The Impact of Small Business and Entrepreneurship on Social Economy
Assess students understanding of entrepreneurship and small business management, exploring different types of entrepreneurial ventures and assessing how small businesses impact the economy.
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Added on 2020-10-22
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6 P.5, P.6, P.7.Enclosed in PPT 6 INTRODUCTION 6 REFERENCES 8 Entrepreneurship can be defines as the concepts of developing and managing a business venture in order to gain profit by taking various risks in the company. Moreover, report will also assist in highlight the impact of the level Small and medium business are contributing to the UK economy. There are various types of entrepreneurial venture, which are as follows: Small Business entrepreneurship: In this type of business venture
The Impact of Small Business and Entrepreneurship on Social Economy
Assess students understanding of entrepreneurship and small business management, exploring different types of entrepreneurial ventures and assessing how small businesses impact the economy.
Added on 2020-10-22
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Table of ContentsINTRODUCTION...........................................................................................................................1P.1. Examining the scope, development and growth of various entrepreneurial ventures ........1P.2. Differences and similarities between different types of entrepreneurial ventures...............2P.3. Critically examining the impact of small businesses on the UK economy with statisticaldata..............................................................................................................................................4P.4. Explaining The importance of small businesses and start-ups in growth of socialeconomy......................................................................................................................................6P.5, P.6, P.7.Enclosed in PPT.....................................................................................................6CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................8
INTRODUCTIONEntrepreneurship can be defines as the concepts of developing and managing a businessventure in order to gain profit by taking various risks in the company. It is the willingness of aperson to start a new business. Entrepreneurship has played a vital role in economic developmentof any country across the globe. An entrepreneur is a person who has an idea to start a newbusiness is potential and willing to work for himself. The present report will assist in providing adeeper insight about different aspects on entrepreneurship. It will identify different types ofentrepreneurial ventures. Further, it will highlight the differences and similarities that are possesby different ventures. Moreover, report will also assist in highlight the impact of the level Smalland medium business are contributing to the UK economy. The importance of this SMEs in UKeconomy post-Brexit will also be discussed. Furthermore, the report will highlight thecharacteristics and skills that has motivated the famous and successful entrepreneur of Britain. Atlast, report will illustrate the ways in which background and experience of this entrepreneur hasaffected them.P.1. Examining the scope, development and growth of various entrepreneurial ventures .An entrepreneur can be defined as an individual who vision to start a business on his ownand runs with limited resources and planning. As he is the one who has created the idea of suchbusiness, he will be accountable for the risk and reweds of the business (Drucker, 2014). Suchentrepreneur venture usually target high returns from the business with equally high level ofuncertainty. There are various types of entrepreneurial venture, which are as follows:Small Business entrepreneurship: In this type of business venture, privately ownedcorporation, sole proprietorship and partnership firms are included. These business arecharacterised by their small number of employees started with less resources and funds. Thesebusiness includes, grocery stores, hairdressers, travel agents. The usually hires local employeesor family. They are barely any profit, they earn to feed and run their family and living. The mainsource of funds for their operations are their personal savings and bank loans.Scalable Start-up entrepreneurship: this refers to the business which has been start-upwith a vision of having a business which will change the world (Kirzner, 2015). Theentrepreneur starts his business which completely anew idea (Examples of a Scalable Business1
Model , 2019). They attract the investors from the market to fund their business. They hire theemployees as creative and innovative a they are with proper skills and knowledge. ScalableStart-up involves the model which will help in responding to the market needs and the problemseffectively.Large businesses: these are the organisation that have long life-cycle. These businessesare involves in the operation of selling products and services. They have grown through regularinnovation in their products and services (Austin, Stevenson and Wei-Skillern, 2012). Theyadopted different marketing strategies in order to remain competitive and keeps on expandingtheir business operations. As they have sustained position in market, they raises their funds fromtheir retained profit, issues of shares and debenture in financial market. They have usually morethan thousands of employeesSocial entrepreneurship: This are the firms usually focuses on creating the product andservices which can create value to the society, that can assist in solving social needs and canrespond to their problems (Kuratko, 2016). There main goals of starting a business is to serve thesociety and make the world a better place to live. They do not aim to create wealth or to take themarket share. The non-profit organisation, or hybrid.P.2. Differences and similarities between different types of entrepreneurial ventures.There are differences among various entrepreneurial venture are as follows:Basis ofdifferenceLarge businessSmall businessScalable start-upSocial firmMeaningIt is well establishedfirm and isregistered by thegovernmentThis firm areprivately owned andoperated firm whichworks in order togenerate more profit.This type of firmsstart with aninnovative andcreative idea thatfocuses on thecreation of changesoccurs with everystage.This business are theone which starts inorder to create valueto the society andoperates in order tomake the world abetter place (Kelley,Singer andHerrington, 2012).AimMaximizing theThe main aim of theMain aim of theThese firms work for2
sales and generatingmore profit for thefirm for the ownerin order to attain thegoals and objectivesof the business.person is to createand ficus on thelong-term growthand maximization ofprofit (Parker,2018). They aim toenhance their salesrevenue throughsustainable growthin market.entrepreneur is togenerate morewealth or profitmargin for theentrepreneur and theinvestors.the well being ofsociety and humankind in a sustainableway.Number ofemployeesAs per the law, thenumber ofemployees in largebusinesses arearound 5000 .They are usuallyoperated thebusiness by themselves, or hire theemployees fromlocal market.They start the newbusiness bthemselves and firethe employees withbest skills andknowledge(Driffield andKaroglou, 2019). The number ofemployees in socialfirms are somevolunteers.Source offunds In large businessunits, they raisetheir funds throughtheir revenue, issuesof shares, retainedearning andinvestors.Such smallbusinesses usuallygenerate their fundsfrom their personalsavings. Funds fromfriends and family.The entrepreneur ofstart-up attract theinventors from themarket with theircreative ideas,through angelinvestors andfriends, family etc.The entrepreneur ofsocial firms maintaintheir source of fundsfrom charity,government andthrough donations.Kind ofbusinessIt includes largenumber ofcorporation whichincludes maximisingthe sales of productThey are the retailstores owner, smallconstruction firmsetc.This firms includesthe IT, retailsindustry or group ofcompanies, theyincludes in scalableUnlike other business,this are the firm thatincludes in helping thesociety and thepeoples at the time3
or servicesstar up companies.when crisis strikes,during any globalissues, or the problemthat has been arises insociety.Similarities between these firms: apart from such differences in several aspects, thesefirms possesses some similarities in their operations also. It can be said that, all these businessesmake strategies in order too run their business, which includes marketing strategies, financialbudgets in order to control the expenses. It is the common aspects between all these firms whichwill assist in enhancing their profit in order to achieve financial goals. All these business venturemakes plan in order to expand their businesses in their particular areas and achievablecompetitive advantage in their respective industries. All these firms look for the way in order toachieve their desire level of growth and success.It can be said that, all these entrepreneurial venture are essential in order to develop theborough, they are important in order to enhance the economy and develop the employmentopportunities in borough. However, it can be critique that the scalable start-up and small businessare the one who starts up with the grass hood levels, where the large businesses and non-profitare operating at the national level.P.3. Critically examining the impact of small businesses on the UK economy with statisticaldata.Impact of small business on UK economy:As per the current scenario of UK economy, Brexit has affect the fundamental rulebookof governing the operations of business in UK. Brexit has clearly enlarged the uncertainty whichcan leads to damage then consequences for the economy activity. It is clearly identical that, thatthis uncertain economy will affect the business operations of large-scale industry that aredepends on the other countries of EU in various aspects (The importance of small businesses inthe UK economy , 2019). It can be said that the small business and the micro-enterprises has beenresponsible for the majority of the GDP creation in UK. These SMEs are considered as thebackbone of UK economy which assist in driving growth, opening new market and create job4
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