London School of Science

and Technology
Pearson BTEC Level 5 HND

ESBM
Diploma in Business
Unit 9: Entrepreneurship and Small
Business Management

Assignment Title: Entrepreneurship and Small

Business Management

Assessor Name: Festus Louis

Internal Verifier: Dr. George Panagiotou

Issued on: 30th January 2017

Deadline: 12th May 2017

Submitted on:
Student Name:
Student ID: Campus: Alperton
Pearson Registration Number:

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London School of Science & Technology

Task One: Report

To

Line Manager

Entrepreneurship and Small Business Management Council (ESBMC), UK

Subject: Report for perspective Entrepreneurs

Dear Sir

Entrepreneurship is very important for all kind of new business organization. It is the beginning of
new business organization in the market who are come up with new and innovative ideas. Owner of
the new business organization uses particular entrepreneur ventures and typology which helps them
to success in their business.

P1: Examine different types of entrepreneurial ventures and explain how they relate to
the typology of entrepreneurship ventures, including examples of each type.

Entrepreneurship: The traditional definition of entrepreneurship is come up with innovative idea

and start up or launching a new business or organization as a small business. The business holders
are called entrepreneurs. In the economics term, entrepreneurship is, land, labour, capital and others
resources together produce goods and make profits.

There are three types of entrepreneurial ventures which are discussed below:

1. Entrepreneurial: This types of entrepreneurs are also known as Schumpeterian

entrepreneurs. This types of entrepreneurs are mostly start new business and operate it. They
are the owner and independent director of their business (Perrini, 2006). Mainly they are
come up with new and innovative idea. They set up plan and idea for the particular product
and run their business successfully.
2. Intrapreneurs: This types of entrepreneurs are the employees of organization. They
implement various innovative and new ideas for the organizational not for their own. If they
make mistakes, organization blame them and never consider their efforts. When they are
experience start their own business and become Schumpeterian entrepreneur.

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3. Managerial: This types of entrepreneurs are not come up with innovative idea and do not set
their objectives for a specific goal and profit maximizing. They are not characterized for their
innovative practices.

Entrepreneurs’ typology are discussed below:

1. Smith Entrepreneurships: Smith Entrepreneurship is basically two types. They are-

Craftsmen Entrepreneur and Opportunist Entrepreneur.
 Craftsmen Entrepreneur: It is a kind of entrepreneurs who has proper business
knowledge, come up with innovative idea and start up a new business. This
entrepreneur typology match with entrepreneurial ventures (Bohlman and Golden,
2011). Because the main idea of the venture is same as this typology. Both are
come up with new idea and start a small business.
 Opportunist Entrepreneur: This types of entrepreneur are always searching for
the opportunity. They proper knowledge and innovative idea for business. If they
get opportunity then can start a small business. This entrepreneur typology is
similar as Intrapreneurs. Employees had lots of experiences while they are
working any organization. Whenever they get chances try to open their own
business with their innovative idea and thought.
2. Collins and Moors Entrepreneurship: In 1970, Collins and Moors develop two types of
entrepreneur typology. They are- Administrative Entrepreneurs and Independent
Entrepreneurs.
 Administrative Entrepreneur: Organization employees are follows this
typology. And it is same as Intrapreneurs. Organization employees are work using
their own innovative idea for organization’s well-being.
 Independent Entrepreneur: This is same as entrepreneurial. New small business
are start-up and the owner come up with different innovative ideas.
3. Julien and Machesney Entrepreneurship: Develop two types of entrepreneurs based on
some particular issue. 1. PIG and 2. GAP.
 PIG: This typology develop based on perpetuation, independence and growth. It
is similar as Entrepreneurial ventures. Owner of the business organization,
maintain all the criteria for their business growth. Their main goal is come up with
new idea. They run their business independently.

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 GAP: This typology also based on growth, administrative and perpetuation. This
is same as Intrapreneurs. Employees work using their own idea for increasing
organizational profit growth.

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P2: Explore the similarities and differences between Social Entrepreneurship and
Lifestyle Entrepreneurship, including two existing examples of each.

Social Entrepreneurship: Social entrepreneurs are basically no-profit organization. This basically
refers that, start up new company and Social entrepreneur organization work for developing the
company, funding, ideas and other resources (Praszkier and Nowak, 2012). Sometimes business
organization take helps form this entrepreneurs for maximize their profit.

Lifestyle Entrepreneurship: An individual start up business do not maximizing their profit. They
are more focusing on the passion. Means employees are working for their passion or for earning
money. This is a way which bring success for the business organization.

Similarity between Social and Lifestyle Entrepreneurship

Basis Entrepreneurs Intrapreneurs Managerial

Intensity towards Higher intensity to Intensity for achieve They are always highly
goal achievement achieve organizational organizational goal intensive
goal and profit
Tenacity If any error occur Tenacious for solving Tenacious for solving
any kind of working organizational error
error
Ultimate Goal Producing innovative Achieve organizational Maximize the output
product and goal and maximize the
maximizing profit profit
Personal Efficiency Highly effective Try to give higher Higher personal
efficiency efficiency
Capacity Analysis Highly capable for High capacity to Highly capable
overall analysis understand overall
organizational work

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Differences between Social and Lifestyle Entrepreneurship

Basis Entrepreneurs Intrapreneurs Managerial

Main Challenge Worried for financing Has to follow Can take decision and
and opportunity administrative culture share thoughts
and rules independently
Decision Making Can take all the No right for taking Take all the decision
organizational decision decision for organizational goal
and profits
Risk Higher risk taker Take risk for rarely risk taker
organizational work
Ownership Idea Owner give all the idea Organization give idea Both owner and
employees can give
idea
Reward Does not get reward Get reward for their Get rewards for
for their achievement success organizational success
Status Owner of the company Organization gives Managers are the
status agents of organization

Social and lifestyle entrepreneurship is different from of each other. Their purposes also differences.
Social entrepreneurship focuses on developing idea and funding where lifestyle entrepreneurship
focuses on employees passion.

From

Date:

Unit 9: Entrepreneurship and Small Business Management – January 2017

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Task Two: PowerPoint Slides

Unit 9: Entrepreneurship and Small Business Management – January 2017

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P3: Interpret and assess relevant data and statistics to illustrate how micro and small
businesses impact on the UK economy.

Business organization directly affect a country’s economy. Most of the GDP of a country come from
the business organization. In a country most of the business organizations are Micro and small types.

Micro Business

This types of business organization are less sized from small business. Its revenue is also less than
small sized business. Although its revenue is low but it is affect UK economy.

In UK, most of the business organization is micro size. Around 20% business organization are micro
size. The people who have no job or do not like to do any job mostly they involve into this types of
business (Micro Business Systems plc annual report. 1st ed, n.d.). Another reason behind involving
micro business is, most of the firm of UK may face bugger loss as a result employees are loss their
job. And living their life people involving in micro size business.

It may seems little business organization but it can produce lots of product which affect UK’s overall
GDP growth.

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Small Business

Small size business is little bit bigger than micro business. UK has around 40% small business
organization. Like micro business organization small business organization has great impact on UK’s
economy.

All business start up from a small business organization. Increasing the productivity and product
quality small business establish itself as a larger business organization. Besides that, small business
gives new employment opportunity to unemployed people of UK. In UK, small business
organizations are also helps bigger business organization and as well as insurance company (Storey,
2000). Some of the small business organization gives training to the new entrepreneurs of UK.

Small business organizations are not only helping UK’s GDP growth it also gives training to the new
entrepreneurs, gives job opportunity for unemployed people and work together with other business
organization.

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P4: Explain the importance of small businesses and business start-ups to the growth of
the social economy in the UK.

Most of the country’s economy depends on the business revenue. UK has lots of business
organization. Some are micro, some are small and some are larger in size business organization.
Most of it economic revenue comes from the business sector.

Business organization establishing themselves from micro to small and small to larger business
organization. Giving higher effort and increasing productivity they are able establish themselves.
This types of business organizations are come up with new idea and try to produce something
differences (Imperiale, 2005). They give their best effort for established their business. They are not
only effect on UK’s GDP and also open new job opportunity for the people with new ventures. They
also gives training and proper education to the new entrepreneurs.

Small business organizations are very important and essential part of UK economy. It is not helping
in UK’s GDP growth it also working together with larger business organization of UK and also
assessing the insurance company.

Unit 9: Entrepreneurship and Small Business Management – January 2017

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Task Three: Report

To

Line Manager

Entrepreneurship and Small Business Management Council (ESBMC), UK

Subject: Report for determination and assessment of the key aspects of entrepreneurial mind set

Dear Sir,

Entrepreneur is an important skill which helps new to start-up a new business. Using characteristics
skill and trait new entrepreneur can easily build up their business.

P5: Determine the most likely characteristic traits and skills of Elizabeth Gooch and
Tom Mercer, stating how they are differentiated from those of business managers.
Entrepreneurs are come up with new and innovative ideas and start up a new business. They have
some different characteristics trait and skills which lead them toward success.

Elizabeth Gooch

Elizabeth Gooch was the first lady who come up with entrepreneurship idea and start up a new
business named EG solution. She take orders and made software within a 6 months. She also gives
warranty to its product. The characteristics trait and skill of Elizabeth Gooch is given below:

Characteristic Trait-

 High Energy Level: Elizabeth Gooch was very energetics. She used to develop to
high quality of website and software by giving her best productivity. Her working
skill made her famous as a female entrepreneurs.
 Self Confidence Level: Entrepreneur should have self-confidence on their decision.
Elizabeth Gooch was confidence on his mind and decision which help her to develop
higher and good quality of software (Derr, 2002).
 Higher Need for Achieve Goal: For start- up a new business need higher financing.
When Elizabeth Gooch start her business she invested $1000 which she collected
from her family and friends.

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 Flexibility: Elizabeth Gooch was flexible with her customer. She gives warranty to
her software and return back based on quality of software.
 Passion: Elizabeth Gooch was so much passionate towards her work which tale her
towards the success.
Skill-
 Ability to Raise Money: Elizabeth was needed money for start-up her business. She
does not have so much funding on that time but she was capable to raising money
from his family and friends.
 Ability to Relive Stress: After working long period people get stressed. But
Elizabeth was capable to relive her stress by using various techniques and can work
perfectly.
 Ability to be Productive: Elizabeth was so productive. She make contract and
develop the software and delivered it within the time.
 Ability to Make Entrepreneur Friend: Entrepreneur friend is important. If one can
make entrepreneur friend then he can get various idea from his friend. Elizabeth made
friendship with Rodney Baker-Bates.

Tom Mercer

He is the person who made his own business idea from his time and food. And this is help him to
become a famous entrepreneurs.

Characteristics Trait-

 High Energy Level: Tom Mercer is higher energetics which helps him to give higher output
to his business.
 Self-Confidence: Tom Mercer was so much confident in his business idea and work on
according to his plan and become a successful entrepreneurs.
 High Need for Achievement: Mercer used his own saving for reach towards his goal.
 Flexibility: Mercer does not give so much flexibility to his customers.
 Passion: Mercer passionate towards his work and give his best effort for achieving business
goal.

Skill-

 Ability of Raising Money: Mercer did not need to raise money. He used his saving for start-
up his new business.

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 Ability to relive stress: He was able reduce his stress level and work perfectly.
 Ability to be productive: Mercer is so much productive which help him to increase his
business (Lesonsky and Anton-Conley, 2005).
 Ability to make Entrepreneur Friend: He did not make any entrepreneur friend because he
does not need it.

Differences between characteristics trait and skill of Elizabeth Gooch and Tom Mercer
manager

Elizabeth Gooch Tom Mercer Manager

Trait 1.Energy level is 1. gives his best effort 1. Try to give best
higher 2. Work passionate effort
2. Work passionate 3. does not give 2. Dedicated for
3. Gives flexibility to flexibility to the organizational work
the customers customer 3. He is flexible with
his employees
Skill 1. able to raise 1. does not give 1.Give importance for
funding importance for raising funding
2.productivity is money 2.Productivity is not
higher 2. Productivity is also so higher
3.successfully make higher. 3.Do not need make
entrepreneur friend 3. Do not make entrepreneur friend
entrepreneur friend.

Unit 9: Entrepreneurship and Small Business Management – January 2017

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P6: Assess how aspects of the entrepreneurial personality of Elizabeth Gooch (Case
Study 1) and Tom Mercer (Case Study 2) reflect their entrepreneurial motivation and
mind-set.

Entrepreneurial Aspects of Elizabeth Gooch

Motivation: Elizabeth got motivation from her achievement. When she was working in HSBC as
consultant she got so much response which make her confidence about her consultancy power. And
this set her mind to start-up a new consultancy business.

Entrepreneurial Personality of Elizabeth Gooch:

Neuroticism: Elizabeth never given emotional priority and anxiety on her work. She always
confident towards her plan which help her to becoming a successful entrepreneur.

Openness to Experience: Elizabeth is so much innovative and clam. Her silence and innovative
ideas established her business (Adelman and Marks, 2009).

Agreeableness: Elizabeth flexible with her customers and able to make entrepreneur friends. Taking
from friend she is able getting huge turnover from her business.

Entrepreneurial Aspect of Tom Mercer

Motivation: Tom mercer has taken his motivation on social basis. When he find out that, cooking
takes huge time for people and sometimes people get late for office or college. From this he take idea
and start-up food business.

Entrepreneurial Personality of Tom Mercer:

Neuroticism: Tom always confident to his idea. And he was relaxed. His food quality made him
famous as a result he decided to expand his business.

Openness to Experience: Tom seems clam but he was stick with his innovative ideas as a result his
food business is becoming famous day by day in UK.

Agreeableness: Since Tom is not flexible with his customer and do not like to make entrepreneur
friend but he is able to making huge profit by using his own idea.

Unit 9: Entrepreneurship and Small Business Management – January 2017

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Entrepreneurs are basically get business idea from their previous experiences. Elizabeth and Tom is
also success to become an entrepreneur from their previous experiences and they got motivation
from their working experiences.

From

Student Name

Date

Unit 9: Entrepreneurship and Small Business Management – January 2017

London School of Science & Technology

Task Four: Report

To

Line Manager

Entrepreneurship and Small Business Management Council (ESBMC), UK

Subject: Report on different environments that foster or hinder entrepreneurship

Dear Sir,

Entrepreneurship is very important to start up a new business. Owner of the new business
organization, used their experiences in business. Sometimes it become disadvantages for them along
advantages.

P7: Examine, using Elizabeth Gooch (Case Study 1) and Tom Mercer (Case Study 2),
how personal background and experience can hinder or foster entrepreneurship.

Background and Experience of Elizabeth Gooch

Background: Elizabeth Gooch establish her new business as named EG consultancy. She developed
software and sell it to the customer and also consult with the customers. Her customers also satisfied
with her service. Because she gives return warranty for her software based on the software quality.

Experience: As Elizabeth was working HSBC as a consultant which encourage her to start-up her
new consultancy business.

Advantages:

1. As she has consultancy experience, so she started a new consultancy business of her own
2. She developed good quality of software and within the specific time period which is create
image of her consultancy business
3. She is flexible to her customer. She has return policy based on the software quality which is
most appreciate able.

Altogether made Elizabeth Gooch as a successful entrepreneur and she is able to establish her own
business.

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Disadvantages:

1. Elizabeth Gooch was most focusing on software rather than consultancy which can create
Loss for her organization. Because EG company is a consultancy company
2. Elizabeth was not focusing on UK’s business cycle. She was focusing on expand her
business as a result she faced a great loss (Foster and Hölzl, 2004)
3. EG solution company faced loss for $70000 and $80000 in respectively 2007 and 2008
because of Elizabeth overconfidence

Background and Experience of Tom Mercer

Background: Tom Mercer used to sell prepared food in cart, train, and road. After getting customer
response and review he started his physical food business in UK.

Experiences: Tom was a professor of management consultancy. Using his idea and thoughts he
build up his food business.

Advantages:

1. MOMO is the first breakfast shop in UK which provides good quality of food
2. MOMO sells ready-made breakfast which attracted people so much because they are getting
food within less time.

Disadvantages:

1. MOMO could not serve breakfast as homemade food quality which bring less sale of their
food
2. At 2008, MOMO was expanding their business but for the recession they suffered huge
loss.

From

Student Name

Date

Unit 9: Entrepreneurship and Small Business Management – January 2017

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References and Bibliographies

Adelman, P. and Marks, A. (2009) Entrepreneurial finance. 1st ed. Upper Saddle River, N.J.:
Prentice Hall.

Bohlman, S. and Golden, E. (2011) Mobile food fusion. 1st ed.

Derr, D. (2002) Splitting as a characteristic of perfectionism. 1st ed.

Foster, J. and Hölzl, W. (2004) Applied evolutionary economics and complex systems. 1st ed.
Cheltenham, UK: Edward Elgar.

Imperiale, R. (2005) The micro cap investor. 1st ed. Hoboken, N.J.: Wiley.

Lesonsky, R. and Anton-Conley, M. (2005) Entrepreneur Magazine's ultimate book of low-cost

franchises 2005/2006. 1st ed. [Irvine, CA]: Entrepreneur Press.

Micro Business Systems plc annual report. 1st ed (n.d.). Micro Business Systems.

Perrini, F. (2006) The new social entrepreneurship. 1st ed. Cheltenham: Edward Elgar.

Praszkier, R. and Nowak, A. (2012) Social entrepreneurship. 1st ed. Cambridge: Cambridge
University Press.

Storey, D. (2000) Small business. 1st ed. New York: Routledge.

Unit 9: Entrepreneurship and Small Business Management – January 2017