Importance of Small Business and Start-ups in Social Economy

Entrepreneurship and
small business
management

Table of Contents
INTRODUCTION ..........................................................................................................................3
LO1 .................................................................................................................................................3
P1 Types of entrepreneurial ventures and relate to typology of entrepreneurship.................3
P2 Similarities and difference between entrepreneurial ventures .........................................4
LO2 .................................................................................................................................................7
P3 Interpret data and statistics to micro and small business impact on economy..................7
P4 Importance of small business and start-ups to growth of social economy .......................9
LO3................................................................................................................................................10
P5 Characteristics, skill and traits of successful entrepreneurs that differentiate from business
managers...............................................................................................................................10
P6 Aspects of entrepreneurial personality............................................................................11
LO4................................................................................................................................................13
P7 Using relevant examples, how background and experience can hinder and foster
entrepreneurship .................................................................................................................13
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Entrepreneurship defines the ability to develop, organize, manage and run a particular
business entity for earning high profits by taking more risk. Entrepreneurship and small business
management refers to an approach that is related to offering creative and unique products to the
people that fulfils the needs of society people. This project report is based on promoting
entrepreneurs for encouraging local people to start a new organisation. It involves various types
of entrepreneurial ventures with their typologies so that it is easy to understand the scope and
purpose with their similarities and differences. Therefore, it also involves the data and statistics
that will impact the UK economy. Further, it also explains the importance of small and start-up
business in social economy. It determines the entrepreneurs traits, skills and characteristics that
are different from managers. Further, OCEAN model reflects their personality that helps in set
their mind to become an entrepreneurs and at last how the experience and background can hinder
and foster entrepreneurship(Burns, 2016).
LO1
P1 Types of entrepreneurial ventures and relate to typology of entrepreneurship
Entrepreneurship- It refers to a process of organising and running a business venture by taking
financial and non financial risk for generating more profits and revenues. This term encouraged
people to capture new opportunities and become successful in their life. A person who
established the business entity and run for earning profits is called entrepreneurs.
Entrepreneurial ventures
It refers to that place where an entrepreneurs can do innovation, creativity for capturing
new opportunity by maintaining the social value. It includes diverse types of entrepreneurial
enterprieses such as small, large, social etc. and this type of firm are take risk for placing their
business on the new heights. Several kind of entrepreneurial ventures can be explained
below(Burns and Dewhurst, 2016).
Types of entrepreneurial ventures
Large business enterprise- This type of entrepreneurial ventures are large in size with large
number of working employees. This type of enterprises are operated their business on
international level that helps in earning higher profits and revenues. Examples included- Tesco,
M&S etc.

Small business enterprise- It refers to that type of entrepreneurial ventures that are individually
owned where limited workers are working in lieu of earning some money. The scope is relatively
small as they offered their goods and services in niche market. The best examples are Clarasys,
yoga studios etc. they are working for the profits equal to£ 2 million.
Social enterprise- This venture are run for the development and welfare of society with
innovative and creative ideas that helps in enhancing the standard of living of society people.
Their major aim is to contribute in the social development rather than earning profits. In this
different charitable trust and associations are involved such as National trust etc. They raise
funds from the government(Laudano, Marzi and Caputo, 2018).
Entrepreneurial typologies
 Lifestyle entrepreneurship- It refers to that type of typologies that can increase the
living standard of the society people by providing the job opportunities to the local
people. This is basically related to the large entrepreneurial venture because they provide
employment on the large scale due to which people spending power will be enhanced and
it shows the high living standards. This type of entrepreneurship are working with more
resources and capital this helps in beating the competition within the marketplace.
 Growth entrepreneurship- This type of firms are working for longer sustainability by
earning more revenues. They can design the products in a feasible manner which can
fulfils the demands of consumers. This type of typology represents the small enterprise
that run their business for longer sustainability and for enhancing growth(Volery and
Mazzarol, 2015).
 Social entrepreneurship- This typology is working for the development and welfare of
the society rather than focus on earning profits. It is related to the social enterprise
ventures that helps in enhancing the living standards of the people by developing the
society infrastructure and values.
P2 Similarities and difference between entrepreneurial ventures
Difference between entrepreneurial ventures
Basis Private enterprises Public enterprises Social enterprises
Role The major role of the
organisation is to earn
The leading role of
this type of company
social enterprises
plays an essential role