly. For more well-known organisations, public support is given and
strategic assistance, while for them, while for others who are less established, it provides
6

strategic assistance. These organisations provide diverse categories of consumers with numerous
goods and/services but often strive to create a respectable or steady business-respected
reputation. In this respect, these organisations, sustainability is not a priority, but instead social
security and growth is stressed. Corporate sector: In this kind of entity, citizens/organization,
company companies and government agencies are private and operated by the people. They aim
to advance a company's strategic edge by developing consumer niches in order to offer premium
goods or services to consumers with additional profit and durability. Entrepreneurship in
business markets aim to identify strategic advantages by paying attention to future rivals,
creating a plan for success with its clients in mind, and delivering value for consumers (Baum et
al. 2014).
7

LO2: Assess the impact of small businesses on the economy.
P.3 Interpret and assess relevant data and statistics to illustrate how micro
and small businesses impact on the economy.
In any sector, micro and small businesses play a larger role and add significantly to a country's
economy. The number of micro and small companies that produce high sales by offering a
variety of goods and services to consumers is growing over time.
Comparison of SMEs and large businesses in the UK
(Source: Brenkert, 2017)
In the United Kingdom, the number of small businesses is large in various industries, and there
are more than 4.5 million SMEs founded throughout the world, accounting for nearly 99 percent
of all businesses in the country (Brenkert,2017). As a result, the income raised by such
companies contributes significantly to the UK's GDP. 96 percent of all enterprises are classified
as micro companies, employing just 0-9 employees. These firms recruit 33% of the population
and earn 22% of overall sales.
8

Share of businesses in the UK
(Source: Schaper et al. 2014)
According to the table, the number of small and micro enterprises in the UK is far higher than the
number of medium and big businesses. Tiny and micro enterprises produce 37% of overall sales
and hire 48% of the population in the UK (Schaper et al. 2014).
Business type of micro
and small businesses in
the UK
(Source: Burns, 2016)
9

Small and medium companies are classified as innovators, non-innovators, exporters, or non-
exporters. Those companies raise income with or without creativity, and all of them sell goods
and receive foreign currency, contributing to the UK economy (Burns,2016).
P4: Explain the importance of small businesses and business start-
ups to the growth of the social economy.
In order to sustain the development of the social economy, start-up entrepreneurs wield
considerable power in various countries. In comparison to other companies, start-up businesses
often come up with creative concepts for goods and services that can satisfy the needs of
customers. Aside from that, start-up companies may sometimes grab the market quickly and
produce higher sales in a limited span of time. During this process, those companies must pay a
large sum of business tax, which can aid in a country's development. Aside from that, in order to
operate a company, entrepreneurs recruit employees, which may help a country's unemployment
rate (Baum et al. 2014). Many start-ups are unable to pay large wages to their workers due to a
shortage of resources, so they recruit some of the least experienced employees for lower wages,
which helps to alleviate the unemployment crisis.
Many start-ups are active in multiple forms of CSR initiatives linked to societal, environmental,
and economic topics in order to raise brand awareness. In this procedure, such companies offer
schooling to citizens living in remote areas or with little financial resources. Those individuals
will use their schooling to obtain employment in the future, which would aid in economic
development. Aside from that, there are a large number of start-ups businesses founded in
various industries in the UK, which contribute significantly to the country's GDP.
10

M2: Evaluate the differences small, medium and large businesses
make to the economy, applying relevant data and statistics.
Many small and medium-sized enterprises are located in the UK than in the US, while in other
nations, the proportion of firms to those that are major businesses is comparatively smaller. For
the past 30 years, several firms, regardless of their scale, have been forced to the side-lines and
today small and medium-sized enterprises are doing a better part of the job in the economy.
However, they receive a significant income purely by delivering premium goods and services,
small and medium sized firms have difficulty achieving the same levels of revenue.
Most companies in the UK have establishments outside of other than in various countries to
finance their activities and often assist in collecting money from other currencies. Businesses
with more significant number of operations may be greater in number but are smaller in size
relative to some types of businesses. In countries with bigger economies, corporations have more
CSR for their citizens and use larger amounts for that purpose (Brenkert, 2017). It is up to small
and medium-sized companies to rely on their clients, which results in them attracting more
customers and their company sales. Those enterprises often sell large volumes of goods and have
a large numbers of job seekers in the UK, which benefits the job market by decreasing
unemployment.
11

Part 2
LO3: Determine and assess the key aspects of an entrepreneurial
mind-set.
P5: Determine the characteristic traits and skills of successful
entrepreneurs that differentiate them from other business
managers.
Different attributes, traits, and skills are needed for entrepreneurs to create a successful company
and develop it. Different processes must be considered by an entrepreneur in order to start up a
company, and these must be done single-handedly at first due to a shortage of resources.
 Capacity to come up with fresh concepts.
 Risk-taking skill
 Have a vision and ambitions in mind.
 Have a deep urge to accomplish your targets.
 Strong resource management abilities, namely financial and human capital (Schaper et al.
2014).
An entrepreneur's personal skills include the following:
 Communication skills are needed to communicate with a broad variety of individuals,
including vendors, dealers, customers, staff, and others.
 Leadership abilities are needed to demonstrate staff the way to achieve objectives.
 Negotiation abilities are needed to work with customers as well as to address any internal
issues.
 To achieve results, time management skills are needed to accomplish assignments on
time.
12

P6: Assess how aspects of the entrepreneurial personality reflect
entrepreneurial motivation and mindset.
An individual's entrepreneurial personality is important in starting a company and being able to
cope with the various challenges and threats that come with it. The entrepreneurial personality
consists of characteristics that allow an entity to create new ideas and bring them into motion in
order to generate revenue. Those ideas must satisfy such custom demands, and an entrepreneur
must actively evolve certain ideas in order for them to be sustainable. An entrepreneur must be
willing to take chances and use money wisely in order to run a successful company. They must
define the company's priorities, purpose, and vision, as well as create plans to accomplish those
goals (Brenkert, 2017). The entrepreneur must recognise sales and revenue-generating prospects.
As a result, they must be self-motivated to manage the company while handling the risks
associated with it and having the mentality to meet the objectives on a continuous basis.
M3: Explore and examine different lines of argument relating to
entrepreneurial characteristics.
An individual who acts like an entrepreneur is typically possesses a number of the same traits,
like those of a king. If a company is to be effective, there has to be a strategy for growth and
strategies in motion to fulfil the vision, it needs to define priorities and handle the risks. A
business might be dealing with several entities, or a handful of, single-focus individuals,
including clients, customers, staff, sellers, and suppliers. Furthermore, it is imperative that they
ought to identify and distribute personnel, delegate, as well as chart a course for the workers who
can accomplish corporate goals. A person requires strong management skills in addition to being
good at identifying and solving business problems, it is also necessary to run the company
efficiently (Dees, 2017). Ms. Rana is confident and enthusiastic about starting and running her
own company, and that is how she got her current job. Caroline is known for her capacity to
work hard, to prepare efficiently, and management skills which are needed to guide the company
to new problem areas.
13

LO4: Examine the different environments that foster or hinder
entrepreneurship.
P7: Examine, using relevant examples, how background and
experience can hinder or foster entrepreneurship.
In the instance of Elizabeth, it is simple to argue that without technical understanding, it is hard
to put together a correct business plan and get it out to the market. In the first example, we can
observe the practical application of this principle. Following an appointment, she understands
that the company's business has finally reached the point where it should be changed from a
consultant to a software company.
Additionally, there should be some innate trait inside the person that leads him or her to do
things that go above and beyond. In terms of Elizabeth's quality, she has a very excellent one. It
may be concluded that as a result of this trait, she has quit her work and started a company, with
the chance of financial loss being present. Since this is an example 2, we can see that Tom has
experienced a lot with regard to the corporate office. When he can't carry out his business at the
location or area where he's doing it, he started the operation at a train station, and even though
the work in the station has become difficult, she came out and began setting up his company
outside the station.
Despite Tom's little business experience, he was able to get a job at a supper shop during the
recession, all due to his shown business acumen. I believe, this chance has given him a good start
in the company.
14

M4: Analyse the link between entrepreneurial characteristics and
the influence of personal background and experience to specific
successful entrepreneurs.
Once a person has an established a personal and business history, he or she is better equipped to
run a profitable enterprise. Ms. Rana made a new agency, which she called Monster Party, out of
a chemistry equipment supplies firm. planning the company: Recruiting employees: Then, she is
in charge of different facets of all sales and marketing. In this case, she determines the direction
for the entire business, hires workers, and finances the expenditures. She is self-motivated and
has her office set up so that she will not get lonely, and as a result of/on the fact that of that, she
will be more active. She has a self-motivation and was participating in business programmes for
busy individuals where she could learn how to do it on her own to use their processes. She is
responsible for all financial preparation, both near and long term, and she is extremely thorough
in this position. he has an endeavour towards which he has been devoting his efforts: Zac is the
owner of Grand Touch, which is dedicated to entrepreneurship and vocational training for
students and serving the public to help them find a career Since he was self-motivated and
working on his own, he formed his own company in Accenture, a multinational consultancy
agency, without job protection. Running his company has his students and his customers excited
and happy, and it inspires him to do the things he would like to see accomplished in his future.
An action-oriented part of business entrepreneur is someone who will take decisions, prepares
for the future, and deals with clients in order to create that.
15

Conclusion
To sum up everything that has been stated so far a start-up company may be a small, medium, or
a big organisation, or it can be any scale whatsoever. The small businesses have a
disproportionate effect on the economic development of every nation and take up a significant
percentage of the total market share. the company owners must be mentally prepared to deal with
varying levels of danger if they are to establish and manage a business.
16