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Entrepreneurship and Small Business Management

University: Blackburn College

  • Unit No: 2
  • Level: Ph.D./Doctorate
  • Pages: 22 / Words 5484
  • Paper Type: Dissertation
  • Course Code: ENB218
  • Downloads: 10876

Table of Content

  1. Introduction
Question :

This sample will let you know about

  • Different types of entrepreneurship ventures and their relationship with typology
  • Similarities and differences between entrepreneurial ventures
  • Characteristics, traits and skills of successful entrepreneurs
Answer :
Organization Selected : N/A


Entrepreneur is the person who takes risks to establish a new venture with the motive to achieve profits. The person performs its operations individually or in partnership in order to owns majority of shares. An entrepreneur takes all the decisions on its own starting from establishing the corporation to make it profitable (Alsos, Carter and Ljunggren, 2011). Entrepreneurship signifies the person's capacity to develop and organise business activities to attain ultimate profit by eliminating all the risks associated with the business activities regarding political, social, economic and environmental factors emerged in establishing and running the business. Entrepreneurs are the one who have the special attribute to take risk and emerge in the competitive world as the innovator and successor. Bill Gates is the best example of the Entrepreneur who has made computers available to everyone at home. In the present report, various entrepreneurial ventures have been discussed and their relation to typology of entrepreneurship is also focused. This report also defines various similarities and differences between the signified entrepreneurial ventures and impact on the economy of UK. This report also gives detail scenario of how these start up contribute to the social growth of the economy (Awogbenle and Iwuamadi, 2010).


P1 Different types of entrepreneurship ventures and their relationship with typology

A venture is established by an individual so that they can attain their specified goals in more effective manner. An entrepreneur establishes its business so that financial growth can be improved. Entrepreneurship defines the capacity of the individual or group of individuals to assume, organise and manage the risk to achieve ultimate profitable goals by eliminating all possible barriers. An individual can adopt innovation and creative skills and sustain in the long term in global competitive world.

It can be also defined as the process to design, launch and operate the business enterprise as start-up by taking into account various risks associated with the business environment in which it operates. These risks could be in the form of lack of finance, investment, infrastructure, experience etc. The entrepreneur needs to overcome all its threats and weaknesses and utilize its strengths and opportunities to start up its new business enterprise and succeed in its desire goals. There are many types of entrepreneurship ventures which are as follows:

  • Small Business Ventures: These ventures are mainly independently owned and establish with the motive of sustaining in long term. Here, entrepreneurs operate own business by hiring the local workers and investing capital through banks, family or friends or personal funds (Barringer, 2012). This includes various ventures like grocery stores, retail stores, restaurants, hairdressers, travel agent's plumbers and electricians etc. The main aim of such enterprises is to foster its family members with the basic needs i.e. food, clothing and shelter. They do not have the aim to emerge as new industry in the market with billions of capitals.
  • Scalable start-up ventures: The scalable ventures are the ventures established by the entrepreneurs who are well educated and experienced to covert the opportunities present in the market to the profitable establishment. He had the capability to gather all available resources and lead the company to grow rapidly and attain the special position in the market. Thus, scalable organisation is those which have long term targets to attain wealth which can make direct impact on the market. These ventures hire the specialists which could lead the company by developing various innovative products and services and enhance the sales rapidly and are capable of building and developing the infrastructure to facilitate the growth. These ventures are mainly funded by the institutional equity investors who are very confident about the project business research made by the entrepreneur thus it can generate sufficient cash to sustain and reach its scalable objectives (Bosma, and Levie, 2010).
  • Large Company Venture: Large company ventures are the ventures with worth of about 1500 billion dollars thus, these ventures invest high capital to sustain in the global competitive markets as these companies are well established brands which require continuous research and innovative developments by keeping in mind the changes and preferences of the potential customers. These ventures need to have close eye on the threats to existing business and find as well as implement the effective ways to enter new markets without exposing the company to excessive risks.
  • Social Venture: It is that type of entrepreneurship which involves focusing on creating new products and services that are responsible to solve the issues of society and related issues. Their main objective is to make the world a better place to live (Bruton, Ahlstrom, and Li, 2010).
  • Female entrepreneur: Now a days, female entrepreneurs are the one who start their own business by taking some financial help. In this manner, they will be able to make their more profitable organization.
  • Serial entrepreneur: In this kind of entrepreneurship, an individual comes with new ideas and innovative thinking. They may perform various business activities at the same time in order to achieve profits.

These different ventures are related to the entrepreneurial typology and some of these are as follows:

  • Accomplished entrepreneur: This type of business owner follows all the stages and activities so that they can achieve their goals. This is related to the scalable ventures where they are more focused on the expectations of different service users. For example, Bill gates offer the products to their customers as per their choice and requirement.
  • Determined entrepreneur: These kind of entrepreneurs are more determined for their goals and objectives. For example, social ventures are more focused or determined for the operations that they perform in the business environment.
  • Research entrepreneur: There are some of the people who conduct a survey at marketplace in order to identify the requirements of their customers. For example, when the business owner starts their own business than they can use these kind of approaches.

P2 Similarities and differences between entrepreneurial ventures

Every entrepreneurial venture differs as per the goals they need to attain and the working and thinking capabilities of its owners. Every business venture is established to attain the profit and sustain in the market in the long run. But every entrepreneurial venture has some similarities and differences which are as follows:

Goals: Every entrepreneur has the common goal to achieve the profits but small business ventures are the ventures like grocery stores, restaurants, plumbers etc whose major objective is to sustain in the market for long run to foster its family members rather than emerging as new industry in the market. Scalable business ventures are the ventures which has goal to enhance its share rapidly in the market to emerge as competitor for the others already existing by investing high in the research through specialised employees in the venture. Large company are the branded establishments in the market, thus require high investment to innovate new products and services and protect the enterprise from threat of emerging scalable ventures to emerge as its new competitor. . Social ventures are built up to resolve various social issues in spite of being profit oriented. These ventures work for the betterment of the society (Carraher, and Paridon, 2015).

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Mindset: Every entrepreneurial venture has common mindset to sustain in the market for the long run except social ventures who work for the social welfare and take effective steps by keeping in mind the social cause and its overall effectiveness. Whereas, Small business ventures are those ventures whose entrepreneurs have the mind set with the basic objective to foster its family members They do not make efforts to flourish in the market to open new business or industry. Thus, their mindset is restricted to fulfil their basic and esteem needs of the family. Scalable Venture's entrepreneurs have the mindset to grow and flourish as the new market changer by taking effective steps to develop new and innovative steps to gain competitive advantage over the other competitors already existing in the market. Large company ventures have the mind set to have close eye on threats to existing business and find as well as implement the effective ways to enter new markets without exposing the company to the excessive risks.

Marketing Communication: Small business ventures mainly depends on the oral marketing rather than the electronic and printing marketing unless he is opening new ventures in new market, Whereas Scalable ventures spend high on the marketing strategies and its implementation to attain its objective to increase its share in the market (Carsrud, and Brännback, 2011). It is the enterprise that makes best use of different types of marketing components which includes electronic, printing and even social media. Large company ventures are the ventures that spend high on the research of the opportunities exist in the market and grab it as quickly as possible to restrict the scalable ventures to enter into the market and thus; it requires high marketing communication and need to invest high in this regard.

Similarities between small business and social ventures:

Both the types of ventures are operated by small entrepreneurs. They have the skills and capabilities to design and operate a business firm. They invest short amount of capital in initial stage. Entrepreneurs have adopted risk to gain profit as a reward. The aim of social and business venture is to start its own business with a primary motive to achieve the goals and objectives of the firm. Entrepreneurs are considered as the owner of the firm.



Both male and female entrepreneurs start their business with an innovative idea so that financial wealth can be increased.

Male entrepreneur takes the funds from different financial institutes but a female can start their business from her savings. For example, Wait take some capital from his grandmother in order to start gateway. On the other hand, Blakely start her business by using the own savings.

Social and lifestyle entrepreneurs both perform their activities so that they can fulfil the needs and demands of the people.

The difference between these entrepreneurs is the direction in which they lead their business. For example, social business owner more focused on the poverty of the nation and on the other hand, lifestyle ventures perform their operations so that their profits can be increased.

Lifestyle and social entrepreneurs perform their activities so that their overall market share can be increased.

Lifestyle entrepreneurs offer more innovative or quality products to their customers. But, Social entrepreneur offer valuable services to end users so that welfare can be improved.


P3 Impact of the micro and small business enterprises on the economy

Small business enterprises are the enterprises that are mostly owned by the individual or group of individuals with capital less than 1.5 million including machinery, equipment, working capital, etc. this could be explain as follows:









<$250 000

<$250 000




$250 000-$1 500 000 (excluding real estate)

$250000-$5 000 000

Source: CSO MSME Classification

Small business enterprises do not have any intention to dominate the market in which it operates. Thus, they are not engaged in any new and innovative practises and need stable and less aggressive approach to run the business, whereas micro enterprises have even less employees and less capital than in small business ventures (Chittithaworn and 2011).

There are different types of businesses which perform their operations in order to fulfil the objectives. These are as follows:

  • Private company: The main aim of private firm is to increase the profitability and productivity level by accomplishing the specified goals.
  • Public company: These companies share their stocks in the market so that their growth can be improved. These are the large enterprises which perform their operations in order to fulfil the requirements of different customers.
  • Sole proprietorship: In this, an individual starts their own business so that high profits and revenues can be achieved. The business owner is responsible for the risks and losses that are arise while performing the operations.
  • Partnership: In this type, two or more than two people start business in order to gain the financial profits. All partners are liable for the benefits and revenues that are arise from the different operations.

Thus, these enterprises do not contribute high in the economic growth but they too have direct and indirect impact on the economy of UK which could be explained as follows:

Direct Impact:

Support in the economic growth: Small business enterprises are having share of £1.8 trillion which is 47% of the private sector in the year 2016 thus, these types of business enterprises supports the economic growth and are owned and run by the private entrepreneurs. They are having their own sources of the funds.

  • Increase in the employment rates: Small business enterprises employees large number local workers to attain the profitable objectives especially youth thus increase the employment opportunities and reduces unemployment rates in the country. It is well known said that each drop of water is essential and it can even fill the ocean thus every small business enterprise which contributes about 47% in the economy gives employment to the large number of the population (Dacin, Dacin, and Matear, 2010). This increment has made a vast difference from the year1971 to 2016 i.e. the rate has been grown up to 74.6% which is generally very high from the year 1971.

Indirect Impact:

  • Support in the big structured organisation: None of the large organisation can be developed and work effectively without the support of the small business enterprises. These act as supplementary organisations which work for them and ensures effective supplies to the big organisation. Large organisation does not have the capability to manufacture all the essential components to be used by them, thus need to depend upon various small business enterprises for the same to produce their ultimate products and services to be delivered to potential customers.
  • Change in the Business ideas: Various small business enterprises have specialised and efficient entrepreneurs with creative and innovative ideas but due to lack of finance and experience they scare of taking new step in the market. Thus, these enterprises with the help of various capital ventures who like to invest in the new enterprises having new ideas explore and innovate them to make changes in the market. It helps to the other relevant organisations to make their business activities accordingly (Defourny, and Nyssens, 2010).

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So, in this manner the small and medium size enterprises impact the overall economy of the country. When an entrepreneur starts their business then through this employment rate can be increased and due to which spending level of the people can be improved.

Through this, the overall GDP of the country can be increased which lead them towards success. UK will be able to attract number of entrepreneurs so that their overall growth can be improved.

P4 Importance of the small business and business start up to grow in social economy

Social economy is the economy which lies between public and private sector which includes cooperatives, non-profit organisations, social enterprises and charities. When brexit happened in the country then due to this the overall economy of UK is get declined. In this, United Kingdom left the European union. So, after this small business and new start-ups contribute to the overall economy and their growth is get improved.

Small businesses perform their operations at small scale so that they will not be able to achieve more profits as compare to other large enterprises. On the other hand, an entrepreneur starts their own business with some new and innovative ideas. So, they may help the nation in improving their overall economy.

Thus, this type of economy has both the objectives to sustain in the market for long run and also keep social objectives in mind i.e. ensures the social welfare of the society in which operates. Following are the basic significance of the small enterprise which directly affects the social economy:

  • Job Creator: Small business organisations provides large number of jobs to the unemployed people. These organisations are mainly job oriented rather than capital oriented. Large companies have some standard to recruit the employees and thus they recruit the specified employees whereas small business enterprise recruit the employees which supports the economy GDP by increasing the per capita income of every person of the country. Most of the organisations are using their own contact to recruit peoples according to the need of the business. So the entrepreneurs are using their own contact in the recruitment and selection of the candidates and thus has the direct impact on the social economy (Dennis Jr, 2011).
  • Innovative Thinking: Various small business enterprises have specialised and efficient entrepreneurs with creative and innovative ideas. These innovative minds and thoughts enhance the competitive advantage of the enterprise over the other enterprises and in return it gives various choices to the customers to choose the healthy products at right place and right price at every corner of the society and thus enhances the overall life style of the society. Thus, innovative thinking also has direct impact on the social economy thus, this help the people to increase their level of thinking according to the enterprises. These organisations can spread their innovative ideas in the society to enhance their level of thinking and point of view for different things.
  • Providing Skills: Large organisations are usually branded companies which has their own goodwill regarding their products and services to be rendered to the potential customers so they are very particular about the quality of the product and its employees to maintain the standard attained by them in long period thus they prefer specialise and skilled employees rather than unskilled labour. Whereas, small business enterprises and new start-ups explore these unskilled labourers as skilled labourers by giving them proper training and experience which ultimately increases the society's life style and skills of every person in the country (Drucker, 2014).
  • Financial Supporter: Small business enterprises are the enterprises, started its journey with the less amount and strive hard to sustain in the market for long run, thus these enterprisers are well known of the importance of finance to explore the creative and innovative entrepreneurs thus, they always stand as the supporter of the new ideas and their implementation by giving them financial assistance as much as possible. These business enterprises are having direct connections with their employees to provide them financial support in their critical financial conditions.

When economic growth of UK is get enhanced then through this poverty can be reduced in the nation and that will lead towards the improved living standard of people. When an entrepreneur establishes their business then employment can get increased and wealth can be improved. The overall infrastructure of the country can be enhanced that will attract more entrepreneurs towards their operations.

When government collect tax from the people then they can get more revenues which will help them in reducing the poverty. When UK perform foreign exchange then through this their relations can be improved with other countries. So, in this manner small business enterprises and start-ups play a vital role in improving the social economy.


P5 Characteristics, traits and skills of successful entrepreneurs

Entrepreneurs is the person who take various risks to establish a new venture with the motive to achieve profits. He is usually a sole proprietor or the partner who owns majority of shares in the corporation and thus takes all decisions on its own starting from establishing the corporation to make it profitable. He is the person who has the capability to organise and manage all the risks associated with the business and thus prefers opening new small venture than working as the employee somewhere. These entrepreneurs are risk taker rather than risk eliminator who are confident of their skills, attributes and business plans to succeed. For example, Mark Zuckerberg, who has given the famous application namely Facebook which have connected people across the world and has given the platform to exchange the photos, videos and socially interact with the people far away from us due to jobs or other reasons (Durst, and Runar Edvardsson, 2012). This keeps every person in close contact all over the world and can even share our views on social issues emerging nearby. The other well-known example is Bill Gates who have made the computers available at home by launching Microsoft company. The main characteristics of these entrepreneurs are as follows:

  • Innovative: Entrepreneurs have the special skill to innovate new ideas to enhance the productivity of the existing business or establish new product in new market. They work on the well-known saying that “Grab the opportunities and success is yours”, thus the entrepreneurs are well aware of the opportunities and are confident about their strengths that could be easily converted into profitable concern through its innovative ideas.
  • Respect: Entrepreneurs are one who do not complaints or make any excuses regarding the efficiency and productivity of the industry or sector in which it operates, but have due respect for its industry. He knows every sector has its own history and background thus rather than finding problems he tries to find out the innovative solutions of the problems and enhance the efficiency of the industry as a whole. He identifies the core strengths, recognise the opportunities and take effective steps to avoid and remove the old failures (Ebert, and 2014).
  • Perseverance: Entrepreneurs have the special attribute to face and overcome with the uncertainties in the business in which it operates. They do not afraid of handling these uncertainties but have the capability to find new opportunities from such uncertainties and convert them into the competitive advantage of the enterprise. Thus, their main motive is to walk steadily and diligently until they do not reach their ultimate goal.

An entrepreneur and business manager perform their operations in more effective manner. They both have different skills and traits which makes them unique. The difference between manager and entrepreneurs are as follows:

  • Manager is the one who manage overall activities that performed at the workplace. On the other hand, an entrepreneur is the owner of business and he perform operations in order to fulfil the requirements of their customers.
  • The business owner is liable to get the profits and manager is liable to get the bonus from his boss.
  • An entrepreneur is the owner of his own business and manager is the employee of the organization.

These traits and activities make an entrepreneur unique from other employees or manager.

P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and mind-set.

An entrepreneur has ability to operate in the risky and dynamic environment and convert such risk into the opportunity to enhance the position of the enterprise and increase its market share. They have many characteristics which make them unique and different in the world among all the other entrepreneurs. These characteristics and their success stories motivate and inspire others to be successful entrepreneurs like Mark Zuckerberg and Bill Gates. Mark Zuckerberg and Bill gates are one of the most successful entrepreneurs which have inspired youths by their skills and characteristics. Bill Gates is the person who focusses on the self-motivation and open mind- ness to succeed in the business. According to him one should have self confidence that he can do the task in a best efficient manner than anybody else but it should not be turned into overconfidence (Fayolle, 2013).

They have the opinion that market is full of threats, opportunities, strengths and weaknesses and this the man who himself decides what he wants to choose, the glass which is half empty or the glass which is half full. Similarly, every human being too has some weaknesses and strengths and it's on him on what he focusses. Another well-known entrepreneur is Mark Zuckerberg who have innovated the new application to bring the whole world closer, where everyone can share their photos, videos and views to be, in touch with all relatives and friends far away from us. He has the basic skill to create the passion and spirit in the minds of entrepreneur to continue till the task has completely achieved. He is a man full of innovation, technical and determination which makes him different from others. He has the capability which have inspired many people who are thinking to launch any application in the field of technology. Thus these entrepreneurs have motivated the youth to never give up unless the ultimate goal is not achieved and all the failures and risks do not get eliminated. They have created a passion and enthusiasm about entrepreneurship among people (George and Bock, 2011).

The personality of an entrepreneur can be identified on the basis of OCEAN factors. Some of these are as follows:

  • Openness: People who have this characteristic are more innovative and creative. They came with the new ideas and thinking so that they can establish their business in more effective manner.
  • Conscientiousness: An entrepreneur who have this trait are more goal oriented and they perform their operations so that objectives can be accomplished. For example, Mark Zuckerberg has this characteristic and through this they will be able to perform well.
  • Extraversion: This characteristic makes an individual unique from other entrepreneurs and business owners. These people can increase their social circle which is more beneficial for them in achieving the goals.
  • Agreeableness: This personality trait is related to the trust, affection and kindness of an individual. These people are more concern about others that how they can fulfil the demands of the different service users.
  • Neuroticism: This is related to the stress level of an entrepreneur. If an individual is more stressed, then they will not be able to perform their operations in more effective manner.


P7 Examine how background and experience can hinder or foster entrepreneurship

Entrepreneur is a person who is going to established their own business so that they can make their profits. In order to generate more revenues, they have to take some risks that can be related to the finance and other investment. Sometime, the business of an entrepreneur is get affected due to their background and experience. An entrepreneur has to think critically and beyond their background so that their performance can be improved in an efficient manner. Along with this, an entrepreneurship is get affected or hindered due to some barriers that can be related to the technology, cost, innovation, limited number of ventures, customers and so on.

There are some people whose financial history is not good then they will think about the people who will not be able to afford luxury products. Along with this, these creative thinkers will provide an opportunity to some people who want to start their own business. So these kinds of entrepreneurs are more positive thinker and they will work in order to increase the welfare in the society. For example, Bill gates is an entrepreneur who also think positively in every situation and self-motivated. He is a legend in the field of entrepreneurship but he also faces many barriers in their career. Apart from these, educational background and academic skills of an individual can also affect the performance of the entrepreneur. They use practical examples in order to establish their own business so that their overall growth and position can be improved. Along with the positive thinker, there are some people who can't think in positive manner due to their background and experience. They are only focused on the revenues and their own welfare so that they can perform well than any other small business enterprise (Herrington and 2010).

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Experience of an entrepreneur is also play an important role in establishing the business. If an individual is not experienced, then they will not be able to perform their operations in well manner and that will lead towards the failure. The person has to think in positive manner if they have a bad experience in their past. Sometimes, these bad experiences can also affect the performance of the small business enterprise. For example, Mark Zuckerberg the owner of Facebook proved that many years of experience is not required in order to start a business. He is a great entrepreneur who never left the hope in getting the success in the business environment. His main aim is to connect the world so that everyone will be able to know about each other. Apart from these, the performance of an entrepreneur is also get affected due to their experiences and their background. Entrepreneur should be creative in some situation so that bad experiences can be converted into good and they will be able to achieve their objectives. Further, the success of an individual is based on their core competencies. If they are more competent and they can generate more revenues (Jones, and Rowley, 2011).


The above concluded report having detail researches on the entrepreneurship in the UK and how it is having influence on the economy. It is essential for the entrepreneurs to have some experience in their fields to make better decisions in the different sectors like; finance, management, marketing etc. Characteristics and competencies increase the efficiencies of the entrepreneur. Perseverance, innovation and respect attributes helps them to take better work related decisions. Most of the entrepreneurs starts with the small business enterprises which helps to them to implement their business ideas in actuality. Random changes in the small business can helps them to increase the productivity according to the demands from stakeholders. Small business enterprises are essential for the economic development and as well as to reduce the errors of its.


  • Alsos, G.A., Carter, S. and Ljunggren, E. eds., 2011.The handbook of research on entrepreneurship in agriculture and rural development. Edward Elgar Publishing.
  • Awogbenle, A.C. and Iwuamadi, K.C., 2010. Youth unemployment: Entrepreneurship development programme as an intervention mechanism.African Journal of Business Management.4(6). p.831.
  • Barringer, B., 2012. Entrepreneurship: Successfully Launching New Ventures, (2012).
  • Bosma, N.S. and Levie, J., 2010. Global Entrepreneurship Monitor 2009 Executive Report.
  • Bruton, G.D., Ahlstrom, D. and Li, H.L., 2010. Institutional theory and entrepreneurship: where are we now and where do we need to move in the future?. Entrepreneurship theory and practice. 34(3). pp.421-440.
  • Carraher, S.M. and Paridon, T.J., 2015. Entrepreneurship journal rankings across the discipline.Journal of Small Business Strategy.19(2). pp.89-98.
  • Carsrud, A. and Brännback, M., 2011. Entrepreneurial motivations: what do we still need to know?.Journal of Small Business Management.49(1). pp.9-26.

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