Analysis of Entrepreneurial Ventures & Small Business Skills

This report provides an overview of entrepreneurship and small business management, covering various entrepreneurial ventures such as small, large, social, and scalable businesses. It discusses the similarities and differences between these ventures, the impact of micro and small businesses on the economy, and the importance of start-ups to the social economy. The report also examines the traits and skills of successful entrepreneurs, differentiating them from business managers, and explores how entrepreneurial personality reflects motivation and mindset. Finally, it considers how background and experience can either hinder or foster entrepreneurship. Desklib offers similar solved assignments and past papers for students.

Entrepreneurship and Small
Business Management
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different type of entrepreneurial ventures and explain how they relate to the typology..3
P2 Similarities and differences between entrepreneurial ventures.........................................6
TASK 2............................................................................................................................................9
P3 Relevant data and statistics to illustrate how micro and small businesses impact on the
economy.................................................................................................................................9
P4 Importance of small business and business start-ups to the growth of the social economy
..............................................................................................................................................11
TASK 3..........................................................................................................................................13
P5 Characteristic traits and skills of successful entrepreneurs that different them from other
business managers................................................................................................................13
Difference between entrepreneur and business manager...............................................14
P6 Entrepreneurial personality reflect entrepreneurial motivation and mindset..................15
TASK 4..........................................................................................................................................17
P7 Background and experience can hinder or foster entrepreneurship................................17
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................19
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INTRODUCTION
Entrepreneurship is considered as an important procedures of launching and running an
innovative business to generate larger profitability at market place. In this, a person who give
new and innovative ideas is called entrepreneur as they take risk with the aim of converting into
financial benefits. The main focus of an entrepreneur is to establishment of new business with
new ideas that help in inviting more and more customers towards its ideas. This can be beneficial
in improving the possibilities of attaining competitive advantage (Berglund, Johannisson and
Schwartz, 2012). In addition of this, involvement of new and innovative ways is also play a
significant role in attaining success in diversified market place. The main purpose of this report
is to increase knowledge about how to become a successful entrepreneur. This report also cover
different type of entrepreneurial ventures with its typologies along with similarities and
difference between various entrepreneurial venture. Impact of small and micro business over the
development of economy is also mentioned in this project. Furthermore, it also covered skills,
traits, characteristic of an successful entrepreneur that make them different from business
managers. Entrepreneur personality that also reflect their mindset and motivation level. At last,
contribution of background and experience also hinder or fostering the entrepreneurship is also
discussed here.
TASK 1
P1 Different type of entrepreneurial ventures and explain how they relate to the typology
Entrepreneurship: It is referred as an act of determining as well as identifying their own
new ideas for staring a innovative business instead of working for someone others. Mainly, it is a
process that includes various activities related with designing and launching a new business with
the aim of generating huge profitability level. Along with this, it also includes various innovative
ways, risk factors and many more that affect the overall activities of a new venture at the time of
introducing an innovative concept at market place. Basically, it is based in different types like
small, large, social and scalable business (Bridge and O'Neill, 2012). For attaining success in
competitive market, taking risk and introducing innovative ideas are best way through which
business can easily sustain in diversified business environment. Being in the world of internet,
where companies has a open and fairly ultimate chance of increasing customer’s base “lifestyle
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entrepreneurs” are increasing on a good speed. It can be said that lifestyle entrepreneurs are those
who earn their living through online platforms thing they all need is just their laptops and a
proper connection to internet. Their main phenomena of operating a business is to “keep it
simple” and pick a profitable target audience. Basically, lifestyle entrepreneurs are likely to take
a job where they enjoy the activities and gain appropriate amount of incomes from the same.
Whereas, in relation with survival entrepreneurs the basic goal considering which they operate
their business is to meet the financial obligations facing by the company and focus on staying
with the business for a longer period of time however, this makes the employment freeze. On the
other hand, growth entrepreneurs during the initial stage of business invest a high amount of
money and engage themselves in reinvesting as their goal for achieving their growth objectives.
Concept of entrepreneurship: An entrepreneur is an individual who undertake a new
business along with some profits and at the same time also includes amount of risk. Person who
start a new business also have some creative and innovative skill that help them in improving
their business performance at market place. In this regard, entrepreneurship is also based of
creation or extraction of values by focusing on running and controlling a new business.
As there are different type of entrepreneurs who are involved in the concept of entrepreneurship
are as follows:
 Serial entrepreneurs: This type of entrepreneurs or person continuously come up with
innovative ideas in market place (Cardon and et.al., 2012). Serial entrepreneurs also have
created various companies in which some are failed and others were sold. In this,
innovation is the one of the top priorities and the monetary gain is incidental as they
always focus on start a new one in market.
 Intrapreneurs: This type of entrepreneurs is the employee who is always tasked with
identifying an innovative idea within the business organisation. The main aim of
Intrapreneurs is to enhance the company future by developing creative ideas.
 Owner managers: A person who own a business and also manages it with the aim of
attaining all the set personal goals and objectives. Owner managers also focus in
managing or controlling day to day operations within their business organisation.
 Social entrepreneurs: Some who work in under the one who have the ability to address
issues and concerns relevant to community or get a significant impact on environment.
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Public entrepreneurs with their very own interests take chances and explain their projects
to carry out initiatives that are helpful to humanity.
 Female entrepreneurs: They might have the same features as male businessmen; except
they operate their company by themselves. Women entrepreneurs, for even the most part,
work for the charitable purpose and are quite effective at empowering their workers so
that aims and goals can be easily attained.
Along with this, there are different type of entrepreneurial ventures are explained
below:
Small entrepreneurial venture: These businesses are operating their functions at small
scale and also bifurcated on the basis of market size. In this, the capacity of earning profit is low
as compare to other business. Along with this, the main focus of this type of business is to earn
their livelihood by operating their day to day activities. It also put positive impact over the
development of economic condition as it generate job opportunities for local people. Mainly, it
includes companies operate at small scale like electricians, grocery stores and many more.
Large entrepreneurial venture: These types of business are operating their activities at
big level as it is large in size and nature as well. In this regard, the main focus to large business
organisation is to provide quality services to its customers and at the same time company also
work for society development as well (Chell and Karataş-Özkan, 2014). For operating this type
of companies, high amount of capital, resources and all the necessary aspect. The nature of this
type of business organisation is that it includes different sector like manufacturing, hospitality,
retail sector and many more.
Social enterprise: The main purpose of this type of business is to provide social welfare
to people in order to develop society. In this, firm provide better satisfaction of the requirements
of needy people. In context of this, the nature of social business includes providing medical
facilities, working towards food relief and many more. It also helps in improving economic
condition of nation as it contributes in developing the living standard of people by proving them
services as per their needs and wants.
Scalable venture: This type of business is based on the creative aspects in which
entrepreneurs adopt a flexible business plan to accomplish competitive success (Dennis Jr,
2011). As the main focus of this type of business is to providence of higher returns by keeping
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more services, investment of capital. In addition of this, business also get the investment from
the anger investors to manage the enough fund so that they can easily run their business.
P2 Similarities and differences between entrepreneurial ventures
In market place, each entrepreneurial venture operates their business in their own ways
and also includes their different roles and objectives. In this regard, the comparison between
entrepreneurial ventures can be understood by following points:
Basis of
Difference
Small business Scalable start up Large company Social
entrepreneurship
Definition This kind of
venture is defined
at a small scale
because of lack of
skilled employees
and turnover.
Along with this,
small business
also covers only
geographical area
to generate
profitability.
Scalable business
venture is famous
by its continuous
innovation that
help in attaining
higher success at
market place.
Such type of
entrepreneurial
venture includes
huge amount of
investment and
also operate at
large scale in
which the focus
of this company
is to provide
satisfactory
services to its
customers as per
their needs and
wants.
These types of
ventures focus on
fulfilling society
needs and also
solve their issues
to develop
economic
condition and
improve social
welfare as well.
Features Small
entrepreneurial
venture includes
some features like
limited number of
monetary
resources,
This type of
business consider
some features that
they expand their
business with the
help of existing
business along
Large business
organisation
includes big
cycle to operate
its business. As
the focus of this
type of
Such ventures are
focus in fulfilling
society needs.
Along with this,
company also
acquire resources
from government
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government
support and
limited workforce
(Ferreira and
et.al., 2012).
with innovative
ways.
companies to
serve best
quality of
products and
services to it
customers and
attain their
satisfaction as
well.
authorities.
Objectives The main
objective of small
ventures is to
generate profits to
operate day to
day activities in
order to get
livelihood.
Scalable business
has objective to
invite as well
attract
investigator to
invest their
money on their
new ideas so that
business activities
can be
successfully
operated at
market.
Large
entrepreneurial
venture focus on
satisfying
customers
demand by
providing them
quality services
in order to
generate
maximum
profitability
level.
The main purpose
of social
entrepreneurial
venture is to
provide
appropriate ways
to resolve society
issues and at the
same time also
provide them
better services to
get their higher
satisfaction.
Similarities and different between entrepreneurial venture:
Venture Similarities Differences
Male and female
entrepreneurs
In order to keep the business
successfully, both women and
men are strong enough to
carry out their behaviour in
such a way that maximum
profits can be made.
In response to inequalities,
male businessmen take any
risks in order to attain greater
levels of income. In particular,
they become obsessive in
nature, and sometimes they
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may have difficulty
communicating with everyone.
Instead of significant risk in
industry, male employees
never stop investing a
significant amount of money
in company operations.
Although women
entrepreneurs are quite
calculative in nature and,
before engaging in some kind
of company, they reach out
and gather the right
information in order to make
better choices.
Small and Social
entrepreneurial ventures
For all entrepreneurial
ventures, the company's
employees adopt unique ideas
just so the business could
provide its clients with
excellent services and
facilities. To particular to
achieve so, it is also essential
that the organization makes
efficient use of money, for
example: resources to be
utilized accordingly to
activities.
Small companies essentially
start their business to meet the
necessities and desires of their
family members.
In regards to social enterprises,
they operate with the aim of
encouraging and improving the
health of populations
participating in society or in
the environment.
Consequently, they initially
take care of what has been
needed in society and how
needs and desires can be
accomplished.
Scalable start-ups and large Both scalable and large-scale Scalable entrepreneurs always
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entrepreneurial ventures operations with either the goal
of delivering goods and
product according to the needs
and desires of consumers, so
that requirements can indeed
be met.
focus on unique ideas along
with in changing the world.
Large entrepreneurial ventures,
for selling their products and
services, have a significant
amount of money to support
them carry out their action
plan in an efficient way. It
allows the organization deliver
the best quality product that
will slowly increase its sales
and customers base as well.
Discussion on the similarities and differences
While talking about similarities for the different entrepreneurial ventures it is the same
i.e. factors which motivates or drive an entrepreneur in following their passion. Moreover, hey
make proper use of the resources that are available to them so that goals and objectives can be
achieved. Whereas, in terms of differences, requirements from their business operations can be
different as in for some people it is the source of earning a large amount of money. On the other
hand, some of the entrepreneurial ventures work for the betterment of the public instead of
earning profits.
TASK 2
P3 Relevant data and statistics to illustrate how micro and small businesses impact on the
economy
Small business is suggesting as the organizations whose yearly deals just as resources
estimated is around £ 250000/year and have some staff including owner of the business. It is
reasoned as the sub class of small business and framed into an assortment of enterprises. On the
other side, small businesses are commonly the exclusive firms, organization which have more
employees in contrast with micro and less yearly income than basic measured organization.
Impact of SME's upon economy:
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 Local impact: Both small and micro business have impacts upon local economy as this
works its exercises at nearby commercial market. In addition of this, these types of
organization gives business open doors for local people of society for making them
conformable just as permit them to carry on with its existence and at the same time also
improve their living standard as well (Goss, 2015).
 Regional impact: SME's includes huge impacts upon local economy as it encourages
work open doors for local people with the aim of provide various job opportunities to
people that contributes in improving their living standard. Additionally, it influences
positively upon local economy as it has effective just as capable staff who encourage its
more commitment into organizational activities that supportive for the local economy
development.
 National Impact: SME's has power upon national economy because of its essence is vast
into United Kingdom as around 15 million people are employed through these
organizations that states positive impacts of that organization upon enhancing the
economic condition. These types of businesses are shaped relying on the inventive
thoughts in light by which they can develop into wider market place (Jones and Rowley,
2011). By considering these developments they can encourage more facilities that will
consequently contributes more in context of financial improvement in all over nation.
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As per above mentioned graph it can be analysed that small business are more than micro
business and along with this, rate of medium business is higher than small businesses. As it can
be stated that business is increasing their impact over the economy by developing or improving
its condition. Mainly, it provides several opportunities by creating employment opportunities. By
this local people can easily improve their condition.
According to the study, in United Kingdom, in the year 2019 around 5.9 million private
business were started in which more than 99% were under the category of small or medium
enterprise. All the companies who were operating their businesses provided employment
opportunity through 60% of job vacancies which is a total of approximately 16.6 million. Thus,
they have contributed a lot of money to the economy of United Kingdom.
Figure 1: Private Sector Business
Whatever business is going in the market whether small, medium or large they all
provide with employment opportunities and other factors as well. According to the chart
mentioned above, it can be determined that with the increase in the percentage of businesses
employment rate has also increased. In terms of medium enterprise around 35, 585 new business
was established that provided employment to approximately 3, 473 people and the turnover
which was gained was close to £639, 322 million (UK SME Data. Stats & Charts, 2020).
P4 Importance of small business and business start-ups to the growth of the social economy
For developing economic condition, small business and start-ups are refers to the
backbone of economy as it helps in generating revenue (Mitchelmore and Rowley, 2013). Along
with this, it also provides various job opportunities to people in enhancement of their living
standard. In this regards, small business help in fulfilling daily life and business demand
whereas, start-ups create a large portion of new job that directly contributes to the economic
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growth of nation. As there are some important of small and start-up's business in context to the
development of social economy are as follows:
 Creation of employment: Small business and start-ups operate their activities with small
scale but at the same time also generate huge employment opportunities to people. It may
directly contribute in eliminating poverty from the economy. Creating of job
opportunities may support in developing living standard of people.
 Innovation: In market place, small business and start-ups are come up with new and
innovative ideas that may invite more and more people towards the same (Obeng, Robson
and Haugh, 2014). This can be beneficial in generating profitability level. Innovation is
business is also effective in producing quality and attractive products that capture
customers attention. With the help of this, company generate profitability and at the same
time also keep economic condition stronger.
 Meeting social purpose: The main purpose of small and start-up's business is to meet
social needs in which enterprise provide best quality of services to needy people. This
can be beneficial in developing society by resolving issues. Along with this, small
business also contributes in creating the effectiveness by providing welfare to the society
and local people as well.
 Local improvement: Both enterprises play a significant role in development of the
country as it effective in creation of job opportunities for local people that make them
engage with company. It may contribute in increasing the rate of per capital of the nation
that assist in improving local condition.
Impact of SME’s in the social economy:
Small and medium-sized companies are considered to be a critical method of generating jobs
and reducing poverty in developing countries. The involvement of small and medium-sized
businesses allows the productive use of local assets and boosts economies around the world.
Small and medium-sized enterprises (SMEs) are assuming an indispensable part in developing
economies by importing and importing goods, which stimulates the global economy and social
growth as well.
Small companies have around 250 employees and around 5.7 million small and medium-
sized enterprises in 2017, which constitutes about 99 per cent of all companies. At the local
level, micro and small enterprises operate, and there are about 5.4 million in the United
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