Management of Small Businesses and Entrepreneurship

Different types of entrepreneurial ventures and how they relate to the typology of entrepreneurship

Entrepreneurship can be considered as a process in which an entrepreneur emphasises on rendering or providing advisory services to new ventures and middle stage companies. The role of Entrepreneurial ventures changes according to different phase of organisation. It is about learning or embracing how to deal with success, failure and risky situations. The term Entrepreneurship venture focuses on start ups, large scale industries , public and corporate sector. It will help employees to sharpen their knowledge,skill quality and abilities to identify opportunity for small scale industries, as well as resolve their difficulty in extremely complicated situations (Brush and et. al., 2019). In assistance of this, the main purpose is to increase sales and profitability of the entrepreneurship for the future growth of business. They generally convert new or innovative ideas into reality that results in contribution towards growth or development of the company. There are four types of Entrepreneurial ventures which are mentioned below -

• Small Business Entrepreneurship - Herein, It includes plumbers, food market, hairstylist, consultants and travel agents who run their personal enterprise as well as hire family members or general employees for growth of business organisations (Burns, 2016). The respective company, CafePod is an example of a small business entrepreneurial venture.
• Large Business Entrepreneurship - Large companies are those who invests large capital in their business in order to attracts large number of customers. Such organisations have enough resources to move into another country for future growth or success of business organisation.
• Social Enterprises - These companies emphasised on helping individual and works for welfare and benefit of the society. It focuses on improving standard of living of people in the society. It is considered as a non profit company whose main purpose is to manufacture or deliver product to serve the social needs or wants as well as their problems.
• Scalable start up Entrepreneurship - Hereby,From starting a company knows that their vision or mission could change the universe. The main focus of this company is to attract best financial investor for brightest future of the company.

Typologies of Entrepreneurship

From the above mentioned various types of entrepreneurship business, the identification of typologies assists business can become more attractive. There are three types of typologies which are given below:

• Growth firms - In this category, the main purpose is to maximise their revenues and profit for growth or success of company. The Entrepreneur identifies those new or innovative ideas that helps in enhancing the profitability of business organisation. In addition to this, the focus of company is to effectively satisfy needs or wants of consumer (DeTienne and Wennberg, 2016). The main purpose of these firms is to earn more revenue or profit than industrial average over a period of time. It enhancing scale of production thus it helps in earning more and more revenue for future growth or development of business organisation.
• Lifestyle Enterprises - This enterprise emphasised on offering various job opportunities to individuals thus it results in enhancing income or revenue of people. The main purpose of this enterprise is to increase status, prestige and standard of living of people as well as change their lifestyle and esteem.
• Survival Firms - Herein, the main purpose of enterprise is survival and maintenance on long term basis. It mainly includes new venture or start up who works for survival as well as enhancing goodwill or image of that company (Devece, Peris-Ortiz and Rueda-Armengot, 2016). In this period the main focus is to make a unique or special image of company in front of customer by satisfying their needs or wants.

Entrepreneurship ventures and typologies are related to each other and result in enhancing future growth or development of company by reducing several problems related to economy such as large scale companies emphasised on long term success or future growth that helps in increasing efficiency of company. Furthermore, Small scale industry focuses on survival or maintenance of business organisation. Moreover, Scalable start up enterprise knows from starting that their vision or mission could change the universe so they emphasised on enhancing lifestyle of individual that results in brightest future of the company.

Similarities and differences between entrepreneurial ventures

Similarities

Differences

Data and statistics to explain how micro and small businesses impact on the economy

A micro business is a small business that usually has a small number of employees (less than 10 people) working for it and play a major role in the development of an economy. These types of businesses are generally formed as a part of either partnership or sole proprietorship. On the other hand, a small business is generally privately owned and is operated in a limited size (Henry, Hill and Leitch, 2017). Most small businesses rely on intensive labour for their functioning and are generally started with the primary aim of fulfilling the needs of customers. Small and micro businesses contribute towards employment generation and overall development of a community which is the reason why government within a country supports such initiatives. For example- CafePod has grown to be the UK's 7^th largest roast and ground coffee brand in a metter of just seven years. Such businesses also bring in innovation and creativity within a country which can be further enhanced to ensure overall development.

From the above graph, it can be concluded that small and medium businesses contribute significantly towards the development of United Kingdom. Also, micro businesses contribute up to 18.9% whereas small and medium business contribute 23.4% and 29.2% respectively

(Hosseininia and Ramezani, 2016). Thus, it can be clearly said that larger small and medium businesses are more likely to trade their businesses internationally as compared to other businesses. Need Assignment Samples?Talk to our Experts!

(Source : STATISTICAL RELEASE, 2016)

The above graph states that United Kingdom has the presence of nearly 99.3% small business with 33% of staff turnover. These business contribute to nearly 48% of employment whereas medium and large businesses account for 12% and 40% employment respectively (Kuckertz and Prochotta, 2018). Thus, United Kingdom has a large presence of small business that contribute towards generating employment in the country (Julien, 2018). Small and medium business have impacted the overall economy of United Kingdom in the way that it supports the survival as well as growth of these businesses (Kuratko and Morris, 2018). To conclude the total employment generated by these businesses increased over the last years to 15.7 million. Thus, the environment in the country is favourable for the survival of small and medium businesses.

Importance of small businesses and business start-ups to the growth of the social economy

Small businesses as well as start ups significantly contribute towards generating employment and the overall development of a country. Their importance to the growth of the social economy is explained below -

• Employment of local workers – small businesses attract talent from local communities and thus stimulate the overall growth of the economy (How Important Are Small Businesses to Local Economies?, 2020). Start ups and small businesses drive overall growth of the economy in small areas. Also, these types of businesses operate locally due to which they have the preference of hiring local people.
• Adapting to changes – Most small businesses have the ability of adapting to changes quickly which is because they are primarily focussed towards fulfilling the needs of customers. As a result of this, many local people are loyal to them.
• Diversity – Small businesses and start ups are more flexible and diverse which means they have more potential as compared to large businesses (Karimi and et.al., 2016). A high diversity within a business means that the country will be able to withstand challenges and tough conditions. Small businesses as well as start ups have people working for them from different backgrounds which makes them important for the growth of the economy.
• Customers receive products quickly – The shops and markets that are nearest to the customers are most preferred by them as they deliver products and other items to the homes of the customers quickly. Thus, small business are important as they are the first options that cater to the needs of the customers and satisfy the same.Customers of CafePod are loyal to the brand and satisfied with the range of products it offers. Thus, the respective company has planned to enhance its product offering by introducing a range of high quality coffee products that are innovative and help the company in attracting more customers.
• Backbone of an economy and Generate Competition – Small businesses and start-ups form the backbone of an economy as they drive growth, open various opportunities for them in the market and provide employment to the local people and also provide new ideas as well as skills, thereby making the marketplace more dynamic (Kellermanns and et. al., 2016).
• Innovation and Opportunities for Women – Small businesses as well as start-ups helps in creating new and innovative ideas that can be implemented in the economy in order to drive its growth. Also, such businesses provide various opportunities for women wherein they can contribute their talent, earn money and thus ensure the growth of the economy. Such businesses are innovative as the customers want to differentiate their products and their delivery.
• Standard of living – Start ups and small businesses are important for the growth of a social economy as they help in levelling up the standards of living of people in a country. And this is done through the introduction as well as implementation of new and innovative ideas that are useful for the customers and help in satisfying their needs and also meet their expectations.
• Contribution towards Government revenue – Small businesses have to pay an increased amount of taxes which can in turn be utilised by the government in the overall development of an economy. Thus small businesses as well as start ups indirectly contribute to the development as well as enhancement of the economy. Thus, small businesses contribute to the overall GDP of the economy of a country significantly.
• Contribution towards Government revenue – Small businesses have to pay an increased amount of taxes which can in turn be utilised by the government in the overall development of an economy (Kuckertz and Prochotta, 2018). Thus small businesses as well as start ups indirectly contribute to the development as well as enhancement of the economy. Thus, small businesses contribute to the overall GDP of the economy of a country significantly.
• Building relationships and Low Overheads – Small businesses know their customers very well and thus maintain a healthy and positive relationship with them. As a result, they have a complete understanding of their needs and wants. Also, since the businesses are operated at a small scale, they have lower overhead costs. This means that the products that are offered to the customers are low in prices.

Thus, small businesses as well as start ups keep the economy of the country strong as the employees of these companies spend their salaries or earnings on purchasing different goods and services at home (Kuratko and Morris, 2018). Also, owners of various businesses invest in their respective communities through taxes that they pay etc. All small businesses and start ups don't always remain small and have a high probability of succeeding and turning into large businesses.

Effect of Brexit on CafePod

Since coffee is traded in US dollars, currency will play a major role in the coffee industry as a whole. The coffee that is now being imported in the UK has become more expensive which has led to CafePod to increase the prices of its products (Coffee after Brexit, 2020). Brexit has led to the creation of an uncertainty around the coffee industry which has in turn led to decline in the confidence of investors, thus CafePod has to put its business plan of growing to UK's number 1 coffee on hold for now.

Characteristics, traits and skills of successful entrepreneurs that differentiate them from other managers

A successful entrepreneur have several traits,skills and characteristics that make them distinguish from other business managers. With these skills and traits they create new or innovative ideas. The characteristics, skills and trait of entrepreneurs such as J.K rowling and Mark Zuckerberg which is mentioned below -

Characteristics and Traits

• Passion - One of the most important characteristics of entrepreneur is being passionate which assists them to work hard regularly in order to achieve goal or objective of the organisation. This makes entrepreneur different from other business manager they give too much time or efforts for future growth of the business. They always keep themselves motivated towards achieving success in their work and not focusing upon unfavourable situations. For instance, J.K. Rowling possess strong mental ability and contribute their time and efforts in order to achieve goals and objectives of the organisation. Another example can be Peter Grainger and Brent Hadfield, two South African friends who shared a mutual love for strong and quality coffee. Their passion led them to buid CafePod, an independent coffee company that today has grown to be the UK's 7^th largest ground and roast coffee brand.
• Hard work and Self confidence - The most important characteristics of an entrepreneur is to have belief in yourself and to work hard regularly for it for future success or growth of the business organisation (Mamabolo, Kerrin and Kele, 2017). For example J.K. Rolling is hard worker and contributes their efforts and time on fulfilling dreams as well as she proved that hard work actually does pay-off. Another example can be Mark Zuckerberg, who have self-confidence and faith to work hard regularly for success of social media websites.
• Open minded – Successful entrepreneurs know that every opportunity is a business opportunity. Thus, they don't miss out any chance of pitching themselves and their business to potential investors whose investment they think will be beneficial for their company. Thus, they have the ability to observe everything around them and focus completely on achieving their goals and objectives.
• Competitive – Most entrepreneurial businesses are set up as a result of the entrepreneur being sure that his/her business idea is competitive and will be successful in the market (Nikolopoulos and Dana, 2016). Thus, when a successful entrepreneur pitches his business to someone, he highlights the success record of his company in order to gain popularity as well as attract potential investors.
• People skills – A successful entrepreneur has strong people as well as communication skills in order to sell his products and services in the market and motivate employees in the company. Such entrepreneurs know how to highlight the benefits of their products to customers.
• Self-motivation and knowing how to take risks – One of the most important traits of successful entrepreneurs in the market is that they don't require any source to motivate themselves. Instead, they drive motivation from within. They know how to push themselves and succeed in the areas they think they need improvement. They also know that it is necessary to take risks sometimes and always playing safe does not guarantee success. They know that opting for calculated risks have more chances of paying off and that this is an important part of being a successful entrepreneur.

Skills

• Leadership - This is one of the most important skill of an entrepreneur which assists them to motivate and persuade others in order to achieve goals and objective of the organisation. J.K Rolling is the supreme role model possess strong leadership quality which motivates and guide persons to work towards future success and growth of the organisation (Palalić, Dana and Ramadani, 2018). Furthermore, Mark Zuckerberg has strong leadership skill that motivates individual for attaining goal of the organisation.
• Innovative thinking - This skill helps an entrepreneur to generate new and innovative ideas and identifying the solutions of various problems in an innovative manner. This skill helps in managing unfavourable situation in order to achieve the goal and objective of the organisation.
• Creativity and Consistency – Entrepreneurs are highly creative and always look out for different ways in which innovative and unique ideas can be brought in and implemented to the products and services of their company (Pato andTeixeira, 2016). This can include interacting with new people or taking a class for personal interest. Also, they are more confident and consistent with their idea of launching a new product or service in the market.
• Time management skills – Successful entrepreneurs carefully plan all the activities and tasks related to the business and make sure that goals and objectives of the business are achieve on time without any delay in the process. Thus, they allocate timelines to various tasks in order to ensure that they are carried out properly.
• Networking – Successful entrepreneurs know how important networking with other people and businesses is and thus they always work towards increasing their network in the market. Networking not only helps in getting access to new business opportunities but also helps in finding right and qualified candidates who can be hired in order to improve the overall productivity as well as efficiency of the business on the whole. As a result, the brand image in the market is enhanced with an increase in the profitability as well.
• Planning, Organising and Decision making - Successful entrepreneurs like Mark Zukerberg have excellent planning and organising skills. They know how to coordinate various activities and tasks that take place in the organisation so that the final goals ad objectives can be achieved effectively. Also, they are highly skilled in making appropriate, prompt and sound decisions in case of a sudden situation.

Assessment of how aspects of the entrepreneurial personality reflect entrepreneurial motivation and mindset

In today's business scenario, it has been observed that entrepreneurs pay they primary attention to serving their customers effectively and efficiently (Schaper, 2016). Thus, the possess various characteristics and traits which help them and their businesses in becoming successful. Entrepreneurs are innovative and possess unique qualities due to which they are able to sustain in the market and also survive competition. The entrepreneurial personalty of a person can be defined as Different entrepreneurs have different personalities that reflect in their motivation as well as mindset (Hosseininia and Ramezani, 2016). In order to understand entrepreneurial personality effectively, Ocean Model has been used which was developed by Hans Eysenck in the 1940s. The model is also known as Five Factor Model and helps in understanding people and their behaviour. The acronym OCEAN stands for five personality traits, namely- Openness, Conscientious, Extraversion, Agreeableness and Neuroticism. The same is described below -

• Openness – This is the initial and the most important trait and people who have this trait are more bold and creative. Common traits to this include originality, imagination, daringness, cleverness , creativity etc. People who like to learn new things and experiences are more open.
• Conscientious – People who fall under this category have a high degree of conscientiousness and also are reliable as well as prompt (SoundararajanJamali and Spence, 2018). Traits of this factor include being thorough, organised as well as methodic.
• Extraversion – Extravert's are highly energetic and love interacting with other people whereas introverts don't like to interact with people much and get their motivation from within. The traits in this factor include being energetic, talkative and being assertive.
• Agreeableness – People who fall under this category are friendly, cooperative as well as compassionate (Big Five personality test traits, 2020). Traits of this factor include being affectionate, kind as well as sympathetic.
• Neuroticism – This factor is sometimes also called as Emotional Stability and thus this factor relates to the emotional stability of a person and the degree to handle negative emotions. People who show high neuroticism are usually moody and tensed and thus show emotional instability as well as negative emotions.

Explain using relevant examples, how background and experience can hinder or foster entrepreneurship

There are a number of factors that can hinder or foster entrepreneurship (Storey, 2016) (Turner and Gianiodis, 2018). The factors can include caste, religion, race etc. One of the major aspects the experience that the individual has had in his past or the environment in which he/she grew up. Personal background and experience of an individual can significantly impact the growth of an entrepreneurial venture and can also be a reason for its decline. The different ways in which background and experience can either hinder or foster entrepreneurship is explained below with the help of examples-

Family Background – Family background can play an essential role and can either hinder the growth or foster entrepreneurship. The family of a person provides moral as well as practical support to a person's decision to start an entrepreneurial business. The family can provide support when it comes to raising funds, for example. The factor can foster the growth of an individual and his decision to start a business or hinder the same by not providing any kind of support and discouraging the idea (Walsh and Cunningham,2016). Children who grow up in a family that runs a business are likely to follow the footsteps. In such a case, the children consider their parents to be role models. Also, children in such families are mentored by their parents as they have knowledge of how a business is run and what are the possible risks as well as challenges associated with it. In this way, the family background of an individual can help foster his/her own entrepreneurial venture.

On the other hand, if an individual from a non-business family background decides to start his/her own business, there is a high probability of the family members not supporting the idea. In such a case, the family members and friends do no provide support to the individual in starting their own business which can result into lack of motivation and confidence within the person. For example – When Mark Zukerberg, the founder to Facebook came up with the idea of starting his own entrepreneurial venture, his family supported him throughout in the form of providing moral as well as financial support initially. The family members ensured that Mark received quality education before he went on with his idea of starting a business. On the other hand, JK Rowling, author of the best selling book series- “Harry Potter” struggled a lot before she started writing her first Harry Potter book. Thus, it can be said that the family background of an individual plays an important role and can either hinder or foster entrepreneurship and the individual should take challenges positively.  Ask for write my assignment from our professional experts!

Experience – Successful entrepreneurs generally have prior experience of either working for an organisation or a business. Having experience provides individuals with ideas that are unique and innovative as to how can the business operations be carried out in an effective way (Wang and Liu, 2016). For example- Peter Grainger and Brent Hadfield did not randomly come up with the idea of starting CafePod, rather they thought that the experience of making coffee at home lacked quality when this idea came into their mind. Experience provides knowledge and various other insights to individuals and enables them to run their business effectively. Having an experience of working in a business previously helps entrepreneurs understand the changes as well as latest trends in their specific area effectively and then formulate strategies that are efficient as well as help the business in being successful. For example – JK Rowling had an experience in writing from a very early age. Even after having experience in writing, the author got rejected a minimum of 12 times if not more.

On the other hand, if a person does not have relevant experience and randomly decides to start his/her business, there are high chances of business getting failed. Lack of experience can cause depression and can lead to anxiety, depression and finally result in demotivation. This can hinder entrepreneurship as the individual will not have any motivation of working towards achieving the goals and objectives of the business and as a result will limit himself. Also, lack of experience means that the individual does not have enough knowledge of the sector or the area in which he/she wants to set up his/her business in (Doern, 2016). A lot of entrepreneurial ventures fail initially, thus if a person has not experienced failure in his/her life, he/she will not be able to take and accept the failure of the business and this can lead to depression. Having business experience in the same or related industry in which the individual wants to start his/her business can be beneficial as it provides an upper hand to him/her as the person will have complete knowledge of how different activities take place within that kind of business. Experience also encourages innovative ideas and helps a business in being successful and gaining a competitive edge over competitors in the industry. If an individual does not possess enough experience and knowledge of how different tasks in the business are carried out, he will have to face a lot of challenges.

CONCLUSION

From the above report, it can be concluded that entrepreneurship is gaining more popularity as compared to other businesses. There are various kinds of entrepreneurial ventures that vary in size based on the operations they are into. These ventures have various similarities and differences and can impact the economy of a country greatly which can be expressed through graphs and statistics. Also, small businesses as well as start ups contribute to the economy in various ways like generation of employment, innovative, unique and creative ideas. Also, entrepreneurs who are successful possess various traits and characteristics like leadership qualities, adapting to change quickly etc. and these are the skills that differentiate entrepreneurs from other business managers. Family background as well as experience of an individual can either hinder or foster the growth of an entrepreneurial business. Thus, in order to overcome various challenges, an entrepreneur should have a complete knowledge as well as experience to be able to carry out the business effectively. Therefore, entrepreneurship as well as small businesses are of importance to a country as they help in its overall growth so a careful analysis should be carried out in order to get an understanding of the factors that will impact the same.

For More - A Case Study of Unilever on Increasing Business Growth 

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