The Impact of Entrepreneurship on Economy

This assignment examines the significant role small and medium-sized enterprises (SMEs) play in driving economic growth. It delves into the different types of entrepreneurship, exploring how their characteristics and behaviors contribute to a thriving economy. The analysis also considers the influence of personality traits on entrepreneurial success, highlighting the importance of individual factors in shaping business ventures.

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Different types of entrepreneurial venture and their relation with typologies......................1
P2. Similarities and differences between entrepreneurial venture..............................................2
TASK 2............................................................................................................................................4
P3. Impact of micro and small business over economy..............................................................4
P4. Importance of small businesses and start ups in social economy.........................................6
TASK 3............................................................................................................................................6
P5 Characteristics, Traits and skills required for ideal or successful Entrepreneur....................6
P6 Reflection of the entrepreneurial body motivation as well as their mind-set........................8
TASK 4..........................................................................................................................................10
P7 Explanation regarding the fact that “ background and experience can hinder or foster
entrepreneurship” with suitable examples................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneurship can be considered as a process where plans for designing, operating as
well as launching a business are developed. Individuals who formulate ideas of new enterprise
venture are known as entrepreneurs (Sakari Soininen and et.al, 2013). They search for
modification and respond towards it in effective way as well as grab opportunities for business.
The purpose of this report is to describes various types of entrepreneur venture and its
relationship with entrepreneurship typology. Differences and similarities among entrepreneurial
ventures. Interpretation of relevant data as well as statistics how micro and small business
impact upon economy. Significance of small and start up business to social economy growth.
Characteristics traits and skills of successful entrepreneurs with their impact of entrepreneurial
personality over its motivation and mind set. Along with this how individuals background hinder
and foster entrepreneurship are also mention in this report.
TASK 1
P1. Different types of entrepreneurial venture and their relation with typologies
Entrepreneurship considered as the procedures to develop and handling business venture
by taking up whole financial as well as failure risk in the hope of gaining high profitability.
There are different business types which are operated by people and team are called
entrepreneurial ventures (Sooksan and Suriyankietkaew, 2013). All of them implement business
for various purpose many work for gaining profit and some are for social welfare. For attaining
the sustainability for operations, this is essential fro them to ensure that overall business
functions are performed appropriately or not.
Various kinds of entrepreneurial ventures are mentioned below:
 Small entrepreneurial ventures: This is considered as a entrepreneurial venture type
that is usually operated as well as owned through a sole proprietors and also employ
small numbers of employees. These ventures involves travel agents, grocery, plumbers
and many more. These are generally set up with the purpose to satisfy family basic needs
and it recruit mainly local individuals.
 Large scale entrepreneurial venture: These entrepreneurial venture types required
more finances and market shares. It have approx 5000 and more that employees and its
turnover is more than 1.5 billion euros. In case business is not capable to accomplish
1

these requirements then this will be known as small or medium size enterprises. Also,
these contributes more percentage in national income as well as aids to develop economy.
The main purpose of them is to gain high profitability and revenues.
 Social entrepreneurial venture: These are mainly focused on facilitating products and
services with the purpose to resolve issues that are faced by society. Its objectives is not
to acquire market share or generate profitability instead of this it concentrates upon
facilitating services for society welfare. These business can be profit, non profit or
hybrid. Also, it serve society to develop their living standard.
 Scalable entrepreneurial venture: These are the businesses that are introduced by
people through complying innovations. They effectually formulate strategies for
enterprises to set up its business successfully into competitive marketplace. The main
purpose of these venture is to attract more number of investors that are helpful for them
to maintain the quality of products (The Four Types of Entrepreneurship. 2019).
Relation of entrepreneurial venture with entrepreneurship typology:
There are various kinds of entrepreneurship typologies where different firm are
implementing the operative activities. Some of them are mentioned below:
 Male entrepreneur: According to it, an entrepreneurship is started through male
entrepreneur (Rudenko and et.al, 2015). Their main purpose is to facilitate effectual good
and services into market for acquiring more profit. For example: Mark Zuckerberg who is
the Facebook founder currently which is operated by various countries.
 Female entrepreneur: when any female person set up their new business for offering
creative products society. They are generally more innovative as compare to another one.
Such as the CEO of Red leaf communication, Emma Kane.
 Serial entrepreneur: These are mostly innovative and always ready to face challenges
and take risk. It introduced new products in whole places so that clients requirements can
be fulfilled effectively.
P2. Similarities and differences between entrepreneurial venture
There are many entrepreneurial venture which are operating its enterprise into market.
All have some similarities as well as differences that are explained below:
Basis Small
entrepreneurial
Large
entrepreneurial
Social
entrepreneurial
Scalable
entrepreneurial
2

venture venture venture venture
Meaning This is operated
and owned
through sole
proprietors at
small level. It do
not required more
funds (Ferreira
and et.al, 2016 ).
It is performed at
large level and
need more capital
and investment
for enhancing
business
opportunities.
This is also
known as
commercial
company that has
some social
objectives which
facilitates its
primary intent.
This
entrepreneurial
venture which are
concentrated
upon quality of
the products
instead of
generating
products in bulk.
Aim The main aim of
small
entrepreneurial
ventures is to set
up their business
successfully into
market as well as
accomplish
competitive
advantage.
Its aim is to
implement
business with the
intention to gain
more profitability
and maximise
revenue as well as
the market share.
Social
entrepreneurial
venture is focused
towards societal
welfare. So, it
objectives is to
offer products fro
the welfare of the
society.
The aim of
scalable
entrepreneurial
venture is to bring
innovation and
creative ideas for
business so that it
can sustain for the
longer periods.
Business area It generally
acquire small
market area as
well as few times
it introduced at
higher level that
obtain large
market.
Its implement
their business on
local, domestic
and global level
as well as sale
their products in
whole world.
Its acquire area of
particular
geographical area.
It is mostly
operates in state
or country (Al-
Mubaraki and
Busler, 2013 )
Sources of funds Its sources of
funds are short
Its funds sources
are term loan,
This obtain funds
from charity,
Its sources of
funds are family,
3

term loans,
relatives, personal
savings and so on.
venture capital,
equity fund etc.
funds from
government and
another
authorities.
short term loan,
friends and many
more.
Similarities:
 All these entrepreneurial ventures has to face competition into its industry as well as
develop strategies for dealing with such kinds of problems.
 Whole entrepreneurial ventures has to recruit knowledgeable as well as proficient
employees so that business activities can be implemented effectively.
 All of them focused to attract consumers, investors and many more.
 All want to sustain for long time into competitive marketplace.
TASK 2
P3. Impact of micro and small business over economy
Entrepreneurial business ca be operated usually at micro as well as small level. These
business types does not required huge funds as compare to large enterprise due to this it obtain
more profitability as well as turnover ratio. Micro business are considered as a enterprise that is
operates at small level (Bierwerth and et.al, 2015). It has 5 or less than that employees in its firm.
Funds needed to set this type of business is approx $ 34000 or less that it. Where as small level
enterprise considered as an independently owned firm where there are few workers are working
and do not produce more profitability and revenue. Government of UK supports entrepreneurs as
through this it many develop its economy in effectual and proper way. Also, this will improve
employment to unemployed individuals. There are some other positive impact of SMEs upon
country economy. Some of them are mentioned below:
Enhancing the opportunities of job: when individuals initiate a micro or small
enterprises it required another various people who do activities of the company in effective way.
Due to this it can able to build employment opportunities at local, state, national and
international level (Herbane, 2013). Therefore, because of this United Kingdom government
supports the micro as well as small business.
4

Increases per capita income: This is the income which is attained by individuals into
specific country's economy. This will examine nation average income by which growth as well
as improvement rate can be evaluate in appropriate way. Similarly, within UK there are many
micro and small business as due to this per capita income of the nation can be enhanced. Also,
improve the respective country 's living standards.
Optimum utilisation of resources: When people set up micro and small business. They
need many kinds of resources for their operations (Johannisson, 2014). Like finances, land and
so on. For all this it has less amount so it can know that how to utilise that resources
appropriately in order to obviate wastage. On another side large business initiate their enterprise
with large budget because of that it they can not able to concentrate upon optimum utilisation of
resources.
Impact of SME's can be measured as well as represented through applying graph and
chart.
Illustration 1: Impact of SMEs on growth of an economy
(Source: Impact of SMEs on growth of an economy, 2018)
As per the above shown graph it is analyses that In the market of UK, SME's are leading
which directly and indirectly impact upon respective firm economy. Also, SME's produce
employment opportunities fro the local, domestic as well as global candidates. It also shows the
5

positive picture that occur at UK after adapting small and medium ventures. As per the graph
from 2008 to 2018 year opportunities of employment are develop through small-business unites.
P4. Importance of small businesses and start ups in social economy
Social economy is considered as a term that is developed through business diversity like
social business, mutual, cooperative and so on. Few common characteristics as well as values are
it based on democratic governance, open and voluntary membership and etc (Hamelin, 2013). It
basically depends upon size variety. Small business environment considered as venture that
perform its business at small level with low budget and in this there are about 500 workers. Also,
start -up business assists a nation to develop its economy in effectual way. Few importance are
explained below:
 Innovation: small business initiate its business by innovative or new ideas that aids them
in grabbing the attention of target consumers in effectual way. Also, it always come up
with innovative ideas that accomplish the clients requirements. It will happen by adapting
innovation respective firm can able to perform its task in effective manner in less time
duration.
 Employment Creation: Through small and start ups business a firm or venture capable
to generate employments for local, domestic and global candidates. Also, through
developing employment firm can capable to develop its living standard. Small business
can maximise the rate of employment in comparison to another public and private sector
organization.
 Local improvement: By developing small and start ups business, an entrepreneur
capable to improve condition of local peoples, locality or area (Byrne, Fayolle and
Toutain, 2014). It is so because small enterprise generate employment for all so it is a
great opportunities for local candidates which assist them in rising their living standard
and sources of income.
TASK 3
P5 Characteristics, Traits and skills required for ideal or successful Entrepreneur
There are various successful entrepreneurs who has set the example for the young
entrepreneur. These entrepreneurs have some special skills, characteristics and traits which can
be followed by the others so as to be successful entrepreneur. The two successful entrepreneurs
6

considered are Bill Gates and Mark Zuckerberg. Bill gates is the founder of the technology giant
Microsoft and Mark Zuckerberg is the fonder of social networking site Facebook. Following are
the characteristics, skills and traits of both the entrepreneurs.
Characteristics
Growing and learning
Although, having selected various times in the Forbes list Bill Gates can think itself as
the superior one but its characteristic of learning and growing help its efforts to be a good
communicator at the public meetings (Besser and Miller, 2013). He always looks froward to
learn from Warren Buffet and also said that he has a great way of looking at the world. It
provides evidence that Bill Gates has a great learning and growing characteristics.
Passionate
This is the characteristic which is adopted by Mark Zuckerberg at its early age. In the age
of 12, Zuckerberg developed a messaging platform Zucknet. In high school, he also developed
Synapse media player such as Amazon music and Pandora. He had been called for the job offer
from Microsoft and other companies as per its passion to make games led his characteristic to be
successful entrepreneur.
Traits
Vision
Without having any doubt, it can be said that Bill gates is an entrepreneur having a long
vision. In its interview of having a successful entrepreneur, it confirmed that in its starting phase
of the company, he identified the potential growth and opportunity for its company (Yiu and
et.al, 2014). Apart from that, he is also working in Malaria project at the Bill and Melinda gates
foundation. This also provides strong evidence that Bill gates has a strong visionary
characteristic.
Accepting of Criticism
This is the strongest trait of Mark Zuckerberg which makes its successful entrepreneur. In
the early age of its business, he was accused of being a poor leader. He has taken this as an
opportunity and provides strong evidence to the world that he is one of the strongest leader in the
world. Apart from that, it also started to wear professional suits during the meetings to be an
impressive leader.
Skills
7

Creativity
It is one of the important skills that Bill gates have. Some people follow him by thinking
that, he can also make themselves as a better leader. He never stays in a zone of comfort, but
force the people to embrace creativity (Casson, 2014). He always want to use autocratic style of
leadership into its organization. This has really helped him in becoming a successful
entrepreneur.
Critical Thinking
Mark Zuckerberg is one of the biggest leader who is interested in adopting any idea after
thinking critically over it. A strong leader has to think every aspect of the idea so that they can
implement it effectively. In an interview he stated that he got his first computer in the 6 th
standard. He was always curious about how the system is working and how its program works.
This has resulted to be more curious and adoptable nature in him so that it can examine the idea
critically.
P6 Reflection of the entrepreneurial body motivation as well as their mind-set
There are various skills as well as characteristics of an entrepreneur that aids them in to
become successful at market. As there are many components that will impact individuals mind
set and motivation level. Both Mark Zuckerberg as well as Bill Gates has few personality trait
that assists them to become successful. Also, there are different structures that cab be utilise by
people for ascertaining their personality traits. Big Five Framework is considered as a mostly
applied framework. His five factors model that is related with the evaluation of 5 essential traits
of person personality (Audretsch and Belitski, 2013). It is helpful to understand, analyse and
forecast relation among various traits as well as success of personality. This framework have
shows various manner where they represents that how person will respond in specific situation
that are explained below:
8

 Openness to experience: It is related with that characteristics as well as traits which
includes huge variety of interest and has capability to take risk of trying that ideas into
practical. Individuals who tends to score more upon openness are delicate in nature,
intellectually curious .but who are low on it are conservative in nature as well as resist to
take challenges. Thus, Mark Zuckerberg and Bill Gates are good in this as they are
flexible in nature.
 Conscientiousness: Herein, individuals those who are good and usually accountable,
well mannered etc, and who are low in this are generally opposite. They do not comply
any norms and policies. Hence, Bill gates as well as Mark Zuckerberg are good in this as
they are more focused regarding strong work ethics.
 Extroversion: This is crucial for successful entrepreneur that they have to be
extroversion so that it can capable to communicate with another individual in appropriate
9
Illustration 2: Big five personality trait
(Source: Big five personality trait. 2019)

way. It will also aids people to understand others in effective manner as well as influence
them to perform task effectually. Also, they are focused towards objectives, enthusiastic
and positive in nature. Thus, both Bill gates and Mark Zuckerberg are having this
characteristics which enable them to be energetic and always be positive.
 Agreeableness: People who are good on their personality trait are kind, do not hesitate,
trustworthy and so on. Those people who are not trustworthy, it has negative feelings in
them. Thus, both Mark Zuckerberg as well as Bill gates are high on it that build them
successful not only in its enterprises but also into the mind of the individuals and with
whom it perform.
 Neuroticism: Individuals who are good at this particular personality traits are usually
experiences depression, conflicting, anger and so on. Those who experiences high on it
are normally calm, affection, peaceful etc. in its nature (Hafer, 2013). Thus, Bill gates
and Mark Zuckerberg score low on it that makes them different and also successful.
TASK 4
P7 Explanation regarding the fact that “ background and experience can hinder or foster
entrepreneurship” with suitable examples
Bill Gates: As per above discussion, Bill gates was the Microsoft founder that is most
crucial software of each computer programme. It have struggled with its self confidence as
during their early times, the failures discourage him many times but he did not loose hope as well
as carry on to take risk continuously as he become successful (Sheehan, 2014). Bill gates was
studying in the Harvard business school, he leave that. During school times, he was provided a
suggestion that he is a good student as well as go for the profession such as teacher, professor
etc. This not only encourage him but also allow him to seriously focus about the future. After
that his one of the friends influence him to pursue computer programming and then he initiated
their career planning in the field of programming. After working with software firm for two
years have boost them to become an entrepreneur. Then, he took a risk that is introducing
Microsoft but also become nervous as the organisation that considered as an ideal was fail in its
operations. So, fro the previous experiences, Bill gates have experienced that risk is everywhere
but it do not develop any hurdles into upcoming course of action as well as opportunities do not
10

get missed. Also, beside this as Bill gates have faced various challenges in its life then only now
he is able to become a successful in its current and future.
Mark Zuckerberg: Mark Zuckerberg is known as the owner of they famous social
networks that is used through various individuals of different countries or within whole world
that is Facebook. He belongs from the educated family as well as its family was finally strong
that have been a strength to become successful. From school days his interests are more in
programming and at the age of twelve he developed a messenger called as Zucknet. Its interest
for computers was developing continuously. As he belongs to an educated family and was
involve into professional area are developed an inspiration as it did have to face the financial
issues. As he did not have to face this problems so he foster the entrepreneurship experiences.
Beside this, his creative nature as well as interest for computer have developed so much. Thus,
he have made innovative product that have build by himself successful and distinguished in
entrepreneurship area (Zhang and et.al, 2016). Also during his early times, in some stage he had
experiences the issues of funds but that did not stop him to become successful.
CONCLUSION
As per the above report it has been concluded that entrepreneurship is considered as a
quality that assists person to develop it business as well as operate that in proper way. There are
different kinds of entrepreneurial venture such as small, large, social etc. which are performing
in current marketplace. All these have various entrepreneurship typology that are serial, male etc.
Small as well as start up business are assisting economy to develop fastly through contributing
more amount into country's national income. Also, there are various entrepreneurs who has
attractive characteristics, traits and skills that distinguish them from another managers that are
creativity, critical thinking, passionate, growing and learning and many more. Big five models
used to show entrepreneurial mind set and motivation. Example of provided through which
background and experiences can hinder as well as foster entrepreneurship.
REFERENCES
Books and Journals
Al-Mubaraki, H. M. and Busler, M., 2013. Business incubation as an economic development
strategy: A literature review. International Journal of Management. 30(1). pp.362-373.
Audretsch, D. B. and Belitski, M., 2013. The missing pillar: The creativity theory of knowledge
spillover entrepreneurship. Small Business Economics. 41(4). pp.819-836.
11

Besser, T. L. and Miller, N. J., 2013. Community matters: Successful entrepreneurship in remote
rural US locations. The International Journal of Entrepreneurship and Innovation.
14(1). pp.15-27.
Bierwerth, M. and et.al., 2015. Corporate entrepreneurship and performance: A meta-analysis.
Small Business Economics. 45(2). pp.255-278.
Byrne, J., Fayolle, A. and Toutain, O., 2014. 15. Entrepreneurship education: what we know and
what we need to know. Handbook of research on small business and entrepreneurship.
pp.261-288.
Casson, M., 2014. Entrepreneurship: A personal view. International Journal of the Economics of
Business. 21(1). pp.7-13.
Ferreira, J. J. and et.al., 2016. What do we [not] know about technology entrepreneurship
research?. International Entrepreneurship and Management Journal. 12(3). pp.713-733.
Hafer, R. W., 2013. Entrepreneurship and state economic growth. Journal of Entrepreneurship
and Public Policy. 2(1). pp.67-79.
Hamelin, A., 2013. Influence of family ownership on small business growth. Evidence from
French SMEs. Small Business Economics. 41(3). pp.563-579.
Herbane, B., 2013. Exploring crisis management in UK small‐and medium‐sized enterprises.
Journal of Contingencies and Crisis Management. 21(2). pp.82-95.
Johannisson, B., 2014. The practice approach and interactive research in entrepreneurship and
small-scale venturing. Handbook of research methods and applications in
entrepreneurship and small business. 228.
Rudenko, L. G.and et.al., 2015. Conceptual foundations of management of infrastructure of
support for small entrepreneurship. Asian Social Science. 11(20). p.220.
Sakari Soininen, J. and et.al., 2013. Entrepreneurial orientation in small firms–values-attitudes-
behavior approach. International Journal of Entrepreneurial Behavior & Research.
19(6). pp.611-632.
Sheehan, M., 2014. Human resource management and performance: Evidence from small and
medium-sized firms. International Small Business Journal. 32(5). pp.545-570.
Sooksan, S. and Suriyankietkaew, S., 2013. Sustainable leadership: Rhineland practices at a Thai
small enterprise. International Journal of Entrepreneurship and Small Business. 19(1).
pp.77-94.
Yiu, D. W. and et.al., 2014. Dueling Institutional Logics And The Effect On Strategic
Entrepreneurship In C hinese Business Groups. Strategic Entrepreneurship Journal.
8(3). pp.195-213.
Zhang, X. and et.al., 2016. What drives the internationalization of Chinese SMEs? The joint
effects of international entrepreneurship characteristics, network ties, and firm
ownership. International Business Review. 25(2). pp.522-534.
Online
The Four Types of Entrepreneurship. 2019. [Online]. Available through:
<http://casnocha.com/2011/02/the-four-types-of-entrepreneurship.html>.
Impact of SMEs on growth of an economy.2018. [Online]. Available through:
<https://ec.europa.eu/growth/smes/business-friendly-environment/performance-
review_it>
Big five personality trait. 2019. [Online]. Available through:
<https://www.psychologistworld.com/personality/five-factor-model-big-five-
personality>
12

13