Importance of Small Businesses and Start-ups in the Social Economy

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................1
P1. Types of entrepreneurial ventures....................................................................................1
P2. Similarities and differences between entrepreneurial ventures........................................3
P3. Micro and small businesses impact on the economy.......................................................4
P4. Explain the importance of small businesses and business start-ups to the growth of the
social economy.......................................................................................................................7
P5. Characteristics, traits and skills of successful entrepreneurs...........................................8
P6. Aspects of entrepreneurial personality depict motivation..............................................10
P7: Background and Experience can hinder or foster Entrepreneurship..............................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Entrepreneurship defined as setting up of a business while undertaking financial risk in order
to create value and profitability from them. In simple terms it is an ability to develop, organise
and run a venture while undertaking uncertainties in order to gain prominent advantages.
Entrepreneur is an individual who develop the business venture by their own and follow their
self interest to serve society and take financial risk in order to achieve maximum success in quick
period of time (de Gortari and Santos, 2020). Entrepreneurs are self motivators those who follow
their passion in order to fulfil their goals as to bring something unique and innovative in market
segment and satisfy customers with high quality services and product in a innovative manner and
serve their need in effective way. Entrepreneur not only serves society but also provide
significant advantage to a nation by maximizing their overall GDP by offering number of
employment opportunity to individual and raising their living standards.
Present report includes formative discussion on different type of entrepreneurial ventures in
addition to their typologies. Along with this report include differences as well as similarities
among entrepreneurial venture alone with influence of small scale and medium scale enterprises
upon economy of a nation. Further report include diverse range of entrepreneurial personality
with the assistance of ocean model in order define it in descriptive way. This report also includes
explanation of two different successful entrepreneurs of United Kingdom in terms of their skill,
characteristics and traits. Lastly, in this report discussion upon the extent to which, experience
and background of entrepreneur hinder or foster entrepreneurship.
P1. Types of entrepreneurial ventures
Entrepreneurship refers to excitement to run a business with adopting new changes,
situations and risks. Most of the entrepreneurship is carried out with the motive of starting a new
business. There are various types of entrepreneurship which are discussed below-
Small business entrepreneurship- This type of entrepreneurship mostly renowned small
level and main motive is to live in the market with limited profit and sale. For example retailers,
bakery shops,cafes are considered to be small business entrepreneurs (Huertas González-Serrano,
Jones and Llanos-Contrera, 2020). In this type of business risk associated is quite low and
decision making is done in effective manner.
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Scalable start-up business entrepreneurship- Scalable entrepreneurship business are
those in which independence invest in their start up business. They always look for new
opportunities and generate new ideas within the business sector. In such type of business,
decision making is dependent on venture capitalist or investors.
Larger scalable- Then comes the larger scalable entrepreneurship in which shares can be
traded and huge amount of capital invested in the business activities and operations. These types
of entrepreneurs are motivated towards innovation and invention. For example, Facebook,
Oracle, IBM and many more.
Social entrepreneurship- So these are considered to be those who you are the individual
for the start-up companies who run their business with motive of helping needy people.
Moreover, such types of organisations have limited number of employees and volunteers. In this,
risk associated with the business is moderate. For example- NHS service UK, Cancer Research
UK etc.
Typology of entrepreneurship
Serial entrepreneur- These are those types of entrepreneurs who you are always ready to
take the risk in the business. Moreover they focus on generating new ideas in the existing or new
business. For example- Apple, Elon Musk- Pay Pal, Space X. They always run for new ideas and
focus on achievements of the objectives.
Lifestyle ventures- Lifestyles dangers are those who run the business with motive of
acquiring maximum resources and larger share of market growth in the specific industry. For
example- blogging, poets, advisors etc. Their main aim is not to earn profit but to explore their
lives and enjoy the other stages of life.
Social economy- In this, it involves foundations, social organisations, democratic
governance, etc. This type of entrepreneurship always requires time and manpower who can
match up with their decision making.
Traits of successful entrepreneurs-
 A successful entrepreneur is always motivated in the work.
 There is full availability of knowledge, new innovations, ideas and thoughts
 A entrepreneur is always ready to take the risk with positive energy
 Moreover, a successful entrepreneur is flexible and accepts as well as adjusts
according to the new changes and trends.
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