Entrepre

neurship
and
Small
Business
Manage
ment

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Table of Contents
Introduction:..........................................................................................................................................2
Part 1.....................................................................................................................................................3
P1. Provide an introduction to the report by examining different types of entrepreneurial
ventures and explaining how they relate to the typology of entrepreneurship. Your introduction
should aim to define entrepreneurship and explore entrepreneurship scope and typology............3
P2: Building on the different types of entrepreneurial ventures explored in P1, you are now
required to explore the similarities and differences between each. You could consider the roles,
characteristics and objectives of different types of ventures: private, public, social enterprises – as
well as different sized ventures: micro, small, medium.....................................................................4
P3: Present, interpret and assess relevant data and statistics to illustrate the impact micro and
small business have on the economy. You should consider local, regional, national and
international economic impacts........................................................................................................6
P4: Building on the information you provided for P3, you must explain the importance that small
businesses and business start-ups on the growth of the social economy.........................................7
Part 2.....................................................................................................................................................9
P5: Determine what makes a successful entrepreneur. You could consider examples of successful
entrepreneurs and determine the characteristic traits and skills they possess. Similarly, you could
explore whether entrepreneurs are born or made and whether entrepreneurship skills can be
learned over time............................................................................................................................10
P6: Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mind-set. You may wish to consider how personality is shaped by family upbringing, lifestyle,
cultural differences and personal motivation and drivers amongst other factors...........................11
P7. Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship.............................................................................................................................12
Conclusion:..........................................................................................................................................14
References:..........................................................................................................................................15

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Introduction:
The following assignment is based on the entrepreneurship and the small business
management. Entrepreneurship is the demand of today’s competitive world.
Entrepreneurship refers to doing things differently in order to start a new business to
launch new and innovative products and services in the market. In the following
assignment, we will discuss the various different entrepreneurial ventures as well as
the similarities and differences between each of them. We will also discuss how
small business brings changes in the national economy and helps in the social
development as well. The second part will discuss the various personality traits in
order to become a successful entrepreneurs.

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Part 1
Introduction:

The main motive of preparing following report is to focus on the various different
types of entrepreneurial ventures. We will also gain the understanding of difference
between different entrepreneurial ventures as well as the importance of the small
businesses for the economic development of UK.

P1. Provide an introduction to the report by examining different types of

entrepreneurial ventures and explaining how they relate to the typology of
entrepreneurship. Your introduction should aim to define entrepreneurship and
explore entrepreneurship scope and typology.
Entrepreneurship may be defined as the process of starting a new business with the
whole new and innovative concept by taking into account all the risks involved with
the help of the limited resources. In order to be effective, the new business plan
needs to be clear and specific (Kirzner, 2015). Entrepreneurship ventures are of
different kinds including:

Small Business Entrepreneurship: Small business Entrepreneurship includes

businesses like electricians, plumbers, grocery stores etc. These are started with the
main objective of fulfilling the basic needs of the family by making small profits and
are mostly operated by their owners.

Scalable start-up Entrepreneurship: In order to make large and huge profits and
with the objective of marking change in the outside world, the scalable start-ups are
created. In order to accomplish this objective, these businesses hires the best
manpower.

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Large Company Entrepreneurship: The main motive behind starting large
company entrepreneurships is to launch a totally different and innovative product in
the market by making use of the unique and innovative ideas.

Social Business Entrepreneurship: Social Business Entrepreneurships are started

with the main objective of solving the issues of the society and therefore provides
services that fulfils the needs of the society. They falls in the category of both for-
profit and non-profit organizations.

P2: Building on the different types of entrepreneurial ventures explored in P1,

you are now required to explore the similarities and differences between each.
You could consider the roles, characteristics and objectives of different types of
ventures: private, public, social enterprises – as well as different sized ventures:
micro, small, medium.
The major similarity between most of the entrepreneurial ventures discussed above
is that all of them works with the main objective of making profits and achieve
success. However, they are also different from each other as discussed below:

Comparison between scalable start-ups, social firms and lifestyle businesses:

The main objective of the lifestyle businesses is to earn profits for lifetime by
willingness and hard work and passion. The capital for the lifestyle businesses is
provided by the investors and they often operate on small scale and therefore does
not hire manpower for their functioning (Carter and Evans, 2012). On the other hand,
the main objective of the social enterprises is to make this world a better place for its
people by bringing in innovative ideas and products. They get the financial support in
accordance with their size and services provided through which they try to make a
great impact on the society. Scalable start-ups are the ones that have the capability
to bring change in the world by innovating technology based new innovative
products. Their main objective is to make huge profits and the financial support is
provided through venture capitalists and banks. They help in the economic
development as they provide employment opportunities for the common people.

Comparison between small scale and large business entrepreneurship:

The main motive behind the working of the large scale entrepreneurships is to make
large profits and to have larger share in the market whereas the main focus of the
small businesses is on simply making small profits in order to provide bread to their

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families and fulfil their basic requirements and therefore they generally operate on
small scale are mostly run by their owners. The medium scale businesses generally
function with the main objective of coming up with an innovating and different idea so
as to provide new product in the market (Burns, 2012).

M1:

The process of starting a whole new business with the help of new concepts and
ideas with all the risks involved is known as the entrepreneurship. In private and
public sectors, the following different types of entrepreneurial ventures exists:

Lifestyle Business Entrepreneurship: Lifestyle Business Entrepreneurships are

started by the entrepreneurs in accordance with their passion and desire as well as
their lifestyles. A perfect example of a lifestyle entrepreneur is the Steve Jobs, who
had the passion and love for his work and that was the reason behind his success.

Social Entrepreneurship: The main reason behind the existence of the social
entrepreneurships is the welfare of the people, society as well as the environment.
They fall into the category of profit as well as non-profit organizations (Storey, 2016).

Growth Firms (Serial Entrepreneurs): Their main motive is to earn huge profits by
continuously innovating new ideas as well as products and services. They grow on a
very fast pace. A perfect example of growth Firms is Google.

Intrapreneurship or Managerial: The intrapreneurship mainly exists within the large

businesses and are mostly introduced by the managers of the organization so as to
make the organization achieve great success by providing new and innovative
products as well as services.

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P3: Present, interpret and assess relevant data and statistics to illustrate the
impact micro and small business have on the economy. You should consider
local, regional, national and international economic impacts.
The growth as well as success of micro as well as small business start-ups in UK
has impacted the rate of economic development of the country to a great extent. If
we talk about the year 2015-2017, then almost 3550 small and micro business start-
ups started operating in UK. This has become possible due to the suitable political
as well as economic conditions prevailing in UK which encourages small business
start-ups. It plays a major role in the economic development of the UK and that is the
reason why UK government favours small and micro businesses in the country
(Storey, 2016).

The growth of the micro businesses as well as the annual turnover of the small
businesses are also affected by the favourable economic conditions of UK. As a
result of this, the annual turnover reported in the year 2015 was around 6 billion
pounds which is almost equal to the 14% of the total annual business turnover of UK.
The rate of employment provided by these small and micro business also adds to the
economic development of the country. If we include both men and women employed
by these businesses then around 28 million people got hired by these businesses.
Thus, on the basis of this the impact on the local, regional as well as national
economic development can be described as follows:

 The local economy gets the impact as small businesses provide employment to
the local people and also brings creativity as well as innovation to the local
people (Brown, n.d.).
 The micro businesses as well as small businesses also leads to the regional
development of the country as they provide employment and hence contributes in
the reduction of the poverty from the region.

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 They also have an impact on the national development of the country as the
taxes collected from small businesses gets utilized for the infrastructure
maintenance, schools, hospitals of the country by the government (Hardoon,
2015).

P4: Building on the information you provided for P3, you must explain the
importance that small businesses and business start-ups on the growth of the
social economy.
Small business and business start-ups are the major source of income for the people
of the UK and provide employment opportunities to the major population of the
country and hence contributes in the economic development of the country. In
addition to this, they also serve the growth of the social economy. Small businesses
and business start-ups are responsible for the major portion of the innovativeness
and creativity in the society. Small businesses provides employment to those who do
not have the ability to get hired by large companies and hence adds to the poverty
reduction in the country. It helps in the social development by providing financial
independence to women as well as youngsters. The small businesses always brings
innovation that helps in adding value to the environment and society. Innovation and
creativity leads to competition which in turn leads to the quality in the services
provided by the organizations. In addition to all this, small businesses also provides
major services to various large organizations such as advices for legal matters,
handling accounts etc. It provides employment which in turn improves the per capita
income and hence the living standards of the people of UK. Hence, the growth of the
small businesses and businesses start-ups are responsible for the social as well as
the economic development of the UK (Kola, 2014).

M2:

The small and medium businesses are the major source drivers of the economy of
UK as they employ almost 16 million people of UK through their businesses. If we
talk about the total workforce employed by the small and medium size businesses,
then it is almost 65% of the total working population of the country. Thus, the small
and medium businesses generate almost 49% of the total turnover of UK which

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accounts for almost 2 billion pounds. Thus they adds to the economic development
of the country by providing employment opportunities to a major part of the
population of UK. The taxes collected from the businesses of small and medium size
enterprises adds to the economic development of the country. In addition to this,
they also leads to the social development by bringing in innovation and creativity and
raising the standard of living of the people of UK (Hardoon, 2015).

Apart from small and medium businesses, large businesses are also responsible for
the economic development of the country as they provide employment opportunities
to the national population and also hires people on the international level as they
operates on large scale and invests huge amounts on the research and development
work. They helps in reducing poverty by providing huge salaries.

D1:

If we talk about the scope, then there is a huge scope for the growth and success of
the entrepreneurial ventures in UK. The economic and political situations of UK are
just perfect for the growth of the entrepreneurial ventures. This is the reason behind
UK being on the fourth rank after US, Canada and Australia respectively in terms of
entrepreneurial countries. Entrepreneurial ventures helps in reducing poverty from
country and also adds to the per capita income by providing huge employment and
therefore the government of UK always encourages entrepreneurial ventures as they
are the major source of income for the people of UK. Thus, the growth as well as
scope of the entrepreneurial ventures in UK can be regarded as high. The manpower
and educated workforce brings creativity and innovation which improves the scope
for the growth of the entrepreneurial venture in UK (Myers, 2014).

D2:

The following is the impact of the small business enterprises on the local, regional as
well as the national economy of UK:

Local Level: On local level, the SME’s provide employment and adds to the
economic development of the country. It also introduces innovation and creativity in
the society and adds value to it (YesGrowth, 2014).

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Regional level: SME’s brings competition in market by introducing quality services
and improved services leads to the high annual turnover which helps in the regional
development.

National Level: The taxes collected and revenue generated by SME’s helps in the
economic development and also gets utilized for the welfare of the people of the
country by the government. Thus, they adds to the national development as well.

Conclusion:

It can be seen from the above report that the main reason why government of UK is
in favour of small business start-ups is that they adds to the economic as well as the
social development of the country.

Part 2
Introduction:

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In the following report, the main focus will be on the various characteristics as well as
the personality traits of the entrepreneurs which makes them successful and their
mind-set.

P5: Determine what makes a successful entrepreneur. You could consider

examples of successful entrepreneurs and determine the characteristic traits and
skills they possess. Similarly, you could explore whether entrepreneurs are born
or made and whether entrepreneurship skills can be learned over time.
Successful businessmen have many things in common but there are generally some
characteristic traits and skills that makes the entrepreneurs different from the
common business men. The major and most important difference ids the passion for
work and desire to bring innovation and creativity in the market. Thus, on the basis of
this, the entrepreneur’s characteristics and skills are as follows:

M3:

Passion and Desire: Passion is the most important factor behind the success of the
entrepreneurs. His passion for his work keeps him motivated and make them try new
and different things throughout their lifetime.

Risk Taking ability: Being an entrepreneur involves high risk of doing business and
uncertain circumstances. Therefore, entrepreneurs needs to take risks with respect
to their health, wealth and time and therefore should be capable of taking best
decisions according to the situation.

Clear Vision and Goal: All entrepreneurs possess one general characteristic of
seeing the future. Therefore, they have the ability to challenge the market and mark
a change in the world (Mindtools, 2018).

Flexibility: In order to get successful, an entrepreneur needs to adapt himself

according to the situations and create ideas according to the changing requirements
and needs.

Innovators: Entrepreneurs are passionate about their work and therefore

continuously thrive to bring innovation in the world by bringing new ideas. They
believe in improving the existing services and products to make them even better so
as to bring change in the world.

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Money Management Skills: Entrepreneurs generally work by taking various kinds
of risks including money. Therefore, they needs to make wise decisions regarding
money and should possess effective money management skills (Mindtools, 2018).

Exit Strategy: The entrepreneurial ventures not always results in the success and
therefore entrepreneurs are always prepared for the worst outcome as their future is
not certain. They need to call it quits when the situation demands and start working
on other creative ideas (Cherry, 2017).

D3:

Each entrepreneur is different in his or her own way and therefore possess some
similar and different characteristics as well as skills and mind-set. The examples of
few are as follows:

Jack Ma is one of the most successful entrepreneur. He used to follow his mind-set
i.e. Keep control of Vision. He founded the trading commerce website “Alibaba”.
However, in its initial years, the site did not get the success but due to his strong
vision and mind-set, the site got huge success after few years (Hessinger, 2015).

Another perfect example of successful entrepreneur is Bill Gates. The reason behind
his huge success is his characteristics. His ability to see future made him a
millionaire. Apart from this, he used to possess competitive nature and time and
money management skills. His passion for his work, risk taking abilities and
confidence in his ideas made him a highly successful entrepreneur (Wason, 2017).

P6: Assess how aspects of the entrepreneurial personality reflect entrepreneurial

motivation and mind-set. You may wish to consider how personality is shaped by
family upbringing, lifestyle, cultural differences and personal motivation and
drivers amongst other factors.
There is a correlation between entrepreneurial personality as well as the motivation
and mind-set of entrepreneurs. The personality of the entrepreneurs is the result of
their upbringing and generally starts developing from childhood but other traits such
as mind-set and motivation gets influenced by the environment in which the

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upbringing takes place. Entrepreneurs have different personality traits and
characteristics that distinguishes them from others and makes them successful.
They work for their passion and not for money. Their motive is to bring change in the
world by doing things in the different manner so as to result in innovation
(Schumpeter, et.al, 2012). The personality traits that have an impact on the
motivation as well as the mind-set of entrepreneurs are described below:

Extravert: The entrepreneurs needs to be extravert as it is a very important

characteristic that must be possessed by entrepreneurs in order to be successful. It
is the ability to get your work done at any cost such as getting loans approved by
bank etc. (Hessinger, 2015).

Agreeableness: Another important characteristic trait that must be possessed by a

successful entrepreneur is the agreeableness which is the attitude of the individual
towards the fellow employees. Entrepreneurs having helpful and supportive nature
generally have strong relations with their employees.

Neuroticism: An entrepreneur needs not to possess this characteristic as this leads

to viewings things in a negative manner and therefore results in depression. On the
contrary, an entrepreneurs needs to work with a peaceful mind and think positive in
order to get successful.

Openness: Openness is an important personality trait that must be possessed by an

individual in order to become successful entrepreneur. Therefore, entrepreneurs
needs to be creative, imaginative as well as open-minded.

Conscientiousness: This particular characteristic trait refers to the ability to work

peacefully even under stressful circumstances which is very important in order to
become successful entrepreneur (Hessinger, 2015).

P7. Examine, using relevant examples, how background and experience can
hinder or foster entrepreneurship.
M4:

The entrepreneurial mind-set as well as the skills are greatly influenced by their
background and their past life experiences. Each entrepreneur have distinguish
personality and differs in the way they thinks and do things and manage their
businesses. In fact, they even takes the decisions in different ways according to their

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way of thinking. This is the outcome of their upbringing and background and their
past life experiences which they have gained throughout their life. It is the
background, culture and education imparted to a person which makes his personality
and his attitudes. Accordingly, the skills are learnt by the person. The characteristics
as well as the skills of an individual are greatly influenced by the environment where
upbringing takes place as well as the education. They play a major role in shaping
the personality of an individual. Entrepreneurs, needs to possess knowledge which
leads to innovation and creativity and that knowledge is the result of life experience
and education given to the individual. However, innovativeness and creative thinking
are inherited in an individual since childhood as it is in their genes. The confidence
and risk taking abilities required in order to become successful are the result of the
past experiences gained in life (Daley, 2013)

One of the best example which can be considered here is that of Richard Branson.
He was a very successful entrepreneur. His risk taking abilities and his confident
nature made him a successful and this was the result of his upbringing. He became
successful as his past experiences had taught him how to handle difficult situations
and accept the opportunities and every coming challenge in life (Kimm, 2015).

D4:

It is a matter of fact that the past experiences and background have an influence on
the personality of the entrepreneurs but there are certain characteristic traits that are
negative which hinders the growth of entrepreneurs. One of them is multitasking.
Multitasking sometimes leads to failure as entrepreneurs needs to focus their mind
on one particular task at one time to become successful. In addition to this, always
wanting to be the perfectionist also hinders growth and sometimes leads to failure as
well. Sometimes, the entrepreneurs get sudden and huge success that makes them
crazy as well as blind and they fail to see others than themselves. One such person
was Tony Hayward, CEO of BP, and u successful entrepreneur who could not
handle his success and become a failure later on (Zwilling, 2013).

Conclusion:

The report has discussed the various personality traits of an entrepreneur and have
also discussed how personality as well as mind-set of entrepreneurs gets affected by
background and past experiences.

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Conclusion:
The above assignment clearly shows that the education, family, past experiences as
well as culture plays a major role in shaping the personality of an individual However,
it is difficult to say that whether entrepreneurs are born or education makes them
what they are. But it can be very well said, that while characteristics like
imaginativeness and creativity are inherited since birth in an individual, his
personality and attitude are the outcomes of his past experiences, education and

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family background. The various personality traits have been discussed in the above
assignment and the factors that shape them have also been discussed in detail.

References:
 Kirzner, I.M., 2015. Competition and Entrepreneurship, University of Chicago
Press
 Carter, S., & Evans, J.D., 2012. Enterprise and Small Business: Principles,
Practice and Policy. Pearson, London.
 Burns, P., 2012. Entrepreneurship and Small business. Palgrave MacMillan.

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 Storey, D.J., 2016. Understanding the Small Business Sector. Routledge
Publication.
 Brown, J.M., n.d., How important are small business to local economies,
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businesses-local-economies-5251.html [Accessed: 10 October 2018]
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 Daley, J., 2013. Are Entrepreneurs Born or Made? [Online], Available at:
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[Accessed 11 October 2018]
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