Entrepreneurship and Small Business Management Report - Assessment

This report delves into the realm of entrepreneurship and small business management, examining various forms of entrepreneurial ventures, including survival, lifestyle, managed growth, and aggressive growth ventures, and their relationship with different typologies. It explores the similarities and differences between these ventures and assesses their impact on the economy, focusing on micro and small businesses. The report also investigates the traits, characteristics, and skills of successful entrepreneurs like Richard Branson, analyzing their entrepreneurial motivation and mindset. Furthermore, it examines how background and experience can influence entrepreneurial endeavors, providing a comprehensive overview of the subject. The analysis includes the role of small and medium enterprises on the economy, and factors like investment limits. This report serves as a valuable resource for students studying entrepreneurship, providing insights into the dynamics of business ventures and their impact on the economic landscape.

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Various form of entrepreneur venture and relation with typology of entrepreneurship.. .1
P2 Similarities and differences between entrepreneur ventures.............................................3
M1 Response to entrepreneurship in public and corporate sector.........................................4
D1 Growth and development of entrepreneurial ventures.....................................................4
TASK 2............................................................................................................................................4
P 3 Impact of micro and small business on economy............................................................4
P4 Contribution of small businesses and business start ups to the growth of social economy6
M2 Difference between small, medium and large enterprises:..............................................7
D2 Business impact on economy...........................................................................................7
TASK 3............................................................................................................................................8
P5 Traits, characteristics and skills of Richard Branson which differentiate them from other
business manger......................................................................................................................8
P6 Reflection of entrepreneurial motivation and mindset of Richard Branson:....................9
M3 Argument relating to entrepreneurs characteristics.......................................................10
D3 Analysis of traits,skills and motivational derives..........................................................10
TASK 4..........................................................................................................................................10
P7 Background and experience foster or hinder entrepreneurship.......................................10
M4 Relation between entrepreneurial characteristics and personal background.................11
D4: critical evaluation of backgrounds of entrepreneurs.....................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneurship act as internal organ for every business activities. Every company has a
starting phase which starts from small business and than reaches at growth stage when business
activities are established. The economy is becoming volatile and thus people have different
knowledge and skills to start up their own business. Efficient skills are needed in every business
activities so that desired goals and objectives can be achieved by organisations. They had desired
capacity to turn business into growth and prosperity (Ding and et. al., 2011). Entrepreneurship
and small business takes risk to start up new business by investing money in organising different
business activities. Small business activities are organised at smaller scales and they does not
have their business operations at larger scale, less employees are working in an organisation and
thus selling activities are at smaller levels. The activities of small business requires knowledge,
traits and skills of persons to run business activities as to achieve growth. The report contains the
study about different types of entrepreneurial ventures and their relationship with topologies,
similarities and difference between these ventures, impact of small business activities on
economy, importance of business for growth of economy. Aspects which are related with
mindset of enterprise. How different personality of enterprise are reflecting mindset and
motivation and lastly enterprise can hinder or foster relationships.
TASK 1
P1 Various form of entrepreneur venture and relation with typology of entrepreneurship
Entrepreneurs are persons who have skill and traits to turn their business ideas into
realities. They invest huge finance to establish business activities and face risk which act as
obstacles. Entrepreneurial venture drives many ideas for business operations like finance,
designed marketing strategies for selling products and services, team management to carry out
desired goals and objectives. All these ventures helps in attaining growth for organisations.
Various types of entrepreneur ventures are described below (Fung, 2013).
Survival Ventures: These ventures are helpful in providing assistance and support to
families of persons who are starting their business activities. They are running their business
with few assets and thus their business are also not registered as their operations are at smaller
levels. These business are following barter system in which activities are carried out with
exchanges for goods and services. Activities related with these business are carried out in those
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markets where there is competition. This is helpful in achieving competitive advantage for
companies.
Lifestyle Ventures: They are proving financial gain to business owners. Competitive
business environment can be achieved by making reinvestment in business operations. These
ventures are having employees but they are appointed for those times when there is requirement
in business to mange the work thus they are not recruited permanently. They are not able to
achieve economies of scale as their business activities are not able to achieve huge growth and
prosperity.
Managed growth ventures: These ventures are focusing on future growth of business
activities. It deals with launching of new products, expanding the product line by entrance into
new markets etc. Expanding of business operations globally and regionally so that firm can
achieve success and growth of its activities. Growth and prosperity are essential for business as
they help business to expand its process rapidly in short span of time.
Aggressive growth ventures: These ventures are based on innovation and advancement
in technologies. Advancement in technologies are thus helpful in growth of business for assigned
target markets (Gilmour, K., 2014). They arrange funds for business operations from equity
shares. They are focusing on capturing national and internation markets for selling their products
and services.
Relationship of ventures with Topologies:
Serial entrepreneur: These are persons who implement their own ideas for business
start-ups and thereafter they assign roles and responsibilities to other employees for successful
running their business operations. They are able to generate new ideas for their business,
innovative skills are needed to implement the ideas. These innovative ideas can be harmful if
they are not able to succeed business activities. Oprah Winfrey is one of the known serial
entrepreneur who started business start up by implementing his own ideas.
Social Entrepreneur: These persons have various innovative ideas by which the problem
can be easily solved. They implement changes by making alteration in system and structures of
society. They are concerned about growth and development of society rather than making profits.
They consider the problems of society while caring out business operations (Gilmour, K., 2014).
These entrepreneurs are friendly with people of society and they generate ethical ideas for
business operations.
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Female Entrepreneurs: These persons are required to carry out effective business
operations. They are related with aggressive ventures as business involves innovative ideas to
achieve growth. These ventures focuses on providing equal opportunities to women in relation to
justice and occupation of business enterprises.
P2 Similarities and differences between entrepreneur ventures
There are various differences and similarities between different types of entrepreneurial
ventures which are as follows:
Similarities between entrepreneurial ventures:
Risk taking and challenging: These ventures have risk taking ability so as to achieve
defined objectives for organisations. These entrepreneur takes risk which are assigned with
operation of business. He can be operating a large or small business firm and have huge
opportunities for earning profits by successful caring out different operations which are related
with business activities (Holmerová and et.al., 2010).
Innovative and creative: They are creative and innovative persons as they turn their ideas
into reality. These task are helpful in prosperity of business and expanding operations which are
related with business. Innovative ideas are helpful in implementing changes in products which
satisfies various needs of customers. They also helps in gaining attention of customers towards
the products and services which are provided by organisations.
Time Management: These entrepreneurship ventures are able to manage their time in
which the activities had to be completed within the desired levels so as to achieve desirable
objectives.
Difference between entrepreneurial ventures:
Life style Entrepreneurial ventures Serial Entrepreneurial ventures
They focuses on achieving business ideas and
objectives of firms and they step forward with
the same ideas.
Competitive business environment by making
reinvestment in business plans.
They have their own ideas and they turn them
to start business operations. After the business
have been established they move with different
set of ideas and ventures.
New ideas can be implemented with
investment in business as to move forward in
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They are not able to achieve economies of
scales as their business operations are not at
high levels (Lichtenberg, 2010).
establishment of new ventures.
They are achieving economies of scale as they
are earning huge profits.
M1 Response to entrepreneurship in public and corporate sector
Small business activities have slow growth as compared to large business operation's.
They are making their business activities successful by focusing on management of team works
within the organisations. Communications plans are effectively followed in business operation's
which are at smaller levels. Resources of economies are effectively utilised for caring out
different business activities. Public firms are using innovative skills for completing assigned
business activities, they are focusing on growth of organisation rather than making desired
profits.
They are following effective plans for implementation and execution of business
activities. Private sectors are concerned about making profits by effective execution of different
activities. They are providing support to small scale industries by providing them funds for
different business operations, it helps in creating employment opportunists for persons who are
not engaged in any business. It can be concluded that public and cooperate sector have their own
objectives for running different business operation's (Kittay, 2011).
D1 Growth and development of entrepreneurial ventures
Entrepreneurial ventures are important for development of national economy and thus
they should be motivated and cultivated to a great extent which helps them in growth and
development. Small scale industries are focusing on growth which they are not able to achieve
from their past business operations. Growth is the factor which are helpful in achieving heights
of success for organisation and thus they are able to expand their business operations to a greater
extent. Motivating employees are able to generate more profits by caring out activities in an
effective way thus motivating employees is also an essential factor.
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TASK 2
P 3 Impact of micro and small business on economy
Micro and small business are back bones of economy. They are contributing in growth of
economies. Small enterprises are operating are larger stages in economies. They are rapidly
expanding their business operations which are essential for achieve success of business. They are
providing valuable support to economy by expanding business. They are helpful in providing
various employment opportunities for people of economy thus attaining economies of scales.
They are helpful in providing strengths to economy. With the development of these
business operations people have greater chances to get employed. This in turn is helpful in
increasing employment ratio in economy which is an indicator of prosperity of economic
conditions. When a person turns his idea into business activities than there various new
opportunities which are available for employees which are beneficial for individuals and society.
Poverty ratio in economy also increases which indicates that people will have basic amenities
that are required for survival like food clothing and shelter (Ligthelm, 2010).
Small and micro enterprises are helpful in creating better job opportunists for people and
thus people from different countries are also attracted towards the economy and they want to
work for business which helps in increasing prosperity. Small business requires smaller areas to
run their business operations and thus low overhead cost are needed in performing different
operations. It is also beneficial in providing low prices products to customers so inflation rates
are low at market places.
Limits of investments that are decided for different sectors includes:
Manufacturing Sector:
 Micro enterprises
 Small enterprises
 Medium enterprises
Investment which are made in purchasing of
plants and machinery for business activities
should be in between 25 Lakh.
Investment should be between 25 Lakh to 5
Crores.
Investment should be between 5 crore to 10
crore.
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Service sector
 Micro Enterprises
 Small Enterprises
 Medium Enterprises
Investment which are made in equipments
tools and machinery should not exceed up to
10 Lakh.
Investment should be between 10 Lakh up to 2
crore.
Investment should be made between 2 crore
up-to 5 lakh.
The above table implies that small and medium enterprises are crucial for achieving
growth and development in economy. They generate major sources of employment and
contributes in generating larger revenues for government. Innovative ideas about business helps
in growth and development of economy. People who are have high educational level and
effective skills will not move to other countries in search of employment. This will help in
retaining good employees who plays an vital role in increasing effectiveness of economy.
P4 Contribution of small businesses and business start ups to the growth of social economy
Small business and business start up have contributed effectively in growth of social
economy which includes:
Employment: Small business have created employment opportunities for people who
were jobless and were not able to full their basic needs. These activities of small business are
helpful in eliminating financial crises from economy, reduction in poverty rates, stability in plans
and policies. Thus they have effectively contributed in growth and development of economy.
Eliminating Poverty: Development of business have reduced poverty to a greater extent.
There was a period of crises when people had lost their jobs and they were unemployed. At this
time new business helped people of economy to render different job opportunities so that they
can fulfil their basic needs and necessity of their families. This way they have contributed in
growth of economy (Ding and et. al., 2011).
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Infrastructure sector: These business have provided various resources which are helpful
in development of infrastructure sectors. Effective work opportunities are available that are
helpful in growth and success of economy.
Economic and social development: Theses business have contributed effectively in
social and economic development of economy. It helps in creating work opportunities for nation
which are results ion development of nations. Innovations helps ion creating work opportunities
which are helpful in overall development of nations.
Revenues: These business activities are helpful in generating huge revenues for
government. If sufficient revenues are generated it will results in reduction of tax and other
exercise duties which are imposed by government. Different business operations are traded
globally around globe which are helpful in increasing foreign revenues for business.
Difference between start-up and small business:
Small business Start up business
They are business which are owned by private
owners which includes sole proprietorship.
They have less no of employees and lower
sales volumes.
These are business which have developed by
innovative mind set. They are focusing on
providing differentiated products and services
to customers that is not available at the market
place.
M2 Difference between small, medium and large enterprises:
Small, medium and large enterprises are playing great roles in growth and development
of economy.
Small business are owned by individuals and thus they are the owners of theses business. They
have less capital to invest in different business activities. Fewer employees are employed for
business operations.
Medium business are owned by private firms and some of business are connected with public
sector. They have limited finance for business. Market is diversified with large range products
availability (Rinpoche, 2012).
Larger business have their operations globally around the world. They are earning huge profits
and they are responsible for increasing growth and development in economy by achieving
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economies of scales.
D2 Business impact on economy
Small business operations are helpful by effectively use of economic resources which are
helpful in overall growth and development of economies. Business activities are developed at
local, regional and national levels. They includes precious element which are helpful in growth
of economy and country. The business operations are spread at these levels as they are having
the capacity to generate profits. These business operations are supported by government and thus
they are expanding their business at regional, global and national levels.
TASK 3
P5 Traits, characteristics and skills of Richard Branson which differentiate them from other
business manger
Richard Branson are great business man who have different traits and skills which
differentiate them from other entrepreneurs. They have more visionary powers which are
effective from others (Rikli and Jones, 2013).
Skills traits and characteristics of Richard Branson are:
Great Readers: Richard had very effective reading skills which are needed for
developing effective ideas for business, it also helps in exploring knowledge which will be
helpful in establishing business. They believe in reading difficult books which will enhance their
knowledge as it will contain new words which are unfamiliar in past.
Time management: They have effective time management system in which they are
dividing times according to which different activities had to be completed. These are essential
quality of Richard as it helps in proper flow of works in an effective manner which are helpful in
achieve the goals and objectives which are designed for business processes.
Determination: Richard have high determination in achieving goals and objectives. They
believe that quality services should be provided to customers. It helps in creating good image of
business which in turn helps in increasing growth and prosperity of organisations.
Risk Taking: These entrepreneurship having ability to take risk which are faced in
business process. Every business faces risk in terms of finance availability or growth of business
to a greater extent. Risk management helps the person to grow and achieve long term objectives
which are designed for business operations (Shogren and et.al., 2015). Some business owners are
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afraid to take risk which are faced by business but Richard takes the risk as it learns them to face
difficult times.
Result oriented: Richard focuses on achieving desired results for organisations rather
than achieving profits for business. The plans and policies are designed which are helpful in
achieving desired results. Result oriented implies that they take into consideration all the risk
which act as obstacles in their ways so that desired objectives can be effectively achieved.
Confidence: These are the key concepts which helps entrepreneurs to grow effectively
and achieve success. Confidence makes a responsible towards the assigned roles and
responsibilities which he had to follow to achieve effective objectives. These are factors that
motivates a person to work in organisation irrelevant of risk and situations which are faced by
economy. Motivation also helps in better execution of plans and policies so as to achieve the
desired results.
P6 Reflection of entrepreneurial motivation and mindset of Richard Branson:
Motivation factors of entrepreneurs plays an important role in growth and success of
business activities. Entrepreneurs cannot operates their business without motivating their
employees to work in an effective manner so as to achieve desired objectives. This factors helps
employees to work with dedication towards achieving gaols as they are satisfied with the work
environment in which different activities are operating. Entrepreneur like Richard Branson have
implementing unique and effective ideas for their business operations. They are helpful in
attracting large number of employees towards the products and services offered by firms. They
have created objectives which are focusing on satisfying the customers by making changes in
products with the help of innovative ideas and generates profits for business. The products are
made innovative keeping in mind taste and preferences of customers so that products are made
available according to customer choices (Schoene and et.al., 2013.).
There are different motivational techniques which are followed in organisations and they
are different from other organisations. Risk taking is also a motivational techniques as it helps
people to face challenges which are blocking their way in achieving desired goals. Different
leadership styles helps in achieving competitive advantages for business and this results in
increasing profits.
Mark Zuckerberg was an entrepreneur who implemented innovative ideas in developing a
website which was named as Facebook. He was very bright man and thus with his ideas of
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creating a website he made interaction of people possible to a great extent from and around the
world globally. The idea of creating a social website strikes his mind when he realise that people
are leading a busy life and thus they are not able to keep contact with their fellow persona and
relatives. These business helps in achieving growth and mark Zuckerberg is a famous personality
who is known as the founder of Facebook.
Self motivation is also an another factor which is responsible for growth and success of
business operations. If the person has the desire to run his own business he can achieve it with
full determination and surely he will achieve heights of success.
M3 Argument relating to entrepreneurs characteristics
There are various characteristics which re related with characteristics of enterprise which
includes innovation, risk challenger and competitive advantages. These had to assigned in
individual so that person can become owners of their own business and they does not have to
work under others. They have the ability to adopt to changes as desired by people of
organisations. Confidence in persons also makes them success in their business operations.
Entrepreneurs are not born they are made because they have desired skills and
capabilities to turn their business ideas into realities. Every individual have different skills and
knowledge and the persons who uses the knowledge effectively is called as innovative persons or
business man (Yazbek and Lu, 2013). Thus entrepreneurs are not born they are made with time
and skill set.
D3 Analysis of traits,skills and motivational derives
Professor Muhammad Yunus was the head of economics depart and he reached this
positions as he was having desired skills and characteristics which makes him a successful
person. He was motivated by his father to attain higher level of educations which helps him to
achieve desirable results as was expected by this father. Skills are based on determination and
mind set which are helpful in achieving the desired goals. These factors help Muhammad to
become successful person and thus he is leading a simple and easy life as he had work hard to
walk on the path that was shown by his father. All these factors helps a persons to become
successful entrepreneurs.
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