Entrepreneurship and Small Business

Management

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 Table of Contents
Introduction......................................................................................................................................4

1. Examine and demonstrate the spectrum of entrepreneurial types that could be considered.......4

1.1 Analyse various kinds of ventures of entrepreneurship and clarify whether they contribute
to the form of entrepreneurial activity.........................................................................................4

1.2 Discover the similarities and differences between the various types of entrepreneurial
activities.......................................................................................................................................5

1.3 Investigate a wide range of undertakings to show entrepreneurship understanding both in

the public and business sectors....................................................................................................6

1.4 Analyze critically the development, growth and scope of entrepreneurial approaches.........6

2. Evaluation of the economic impact of smaller firm....................................................................7

2.1 Classify and evaluate appropriate numeric and data to illustrate effective extent of micro
and small enterprises affect the economy....................................................................................7

2.2 Illustrate the significance of the expansion of the societal economy in regards
to diminutive businesses and start-ups........................................................................................8

2.3 Assess the distinctions between small, large and medium enterprises, extend applicable
statistics and data to the economy...............................................................................................9

2.4 Critically analyze the impact of diminutive businesses on diverse levels of the financial
system (regional, domestic, provincial) and internationally........................................................9

3. Identify and Analyze the Important Aspects for an Entrepreneurial Mentality........................10

3.1 Assess the Attributes and Abilities of Successful Entrepreneurs that Distinguish
Themselves from the Managers of the Business.......................................................................10

3.2 Evaluate how aspects of entrepreneurship reflect entrepreneurial ambition and attitude...11

3.3 Examine and investigate various arguments concerning entrepreneurial qualities.............11

3.4 Evaluate the characteristics, abilities and encouragement of the success of entrepreneurs 12

4. Scrutinize the various conditions that encourage or impede entrepreneurship.........................12

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 4.1 Evaluate how background knowledge and experience can impede or nurture
entrepreneurship while using specific examples.......................................................................12

4.2 Analysis of the relationship between entrepreneurial characteristics and personal

background and practical knowledge with particular entrepreneur’s example.........................13

4.3 Evaluate objectively why experience and background have a positively and negatively
effect on entrepreneurs by contrasting and comparing scenarios..............................................13

Conclusion.....................................................................................................................................14

References......................................................................................................................................15

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Introduction
The following study is conducted on the basis of Entrepreneurship & Small Business
Management subject being discussed. It would help to clarify all of the factual information and
aspects related to entrepreneurship and small business management. Such exploration also would
help to understand the scope of forms of entrepreneurial ventures that could be contemplated. In
addition, the study will also evaluate the ventures of public and corporate sectors as supportive
references. The following established context helps to examine the influence of micro and small
enterprises on the economy of the country and helps to assess their position in the growth and
development of the social economy (Gronum, Verreynne and Kastelle, 2012). Such research also
would help to determine the full set of characteristics and skills needed to become a successful
entrepreneur. This analysis also attempts to clarify the role of experience and background in
entrepreneurship.

1. Examine and demonstrate the spectrum of entrepreneurial types that could be

considered

1.1 Analyse various kinds of ventures of entrepreneurship and clarify whether they
contribute to the form of entrepreneurial activity
For the development of new start-up companies the entrepreneur is responsible for taking any
aspects of endeavors that may be associated with potential financial risks only for the
accumulation of profit. This is the individual that, when starting a new company, works in three
different roles and such as the founder, the operator and the fully responsible and accountable
entity. An entrepreneur usually begins the entire corporate venture and carries out the complete
plan initiator (Korhonen, Komulainen and Räty, 2012). The entrepreneur is largely liable with
the security, growth and expansion of the designated business. The characteristics of
entrepreneurs are generally falls in distinctive segments such as:
Small Business Entrepreneurship: This form of entrepreneurship interacts with small company
start-ups or companies with significant financial challenges as the income generated to this is
often smaller. The entrepreneurs of this criterion are bound to introduce innovation to acquire
growth.

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Large Company Entrepreneurship: The entrepreneurs of this criterion are associated with
large corporate businesses and industries working in collaboration with extensive number of
company stakeholders to promote innovations and operational activities (Rigg and O'Dwyer,
2012).
Small Business Entrepreneurship: It interacts with small company start-ups or companies with
significant financial challenges as the income generated to this is often smaller. The
entrepreneurs of this criterion are bound to introduce innovation to acquire growth.
Social Entrepreneurship: These entities involved in producing the services and products that
would help to solve social desires and needs.
Scalable Start-up Entrepreneurship: This type is compatible with flexible fresh start-ups
companies. The entrepreneurs engaged in such an endeavour also have a specified ambition that
might transform the entire business.

1.2 Discover the similarities and differences between the various types of entrepreneurial
activities
According to Dilli, Elert and Herrmann (2018), the characteristics of the entrepreneurs are falls
into two primary criteria. By evaluating the aspect of these both, some comprehensive
distinctions can be identified. The business entrepreneurs are those who concentrate mostly on
increasing the demand for the services and products to make profit and large funds available to
themselves and to shareholders. Those are the ones who sought only for the aim of creating
wealth to expand their businesses. Their income is solely focused on themselves, and not for any
individual's benefit. Their innovations might be groundbreaking, but the motive for promoting it
would be the same, so this regard, they are recognized as “business entrepreneurs”. The “scalable
start-up entrepreneurships” and “large-company entrepreneurs” generally fall into this criterion.
In the other hand, social entrepreneurs are mostly converged on the enlargement and prosperity
of the environment, together with all of the company’s other interests and priorities (Urbano and
Aparicio, 2016). Such businessmen are more dedicated than to making wealth to themselves to
better their society. Some of the major objectives of such entrepreneurs are to produce true social
standards with the sufficient development of business economic values. Therefore, the enterprise
with this leadership engages in the stream is more committed to the general development and
improved actions of surrounding society and is also focused on the philosophy positive
development in both social and ethical diction.
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1.3 Investigate a wide range of undertakings to show entrepreneurship understanding both
in the public and business sectors
The scope for entrepreneurs ranges and differs, based on the nature of the sector; expenditure is
taken out in the organization and the intent of the firm. If these are divided by the corporate and
public sectors, it can be stated that they are mainly business and social entrepreneurial activities.
Both are engaged in the development of services and products by providing them on market,
which generally help expand profitably in considerable ways. Their products and services are
both produced in accordance with their target market requirements and requirements. The only
distinction that occurs is in the reason for which the activity is being conducted. The
business entrepreneurs rely on their own strengths and the growth of their own shareholders
(Korhonen, Komulainen and Räty, 2012). However, rather than building the wealth for their own
advantages and development, social entrepreneurs focus on the improvement and betterment of
an designated society.
As described above, an instance of a business entrepreneurship the corporate scenario of 3M is
highly relevant. 3M Company is renowned for its product range, including “waterproof
sandpaper”, “masking tape”, “and scotch tapes”. The company attained its success by increasing
number of stakeholders and reducing the liability in significant manner.
The significance of new innovative approaches and conception of benefiting the textile world is,
on the contrary is highly relevant with the practical context of the social entrepreneurship.

1.4 Analyze critically the development, growth and scope of entrepreneurial approaches
A comprehensive context regarding the development, growth and scope of entrepreneurial
ventures are elaborately described below:
Social Entrepreneurship: In this form venture the responsibility and liabilities that come with it
are extensively large and potential; it is generally practiced regarding the good of the community
as well as for the good of the mankind (Gronum, Verreynne and Kastelle, 2012). Values and
beliefs and ethical behaviour must therefore be considered reasonable to the desired degree of
success.
Small Business Entrepreneurship: Such sort of venture can entail a small-scale start-up which
requires much less expenditure than large-scale ventures and types of initiatives. The
effectiveness of the undertaking could be broadened if the appropriate entrepreneurial and

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management aspects were mutual in order to maintain the increase in the market share with new
and innovative products.
Scalable Start-up Entrepreneurship: Such a venture will need a clear strategy and a series of
strategic objectives to encourage entrepreneurs to invest in the project, thereby helping
companies to grow.
Large Company Entrepreneurship: The investment made in this type of venture is high and
there are also large numbers and sizes of obligations and accountabilities which go along. The
business must continuously compete on price the goods & its set of facilities it offers to
accommodate the inclination and requisites of the market and widen & expand at a decent pace
on the trade.
2. Evaluation of the economic impact of smaller firms

2.1 Classify and evaluate appropriate numeric and data to illustrate effective extent of
micro and small enterprises affect the economy
The small enterprises are mainly the midsized corporations which help society by raising the
employment rates in the country and thus they help the economy of the countryside. They also
encourage the development of local business in the country and thereby foster a situation that
makes money stream more easily.
A large proportion of the population in this decade are influenced and actively engaged in
becoming a successful business manager on the industry (Ramdani et al., 2019). As a result, the
society and the originator as well as the stakeholders get benefits from the company. The
countries can therefore produce a significant amount of money that helps the country and its
people to evolve, grow and progress in terms of the global economic situation. The national
economy is strongly strengthened by the appearance of these small and micro-enterprises, which
helps the nation to grow and flourish in every respect, too. The information and statistics
discussed below would help to validate the statements here.

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 Figure: 1. Statistics of various enterprises
(Source: Igami and Subrahmanyam, 2019)

The above statistics reflect certainly and evidently the duties of the tiny business and startups in
the country's wealth and also explain their assistance to the country's economic system.

2.2 Illustrate the significance of the expansion of the societal economy in regards
to diminutive businesses and start-ups.
Even when smaller companies and beginning firms are unable to sufficiently produce money as
effectively as large firms, they still play a key role in stabilizing the country's national economy
that contributes greatly to the country's financial prosperity.
Even those who are not eligible to participate and not recruited by large organizations become
employees for these companies (Igami and Subrahmanyam, 2019). This sector adds a lot of

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advancement to the domestic economy, together with development, which contributes to the
expansion of the country's economy.
This emphasizes the importance of the social economic system for prosperity as well as the
importance of smaller firms and start-up companies in developing the country's economy
(Ciccarino et al., 2019).
This gives the countries far less money, but due to their large proportion, this problem is rectified
too, because the communal income and the collective funds they deliver for the country's
economy are critically important to the nation's growth and expansion and thus take part in a
crucial responsibility in the economy of the country.

2.3 Assess the distinctions between small, large and medium enterprises, extend applicable
statistics and data to the economy
Small companies are the newly established companies with not more than 500 staff members in
the company. They are often not large enough to make large amounts of money like large
corporations, but at a standstill participates a major part in raising the regional economy of the
nation, which contribute greatly to the country’s economic expansion (Ciccarino et al., 2019).
From the other hand, small and medium-sized enterprises have matured sufficiently with the
support of continuous and slow improvements in their flow of energy. Such companies act as the
divide among both small and major enterprises
The larger companies are those, which are the entirely evolving form of a company or the fully
functioning form of a business (Céspedes-Lorente, Magán-Díaz and Martínez-Ros, 2019). This
would include large resources and investment opportunities as well as contribute directly to the
economy of the country. They deploy the diminutive and med-sized enterprises to get their
facilities completed and to work for them.

2.4 Critically analyze the impact of diminutive businesses on diverse levels of the financial
system (regional, domestic, provincial) and internationally
Small enterprises are the ones who work with fewer people, and the economic power they
produce is also very low compared to larger enterprises and are therefore called small enterprises
(Céspedes-Lorente, Magán-Díaz and Martínez-Ros, 2019). However, it is very massive if the
communal number of employees they provide will be analyzed on regional, national and
international levels. Moreover, they make a quite minor economic contribution, but if one

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considers the communal contribution to the local, provincial and national wealth, it performs a
valuable and significant part in the development and expansion of the economy of the country.

3. Identify and Analyze the Important Aspects for an Entrepreneurial Mentality

3.1 Assess the Attributes and Abilities of Successful Entrepreneurs that Distinguish
Themselves from the Managers of the Business
The primary attributes and abilities of successful entrepreneurs are given below:
I. Inspiration: Every entrepreneur has always dedicated themselves to their work, which
they would have to complete on a strict timeline (Marom and Lussier, 2018). In order to
accomplish the desired work in contrast to the deadlines, the visionary of the business
must encourage the partners involved.
II. Enthusiasm: A passion for any visionary activity as the exercise that is applied for the
imagination of business by the entrepreneurs is presented as the advantage of adoration of
the imagination that the entrepreneur should end up with.
III. Inventiveness: Inventiveness is a firm or company is the defining term of the other
affiliation or of another's working style. Innovativeness of the company is presented as
business work and thoughts are totally unexpected of others (Julien, 2018). In that case,
embedding inventiveness is among the prime ability of modern business entrepreneurs.
IV. Optimism: Optimism in the industry or the business will shift so as to appear as soon as
time allows when it begins from the underlying degree of the beginning. The entire
circumstance of the business is reflected in a company's confidence. Wherever it moves,
it brings with it the business progress on the basis that it is based on the condition of the
work.
V. Risk Taking: Risk taking is an important ability for entrepreneur to deal with the
business activity. A business entrepreneur dreams of his/her prosperity constantly about
work or business, and a danger changes in every business when business is obstructed
(Pham, 2018). This circumstance is known as risk taking and the visionary or
representative who passes into a limb of the business regarded as the boldness of the
action.

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3.2 Evaluate how aspects of entrepreneurship reflect entrepreneurial ambition and attitude
The entrepreneurial character with the business of an organization is recognized as the feature or
reaction to the company's projection by reducing the penultimate risks and limitations. There are,
for instance, enthusiasm for work and good faith, inventiveness, audacious individuals and
inspiration in the character of an entrepreneur (Kuratko and Morris, 2018). All of this reflects the
pioneering nature of the business as a step forward for the reduction of business obstructions.
The entrepreneur, who dreams of finishing the fancy whatever he longs to do, illustrates all the
strategy throughout the company operations.
The market demand also provides an inspiration to the entrepreneur's views as inspiration is the
interests that can be accumulated during the introduction of the new item on the market (Dana,
2018). These would help the entrepreneur to assuage the demand of the market in which the
business operates. In contrast, the privately managed organization inspires the business
visionaries in this respect. This fills in as a family, provided that a company is established before
a short time, mainly because it inspires or offers the opportunity to be a company person so that a
private company can achieve its goals. Besides, self-assurance is an inspiration for the company
as it provides a high level of transparency. It fills out from the representation or from the plan to
start or think about the company. Alongside this, volunteering on the subject of attitude is also
an excellent role model as well as the allegory of an enterprise that is structured to start or to
improve the training within the business framework.

3.3 Examine and investigate various arguments concerning entrepreneurial qualities

For better business performance, inspiration is used for the different arguments related to the
entrepreneurial characteristics, for instance. This works as the epithet, which allows an
entrepreneur to comprehend work as well as encourage all stakeholders in connection with work.
In addition, passion plays a pivotal role throughout the entrepreneurial operations as passion
benefits the business operations by a large extent (Kuratko and Morris, 2018). A successful
entrepreneur in that sense has to have the quality of passion for the work, and must never fear the
barriers and risks within original level of business operations. Thereby, an entrepreneur seems to
have quite a performance to build job innovation and have a good concept to develop or to
succeed.
An entrepreneur's amazing quality would seem like enthusiasm if the entrepreneur rolls forwards
and backwards at the subsequent or levels of any given business operations (Kunaka and Moos,
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2019). In that sense, a decent contractor never fears the predicament, since it provides the
contractor with an opportunity to overcome the whole dilemma as well as the possibility to do
better and succeed in the initiative.

3.4 Evaluate the characteristics, abilities and encouragement of the success

of entrepreneurs
The assessments of fields like those of business motivation are an important part of the business
as well as entrepreneurship cycle and are the obligatorily developed aspects of the project. The
motivation process generates the relevant purpose for the entire project cohort, stipulates the
tasks as well as techniques by which the project team can succeed in the job by improving the
project implementation (Soundararajan, Jamali and Spence, 2018). Other qualities throughout the
entrepreneurship can also be attributed to factors such as innovation, enthusiasm and risk-taking.
All these features are related to the zeal for work and the venture of the entrepreneur. Whether
any of the hazards or obstacles appears to tie up the development operation, the
entrepreneur needs to consider it alongside including an imaginative way to solve the trouble
which does not hamper the business. In predictable ways, inventiveness offers a brilliant idea or
perhaps a way to manage projects that deviate from others and construct successful business
entrepreneurs (Singh and Gaur, 2018). The differentiator from other individuals to entrepreneurs
is that entrepreneurs quite often find some way to garner benefits from project operations while
eliminating the risks of the project for better execution.

4. Scrutinize the various conditions that encourage or impede entrepreneurship

4.1 Evaluate how background knowledge and experience can impede or nurture
entrepreneurship while using specific examples
The knowledge and experience can foster business because the amounts of experience are most
valuable for business development or even the employment approach (Marom and Lussier,
2018). There are several examples with regard to background knowledge and experience,
showing that several entrepreneurs had no entrepreneurial experience but instead have succeeded
in business operations and is now regarded as a business mogul.

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For illustration, the Virgin Group was founded by a businessman with no experience, Richard
Branson, who had dropped out of high school. Without experience and knowledge, Richard
Branson began the business at age sixteen. In the first step he established the music record shop
business and subsequently commenced his business as something of a corporation. The Virgin
Group has an enormous market value in the modern age and its founder, Richard Branson, is
regarded as a corporate tycoon.
With all the viewpoints it is important to remember that, depending on the business background,
the naivety is most often essential for entrepreneurship goals. In view of the above perspective,
an entrepreneurial approach that falls into the old strategy throughout the modern business
context might not be beneficial to the entrepreneurial attitude (Singh and Gaur, 2018). In fact, if
an entrepreneur approaches the launch of a company depicting an organization's previous
history, the performance and financial issues may be overlooked.

4.2 Analysis of the relationship between entrepreneurial characteristics and personal

background and practical knowledge with particular entrepreneur’s example
Entrepreneurship combined with an attribute, personal experience and background has a benefit
of broadening horizons for the market that is much more valuable to both the company and also
the entrepreneur (Kuratko and Morris, 2018). The characteristics of entrepreneurship provide the
entrepreneur with a convoluted process, and thereby all the practices are carried out as per
process. Without harmful business losses, chances are available. This is the hallmark of each and
every business community.
If an entrepreneur has been successful without background and experience, the business founder
is likely not to follow any entrepreneurial strategy. The main link between the characteristics and
background experiences is that if a founder has no business strategy experience, he/she cannot
track down risks and deny them in the specified duration of time (Dana, 2018). The
characteristics seem to be the most essential conditions for operating a corporation as well as
entrepreneurs and founders must thus understand the characteristics.

4.3 Evaluate objectively why experience and background have a positively and negatively
effect on entrepreneurs by contrasting and comparing scenarios
Experience and background in entrepreneurship will be advantageous to entrepreneurs as the
presence of it helps them to comprehend the whole strategy or the ability to handle the

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organisation as per the potential steps with the help of experience and background. The training
will include the opportunity for the organization to move entire issues in the appropriate manner
as needed for the organization's stakeholder (Rigg and O'Dwyer, 2012). The positive effect of the
encounter is that fulfilling the specific goal of the company is beneficial for the entrepreneur.
The other is the background for entrepreneurship which allows the businessman to consider the
operating approach of organizations or the issues to be incorporated in the organization system to
achieve the organization's advantage.
The negative aspect of the experience is that when an entrepreneur has the expertise and works in
keeping towards past work style, this gives an out-dated and ultimately incompatible idea on the
knowledge required in the modern entrepreneurship and can lead to loss of the company. The
another aspect is the background; if, according to the knowledge of the association's previous
background, the entrepreneur starts a business then it will be possible for the business to face
losses due to the presence of pre-quality issues in the association's background.

Conclusion
Thus, by evaluating the contextual information it can be considered that the role of
entrepreneurship holds a position on the development and progress of any business. The extent
of involvement and expertise of the entrepreneurs plays significant role on defining the future of
the business. The characteristics of entrepreneurial ventures therefore are also essential for
conducting the practices on the business scale. Set aside from that, it has also recognised that the
impact of micro and small businesses with adequate entrepreneurship makes substantial impact
on the national economy. Therefore, consideration of proper venture is essential for both public
and corporate business operations.

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