Entrepreneurship and Small Business Management - P1 Ventures Types

Entrepreneurship and
Small Business
Management
1

Contents
P1 Different types of entrepreneurial ventures
and relation with typologies..............................3
P2 Similarities and differences between
entrepreneurial ventures....................................6
P3 Impact of micro and small businesses on
economy..........................................................14
P4 Importance of small businesses and business
start ups to growth of social economy............17
2

P1 Different types of entrepreneurial
ventures and relation with typologies
Entrepreneurship can be described as an
ability to create a new business with a fresh and
innovative concept in order to earn desire profits.
It includes the use of natural resources, capital
and manpower to gain better outcomes along with
bearing overall risks related to it.
Types of entrepreneurial ventures
Small business entrepreneurship – This
can be described as small scale firms which are
run by individuals on their risk. It includes several
kinds of business including hairdressers, travel
agents, internet commerce store fronts, plumbers,
electricians, grocery stores and many more.
However, they have main goal of earning
sufficient profits to fulfil basic needs of their
family and they are not capable to attract venture
capital.
Scalable Start up entrepreneurship – This
include such businesses or start ups which as been
done by Silicon Valley entrepreneur and their
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investors. However, they already know that their
vision of business could change the world as they
have an ability to attract investment from equally
crazy financial investors or venture capitalists.
Large company entrepreneurship – The
large companies are consist finite life cycles in
which most of these organisations grow by
sustaining innovation, providing fresh goods that
are variants around their core products. It consist
several factors which encourage large
organisations to innovate their products such as
legislation, new competitors, new technologies
and changed taste of customers.
Social entrepreneurship – This refers to
such business concern who develops new
innovative products or facilities to fulfil social
requirements as well as issues. They did not focus
on business profits but have a vision to make
world a better place. However, it includes
charitable trust and other non profits enterprises.
Typologies of Entrepreneurship
The Skeptical entrepreneur – This type of
entrepreneurs observed success of other
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individuals and doubt on it. They have special
skills and abilities like innovators, opportunists,
specialists and so on. These entrepreneurs
thoroughly observe and analyse business of other
people and use their capability to innovate
business successfully. This typology is related
with small business entrepreneurship to run
business for completing their daily life needs.
The copycat entrepreneur – The copycat
entrepreneur have a habit to analyse ways and
ideas of others and them put efforts to copy them
exactly to run business for earning profits. It
includes the fact that their websites, business
cards and the way of presenting themselves it
carbon copy of a leader in their industry. The
copycat entrepreneur typology is related to large
company entrepreneurship for achieving growth
and gain better profits share in market among
competitive firms.
The specialist entrepreneur – This kind of
entrepreneurs are responsible for developing their
own business through their own creative ideas,
abilities, skills and capital. They have specified
and perfect knowledge about particular field to
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conduct tasks in appropriate manner. However,
they are passionate and put all their efforts and
skills to complete specific tasks in perfect way.
This typology of entrepreneurship is related to
scalable start up and social entrepreneurship for
innovate new ideas having a different vision to
complete in proper way.
P2 Similarities and differences between
entrepreneurial ventures
There are different types of entrepreneurial
ventures that can be observed at market place
working regularly to run their business properly.
It includes their own criteria of running business
and investing capital along with bearing risks to
fulfil set gaols respectively. However, it as been
analysed that different entrepreneurial ventures
has few of differences and similarities among
them which are given below.
Small and large entrepreneurs
Basis Small Business
Entrepreneurship
Large Business
Entrepreneurship
Differen
ces
 They put
efforts to
 The large
company
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earn better
profits for
completing
needs of
their
families.
 The
investment
of money
has been
done the
entrepreneu
rs to
establish
fresh
business
with
innovative
concept.
 They have
few
workers
who
perform on
entrepreneu
rs performs
to increase
profitabilit
y and
attaining
competitive
advantage
in market.
 They
requires
more
amount of
funds to
start new
business
with fresh
thought.
 The
number of
employees
are higher
in such
business
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daily basis
to conduct
desired
tasks and
operations.
organisatio
ns.
Similarit
ies
 They have
a goal to
earn profits
and
success.
 The small
firms are
responsible
for
developing
goods to
fulfil needs
and desires
of clients.
 They give
job
opportuniti
es to
 The large
company
entrepreneu
rs put
efforts to
achieve
missions of
business in
provided
frame of
time.
 They
organise
effective
learning
programs
for staff to
innovate
products in
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several
people.
order to
attract new
consumers.
 They
provide
employmen
t to
employees
and put
efforts to
improve
their
capabilities
and support
to fulfil
their future
requiremen
ts.
Scalable and Social Entrepreneurship
Basis Scalable Business
Entrepreneurship
Social
Business
Entrepreneurs
9

hip
Differences  They are
responsible
for
analysing
trends and
put efforts
to complete
actual
demands of
people.
 These
companies
consider
leadership
skills of
leaders and
invest
capital in
business for
achieving
desired
goal.
 They
analyse
social
require
ments
of
people
and put
efforts
to fulfil
them by
solving
proble
ms of
citizens
accordi
ngly.
 The
social
entrepre
neurs
tries to
collect
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 This type of
entrepreneu
rial venture
basically
relies on
certain
factors such
as market
share,
financial
indicators
etc. which
are tangible
&
quantifiable
measures.
sufficie
nt
amount
of
funds
from
differen
t
sectors
and
provide
it to
charitab
le trust
for
welfare
of
needy
individ
uals.
 They
are
respons
ible for
facilitat
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ing
changes
and
perform
ances
which
has
been
done
socially
.
Similarities  This type of
enterprises
are
classified
into
software
applications
Twitter,
Instagram,
Facebook
and many
more.
 They have a
 These
entrepre
neurs
use to
promot
e their
busines
s
through
Instagra
m,
Facebo
ok and
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goal of
attaining
better
profits
along with
increasing
sales of
business.
 The
entrepreneu
rs in these
ventures
generate
effective
opportunitie
s for
improving
overall
abilities of
business of
addressing
future
challenges.
Twitter.
 These
organis
ations
has an
objectiv
e to
increase
profitab
ility in
respect
of
fulfillin
g social
needs
of
people
at large
level.
 They
face
proble
ms in
present
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conditio
n to
gain
better
outcom
es and
attain
opportu
nities
for
future.
P3 Impact of micro and small businesses on
economy
Micro business enterprise can be described as
very small levelled firms including ice cream
parlour or a coffee cafe in neighbourhood with are
run by minimal workers and small amount of
investment. It includes the fact that a micro
enterprise generally operated by less than 10
people but they are responsible for increasing
economic growth with the help of improving
income as well as reducing overall cost of
business. However, it has been analysed that due
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to lack of proper training and formal jobs, the
number of micro entrepreneurs is quite high at
particular place. Moreover, they are helpful to
maintain stable economic condition which reduce
related complexities that has been developed after
Brexit.
Small business enterprise refers to a small
firm with few of workers having less volume of
sales. It can be considered as an independently
owned and operated company which has limited
revenue as well as size. Meanwhile, it involves
businesses like corporations, partnerships or sole
proprietorships. In addition to this, it has been
evaluated that small enterprise exist in every
industry and they can have wide range of
convenience stores to a little production plants.
However, it involves dry cleaners, engineering &
architectural firms, law enterprises and private
restaurants. They provide few of benefits to
economy like increasing income and give
employments to certain individuals.
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(Source: Brexit’s impact on small businesses,
2019)
From the above graphical representation, it
has been analysed that SMEs can be considered as
a backbone of economy as they are helpful to
enhance economic growth respectively. In the UK
economy, there are different type of SMEs which
always supports economy by giving the job
opportunities for people who really want work in
a proper way. In addition to this, there are 99% of
private firms which have 73% job opportunities
for people as compare to the from past years.
Meanwhile, SMEs are helpful to maintain
stability of economy which get disturbed due to
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Illus
tration 1: Brexit’s impact on small businesses

Brexit by improving economic growth and
income. However, it is observed that export and
innovation focussed Small and micro enterprises
are evaluated to remain concerned regarding
overall ramifications in Brexit respectively.
P4 Importance of small businesses and
business start ups to growth of social
economy
The small businesses and business start ups plays
an important role to maintain stability of economy
through improving income and facilitating further
growth respectively. It includes different types of
significances which facilitate to achieve better
economic condition. Meanwhile, these firms are
important in context of providing certain benefits
such as spark innovations, local improvements
and provide employments opportunities to
citizens which improve economic stability.
However, they are responsible for achieving
growth of social economy with the help of several
ways that are given below.
Provide job opportunities – The small
businesses and business start ups are responsible
for creating employments chances for people
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which facilitate to increase standards of living of
people. It will provide support to reduce the factor
of poverty from the nation which results into
better economic condition. However, youth get
jobs and fulfil needs of their families properly
which will helps to establish society full of
prosperity and happiness. Moreover, small
business also provide support to large enterprises
for conducting various operational functions to
attain desired goals with success.
Spark innovation – This can be described
as to introduce new innovative products and
services in market which change trends and
choices of people for purchasing goods. These
start ups focus on new and modified demands &
needs of customers and launch fresh products to
fulfil the same in proper way. However, exporting
innovative products is much helpful to earn better
income for improving economic condition.
Moreover, it will facilitate to increase goodwill of
particular country at global level and make strong
economy.
Local improvements – The local
improvements are observed due to beginning of
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small businesses due to fresh and innovative idea.
However, local people adopt new things and
improve their living of standards along with
getting jobs there. It is helpful to improve their
mind sets and financial condition to spend a better
life which results into strong economic condition
of the nation.
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