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Small Business Management

University: UK College of Business and Computing

  • Unit No: 9
  • Level: High school
  • Pages: 20 / Words 5024
  • Paper Type: Assignment
  • Course Code: N/A
  • Downloads: 233
Question :

This sample will let you know about:

  • Define entreprenaurship.
  • How entrepreneurial characteristics reflect mentality of entrepreneurs?
Answer :
Organization Selected : B&M company

Entrepreneur is termed as a person who setup their own company with an aim to gain higher profits rapidly. They bear financial risk at their own in order to sustain longer at marketplace. Entrepreneurs basically develops innovative business idea and put their full potential to attain desired goals (Hills and Morris, 2018). In the present report, B&M company which is established by two entrepreneurs Simon and Bobby Arora  is taken into consideration. The company offers different variety of Grocery in the market. By the efforts of these two entrepreneurs, The company is renowned as homewares chain globally. The current report includes different forms of entrepreneurial ventures with typologies. In addition to this, differences & similarities between entrepreneurial ventures is also discussed in this report. It will further discuss about the affect of small and micro entrepreneurs as well as large businesses on local and national economy.  Moreover, skills and attribute traits of entrepreneurs is going to cover. Lastly, the report provides an analysis of different environment which foster and hinder entrepreneurship.

Different types of entrepreneurial ventures and their growth and development with relation to typologies of entrepreneurship

Entrepreneurial ventures emphasise on delivering its services to the business entities which comes under middle level. Along with this, Entrepreneurial ventures helps business firms to bring out something innovative and unique within the market. This develops an opportunity for businesses entities and assist them to attain desired goals within the specified time frame (Lipset, 2018). Moreover, it also assist in raising economic value and social recognition as well. There are various forms of Entrepreneurial ventures which is mentioned below:

Classification of entrepreneurship:

There are various categories of the entrepreneurship on the basis of size, purpose, sector and by growth that are as  follows:

Entrepreneurship according to size:

  • Small Scale Businesses: This form of entrepreneurial ventures is basically formulated by single entity who can perform all activities independently. The sole proprietor bears all the expenses as well as losses and handling responsibilities properly (Mitra, 2019). This ventures consist of one or two employees. Carpenters, small stores are such an example of these type of ventures.
  • Medium scale entity: A medium enterprise is an enterprise in which investment in plant and machinery is more than Rs. 5 Crore but not exceed Rs. 10 Crore. The example of medium enterprise is Captify, John Good shipping and many more.
  • Large scale Entity: This ventures perform business activities on a large scale and generates higher profits. The example of large scale businesses are B&M, Marks & Spencer and so on. This entrepreneurial ventures offers wide variety of products and services and consist of huge number of employees in order to perform out business operations properly.

Entrepreneurship on purpose

Social enterprise: Social enterprise is an organisation which apply their commercial strategy to maximise improvements in finance, social and environmental well being which includes social welfare of society.

For profit ventures: For profit social entrepreneurial ventures that are blend with social goals with the business goals in order to remain competitive in marketplace.

Entrepreneurship by sector:

Corporate sector: Corporate sector is the part of economy made by companies, is a subset of domestic economy. It excludes the activities of general government, private households and notn profit organisations.

Types by growth rates:

Survival Firms

This type of ventures struggles within the market in order to get stability and remain for longer time period. They faced issues and difficulties as well which are interlinked with earning of profits. It has been stated that, the revenue of survival firms is limited which is not enough to fulfil their basic needs. Furthermore, due to limited availability of resources and money  they are not able to achieve their desired gaols within given time period. Some of the examples of survival firms are grocery stores, bakeries and many more. Order assignment help from our experts!

Lifestyle Firms

It is another form of entrepreneurial ventures. Herein, company performs several functions and operations which is straightly linked to the high profile. In addition to this, Lifestyle firms basically performs those operations that fulfils their passion and raise their standard of living effectively. The example of life style firm includes ski instructor, golf and tennis pros, wine bars and tour guides.

Scope, growth, development and its relationship with the typologies of entrepreneurship

The development and growth of entrepreneurial ventures is raising continuously by the passage of time. The development of ventures is related and depend on the  typology. There are basically two types of typologies that is female and male entrepreneurs. One of the main reason behind development of typologies is  mainly these entrepreneurs. It can be better understand by the help of an example. For example, it is said that Male entrepreneurs put their unconditional efforts and full potential for the growth of companies that results out positively and thus the  financial performance of an organisation improves (Burns and Dewhurst, 2016). In addition to this, it is determined that capability of taking risk is more in Male entrepreneurs and they take decisions within the given time period which directly promotes growth and assist companies to achieve their desired goals in an effective manner. Moreover, it is also determined that Female Entrepreneur also contribute towards development of firm as they put their full zeal so that organisation can earn higher profits. It has been stated that Female entrepreneur are more focusing towards their work and carries multitasking behaviour which is the main reason behind success and growth of companies. Along with this, female entrepreneurs are more concerned and devoted for the business activities that enhance the performance of an organisation in a defined manner. From the above discussion and explanation, it is shown that there is affirmative relationship among these entrepreneurial typologies that leads towards growth and development of entrepreneurship as well as firms. Need Assignment Samples?Talk to our Experts!

Differences & Similarities among entrepreneurial ventures

Differences among Entrepreneurial Ventures

Small Business Entrepreneurship

Large Businesses Entrepreneurship

  • This entrepreneurship ventures consist of two employees or more than it that is owned by the sole proprietor as per their needs (Dana, 2018).
  • The aim of small ventures is to satisfy their basic needs along with the needs of their family. It involves needs such as food, shelter, cloth and so on.

 

 

 

  • Large scale businesses have greater than 250 staff members who perform all activities and functions in a proper manner. This type of entrepreneurial ventures is managed and controlled by professional partners.
  • The goal of large scale entities is to enhance their business globally and gain higher profits that automatically increase its brand image as well as market share.

Similarities between Entrepreneurial Ventures

Apart from likenesses, it has been stated that there are also some similarities between entrepreneurial ventures. The similarities between large scale and small scale entrepreneurial ventures are as follows:

  • one of the major similarity among these ventures is both put their hard work and efforts so that they can earn higher profits  (Ferreira and et. al., 2017). Along with this, their aim is to raise living standards and improve social status as well. 
  • The another similarities is both companies identify needs of customers and then carried out its activities  so that they can satisfy more customers and increase their sales.
  • Furthermore, it is determined that income gain by small as well as large entrepreneurial ventures is contributed towards the growth & development of societies that directly affect on the national income and economy of the country.

Similarity and difference in survival and lifestyle firms:

The major difference in survival and lifestyle firms consist that survival firms only exist to gain reasonable profitability on other hand life style firms passionate to give distinctive products and services to consumers. The similarity in both kind of firm that they exist to serve defined target market needs and for earning profitability potentially.

Similarity and difference social and for profit ventures:

The major difference in both the firms that social firms believes in welfare of society and for profit firms determined to gain the profitability as they exist to earn profitability. On other hand similarity in both firm that social firms find out problems of people to find best solution against it and for profit organisations also work for find out problems of consumers. 

Relevant Information to illustrate how little and miniaturized businesses impacts on economy.

Miniaturized enterprises consist of 50 employees or less than it who perform activities effectively in order to raise their living standard. This businesses works on a small scale and invest small amount in their business. On the other side, small business involves two staff members or more than it and works to fulfil their basic needs that is food, shelter and so on.

Most of the Entrepreneurs initially start their businesses on small and micro level wit a motive to gain profits and sustain in market for longer time period. Small and Micro Entrepreneurs contribute towards the development of economy by bringing creative as well as innovative idea in the market (Julien, 2018). This improves the conditions of economy effectively. In addition to this, micro enterprises also assist in improving standards of people living in societies and thus improves their social status. These enterprises emphasises on producing those innovative goods and services in market that brings positive change in people. This can be understand properly by an example. For instance, the economy of United Kingdom is facing a lot of difficulties and declines due to BREXIT. Along with this, UK economy crashing down that affect negatively on people also. At this time, Small and Micro Enterprises assist government to face situations and condition s in a appropriate manner. Moreover, it helps economy to remain sustain and effective in these situations. Therefore, SME's contributes a major part in the growth and development of economy.

By analysing the above graph which is based on the affect of small business on the economy of United Kingdom. It is interpret that :

  • The Micro businesses contributes around 19% towards the development of UK economy.
  • It has also been observed that overall contribution of small businesses on United Kingdom economy is around 24% which is a major part and impacts positively on economic development as well as growth.

By analysing the above graph, it is determined that small and micro business contribute towards employment but they are not able to retain in market for longer time period. By the assistance of this businesses, the national income of UK increases which is use inn the development of the economy. It is analysed that small businesses faces challenges in order to gain growth in market. In addition to this, small and medium enterprises offers many employment opportunities in market that leads to improvement in living standard of people.

 From the second graph it has been summarised that SMEs provides the employment and business opportunities to people that is very much significant in development and enhancement in positive manner.  It has been analysed that employment opportunities rises continuously year by year.  it is conclude that structure of small and micro businesses is easy as compare to large enterprises. In small businesses, taking decision is easy and no conflict is arise as compare to other large organisations. 

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Importance of little businesses & Start-ups on growth and development of social economy

Social economy is deciphered as mixed economy that involves features and characteristic  of private as well as public sectors (Karabulut,   2016). It analyse how social values, norms and ethics affect on behaviour of customers and shape their purchasing trends. This are non profit organisation and works with a motive to improve social situations and conditions of the economy. It is a voluntary organisation that works on both national as well as international boundaries.

Moreover, this type of organisations majorly contributes towards the economic system of United Kingdom. It also help government to raise funds and develops the economy in an effective manner. The significance of Start-ups and small businesses are as follows:

Increasing Job Opportunities: Increase in number of start-ups as well as small businesses raise the number of employment opportunities that contribute positively on the development of social economy. Small businesses and Start-ups offers job opportunities in market in order to select skilled and effective employee who carries out their business activities effectively and reaches company to a leading position (Ratten, 2016). The skills and competencies of workforce is properly utilised so that they can gain positive results. In addition to this, giving opportunities of job to a person fulfils its basic needs that not only improve employee conditions but also improves the conditions and national income  of an country. By the assistance of these employees, Start-ups and small businesses gain success and remain in market for longer time frame. Along with this, small companies expand their business in other countries by the help of its talented workforce.

Innovation: Start-ups and small businesses brings innovative as well as creative offerings within the market. They emphasise on developing those goods and services that improves living standard of people of society and thus improves their social status also. By the assistance of start-ups, social economy gets higher growth and development. Start-ups brings creativity by investing money, efforts and time with an aim to gain profits. By the help of innovation, an organisation gain competitive advantage at marketplace and achieve high success. This directly contributes towards the development of social economy in a proper manner. 

Betterment of Domestic culture: It is determined that sales and profit level of companies has decline because of BREXIT. It reduce the market share of large number of organisation prevailing in UK. Start-ups as well as small businesses  develops creative & unique products after analysing the market trends and needs of customer so that they can fulfil it and gain high profits (Storey, 2016). They contribute a portion of profits towards the development of social economy.

Poverty Alleviation: By giving the job opportunities to people, these entrepreneurs reduce the poverty level of a country. They emphasise on satisfying basic human needs of people living in societies that positively affect on social economy. Due to this, social status of people increases that directly that directly improves poverty level of an economy. Start-ups and small businesses recruit effective candidates and use their skills to enhance sales and profitability of companies.

Affect of enterprises on  local, national and regional level of the economy

The small, medium and large enterprises impacts on local, national and regional level of the economy. Small and Micro enterprises provide employment opportunities to local individuals and encourage them to perform business activities effectively so that they can generate higher profits and increase its presence in other countries also. Medium scale enterprises focuses on developing infrastructure and perform business functions as well as operations properly that affect positively on the regional level of the economy (Theodoraki and Messeghem, 2017). In context to national level, large enterprises put their full potential in order to expand their business globally and contribute towards the development of societies as well as conditions of national level of the economy.

Skills, Traits and characteristics of Entrepreneur

Traits, skill as as well as characteristic observed in Simon & Bobby Arora and Richard Branson are as follows:

 

Simon and Bobby Arora

Richard Branson

Traits

  • Innovation: The ideas as well as creativity brings in market by this two brothers is innovative and new in market which is the reason behind their success.
  • Feedback Approach: It is determined that simon and Bobby Arora take reviews from customers in order to make improvements in their offerings (Klapper, Biga-Diambeidou  and Lahti, 2016).
  • Innovation: Richard Branson offers innovative as well as new products and service in market that is accepted by people in market rapidly.

 

Skills

  • Focused: Simon & Bobby Arora is focused towards their work due to which they gain higher position as well as success in market.
  • Motivator: This two brothers motivates and encourage their employees in an effective manner that increases their performance and productivity level.

 

   

  • Mindfulness: He has the ability to handle issues and criticism in an effective that brings out positive results.

 

Characteristics

 

  • Risk-taker: They believe in taking risk as they bring new and innovative products in market.
  • Problem Solving: They solve the issues and problems in an effective manner that affect positively on their employees.  

 

  • Leadership: Richard Branson is one of the renowned leader as he encourage all the staff members to effectively perform task. Along with this, he handle and manage teams in a proper manner.

The differentiation between Successful Entrepreneurs a well as Business Managers is defined below:

Dimensions

Entrepreneurs

Managers

Focus

They emphasise on bringing innovative and new product in the market that assist them to remain in market for longer time frame.

They focus on carrying out business activities as well as operations in a smooth and effective manner.

 

Status

They are the owners of business and bear all the risk and losses.

They are the stakeholders of businesses as managers are not owners of an organisation.

Motivation

Attainment of desired goals and to earn higher profits motivates them to work with full potential.

To perform business activities and to raise productivity of an organisation is motivation for Managers.

Entrepreneurial mindset:

Entrepreneurial mindset is the way of thinking which assist in overcome from the challenges and accept responsibilities for gaining potential outcomes.

Types of mind set:

There are differ kinds of entrepreneurial mindset which includes the passion first as it is natural to opt business that based on market needs and strength. The second mind set is every thing is possible that helps in gaining the extraordinary results. The third is 100% accountability is helps in giving one of their best efforts in situation which is out of control.

Importance of entrepreneurial mind set:

Entrepreneurial mindset is very much potential in the development of confidence and helps in gaining the opportunities as well as not afraid from taking risk. It helps in setting goals and milestones for self improvements in much easier manner for gaining potential outcomes.

Distinctive characteristics of successful entrepreneurs:

There are no. of distinctive characteristics of entrepreneurs that are creative mind set, passionate for their goals and objectives, optimistic in thinking and future oriented in achieving their objectives. They are very much flexible and resourceful that helps in thinking out of box and potential in order to remain competitive in marketplace .

Distinctive characteristic traits of those successful entrepreneurs differentiate from characteristic traits and skills of typical business managers.

There are huge difference in the characteristics and trait of successful entrepreneur that create distinction from managers as manger is a leader within the established business who oversees work of other employees within department. In contrast entrepreneur is an individual who recognize the problem of consumer and find out best solution for it. Further entrepreneur take risk on other hand manager is limited to some extent in regards of risk.

How entrepreneurial characteristics reflect motivation & mentality of entrepreneurs

Entrepreneurial Personality is termed as human qualities, characteristic, motives and so on that is mirrored with requirements and experiences of a person. In order to get an understanding about entrepreneurial personality, there are some essential factors that is required to be discussed are as follows:

Family: The future as well as career of a child is totally shape by background & members of a family. It is essential to give direction and proper guidance to a child so that they gain an understanding about what is wrong or right. This will help them to take better decisions and gain success in future (Brustbauer, 2016). In addition to this, behaviour and attitude is also shape by the family members. At every stage, guidance of family members or elders is required in life that assist a person to gain success and growth in life. The values, norms, culture, ideas of family plays vital role in shaping future in a proper manner.

Lifestyle: A good lifestyle directly leads to better decision making. If it is talked about an entrepreneur, if he experiences problems and passed through hurdles in life, it is not possible for them to take high risk and perform business activities properly, its main focus is to satisfy his basic human needs. Moreover, it would not be possible for them to take effective as well as better decisions.

Upbringing: The culture or environment given to a people also matters in shaping future and in gaining success. The people whom they meet, communicate as well as interact affect on the abilities and qualities of an individual. In addition to this, upbringing also affect on nature, attitude and behaviour of a person. If it is talked about an Entrepreneur, if his/ her upbringing is flexible it will builds positive attitude and behaviour of an entrepreneur (Kuzmina, 2017).

Apart from this, adoption of OCEAN model also helps in testing entrepreneurial personality. This model is discussed in detail below:

Openness: This factor describes the willingness of an entrepreneur to bring innovative things, to be vulnerable and to imagine thins outside the box. It also involves other traits such as originality, creativity, Insightfulness, curiosity and so on. A person low with openness to experience like to meet new people and engage in brining creativity.

Conscientiousness: It is defined as the control level of an individual that assist in making better and immediate actions (Brush and Greene, 2015). This type of people prefer to follow all the rules as well as policies that help them to attain their desired goals in a easy and proper manner.

Extraversion: They are the people who is talkative and interactive in nature. Along with this, they draw energy by communicating with other people that assist in gaining higher opportunities. This type of personality in an Entrepreneur helps to interact in society and gain opportunities that will affect positively on their businesses.

Agreeableness: Hereby, it describes compassionate, friendly as well as cooperative nature of a people that affect positively on the mindset of other people. It involve other traits such as Trust, patience, politeness and so on.

Neuroticism: It describes emotional stability as well as general behaviour of a person or it is defined as ability of a person to handle issues and circumstances. This type of personality assist entrepreneurs to deal with circumstances in a proper manner.

Entrepreneurial characteristics and situational factors:

In entrepreneurial characteristics includes the external factors such as motivation, education, societal norms, culture and family support that is very important characteristics of an individual in gaining desirable outcomes. Due to rise in unemployment in the business environment it is very important to raise the possibilities of entrepreneurship in business world in order to reap important outcomes.

How Foundation & experience of entrepreneurs can hinder or foster business enterprise

The way of achieving growth and success of an entrepreneur is different from one another. Small business has different motive to take decisions as compare to medium and large enterprises. It varies according to the size, nature of businesses. Education as well as experience of  a person plays vital role in shaping the future of an individual and teams. One of the most essential traits which is required in each and entrepreneur are self-motivation, coordination, self-management, time management and so on (Goffee and Scase, 2015). This factors is developed by the education level and experience of an entrepreneur. The other important factor that is needed in entrepreneur is taking high risk.

Every business is associated with some type of risk which is not easy to identify before implementation of activities of new business. Entrepreneur faced various issues and challenges before initiate business in market. Simon and Bobby Arora, a successful business manager and renowned entrepreneur has taken risk that is the reason behind the success of their business in market. Richard Branson, a successful entrepreneur and also known as famous leader perceive risk as an opportunity as well as challenge due to which he gain success in market rapidly. In order to deal; with risk, it is important for an entrepreneur to be flexible and dynamic so that they can easily deal with the changing environment which did not affect on their business performance. In addition to this, analysis of risk assist entrepreneur to achieve business success and growth in an effective manner.

Richard Branson:

Richard Branson is an international entrepreneur who dropped out at the age of 16 to start the youth culture magazine called Student. In the year 1969 Branson living in a London Commune which is surrounded by British music and drug scene at that time he got the idea to expand their business venture known as Virgin group.

 In context of  Simon and Bobby Arora, they are very  much motivated and always eager to solve problem of people. The risk taking ability of them helps them to become the successful entrepreneur that is very much important for economy to gain employment opportunities positively. 

Critically examine by comparing & contrasting examples

It is determined that Simon & Bobby Arora motivate its employees by giving them rewards and incentives as it affect positively on employees due to which their efficiency and productivity level increases. But this sometimes affect negatively on those employees who did not get output as per their performance or the inputs they put for achieving organisational objectives (Kuratko and Morris, 2018). On the other hand, Richard Branson encourage its employees by offering benefits such as Holiday packages, Health Insurance and so on this develop positivity in staff members but impact negatively on those subordinates who want benefits in monetary terms. Thus, every entrepreneur has different way to motivate and encourage people in an effective manner. Get Finance Dissertation Topics from our qualified experts!

Conclusion

From the above study, it has been analysed that entrepreneurs bring innovative and creative products as well as services in market that affect on the economy in a positive manner. The relationship among entrepreneurship practice and entrepreneur is essential for effective start-up business. After analysing the study, it is considered that United Kingdom is one of the greatest countries in order to gain high growth in entrepreneurial ventures. All different forms of Entrepreneurial ventures basically focuses on unfulfilling their basic needs and to gain profits. In addition to this, Small and Medium Enterprises affect on the growth of economy whether it is state, regional as well as national level. Moreover, Increases in start up businesses and small business raise higher job opportunities, brings innovation and decline the level of poverty from the countries.

Also Read- Service Improvement, Entrepreneurship and Innovation

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