Small and micro businesses impact on economy

Entrepreneurship and
Small Business
Management
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Different types of entrepreneurial ventures and it relates to typology of entrepreneurship .......3
Differences and similarities between various types of entrepreneurial ventures.........................5
Small and micro businesses impact on economy.........................................................................7
Importance of business start-ups and small businesses to growth of social economy.................8
TASK 2............................................................................................................................................9
Skills and characteristics traits of successful entrepreneurs that different from other business
managers......................................................................................................................................9
Aspects of entrepreneurial personality reflect entrepreneurial mindset and motivation ............9
Experience and background foster or hinder entrepreneurship ................................................10
CONCLUSION .............................................................................................................................10
REFERENCES .............................................................................................................................11
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INTRODUCTION
Entrepreneurship is the activity held by businessman for setting up businesses, and taking
on productivity and financial risks in hope of profit. In other words' entrepreneurship is the
ability to organize the new or existing business venture along with many risks in order to make
money. It is one of fundamental elements for social and economic growth. It brings forth for
regional as well as national development as well as local. A successful businessman helps to
managed their business and contribute to developed it more than before. This report is based on
various types of entrepreneurial ventures, types of typologies and also explains similarities and
differences between entrepreneurial ventures. Small and micro business impact on economy and
also defines the importance of start-up business as well as small to growth of social economy.
Furthermore, it justifies characteristics and skills of successful entrepreneurs, businessman
personality reflects their mind set and motivation. At the last, it clarifies background and
experiences of entrepreneur foster or hinder them.
TASK 1
Different types of entrepreneurial ventures and it relate to typology of entrepreneurship
Entrepreneur- Entrepreneur is the person who sets up the businesses and responsible for
all potential risks and taking on financial risk in hope of profitability (Bennett, 2014).
Entrepreneur set up their business with innovative and great ideas that recognises need for
creation of the venture. Imagination, creativity and thirst for work is the characteristics of
businessman as called entrepreneur.
Entrepreneurship- Entrepreneurship is the activity held by entrepreneur for setting up the
new businesses and invest money in hope of increasing profit. In short it is the procedure of
running, launching and designing new business which is often initially the small or medium size
business.
Entrepreneurial venture- Entrepreneur is the individual who runs and starts the business
with limited planning and resources, he or she is responsible for all rewards, profit and risks of
business venture.
Enterprise- It is a business specially the organization that will earn money for running
their business and daily operations successfully.
Types of entrepreneurial ventures
Established organization-
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A company that is established and well manged their business successfully within nation
is known as established organization (Bogdanova and et.al., 2016). For example, TESCO is one
of the well-established firms in UK, they provide groceries and other services to people across
the borders.
Small size social venture-
Small size social venture is the undertaking by organization or firm established by the
social businessman that seeks to provide manageable solutions to achieve the suitable social
objective. For example, Funeral care centre is one of the social ventures that provide better
services to local to residential people in UK.
Large size social venture-
Large size social venture also serves their services across the border, as they are able to
provide health care facilities to peoples and helps to make them healthy or fit. For example, Red
cross is considered as large size social venture. They spread their business almost all over the
world.
High growth firms-
High growth firm is the organization growing faster than the others or broader economy,
for example Facebook (Ratten, 2014). It is one of the leading and most popular firm in all over
the world, they serve their services globally and many peoples love to stay connected with
Facebook application.
Typology of entrepreneurship
Survival firms:
Survival companies face many issues due to lack of resources and money which impact
on their business. Funeral care is considered as survival firm because they cannot be able to
generate profit as compare to other companies and survive in business.
Lifestyle firms:
Lifestyle organization is those businesses that provide reasonable living for their creators
than incurring risks that bring with prospects of high progress. TESCO is one of the lifestyle
companies that managed their business according to people needs and provide products as per
people requirement based on current market trend.
Managed growth companies:
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Facebook is well managed growth company and has been build good relation ship their
customers. They managed its business successfully and work based on market demands and
contribute to connect many peoples across the nation.
Social enterprise:
Red cross is social enterprise, it is the UK based company and provide health and social
care facilities to many peoples (Chell and Karataş-Özkan, 2014). Social enterprise is one of the
typologies that related to red cross firm based on working structure.
Differences and similarities between various types of entrepreneurial ventures
Similarities bases Established
company
Small size
social venture
Large size
social
venture
High Growth
firms
Creative idea These companies
constantly focus
on creating new
things and make
some changes in
their existing
which helps to
grab the attention
of customers
(Obeng, Robson
and Haugh,
2014). As similar
to the other firms
TESCO
management
bring creative
ideas which is
beneficial for
them.
Just like the
established
companies’
small social
ventures also
efforts to run
their business
effectively with
the help of
creative ideas.
Large size
social venture
such as Red
Cross focus
on creating
new ideas in
order to serve
its best to
peoples and
make them fir
and healthy in
their lives.
High growth
companies for
example,
Facebook
already has built
their higher
position within
market with the
help of creative
ideas in order to
gain profitability
and maintain its
reputation.
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Funding sources TESCO take
funds for running
their business
from banks and
investors.
Just like another
company funeral
care also
required to take
funds from some
business
investors.
Large size
social venture
gathers funds
via events and
campaigns
related to
social well
fare.
On the other side
like the small,
large and
established
company’s high
growth firm also
take loans for
implementing
new
technologies.
Constant innovation Innovation drive
business towards
success and help
business to grow
more than before.
TESCO
continuously
make creative
things and focus
on producing
different products.
Small size
ventures
constantly do
innovative
things with their
business and try
to do something
unique and
different.
Red Cross
with the help
of their
management
efforts for
creating
innovative
things and
make some
plans based
on people
well fare.
Like the all types
of
entrepreneurial
ventures high
growth firm such
as Facebook will
constantly
innovate new
system to make
customer happy.
Differences between various types of entrepreneurial ventures-
Differences
bases
Small size social
venture
Established
company
Large size social
venture
High Growth
firms
Managerial style Funeral care is
small size social
venture firm they
managed their
business with
TESCO
management will
take their
decisions based
on analysis of
Red cross
managed their
business with
different
managerial style
Facebook is
considered as
High growth
company that
well managed
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different
managerial style
based on their
work.
current situation
which is useful
and beneficial for
whole business.
and include
employees within
decision making
procedure.
their business and
try to maintain it
successfully.
Managerial focus Funeral care
focus on
managing their
business and
using different
types of tools for
that.
Established firms
focus on
achieving their
goals and invest
in new
technologies.
Red cross
especially
focuses on
economic well
fare and services
quality.
High growth
firm such as
Facebook focus
on managing
their business and
generate more
profit margin.
Annual growth
rate
There annual
growth is based
on business
performance.
TESCO earn
more profit via
biggest
supermarket
chain more than
small social
ventures.
Red cross annual
growth rate is
getting higher
per year based on
their work and
service provided
areas.
High growth firm
generate high
revenues than
small and large
size businesses.
Technology
investment
Funeral care
cannot be able to
invest in
technology.
These types of
companies are
able to invest
money in
advanced
technology if it is
necessary.
Large size social
firms invest
money in
technologies but
on some extent
because it
impacts on their
business and
financial
performance.
High growth firm
constantly invest
money in
advanced
technologies and
tend to
implement new
systems within
organizational
structure in order
to retain for
longer.
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Small and micro businesses impact on economy
Small business impact on economy and play essential role in growth of UK economy
creation of jobs, social integration and innovation (Mazzarol, 2014). 99% of small and micro
businesses within UK provide employment opportunities to local and residential peoples which
helps to managed their lives. Small business provides 35% employment opportunities to peoples
and support to managed living standards. Small businesses contribute to economies by bringing
innovation and growth to community in which business is well established.
Micro size business plays the important role in UK economy as represent around 98% of
all businesses and provide 41% employment to the increasing number of persons. In London
they provide 34% of total persons employed which is beneficial for business as well as economic
growth. In 2015 small business provide 1.9 million jobs to local peoples and offer the best salary
packages to them. As of 2018, small and micro size business provide 30.2 million job
opportunities and employed the total of 59.9 million employees.
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Illustration 1: Role of Micro and Small Businesses in Today’s Economy
(Source: Micro and Small Businesses contribution in Today’s Economy,
2018)

Importance of business start-ups and small businesses to growth of social economy
Small businesses and business start-up are very essential for economic growth, they offer
the best job facilities to local and residential peoples. Small companies impact on local level as
they provide jobs opportunities which is essential for the growth of social economy. When they
expand their business at national level small business were also given people support via offering
them the best job opportunities as it is important for economic growth. If they expand their
business at global level in order to increase profit, they must hire new peoples and adopt new
market culture which is beneficial for them as well as social economy (Julien, 2018). They play
vital role in maximizing growth rate of economy in term of employment. On the other side, start
up business will be beneficial for increasing progress rate of social economy within UK. Start up
companies required skilled and talented peoples who helps to run their business and accomplish
tasks effectively. They are important to growth of economy in term of employment
opportunities.
TASK 2
Skills and characteristics traits of successful entrepreneurs that different from other business
managers
Skills of successful entrepreneurs-
James Dyson is one of the successful entrepreneurs in UK, he is the founder of Dyson
company. He has the best leadership skills which helps to lead their team, he can be able to
communicate with its team members effectively as compare to other successful mangers within
UK.
Richard Branson has time management skills and He has ability to think differently
from another company manager which is beneficial for its business.
Characteristic traits of successful entrepreneurs-
Richard Branson is very passionate which help them to determine ways that is required
to become successful businessman.
James Dyson has learning characteristics which help to understand different things and
contribute in producing their product. He has creative and innovative characteristics which
make James Dyson able to continuously developed new ideas that will support in improving
continuing growth of business. All the skills is different from other business manager based on
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their working style, because manager is accountable for managing the work of employees and
business.
Aspects of entrepreneurial personality reflect entrepreneurial mindset and motivation
Ocean model define entrepreneurial personalities reflect on their motivation and mind set-
Openness- James Dyson always feel open to create ideas and make excellent ones which
is beneficial for them as well as business growth. Richard Branson also interest in creating new
ideas and implement in business structure.
Conscientiousness- James Dyson are always prepared to adopt new changes and facing
risk within business which make them able to become stronger and wise. On the other hand
Richard Branson exacting in their work, they can be able to adopt new changes and achieve
goals.
Extraversion- James Dyson and Richard Branson both are extraversion, they like to
except challenges and able to accomplish desired goals and business objectives.
Agreeableness- James Dyson is generous and helpful person he helps other people
working in their team and encourage all of them to work hard. It reflects on their mindset and
motivate him to do more and innovate new things. Richard Branson is not interested in other
peoples issues they only focuses on making money which motivate him in their life.
Neuroticism- it defines the tendency to experience negative emotions such as anxiety,
anger or depression. James Dyson experience positive emotion in his past life and it will
motivate him to go beyond their boarders and make them able to overcome within negative
environment. Richard Branson also face failure situation which motivate him to do more and
become stronger than before he learns from his past.
Experience and background foster or hinder entrepreneurship
Local entrepreneur-
J.K Rowling is one of the local entrepreneurs, his family and personal life experiences
foster her to become successful writer. She faces many difficult situations as a single mother and
learn a lot during that time which helps to make her stronger and able to achieve their goals and
get desired outcomes, it can be shows that experience of her past life foster J.K Rowling towards
become successful entrepreneur.
International entrepreneur-
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James Dyson is one of the international entrepreneurs he learned a lot in his past life, as
belongs to educated family background Dyson always drive towards creativity which foster him.
As belongs to educational family they always try to learn something new or different and efforts
to understand things which helps to increase their knowledge more and more and drive them
towards achieving success.
Social entrepreneur-
Florence Nightingale is an English social statistician and founder of modern nursing, she
serves services as trainer and manager of nurses this experience drive her towards become social
entrepreneur and foster to make modern nursing home.
CONCLUSION
The report concluded concept of entrepreneur and entrepreneurship in the extensive way,
it discussed contribution of small and medium size business towards growth of nation as well as
economy. On the other hand, this study has been discussed detailed report on characteristics and
skills of different entrepreneurs and drivers of motivation that helps Richard Branson and James
Dyson become successful business man.
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REFERENCES
Book and Journals
Bennett, R.J., 2014. Entrepreneurship, small business and public policy: Evolution and
revolution. Routledge.
Bogdanova, S.V. and et.al., 2016. Management of small innervational enterprise under the
conditions of global competition: possibilities and threats. European
Research Studies. 19(2). p.268.
Chell, E. and Karataş-Özkan, M. eds., 2014. Handbook of research on small business and
entrepreneurship. Edward Elgar Publishing.
Julien, P.A., 2018. The state of the art in small business and entrepreneurship. Routledge.
Mazzarol, T., 2014. Research review: A review of the latest research in the field of small
business and entrepreneurship: Financial management in SMEs. Small
enterprise research. 21(1). pp.2-13.
Obeng, B.A., Robson, P. and Haugh, H., 2014. Strategic entrepreneurship and small firm growth
in Ghana. International Small Business Journal. 32(5). pp.501-524.
Ratten, V., 2014. Future research directions for collective entrepreneurship in developing
countries: a small and medium-sized enterprise perspective. International
Journal of Entrepreneurship and Small Business. 22(2). pp.266-274.
Sahut, J.M. and Peris-Ortiz, M., 2014. Small business, innovation, and entrepreneurship. Small
Business Economics. 42(4). pp.663-668.
Siegel, D.S. and Wright, M., 2015. Academic entrepreneurship: time for a rethink? British
Journal of Management. 26(4). pp.582-595.
Volery, T. and Mazzarol, T., 2015. The evolution of the small business and entrepreneurship
field: A bibliometric investigation of articles published in the International
Small Business Journal. International Small Business Journal. 33(4).
pp.374-396.
Online
Micro and Small Businesses contribution in Today’s Economy. 2018. [Online]. Available
through:<https://www.market-inspector.co.uk/blog/2017/05/facts-about-small-medium-
businesses-in-the-uk>
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