Detailed Report on Entrepreneurial Ventures and Small Business Impact

This report provides an analysis of entrepreneurial ventures, their types, and their impact on the economy. It begins by defining entrepreneurial activity and categorizing ventures into small and medium enterprises, large enterprises, and social enterprises, further elaborating on their respective characteristics and operational scales. The report also discusses entrepreneurial typologies, including lifestyle enterprises and growth firms, highlighting their interconnectedness with entrepreneurial ventures in enhancing living standards and contributing to economic development. It contrasts and compares these ventures, emphasizing their shared goal of societal upliftment and meeting customer needs while differentiating them based on business aims, scale of operation, and nature. Additionally, the report interprets statistics to illustrate the significant impact of micro and small businesses on the economy, particularly at the local level, underscoring their role in employment, resource utilization, and infrastructure development. The characteristics, traits, and skills of successful entrepreneurs are examined, alongside an analysis of how their backgrounds and experiences can either foster or hinder entrepreneurship, providing a comprehensive overview of the entrepreneurial landscape and its influence on economic growth. Desklib offers a variety of resources including past papers and solved assignments for students.

ENTREPRENEURSHIP
AND SMALL
BUSINESS
MANAGEMENT
1

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
P1 Different types of entrepreneurial ventures and their relation with typology of
entrepreneurship.....................................................................................................................3
P2 Similarities and differences between entrepreneurial ventures.........................................6
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 starts-ups in growth of social economy... .9
TASK 3..........................................................................................................................................10
P5 Characteristic, traits and skills of successful entrepreneurs............................................10
P6 Aspects of the entrepreneurial personality reflect entrepreneurial motivation...............12
TASK 4..........................................................................................................................................13
P.7. Background & experience can hinder or foster entrepreneurship.................................13
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................15
2

INTRODUCTION
The aim of this present report is to provide advice and market intelligence to a small
business and new entrepreneurs being an intern at consultancy firm. There is an arrangement of
a small business and entrepreneur show with the aim to attract and guide new businesses by
extending support for starting and running the business successfully. This will going to serve as a
one window solution to small businesses for all their problems. Entrepreneurs are those
individuals who brings something new or things different from existing. These kinds of persons
invents or implements new plans into real world to fulfil rising needs and demands of country
people with the motive of earning profits. Small enterprises gives rise to employment
opportunity in economy that enhances livelihood of certain people ultimately whose purchasing
power increases. Along with this small enterprises impact on economy by ta way of rising
circular money flow through generation of sales and higher revenues. Every entrepreneur
initially starts its business as small level or of medium size then grows at large size which later
brings several benefits to nation through payment of taxes with large amount and several others
advantages (Acs and et.al., 2017). The present report discusses about different forms of ventures
along with their typologies of entrepreneurial ventures backed by their similarities and
dissimilarities present in it. The report will include explanation about some statistics which will
show the impact on economy by small and medium enterprises. This also includes the relevance
of small enterprises and start-ups which leads economy to achieve growth. Further, the features,
personality traits and competencies of successful entrepreneurs will be discussed. In last, few
cases of successful and leading entrepreneurs will be analysed along with motivation which
reflects personality of entrepreneurs and their mindset.
TASK
P1 Different types of entrepreneurial ventures and their relation with typology of
entrepreneurship.
Entrepreneurs are those who thinks differently with some kind of innovation and gives a
real picture to their new ideas and plans. They are responsible for establishment of business
which will sale its products and services to potential customers along with generation of profits
from that sale. The businesses which are set by entrepreneurs are termed as entrepreneurial
3

ventures (Apostolopoulos and et.al., 2018). Entrepreneurs set-ups this business with a motive to
generate revenue and earn high profits in industry and enjoy their livelihood. There are several
types of ventures which are given existence by the entrepreneurs. These ventures are defined by
different categories such as size, purpose, scope or services.
Entrepreneurial Activity:
Entrepreneurial activity can be defined as a business process out of which companies
gives rise to their values and morals by making it as economic activity. Such activities are
backed by unique and different thoughts which will provide growth and success to company and
provides their products and services into the market (Azoulay and et.al., 2020). The development
of plans and ideas into reality gives rise to employment and effective use of available resources
in the economy.
Types of Ventures:
1. Small and medium Enterprise: This type of ventures includes small business
operations along with less number of employees and capital involved. Such
ventures are established with the motive of generating profits from sale of its
products and services into market. These firms operates with less span of size and
bears less scope as they operates at small level. Generally such ventures are
established either by sole proprietorship or by in partnerships. The entrepreneurs
working at small level comprises of equivalent or less then fifty employees having
net worth of 2 million pounds (€2 m.) Enterprise like Clarasys, Orion electrotech
Ltd. are examples of small and medium size businesses. Which deals in private
sector companies. In public sectors enterprise such as Travelodge operates at
small level in United Kingdom (Baker and Powell, 2019).
2. Large Enterprise: These are those enterprises which operates at large level in
terms of size, business operations, revenue generation,employees, capital, etc.
these kinds of firms offers numerous producers and services with different
variants into market for its customers. Large enterprises sometimes does not only
operates in domestic country but also expands their operations into international
market. Such enterprises requires large amount of capital to run business activity
sand for this raises funds from market such as by offering shares, by taking loans
4

from financial institutions, etc. for a long period of time. These enterprises
survives in industry and in market by adopting various changes and facing
dynamic environmental chances with an experience of many years. Firms such as
Marks and Spenser, TESCO, etc. are large entrepreneurs in private sector and
National Health Services operates in public sector at large level (Doh, Tashman
and Benischke, 2019).
3. Social Enterprises: Entrepreneurial ventures which comes under the category
of social enterprise are those who works for the welfare of society and are more
concern about environment. These kind of enterprises focus on development and
providing healthy livelihood to the members in society. Social enterprises
provides huge scope for society and does not operates with a motive of generating
higher profits or normal profits out of their sale of products or services. They
provides ozone-friendly and natural products in their offerings which takes care of
environment. Enterprises plans to raise society's livelihood and living standards
by use of environmental supported activities which contribute in maintaining pure
and fresh environment. Social enterprises operates at both local level as well as at
international level which tries to develop near by areas or operating areas.
Enterprises such as Skoll Centre for Social Innovation is a social venture in UK
and ChangemakerXchange is another social enterprise which operates at
international level (Fritsch and Wyrwich, 2017).
Entrepreneurial Typologies:
The term typology refers to a classification of some concept based upon various types.
Entrepreneurial ventures posses various typologies which helps company to present its enterprise
in effective manner. Some of the typologies of entrepreneurship are as under:
 Lifestyle Enterprise: Such type of enterprises are established with the aim of
raising society's standard of living in areas where business operates its functions.
Entrepreneurs of such type of enterprise mainly focuses on local people and
provides employment opportunities to them. Such companies offers product and
services only to local people where firm is operating. Lifestyle enterprises comes
under the category of social ventures.
5

 Growth Firms: As the name suggests growth firms, these kinds of companies
operates with a motive of maximising their profits and earn high revenue. Such
enterprises tries to bring innovation and new plans into its operations which leads
company to experience growth. Firms of this category focuses on increasing its
productivity along with profitability in industry. Growth firms always tries to
offer their products and services by keeping customers needs and requirements.
These firms provides quality efficient product to their potential buyers as
customer satisfaction will help company to grow more in the market. Growth
firms can be both either small enterprise or large one. Such firms also enters into
international market in order to bring growth for the firm (Hisrich and et.al.,
2017).
The concept of typologies is interconnected with entrepreneurial ventures. Both these
terms focuses on enhancing standard of living of people as well as their lifestyle. Typology and
entrepreneurial venture contributes in the growth and development of country's economy where
business is operating.
P2 Similarities and differences between entrepreneurial ventures.
The similarities in entrepreneurial ventures are discussed below:
 Upliftment of Society: Small business firm provides employment opportunities to
regional people with the motive of enhancing their lifestyle. On the other hand, Large
business firms provides job opportunities to deserved candidate in the society. Such firms
brings innovation in their product and services by keeping customer needs and services
by keeping customer needs and requirements in mind. They contributes in development
of society having comfortable life. Whereas, Social enterprises purely focuses on
society's development and always brings their product and services in a way which helps
society in upliftment of their standards.
 Meeting Customers Needs: Such enterprises fulfils or meets the needs of regional people
where business functions its operations. Whereas, Large firms fulfils customers needs at
all levels of people regionally, nationally as well as internationally. On other hand Social
enterprises fulfils demand and needs of regional people in the society.
Some differences between entrepreneurial ventures are below:
6

 Business aim: The main aim of small enterprise is to generate this much revenue which
satisfies their livelihood that is required for living comfortable life. Large enterprises are
established with the motive to earn high revenue and profits. They are more concern for
companies growth and expansion. On the other hand, main purpose for establishment of
social enterprise is to serve society for their development and environmental concern.
 Scale of operation: Firms which operates with a limited capital and employees is
categorised as small enterprise. Businesses which operates at a large level of management
with huge capital and workforce are termed as large enterprise. And, Social enterprises
are those which operates at local level with a motive to solve their social issue.
 Nature: Small firms requires less resources and employees. These enterprises does not
have stress regrading governmental interference as it is very low due to small operations.
Large enterprises is backed by large amount of capital,revenue as well as workforce in
business operations. Governmental interference in such firms is high because of their
level of operation. And, These kind of enterprises depends upon governmental funding or
donations from society. They do not operates to earn high revenue.
TASK 2
P3 Interpretation of statistics for showing impact of micro and small business on the economy.
Every business firm plays a key role in economic development of a nation. Enterprises
supports economy by providing various facilities such as employment, use of country's
resources, money flow, etc. Nation from this contribution develops infrastructure, and provide
various social services to country people (Kimmitt and et.al., 2020). Businesses creates a great
impact on development of economy. The types of enterprises are under:
 Small Enterprise: Such enterprises employees up-to maximum of fifty employees in a
firm fro completion of company's goals and objectives. The revenue of small enterprises
does not passes more than £5 million yearly. As per their operation level they contributes
less in the development of nation. Companies although generates high revenue from the
sale but still contributes less in economy.
 Medium Enterprise: These firms operates at large level then small enterprises but less
then large. The numbers of employees in medium enterprises ranges between fifty (50) to
7

two hundred and fifty (250) and their revenue between £5 million to £22 million per year.
Medium term enterprises also provides employment opportunities more than small ones
and gives their contribution in development of economy and also satisfies customers
demands.
 Large Enterprises: These firms functions at large level in market and earns high
revenue and profit. The employees of such enterprise usually ranges more than two
hundred fifty (250) and their revenue ranges more than £22 million per year. Large
enterprises plays a very important role in economy's development and contributes at huge
level by having its operations at national as well as at international level (Kwilinski and
et.al., 2019).
Impact of Small and Medium enterprises on economy:
 Impact at local level: Small and medium term enterprises has a direct impact on
local level as their main focus and market is of local people. Companies provides
their products and services to the operating areas only. Businesses analyses
customers needs and requirements and provides their offerings according to that.
They provide employment opportunities at local level so that those people can
improve their standard of living and earns handsome amount to fulfil their needs.
8
Role of Small Enterprises and Start-ups

 Impact at Regional Level: Small and medium term enterprises creates an impact
on regional economy by providing employment to regional people by resolving
unemployment issue in the society. Such enterprises contributes in development
of economy positively by provides jobs at large level and hiring competent
workforce. This contributes in increment of regional income and raising of
lifestyle.
 Impact at National Level: Small and medium enterprises impacts economy at
national level by operating at large level throughout the nation. Companies here
brings some innovative plans and ideas into their business which increases firms
productivity and profitability. Such companies helps government in raising their
treasury. As per the data small and medium enterprises employed more than 15.7
million candidates in country like UK which creates a positive impact on
development of nation.
P4 Importance of small businesses and business starts-ups in growth of social economy.
The Gross Domestic Product(GDP) of any nation grows with support of small and
medium enterprises and also with the help of new start-ups in the market. Small and medium
businesses give rise to huge employment of candidate and earns large revenue which contributes
in rising GDP of a country. There is a presence of large number of small and medium term
enterprises in the markets of UK which plays a very important role in its development (Lindner,
2018). Getting great contribution from these enterprises motivates government to provide
support to such firms to meet their financial crunch and by providing various incentives and
relaxations in legal process of registration, etc. The views which defines relevance of small and
medium enterprises are discussed below:
 Creation of Job: Small businesses and start-ups generates large level of job options
based on the profile requirements of employees which helps local people indirectly in
raising their living standard. More than 65 percent UK economy has generated new
employment in past decade (Wright, Upward and Hijzen, 2020)
 Economic Growth: Small and medium enterprise generates good amount of revenue
from the sale of their products and services in market which helps country in its growth.
The offerings of products at reasonable prices allows customers to buy more which gives
9

riser to more money flow in market which develops country's economy. This practice by
few firms motivates other start-ups to set up their own enterprise which will prove
profitable for the nation and supports growth. UK economy receives growth for more
than 47% through the contribution of small enterprises during 2016-2020 (Stephen
Roper, 2016).
TASK 3
P5 Characteristic, traits and skills of successful entrepreneurs.
There are several entrepreneurs in United Kingdom who posses some different skills and
traits. These skills and unique characteristics makes ordinary people a successful and great
entrepreneur. There are two such entrepreneurs who has written a story of success and had attain
endless growth in their entrepreneurial career and journey by possessing certain traits and skills
in themselves (Parker, 2018). These attributes and characteristics differs them with ordinary
managers of business. From their success stories it will be not wrong to say that any ordinary
person who has some unique skills can become a successful and renowned entrepreneur in
market. The unique characteristics, traits and skills of an entrepreneur is discussed below:
Skills:
 Leadership: A most important skill which should be present in every entrepreneur is
leadership. A leader is one who influences his team members to work with more
productivity in organisation. \
For example- The skill of leadership is very well present in Elizabeth Gooch and Tom
Mercer which paid influence on their team and on enterprise workforce very effectively. This
skill in both helped them to achieve their targets in time with great efficiency. Proper guidance
and support to employees helps organisation to attain success.
 Innovative Thinking: For a successful entrepreneur it is very important to think
innovatively for bringing new plans and ideas for solving organizationals issues.
For example- With the help of this skill Elizabeth Gooch and Tom Mercer's path of
success became easy and helped them a lot in achieving their set goals. The innovative thinking
helps managers to solve internal issues which occurs during the course of business.
Characteristics:
10

 Hard Work and self belief: The most important characteristic which an individual
posses in himself is a sense of hard work and self belief which leads a path to success.
The mentioned characteristic is present in both entrepreneurs that is in Elizabeth Gooch
as well as in Tom Mercer. They achieved success by having confidence in themselves
and their hard work.
For example- Due to self belief they both were able to take best decision for business
which allows them to experience success and growth. These qualities in them differentiated them
with ordinary managers in market.
 Passion: This important characteristic in entrepreneurship allows an entrepreneur to work
flawlessly and without any hindrance. By possessing this characteristics Elizabeth Gooch
and Tom Mercer became successful entrepreneur in their area. They both concentrated on
their tasks continuously without any gap and achieved their defined goals on time with a
token of success. This characteristics requires a lot of patience in entrepreneurs which is
not found easily in every. They both possessed high level of patience which separated
them from normal entrepreneurs.
For example- A passionate entrepreneur will always tries to bring something new in his
tasks and actions which can be done through creativity in each performance.
Traits:
 Disciplined: It is very important for every entrepreneur to maintain discipline in his
personality in organisation. Discipline helps entrepreneur to maintain proper balance in
professional and personal life of self as well as of employees. The presence of Discipline
in Elizabeth Gooch and Tom Mercer helped them to balance the gap and achieve success
effectively.
For example- An entrepreneur being a disciplined man maintains an adequate balance in
his profession and through this can perform his task very effectively and efficiently.
 Confidence: A important trait which is very necessary to be present in each entrepreneur
is confidence. A person full of confidence can achieve toughest targets easily. Elizabeth
Gooch and Tom Mercer are enough confident about their plans and aims which boosts up
their morale and assist them to achieve success.
11

For example- An entrepreneur having a full confidence in his plan and for its results then
he will be able to provide his best in it to make its plan a grand success.
P6 Aspects of the entrepreneurial personality reflect entrepreneurial motivation.
There are certain factors which represents some entrepreneurial motivation which is
necessary for a successful entrepreneur. A model can be applied for reflecting an entrepreneurial
motivation named OCEAN. The model is discussed below:
 Openness: It is related to adventure ideas and emotions. It -says that creativity and
curiosity is very supportive for an entrepreneur I having adequate and fine decisions in b
business. This opens a door for learning new things (Shepherd and Patzelt, 2017).
For example- Both the entrepreneurs are always ready to learn new things which made
them a successful entrepreneur in their respective fields.
 Conscientiousness: This includes reliability and flexibility in achieving goals. This says
about entrepreneurs focus on goals and objectives.
 Extroversion: This component says about the assertiveness and energy of an
entrepreneur so that they can influence their team members with a motive to maintain
healthy relations and retain employees for longer term.
For example- Both the entrepreneurs in the given case are very extrovert and always tries
to achieve new thing, this reflection in themselves helped them to influence their team mates and
achieve success.
 Agreeableness: This element of model talks about trust and cooperation with company's
employees. It says that entrepreneur should be enough trustworthy and cooperative with
its employees in the organisation. By this entrepreneurs can have many views and
suggestions for their workings and can lead to improvements.
 Neuroticism: This talks about fear, frustration, anxiety, jealousy, etc. This is a situation
where entrepreneur can behave negatively which should be ignored by him to treat his
employees friendly.
In order to have reflection upon entrepreneurial motivation and mindset there is a
concept of creativity that is emerged in an entrepreneur when he is passionate and motivated.
Passion and motivation gives rise to innovation in enterprise that can only be done by adding
creative thinkings skills, expertise and continuous motivation into it. This brings an internal
12

desire in a person to perform something unique in order to show case a sense of challenge or a
drive to crack problem which cannot be done by others.
TASK 4
P.7. Background & experience can hinder or foster entrepreneurship.
Entrepreneur operate their business with the objective of earning maximum profit and
create good brand image (Vallaster and et.al., 2019). Their experience as well as background of
entrepreneur helps in getting more involvement in working which give direction to the business
towards growth and success.
Elizabeth Gooch
Background: In the age of 18 she started to do job at HSBC bank and after 1 year she
left the job and join new consultancy firm after devoting some time she again left the firm and
collect with their family member and family , small amount of money. She collected one
thousand pounds from friend to start her own business. She started to provide consultancy
services. Later she also float company in market for investment to attract more investor.
Experience: She started her new business but simultaneously face many problems like
lacks of funds. She managed to handle these problems for the purpose of business growth. Her
father guide her to get good job instead of running their own business. After some time she met
with Rodney Baker bates who give his ideas regarding development of software instead to give
consultancy service. She managed to overcome losses and further gained profit again.
Tom Mercer
Background: He was post graduated from Cambridge university. He also has
experience as consultant in Bain and co. , London. When go to to job he notice that audience has
many options for their lunch and dinners but there is only limited option for breakfast. In 2008
start business by offering health drinks that includes smoothies and oats. And slowly their
business expand and they employ 15 more workers/employees.
Experience : Tom have two years experience as city workers and he clearly knows the
problems of being a key worker and there issues regarding the healthy breakfast which people
faces while going to work so he thought about a new idea for a product for his business. He used
to cut fruits at night and put them in bottles in order to sell it to customers. He also go to sell his
13

products at the railway station in order to get the determination to fulfil the demands of the
customers and the product invariantly.
CONCLUSION
After deep study and analysis it is conclude that entrepreneur are those people who tends
to convert their innovative ideas in reality by implementing these thought or ideas so that
customers need can easily be satisfied effectively as well as efficiently. As there are existence of
various type of ventures like small enterprise, medium or large size company which are
associated with typologies of entrepreneurship. For country starts ups , small as well as medium
firms are useful & beneficial. Because it leads to increase job opportunities for audience and
also tends to improve profit margin or revenues. It also increase the standard of living of people
of that country.
14

REFERENCES
Books and Journals
Acs, and et.al., 2017. The global entrepreneurship index. In Global Entrepreneurship and
Development Index 2016 (pp. 19-38). Springer, Cham.
Apostolopoulos, and et.al., 2018. Entrepreneurship and the sustainable development goals.
Emerald Publishing Limited.
Azoulay, and et.al., 2020. Age and high-growth entrepreneurship. American Economic Review:
Insights. 2(1). pp.65-82.
Baker, T. and Powell, E.E., 2019. Entrepreneurship as a new liberal art. Small Business
Economics. 52(2). pp.405-418.
Doh, J.P., Tashman, P. and Benischke, M.H., 2019. Adapting to grand environmental challenges
through collective entrepreneurship. Academy of Management Perspectives. 33(4).
pp.450-468.
Fritsch, M. and Wyrwich, M., 2017. The effect of entrepreneurship on economic development—
an empirical analysis using regional entrepreneurship culture. Journal of Economic
Geography. 17(1). pp.157-189.
Hisrich, and et.al., 2017. Entrepreneurship. McGraw-Hill Education.
Kimmitt, and et.al., 2020. Poverty and the varieties of entrepreneurship in the pursuit of
prosperity. Journal of Business Venturing. 35(4). p.105939.
Kwilinski, and et.al., 2019. Formation of the entrepreneurship model of e-business in the context
of the introduction of information and communication technologies. Journal of
Entrepreneurship Education. 22. pp.1-7.
Lindner, J., 2018. Entrepreneurship education for a sustainable future. Discourse and
Communication for Sustainable Education. 9(1). pp.115-127.
Parker, S.C., 2018. Entrepreneurship and economic theory. Oxford Review of Economic
Policy. 34(4). pp.540-564.
Rippa, P. and Secundo, G., 2019. Digital academic entrepreneurship: The potential of digital
technologies on academic entrepreneurship. Technological Forecasting and Social
Change. 146. pp.900-911.
15

Shepherd, D.A. and Patzelt, H., 2017. Trailblazing in entrepreneurship: Creating new paths for
understanding the field. Springer Nature.
Vallaster, and et.al., 2019. Ethics and entrepreneurship: A bibliometric study and literature
review. Journal of Business Research. 99. pp.226-237.
Online
Creation of new jobs, 2020. [online] Available through;
<https://www.nottingham.ac.uk/gep/documents/press-releases/2010/small-firms-and-
job-creation-17-03-10.pdf>
Economic growth, 2016. [online] Available through: <https://esrc.ukri.org/news-events-and-
publications/evidence-briefings/boosting-uk-productivity-with-sme-growth/>
16