Impact of Small and Micro Businesses on Economy

Entrepreneurship and
Small Businesses
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Types of entrepreneurial ventures and their relation to typology of entrepreneurship..........3
P2 Differences and similarities between entrepreneurial ventures ............................................4
TASK 2............................................................................................................................................6
P3 Impact of small and micro businesses on economy based on relevant data and statistics.....6
P4 Importance of small businesses and business start-ups to the growth of social economy.....8
TASK 3 ...........................................................................................................................................9
P5 Characteristics, traits and skills of successful entrepreneurs that differentiate them from
other business managers..............................................................................................................9
P6 Entrepreneurial motivation and mindset..............................................................................12
TASK 4..........................................................................................................................................13
P7 Background and experience of entrepreneurs that foster their entrepreneurship.................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Entrepreneurship means to design, to launch and to run a fresh business with the capacity
and willingness of taking all the risks associated with it in the hope of earning profits (Barut,
2017). Most of the large organisations were initially just a start-up with a fresh and creative ideas
so that wants as well as needs of the consumers can be fulfilled by offering them desired goods
and services with the sole motive of earning maximum profits. In this report a detailed discussion
on various ventures created by entrepreneurs and how they are related to the entrepreneurship
typology is done. With this, the similarities as well as differences are also explained. The
importance of micro size and small size businesses in creating an effect on the development of
the social economy or the condition of the nation is also explained. The reports also includes the
qualities and skills which an entrepreneur possess are discussed which helps them in dealing with
the issues faced by them while running their business. Along with this, what kind of effect the
experience and background creates on the mindset of the entrepreneurs are discussed with
examples to understand their influence on the mindset of entrepreneur.
TASK 1
Types of entrepreneurial ventures and their relation to typology of entrepreneurship
Entrepreneurial venture is called as an organisation that gives high importance to
innovation and opportunism to develop social as well as economic values in the company.
Entrepreneurial ventures have higher risks as they give more importance to new and innovative
ideas (Bird, 2019). There are various kinds of ventures which are discussed below: Small Size Entrepreneurial ventures : This venture is not dependent and is just owned
with a motive of satisfying the general need of the owner and his/her family without any
intention of expanding. For example: Plumbers, Grocery stores which are localized and
Carpenters. Scalable start-up Entrepreneurial ventures : This kind of venture begins with new and
innovative ideas and are aimed at bringing strong impact both socially and economically
in the market. Initially, these ventures look up for interested people who can invest in
their ideas so that a successful business can be established.
 Large company entrepreneurial venture : These are large and well established
businesses with many competitors present in the whole market. They exist and able to

sustain themselves by providing new as well as innovative goods by the way of
diversification and expansion. They aim at tracking the tastes and preferences of the
customers so that competitive advantage can be achieved by grabbing any opportunity
and dealing with any potential threats in the market.
Typology of Entrepreneurship is the differentiation of various organisations based on
investment, motive, people who work within the company, the growth stage of the company, etc.
Below mentioned are few kinds of entrepreneurship : Male : These organisations are run dominantly by men. These start-ups are big in size
and are can be expanded on a large scale as men possess the ability to take up risks and
are more competent at dealing with various circumstances. They take decisions that can
bring large profits to the organisation through innovations and risk bearing capacities
(Burns and Dewhurst, 2016). Female : These organisations are dominantly run by females. Females are seen as more
sensitive and emotional. They do not take more risks and usually run social ventures that
works in the upliftment of the society. Female ventures may also find it difficult in
getting funds and investors for their ventures. Lifestyle : These are the entrepreneurs who pursue their passions and work when and
where they want. The purpose of these ventures is to alter the lifestyle of a person apart
from making profits. They focus on improving quality of life and rewards they provide to
the people that makes the entrepreneurs more satisfied and passionate for their work.
These ventures are generally scalable and social ventures (Burns, 2016).
 Survival : The motive of this kind of venture is to fight and sustain in the environment
full of competition such that it can fulfil the general needs of owners and meet their
family demands. Survival is possible in the market by the way of cutting costs, laying off
employees etc.
Differences and similarities between entrepreneurial ventures
Difference between large size and small size entrepreneurial start-ups
Basis Large size ventures Small size ventures
Definition These ventures are big in size, are These are small size companies which