Unit 9

Entrepreneurship & Small Business Management

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Contents
Introduction.................................................................................................................................................3
Task 1..........................................................................................................................................................4
Lo4...........................................................................................................................................................4
P1: Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship..............................................................................................................4
P2: Explore the similarities and differences between entrepreneurial ventures.................................6
LO2..........................................................................................................................................................8
P3 Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on the economy.......................................................................................................................8
P4: Explain the importance of small businesses and business start-ups to the growth of the social
economy............................................................................................................................................10
LO3........................................................................................................................................................12
P5: Determine the characteristic traits and skills of successful entrepreneurs that differentiate them
from other business managers..........................................................................................................12
P6: Assess how the aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mindset.......................................................................................................................................13
Conclusion.................................................................................................................................................15
References.................................................................................................................................................16

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Introduction
This assignment is all about businesses and entrepreneurship. In this assignment, different kinds
of entrepreneurial ventures will be discussed. Along with that typology of entrepreneurship will
be shown too. How many kinds of entrepreneurial ventures are recognized in a company like
Diageo will be found in this assignment. There will be some information regarding Brexit too.
What Brexit is, what opportunities Brexit creates for a business and what threats it has will be
here in this assignment. Small businesses and start- ups and how they are different will be shown
in this assignment. Micro and small businesses are also included. 

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Task 1
Lo4
P1: Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship
Entrepreneurial ventures usually target big amount of return with equal amount of uncertainty.
Entrepreneurial venture is always focused to provide all advisory services to the middle stage
and new businesses. Entrepreneurial venture is to work with the troubled company while
refocusing on the business models or to find an appropriate one.
An entrepreneur is he or she who sets up a business or different business, holding financial risks
in the hope to get some profit. And the work of entrepreneur is entrepreneurship. Like, the
process of launching a new business is called entrepreneurship (Smith, 2013).

Diageo is a multinational alcoholic beverages company in United Kingdom. This large British
company’s headquarter is in London. They got above 29,917 employees working for them and
over 12 billion of revenue. Talking about the entrepreneurial venture, Diageo goes for large
company entrepreneurship.

Different Types of Entrepreneurial Ventures

The types of entrepreneurial ventures refer to some different type of entrepreneurship. They are
sorted by so many things into four main types. The four major entrepreneurial ventures are
described below (Sahlman, 2014),

 Small Business Entrepreneurship: The most common and most popular one is small
business entrepreneurship. This kind of entrepreneurs can be anyone who starts in a small
surrounding. In most cases, small businesses are often sole proprietorship businesses as
when there only one owner, it is often seen that he or she opened a small business with a
small amount of capital, resources and goods. Small businesses can be grocery stores,
consultants, electricians, and beauty parlor business and so on. Sometimes they need to
hire workers too and at that time, the closest people are prioritized first. The owners may
also get financial sources or loans from the nearest people first like family, friends and
relatives and then banks.

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  Scalable Startup Entrepreneurship: Opposing small businesses, entrepreneurs start with a
motive to do much wider and broad. These people attract investments from equal
interested financial investors. The brightest and best are to be hired. The job is to research
and find scalable and repeatable business models and whenever they are found by the
owners, the focus that is on scale needs farther more venture investment to enhance the
rapid expansion (DRAEBYE, 2019).
 Large Company Entrepreneurship: The root concept of this kind of entrepreneurship can
be referred to an advancement of newer opportunities and chances within the large and
well established brands. The finite cycles are having by large companies. Different
customer tastes and changes, competition and new adaption can bring pressure on this
kind of businesses and innovation becomes tough to execute. Diageo is one of this kinds
of businesses that work wide and thing broadly.
 Social Entrepreneurship: The social entrepreneurs focus deep to form new innovated
products and concepts for solving the society’s dilemmas. All of this kind of
organisations are not always nonprofit as some of them are working based on increasing
profitability. These entrepreneurs are innovators to figure out and finding solution to
social problems. Beside nonprofit and profit, these organisations can be hybrid as well
(Bornstein and Davis, 2012).

Typology of Entrepreneurship

Entrepreneurship typology is actually a term that bases on classifications of different kind of

entrepreneurs. The relationship among different entrepreneurs and these typologies will be
showing below (Alecchi and Marković, 2012),

Lifestyle Entrepreneur: lifestyle entrepreneurs seek modern, whelming, passionate and

comfortable working tendency with some new ideas of business. They do not believe in working
without joy, or on a regular boring routine. They create different routine and enjoy their working
time. Startups can be opened by this kind of entrepreneur.

Female Entrepreneur: In today’s business world the businesswomen are holding a huge amount
of business responsibilities. They are working as managers, directors, CEOs and the

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entrepreneurs. Female entrepreneurs are found enough dedicated and devoted to their business
plans. Much of them are encouraged to be in small entrepreneurships are they are connected
well through societal activities and they can give a start of their business staying even at home as
a small business entrepreneur (McAdam, 2013).

Male Entrepreneur: Male entrepreneurs are holding most of the leading positions of the entire
business world. They are found very hard-working, motivating, understanding and at the same
time a very good leader who can run and operate the business well.

Social Entrepreneur: Social entrepreneurs are more devoted in societal good and well- being.
They work for the society, in the society and with the society. The society is always benefitted
by this kind of entrepreneurs. Actually, the social entrepreneurships are made by this kind of
entrepreneurs who keep the intention and motive to do volunteer and work for others.

Serial Entrepreneur: Serial entrepreneurs always come up with newer thoughts and ideas to keep
going on their businesses so well. They always continue working with greater and newer flow to
go ahead to succeed overhead. They are just opposed to the typical entrepreneurs. Large
company entrepreneurships are run by this kind of entrepreneurs who work effectively
(Lafontaine and Shaw, 2014).

Typical Entrepreneur: Typical entrepreneurs are often behaving very odd and typical in sense.
They may commit any unethical way to succeed rather than working for late or finding newer
models. Typical entrepreneur may succeed for a while or gain profit at that moment but the
initial future result is going to be very poor.

P2: Explore the similarities and differences between entrepreneurial ventures

Similarities and dissimilarities of Entrepreneurial Ventures

There can be many differences and dissimilarities found among different kinds of entrepreneurial
ventures. The main four types of entrepreneurial ventures are taken to differentiate and match
throughout a description,

Similarities:

 Four of them are closely at holding risk.

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  Leaving social entrepreneurships, all three are enough motivated to increase profit.
 Leaving social entrepreneurships, these three sell open goods and products.
 The main intention is to earn leaving social entrepreneurships.

Dissimilarities:

 The risk level is different and the risk taking tendency also defers from each other
massively.
 Leaving others, social entrepreneurship does not think of increasing profit.
 Unlike others, social entrepreneurship provide directs services, voluntary, help rather
than selling goods or products.
 The main intention is to provide unlike other categories.

Similarities and Dissimilarities between Lifestyle and Serial Entrepreneurs

Similarities: Lifestyle and serial entrepreneurs always keep going and they never stop. They love
to go with the flow and bring success to each of their business. While lifestyle may demand
newer working environment, serial entrepreneurs demand newer ideas over that. These two kinds
are initially related and very similar.

Dissimilarities: Even after being so much closer than other entrepreneur type, lifestyle and serial
entrepreneurships got some differences also. The lifestyle can be older or a traditional lifestyle
might be preferred by the employees but serial prefers new. So, here the conflict begins. Also,
lifestyle entrepreneurs need to think about each individual of the office for their comfort. While
coming to serial entrepreneurs, there are a few people to think about the new model or a team.
Lifestyle can be much complicated sometimes where serial one is all well-arranged.

Similarities and Dissimilarities of Female and Male Entrepreneurs

Similarities: In business, the intelligence and cleverness are more important that a specified
gender. Yet, the female and male entrepreneurs are categorized and are often similar to each
other. Like, both of them are focused entrepreneur. They both love competition and taking
challenges to face with greater strength.

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Dissimilarities: Sometimes, any of male or female entrepreneurs can be partial to his or her own
gender. Male entrepreneurs are more challenging than female ones where females are more
competitive and attentive. Male entrepreneurs may face indecision and take lengthy process
where females often respond immediately.

LO2
P3 Interpret and assess relevant data and statistics to illustrate how micro and small
businesses impact on the economy
Micro businesses are operated in a very small scale for what these are called micro business.
This significantly put impacts on many different industries and being expected to grow
importance continuously. Micro businesses have annual sales and assets valued minimum
250000 per year and in total 5 employees.

Small businesses are a little bigger than micro businesses. They can employ employees from
outer sources and are limited in size. The manufacturing facility includes less than 25 employees.

Medium sized enterprises are limited to 100 workers from 25 workers and the amount needs to
be 100 million but not more than that.

The impact of small is medium enterprises on the worldwide economy is very visible and
remarkable. Small and medium enterprises account for majority of worldwide businesses and are
contributing to greater job creation and economic development.

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 Figure: SME Global Economic Impact
Source: [Link]

The representation is about 90% of business and 50% of employment all over the world. Also
formal small and medium businesses tribute to 40% of gross domestic product in the emerging
economies. About 600 million jobs requirements will be there within 2030, that makes SME
development very important and to be highly prioritized.

Figure: MSME Finance Gap in Developing Countries

Source: [Link]

SMEs are not that much able to obtain loans from banks than the large firms like Diageo. They
mostly rely on personal and internal funds including their savings account. The IFC estimated
that 65 million of firms where 40% in formal micro, small and medium business in

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underdevelopment countries, have unmet financial need of about 5.2 trillion dollars each year,
that is also equivalent to 1.4 times of the current rate of global MSME lending.

P4: Explain the importance of small businesses and business start-ups to the growth of the
social economy
Brexit was recognized when the United Kingdom proposed its withdrawal from the European
Union. Though more than half of the population voted to leave in 2016 but it was formally
announced by the UK Government in 2017. 
There are some opportunities for businesses created by Brexit. These are,
1. According to Brexit, we need to use our knowledge in order to have a great influence on
businesses. Many questions can occur while conducting a business. Questions can be
about the regulatory consequences, about the contractual exposure etc. The answers need
to be found correctly. 
2. We can make profit with the help of the suppliers who are confused. Like- there are some
suppliers who get this fear of having losses and they want to make their businesses long
term by dropping prices. Help can be taken from them. 
3. UK based businesses that are regulated by the EU are uncertain nowadays. So with the
help of Brexit, we need to set our own goals in order to make our businesses sustainable. 

Brexit also has some Threats. Like,

The requirements of hiring employees will be changed. It will affect the business. The supply
chain of the company will get affected. It will happen because of tariff. Another reason can be
the requirements of the origin country. There will be an influence on funding. Because the EU
will stop giving funds. And this is another threat on businesses. There will be issues regarding
brand names too. 

Differences between small businesses and start-ups:

1. Innovation is the first difference between a small business and a start-up. In small
business, there is no innovation most of the time. Any regular business category can be

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 started as a new small business. But in case of startups, owners bring something new and
start the businesses. 
2. A small business while starting, there is a limitations set for the business. But in case of
start-ups, there is no limitation. Neither the growth nor the market share, nothing is
limited. 
3. In small businesses, profit is a must from the very beginning. The business starts to make
profits. But in start-ups, first the company establishes its products and then goes for
making profit. 
4. Small businesses mostly make investments with the help of his own capital, help from
family, friends etc. But the start-ups take help from many investors and banks. They
collect funds too. 
5. Small businesses are successful most of the time. Only 32% of them are shut down. But
start-ups are most likely to fail. 92% of start-ups are shut down during the first three
years.

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LO3
P5: Determine the characteristic traits and skills of successful entrepreneurs that
differentiate them from other business managers
There are many entrepreneurs around the world. But all are different from one another. And not
only that, they are different from other company managers too. They all started their journey
from nothing and then they became world famous entrepreneurs. 
Two such entrepreneurs are J.K. Rowling and Steve Jobs. There are many things that made them
two different persons. The traits they have are sometimes similar and sometimes completely
different from each other. 
1. J.K. Rowling was a person who looked out for freedom. She wanted freedom and wanted
to be on her own. She travelled and searched for stories. She likes to meet new people,
likes to visit new places and makes new friends. Whereas Steve Jobs used to like silence.
He did not like many people. He wanted space, his own privacy and wanted to be alone.
That is how he liked to work. 
2. In her marketing strategy, J.K. Rowling set a vision and worked to achieve that vision.
She always had this in herself that one day she would become a writer and that aim made
her passionate and successful. In the first marketing strategy of Steve Jobs, he decided to
make products as per the demand of the consumers. He made products to fulfill the
demands of the people. 
3. Throughout her journey, J.K. Rowling had to face some troubles and losses. But nothing
could make her give up and she kept going. This strategy of hers made her a successful
entrepreneur. No failure could stop Steve Jobs too. Throughout his journey, he had to
face some ups and downs too. But he overcame all of them and found success. 
4. While as an entrepreneur J.K. Rowling kept her customers limited. She brought things
but her targeted consumers were the same. She did not target many new people. But in
his marketing strategy, Steve Jobs brought new versions of his Apple products in order to
attract more customers. His targeted customers are in a big portion. 

These traits made them different entrepreneurs and also made them successful entrepreneurs.
They were passionate, skilled and educated. They had business knowledge. And with the help of
all these things, they became successful entrepreneurs. These traits make them different from
other business managers. Because- 
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 1. Most business managers are not that skilled but yet they go to run a company. But these
people are very skilled. And with their skills, they made their business successful. 
2. Most business managers work to achieve profit. But these entrepreneurs worked to fulfill
consumer demands. Their first target was to satisfy the consumers and so they brought
products or services by keeping the requirements of the consumers in mind. 
3. Many businesses fail or shut down because the managers cannot keep up with the ups and
downs. But they faced every trouble and made comebacks every time. No failure could
stop them from success. 

Many businesses arrive, many businessmen arrive and so do arrive many entrepreneurs. But not
all of them are skilled and successful. Many things make them different from others. 

P6: Assess how the aspects of the entrepreneurial personality reflect entrepreneurial
motivation and mindset
An individual having entrepreneurial personality tends to be different from other since he has an
improved mindset and motivation. The following characteristics of his or her personality reflects
entrepreneurial motivation and mindset (Chell, 2013),

Freedom Loving: An entrepreneur loves to work with freedom. He wants to do it all in his own
way. An intention to do everything in own style and process reflects entrepreneurial motivation
and mindset of an entrepreneur (Nelson, Dancy and Smith, 2012).

Bravery: To be success in an entrepreneurship, bravery is a must. A true entrepreneur is he or she

who can be brave enough and ready for any kind of issues or hassles that might come to them in
future (Goldsworthy, 2011).

Perseverance: It cannot be expected that a business will bring success to its owner overnight.
There might come various issues, for example facing loss in the initial years of a business is very
normal. For this issues, the entrepreneur always needs to be ready have the necessary
perseverance.

Intuition: Intuition is something that helps to stay ahead of time. A good entrepreneur always has
a pretty much improved sense of intuition. What he decides once with his or her intuitive

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thought, can actually turn out to be a major turning point for the organization if rightly implied
(Smith, 2013).

Risk Tolerance: Risk tolerance is something that is there as a basic in every positive and
successful entrepreneur. A true entrepreneur has a high sense of patience and he has to adopt the
risk tolerance ability in it.

Visionary: A true entrepreneur possesses a perfect and detailed idea of the business. He relies on
his experiences and intuitions for taking decisions. He or she has a good vision of the whole
business to understand what should be their initial actions regarding the business.

Business skills: Having the right and diverse business skills is very much important for an
entrepreneurial entity. An individual who tend to have a good and strong entrepreneurial
personality, must be diverse enough to have the necessary business skills (Barker, 2013).

Persuasion: Only the most persuasive people can contribute to an organization or his/ her
business. Persuasion is what make people determine enough and then they get much more
desperate to get into the place of their business.

Winning Mentality: A true entrepreneur is he or she who wants to win things, and do not get
satisfied from any aspect unless he has grabbed that success. In order to ensure the win or
success, a true entrepreneur can do anything, He never likes to settle down with what he or she
has, unless the target has been reached or win is gained.

On the basis of the discussion above, we can conclude that the people who has an entrepreneurial
personality, tends to be a bit different than the others. They are much more hard working and
dedicated. The best part of the whole story is that, the people having an entrepreneurial
personality reflects entrepreneurial motivation and success, which helps him to be successful in
the long run.

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Conclusion
By reading this assignment, the students will learn many things. The entrepreneurial ventures
like small business, scalable start-ups, large companies etc that are practiced in Diageo are
shown here. Then comes the differences among them. We will learn about the typology of the
entrepreneurship that are lifestyle entrepreneur, female & male entrepreneur, social, serial etc.
entrepreneur. Not only these, by reading this assignment the similarities and dissimilarities of
many entrepreneurial ventures will be utilized too. Also, the students will learn about Bretix
which is a very important issue of this era. And how Brexit affects businesses and how the
students can take help from Brexit will also be known. 

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References
1. Alecchi, B. and Marković, M. (2012). Entrepreneurship Typology.
2. Barker, L. (2013). Business skills exercises. Australia: South-Western Cengage Learning.
3. Bornstein, D. and Davis, S. (2012). Social entrepreneurship. New York: Oxford
University Press.
4. Chell, E. (2013). The entrepreneurial personality. Hove, East Sussex: Routledge.
5. DRAEBYE, M. (2019). STARTUP ENTREPRENEURSHIP. [Place of publication not
identified]: BOCCONI UNIV PR.
6. Goldsworthy, A. (2011). Being brave in business.
7. Lafontaine, F. and Shaw, K. (2014). Serial entrepreneurship.
8. McAdam, M. (2013). Female Entrepreneurship. Hoboken: Taylor and Francis.
9. Nelson, M., Dancy, D. and Smith, V. (2012). Business Freedom.
10. Sahlman, W. (2014). The entrepreneurial venture. Boston, Mass.: Harvard Business
School Press.
11. Smith, W. (2013). Entrepreneurship. New York: Facts on File.

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