Entrepreneurship and Small Business Management

Entrepreneurship and Small Business
Management
Contents
INTRODUCTION.......................................3
LO 1.............................................................3
P1 Different types of entrepreneurial ventures 3
P2 Analysis of similarities and difference between entrepreneurial ventures 5
P3. Data and statistics for the impact of micro and small business on economy 6
P4. Importance of small businesses and start-ups in the growth of social economy 7
CONCLUSION............................................8
REFERENCES............................................9

INTRODUCTION
Entrepreneurship can be defined an activity
of setting business by taking financial risk
with a hope of making profit out of it. It is a
way to set up business by taking financial as
well as managerial risk. The study highlights
the different types of business such as micro,
small and medium-sized business. It also
discusses the various characteristic, traits
and skills of an individual.
LO 1
P1 Different types of entrepreneurial
ventures
An entrepreneur can be an individual
that starts and operate the business with
proper planning and limited resources. The
entrepreneur usually introduce a new idea or
product in which it sees potential rather than
business that is already existing. These
ventures are mostly targeted on getting high
returns with high uncertainties. They
introduce their capital by arranging funds
and in a way risk their financial security
(Blackburn, 2016). The responsibility of
arranging raw materials, skilled employees
as well as arranging funds. The departments
of marketing, sales and distribution are
controlled by the entrepreneur.
Enterprises are associated with
entrepreneurial ventures that are formed to
earn profit and when they get successful it is
known as enterprising. The concept of
entrepreneurship is very easy to understand.
It simply means an individual who bears all
the risk for the business and in return it takes
all the profits from the business as well. It
beings new goods, services and technology
in the market.
To understand the concept better it is
important to understand the importance of
entrepreneurship that is innovation. An
entrepreneur is the key source of bringing
innovation and variation in the economy.
The innovation they bring can be in the form
of new idea, product, services or technology.
The other factor associated with
entrepreneurship is that it goes along with
risk as it is managed by one person. On the
positive side it helps in exploring the
opportunities and give them competitive
advantage.
The other factor is vision which
drives the entrepreneur to drive the business.
It gives the outline to the business about