Entrepreneurship and Small Business Management

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 Part 1

Introduction:

Entrepreneurship is stated to be one of the basic elements for the social and economic

expansion. It takes into account both the regional and the national development. The overall

idea of entrepreneurship might seem a simple affair though over the years scholars have

stated it to be complicated and dynamic, with the capability of one entrepreneur differing

from that of other. This report takes into account the facet of entrepreneur along with

entrepreneurship in the most exclusive of ways.

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P1: Provide an introduction to the report by examining different

types of entrepreneurial ventures and explaining how they relate to

the typology

According to Love and Roper (2015), the entrepreneurship process is taken in as one of the

most innovative methods intended towards the activities of business for organizing, managing

and leading organizational people towards attaining of the goals. It is significant that an

efficient entrepreneurship will bring forward the positive alterations and improvement within

an organization. The overall activities related to entrepreneurship comprises of the creative

ways for development and enacting of the materials, the performance where the developed

materials are being executed and approved and finally expanding the overall production

process.

Owner-manager

Social
Intrapreneurship Entrepreneurship

Types of
Serial
entrepreneurial Scalable Start-ups
entrepreneurship
ventures

Source: (Self created)

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Over the years it has been known that the present and future business, along with other

significant sector settles upon efficient and effectual individual skills of entrepreneurship. As

opined by Maurya et al. (2015), one of the essential facets of entrepreneurship concept is in

formulating a vision appropriate for the company, and through proper time executing it in the

most strategic of manners and in due time.

a. Serial entrepreneurship: Serial entrepreneurs are in the habit of identifying prospects

across the sectors and have immense timing while launching of new venture sorts. Unlike

most of the owners who generally spends important time within their industry and keep their

focus on things known by them, serial entrepreneurs are generally active in most of the

industries. They need acquiring knowledge about various diversified sectors. In case of serial

entrepreneurship, a serial entrepreneur often comes up with striking ideas and does the

necessary things to get started, however pass on the responsibility to another person and shift

to a new idea or venture. This is generally good if the individual has lot of unique ideas in his

kitty. For example, Omar Hamoui established four companies of different sort after dropping

out from his MBA program. The most famous among the four being Admob that dealt with

mobile ad network platform.

b. Intrapreneurship: Intrapreneurship is quite similar to an entrepreneur within a big size

organization. The intrapreneurs are highly self-motivated people along with being proactive

and action-oriented taking decisions easily and that too from within the boundaries of the

organization for making products and services innovative (Cowling et al 2015). An

intrapreneur keeps his focus on certain specific issues with his main area being the company

process instead of the overall business. An intrapreneur has the talent in serving some of the

innovative phases for allocating a better condition for the company through serving of

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services and goods. For instance, Texas Instruments that has been much experimenting with

technological aspect making use of tiny mirrors in redirecting photons for over a decade.

c. Owner-manager: Owner-managers are the individuals who are in the habit of owning a

business and managing the same. In most of the small businesses, an owner-manager is

generally the driving force behind a business success and will be acting as a catalyst for

bringing in change within the business scenario that takes place in and around the

organization.

d. Social Entrepreneurship: The key aim of this sort of entrepreneurship is to improve on

the services and products for the betterment and development of human beings along with

societal coordination. Such firm entrepreneurs mainly focus on the production and

implementation of the services or products that would generally lead to effectual society

building and environment and for population’s betterment. For instance, Bill Drayton is an

example of social entrepreneur. He has been the founder of Ashoka, Innovators for Public, an

association mainly dedicated in finding and assisting social entrepreneurs globally. Drayton

helps spreading social entrepreneurship in other associations too.

e. Scalable Start-ups: The endeavour of having a goal of dynamically modifying the overall

persisting approach, this sort of entrepreneurial venture mainly keeps its focus on the quality

aspect along with creativity in business, and for the same engages effectual personnel into

their workforce (Cowling et al 2015). For instance, goLance has been global with their reach

increasing every day. It is an independent platform which anybody can use in hiring a

freelancer or even becoming one.

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P2: Building on the different types of entrepreneurial ventures

The following table showcases the difference between the serial entrepreneurs, intrapreneurs

and owner-managers within the small and medium business scenario.

Serial Intrapreneur Owner-Managers

Entrepreneurship
1. Primary They aim on These individuals have These individuals bring
Motive independent been aiming on in ideas, skills and
opportunities in independence and their courage to the
creating money and ability in advancing to entrepreneurship plate
coming up with the corporate rewards. along with managing the
unique ideas. functions and operations
of the business for
generating revenue.
2. Risk They are high risk These individuals are These individuals are
takers and they not fully risk takers and careful risk takers and
believe in investing have a tendency to hide generally avoid any sort
money and less in the risky projects until of risk activities like the
nurturing of the they move into the risk projects.
same causing lower level of risk.
business failures.
They are someone
who has already set
up enough business
ventures on previous
occasions.
3. Activity These individuals These individuals These individuals are in
have the capability directly get involved the habit of directly
of quickly advancing more than the delegating and
a business through delegation. supervising more than
the phase of start-up any sort of direct
into the trajectory of involvement.
sustainable growth.
4. Mistakes Serial entrepreneurs These individuals are in These individuals are in
and Failures do not tend to learn the process of the process of dealing
from their failures attempting to hide risks with the mistakes and
and are stated to be from being viewed until failures in the most
over optimism at ready. positive of ways.
times even after their
failure.
5. Relationship Transaction Transaction with the Hierarchical
with Others hierarchy.
6. Decision These individuals These individuals have They are in the habit of
generally come up been following the following dreams with
with innovative dreams but are capable the decisions.
ideas and take in getting others in

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 decisions on their agreeing for helping in
own before leaving attaining the dream.
the business
responsibility on the
shoulders of others.
7. Operation They involve They have been They either operate from
themselves in operating from within outside or inside the
functional the organization. organization depending
operations. on the size of the firm.

In case of similarities, there are quite a few that states that on certain terms serial

entrepreneurs, intrapreneurs and owner-managers think on the same line. All the three play a

crucial role in seeking for solutions to the issues encountered by them within the

organization. All the three have to look out for opportunities after seeing the trends and

projects existing at marketplace. All the three are in the habit of operating within an

environment where there is little support for them. Each of these three types needs to be

flexible with their ideas and move in the forward direction.

P3 Present, interpret and assess relevant data and statistic to

illustrate the impact micro and small business have on the

economy

As opined by Galbraith et al. (2017), in the segment of small-scale businesses are developing

at an improved rate within UK. As pointed out by Fsb.org.uk. (2018), approximately 3500

start-ups cropped up in UK alone during the period 2015-2016. One of the key reasons for

this trend is the stable nature of economical and political condition within UK that is

supporting the commencement of such organizations along with their growth factor.

As stated by Love and Roper (2015), it has been observed in recent times that these small sale

organizations have been contributing majorly towards the economy of the country, and for

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the same the legislative and the political factors are enormously helping the nation in

attaining a good financial and economic position. There exist various factors for making a

contribution to UK’s strong economic stipulation. For the season of 2014-2015, an enormous

amount of £ 5.7 billion was accounted for as the turnover of the small business, as compared

to the overall amount of turnover assessed in the small and medium businesses of UK,

accounting to around 13.7 per cent. Adding to that is the fact that there has also been an

increase in the rate of employment with cropping up of these start-ups during those same time

period (Maurya et al. (2015).

It has been estimated that approximately 27 million people are being employed under the UK

businesses featuring the small-scale ones, including both women and men. If the overall

workforce is to be sketched within UK, amidst the overall workforce approximately 26 per

cent is being taken in to be engaged within the business of small-scale. It is significant in

signifying the fact that the total augmentation in business of the small scale sector is rolling

when being compared to the big organizations of UK and as per Welter et al. (2017), the key

for this growth aspect is the prologue of creativity and originality within the areas of

operations and strategic functions within the small business scale. When being compared to

the factors experienced by the big scale organizations, creativity and innovativeness are much

lesser in percentage.

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 Fig: Performance Overview of Small and Medium Scale Organizations

Source: (Growth. 2018)

Storey (2016) emphasizes the significance of innovation and creativity within business to be

the crucial factor for its potential augmentation and sustainability. In case of UK, the small

businesses have been developing and implementing several innovative and creative methods

in obtaining the leadership within the market. As affirmed by Love and Roper (2015), the

bigger percentage of these start-ups along with the existing ones are indulging heavily on the

improvement and implementation of the pioneering and creative strategies for the purpose of

sustainability and growth. As opined by Cowling et al (2015), small businesses played a

significant role in UK to surpass the impenetrability and challenges encountered by the

country during the recession period that took place way back in 2007-2008.

When it comes down to the business sectors of UK, there exist three industries that have

playing a key role in the growth of the country’s economy which are the real-estate industry,

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hospitality industry and the wholesale retail industry. These are the three industries where the

maximum number of start-ups has taken place within UK with 39.8 per cent of the overall

revenue is being generated from these three key industries. It is important to notify that of the

10 companies that gets documented in each week of a particular month, approximately four

out of that fits in any of the three industries mentioned above.

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P4: Explain the importance that small businesses and business

start-ups on the growth of the social economy

Social entrepreneurship is in the habit of making use of several methods by the various

associations related to start-ups accompanied with the other entrepreneurs for the purpose of

funding, improving and executing many of the solutions connected with cultural, social and

environmental issues.

As per Galbraith et al. (2016), a social economy of any country takes in the different sort of

organization like the cooperative organization, charity based organization and the non-profit

ones.

a. Major contributor to the UK economy:

 As per reports of 2016, small and medium sized organizations in playing a key role in

boosting productivity, contributing 47 per cent to the economy of UK however needs

support in expanding the business and augmenting the profit factor.

 It has been stated that the SMEs are less inclined to growth and determined than any

of the economies in G8. The Global Entrepreneurship Monitor has been able to point

out a growth of 17 per cent growth objective among the entrepreneurs in UK

(Fsb.org.uk. 2018).

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 Fig: Impact of small business by size of employees

Source: (Growth. 2018)

b. A major player in minimizing unemployment rate:

 Most of the social organizations are not that big as they do not have many funds to

work with. However, as stated earlier these small businesses have been employing the

most number of people and contributing more to the country’s GDP.

 Apart from all this the small and medium enterprises have been playing a key role in

modernizing the overall financial structure of UK along with the lifestyle. It has been

realistic that the micro businesses have the aptitude in offering the prospects of

employment to mere 0-9 individuals.

 For the small businesses, the general range of offering opportunities of employment is

for 10-249 employees and for organizations of medium-size it ranges from 50-249

and for bigger ones it goes beyond 250 employees (Welter et al. 2017).

c. Share of business:

SME’s embraces the vast preponderance of the compositional constitute of the business in

the UK economy. In the year 2015 there were a record figure of 5.4 million private

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segment businesses, an augmentation of 1, 46,000 since the year 2000. Out of all these,

whooping figure of 99.9 per cent were SMEs. Moreover, approximately 45 per cent of

SMEs plan to expand in the coming year or so with most of them improving their aspect

of growth.

d. Playing a significant role in representation of women:

The end of 2015 witnessed less than 10 per cent of the FTSE 100 companies’ executive

directors to be women. However, the end of 2014 saw approximately 18 per cent of the

UK SMEs being led by women. The SMEs led by female have contributed invaluably to

the economy of UK and generating around £50 billion to the economy of UK amidst 2006

to 2010 (Welter et al. 2017).

e. Balance of Payments

One of the important features of the UK economy is the balance of payments. Around 54

per cent of SMEs are in the habit of selling products or providing services abroad, with

the manufacturing segment leading arraign with a percentage of 68 per cent exporting.

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Conclusion:

This report discovers the entrepreneur and entrepreneurship concept in an exclusive fashion.

It also takes in an in-depth evaluation of the contribution made by businesses or the ventures

of entrepreneurship towards the nation’s and region’s growth.

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 Part 2

Introduction:

This segment takes into account the different personalities and traits possessed by the

entrepreneurs and showcased over a period of time. Their past experiences along with

cultural differences and family background plays a part in being successful in business.

Therefore it becomes important in evaluating the factors that plays a key part for

entrepreneurs in making them what they have always aspired for.

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P5: Determine what makes a successful entrepreneur:

The skills that are being needed in being a successful takes in the process of understanding

along with being analytical on various aspects. This takes into account the various facets like

the ideas related to business where it is significant for the entrepreneur in being critical for

evaluating various global economies and business. Adding to that, there needs to be positive

ideas along with aspirations that need to be collected by the entrepreneurs from any sort of

situation. Like within the case study where the entrepreneur has encountered an issue, it

becomes important on such situations where such mistakes should be taken in as the learning

experience (Leutner et al. 2014).

Communication skill is another significant aspect and in case of any sort of entrepreneurs it

becomes significant to interact and have proper knowledge on various perceptions that is

present within the people or the employees. They need to have the power of listening,

critically understanding and evaluating the situation and consequently take the require steps

(Kerr et al 2017). They need to benefit from the company of suppliers, colleagues, probable

consumers or any people they meet in that sort. It is important to have the skills for

communication in both impersonal and personal level that takes in both the electronic level

and the face-to-face part.

It is important for the entrepreneurs to have that urge within them in the things they want to

attain in life. They need to be goal oriented and needs to make use of the intrinsic rewards for

receiving the things they want to accomplish in their lives. The attainment of the ideas that

have been accumulated by the entrepreneurs is significant accompanied with the force of

accomplishing the goals. The entrepreneur needs to be resilient in his approach and needs to

take calculative risks in selecting the resources and pertaining of the same in the best possible

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manner. This would reassure the best possible productivity within the system. They need to

be pro-active in their working process for attaining their goals in the most honest of ways.

Planning properly is important along with identifying the correct strategies (DeNisi 2015).

For instance, entrepreneurs like Bill Gates have been able to maintain all the aspects that have

been discussed above. The skills related to leadership have been retained by the man that has

seen Microsoft reach new heights and be where it is presently. He has been able to create the

dream coming from a normal family background. However, his vision and the capability of

channelizing the strategies have been instrumental in providing him and the company the

required success.

Conclusion:

The primary difference of a manager and an entrepreneur is their style and approach. Another

difference that exists between them is their ability to take risks. The managers are generally

risk averse whereas the entrepreneurs are stated being more willing to cuddle risk. Every

entrepreneur is intuitive in its decision making whereas every manager is stated being

calculative in whatever they perform.

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P6. Assess how aspects of the entrepreneurial personality reflect

entrepreneurial motivation and mindset

There are various ways through which the entrepreneurial personalities are to be enhanced.

Different means and support is being required for the same. This takes into account:

a. Family Motivation: In most of the scenarios, it has been observed that the primary and the

most significant support are being derived from the family. It is the family that provides the

support. Apart from all this, it has been found that memories of childhood or the childhood

dreams promote the idea of undertaking the proper entrepreneurial mission (Kerr et al 2017).

These ideas grow within these individuals from their family life. The individuals that come

from the families having entrepreneurial history assists in forming a stronger mind of the

probable entrepreneurs along with fitting in the risk taking ability and showing commitment

towards business.

b. Cultural Differences: The basis for an entrepreneur to be good is in accepting the several

ideas related to business and entrepreneurship overcoming all the obstacles within culture

(Miller 2015). The adequacy of the differences is significant in creating strategies for the

ideas that they ensue to execute. The factor of motivation that is being derived from the

dissimilarities is based on ethnicity, religion, gender and race. Entrepreneurs have been

taking inspiration from world leaders like Abraham Lincoln and Nelson Mandela in fighting

against the odds and bringing in self-motivation factor to overcome the barriers. The self-

motivation brings in a positive outlook among the entrepreneurs where they perceive things

differently.

c. Personal Motivation: This sort of motivation is being derived from the individual

aspirations that entrepreneurs tend to have in their life. Motivation brings in commitment and

a goal-oriented approach where they set themselves to take inspiration from other

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entrepreneurs and sometimes from their personal self (Leutner et al. 2014). Such inspiration

helps them in having faith and belief within themselves in becoming business tycoons that

they once aspired in life. One such example can be Steve Jobs of Apple Inc. a man who

transformed the mobile technology.

d. Lifestyle Entrepreneurs: These sorts of entrepreneurs have been taking inspirations from

adventures and they find themselves ready to take risks as and when required for which they

have the ability to take risks. Moreover, they are resilient in their work process and have the

ability to bounce back from difficult situations.

e. Adaptable and Flexible:

Being fervent and dedicated is significant, however being inflexible at times about the needs

of the market and the client leads to failure. It is important for entrepreneurial ventures in

making a successful business out of the things they perform within it. Entrepreneurs who are

successful take in customization that might augment their provision and satisfy the needs of

the market (Leutner et al. 2014).

f. Market Knowledge:

Entrepreneurs who have knowledge about the product needs to understand the market as well.

Most of them become successful as they make something happen that did not exist before or

improve on something that existed already but never performed as per the expectation.

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P7 Relationship among the past experiences and background of

any person on the entrepreneurship

Past experience assists people in promoting the entrepreneurship factor as it generally has an

immense impact on the advancement of the risk taking capabilities along with the level of

confidence. Varied sorts of entrepreneurs exist in channelizing the diverse class of leadership

processes accompanied with the management. Personal knowledge is being made use of by

the entrepreneurs in the process of business.

Moreover, it has been witnessed that they have been making use of their personality traits that

have been attained by them in their life. The key factors that play an important role are

knowledge management, self-motivation and the process of self-management. Education

helps them big time along with the experience that have been gained by these individuals

over the years in finding the right sort of direction within the organization (Wang et al 2016).

Walt Disney:

Walt Disney

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 Source: (faces.ch.com)

Environmental Factors Evidence from case study

Personal Background:
Born in Chicago Illinois, USA on December
5, Walt Disney was born to mother Flora Call
and father Elias Disney and was one of the
five children. Walt Disney spend his entire
childhood in Missouri, where he initiated the
life of an entrepreneur by drawing and selling
pictures to neighbours and friends.
Personality:
Walt Disney worked at the Kansas City Film
and Company. He was instrumental in
forming his first business by the name of
Laugh-O-Grams. Till 2016, his fortune was
estimated to be $92 billion.
Environmental Ecosystem:
Banks in USA
Universities in USA
Stock Market in USA
With the help of his brother he set up the
Disney Brother’s Studio.
Skills:
He had great communication skills; he was
an animator, film producer and also a
perfectionist.
He was instrumental in inventing cartoons
like the famous Mickey Mouse, Snow White
and Seven Dwarfs and also found the Walt
Disney World.
He was a main who won 22 Academy
Awards in his lifetime (DeNisi 2015).

Sam Walsh:

Sam Walsh

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 Source: (FinancialTimes.com)

Environmental Factors Evidence from case study

Personal Background:
Sam Walsh was born in the year 1949 and
spends his childhood in the seaside suburb of
Brighton in Melbourne and was one of the
five children. At the age of 15, Walsh lost his
father and took up the responsibility of
dealing with finances and after graduation
joined General Motors as a trainee buyer.
Personality:
After working for 20 years in the automotive
setor, Sam Walsh was promoted to various
positions of seniority in Nissan and General
Motors. He joined Rio Tinto in the year
1991.
Environmental Ecosystem:
Banks in USA
Universities in USA
Stock Market in USA
Began his illustrious career with General
Motors and then worked for another 20 years
within the industry of automotive like Nissan
in Australia.
Sam Walsh was a revolutionary when he
joined Rio Tinto, the company lost his way
during that time and Walsh was instrumental
in bringing the association back on track. He
was a firm believer of the fat that emulating
what rivals are doing is not necessary. He
was a leader who had lear accountability and
never got distracted.
Being the member of B20, the business
armrest of G20, Sam Walsh regarded the
stability in politics as one of the key issues
that was promoted by the B20 team. Walsh
identified the infrastructure of government
investment for issues like agreements of anti-
corruption nature, tax reforms leading to
economic growth (DeNisi 2015).
He was a hall of famer in Brighton Grammar
School, gold medal winner from the
Australian Institute of Company Directors for
his contribution as a leader in the wider
commune and Western Australia’s citizen of
the year in 2007.

It has been thoroughly observed that the smaller and medium size organizations do not

always have knowledgeable leaders or founders. They sometimes lack the required skill for

dealing with every situation that comes their way while working in the organization. These

things come within an individual in due course of time accompanied with the experience

gained over time. After achieving the required experience they will acquire the right kind of

answers for an exacting situation. The risk perception along with appropriate knowledge of

the essential threats existing within an organization is being tackled with proper

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understanding that is being acquired in proper time (DeNisi 2015). The efficient process is

being originated through the help of the prior experiences along with dealing with the current

situation subsequently.

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Conclusion

It can be concluded that entrepreneurs need to focus on various factors that helps them in

being successful businessman. Being successful in business is not a one day affair; it takes in

lot of hard work, ability and talent to stand out from the rest. It is important for the

entrepreneurs in identifying those factors and keeping learning for personal and professional

development.

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References:

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Encyclopedia Britannica. (2018). Walt Disney | Biography, Movies, & Facts. [online] Available at:

https://www.britannica.com/biography/Walt-Disney [Accessed 8 May 2018].

Linkedin.com. (2018). LinkedIn. [online] Available at: https://www.linkedin.com/feed/ [Accessed 8

May 2018].

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