Entrepreneurship and Small Business Management

This report explores different types of entrepreneurial ventures, including small, large, and social businesses, and their relation to the topology of entrepreneurship. It also discusses the impact of small and micro businesses on the economy, as well as the importance of small businesses and start-ups in the growth of the social economy.

Entrepreneurship and
Small Business
Management

Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1 Different kinds of entrepreneurial ventures and explain how these relate to topology of the
entrepreneurship......................................................................................................................................3
P2 The similarities and differences between the entrepreneurial ventures...............................................4
TASK 2.......................................................................................................................................................6
P3 Assess and interpret the relevant statistics and data which illustrates how the small and micro
business impact on economy...................................................................................................................6
P4 The importance of the small businesses and start-ups to growth of social economy..........................7
TASK 3 & 4................................................................................................................................................7
Covered in PPT.......................................................................................................................................7
CONCLUSION...........................................................................................................................................8
REFERENCES............................................................................................................................................9

INTRODUCTION
The entrepreneurs are the one who with their innovative ideas tries to satisfy the needs of
customers and generate high revenues in the competitive market. They play an essential role in
developing the economy of the nation through their hard work, skills and knowledge. The
entrepreneurs have the ability to turn their ideas into the reality so that they can generate high
revenues and profits from the entrepreneurial venture (Kuratko and Morris, 2018). This report
shall cover various kinds of entrepreneurial ventures together with their differences and
similarities, impact of a SME on the economy and the importance of small businesses in the
growth of social economy. Further it will include traits and characteristics of entrepreneurs, how
personality of entrepreneur reflect their mindset and motivation and the background and
experience of entrepreneurs.
TASK 1
P1 Different kinds of entrepreneurial ventures and explain how these relate to topology of the
entrepreneurship.
The entrepreneurs are the people who developed the new idea and convert them into an
opportunity in the competitive market by supplying the offering to target customers so that high
revenue is generated. Entrepreneurial venture is referred to as the company that is set up by an
entrepreneur so that profitability and revenues are generated which can make better living
standards for all. Various types of entrepreneurial ventures discussed below-
 Small business- These types of organizations are not required to have large number of
capital, employees, operations and size. They are aimed to be established for generating
profit by offering goods or services to the target market. They operate at a small scale in a
local area. The legal status of small business can be either partnership or the sole
proprietorship. For example boutiques, saloon, small grocery shops etc. are small scale
business.
 Large business- These kinds of organisations operate at large scale and have no limit for
the number of workforce, size, operations and scope. They have a huge target market to
which their offerings are provided and have the ability to expand at a global level. These

businesses have the ability to sustain in competitive market because of their experience in
operating the business for large time scale and have the ability to adopt new changes of
the market. Example of such businesses includes Sainsbury, Morrison, etc. (Zabelina,
Tsiring and Chestyunina, 2018)
 Social business- These are aimed to be established for conducting welfare of the society.
The entrepreneurs convert their innovative idea into the reality so that the weaker section
is uplifted. They have different opportunities in the market in order to improve the
standard of living of the people by providing goods and services to them. Examples of
social business include child labour, Shelter, Red Cross etc.
Entrepreneurial ventures are required to be engaged in different types of topology that are
associated with business development and helps the businesses to effectively run their
operations. Various topologies are discussed thereunder-
 Growth firms- These are mainly formed to earn maximum revenue and profit from
competitive market as innovative products or services are offered which helps in
increasing the profitability and productivity, thereby improving market conditions. The
innovative ideas help in satisfying the needs of customers. These ventures fall under the
large and small business enterprises.
 Lifestyle enterprise- These business organisations are mainly formed to improve the
standard of living of the people where job opportunities are created for the local people
and goods and services are offered to them. These are mainly aimed to improve lifestyle
and living standard of the local people (Turner and Gianiodis, 2018).
P2 The similarities and differences between the entrepreneurial ventures.
DIFFERENCES
Basis Small Large Social
Purpose The main aim of this
business organization is only
to earn the livelihood by
generating profits.
Their aim is to
generate high profits in
the competitive market
by the innovative
ideas.
These business
organizations are
aimed to uplift the
local people or weaker
section of society
Scale They operate at small scale These business These kinds of

level due to less capital
contribution
organisations operate
at the large scale as it
involves high level of
investment.
organisations operate
at the local level so
that the basic needs of
the people are
satisfied.
Characteristic
s
These businesses require
limited resources for running
the business.
These businesses
require high level of
capital and investment
in order to run the
business.
They are required with
limited capital which
can help in uplifting
the living standards of
the people.
SIMILARITIES
Basis Small Large Social
Society
upliftment
These businesses provide the
opportunities to local people
to earn their livelihood by
working with them.
These organisations
provide job
opportunities to people
so that their living
standards are
increased with more
income opportunities.
These firms work to
uplift the living
standard of people,
specifically the weaker
section
Meeting the
demands and
needs
The small business works to
satisfy the needs and wants
of the local people.
They are aimed to
satisfy the needs of the
target market at a big
level (Igwe and Icha-
Ituma, 2020).
These enterprises are
aimed to offer support
to the people who
belongs to poor
section of society.

TASK 2
P3 Assess and interpret the relevant statistics and data which illustrates how the small and micro
business impact on economy.
The companies play a prominent role in developing the economy as they contribute in
developing the infrastructure, buildings and other aspects of the nation. They place a huge impact
on economic conditions of the state. Different types of businesses are narrated thereunder-
 Small business- These organisations employ less than 50 employees and have the annual
turnover of £5 Million. They place less impact on an economy as they do not generate
high revenues.
 Medium business- They employ approximately 50 to 250 employees in the business and
have the annual turnover of £5 million to £22 million as they offer job opportunities to
the people. They place some impact on the economy.
 Large business- They operate at large scale and employ more than 250 workforces. Their
annual turnover is more than £22 million and has large impact on the development of
economy due to offering large number of job opportunities at the domestic and
international level (Sani, Mohd-Khan and Noor, 2019).
Impact of a SME on the economy
 Local impact- The small and medium enterprises impacts the economy at the local level
as they offer goods and services to the local people in order to fulfil their needs. They
analyse the demand in the market together with the purchasing power so that it can
produce their products in accordance with it. They also offer employment opportunities
to the local people in order to improve their living standards that also assist in
development of local economy.
 Regional- The small and micro enterprises impacts the regional economy by offering job
opportunities to the people and reduce the unemployment rates of the region. By offering
high employment opportunities, it helps the organization to expand its business which
improves the regional income and thereby contributes in developing the economy.
 National- These enterprises also affects the national economy as they are engaged in
operations which require less capital. They focus on converting the innovative ideas into
the reality so that the profitability is enhanced. Due to generation of high revenue, it

assists in developing the national economy. Approximately 15.71 million people are
currently employed by the SME in UK which positively impacts the development of
economy (Zhu and Liu, 2020).
P4 The importance of the small businesses and start-ups to growth of social economy.
The GDP of the nation is grown and developed by the contribution from small
entrepreneurs and startups as they have the capability to generate high job opportunities. It also
helps in profit maximization that positively impacts the social economy of the nation. In UK, the
SME plays an important role in the growth of economy and the UK government also provides
support to them by offering financial assistance and relaxation in the process of registration so
that small businesses are promoted. The value of SME on the growth of social economy is
illustrated below-
 Creation of job- The small and micro business have the ability for creating job
opportunities as they require the number of staff in their initial phase so that the local
people are supported to raise their living standards. Moreover these also offers quality
product and services at reasonable price so that people can afford it to raise their standard
of living.
 Economic growth- The SME generates high revenues on an annual basis by providing
quality offering to the people at reasonable price. This helps them in increasing their sales
and thereby results in paying taxes which helps in improving the financial health of the
nation. This motivates other entrepreneurs to establish their own enterprise so that high
profits are generated which helps in enhancing the growth of economy (Shukaili and et.
al., 2018).
TASK 3 & 4
Covered in PPT

CONCLUSION
It is concluded from this report that there are different types of entrepreneurial ventures
such as small, large and social which are associated with the topology of entrepreneurship. The
small businesses play an important role in developing the economy of the nation as it contributes
in job creation and economic growth which helps in raising the living standards of the people.
Further it is added that these businesses affects the local, regional and national economy as they
offer job opportunities and quality offering to the people.

REFERENCES
Books and Journals
Igwe, P.A. and Icha-Ituma, A., 2020. A review of ten years of African entrepreneurship
research. Research Handbook on Entrepreneurship in Emerging Economies.
Kuratko, D.F. and Morris, M.H., 2018. Examining the future trajectory of
entrepreneurship. Journal of Small Business Management. 56(1). pp.11-23.
Sani, H., Mohd-Khan, S.J.B. and Noor, M.S.Z.B., 2019. Do Social Capital and Small and
Medium Enterprise Factors Influence the Performance of Small Businesses? Empirical
Evidence from Emerging Economy. Academic Journal of Economic Studies. 5(4). pp.78-
88.
Shukaili, A.A., and et. al., 2018. Entrepreneurship policy to overcome barriers to new firm
growth in a developing economy: evidence from Oman. International Journal of
Entrepreneurship and Small Business. 35(4). pp.511-537.
Turner, T. and Gianiodis, P., 2018. Entrepreneurship unleashed: Understanding entrepreneurial
education outside of the business school. Journal of Small Business Management. 56(1).
pp.131-149.
Zabelina, E., Tsiring, D. and Chestyunina, Y., 2018. Personal helplessness and self-reliance as
predictors of small business development in Russia: pilot study results. International
Entrepreneurship and Management Journal. 14(2). pp.279-293.
Zhu, X. and Liu, K., 2020. A systematic review and future directions of the sharing economy:
business models, operational insights and environment-based utilities. Journal of Cleaner
Production, p.125209.