Importance of Small Businesses and Start-ups in Economic Growth

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION ..........................................................................................................................3
Task1................................................................................................................................................3
P1) Explain various types of entrepreneurial ventures and typologies of entrepreneurship
related to the entrepreneurial venture..........................................................................................3
P2) Explore various similarities and differences among different type of entrepreneurial
ventures .......................................................................................................................................4
Task 2...............................................................................................................................................6
P3) Interpret data and statistics to analyse the impact of small and micro business on the
economy.......................................................................................................................................6
P4) Explain the importance of various small businesses and starts-ups in growth of an
economy ......................................................................................................................................8
Task 3...............................................................................................................................................9
P5) Determination of various characteristic, traits and skills of successful entrepreneurs that
make them different from business managers.............................................................................9
P6) Assessment of various aspects of the entrepreneurial aspects personality that reflect the
entrepreneurial motivation and mindset.....................................................................................10
Task 4.............................................................................................................................................11
P7) With the help of examples how background and experience can hinder or foster
entrepreneurship.........................................................................................................................11
Conclusion ....................................................................................................................................12
REFERENCES................................................................................................................................1
.........................................................................................................................................................1

INTRODUCTION
Entrepreneurs are those people who take initiative to convert new ideas into reality by
analysing the chances of its survival. They are considered to be the backbone of an economy
which helps them to various problems such as the problem of unemployment, more income in
the hand of the people etc. The organisations which are established by the entrepreneurs main
vary in size as they can be large organisation or a small and medium size business. In this report,
different types of entrepreneurial ventures and their typologies are discussed and in addition to
this that the similarities and differences between various entrepreneurial ventures taken into
consideration. Apart from this the importance and impact of such organisations on the economy
are included. At the end the report, various personality traits, characteristics, mind set of
successful entrepreneurs are identified and the influence of their background and experience are
analysed which can either hinder or foster the entrepreneurship.
Task1
P1) Explain various types of entrepreneurial ventures and typologies of entrepreneurship related
to the entrepreneurial venture
Entrepreneurs are the individuals that generate value in the economy with the help of
various products provided by them to the people in an economy. Various ventures are established
by the entrepreneurs with the aim of earning profits. They generally convert new idea into reality
with the help of which they provides employment opportunities to many people and this leads to
growth of the business and also contributes to the development (Schaper, 2016). Various types
of ventures are:
Different type of ventures
Small business: Small businesses are those businesses in which the employee capital size of
operations is limited to an extent which implies that their scope is narrow. For example,
Orion electrotech limited is a small business that provides various electronic items
Large company: Large companies are those companies who are operations instrument capital are
huge which enables them to get a large number of customers. Such companies can easily
move to other country as they have sufficient resources with them. For example, Tesco.
Sainsbury's etc. are large companies.

Social enterprises: This type of organisations established with the motive of serving the people
and the welfare of the society. The come up with new ideas that can help in making various
opportunities accessible to the society so that their standard of living can be improved. For
example: Save the children.
Typologies of entrepreneurship
On the basis of various types of ventures of entrepreneurship, their typologies are identified
with the help of page the business can be made more effective. Some of the typologies are given
below:
Growth firms: The companies which comes under this category aims to maximize their profits
and revenues. To achieve their profitability various innovative ideas are identified and
implemented with the help of which they satisfy the customers effectively.
Lifestyle enterprises: Such enterprises focus upon uplifting the standard of living of the society.
This can be done by way of providing various job opportunities as this will increase the
income in the hands of the people (Rey-Martí, Ribeiro-Soriano and Sánchez-García, 2016).
Entrepreneurial ventures and typologies are connected with each other as they help each
other in reducing various problems of economy which leads to their growth and development.
P2) Explore various similarities and differences among different type of entrepreneurial ventures
For developing an understanding of various similarities and differences in entrepreneurial
ventures following need to be considered :
Differences
Basis Small business Large company Social
entrepreneurship
Scale They are considered as
the small business as they
operate at small level in
context of the money.
In this the scale of the
organisation depends upon
the amount of the funds
invested, people which are
catered by the organisation
etc.
Such enterprises
operate at local level
with the help of
which they satisfy
the needs and wants
of the people in the
society.
Purpose The aim of this is to earn The purpose of the large The purpose of