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Impact of micro and small business on the economy of a country

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Added on  2021-02-20

Impact of micro and small business on the economy of a country

   Added on 2021-02-20

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Entrepreneurship andSmall BusinessManagement
Impact of micro and small business on the economy of a country_1
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1Types of entrepreneurial ventures and their typology.................................................................1Similarities and differences between small, large and social organization................................2TASK 2...........................................................................................................................................3Impact of micro and small business on the economy of a country.............................................3Importance of small business and starts-ups in the social growth of economy.........................5TASK 3............................................................................................................................................6Difference between entrepreneur and manager on the bases of their characteristic, traits andskills ...........................................................................................................................................6Aspect of entrepreneurial personality that show their motivation and mindset..........................7Task 4...............................................................................................................................................8Background and experience can hinder or foster entrepreneurship ...........................................8CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
Impact of micro and small business on the economy of a country_2
INTRODUCTIONEntrepreneur can be defined as a person who pursue risk to start a new venture orbusiness for solving the problems and need of the society. The main intention of an entrepreneuris to formulate new and innovative products or service that helps them to earn more amount ofprofits. Along with this an entrepreneur takes step that helps them to take effective action forimplementing dynamic changes in the society. The present assignment is based from theperspective of entrepreneurs and their ventures (Reilly and Scott, 2014). Along with theirsimilarities and differences will also be discussed in this report. Data and statistics that show theimportance of small as well as micro business in context of social economy of UK need to bediscuss. In order to conduct them properly characteristic, skills and traits of entrepreneur thathelps to establishing new venture in market will also be cover in this report. TASK 1Types of entrepreneurial ventures and their typologyEntrepreneur develops a process of establishing new business in market that undertakesseveral types of risk such as financial risk, interest risk, capital risk etc. So to overcome from thisentrepreneur developed effective strategy according to their venture. Some types of venture aremention as follow:Small business entrepreneurship- The business which are operated in local or smallarea in a market that are limited within small part of the country. They requires small amount ofcapital and resources as they perform their operations within a specified area of market. Smallbusiness work with the main objective of earning large amount of profits. Therefore they followthe lifestyle typology, entrepreneurs who belong to this types of typology work with motive ofearning huge amount of profits. Moreover it leads them towards comfortable life by increasingtheir life standard (Rasmussen and Wright, 2015). Usually small Entrepreneur consider lifestyletypology because it helps them to modify their daily activities.Large businesses- large businesses perform their activities at a huge level whichdetermines that they operate their functions at multinational level. This types of business arelarge in size and covers a broader area of the market. Therefore they invest large amount ofcapital in order to complete their operations with more efficiency and effectiveness. At last thisorganization produce their products at abundant level because they fulfill the demand of large1
Impact of micro and small business on the economy of a country_3
number of customers. Entrepreneurs which control their business at large level follow growthtypology. This is beneficial for them as the main intention of this typologies is to increase theirmarket share by expanding their businesses at global level. Social enterprise- Enterprise which are started with the aim of manufacturing thoseproduct that reduces the issue and problem of society which are specifically related with aproduct are known as social enterprise. They work with the motive of developing the world in abetter way. For this they develops new techniques and methods that bring more innovation inexisting products. Size and scope of this firms is small because they work to solve problems oflocal customers (Mitchelmore and Rowley, 2013). Survival typologies followed by this type ofentrepreneurs which determines that they work not for earning profits but to solve the problemsof society. Like they layoff unnecessary activities that increases their production cost. Similarities and differences between small, large and social organizationThe below table covers the dissimilarity and similarities between different entrepreneurialventure. Similarities between entrepreneurial ventureParticular Small organisationLarge organisationSocial organisationInvestmentEach business requiresto invest some amountof capital to operatetheir business. Incontext of smallbusiness they put fewamount of money. They operate theirbusiness at large scale.Therefore largeorganisation place hugeamount of capital toperform their operations.They invest capital inthe organisation at fewlevel as their motive isnot to expand theirbusiness but to removethe problems of society.EmploymentThis organisationincreases theemploymentopportunities in thesociety by recruitinglocal people tocomplete theiroperations.Large enterprise producegoods at large amount.So they hire hugenumber of employees tocomplete their operationsthat creates moreemploymentopportunities. They work to solvedifferent issue inmarket. It determinesthat they complete theirwork with help of localindividual thatcommunicates differentissue in market and2
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