P3 Influence of micro and small business on the economy

This report is on "entrepreneurship and small business management". This study covers several types of entrepreneurial ventures along with their typology and also examines their similarities or differences between entrepreneurial ventures. Furthermore, the impact of small, micro, and start-up companies towards an enhancement of nation or social economy. Finally, analyze how entrepreneurs are unique from managers by comparing their skill, mindset, traits as well as application of suitable theories to identify their motivation level is also mentioned here. We will discuss here characteristics and skills of successful entrepreneurs and explain how they are different from managers.

Entrepreneurship and Small
Business Management

INTRODUCTION ...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
P1 Different types of entrepreurial ventures and its typology ................................................................3
P2 Similarities and differences between various entrepreurial venture .................................................5
TASK 2..........................................................................................................................................................6
P3 Influence of micro and small business on the economy ....................................................................6
TASK 3........................................................................................................................................................10
P5 Characteristics and skill of successful entrepreur and explain how they are different from managers
...............................................................................................................................................................10
P6 Examine entrepreurial personality reflect over their encouragement and mindset. ......................12
TASK 4 .......................................................................................................................................................13
CONCLUSION ............................................................................................................................................14
REFERNCES ...............................................................................................................................................16

INTRODUCTION
Entrepreneur is an individual who undertakes the creation, organization, ownership and
risk of business in order to enhance the lifestyle of community as well as improves the scenario
of economy in a better manner (Baum, Frese and Baron, 2014). Moreover, there are various
kinds of entrepreneurial venture who contains their own set of roles, size and structure in order to
achieve their business goal in an impressive way. In this study it covers several types of
entrepreneur venture along with their typology and also examine their similarities or differences.
Furthermore, impact of small, micro and start-up companies towards an enhancement of nation
or social economy. Finally, analyse how entrepreneur are unique from managers by comparing
their skill, mindset, traits as well as application of suitable theories to identify their motivation
level is also mentioned here.
TASK 1
P1 Different types of entrepreneurial ventures and its typology
Definition of entrepreneurship
Entrepreneurship refers to the activity which is associated with developing and running
one's own business in order to earn profit, as well as to ensure social benefits to economy.
Moreover, entrepreneurs are considered to be those individual who look forward to produce
value through creation and development of economic activity by highlighting and identifying
novel products, processes or market segments.
Differentiate entrepreneur from intrapreneurs
One of the most effective differences between entrepreneur and intrapreneur is that
entrepreneur is responsible to take effective risks in order to effectively manage their own
business enterprise. On the contrary, intrapreneur is an employee which is remunerated within an
organization on the basis of success of the unit for which they are hired. However,
intrapreneurship is the change initiatives taken along with a going concern by the people working
in company. Although both are fully focused on innovation or creativity yet entrepreneurs enjoys
better advantages than intrapreneur as they are not restricted with any sort of regulation or
environment i.e., their flexibility level is wider than intrapreneurs (Burns and Dewhurst, eds.,
2016).
Different activities linked to entrepreneurship

Market Prediction: One of the most prominent activities linked to entrepreneurship is
that an entrepreneur must effectively indulge in predicting the overall market which is essential
in order to appropriately enhance the scope of profit within the business.
Product and Business Planning: Another activity is related to the planning which could
be in context with the planning of business as well as the development of new products or
services.
Different types of entrepreneurial venture
Private: It is a business unit which is established, owned and operated by an individual
and their main motive to generate profit, instead of by or for any government or its agencies. Thy
grab opportunity in order to maximize profit and create economic advantages to others. For
instance, Virgin Airlines is one private organisation, which aims at providing aviation services to
public and earn effective profit.
Public: These entrepreneurship is an alternative, inventive approach for leading changes
in public realms. However, they are defined as the generation of novel or innovative idea and the
design or implementation of creative thoughts into public sector enterprise and their main aim is
to generate profit and also enhance the life style of community or societies. One such public
organisation is NICE, which provides effective health care services to public as per CQC
Standards.
Social: This kind of entrepreneur not just only maximize profit but they are triggered to
improve the societal well-being. However, they are defined as those individuals who run social
enterprises that are private entities used to conduct activities in public interest whose sole
mission not just to earn profit but attainment of various social or economic goals as well as
having capabilities of implementing innovative ideas for the issues of unemployment and social
exclusion. For instance, there are several organisations like NHS, which provides social services
in the form of health and social care to employees.
Large: Sustaining innovation supports in the growth of these companies by providing
new products. The factors which create pressure on entrepreur to introduce innovative products
are changes in taste of customer, new technologies, competitors etc. the culture and size of large
firm are difficult to manage.
Typology of entrepreneurial ventures

In today’s scenario of competitive world there are various kinds of entrepreneur within
society who work towards an attainment of profit. Typology refers to classification of
entrepreneurial ventures on the basis of certain effective characteristics, some of which are as
follows:
Lifestyle entrepreneurship: These kinds of firms are set up chiefly either to carry out the
activity which an owner of company enjoys or to secure a stage of activities that constantly
generates revenues at same pace (Drucker, 2014). Moreover, such kinds of enterprises are mainly
found in tourism and hospitality sectors where employers only constrained to provide hospitality
service to customer with less motivated to growth for giving increased level of satisfaction in
order to enlarge market share. For instance, TESLA is one such organisation which was solely
formed for its entrepreneur's passion to develop scientifically advanced offerings for its
customers.
Growth entrepreneurship: It is an opposite of lifestyle entrepreneurship whose main aim
is to grow further and multiply profit by selling the product and rendering services through novel
ideas and aggressive marketing tactics for fulfilling the changing requirements of customers
demand or need.
Female entrepreneurship: This type of entrepreneurship is referred to the type where the
operations of the firm are headed by female entrepreneur and the agenda of the business
organisation is to provide benefits to the female community.
P2 Similarities and differences between various entrepreneurial ventures
Differences between Large and Social Entrepreneurship:
Basis Large companies
entrepreneurship
Social enterprise
entrepreneurship
Objective The major principle of this
entrepreneurship is to create
massive profit by offering
satisfaction to customer
requirements and demands.
In social entrepreneur, their
main goal is to boost or
progress the living standard
of community or society by
rendering them basic facilities
and employment to them.
Size Under this type of companies, In this, it contains 10

it employs 250 personnel or
more that for achieving
business objective in a better
manner.
employees or less than that
for the formation of firm.
Structure There are various structure in
large business i.e. functional,
geographic, matrix, hybrid
which an organization implies
into their business function.
It is structured as
departments, programs, or
profit centre within
organization. It may also be a
subsidiary of its non-profit
parent, registered as either as
a for profit firms and many
companies implies mix of
different structures
simultaneously.
Similarities between Large and Social Entrepreneurship:
There are several similarities between large and social entrepreneurship. For instance,
both these organisations, in order to ensure effective functioning and goodwill within the
industry, have to indulge in social activities throughout the life of their business. Moreover, to an
extent, both these entrepreneurship types are associated with development of services and
products that provides benefits to individuals.
Differences Between Public and Private Entrepreneurship:
Basis Public entrepreneurship Private entrepreneurship
Objective These organisations are
formed for the objective of
not profit but to provide
public services to individuals.
Such companies are formed for
the purpose of earning profits
within the sector in which they
operate in.
Size There is no restrictions in
these firms to incorporate any
number of individuals to
There are different sizes of
these firms and generally
incorporate no more than 1500

perform their activities. employees.
Emphasis These organisations
emphasise on providing
effective value to the public
of areas in which they operate
in.
These entrepreneurship type
focuses on competition, market
technology, etc.
Similarities Between Public and Private Entrepreneurship:
Both these organisations are required to ensure a proper and effective satisfaction of their
organisation through appropriate and effective processes that ensure their maximum benefit.
Moreover, both these types are resource constraint and work towards acquisition of effective
resources in order to fulfil their organisational objective.
TASK 2
P3 Influence of micro and small business on the economy
Small business is any establishment that employs fewer than 500 employees or falls
beneath an industry specific annual cap on the other hand micro business are considered as those
association where 0-9 workforce or lesser than that who contribute their best effort towards an
accomplishment of profit. Along with this, they are regarded as the backbone of UK economy,
driving growth, opening new markets and creating jobs therefore their contribution is vital
(Hatten, 2015). However, each of these business has different structure of ownership and
number of employees and unrelated levels of activities related to economy. Moreover, small
business plays an important role in UK economy as representing around 99% of all businesses
and give employment to an increasing number of persons. Additionally, it impacted over various
sector of UK economy which enable them to enlarge their market share or size as well as overall
performance in a better manner.
Small and micro business influence on market share of UK economy

Illustration 1: Percentage of small and medium enterprises (SME) in the United Kingdom (UK)
in 2017
(Source: Percentage of small and medium enterprises (SME) in the United Kingdom (UK) in
2017, 2019)
In UK, small enterprises outnumbered the medium and large company far behind with no
comparison with the 99.3%in terms of numbers. On the other hand, medium business are only
0.6% and large firms contribute only 0.1% in UK (Essential Facts You Should Know about
SMEs in the UK. 2019). However, this share in the market will increase in future. It is forecasted
from the recent study that small business participation in top 10 cities of UK will be raised to
£217 billion by the end of 2020. The major contribution will be provided by sector related to
administrative and professional services in the form of SMEs. However, at present small
business are mentioned above in below figure by their quantities in percentage. Real estate
business, renting firm and other related activities are the most prominent small and micro
enterprises with 27% presence in UK economy presently.
Some of the positive effect of small and micro sector in UK economy are mentioned
below:

Involvement of disadvantaged groups: SME's include several individuals which are
associated with disadvantaged groups and help them enhance their standard of living effectively.
Job creation: There are many researchers available which prove that small firms are the
top source of employment generation. These enterprises are labour intensive instead of capital
intensive as they are responsible for 60-70% job creation in market. Moreover, with the
substantial amount of employment formation, there is also job destruction in small and micro
firm because based on that recent report it has been noted that birth rate of business is greater
than death rate. Therefore, there were around more than 380,000 births happened as compared to
131,000 deaths of SMEs in 2015. Thus, it has been concluded that birth are clearly outnumbered
the death rate (Karadag, 2015).
Illustration 2: Business demography, UK - Office for National Statistics
(Source: Business demography, UK - Office for National Statistics, 2019)
From the above shown graph, it has been observed that death of enterprise was higher
than birth of firm. The birth rate was around 10% while death rate was around 12% but soon
after recession, the birth were increasing from 2010 and it has reached an unprecedented level at
present.
Annual Turnover of SMEs: By far the biggest industry for SMEs in UK is the very
broad services sector, as 74% of business in UK are service industry but construction sector

accounts for 18% of all UK business and is more than any of the individual division within
service bracket. From the below shown diagram, 99.9% in Britain are SMEs and they generate
51% of all UK business turnover as they lack in generating employment to people which directly
affect country’s economy.
Illustration 3: % of Total UK Employment & Turnover By Industry Sector (Start 2018)
(Source: UK SME Data, Stats & Charts, 2019)
P4 Importance of small and start up business to the enhancement of social economy
Social economy refers to the one which is effectively formed by combination of
organisations which are associated with ensuring social benefits to the society. Small and start-up
companies are considered as main booster for the growth of UK economy which improves the
life standard of community or society make economy more effective, competitive and attractive
to investors. Moreover, they are capable of attracting and giving training to new personal to
produce innovative products that helps to achieve the goal of satisfying the social needs of their
local communities. For instance, there are several organisations like Funding Circle, which is
associated with providing appropriate services through creation of funding for people belonging

to the underprivileged groups. Thus, some of the influence which small ad start-up companies
are as follows:
Acclimating pioneering technology: Small business and start up company’s key basis is
to acquire novel concepts or modern technology which permit them to gain competitive
advantage. In current state of UK market, there is a great demand of advanced technology or
views among population or community which inspire associations to adjust business opportunity
in order to confrontation challenges or threat s in an operational and efficient manner.
Creating attentiveness: In order to activate business function easily, small business and
start up companies generates awareness among the individuals concerning instability in
economic condition (Karatas‐Ozkan and et. al., 2014). By this activity, it construct affirmative
and durable connection between company and civic which empower them to realise high and
bearable output and proficiency. Moreover, if individuals get fascinated towards the
consciousness concept then it help business to attain high level of efficacy and capture the
marketplace easily as well as it consent them to ascertain market opportunity and threat.
Diversity: Another positive contribution of these companies towards the economy is that
they are involved in appropriate and effective creation of offerings which create diversity within
the industries.
From the below elucidated points, small business and start up companies plays a crucial
role in the enrichment of financial evolution as well as expands the living standard of community
or society (Siegel and Wright, 2015). Moreover, they are viewed as one of the stimulating player
in entrepreneurial industry as they primarily emphasis on obtaining innovative concepts and
technology in order to gain competitive advantage and sustainable profitability ratio.
TASK 3
P5 Characteristics and skill of successful entrepreneur and explain how they are different from
managers
Success is determined by accomplishing milestones and goals for the businesses. It
takes years for an individual to become a successful entrepreneur (Mazzarol, 2014).
Therefore, there are numerous characteristics, traits and skills which sorts an
entrepreneur successful and differentiate them from other business managers. Mark
Zuckerberg is known as successful entrepreneur who founded Facebook which is the

world’s largest social network website. Steve jobs is another entrepreneur who has
announced the iPhones which is widely used by majority of the population.
Entrepreneur Characteristics Traits skills
Mark Zuckerberg
and Steve jobs
Innovators: For being
successful
entrepreneur, it is
highly important to be
innovative. Mark
Zuckerberg and Steve
jobs, both are
innovative in nature.
They have
manufactured
enormous innovative
products for their
customers which stand
them apart from other
business managers.
Competitiveness: The
number of industries
are increasing vastly
and every entrepreneur
senses that they can do
much better (Schaper,
ed., 2016). Thus, Mark
Zuckerberg and Steve
jobs manage their
trades with the motive
of winning
competitive advantage
towards fulfilment of
Flexibility: Today’s
business environment
is dynamic in nature.
However, Mark
Zuckerberg and Steve
jobs are efficacious
enough due to
flexibility in their
operations. They can
pact with the altering
environment
customer’s need as
quickly as possible.
This is because the
main aim of the
products manufactured
by them is to
encounter growing
customer demands and
wants which makes
them different from
other business
managers.
Disciplined: Mark
Zuckerberg and Steve
jobs always pressures
over their energy so
that they can carry
Risk taking: It is
associated with the
failure or loss.
However, Mark
Zuckerberg and Steve
jobs are dissimilar
from other business
managers due to their
risk taking strategies.
They have involved
themselves in several
occurrences where
results are undefined
and this is treated as
risk taking ability.
Leadership: It is a
capability of
individual to
encourage followers so
that they can work
with full zeal and
confidence for the
achievement of
business objectives.
Mark Zuckerberg and
Steve jobs pretences
strong leadership skills
in which they applies

business objectives.
Furthermore, this
outlines the track
record of organisations
success which enables
them different from
other business
managers.
their business work
efficiently foremost to
abolition of problems.
Their predominant
strategies makes them
different from other
business managers
because it supports
them in reaching
towards their planned
goals.
democratic leadership
styles that motivate
them to involve
personnel in decision
making process by
seeing their views,
opinions, problems,
etc. that will make
them different from
other business
managers.
There are several reasons through which it could be said that there is a substantial
difference between successful managers like Mark Zuckerberg and other managers. For instance,
it is sometimes seen that other managers lack discipline in their work and in performing
effectively, which separates them from the other managers. Reason of the same is that it takes
years of discipline and commitment towards business activities in order to be successful. Other
aspect which separates these managers to other manager is that the latter lack in risk taking skills
and the same restricts them to think out of the box and act effectively.
P6 Examine entrepreneurial personality reflect over their encouragement and mindset
Every entrepreneur comprises numerous abilities or competences, concerning that
supports them to acquire profit maximization with an optimal consumption of resources. Apart
from this, these components qualify them to govern their strengths in order to overcome their
inadequacies in order to bear in a business for a prolonged period of time (Ratten, 2014).
Alongside this, each one of entrepreneurs should enclose a remarkable and functioning
competency or capacity in handling or control business hard situation as well as make impartial
or apparent resolution in order to improve employee’s self-esteem or provide high level of
satisfaction. Moreover, for scrutinizing the guidance of entrepreneurial personality on their
motivation and mindset, it has a creative model which entitled as Big Five model that permit
them to increasing or examine characteristics, skill and traits is described below:

Openness: This trait incline to be more applied, tactical in their approach as it recognizes
innovativeness inquisitiveness, adjusting info as well as being open to first-hand involvements
because entrepreneur accept as true that by being open to world opportunities and invention etc.
Due to this they can appliance an effective decision which lead them to keep a healthy working
culture within business premises. Therefore, Steve Jobs is accepted as very flexible nature
personality who always sort use of all professional platforms which prepared them one of the
best entrepreneur in world.
Conscientiousness: Under this leaders takes an initiative to plan, organize, tracks the
procedure and hardly get into wrong or end up in trouble. Moreover, in many circumstances it is
stared as management trait is more than leadership as this feature should be controlled very
cautiously in order to smooth running of business function. However, Mark Zuckerberg was well
known for critical thinker as they takes an effort to evaluate prevailing or future market trend
which help them to expand their competitive advantage in competitive industry (Rey-Martí,
Porcar and Mas-Tur, 2015).
Extroversion: This sort takes controls if a void exists and is adaptable in nature as it is
known as a behaviour that perceptibly displayed in group setting as these personality type are
about attaining forward in personal or professional life. Moreover, solitary scene which is
perceived from extroversion is that they attempt to inspire results sometimes by being
excessively controlling or simply talking over the top of manager or any superior.
Agreeableness: It is relate with those trait which assist a personalities to get along with
most volume of people as it is often well liked and is termed as compassionate, sympathetic, a
great listener etc. This enables the entrepreneurs to balance the power and authority within
organisation and ensure a positive mindset in order to enhance the business operations more
effectively and thus, this could also turn into an effective motivating factor for entrepreneurs.
Neuroticism: It is reflected as essential personality trait that proved anxiety, fear,
moodiness, worry, envy etc. which leaders has to compact with indeterminate or complex
business situation and implement an effective approach in order to carry high level of satisfaction
and add value to public as well as boost business’s brand image (Sahut and Peris-Ortiz, 2014).
TASK 4
P7 How entrepreneur background experience can hinder or foster their career.

Every entrepreneur undergoes with many struggles and each of those problems
demonstrate them to accept challenges and move forward in life. In several cases, experiences
effect negatively or positively on entrepreneur in attaining their goals (Rey-Martí, Porcar and
Mas-Tur, 2015). Therefore, Mark Zuckerberg and Steve Jobs undertake difficult situation yet
they kept their positive attitude which is one of the key principles behind their success.
Mark Zuckerberg
Mark Zuckerberg is an American technology entrepreneur and philanthropist who is the
founder of Facebook as its chairman and chief executive officer. Born on May 14, 1984 in White
Plains and was raised in nearby Dobbs Ferry and his family was well educated. His father,
Edward Zuckerberg ran a dental practice and his mother Karen worked as a psychiatrist. Mark
Zuckerberg did his schooling in Mercy College. As for the economic circumstances are
concerned, he belonged to a well to do family background which inspired him in some manner
to become and entrepreneur to enhance his social and economic status. Mark Zuckerberg was
open mindset person who always sought for business opportunities as he develop his reputation
in college campus by introducing effective software by the name of FaceMash. However, he
faced legal hurdles and personal issues yet he was able to manage those situation and come up
with effective business strategy. That is the reason Zuckerberg and Facebook continues to
success in spite of criticism. Moreover, his educational background as well as will to move
forward from his negative experiences fostered his entrepreneurship in a better manner.
Steve Jobs
Steve Jobs is an American business magnate and investor and the founder of Apple. Inc.
He was born in the year Feb 24, 1955 (Sahut and Peris-Ortiz, 2014). He persuaded his education
in California and he was an adopted child by Paul and Clara Jobs. However, despite of a
favourable economic background, he faced loneliness, abuse in his childhood still he was
determined for his ambitions which made him to be an outstanding performer in current
competitive electronic world. However, he used to be inspired by his father's work and wanted to
pursue electronics while he was studying. He is known for innovation and because of that it
guided him to acquire new ideas and overcome hurdles which made him one of the successful
entrepreneur in world.

CONCLUSION
It is concluded from the above stated report that to become a successful in business,
entrepreneurship and innovation are very essential. However, it is focused on producing new
products and services which will help in the need of society. Along with this, there are various
types of entrepreneurial venture which contribute their best effort for an accomplishment of
business goal in an effective and efficient manner. However, small or micro and start up
business has huge role over the growth of a country’s economy as they provide enormous
opportunity to employment which improves the living standard of community or society.
Additionally, entrepreneur are different from manager in various aspects like traits, attitude,
mindset, skill and many more and that is why they are regarded as one of the essential element
for an enlargement of economy as well as to improve the overall performance of company.

REFERENCES
Books & Journals
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An introduction. In The psychology of entrepreneurship (pp. 33-50). Psychology Press.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
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countries: a small and medium-sized enterprise perspective. International Journal of
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Rey-Martí, A., Porcar, A. T. and Mas-Tur, A., 2015. Linking female entrepreneurs' motivation to
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