Importance of Small Businesses and Start-ups in the Social Economy

This article discusses the importance of small businesses and start-ups in the growth of the social economy. It explores their impact on the economy, contribution to tax revenue, revenue generation, and innovation. The article also provides insights into the different types of entrepreneurial ventures and their typology.

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

Contents
INTRODUCTION.....................................................................................................................................3
TASK 1....................................................................................................................................................3
P1. Various types of entrepreneurial ventures and relevant typology..............................................3
P2. Differences and similarities between the various entrepreneurial ventures...............................5
P3.Assess relevant data and statistics to illustrate how micro and small businesses impact on the
economy............................................................................................................................................7
P4. Explain the importance of small businesses and business start-ups to the growth of the social
economy............................................................................................................................................9
TASK 3..................................................................................................................................................10
P5. Characteristic traits and skills of successful entrepreneurs.......................................................10
TASK 4..................................................................................................................................................12
P6. Entrepreneurial personality aspect and reflect of motivation and mind-set. ...........................12
P7. How background and experience can hinder or foster entrepreneurship.................................13
CONCLUSION.......................................................................................................................................13
REFERENCES.........................................................................................................................................14

INTRODUCTION
Entrepreneurship is a process that seeks to identify, grow and handle an entity that owns
by a person which is being called businessman or entrepreneur. This is called the ability or
willingness of such person to create, organise and maintain his business enterprise as well as
make plans to avoid risk factor for future benefit (Mamabolo, Kerrin and Kele, 2017). It
focuses on starting and managing business organizations that find something very new in the
market and the specific god or services can fulfil the demand of customers. It also explains
industry failures due to the massive shortage of finance, poor decision making, economic
collapse, market conditions etc. To this purpose, a businessman must be able to identify an
acceptable act that is focused on different options. In addition, the core business describes a
restriction that is about to convert contemporary entrepreneurship by overcoming major
issues like social changes that help create and create an amazing product. In this report, small
manufacturing company Airdri have been selected which use to produce designer hand dryer
in UK.
In this report numerous kinds of business ventures and transformations between them
is shown, numerical evidence concerning the influence of SMEs and their reputation in UK is
discussed. In addition, describes the mind-set and character of businesspersons and also
examine the several features which can foster and delay the entrepreneurship.
TASK 1
P1. Various types of entrepreneurial ventures and relevant typology
Entrepreneurial businesses are basically the firm which are developed by single
person with the motive to be profitable and deliver effective services and goods which allows
the community to fulfil their basis requirements. In fact, the businessman works out various
roles and responsibilities for its client to handle his commercial services. Different types of
entrepreneurship are thus discussed as follows: Small Business Entrepreneurial Ventures: This describes private companies which involves
single commercial activities, alliances, etc. Small companies are not really worried with rising
or being more competitive, they only think for the day-to-day jobs they do. Its goal is to
maintain sustainability and ongoing growth. The main goal is to maintain a consistent process
and money production for the company ( Barba-Sánchez and Atienza-Sahuquillo, 2018).
Although confusion can arise earlier in the enterprise, small companies become confident

with their procedures and practices as they hit those milestones. Therefore, businesses have
restricted access to, number of employees, services and capital inside the organization. This
mainly includes enterprises like small shops, food stores, etc. The Marshfield Bakery in UK is
example for small business.
 Scalable Entrepreneurial Ventures: In this sector business person comes with equity
and innovation with the dream to change the world was in suitable manner. Scalability
is among the most significant factors for businessmen contemplating launching a new
company or planning to push an established business to the next stage. Effective
market performance relies on a flexible operating model that will raise profitability
over time by growing sales while minimizing increases in costs. In order to enforce
the scalability trends, it is also important to recognize practices and services where
cooperation with collaborators is beneficial and may improve the benefit proposition
of the service to clients. Such trends may help managers reconsider how they make
use of investors, clients and other investors in their marketing strategies. In order to
achieve results and they must carry suitable study in regards to their company. Bulb is
a good example for scalable businesses as its main goal is to deliver 100% renewable
energy in UK. Large Company Entrepreneurial Ventures: Such businesses are diverse or complicated as it
business operation are bigger and required large number of workers to run and manage these
operations. Companies also need too much money to invest in manufacturing operations, as
better designing and prompting of their goods are beneficial that help to increase sales and
earn suitable profit. Sainsbury's is the best example for large company. It is one of the leading
retail company of UK which used to provide number of useful and valuable household goods.
The total number of workforce employeed in respective company is approx 116400 and
overall revenue for a year is 38,064 USD million. Social Entrepreneurial Ventures: Such companies provide social services and products that
can easily fulfil the social needs of people and support in solving their problems (Ferreira
and et. al., 2017). The explanations for the social entrepreneurship's success are numerous.
There is something intrinsically curious and compelling about businessmen about the most
fundamental level. While all of those encouraging and financing such programs are conscious
of the possible gains provided by social enterprise, the exact concept of what social investors
do to achieve this exponential increase gain is less. These companies give their healthcare for
the poor and weak in spite of welfare. In addition, their goal is to provide community with

effective, valuable programs in support of CSR. For example The Eden project that is located
in cornwall in England and famous for different services provided to needed people.
Typology of entrepreneurship
 Male entrepreneur: These are also able to take chances and are also creative because
these favour them in terms of profitability and earnings. Such businessmen abilities
are beneficial to take actions that are timely and important, and that support their
businesses. It concerns however large businesses that require enormous innovation
and competition in certain high-risk goods.
 Female entrepreneur: Such business women are less risk taker than other business
owner but they are accountable for their jobs. Furthermore they take more time
in decision-making for various conditions within company, as the whole scenario and
circumstances for taking prominent business decisions are decided. In fact, they are
innovative and imaginative with regard to their innovations that are valuable to
achieve a great deal of competitiveness and help to increase business longevity
(Ferreira, Fernandes and Ratten, 2017).
 Survival entrepreneur: For their life, they come onto the marketplace and work to
meet their essential needs and desires. Firstly, they set up a small company to obtain
minimum living conditions by supporting them to thrive in a diverse working
environment.
P2. Differences and similarities between the various entrepreneurial ventures
Differences Social enterprises Scalable
Entrepreneurial
venture
Large company
entrepreneurial
venture
Meaning This refers to those people
who work to support
community by improving
their lives and giving
them a healthcare system,
so they can improve their
quality of life.
This suggests certain
groups and people that
aim to implement
desirable plans and
policies to change the
global situation.
Those
individual who
can take the effort
to explore the
current and
potential market
trends and build
creativity in order

to achieve a degree
of client
satisfaction
established this
type of companies.
Key attributes The purpose and goal of
such projects to improve
the living standards of a
given community by
supplying them with the
necessary resources.
Such projects are
primarily focused on
promoting the
environment more
effectively to attract
the attention of
distinct capitalistic
businesses (Ayandibu
and Houghton, 2017).
The primary goal of
this type of
company which is
to research and
produce products
that meet the
requirements of
current and new
clients.
Purpose The principal goal of
social corporations is to
grow people and provide
them with the services
required for survival in
the environment
effectively.
Scalable company is
run by the bourgeoisie
in order to achieve
their objectives.
Scalable projects.
The main reason
for big business is
that consumer
requirements are
met by delivering
the requisite goods
and optimizing
income.
Similarities Social enterprises Scalable
Entrepreneurial
venture
Large company
entrepreneurial
venture
Risk This type of company
faces problems of
improper financial and
government support.
The challenge of less
focus and less
involvement of
capitalists and
businessmen is faced
by these companies.
These firms faces
range of problems,
such as cultural,
financial, technical,
constitutional,
political, etc.

Innovative business In order to improve the
way people work, the
business has
contributed to the
global economy
development.
These investments also
lead to the economic
growth of the country
by drawing domestic
and global sector
investors.
This kind of industry
often leads to
economic
development by
making profit and
working in various
nations.
Objective and
structure
Social enterprise is
motivated by social
protection and the
resolution of problems
faces by entire
community. Thus they
have structure of
separate legal entity,
either a for-profit or a
non-profit.
The goal of the
scalable company is to
make society
conscious by creating
new businesses in
the word. The
structure of these
companies mainly
depended upon size
and scope of project.
The goal of big
business is to provide
jobs to make it
possible for people to
live effectively
(Ateljevic and Page,
2017).
TASK 2
P3.Assess relevant data and statistics to illustrate how micro and small businesses
impact on the economy
Micro businesses: This type of company, which has more than 10 workers, uses a
small sum of money created by a bank and other certain financial institute. The frim could be
made up of a micro business whose total turnover is less than 1 million. Such traditional
corporations have the main aim is to survive in competitive world. These businesses include
shopkeepers, carpenters, online business etc.
Small businesses: It is a self-employed business that has small sizes of income based
on the sector. The company operates and works under 50 individuals. The key driver of this
type of company is to encourage people to work in the particulate environment they run and
function successfully. The example of this type of business is the web development company,
real estate firms, consultancy firms, e-commerce as well as other businesses (Wang and
Wang, 2019).
Contribution of micro business in UK economy

In Great Britain micro enterprises make a big impact in terms of the way life is
conducted as well as the possibility of sustainability is imported. With the aid of such a
possibility for families, people experience their best quality of life and live well. Such forms
of firms add to the UK economy by employing people directly, thus reducing the rate of
unemployment. Moreover, in present time there have been number of legal and government
support which have been given to Micro companies as their main motive is to deliver the best
to make value of money for common people and visitors form all over the world.
Contribution of small business in UK economy
Small businesses can make a productive addition in terms of development of British
economic conditions and decrease the youth unemployment by leading to the production of
their own companies. According to the graph mentioned below it is analysed that in contrast
with big and medium firms, small businesses generate an remarkable contribution of about
99,3% in leading to progress of UK economy.

Contribution to tax contribution
As there have been different kind of taxes imposed by government of UK on
manufacturing and other companies like a restaurant have to pay Service tax. Thus any small
or micro company dealing in hotel or restaurant have to pay around 14 % of services tax to
UK government which help in increasing the overall taxable income,. This income further
can be used for various purposes including development of different sectors within UK.
Contribution to revenue generation
SMEs also make a large contribution in increasing the income level of country by
attracting large number of customer and making them spend to earn maximum satisfactions.
Different kind of innovative services and goods are provided by several small and micro
companies which forces people to purchase the good or take the services at any cost. This
spending of customer help in regular flow of money in the UK economy, further enabling to
increase the entire revenue level (Radović-Marković and Tomas, 2019).
Contribution to innovation and growth:
Micro-enterprises are engines of the economic development. These are the economic
drivers, since these represent the UK's highest number of companies. Economics. Hence their
addition to GDP is meaningful in order to achieve higher economic development. That helps
accelerate growth. Micro-enterprises foster creativity in their goods and services by
recognizing consumer desires and expectations and by designing goods appropriately.
Therefore this encourages innovation within economy resulting to better results and foster the
growth of company as well as entire world.

P4. Explain the importance of small businesses and business start-ups to the growth of
the social economy
In recent time, small and micro business have provided utmost support to UK
economy by delivering innovate and useful goods and services to large number of audiences
that increase the flow of money. The value of both types of organizations for UK economy
growth is noted as follows:
 Employment Opportunities: Start-up’s and small businesses are mainly concerned
with promoting economic development and having local employees which are not
chosen by large businesses. To meet the set goals, the organization hires professional
or experienced workers that will provide a creative approach to succeed in the market
environment's complex nature (Østergaard and Marinova, 2018).
 Adopts innovation to bring positive change: The main objectives of SMEs are to
reach a competitive capabilities ratio by producing creative good with new ideas or
understanding of market. In fact, this form of improvement tends to draw the attention
of many customers to the product. For this purpose, large companies obtain different
platforms to show their competence, in particular in the manufacturing goods or
through the expenditure of sufficient funding in companies.
 Support to foundation and charities in society: In contemporary, world the main
motive of small business is to give better goods and services to people and earn
minimum profit to fulfil the business need. However, if small company earn
respectable amount throughout the year they can provide funds as charities or
donation to the needed person. This support in increasing the flow of money
throughout the economy resulting into positive growth and success.
TASK 3
P5. Characteristic traits and skills of successful entrepreneurs
Difference between manager and entrepreneur
Manager Entrepreneur
He works for salary and does not consider
risk while working.
He is the owner of business and has to
consider and bear all kind of business risk.
Mainly centred to manage the daily
operation in desired manner.
They have main focus to start and expand
business in quick time.

The manager's primary role is to control
various supply sources and create
communication among them.
The entrepreneur's key role is to take those
risks of developing new markets and
innovation-related practices.
Manager are more connected to the current
and because they needs to hold and keep in
mide about the management and main
goals.
They are more connected to the current and
the future because; throughout the process of
the company they use to manage the time in
order to complete the work (Radović-
Marković and Tomas, 2019).
Simon Arora and Boby Arora were two entrepreneurs. The concise description on the
abilities, attributes and properties is defined as follows:
Boby Arora- Born in 1972 he is a British billionaire businessman working as a
managing chief of the supermarket chain B&M.
Characteristics Creative: Boby's is an imaginative guy and because of this efficiency,
he is being innovating factor for his company. This helps him to provide
people with new goods and services so that their needs and expectations
can be fulfilled. This separates him among business managers as he used
to manage different resources and workforce in a creative way.
Motivation- The organization is another feature, and with the aid of this
model, the individual motivates and inspires his workers to become
more successful in all circumstances of the industry.
Traits Open minded- The individual have ability to think for new ideas and
innovations and introduces them in order to develop the relevant goods
and services. This enables company to provide large number of basic
and useful good to large number of customer so that they can trust
B&M.
Confidence- BoBy has this consistency and because of it, the person
rarely doubts. He believes in his expertise that allows his company to
grow.
Skills Networking- He has networking a skill even with this knowledge which
enables Boby to develop a network that promotes development,
collaboration agreements and future employees.

Strategic thinking- Boby has an active expertise and takes innovative
thought in the sense of company growth and progress with the aid of
this ability. The business manager differentiates because, due to this
skill, the individual just strategically assigns his job with a view to
making effective decisions.
Simon Arora: He was born in 1969 and is now working as a CEO in the leading
supermarket company B&M.
Characteristics Passion- Simon was deeply impressed with its mission which led him to
make Simon a successful businessman in the UK. Even in the face of
major challenges he uses to be clam and compose and try to make an
effort that can eliminate the present problem.
Flexibility- Simon finds it another important aspect of versatility because
he's always willing to accept obstacles that improve his mastery of
thought and help him achieve his performance.
Traits Decisiveness- Simon seemed able to locate out successfully the dangerous
situation that can lead to decrease performance of B&M.
Risk-taker- Simon achieved his goal by using the danger and challenge as
a growth opportunity which makes him successfully thrive and develop.
Skills Communication- Simon has strong communication skills that help the
individual to develop successful connections with vendors, employees
and customers.
Time management- It's another valuable ability that the corresponding
businessman considers The person uses this expertise to control his
business operations or procedures efficiently, allowing his companies to
operate effectively.
TASK 4
P6. Entrepreneurial personality aspect and reflect of motivation and mind-set.
According to the above established skills, entrepreneurs concentrate on
entrepreneurship and encouragement instantaneously. This can be viewed with the theory

of OCEAN paradigm, which demonstrates how they will be intertwined. The explanation is
as follows:
 Openness- In this phase, entrepreneurs are open to experience throughout gaining
from each development choice to produce a successful outcome. In terms of Simon
and Boby, both were known to be hospitable and open-minded, allowing them should
own B & M in an updated manner (Mugler, 2017).
 Conscientiousness- This notes because such a company includes the ability to handle
time and think critically and to affect actions. Boby therefore has efficient processing
capabilities that keep him quiet a more effective way of finding an alternative to a
particular situation.
 Extroversion- These are individuals who attentive listener their thoughts and ideas
with everyone in the company to gain insights into them and lead to
valuable communication.
 Agreeableness- In this way, workers track the market trends and promote the subject
to effectively put and introduce new innovative strategies and assessments to attract
competitiveness.
 Neuroticism- It allows people, willing to quickly solve all kinds of problems and
obstacles, to function efficiently and to gain greater results in a productive manner
(Mugler, 2017).
Simon and Bobby Arora are multimillionaires who began their company by
implementing character template that notes that both entities have specific personalities and
skills that used to effectively develop the desired business and operate same in profitable
manner. As Simon has a temperament or openness attributes of transparency that has helped
to know more information and address problems in their company. They introduced creativity
with the aid of this, and became able to try different stuff. Bobby Arora, at the other hand,
had an Extraversion trait which gave him energy and enthusiasm in company. In fact, he was
willing to participate in dialog about all that helps him stay in contact about community. `
Some facets of entrepreneurial personality that represent the drive and mentality of
such individuals have already been established. A few of the elements of character both
businessmen that assist them in staying focused and motivated have been addressed below:

Confidence: A good businessman is extremely optimistic and trusts in his conception
of company. Simon and Bobby Arora both come up with a somewhat innovative company
plan and the trust they had about themselves and their concept enabled them a lot to
accomplish all they have until now.
Visionary: Simon and Bobby Arora showed visionary capabilities that supported
themselves in long-term thought. Committing to a cause that doesn't produce benefits
immediately is quite complicated. They stayed inspired and dedicated during their trip just
because of the willingness of both the founders to anticipate the possibility.
Strong work ethic: The two founders had good communication skills that enabled
them setting the right mind and represent their inspiration. The first to join the workplace will
be a prosperous founder and the last one to quit. Leading by instance is helpful in achieving
results.
P7. How background and experience can hinder or foster entrepreneurship
Simon and Boby Arora both have been struggling to achieve excellence in past but
now due to various their skills and features they have become the most successful
entrepreneur in the world.
Education: Born in 1969, Simon Arora graduated from Cambridge University. Boby
Arora was born in 1972, and is also the department stores chan's marketing manager at B&M.
Experiences: Simon worked throughout his profession he is a McKinsey, 3i and
Barclays consultant. He isn't part of the business company, and therefore he encountered
various financial issues. Boby Arora observations, his issues were resolved and the company
was formed, named B&M. He entered into trade with Simon Arora, his nephew and joined
Orient Sourcing. The company brothers don't belong to the family and don't have commercial
experience that hinders them. Due to their knowledge and skills they fostered and are able to
establish a supermarket chain named B & M.
JK Rowling
She is one of the leading British author, film and television producer, screenwriter, as
well as philanthropist. She gains popularity after writing the Harry Potter fantasy series due
to which she earn number of awards.

Education:
She attended St Michael's Primary School and further earned a BA in French and
Classics at the University of Exeter.
Experience:
The first novel of the Harry Potter franchise, Harry Potter as well as the Stone of the
Philosopher (1997; sometimes known as Harry Potter and Stone of the Sorcerer), was written
under the name J.K. Rowling: Rowling. (Her agent suggested a gender-neutral book title;
Joanne Rowling was raised, she chose J.K., incorporating the surname Kathleen.) The novel
became an instant hit, speaking to both adults and children. Movie adaptations of the books
came out in 2001–11 and are two of the world's highest-grossing features. Furthermore,
Rowling published the related novels Fantastic Beasts & Where to Find Them (2001), which
was converted as a collection of films (2016, 2018) including screenplays by Rowling;
Quidditch Through the Ages (2001); and The Tales of Beedle the Bard (2008), both of which
began as books read by Harry Potter and his buddies in the series' imaginary universe.
Steve Jobs had been an American businessman who has been born in 1955 and was the
chairman-founder, president and CEO of Apple Computers early in his career. Apple's
devices are seen as carrying about a transition in respect of electronic technologies and device
developments. He'd had a huge tech passion and curiosity. He began a career as a computer
game artist at Atari Corporation right after dropping out of Reed University in Portland,
Oregon. Jobs were highly supported and inspired to get in a new computing system that
would be the transforming force of machine experience. Employment and his friend Stephen
Wozniak began Apple with the funds they negotiated by offering Steve Jobs' automobile and
Wozniak's programmable computer machine in the family workshop. This indicates that the
difficulty and dedication that Workers put in made him originally have a good and centred
mind-set. With the aid of his dream and belief in information technology he extracted
inspiration to hold to his plan. His early knowledge and history may be assumed to have
helped cultivate innovation within him.
CONCLUSION
It is therefore concluded that enterprise is an action that persons carry out in order to
continue and manage their enterprise. To this purpose, various types of projects must be
identified because it allows identifying them as well as examines themselves in light of their

similarities and differences. In fact, small businesses throughout the United Kingdom have a
significant impact on economic circumstances, as it plays a major role in improving the
economic sector. Moreover, the qualities, capabilities and attributes are articulated which are
valuable for the study and recognition of the work conditions of the individual person.
Ultimately, it decides the context and experience of leading businessmen which is valuable in
promoting personal performance.

REFERENCES
Books and Journals
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local economic development (LED). Journal of Business and Retail Management
Research. 11(2).
Barba-Sánchez, V. and Atienza-Sahuquillo, C., 2018. Entrepreneurial intention among
engineering students: The role of entrepreneurship education. European Research on
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Ferreira, J. J. M. and et. al., 2017. Female entrepreneurship: a co-citation
analysis. International Journal of Entrepreneurship and Small Business. 31(2).
pp.325-340.
Ferreira, J. J., Fernandes, C. I. and Ratten, V., 2017. International entrepreneurship research:
mapping and cognitive structures. International Journal of Entrepreneurship and
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Østergaard, A. and Marinova, S. T., 2018. Human capital in the entrepreneurship
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Radović-Marković, M. and Tomas, R., 2019. Globalization and Entrepreneurship in Small
Countries. Routledge, New York, United States
Wang, S. and Wang, H., 2019. Design and Delivery of a New Course of Information
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p.4.