Importance of Start-ups and Small Businesses for Growth of Social Economy

This article discusses the importance of start-ups and small businesses in the growth of the social economy. It explores their impact on employment, innovation, and competition. The article also highlights the support provided by the government and the need for assistance to ensure their success.

Entrepreneurship & Small
Business Management

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Analyses different types of entrepreneurial ventures and relation with typology of
entrepreneurship..........................................................................................................................3
P2: Explore the similarities and differences between entrepreneurial ventures.........................5
TASK 2............................................................................................................................................6
P3: Interpret with the use of relevant statistics and data to evaluate how small businesses and
micro impact on economy...........................................................................................................6
P4: Determine importance of start upsstart-ups and small businesses for growth of social
economy......................................................................................................................................9
TASK 3............................................................................................................................................9
P5: Traits and skills of successful entrepreneurs........................................................................9
P6: Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mindsetmind-set.................................................................................................................11
TASK 4..........................................................................................................................................11
P7: Examine how background and experience can foster entrepreneurship.............................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
The world is turning dynamic and new venture are important for growth of economy.
Entrepreneurship is the concept of starting a new business. There is huge risk in starting a
business. In this report there is discussion related to business individual that started with new
idea and are successful today. For a person who wants to become entrepreneur it is important to
get ready for challenges and to take risks. (Choi and Park, 2017). Entrepreneur is important for
the success of economy as well. Deloitte is taken into consideration to complete this report as it
provides consultancy service to small business and new entrepreneurs. There is discussion
related to various entrepreneurial ventures and their relation with typology of entrepreneurship..
The similarity among various with typology of entrepreneurship ventures is also discussed in the
report. There is discussion related to significance of small businesses in social economy. The
characteristics, skills and traits of a successful entrepreneur are also part of this report. In the end
of the report there is discussion in relation to various aspects of the entrepreneurial personality
reflect entrepreneurial motivation and mind set.
MAIN BODY
Analyses different types of entrepreneurial ventures and relation with typology of
entrepreneurship.
Entrepreneurship is a new idea that is converted into business. They are beneficial for te
economy as they contribute to GDP of the nation. That is why tell for economy for its
development that there is serious new start up and entrepreneurs. It is vital to know about the
various types of entrepreneur that at present the environment. The different types of
entrepreneurial venture are mentioned below:
Small business entrepreneurship: As it is a new businesses that starts at small scale. It is seen
that there are various issues faced by the person and he is not ready to take large risk (Gimmon,
Yitshaki and Hantman, 2018). This can be analysed that small business entrepreneurship are the
people that take less risk but start their own business. They also contribute to the GDP of
economy and work hard to convert their small business idea into big business firm. Examples to
this venture are hairdressers, consultants, Local grocery stores, plumbers, and small boutiques.

Large company entrepreneurial venture: The business is started with large number of
employees and have complex organisational structure. The person is ready to take more risk and
want to survive for longer period of time in the market. There is requirement of huge investment
and there are more employees. (Pinkovetskaia and Nikitina, 2019). Large company
entrepreneurial venture contribute more than small business to the economy.
Scalable start-up entrepreneurship: In this type of entrepreneurship the person believes in
changing the world by their capacities. They conduct proper resarch and face various
uncertainties in the market. They also require capital to start the business they borrow money
from venture capitals. They also hire employees that are talented individuals that help to run the
business successfully.
Innovative entrepreneurship: It is the next type of entrepreneur that focuses on creative and
innovative ideas. The thought is converted into business venture. They conduct research and find
out the needs and requirements that are present in the market. They then convert the idea into
reality (Dana, Ratten and Honyenuga, 2018).
There are different types of entrepreneur. It is important to know about all of them. It is
up to the person which type of business venture the individual wants to choose as per the skills
and capabilities.
Typologies of entrepreneurial venture:
Typologies is the term that is used to differentiate the various types of entrepreneur on
the basis of plan, structure, style, etc. It is important to understand the types of typologies and
take decision. The various typologies that will help the person to become successful are
mentioned below:
Aggressive growth ventures: It is a venture that focuses on new and innovative idea.
They focus on working according to the advanced technology. They plan to stay in the market
for longer time duration (Coulibaly, Erbao and Mekongcho, 2018). Their aim is to achieve
growth and success by using the latest technology. They always try to focus on expanding the
business at global level. This involve scalable and innovative entrepreneurship.
Lifestyle ventures: The main focus of these entrepreneurs is to serve the needs and wants
of customers. They keep the customers as priority. It is seen that there are less humans needed in
this type of venture. These are the one that establish small, social and large business.

Managed growth ventures: As the name suggest it is the type of typologies that believes
in growth of venture. The focus on enhancing the profitability and productivity by performing
their activities effectively. The always focus on managing the growth and enhancing it. These
entrepreneurs establish large scale businesses.
Survival ventures: Day focus is on surviving in the market. It can be understood with the help of
example of micro business. The concern is of survival day make more efforts to survive in the
market for longer time duration. As there motive is to survive it includes small business
entrepreneurs.
P2: Explore the similarities and differences between entrepreneurial ventures.
As discussed above there are various types of ventures in the market. It is important for a
person to know about the differences and similarities among the entrepreneurial ventures. The
similarities between them are mentioned below:
 The main similarity among all of the business ventures is that all of them start business
and survive to earn profit.
 These entrepreneurial ventures have to various uncertainties and risks to survive in the
market. (Chikweche and Bressan, 2020). These entrepreneurs have spirit to start their
own business.
 They all conduct a proper research of the market and evaluate the needs and wants of the
customers. The information is then used to serve the customers with their business idea.
 It is vital to analyse strategies and track competition that is present in the market. These
entrepreneurs have skills and capability to start their own business.
All of them take care of their business and hire people that will help the business to be
successful. The difference among all these ventures is mentioned below:
Basis Small business
entrepreneurshi
p
Large company
entrepreneurial
venture
Scalable start-up
entrepreneurshi
p
Innovative
entrepreneurs
hip
Capital They require less
capital to start the
business.
Large scale
company require
very huge amount
of money as
This is another
entrepreneurship
that requires
funds they
Innovative
entrepreneursh
ip needs a high
volume of

capital
(Fotopoulos and
Storey, 2019).
For the purpose
they need fund
which they
borrow from
various sources.
generally borrow
from venture
capital that helps
them to start their
business.
innovation and
creative ideas
to start a
business that is
different.
Human Resource In Small scale
business the
requirement of
people is less
number of people
so they do not
need separate
department for
human resources.
There is
requirement of
Human resource
department that
hires skilled and
talented people
for the company.
There is need of
more number of
employees.
In regard to
Scalable start-up
entrepreneurship
they also need
talented and
skilful individuals
that work for full
potential and give
their best to the
company. So they
also require a
human resource
department that
facilitate the
selection and
recruitment in the
business.
The main
focus is on the
new and
innovative
idea. Under
this venture
entrepreneur
conduct
interview
sessions and
select the
person that has
innovative and
creative ideas
(Ayandibu and
Houghton,
2017). They
hire the person
with special
care
Purpose The main purpose
of small scale
In case of Large
companies, the
The focus on
hiring specialized
Their main
focus is to

business is to
earn money that
is necessary to
feed their family.
main objective is
to earn more and
more profits so as
to run their
business for
longer period of
time.
employees that is
the reason they
want to change
the world.
develop brand
recognition
and that helps
them earn
profit.
TASK 2
P3: Interpret with the use of relevant statistics and data to evaluate how small businesses and
micro impact on economy.
The studies related to micro business tell that there is positive impact of the business on
the economy. They contribute to the gross domestic product of United Kingdom (XU and
CHEN, 2018). They are the reason for development of the country and as per the data it is
analysed that help in success of the nation. The number of small and micro businesses are
increasing day by day. The stats and data related to both the businesses is shown below:
Micro Businesses:
This type of business does not employ more than 10 employees. They play a vital role in
success of the economy. They have less capital to start their business but use their efforts to
operate effectively as well as efficiently. There aim is to fulfil the needs and wants of people.
The examples of micro business are catering, computer services, etc.

Illustration 1: https://www.google.com/url?sa=i&url=https%3A%2F
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 They are a good source of employment for the people.
 They have innovative idea that helps to provide various gods and services to the
customers.
 These businesses get help off government and do not have to pay taxes (Bulturbayevich
and Qobuljon, 2021). There is no requirement of big infrastructure that also save the
expenditure.
All this shows that micro business place all prominent role in the economy and the contribute to
the success of the country.
Small business:
The business organisation has bigger operations than the micro business. There are less than 50
employees that work in the business. These are independent organisation and share the profits
and losses independently. There is increase in number of small businesses since passed some
years. From the data it can be analysed that:

 They also have a good part in the contribution to cross domestic product of the country.
 The government increases the custom duty to enhance the revenues and rise the economic
growth rate.
 That's mall business enhances the opportunities of employment for the residents of
United Kingdom (Pahnke and Welter, 2019). They provide job to around 16.3 million
people which means they provide 60% of the job.
 They had been bringing innovative ideas to the country and also enhance the competition
that is important for the market. It also helps to complete to become global leader by
exporting various goods and services. Also becomes a source of revenue for the
government.
There are various benefits that the country has to small businesses so they encourage new start-
ups.
Illustration 2:
https://www.statista.com/statistics/880155/number-of-
smes-in-united-kingdom-uk/

(Source: Business statistics, 2018)
From the above graph it can be analysed that micro business contribute 96% to the
economy. On the other side the small businesses are providing 15% employment and thee share
in economy is 4%. The large sized organisation has turover around 48% that is more than small
and micro business organisation.
P4: Determine importance of start-ups and small businesses for growth of social economy
One of the major reasons for development of United Kingdom is the new start up and small
business ideas. It can be said that the support of government plays a vital role in success of these
small businesses. As these small businesses and start ups are the future leaders of the market
(Doktor and Bui, 2018). .There is requirement of assistance as well as support to run the
business. It is important to provide them assistance so that they are able to work effectively
satisfy the needs and wants of customers. It is prominent for a country to understand the
importance of small businesses and help them to take the decisions that are good for them. For
this purpose the importance of small businesses and start-ups is mentioned below:
 With the help of small businesses and start up the country is able to do generate more
innovative ideas that help them to become the leader of global economy. These businesses
help to solve the problems of customers and attract them towards the products and services
offered by the business (Abou-Moghli, 2018). They are able to earn profits and then the

money can be invested in future. The focus of these small businesses is to expand the
operations in future by earning profit and cover wider customer group.
 They play important role in decreasing the poverty from the nation. Start-up focus on the
sustainable growth of the economy.
 Another importance of start-up is that they help to bring standard of living in the society.
They provide goods service at affordable prices that help people to buy them and live their
lives valuably.
Above mentioned are the benefits and it can be said that start-ups and small businesses play a
vital role in the society. As they help in generating profit but also enhance the living standard of
the people. Focus on using the response optimally and serving the society in a sustainable
manner.
TASK 3
P5: Traits and skills of successful entrepreneurs
As the importance of small and micro business is discussed above. It is vital to
understand the traits and skills that are important for a successful entrepreneur. The skills that are
required by an individual for being successful are as follows:
Tome Mercer Elizabeth Gooch
Traits Curiosity- It is vital for a successful
entrepreneur to be curious. As it helps to
motivate the individual towards the ideas
and new innovative thoughts (Mafundu
and Mafini, 2019). In relation to MOMA
food it is seen that they used their skills
and innovative idea for launching night
shift. It is seen that the idea of delivering
and offering food products in night
helped them a lot to become successful.
Influencer- It can be analysed that
Influence of friends and family plays a
vital role in success of the intervener. As
Uniqueness- It can be analysed
that Elizabeth had a new and
unique idea. Along with that
Elizabeth was ready to work
differently. She had spirit and
that helped her to change the
name of the company and use
new ideas.
Control- In the case of
Elizabeth it is examined that she
wanted to have full control over
the business. This is the reason
she needs investors.

Seen in the case of Tom that the reason
behind his success what influence in
support of the family members and
Friends.
Flexible- Being flexible is vital to be
successful. It means the person is able to
accept the changes in the market. In is
analysed that Tom was ready to take and
accept the challenges.
Rigid- Sometimes it is seen that
being rigid is also important.
The nature of Elizabeth shows
that she was rigid. This is the
reason she wants the control in
her hands.
Characteristics Passionate- It is prominent for an
entrepreneur to be passionate. As it helps
the person to achieve the goals and
objectives on time.
Innovation- Innovation is the key for
successful of an entrepreneur. In relation
to the case of Tom he come with
innovative idea as blending of Fruits,
oats, and yogurt. The idea helped in
success of the business.
Money Minded- Entrepreneur
should money minded as that
help them to accomplish the
goals and objectives and that is
the reason behind the success.
Elizabeth is a person that
focuses on earning profit by
taking risk (Urbano, Aparicio,
and Audretsch, 2019).
Innovation- It is vital to
become innovative. The same
was seen in the case of
Elizabeth as she tried new
business idea.
P6: Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mind-set.
Tom Mercer: It is seen that nature of Tom Mercer that motivates him. He is a curious person
and that is the reason he was able to find a new idea of starting on venture.He understood the
need of people and started the business of healthy breakfast. (Meyer and Jongh, 2018). Then he
shared the idea with his friends. In the next step he tried it on a sample of people that gave

positive response. The support of friends helped him to convert the idea into practical business.
In this case the motivation of friends and family played a vital role.
Elizabeth Gooch: In the case it is seen that she did not like to be control. What's the main
motivating factor that was to control others. This motivated her and she started the venture
successfully. Along with that after the death of her father she was in pain and the pain gave her
motivation to start a business and become independent.
There is requirement of motivation and factors that encourage the individual to start the
business and run it successfully. The motivator factor is the one that keeps the person courageous
to start the business and accomplish the goals and objectives successfully. All the individuals are
different and have various reasons that motivate them.
TASK 4
P7: Examine how background and experience can foster entrepreneurship
It can be said that the background of an individual is one of the reason behind the idea of
starting own business. Experience of individual help him to foster the entrepreneurship. It is
analysed that the person has understood a problem or face a situation that gives rise to an idea.
This is for the explained with the help of two cases that are discussed:
Tom Mercer: He was working in Consultancy firm in London (Acs, Estrin, and Szerb, 2018). At
the time of employment he understood that it is good idea to start own business. He got support
of family for satisfying the financial need. His own experience and research helped him to get
the idea of breakfast. As he analysed that there are various outlets that provide lunch and dinner.
So he come up with the idea of providing healthy and tasty breakfast. There are various
challenges that come in path but it is important to address them with the help of past experience.
Elizabeth Gooch: In the case after the death of her father serialised that the important for a
woman to earn and support her husband. This helped her to find idea and become her own boss.
She managed all the small and large things without the help of others. She was it pain and that
was due to death of her father. At that time she understood the importance of being independent
and earning money. She understood that the future is uncertain and to survive it is important to
earn. So she decided to start her own business and support her husband financially.

CONCLUSION
From the above report it can be concluded that the entrepreneurship places a wide role in
growth of economy of nation. It is important that the government supports the new and
innovative idea of people. There are various types of business ventures and there is discussion in
the report related it to them. It is important to understand the similarities among them and to
differentiate them. Understand the importance better there is use of statistical data on how the
small and micro businesses impact the economy. Skills and traits of entrepreneurs are also
discussed in the report. There is always a motivating factor in the life of entertainer along with
that experience and background plays a vital role in the success of the business.

REFERENCES
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