Importance of Start-ups in Small Business and Social Economy

Entrepreneurship and
small businesses

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
P1) Types of entrepreneurial ventures and their typology..........................................................1
P2) Explains the similarities and difference between entrepreneurial ventures .........................2
TASK 2............................................................................................................................................4
P3) Interpret and assess relevant data and statistics to illustrate how micro and small business
impact on the economy...............................................................................................................4
P4) importance of start-ups in the small business in the growth of the social economy ...........5
TASK 3............................................................................................................................................7
P5) examine the characteristics, skills, and traits of successful entrepreneurs that are different
from the other business mangers ................................................................................................7
P6) examine how aspects of the entrepreneurial personality reflect entrepreneurial mindset
and motivation.............................................................................................................................9
TASK 4..........................................................................................................................................10
P7) Explain how background and experience can hinder and foster entrepreneurs with using
relevant examples .....................................................................................................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneurship is refers to the process of designing, launching and running a new business
that is associated with the new idea and innovative ideas, that is initial as the small business or
the willingness to develop, organise and run a venture that with any of its uncertainty and risk in
order to make the maximize profit. An entrepreneur is described as the individual who is able to
creates a new business, ready to bear most of the risk and enjoys most of the rewards or profit.
The entrepreneurs are generally seen as the souces of the new and innovative ideas that would be
implimented first time in a market place (Kuzieva, 2020.). they work to increase the standard of
living of the society along with contributes in the economy of the country. As they set the target
with the high return and high risk involve with the mission of getting maximum returns. Thy are
willing and have capacity to take the risk on their financial securities, future and capital on the
uncertain entity. This report is consist of the study on range and types of entrepreneurs, impact of
small business on the economy, key aspect of the entrepreneurial mindset. Furthermore it
includes environments that encourages and motivates the mindset of entrepreneurship.
MAIN BODY
TASK 1
P1) Types of entrepreneurial ventures and their typology
An entrepreneurial venture is described as the business entity which is run and managed
by the entrepreneurs. They created the business with the generation of high profits along with the
better sales and profit margin. With the support of liable or adequate changes as per the
requirements of the customers. The formulate and develop the new values which add and extract
the positive changes in the standard of living of the society. There are various types of
entrepreneurial ventures as discussed below:
Types of entrepreneur ventures and its typologies: Small business entrepreneurs: This is refers to the business that has been started with
the limited amount of source, capital and employees. They have been generated the
revenue with the operations in terms of partnership. In this a persons owns and run their
business and not looking for the large scale profit or funding ventures(Julien, ed., 2018. ).
As they use their own funds and saving in to the run and manage the business. In addition
1

to this they generally hires own family members, friends, and local employees. Such
examples of these entrepreneurs are grocery shops, parlour, boutiques etc. Social entrepreneurs: these is refers to the entrepreneurs who work to resolve the
problems of the society with providing them goods and services as per the need of
customers. They are running the business with the motive of making the better place to
live in the world. And not for the higher profits and goodwill (Donckels,and Miettinen,
2019). Instead they tend to start the non-profit organisation or company that influence
them to work with the full potential towards the betterment of the society. They face to
face certain challenges regarding raising the funds, decision making of investment of the
money at a right place and development of the business plan as to provide the social
welfare with that to generate more revenue. Innovative entrepreneurs: this can be described as the entrepreneurs who came up with
the new, innovation and creative ideas. They develop this idea ideas and further convert
them into the business entity. They are generally motivated and passionate people which
work with the aim of providing the better way of living in order to influence the standard
of living (Frederick, O'Connor, and Kuratko, 2018). They are tend be very confident as
they initiates with the uncertain business and seeks the way of making their product
different from the others in the market.
 Imitators entrepreneurs: these are the entrepreneurs who use other ideas as inspiration
and work on them by improving that in a effective manner that will provides the high
returns. They believe in the approach of right preparations and information provides the
higher chance of being successful. They are tend to think creative in the exiting idea and
work on them in Oder to achieve the desired goals and objectives. In addition to this they
learn from the mistakes made by others and improves them while making it own
business(Laudano, Marzi, and Caputo, 2018).
P2) Explains the similarities and difference between entrepreneurial ventures
Several types similarities and deference exit among the the entrepreneurial ventures are
discussed below:
Difference:
Basis Small business
entrepreneurs.
Imitators entrepreneur Social entrepreneurs
2