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ENTREPRENEURSHIP AND SMALL BUSINESS

MANAGEMENT (ESBM)
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Contents
Introduction.................................................................................................................................................3
P1................................................................................................................................................................3
P2................................................................................................................................................................4
M1...............................................................................................................................................................5
D1................................................................................................................................................................5
P3................................................................................................................................................................6
P4................................................................................................................................................................7
M2...............................................................................................................................................................8
D2................................................................................................................................................................8
P5................................................................................................................................................................8
P6................................................................................................................................................................9
M3...............................................................................................................................................................9
D3..............................................................................................................................................................10
P7..............................................................................................................................................................10
M4.............................................................................................................................................................11
D4..............................................................................................................................................................11
Conclusion.................................................................................................................................................11
Reference..................................................................................................................................................12
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Introduction
Entrepreneurship is to start a business considering different types of financial and managerial
risks. Different types of entrepreneurship ventures can have different types of ownership
formation structures according to their development and management skills of business. The
negative personal background could have taken as a hindrance and the positive experience make
the task easy to start the entrepreneurship ventures. This study is going to make a deep focus on
the different types of entrepreneurial ventures with British Petroleum, the effect of them on the
economy. Besides this, the development and managerial skills and the positive mindset that need
to start an entrepreneurial business will be discussed and elaborated with the experience mindset
and the effect of personal background on the start-up entrepreneurial business.

Task-1:

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 types according to their industry, operation, and
capacity of providing goods and services. These are different types as follows:

Scalable start-up entrepreneurship: in this business, the entrepreneur wants to start a business
with innovative, new ideas and try to make focus on delivering innovative products or services
from the first starting of the ventures. These entrepreneurs try to collect their investment from
different venture capitalists. (Burns, P., 2011). They think that their product services and ideas
can change the world positively. These types of startup ventures search for the intelligent mind
for their business and they try to set a scalable model for the business.

Social entrepreneurship: Most of the time social entrepreneurship tries to solve the problems
that exist in society by delivering great product and services solutions. They are just made a
focus to create a better world for the inhabitants of the world. These business models can be for-
profit or non-profit or the mixture of both.

Small business entrepreneurship: Small business entrepreneurship can only run by the few
numbers of employees and the owners of the ventures. Mostly, they try to focus their new lead
and client besides the development of their business product and services because they can only
make a small amount of profit as a start-up (DOWN, S. 2010). The partners of the business most
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of the time are the family members and their closest friends. However, there are hundreds of
small businesses in the country that boost up the economy continuously.

Large company entrepreneurship: The finite life cycle, sustainability and the long term
activity of the large company entrepreneurship makes it different from the other ventures. The
marketplaces are so dynamic and customers’ habit and demand change on a dynamic basis. They
try to focus on market research and bring out the new, innovative product in their different time
duration of the business life cycle (CARTER, S. and JONES-EVANS, D. 2012). Sometimes a
large organization makes the disruption of the current market with the innovative product and
services that create also a new market for the ventures. However, this type of business model can
be very risky as startup ventures. British Petroleum is one of the examples of large company
entrepreneurship.

P2
Exploration of the similarities and differences among Entrepreneurial ventures

As a startup, there have some similarities and differences among Entrepreneurial ventures. These
are the following:

Factors Scalable startup Social Small business Large company

entrepreneurshi entrepreneurshi entrepreneurshi entrepreneurship(Britis
p p p h Petroleum)
Objective These types of These types of These types of These types of startup
s and startups try to startup try to startup are aiming to create a
goals bring about provide better always less goals sustainable market for
innovative and objectives the long term benefit and
services and
products to oriented. So they develop innovative and
achieve high good quality achieve less new product or services
profit. products for profit and to compete for the
social well being growth. market
to create a better
world (Burns, P.,
2011).
Employee It depends on the It depends on the Employees can Employees could be
number size, operation, size and capacity be less than 50 in more than 1000 in
and structure of the business to number. number.
serve
Risks Because of The risks are The competition A large business can sell
having a relatively very is high among a great volume of
financial low in this the competitors products because of its
investment, the business model but the risks are
brand value that
pressure for because the relatively low
profit is high. government and minimizes its risks a lot.
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That makes the charity help them The business risks are
business risks so a lot to operate. medium for them
high. (DOWN, S. 2010).
Structure The partnership Most of the time, These businesses The structure of the
could be limited trustee based run by the sole organization is very
and run as follow up proprietorship. complex because of its
corporations maintain in the So there have no entity as a private or
mainly. organization proper structure public company.
to follow.

Source: (Brenkart, 2017)

M1
Investigating in a diverse range of entrepreneurial ventures to demonstrate an
understanding of entrepreneurship in both the public and corporate sectors.

Public sector: The government directly control and interfere with public sector organizations.
The higher amount of investments goes to those organizations from the government and the
strategic help comes most of the time from different private sector organizations to secure the
best outcome (Burns, P., 2011). The main aim of these organizations is to deliver better quality
products and services and it serves in different sectors of the economy. Social well being and
development is the first target for these organizations.

Corporate sector: The ownership of these organizations could be individual or in public forms
and run with the private decision of the owners. British Petroleum is one of the companies in the
corporate sector. They identify and implement a lot of marketing strategies to deliver the best
quality of the product and services to the customers (Scarborough, N.M., 2016). Their
profitability increases their longevity to serve the customer .they always have to invest on their
own and sometimes get bank loans and some advantages from the government as well. They
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have to compete with other competitors and try to sustain in the market with profitable customer
relationships with the customers through their competitive advantage.

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

The vision, mission, and objectives are different for the different venture organizations that may
affect the scope of those ventures. They can only sustain for the long term if they can bring out
the best quality product to the market according to the dynamic demand of the customers
(Drucker, P., 2014). Sometimes, getting new investment is so tough for the new entrepreneurial
business model. But if they could make a good focus on the customer's demand and try to find
out a better solution for the customers, this will be easier for the startup. They need to develop an
effective communication structure among the several departments of the ventures to run the
business to the right goal. The product and services they offered to the market should meet the
dynamic demand of the customers as well as look forward to the pricing and marketing strategies
to sustain in the competitive marketplaces.

British Petroleum:

Mission Statement

In all the activities we seek to display some unchanging, fundamental qualities - integrity,
honest, dealing, treating everyone with respect and dignity, striving for mutual advantage and
contributing to human progress.

Vision Statement

To have the best competitive corporate, operating and financial performance. To improve, and to
be accessible, inclusive and diverse.

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

A higher part of the industry is captured by the micro and small business that contributes also
highly for the benefit of the economy of the country. Day by day, the total numbers of small and
micro businesses are increasing and it supplies quality products to the market as well as creates
more employment.
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Source: (Schaper et al. 2014)

In the UK, the total numbers of small and micro businesses are high in the respective industry.
About 4.5 million SMEs are established within 2019 throughout the United Kingdom. It is
almost 99% of the total business that runs and operates throughout the country .the contribution
to GDP is very high that comes from these businesses. Among all of the industry businesses, the
micro-businesses provide the most employment from 0 to 100 people according to the business
model and the turnover is nearly 37% for these businesses.

According to the shown graph, small business is more than the other medium and large business
and it generates more turnover than the other with a comparatively low risk.

Source: (Burns, 2011)

These types of small and micro-businesses can be categorized as the innovator, on the –
innovator, exporter, and non-exporter.

P4
The importance of business startups to the growth of the social economy

Growth of social economy: the entrepreneurial start-up's businesses have a great influence on
the growth of the social economy in every country as well as the United Kingdom. The new and
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innovative ideas of the start-ups business bring a new product to the market most of the time that
is comparatively good than the existing solution of the market problems (Burns, P., 2011). If
they can do this, they soon start to capture the market and start to make a profit .sometimes they
can generate a lot of amount or larger volume of market revenue through increasing more and
more market share. They create a lot of employment opportunities in the country. The
government gets tax from them that increases the revenue of the government.

Besides these activities, entrepreneurial start-ups try to make a lot of CSR activities to society.
These kinds of social, environmental CSR activities increase their brand awareness as well as
brand value. The increase in the total GDP of the country ensures the high standards of living of
the people throughout the UK.

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

The total number of entrepreneurial small and medium businesses is high than the large
organizations in the United Kingdom. They are the most portion of any industry within the
country and it continuously contributes to the economy and for the GDP for the United Kingdom
(DOWN, S. 2010). Because of the large size and greater operation capability, the large
organizations make a larger profit than the small and medium-sized organizations. Larger
organizations help the United Kingdom to earn a lot of foreign currencies from the established
business outside the country. Larger organizations need more employees and big amount of
financial investment than the small and medium-sized businesses. In according with the large
organizations, small and medium businesses make export that helps the United Kingdom to earn
foreign currencies also.

D2
Critically examine the ways small businesses have an impact on different levels of the
economy in a global, regional, national and international context

On different levels, small businesses make different effects on the economy in the United
Kingdom. For the regional and national context, small businesses employ the unemployed
person. They have a small number of investments, so they have to compete with different
challenges in the marketplaces (Drucker, P., 2014). They have to ensure the employee’s salary,
provide a better quality of the product to meet the customer demand and try to sustain in the
market as well. For the global and international context, small businesses of the UK export
different products and services throughout the world. They increasingly open up different
branches around the world and try to meet global demand. The people outside the UK get the
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solution of their problems. The earnings of foreign currency make great contributions to the
economy of the United Kingdom.

P5
Determinations of the characteristic traits and skills of successful entrepreneurs that
differentiates from other business managers

Entrepreneurs must have some essential traits and skills to start a business and run it
successfully. The lack of capital and human resources, it is very difficult for the entrepreneur to
make a successful run of the business. The traits and skills of a successful entrepreneur are as
follows:

Traits:

The capability of generating innovating ideas

The risk-taking ability
Having a clear goal and vision
Intrinsic motivation to reach the goal
Desire for success

Skills:

Good management ability to the human, financial and business-related resources

High communication skill to interact with different stakeholder
Outstanding leadership skills to direct the employees for the vision
Negotiation skill to make a deal with the clients and uncertain situation
Proper time management skill to achieve the goals

P6
Assessment of the ways aspects of the entrepreneurial personality reflect entrepreneurial
motivation and mindset

The risks associated with entrepreneurship are so high. The entrepreneurs must have the
assessment ability and intrinsic motivation to deal with uncertain risks (Drucker, P., 2014). The
personality of an entrepreneur always seeks new ideas and opportunities to serve the customer
most efficiently and effectively. The innovative ideas and implement it to generate more profit as
well besides capturing the market shares. The ability to use the limited resources for the
unlimited demand inefficient way makes an entrepreneur's personality so strong to be successful.
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The strong side of an entrepreneur's personality is to seek new ideas and managing risk as
efficiently as possible and having a clear vision about the goal to achieve it.

M3
Exploring and examine different lines of argument relating to entrepreneurial
characteristics

The characteristics of an entrepreneur and a leader have some high similarities. The
entrepreneurs have to set the goal for the business, minimize the risks associated with the
business operation and make strategies to smoothly reach the goal. They have to meet with
different kinds of stakeholders like employees, suppliers, investors, and distributors. They
allocate limited resources for the best use of it and to execute the business plan effectively.
Communication, management and time management capability help them to manage uncertain
problems while running the business (DOWN, S. 2010). The conflict management ability helps
him to be a good leader and entrepreneur. The passion and motivation to achieve the goal make
him do the right things always effectively. At last, entrepreneurs ensure the achievement should
be fruitful according to the plan to grow the business. For this reason, a good entrepreneur is also
a good leader for the organization and society.

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

Elon Musk is the founder of SpaceX and co-founder of Paypal. He is a dynamic business
entrepreneur. His money transaction business Paypal is known throughout the country. He has
shown his innovative ability in different fields of business. He brings out the most innovative
electric car and electric jet to the market. He focuses on the future and minimizes the wastage of
the resources in his Tesla electric car project. He is one of the most high-risk taker entrepreneurs
in the present business world. In his SpaceX, he showed an effective way of using a rocket. It
was such marvelous discoveries by an entrepreneur. Now, he is regarded as one of the most
innovative entrepreneurs also.

Mark Elliot Zuckerberg, an internet entrepreneur, co-founders of Facebook. Zuckerberg created

some innovative thinking’s about the social platform. Then he took the risk to make it as a
business platform. This man has the management and communication skill beside the innovative
skill. The entrepreneur's skill of seeking new business opportunities gets him a vision to make a
platform where everyone could interact with each other globally. He founded the social network
platform and made it popular within a short period. He also launches the Internet.org to provide
internet service among the 5 billion people throughout the world. And now, he is one of the most
successful entrepreneurs in the internet industry.
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With innovative ideas, both of them contribute to world business and make life easier for people
around the world by enabling them to be more and more efficient and knowledgeable.

Task-2:

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

On a business, personal background and experience make a high effect on the entrepreneur.
Sometimes with having a business degree, the entrepreneur can foster his business
entrepreneurship more easily. Also, the business family background teaches and makes
experiences of different traits and skills in business. Example: - The Ambani family in India,
they have a great opportunity to learn the business and Mukesh Ambani did the same thing. He
learns a lot from his family and fosters his entrepreneurship with the help of these traits and
experiences (Drucker, P., 2014). The support from the family and friends for a startup business
must be needed. They provide motivation and encourage the entrepreneur to take the risk. The
business experience of the entrepreneur also helps him to run the business efficiently to reach the
target. But sometimes, the bad experience can make an entrepreneur to be afraid about the risk-
taking and its consequences.

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

Personal background and experience help an individual to be a successful entrepreneur. Elon

Musk, the founder of the SpaceX, gather experience from his Paypal and X.com business. Then
with the experience and the good entrepreneurship characteristics, he founded SpaceX. Now
SpaceX is a successful organization and Elon Musk is a successful entrepreneur. Again he builds
up a strong business experience base and starts the electric car business, Tesla. Now he is
positively motivated to operate his business activities. So, the characteristics and the background
and experience make an entrepreneur more motivated to take the risk to build a new start-up.

D4
Critically evaluating the ways background and experience influences entrepreneurship
both positively and negatively by comparing and contrasting examples
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Background and experiences influence an entrepreneur in both a positive and negative way. In
the first time experiment, Elon Musk failed to experiment with the first rocket launch in his
SpaceX business. He was very afraid of his second rocket launching. The failure experience
makes him afraid but the successful experience gives him motivation. The positive experiences
boost up positive and negative experiences down the entrepreneur.

Conclusion
The entrepreneurial start-up business can be in different types such as small, medium and large
businesses. In the United Kingdom, small businesses hold the maximum part of every different
industry. Entrepreneurs need to have different business skills as well as good background and
positive experiences to overcome the challenges of the business and to be the successful
entrepreneur.

Reference
 Brenkert, G.G., 2017. Entrepreneurship, ethics, and the good society. In
Entrepreneurship (pp.85-128). Routledge.
 Burns, P., 2011. Entrepreneurship and small business. Palgrave Macmillan Limited.

 DOWN, S. (2010) Enterprise, Entrepreneurship, and Small Business. London: Sage.

 CARTER, S. and JONES-EVANS, D. (2012) Enterprise and Small Business: Principles,
Practice, and Policy. London: Pearson.
 Schaper et al. (2014). Small business and entrepreneurship. Financial Times/Prentice
Hall.
 GRIFFITHS, A. and WALL, S. (2011) Economics for Business and Management. 3rd
Ed. Harlow: Pearson.
 Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
 Kirzner, I.M., 2015Competition and entrepreneurship. University of Chicago press
 Kuratko, D.F., 2016. Entrepreneurship: Theory, process, and practice. Cengage
Learning.

 Scarborough, N.M., 2016. Essentials of entrepreneurship and small business

management.

 Websites

The Institute for Small Business and Entrepreneurship (ISBE) website: www.isbe.org.uk
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