Role of Start-ups and Small Businesses on Economy

The assignment discusses the importance of entrepreneurship education in developing entrepreneurial skills and attitudes among students. It highlights the benefits of entrepreneurship education, including increased self-efficacy, entrepreneurial intentions, and financial management skills. The role of start-ups and small businesses in the economy is also examined, with a focus on their impact on employment, innovation, and economic growth. Various references are provided to support the discussion.

Entrepreneurship

Table of Contents
INTRODUCTION...........................................................................................................................3
P1 Examine different types of entrepreneurial venture and their relation with the typology of
entrepreneurship.....................................................................................................................3
P2 Evaluate similarities and dissimilarities between different kind of entrepreneurial ventures.
................................................................................................................................................5
TASK 2............................................................................................................................................7
P3 Present a relevant data and statistics to justify the impact of micro and small business on
the economy............................................................................................................................7
P4 Explain the impact of small business and start up in growth of the economy.................9
TASK 3............................................................................................................................................9
P5 Illustrate the characteristic, skills and traits of successful entrepreneur which separate them
from other business persons...................................................................................................9
P6 Assess how aspect of entrepreneurial personality motivate other individual of the society.
..............................................................................................................................................11
TASK 4..........................................................................................................................................13
P7 How background and experience can motivate for entrepreneurship......................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Entrepreneur is a person who run his business with creative and innovative ideas in order
to attain growth and earn profit effectively. These are the people who focuses on opportunities
and take initiative for mobilising resources in order to make new goods and services (Amato and
et. al., 2017). With reference to this, Entrepreneurship is a process of developing, arranging and
running a new business venture, which is initially start as a small-business. The person who
establish such type of businesses are known as entrepreneurs. Along with this, Entrepreneurship
refers where business man have capacity and willingness to manage business venture by taking
risk with the purpose of earning profit and developing society. In this present report, it has been
studied of various entrepreneurial venture and their relations with the typology of
entrepreneurship. Also, importance of small-business and new start-ups has been discussed for
the overall development of the society. In addition to this, it has been discussed about the
personality, knowledge and skills of two entrepreneurial which influence other for becoming an
successful person in their life. Lastly, in this present report described about family and
background of entrepreneur which create their image on individuals mind.
TASK 1
P1 Examine different types of entrepreneurial venture and their relation with the typology of
entrepreneurship.
Entrepreneur : An entrepreneur is the person who take financial risk in order to earn
money. They have innovative or creative idea and implement it for gaining long term profits
(Ateljevic and Page, eds., 2017). Entrepreneurs take full authority towards execution, failure
or success while establishing business entity.
Entrepreneurial venture : It is a business entity where innovation of new products take
place for providing value to the society. This venture is basically started by a person in order
to fulfill their dreams and to achieve growth and success.
Entrepreneurship : It is the willingness of a person in order to manage or create a business
entity which is generally a small scale business, for earning profit by taking risk. For
generating financial gains, they attract huge amount of investors which aid them by
investing in their business organizations.
There are various types of entrepreneurial venture which are as follows :

Social entrepreneur: Social entrepreneurs mainly focus on creating those products which
satisfy the needs and requirements of the society. Major aim of the entrepreneur is to
develop better place for the people of society, with no discrimination. They earn money for
the development of society (Bogdanov and et. al., 2016). For example, NHS(National health
care) is a social organization which provide services at low and free of cost to the local
resident of UK. These organization earn huge profit by providing its services and products to
its target audiences.
Large scale entrepreneur: Large scale enterprises are those companies which are
established on a large scale and have capacity to bring changes according to the
requirements of consumers. Company develop new products according to the customer
preferences and changes in technology, in order to satisfy needs of consumers and gain
competitive advantages. For example, Google and Microsoft are large organization which
operate their business in the different nation of the world.
Micro enterprise venture: These business ventures are based on the talent, willing or
desire of a person for establishing an organization in high competitive market. This is the
enterprise who have extremely low growth rate and require regular motivation in order to
survive and gain profit.
Small/lifestyle ventures: These business ventures creates employment opportunities for the
people of the society, as these companies act as a backbone for the development of
the society or overall economy.
Small scale entrepreneur : They are the individuals who establish their business at very
small in the respect to infrastructure, money or other necessary resources. Small scale
enterprises includes general stores, grocery shops, hairdresser, electrician and many other
businesses (Burns and Dewhurst, 2016). They establish their business by taking funds from
relatives, family and other financial organization. In order to feed their family members they
started this type of business. For example, Funeral Care is a small business and organization
which work towards dead people of poor families who are not able to do the activities
towards them.
Typology of entrepreneurship : Typology refers to an effective and detailed classification of
factors associatted with characteristics like contextual and physical.

Serial entrepreneur : It is the person who have lot of thoughts or ideas on a regular basis,
by which they can start new business in order to implement those ideas into reality. It refers
to the person who mainly have lot of creative ideas in order to gain profits. Serial
entrepreneur generally start new business entity, only after getting success in their previous
venture. Serial entrepreneurs believes in using detached portfolio approach as the they are
less interested in performing and enjoying day to day business activities.
Female entrepreneur : Female entrepreneurs have feminist belief, values and thoughts
which will aid them in order to accomplish organizational objective (Zacca, Dayan and
Ahrens, 2015). For providing good and safe environment, female entrepreneurs provides
various schemes and programs.
Social entrepreneur : In order to bring social changes, social entrepreneurs create new
products and services. For reducing poverty or inequality, for provide employment
opportunities, social entrepreneurs mainly works.
Lifestyle entrepreneur : He is the entrepreneur who establish new business venture in
order to fulfill own desire and passion (Burns, 2016). Such business ventures are majorly
established by successful business man, in order to fulfill their dreams.
P2 Evaluate similarities and dissimilarities between different kind of entrepreneurial ventures.
Differentiate between serial entrepreneur and lifestyle entrepreneur
Basis Serial entrepreneur Lifestyle entrepreneur
Similarities  Serial entrepreneurs
require huge amount of
funds, as they switch from
one business idea to
another in order to earn
more profit.
 In order to fulfill their own
passion, lifestyle
entrepreneur start their own
business venture, which
requires large amount of
money (Dugguh, 2017).
Dissimilarities  In case of serial
entrepreneurs, individual
comes up with new idea,
start their business and
 In this case, individual
establishes a business in
order to fulfil their own
passion and not for

then assign duties to
another person in order to
bring some new thoughts.
maintaining competition
among marketplace (Volery
and Mazzarol, 2015).

Basis Small/lifestyle ventures Micro entrepreneur venture
Similarities  Small enterprises
generally based on the
skills, talent and
capabilities of a person.
 Small ventures are
generally operated at
highly competitive
market (Fayolle and
Gailly, 2015).
 These types of business
venture are established
at high competitive
marketplace, for
gaining more profits
(Siegel and Wright,
2015).
Differences  Owner of the company
wants to feed their
family members, so the
growth rate is
comparatively slow.
 In order to satisfy basic
needs, this type of
enterprise is established
so the growth rate is
low.
Basis Gazelle venture Medium sized ventures
Similarities  Gazelle venture is
basically established
for providing
employment
opportunities.
 With the help of
medium size business
company can generate
employment in the
society (Karadag,
2015).
Differences  In this business
venture, growth rate is
high.
 In this type of business
venture, growth rate is
moderate.

TASK 2
P3. Interpretation and Assessment of relevant data and statistics to justify the impact of micro
and small business on the economy.
Small business enterprises plays very important role in the overall development of the
country. These business organizations act as the backbone of the country as it creates
employment opportunity for the people. It helps in the growth and success of the company which
directly affects the economy of the country. Along with this, income level as well as living
standard of people increases, due to employment opportunities. SME's create enough
competition at the market and attract fresh talents which aid them to maintain their stability at the
marketplace (Piperopoulos and Dimov, 2015). As a result, SME's plays very important role in
the overall development of the society which positively affects the economy of UK. SME's have
huge impact on the overall economy of the country, due to which company can create more
employment among the society, increase the living standard of people, remove poverty and
discrimination. There are different various types of business enterprises in the external
environment which highly support the United Kingdom economy. Some of these business
ventures are as follows :-
Micro business : It refers to those businesses where they have below 10 employee and
whose turnover is not more £2 million . These are quite effective organisations currently within
the UK and have a major impact on its economy after Brexit.
Small business : Those organisation who have 10-50 employees are include in Small
business and also there annual turnover is more than £2million and less than £10million. These
organisations provide customer goods at effective prices to people which contributes to their
enhanced standard of living and thus, raises the per capita consumption of the economy.
Medium business : It refers to those businesses where employee are between 50 -250
and there annual turnover is above £10million but below £50million. As for these organizations,
they deal with effective scale of products and processes which enhances the employment
opportunities and effective trade and commerce within the economy.
At the beginning of 2017, 99 % are small or medium-sized (SMEs) in UK economy.
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Exporting : Only one among five SME 's contain their business for exporting. Also, the
ratio get decrease at upcoming future and the 12% of non-exporting firms in UK will become
exporters(Boosting UK productivity with SME growth .2018).
Turnover : In private sector their turnover is 51% and the SME's annual turnover was
£1.9 trillion
Employment : Private sector generate 60% of employment and total employment in
SME'S was 16.1 million.
Small companies play a very important role for overall development of the society. Also,
it provides various job opportunities which enhance their growth and maintain sustainability at
market place (Scarborough, 2016). In UK 2016 , the percentage of private sector is 99.3% as
well as 99.9% were small and medium-sized. Along with this, total employment in SMEs was
15.7 million which is 60% of all private sector employment in UK. From the graph, it has been
analyzed that, in 2016, 99.3% were private sector businesses whereby 99.9% contains SMEs.
Also, Private sector in UK provide employment i.e., about 15.7 Million out of which 60%.
(Source: Role of Start-ups and Small Businesses on Economy, 2018)
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Illustration 1: Role of Start-ups and Small Businesses on Economy,2018

Illustration 2: Percentage growth by industry, 2017-2018
(Source: UK business; activity, size and location: 2018, 2019)
According to the above statistics above, an effective rise is experienced by various
industries throughout the time period of 2017 as well as 2018. Moreover, such rise in business
enterprises contribute effectively towards the growth of economy as they enhance the scope of
trade and commerce, along with employment opportunities within the country (Schaper, 2016).
There are several aspects associated with impact of Small and Medium Sized Enterprises
on the economy. For instance, as the graph suggests, enterprises within the transportation
industry, as well as education and health are gaining momentun within the UK, which is an
accelerating aspect for the economy. This is because it helps the country of bringing in more
expertise and scope of improvement even on international grounds.
P4 Explain the impact of small business and start up in growth of the economy
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Social economy refers to the amalgamation of organisations that indulge effectively
within the economy persuading their own economic as social goals. Small enterprises as well as
business startups have an effective contribution towards the economy of the country. There are
certain employment ventures which are working towards favour of the society. Social
Enterprises are one such type of organisations which work towards benefit to society as well as
its welfare. There are several enterprises within the UK which comes under this category and are
contributing effectively. For instance, one organisation, named CASA, work towards providing
effective services to the needy and old individuals within the country. Moreover, Doncaster
Refurnish is another company that is incorporated for provision of furniture to public made by
recyclable materials. (Top ten social enterprises revealed, 2019)
In UK, Brexit is a major situation for breaking down their own economy. Along with this,
UK separated themselves from the nation of European because they believe that are able to free
trade across the world and also their economic system get destroyed because of it (Schaper, ed.,
2016). Along with this, country faces various problems such as poverty, reduction in FDI and so
on. There are various factors which will affect the growth of the economy.
 Create employment: In UK small scale and start up business plays very important role
in an economy as it will create employment. After separation of UK from European
nation people get lose their job in the society. After the incidence of Brexit, government
of UK generate the job opportunities for people by the help of SMEs. Along with this,
SMEs generates employment opportunities according to their capacity and ability. Uplift the standard of living: With the help of SMEs people get job which will enhance
their living standard. Along with this, when earning of people get increased then they will
generate employment for others in society because they find a right way for spending
their money. Also, it increase the image of organisation at market place and also enhance
standard of living. Engaging individuals from disadvantaged groups: These enterprises lead to engaging
several other people who belong from disadvantaged groups. This state of affairs relates
to improvisation in the state of unemployment and GDP of the country.
 Diversity: Another importance which is crucial in context with SME and Start ups is that
these organisations bring in diversity within the economy by introducing more effective
and innovative businesses to the people within the country.
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Local impact- Start ups and small businesses mainly create impact on local businesses of
the nation so that they can generate employment to the people of the UK. It create positive
impact on the economy of the nation in context of making development in the living standards of
the people.
National impact- It majorly influence the small businesses of the country so it will help
in developing economy through generating and creating more and more expansion and evolution
opportunities (Scarborough, 2016). It offer employment opportunities which will be beneficial
for generating nation and their economy for became rich.
Regional impact- Start ups and small business has create large and broad impact on the
products and services which are produced by the organisations as per the needs and demands of
the customers so that they can provide satisfaction to their desires. These goods and services are
offered by the firm at affordable prices so that easily consume by the target audiences. This
create favourable impact on the economic condition of the country.
TASK 3
P5 Illustrate the characteristic, skills and traits of successful entrepreneur which separate them
from other business persons.
Entrepreneur is an individual who generate new and innovative ideas for running their
business business operations in order to attain overall development of the society. Along with
this, entrepreneurship skills aid in removing an unemployment and poverty in the economy
(Siegel and Wright, 2015).
In this report, chosen successfully business entrepreneur is William Chase and Walt
Disney who have their different characteristic and skill which makes them different from other
business persons.
Apart from some specific skills, it has been analyzed that every entrepreneur is required
to owe interpersonal skills that includes soft skills of the person. Soft skill mainly helps an
entrepreneur in building up their relationship with the followers so that they can perform
effectively for the company with their best feasible capability. Interpersonal skill also includes
hard skills which reflects that individual owes capability of performing their any type of business
activity no matter how difficult it is. Some of the main competencies which are required to be
owe by successful entrepreneur includes negotiations skills, conflict resolution, persuasion skills,
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team building skills, personal stress management, communication skill, problem solving and
strategic thinking.
William Chase is a founder of the Tyrrells Crisp Brand who was born in Hereford shire,
UK. Recently, William Chase is the CEO of Chase Distillery where they produced vodka in
2008. Whereas in 2002 he found Tyrrells Crisp which deals in snack foods. Along with this, he
is a very famous and successful entrepreneur in the overall world as they provides good quality
of product and services to their ultimate customers (Karadag, 2015). There are numerous skills
and characteristic which differentiate them from other business persons are describes below:-
 Continuous learning :- It is a basic concept of every individuals life. Along with this, if
a person remain rigid with their thoughts and ideas then they will not able to achieve
anything what they really want. In context to, William Chase, says that if he had not
faced any bad or critical situation in his life then he will not generate an idea for
establish Tyrrells crisps (Volery and Mazzarol, 2015). Also, he thing that the reason
behind of his success is his failure because he learns something different from the
mistake of his life. Further with this, it helps William to achieve his desired target with
the motive of earning profit and becoming successful person in his life. Along with this,
manager of the company never experience from the learning as they believe that they
know how to perform in the task.
 Accept failure :- William Chase accept his failure before establishing a Tyrrells Crisps
as he faced many problems at the project time. According to him, if a person not accept
his failure then it is difficult for them to achieve their desired goals and objectives in an
ethical manner. For example, Williams says that investing in Woolworth is his worst
decision and he accept his failure which also helps him to found his own business. With
addition to this, manager of the company never accept their own failures and also blame
others for their mistake in an organization.
Walter Elias Disney was based on American Entrepreneur who is also an animator, film
producer and voice actor. Along with his brother Roy O. Disney they found Walt Disney
company as well as Walt Disney has dynamic personality who found American Animation
Industry. With reference to this, he make various famous characters of cartoon like, Donald
Duck, Goofy, Mickey Mouse and many more (Zacca, Dayan and Ahrens, 2015). Also, he is
popular for putting his effort, contributions and foot prints on entertainment industry at the
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period of 20th century. There are various skills and characteristic which make Disney as a
different from other businessman and these are given as below:-
 Vision- Walter Elias Disney was popular because of his vision which differentiate him as
an unique from the other businessmen. He says that, the formula behind of his success is
one simple thought that is “ I Dream”. Along with this, the vision of Walter Disney is to
became a famous and creative producer of entertainment in across the world. On the
other hand, manager of a company do not have vision for an organization as they always
put their efforts only the development of their current position.
 Risk Taker- Walt Disney always motivates other for taking a risk and become
successful person (Ateljevic and Page, eds., 2017). Also, he mortgage or sell his personal
things by taking a risks in order to attain goals and objectives without to think about the
results. Along with this, he bears lot of risk at the time of inventing huge amount of fund
for creating a Disneyland. On the other hand, Manager avoid to take the risk because they
do not want to become a responsible person for those loss which was happen by investing
them on new things.
Entrepreneurs and business manager works in different pattern. These difference can be
seen in their working pattern, execution of work, thinking criteria etc. The most common
difference among both of them states that entrepreneur is big risk taker whereas business
managers are tactical as they believes in performing already existing operational activities. These
managers do not believe in taking any risk because they thinks that there responsibility is only to
execute operational activities.
As to conclude, in order to effectively become an effective and successful entrepreneur, it
is highly necessary that several skills and traits are possessed within these individuals in order to
effectively and essentially succeed within the market. Moreover, entrepreneurs must strive
towards gaining experience, skills as well as traits that allow them to become a successful
entrepreneur within the future.
P6 Assess how aspect of entrepreneurial personality motivate other individual of the society.
Every Entrepreneur contains various skills and characteristic which make them different
from other businessman. Also, it motivates others to fulfill their dreams in order to attain
development of the society. Along with this, entrepreneur includes various characteristic in his
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personality, OCEAN acronym aid entrepreneur for identifying his personality traits, which are
given as below :-
 Openness to experience :- In this category, include all those who are always ready for
experiences and learning new things. In context to, William and Walt are always ready
for modifying themselves according to the need and requirement of external environment.
With reference to this skills, individuals are always ready to brink some changes in
working area for an overall development of the society.
 Conscientiousness :- In this category contains those person who are mangers, self-
disciplined and goal oriented. Along with this, they perform various activities with
proper planning in order to attain their objectives (Burns and Dewhurst, 2016). With
reference to William and Walt, are very energetic and hard working person as well as
they are always passionate for achieving an organizational goals and objectives
effectively. As a result, it motivates other in society that persons should have passions
and motivation for performing a task which helps them to attain their goals.
 Extraversion :- These people are very Energetic, Sociability, Warmth and also have
sources of Excitement. Accordance to William and Walt, both have these characteristics
which motivates other and makes focuses towards their work (Piperopoulos and Dimov,
2015). Also, they gives proper guidance and direction to their employees for
accomplishment of goals and objectives.
 Agreeableness :- It refers to those people who have various qualities such as, trust,
decency, and honesty on other people of an organization. William and Walt, both contain
high score in this factors because they think if they do not trust their employees then they
will not able to achieve their target at given time. Along with this, every businessman
and individuals should believe their employees and motivates other for performing their
task effectively.
 Neuroticism :- In this category involved those type of people who are very unhappy,
nervous and impulsive in nature. According to William and Walt, are low scores in this
personality tat as they they are very calm, emotional and stable person. With the help of
this, other people and businessman have quality they always be positive, which makes
positive environment in an organization (Scarborough, 2016).
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TASK 4
P7 How background and experience can motivate for entrepreneurship.
In every individuals life background and experiences plays very important role as it says
about the everything which can happen in their life. Along with this, there is a detailed
description of two Entrepreneurs, who became a successful person in the society by their
background and past experiences.
William chase is a founder of the Tyrrells Crisp Brand who was born in Herefordshire,
UK (Will's Story, 2019). Along with this, his family was with him while he growing up where his
parents is a farmer as they are poor from cash but rich from the assets. In his childhood he was
disappointed that he has nothing and he always want something unique, bigger and exciting
which makes him happiest person in his life. Also, whatever his parents in earn they invent on
their business venture and by seeing all this, he carried a skills of doing business. In context to
this, he faced many problems and learn various things by the past experience which motivates
him to do something unique in his life. (Zacca, Dayan and Ahrens, 2015).
Walt Disney was an American Entrepreneur, animator, film producer and voice actor and
he was born in Chicago on the year 1901 at 5 December. His father was Contractor, Carpenter,
Farmer, and school teacher. His father has dynamic personality and he also develop this type of
personality by seeing his father from the childhood. Also, he get motivated for doing something
innovative and creative by the changes of various job of his parents in order to became a
successful person in life. Moreover, his work led him to incorporate The Walt Disney Company
which is currently one of the most successful organisations in the world in terms of animation
and entertainment (THE WALT DISNEY COMPANY, 2019).
CONCLUSION
From the above report, it has been concluded that Entrepreneurship plays their important
role in an economy which helps in development of the society effectively and efficiently. In this
present report, after an evaluation it has been examined that various number of entrepreneurial
venture aim is to earn profit and make its sustainable position in the market place. With addition
to this, in this report also mentioned about the personality and qualities of successful
entrepreneur which make them different from other business persons. Also, qualities of
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entrepreneur motivates other person of the society for fulfilling their dreams. Lastly, this report
provide information regarding entrepreneurs past life and background which is affected by their
families and life experiences.
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