The Role of Small Businesses in Economic Growth

This assignment delves into the crucial role that small businesses play in fostering economic development. It examines their impact on job creation, innovation, community development, and overall national prosperity. The analysis considers various factors influencing small business success and explores policies that can support their growth.

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Different types of entrepreneurial ventures and its link with typology of entrepreneurship 1
P2 Similarities and difference between different kind of entrepreneurial ventures....................3
TASK 2............................................................................................................................................5
P3 Small and micro business effect on the economy of country ...............................................5
TASK 2............................................................................................................................................7
P4. Importance of start-up's and small business to development of social economy.................7
P5. Qualities of Bill Gates & Jeff Bezoz....................................................................................8
TASK 3............................................................................................................................................9
P6 Entrepreneurial personality reflect its own mind-set and motivation....................................9
TASK 4..........................................................................................................................................11
P7 Experience and background of entrepreneur foster and finder entrepreneurship................11
CONCLUSION ............................................................................................................................11
REFERENCES..............................................................................................................................12
.......................................................................................................................................................13

INTRODUCTION
Entrepreneurship is identified as an effective process of managing and starting own
business carefully. It is the best activity of designing, running and launching a new business in a
systematic manner. It has been determined as the willingness as well as capacity to handle,
organise and develop an enterprise along with any kind of hazard in order to make maximum
profit or revenue. In economic, such process combined with labour, land, capital and natural
resources that can produce more revenue (Acs, Autio and Szerb, 2014). In addition, the
individuals who operate new business are called as entrepreneurs. The main aim and motive
behind launching an innovative venture is to accomplish predetermined goals and objectives in
limited time duration.
This assignment is based on different types of entrepreneurial ventures and its connection
with classification of entrepreneurship. The report also described difference as well as
similarities between entrepreneurs. Small-business or start-ups are important for the person
because both are give better opportunities to the unemployed people, it is shown in this project.
This study also described about the traits, background, experience, characteristics and skills of
entrepreneurs which can hinder their own mind-set and motivation level effectively.
TASK 1
P1. Different types of entrepreneurial ventures and its link with typology of entrepreneurship
Entrepreneurship: It refers to the activity of starting and lunching new enterprise and
proceeding risk or hazard in the motive of earning more profits (What is Entrepreneurship?,
2018). This is known as an effective procedure through which human being identify changes,
assign resources and develop value. It is the capacity or willingness to create, conduct and handle
a new business besides any kind of risks or uncertainty in order to accomplish predetermined
objectives and targets.
Type of entrepreneurial venture: There are some kinds of entrepreneurial ventures which are
determined as below:
Small-business Entrepreneurship: In today's environment, there are large numbers of
start-ups and entrepreneurs are still small in the UK (Awogbenle and Iwuamadi, 2010). Main
motive and aim of this business is to achieve maximum profit or revenues as compared to other
enterprise. There are few examples of small business such as grocery stores, travel agent,
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consultants, commerce store front, hairdresser, electricians, plumbers, carpenters and many
other. They mainly hire family and local employees effectively.
Scalable Start-up Entrepreneurship: In nature, these entrepreneurs are skilled and
creative. They have capability in order to modify global by their innovative ideas and
competencies. They focuses on analysing the scalable model of enterprise (Blackburn, Hart and
Wainwright, 2013). After evaluate such type of model, they emphasis on acquiring more
attraction of business capitalist.
Large Company Entrepreneurship: They have Bounded life cycle in order to attain
predetermined objectives and goals. In order to grow their business operation, they should offer
new products and services to the customers. Variation in advance technology, customer tastes,
new competitors, legislation etc. can develop force for more troubled innovation- necessitate big
organisations to develop totally innovative goods sold into customers in new marketplace.
Social Entrepreneurship: They are also known as innovators who mainly emphasis on
developing services and products that reduce social issues. Main aim and objectives of this
business is to attract large number of the customers as well as gain maximum profit
(Brandstätter, 2011).
Typologies of entrepreneurship and its relationship with entrepreneurial ventures, these
are described as below:
Survival Entrepreneur: This type of venture generally identify as a small scale which
can be present in the term of barber store, internet cafe, grocery store and many other. In today's
environment, they have better chance for promoting their services or product in the market and to
the customers.
Serial Entrepreneur: These are known as a kind of entrepreneurs who launch their own
business operations continuously. They have more and creative ideas in order to increase their
sales and revenues. Role of this entrepreneur is to evaluate basic needs and demands of new
customers. In order to identify requirement of clients, they conduct research program which help
them to easily understood needs of audience.
Lifestyles venture: These kind of enterprise provides maximum and immediate profits or
revenues to the organisation. Main motive of this business entity is to achieve long term benefits
in limited time period. They have capability to change individual lifestyles as well as making
more revenues.
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Female venture: These are the types of entrepreneurs who organise business operation
and activities in systematic manner. In the enterprise, main role of female venture is to manage
all transactions and gain financial profit. They mainly focus on attaining maximum profit and
revenue in limited time period.
Male Entrepreneur: In each and every enterprise, male entrepreneur plays a vital and
essential role in the growth and success of business (Bridge and O'Neill, 2012). Main motive of
this person is to attract large number of the customers and gain more profit as compared to other
ventures.
P2 Similarities and difference between different kind of entrepreneurial ventures
There are different number of entrepreneurs are present in the environment. All these
have some differences and similarities between them which are determined as below:
Lifestyles entrepreneurs and business
similarities
Serial entrepreneur ventures similarities
 These kind of entrepreneur does not
have a motive to earn more profit.
 They are started or organised as a small
scale.
 They chiefly recruit knowledgeable and
experienced individual who can done
entire work in given time.
 They have more power to attract large
number of audience within particular
place. For accomplishment of long term
success and growth, such type of
venture provides new commodity to
customers.
 These types of entrepreneurs are
organised for benefiting the
unemployed person or society.
 These enterprise also lunched as a small
scale.
 They also recruit knowledgeable and
skilled worker who can achieve
enterprise goals in allotted time
(Bruton, Ahlstrom and Li, 2010).
 They also have more capability to
attract million customers. Main aim of
this venture is to attain maximum
profits and revenues.
Difference Difference
 While developing new business,
lifestyle entrepreneur focuses on
 Serial entrepreneur established their
own business with a motive of
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uplifting social as well as economic
factor.
 They don’t have any kind of strategy in
order to launch business operation and
activity.
 These type of entrepreneur are
launched or developed arccos the
globe.
generating profit. . Therefore, growth
and development of the enterprise is
automatically maximised.
 They have some type of effective
strategy to run their business functions
and operation carefully.
 These kind of ventures operates or
established in particular area.
Female entrepreneur business similarities Male entrepreneur business similarities
 Female entrepreneur are mainly
emphasised in their all work or task
whether it is in home and office
(Carsrud and Brännback, 2011).
 Market research is completed, so in this
requirement and demands of the
audience is evaluated.
 Main aim of this venture is to earn
more revenue during business functions
or operation.
 They has more power to attain business
task appropriately.
 Male and female venture are similar in
the case of attracting large number of
clients about new products and
services.
 Male venture are also focused in their
work as well as achieving of maximum
profit.
 In the each and every organisation,
male venture are hard worker for
accomplishing pre-determined
objectives and target of enterprise in
give time frame.
 Changes in the business services and
products take an effective place. It is
important for the entrepreneur to
identify basic needs of customers
(Chittithaworn and et. al., 2011).
 They has more capability to accomplish
long term goals and targets
appropriately.
Difference Difference
 Female venture have more power to
face various issue and hard situation in
 Male venture has maximum power as
compare to woman entrepreneur in
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an easy way.
 As per the knowledge or ability,
woman employee have less confidence
or authority while launching start-up's.
 They are foremost part of the enterprise
development and success.
 They primarily focused on developing
social contribution or quality.
 Woman venture emphasis on making
long-lasting and better connection with
juniors.
order to taking best and accurate
judgement.
 They are good in creating right
judgement towards business functions
and operations.
 They are also foremost and essential
part of the company success and
growth.
 They mainly emphasised on economy
and cost of nation.
TASK 2
P3 Small and micro business effect on the economy of country
There are different types of business which provide various opportunities or chances to
the unemployed person (Chrisman and et. al., 2012). All these business are determined as below:
Micro Business: These type of enterprise only having one owner who can organise their
own scale in a systematic manner. In the organisation, there are mainly 0 to 9 employees are
working with the motive of accomplish predetermined goals and targets. There are certain kind
of micro scale in which an entrepreneur can work or function as per their capabilities and
knowledge. In United kingdom, there are approx 5.3 million micro business are operating.
Small-business: In nature, it is a small scale that is launched by a single person whose
motive is to gain maximum profits. In the organisation there are approx 0 to 500 employees are
work together. In UK, there are 6 million small scale are running start-up's successfully. These
kind of enterprise are liable for developing new jobs by 64% in the last twenty years.
Medium size enterprise: These are a medium business, in this approx 300 employee who
are work of function with together within an enterprise. They required to acquire more revenue
and profit which keeping turnover of organisation (Dacin, Dacin and Tracey, 2011). All the
person are involved in the process of decision making regarding business objectives and goals.
Characteristic and nature of partnership, private and sole, these are determined as below:
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Private: It is mainly identify as a business which is launched and developed by a single
person. Main aim and purpose of this enterprise is to accomplish predetermined goals and
objectives. In such kind of enterprise, there are approx 50 stakeholders who invest maximum
amount of fund in the organisation.
Sole proprietor: It is also operated by a single person who are capable or responsible for
developing business operation and activities in an effective manner. Main motive of this
enterprise is to acquire maximum profits and create impressive framework (Dennis, 2011). They
require effective decision in order to collect information and making appropriate framework of
entire functions and operation of business.
Corporation: These business launched or developed by stakeholder in an appropriate
way. In order to organise this type of business, they mainly use legal structure or framework. In
this all stakeholders has their own capability and rights to proceed an essential decision that will
provides better advantages to the organisation (Drucker, 2014).
There are mostly four places where impacts of economy are highly effected. These are
described is below:
Illustration 1: Micro and Small business Employment
(Source: Effects on different location, 2015)
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Local Impact: In United Kingdom, small-business are directly and highly affects on
economy development. In the country, there are 92% small scale are operated. Local business are
positively and directly effect on country and its economy which giving more tax. They generate
various job opportunity or chance for younger which help in reducing unemployment rate. In
each year, around 64% job changes are developing with the assist of marketplace.
Regional effect: Micro as well as small-business are directly effects on regional area
within the particular nation in various ways. Such enterprise and different challengers are
reasoned in certain element of marketing according to the superior in small-business in various
location. It will help in minimising the unemployment rate at lunching level and assist in
implementing new aspects for special views (George and Bock, 2011). This will positively
impact on enterprise situation and system of country.
National and international impact: Effects of SME's on country in that they assist in
creating the economy by lunching maximum businesses and hence developing maximum jobs.
So in this, maximum amount of capital will be created in the nation and its economy. In UK,
there are various enterprise that offers various facilities for approx twenty million job
opportunity to the unemployed person.
TASK 2
P4. Importance of start-up's and small business to development of social economy
BREXIT: Small scale and start-up's are contributes due to the success and growth of
country. In today's environment, small-business are rapidly growing which turn for the economic
growth. In UK, SME's are giving approx 29 % in the whole growth of particular country. Brexit
has negative and maximum impact on the entire operations of nations (Goss, 2015). Around 51%
business are creating more sales from new business and small scale.
Difference between start-up's and small-business: There are few points which are determined
as below:
Small-business Start-up's
 These business are build of an
innovative plan as well as earning with
the support for family.
 They gives maximum of a traditional
 These enterprise broadly creating about
an innovative idea.
 It generates new plan and are mainly
having maximum market size.
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commodity to its clients.
 It is review as fewer scaleable as
compare to start-up's.
 These business can be owned privately
and having approx 250 workers.
 They having scalable model of
business.
 All their plans are new and hence, they
try to provide something to clients.
Importance of start-up's and small-business: There are some significance of both enterprise
which are determined as below:
Social and economic development: Small scale are identified as a termed of economic
powerhouse or team of the nation (Grimaldi and et. al.,2011). It can be observed that within
small & medium enterprise, in the UK, there are approx 5 million SME's. These are liable for
developing more than 16.5 million jobs chances in United Kingdom.
Improvement on social safety or security: It is an essential force that assist in
encouraging income security on the country economy. It assist due to the economy by giving
them an even financial gain which they lost through death, disability or retirement.
Impacts on taxes and revenue: Effects of taxes & revenues in United Kingdom is more
powerful because they are generating maximum jobs chances in the country due to which
maximum income is created in the nation. There is direct connection between taxes or revenues
highly effects of economy growth and development.
P5. Qualities of Bill Gates & Jeff Bezoz
An entrepreneur are capable person who are sets up an enterprise with the use of an
essential plan. These are an individual who has knowledge and power to launch own business
operation along with any type of risk. Main motive of these person is to attain maximum sales
and revenues. Bill Gates & Jeff Bezoz, both are successful venture across the globe. Jeff Bezoz,
it is a launcher of Amazon.com. Another entrepreneur such as Bill Gates is the operator of
Microsoft corporation (Jones and Rowley, 2011). Both entrepreneur are successful and have
many skills, traits and characteristic. These are determined as below:
Knack for innovation: It is one of the best characteristic which is proceed by both
entrepreneur. It is essential quality for the venture in order to increase sales and revenues of the
enterprise. Both venture are take such kind of characteristic in order to accomplish
predetermined objectives and goals.
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Hard Worker: It is also main quality which is essential for the both entrepreneurs in
order to do all work in given time period. For development and growth of business, these type of
skills highly help them. With the help of this quality, Bill Gates & Jeff Bezoz can accomplish
predetermined targets and goals in certain time period.
Risk taker: Bill Gates & Jeff Bezoz, both are successful venture who have power to deal
with hard situation in an easy manner. This quality help them to increase their sales and revenues
in limited time period. They are mainly work on risky situation which effects on all function and
operation of business.
Motivation: It is one of the main and essential quality in order to motivate workers
regarding its performance and ability. With the help of this skills both ventures are easily
accomplish their predetermined goals and targets.
Communication: Both entrepreneur have such kind of skills to easily communicate with
customers (Karlan and Valdivia, 2011). It is beneficial for the enterprise to maintain long-lasting
relationship or connection with clients. So it is essential for them to attain maximum revenue and
sales in allotted time period.
Proactive: Bill Gates & Jeff Bezoz both are proactive in nature. It is identify as a trait, in
this both venture are understand reading their activities and takes better action to achieve
maximum sales. With the use of this traits, entrepreneur are easily sort out all difficult situation.
TASK 3
P6 Entrepreneurial personality reflect its own mind-set and motivation
Entrepreneurial personality and mind set reflection is need to be positive in frame so that
better and appropriate outcome could be supported. For this context, it is essential to evaluate
each and every consent properly and effectively so that an individual lead to work in an
appropriate and supportive manner (Wheelen and Hunger, 2011). Thus, personality dimensions
need to get evaluated properly which determine and provide assistance to evaluate hinder and
fostering things effectively (Big Five Personality Traits of Entrepreneur, 2018). For this
consideration, a supportive nature or technique get evaluated and use which define as OCEAN
acronym which reflect about an individual personality and mind set properly and effectively so
that better and appropriate gains could be promoted:
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 Openness: This personality dimension stated that an individual or entrepreneur need to
be open minded in frame so that better and effective ideas could be generated and
determine properly. An entrepreneur need to be creative in nature so that each and every
target get accomplish in an appropriate and suitable frame. This dimension stated positive
attribute of an individual so that chances of foster get enhance with reduce in barrier and
get overcome from them as well. Bill gates and Steve Jobs both have this dimension in
frame which reflect that their success properly without describing a single word. Conscientiousness: This personality dilemma signifies that an entrepreneur or innovator
need to be systematic or organized in frame each and every activity so that chances of
success get rises. This enables in better and appropriate working so that all targets and
goals get accomplish in a suitable and appropriate nature (Zott, Amit and Massa, 2011).
Although, one of a major factor which constitute this essential is punctual in which an
individual should have to perform each and every task on time. Bill gates and Steve Jobs
both perform their duties properly as well as they plan their work properly so that better
and appropriate chances of success could be promoted. Extroversion: This signifies that an entrepreneur needs to be social in frame by
interacting with each and every individual properly. This dimension signifies about
positive aspects properly so that well bring and appropriate working and operations lead
to take place in a suitable frame. Extroversion person always lead to be competitive in
frame by sustaining into world more properly. Both describe personalities are
extroversion in nature which consider as key factor in growth and success. Agreeableness: This personality dimension signifies that such individuals are tolerate
every consent of society as well as failure in their life. But they determine towards
working as well as faith and trust on themselves which support them to accomplish each
and every objective properly and effectively.
 Neuroticism: A major factor which create barrier in working is neocriticism which reflect
negative side of an individual. Thus, they not need to be anxious in nature as well as
moody because it hinder them in success and growth (Zott, Amit and Massa, 2011). Both
define entrepreneur are not moody in nature which reflect their success and survival in
keen competitive world for long period of time.
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TASK 4
P7 Experience and background of entrepreneur foster and finder entrepreneurship
Entrepreneurship is identify as an effective process of developing own business in
successfully. Background and experience of both ventures are hinder on its motivational level
and mind set in a positive and negative way. There are some aspects which are highly effects on
its skills and power. These are determined as below:
Family background: Bill Gates & Jeff Bezoz both are successful entrepreneur in their
industry but family background of both venture is not same with entrepreneurship. It is highly
effects on venture mindset and motivation (Awogbenle and Iwuamadi, 2010).
Nationality: This factor also effects on entrepreneurs motivation and mindset in an
effective and direct way. It is essential force that help in evaluating country culture
systematically. Nationality of Jeff Bezoz is New-York which highly pursuer its dreams level.
Bill Gates, it is launcher of Microsoft corporation, they are successful in their industry.
Social Network: This is very essential and important factor that impacts on all economy
in order to communicate with audience in direct or indirect way (Acs, Autio and Szerb, 2014).
In order to promote their products and services as well as new business operation, both ventures
are use different sides such as Facebook, Twitter, own sides and many other.
Education: It is another essential and foremost factor that high;y effects on venture
motivation and mindset. Education background of both entrepreneur are different, during the
process of entrepreneurship they face many problems.
CONCLUSION
As per the above mentioned report, it can be described about entrepreneurship is an
essential and main process of developing start-up's systematically. Different types of
entrepreneurs and their relationship with the process of entrepreneurship highly effects on
business performance. Start-up's and small scale are important for the growth and development
of economy. OCEAN model also help in identifying the traits of entrepreneur in a systematic and
essential way. Entrepreneurs background, experience, skills, characteristic and traits are effects
on its own mindset and motivation level in a direct and indirect way.
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REFERENCES
Books and Journals
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issues and policy implications. Research Policy. 43(3). pp.476-494.
Awogbenle, A. C. and Iwuamadi, K. C., 2010. Youth unemployment: Entrepreneurship
development programme as an intervention mechanism. African Journal of Business
Management. 4(6). p.831.
Blackburn, R. A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
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Brandstätter, H., 2011. Personality aspects of entrepreneurship: A look at five meta-analyses.
Personality and individual differences. 51(3). pp.222-230.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small
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Bruton, G. D., Ahlstrom, D. and Li, H. L., 2010. Institutional theory and entrepreneurship: where
are we now and where do we need to move in the future?. Entrepreneurship theory and
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Carsrud, A. and Brännback, M., 2011. Entrepreneurial motivations: what do we still need to
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293.
Dacin, M. T., Dacin, P. A. and Tracey, P., 2011. Social entrepreneurship: A critique and future
directions. Organization science. 22(5). pp.1203-1213.
Dennis Jr, W. J., 2011. Entrepreneurship, small business and public policy levers. Journal of
Small Business Management. 49(1). pp.92-106.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
George, G. and Bock, A. J., 2011. The business model in practice and its implications for
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Goss, D., 2015. Small Business and Society (Routledge Revivals). Routledge.
Grimaldi, R., Kenney, M., Siegel, D.S. and Wright, M., 2011. 30 years after Bayh–Dole:
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Jones, R. and Rowley, J., 2011. Entrepreneurial marketing in small businesses: A conceptual
exploration. International Small Business Journal. 29(1), pp.25-36.
Karlan, D. and Valdivia, M., 2011. Teaching entrepreneurship: Impact of business training on
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Wheelen, T. L. and Hunger, J. D., 2011. Concepts in strategic management and business policy.
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Online
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Impact of small-business in UK economy. 2018.[Online].Available
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<http://www.businessnewsdaily.com/2642-entrepreneurship.html>.
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