Importance of Small Businesses and Startups in Social Economy

Entrepreneurship and
small business
management

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
P.1. Examine various type of entrepreneurial venture as well as to explain how they relates to
the typology of entrepreneurship................................................................................................3
P.2. Explore the similarities and difference between entrepreneurial ventures..........................5
P.3. Interpret and assess relevant data and statistics to illustrate how micro and small
businesses make impact on the economy....................................................................................7
P.4. Explain the importance of small businesses and business startups to the growth of social
economy?....................................................................................................................................7
P.5. Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business manager? ...........................................................................................8
P.6. Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mindset?................................................................................................................................9
P.7. Examine , using relevant examples , how background and experience can hinder or foster
entrepreneurship?........................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Entrepreneurship is the process of developing new enterprise as well as bearing any of
their risk , with the view of making profit. It is an act of seeking investment and production
opportunity , developing as well as managing a business venture, so as to undertake production
function , arranging inputs like labour, land, capital, material and also introducing new product
and techniques , identifying new resources for the enterprise(Doh, 2019) And the individual who
creates new enterprise as well as embraces all the challenges in context to development &
operation is called an entrepreneur. And the organisation which is set up by entrepreneur is
known as enterprise. Various type of venture along with similarity and differences are cover
under this project. Interpretation of relevant statistic will be done for showing the impact of
micro and small business on the economy. Determination of characteristic traits as well as skills
of successful entrepreneur which make them differ from other managers are also discuss under
the report. Aspect of entrepreneurial personality with respect to motivation are also assess under
this assignment. The last topic is related to examine how background as well as experience can
hinder or foster entrepreneurship.
MAIN BODY
P.1. Examine various type of entrepreneurial venture as well as to explain how they relates to the
typology of entrepreneurship
Entrepreneur is the person who develop new firm to supply their services and product to
those who are interested to purchase in return of money. As entrepreneurial ventures are type of
business ,which is established by the entrepreneurs so they can easily gain maximum profit as
well as to earn money which tends to support to live the life comfortably. Different
entrepreneurial ventures segmented differently according to their scope , size, service and
purpose ( Fairlie, 2020)
Entrepreneurial activity: It indicates the business process where firm generate the value by
creating various different economic activity. The following activities are tends to be connected
with exploration of various new as well as ideas which is totally unique which leads to increase
growth as well as development of the venture. As these ideas are leads to convert into reality in
term to offer services and items to consumers/ clients with the help of business. Following ideas

are tends to be create to enhance various employment opportunities to the local audience of
country where company run their business (Herron, 2020)
Types of ventures
Small business: Such ventures have small size , has limited capital and operations. This
type of business engaged limited number of workforce. The main objectives of these ventures are
to earn profit against providing services and products. These ventures are operate their business
at small scale therefore it has narrow size and scope. It make their product & services available
to niche market. It runs the business in the form of sole proprietorship, LLP, partnership. The
main objectives of these business are to earn maximum profit. The respective firms engage not
more than fifty employees in their workplace. Few examples of private firm are Orion electro
tech and the example of public sector company is Travelogue (Kimmitt, 2020)
Large company: At huge level such type of company are operate their business.
Therefore it does not have any restrictions in terms to their size, scope, operations, number of
workers etc. These type of firm offer their products to large customer base. At global level also it
serve their services as well as expand their business operation. To run the business smoothly ,
large amount of money are tends to be involve in the business operation. Due to several year
experience , these organisation easily sustain in the competitive market and also it has ability to
adapt to changes which leads to provide survival for long term. Like Example of public sector
company is NHS. On the other hand Tesco are private firm (Jones, 2019)
Social enterprise: such business organisation are form with the intension to improve
standard of society and also for the purpose of welfare as well as development of society.
Various different type of new ideas are tends to be develop for the benefit of society. These type
of business has wide scope because it offer great opportunities to those who are local individuals
and can easily improve their standard of living. These type of firms are not concentrate on
earning high profit but their aim is to contribute to economic development for example save the
children from child marriage as well as from child labour.
Typologies of entrepreneurship
different type of typologies are include under entrepreneurship venture that are concerned
to development of business in terms to make business more efficient and affective. Following are
some examples of typologies-