From: Syed Munim Ejaz

To: Sir Mohsin

Unit: 9

Unit Name: Entrepreneurship and Small Business Management

Submission Date:
 INTRODUCTION

Entrepreneurship is the way to set up a business by considering different risks related to it such
as financial or managerial. The entrepreneurial ventures can have different ownership
structures and the entrepreneurs need to have certain skills and characteristic to development
and management of a business. The experience and personal background can have diverse
effect on the entrepreneurship that can foster or hinder a business. The study is going to focus
on different types of entrepreneurial ventures, their effect on the economy. Apart from this,
the skills and mindset needed to set up a business will be elaborated along with the ways
experience and personal background can affect a start-up business.

P1 Discussion of different types of entrepreneurial ventures and explanation about the ways
those relate to the typology of entrepreneurship

The entrepreneurial ventures are different in types as follows:

Small business entrepreneurship: These types of startup businesses can only be run by the
owners and the numbers of employees are very low. Along with this, the revenue generations
are not much and these organizations continuously focusing on getting more clients and
development of its products or services. This type of business can be run with family members
and with friends as partner. However, several small businesses are there that provides
innovative products or services and grow exponentially.

Scalable startup entrepreneurship: These types of businesses start business with innovative
ideas and focus on providing innovative products or services from the starting. These types of
entrepreneurs believe that their ideas can change the world and they search for investment
from venture capitalists. These organizations look for brightest mind for the business and they
tend to set up a scalable business model.

Large company entrepreneurship: The large organizations have finite life cycle and they focus
on providing new products or services to the customers for sustainability and longevity of the
business. The demand of the customers and trends are changing eventually along with
competition, legislation that forced the large organization in disruptive innovation and create
new products for entirely new market. However, the large size of the organization makes the
disruptive innovation difficult.

Social entrepreneurship: This type of entrepreneurship focus on solving different social

problems by delivering their products or services. This organizations focus on creating a better
world for the people and can be for-profit, non-profit or hybrid.

P2 Exploration of the similarities and differences between Entrepreneurial ventures

Differences and similarities between different entrepreneurial ventures are following:

Factors Small Business Scalable Startup Large Company Social

Entrepreneurship Entrepreneurship Entrepreneurship Entrepreneurship
Goals and These These business These These
Objectives organizations aims to provide organizations aim organizations aim
might not have innovative to sustain in the to provide quality
structured goals products market by products or
and objects and constantly and developing new services to make
works on achieve high products or the world a better
achieving lesser profitability for services and Place.
profitability and Investors. marketing
Growth. Strategies.
Risks The risks might The risks are high The risks are The risks are not
be lower but due to high medium because much high
competition is amount of large businesses because, these
high with same financial often manage to businesses often
sized investment and sell high volume get support from
Organizations. pressure to due to their government and
return brand public due to their
high amount to Value. Vision.
the
investors by
achieving high
Sales volume.
Employee No Employees are Depends on Employees can be Depends on the
Not more than 50. Structure and More than 1000. size of the
size. Business.
Structure No proper Mainly The Mainly trustee
organizational corporations or organizational based
structure and limited structure is often Organizations.
often run with Partnerships. complex and can
sole be public limited
proprietorship r in or private limited
Partnership. Company.

M1 Investigating diverse range of entrepreneurial ventures to demonstrate an understanding

of entrepreneurship in both public and corporate sector

In public sector: The public sector organizations are controlled by government directly or
indirectly. The government invests higher amount on those organizations and different private
organizations provide strategic help to those. These types of organizations have establishment
in different sectors and aims to provide quality products or services to the customers. These
organizations do not emphasis on profitability rather than social welfare and development.

In corporate sector: These types of organizations run privately and can be owned by individuals
or public. These organizations develop marketing strategies to provide quality products or
services to customers to enhance their profitability and longevity of the organizations. Many
large organizations, scalable entrepreneurship ventures are associated with corporate sectors
that focus on sustainable development by focusing on its competitors and developing strategies
to gain competitive advantages.

D1 Critically examine the scope, development and growth of entrepreneurial ventures

The vision, mission and objectives of different entrepreneurial ventures are different that
affects the scope of those organizations. If those organizations can develop products that can
meet the demand of the customers, then they can sustain for longer time by generating
profitability. The entrepreneurial ventures need to focus on development by getting
investments and plan to develop their products or services in accordance with current trends
and demand. The growth of different entrepreneurial ventures is dependent on their quality of
products and services, how much they can meet the demand of the customers, pricing and
sustainable strategies.

P3 Interpretation and assessment of relevant data and statistics to illustrate the ways micro
and small businesses impact on the economy

In every industry, the micro and small business captures a higher part and contribute highly in
the economy of a country. The number of micro and small businesses is increasing over time
that generates high revenue by providing different products and services to the customers.

Comparison of SMEs and large businesses in the UK

In the UK, the number of small businesses are high in different industry and there are more
than 4.5 million SMEs are established throughout the United Kingdom, which is almost 99% of
all the businesses in the country. Therefore, the revenue generated by those businesses has
high contribution to the GDP of the UK. Within all the businesses, 96% are considered as micro
business that employs only 0-9 people. Those businesses provide 33% of employment ad 22%
of total turnover.

Share of Businesses in the UK

According to the graph, the number of small and micro businesses is much higher than medium
and large businesses in the UK. Small and micro businesses earn 37% of turnover and provide
48% of employability throughout the UK.

Business type of micro and small businesses in the UK

The small and micro businesses can be categorized as innovator, non-innovator, exporter and
non-exporter. Those businesses generate revenue with or without innovation and many of
those exports products and get foreign currencies and contribute to the economy of the UK.

P4 Explanation of the importance and business start-ups to the growth of the social economy

In order to maintain the growth of social economy, the start-up businesses have high influence
in different countries. The startup businesses often come with innovative ideas of products and
services that can meet certain requirements the people comparatively other businesses. Apart
from this, sometimes startup businesses can capture the market very fast and managed to
generate higher revenue in very short time period. In this process, those businesses need to
provide high amount of business tax that can be helpful of the growth of a country. Apart from
this, in order to run a business, startups hire people which can reduce unemployment in a
country. There are many startups who cannot provide high salaries to the employees due to
lack of capital and those hires some of the lesser skilled employees with lower salaries that is
also helpful in decreasing unemployment problem. Many startups are associated with different
types of CSR activities related to social, environmental and economic problems to enhance
brand value. In this procedure, those businesses provide education to the people in rural areas
or people with poor financial background. Those people can use that education in future to get
work that is also helpful in economic growth. Apart from this, there are a high number of
startups businesses are established in different industries in the UK, which have high
contribution in the GDP of a country.

M2 Evaluation of the differences make by small, medium and large businesses to the UK’s
economy through relevant published data and statistics

In the United Kingdom, the number of small and medium businesses is high compared to larger
organizations. The small and medium-sized businesses have captured larger part of every
industry and contribute to the economy of the UK highly. However, the larger businesses earn
high revenue solely by providing quality products and services and due to their brand value.
Many large businesses of the UK have establishment in different countries that is helpful in
earning foreign currencies. The larger businesses consist of different operational activities and
they employ higher number of candidates compared to other organizations. The large
organizations also spend higher amount in CSR activities in a country.

The small and medium-sized businesses focus on providing innovative products to the
customers gain attraction and enhancement of business growth. Those businesses also export
higher volume and also employ high number of candidates in the UK that is helpful in reducing
unemployment.
D2 Critically examine the ways small businesses have an impact on different levels of the
economy in a global, regional, national and international context

The small businesses in the UK have diverse effect on the economy of the country in different
levels. As per in regional level, the small businesses can compete with same types of businesses
by providing quality products and services that can meet the demand of the customers more
effectively. Those businesses are focusing on hiring employees with lesser salaries due to lack of
finance and employ people who have lesser skillset compared to others, which is helpful in
reducing unemployment. As argued by in national level, that organization can expand to
different areas of a country and enhance revenue generation that enables them to provide
higher tax for development of the country. In global and international level, many of the small
organizations export its products and services and set up branches in different countries. It is
helpful in earning foreign currency that contributes to growth of the country.

P5 Determination of the characteristic traits and skills of successful entrepreneurs that

differentiates from other business managers

Different characteristics traits and skills are essential for the entrepreneurs to set up a
successful business and enhance its growth. In order to set up a businesses, different
procedures needs to be considered by an entrepreneur and those needs to be completed
single-handedly due to lack of capital in first. The personal characteristic do the entrepreneurs
are following:

 Ability to generate new ideas

 Ability to take risks
 Have vision and goals
 Have motivation to achieve the goals
 Good management skills related to resources, financial and human resources

The personal skills of an entrepreneur are following:

 Communication skill is needed to interact with range of people such as suppliers,

distributors, clients, employees and more
 The leadership skills is needed to show the path to the employees for achieving goals
 Negotiation skill is needed to deal with clients and also to mitigate any internal
problems
 Time management skill is important to complete the tasks on time to achieve success

P6 Assessment of the ways aspects of the entrepreneurial personality reflect entrepreneurial

motivation and mindset
The entrepreneurial personality of an individual is essential in set up a business and be
motivated to deal with different problems and risks associated with it. The entrepreneurial
personality involves characteristics through which an individual can generate new ideas and
implement it to generate revenue. Those ideas need to meet certain demand of the customs
and an entrepreneur need to constantly develop those ideas for sustainability. An entrepreneur
needs to have ability to take risks and use the resources carefully for the businesses. They need
to set the goals, mission and vision for the business and develop strategies to achieve those.
The entrepreneur needs to identify the opportunities to make sales and generate revenue.
Therefore, they need to be self-motivated to run the business by managing the risks related to
it and have the mindset to achieve the goals continuously.

M3 Exploring and examine different lines of argument relating to entrepreneurial

characteristics

The characteristics of an entrepreneur have high similarities with the characteristics of the
leader. In this procedure, entrepreneurs need to set goal for their businesses, deal with the
risks and make plans to achieve those goals. They need to deal with a number of people such as
employees, investors, suppliers, distributors and more single-handedly. Along with this, they
need to plan and allocate resources and show path to the employees to fulfill organizational;
objectives. The entrepreneur also needs to have good management skill to manage the
organization and deal with any conflicts effectively. As an instance, Ms Rana Harvey is
motivated and passionate to run the businesses have belief in oneself. She can work hard, plan
effectively and manage the organization by dealing with different problems to grow the
business.

D3 Analyzing the characteristic skills, traits and motivational drivers of at least two successful
entrepreneurs with example

Ms Rana Harvey set up the Monster Group that is progressed very fast and certain skills and
traits of Ms Rana Harvey have high contribution to it. She is highly passionate and motivated to
run the business and as a chemist, she runs the business as a laboratory so that she can work
effectively without getting bored. She has self-belief and maintains the discipline to complete
her tasks. She can work hard can conduct the work single-handedly. Along with this, she can
make the finance of the businesses effectively and allocate to different tasks. She can plan the
future and make strategies deal with risks and run the operations. Zac Williams is the owner of
Grad Touch that provides support to the students and provides consultancy services to the
organizations to get skilled employees. He has good communication skill to get clients and have
risk-taking ability to set up the business. Along with this, he has innovative idea through which
he can help the students in finding a good job along with providing efficient employees for the
businesses. He also has high motivation to deal with the risks and plan the business along with
management skills.

P7 Demonstration by examples about the ways personal background and experience can
hinder or foster entrepreneurship

Personal background and experience can have high effect on a business and it can foster or
hinder the business the entrepreneurship. The personal background consists of support from
friends and family, motivation, financial background and others. In this procedure, if one can
get correct support from their friends and family, then they can be motivated to set up a
business. The Support can enhance the motivation and risk-taking ability that can foster the
entrepreneurship. The financial background can also influence the risk-taking ability of an
individual and startup a business. However, without support from family and friends, many
individuals become demotivated in entrepreneurship.

The personal experience also has influence in entrepreneurship. If the experience is good then
one can continue with their business for longer time and become motivated to set up a
business. However, if the experience is not good, then one might be afraid to set up a business.

M4 Analyzing the link between entrepreneurial characteristic and the influence of personal
background and experience to specific successful entrepreneurs

The personal background and experience can allow an individual to set up a successful
business. Ms Rana Harvey is a chemist who set up a business named Monster Group. In this
procedure, she plans the business, recruit employees and make strategies for marketing and
dealing with risks. She is self-motivated and uses her office a chemistry lab so that she cannot
become bored and work effectively. She is self-motivated and participated in business
programs to gain experience by associating with other busies and use it for own business
process. She also conducts future planning, focuses on financial management and works hard
to run operations.

Zac Williams is owner of GrandTouch that provides consultancy services to the business and
provide support to the students to get a job. He is also self-motivated and set up a business
while failed to find job in Accenture. He builds up a good experience for the students and other
clients through which he becomes motivated to run the business activities. He can take risk,
plan the business and interact with clients, which are essential part of the business to grow.

D4 Critically evaluating the ways background and experience influences entrepreneurship

both positively and negatively by comparing and contrasting examples
The background and experience of an individual can affect the entrepreneurship in both
positive and negative ways. Ms Rana Harvey and Zac Williams have motivation to set up a
business and deal with different problems to grow. They get efficient support from team
members to be motivated and run the organization. There are many businesses that cannot
survive for longer time due to inefficient team and lack of motivation to keep the growth. The
past experience of failure can affect the entrepreneurship negatively. If one has strong financial
background and support, then they can take risk to set up a business and run effectively.

Conclusion

The startup businesses can be different types such as small, micro, medium and large
businesses. The small businesses capture a large part of every industry and have high
contribution in economy of a country. The entrepreneurs need to have certain skill and mindset
to setup and run a business by considering different risks.

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