Importance of Small Businesses and Start-ups in Social Economy

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
Different type of entrepreneurial venture and explain how they related to the typology of
entrepreneurship .........................................................................................................................3
similarities and differences between entrepreneurial ventures...................................................5
Interpret and assess relevant data and statistics to illustrate how micro and small business
impact on the economy...............................................................................................................7
Importance of small businesses and business start-ups to growth of social economy. ............10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship is related to the way of setting up business unit by analysing as well as
evaluating risks which are related to start-up a new venture like financial and other managerial
risk. In simple words, entrepreneurial ventures are started by entrepreneur who are having
abilities to take risk for setting up their own business (Dees, 2017). This report will going to
explain different type of entrepreneurial venture and typology related to their entrepreneurship.
Along with this, similarities and differences within entrepreneurial ventures will going to
elaborate within this. Furthermore, statistics and data will going to illustrate in respective report
for identifying impact of micro and small business on economy. In the end, importance of small
businesses and start-ups will discuss in relation to growth of social economy.
PART A
Different type of entrepreneurial venture and explain how they related to the typology of
entrepreneurship
Entrepreneur is individual person who create new business, bearing risk as well as
enjoying most of the rewards. Moreover, entrepreneur is generally seen as an innovator, source
of new ideas, goods, services and procedures. Apart from this, entrepreneurship related to
procedure of creating new enterprise as well as bearing any of its risk with motive of generating
profit. In simple term, entrepreneurship reflect capabilities as well as willingness of particular
person for handling possible risk. Aim behind all these is to make profit by serving society and
people involved within this (Demil and et.al., 2015). Within every business environment there
are several entrepreneurial ventures who have their own aims and objectives. At wide level
entrepreneurial venture are divided within two categories i.e., public and corporate sector
explanation of these are as follows:-
 Public sector – Within this sector companies are generally hold as well as control through
government and other legal authority of country. Main motive of public sector
organisations is to provide basic services as well as facilities to society of nation such as
health facilities, police, public transportation and many more (Satar and John,2019).
 Corporate sector – This sector is generally known as business sector as well it involve all
such business firm which are managed as well as owned through private individuals with
aim of generating revenue.

Public as well as corporate sector are two major categories which has been seen within
business environment. In addition to this, entrepreneurial venture is further divided within
several type of organisation or enterprises explanation of these are as follows :-
 Large company Entrepreneurship – They are the companies who have large life cycle
as well as operate at high level with huge resources and staff members. Main motive of
large company entrepreneurship is to expand their business for maximizing the amount of
profit earned.
 Scalable Start-up Entrepreneurship – These companies are important part of economy
as they are innovative cluster which have capability to change world in effective manner.
Moreover, scalable start-up entrepreneurship are managed as well as financed through
creative and innovative entrepreneurs (Drucker, 2014). Along with this, there aim is to
develop or create new things which are better as well as more innovative in comparison
of existing. Thus, for scalable entrepreneurship there is requirement of proper finances as
well as knowledge.
 Small Business Entrepreneurship – These corporations are working at small level and
reached up to limited geographical areas. Along with this, small business
entrepreneurship create better job opportunities for local population to that particular
area. There is no much requirement of finance for developing small business and also no
need of huge workforce or assets. Thus, it provide better options of work for financial
weaker section of entire society. Social Entrepreneurship – They are the enterprise which work for welfare of society
and their aim is to create equality at society by fulfilling basic requirement of deprived,
vulnerable and minority section of society. Social entrepreneurship is not running with
motive of generating revenue while they are taking major steps for creating better as well
as healthy atmosphere.
Various type of typology of entrepreneurship
A group of people who have common characteristics as well as features which make
them distinct from other is known as typology of entrepreneurship. There are several type of
entrepreneurship typologies which are based on their characteristics and nature. Some of them
are discussed below :-