Entrepreneurship: Types, Impact, and Importance

This document discusses the different types of entrepreneurial ventures, including large company ventures, scalable ventures, small business ventures, and social ventures. It also explores the differences and similarities between these ventures. The document further examines the impact of small and micro businesses on the economy, including relevant statistics and data. It highlights the importance of start-ups and small businesses in economic growth and discusses the traits, characteristics, and skills of successful entrepreneurs. Overall, it provides a comprehensive overview of entrepreneurship and its significance in various aspects.

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Various entrepreneurial venture and typology of entrepreneurship..................................3
P2 Differences and Similarities between entrepreneurial ventures........................................3
TASK 2............................................................................................................................................3
P3 Relevant statistics and data to show impact of small and micro businesses on economy 3
P4 Importance of start-ups and small business in growth of economy..................................3
TASK 3............................................................................................................................................3
P5 Determination of traits, characteristics and skills of successful entrepreneurs.................3
P6 Ways in which personality of entrepreneurs reflect on motivation and mindset..............3
TASK 4............................................................................................................................................3
P7 Use relevant examples to explain ways in which background hinder or foster
entrepreneurship.....................................................................................................................3
CONCLSUSION..............................................................................................................................3
REFERENCES................................................................................................................................3

INTRODUCTION
Entrepreneurship can be said to be creation as well as extraction of some value from an idea.
And entrepreneur is a person who is responsible for creating a new business idea and also
implementing the Idea along with carrying the risk which is involved in order to receive profits.
An entrepreneur can be said to be a creator or innovator of new goods or services or ideas and
business procedures (Frese, Geiger and Dost, 2019). It includes planning, designing as well as
introducing of the business idea in the market. In the following report there are discussions made
on various type of entrepreneurial ventures their similarities as well as differences. Effects of
small and start-ups on growth of an economy is also discussed. Along with it various skills and
attributes required by an entrepreneur and background and experience of entrepreneur affecting
their decision making skills are also discussed.
TASK 1
P1 Various entrepreneurial venture and typology of entrepreneurship
There are a number of opportunities and innovations which are used by different business
on the prices in order to run their business. The entrepreneurship can be said to be a process of
bringing out a business idea and applying it on a business in order to earn profit with the help of
risk which is taken. These enterprises can be divided into four basic types which are mentioned
below:
Large company entrepreneurial ventures: These are the companies which come up with new
innovation of a product or service which are related to their existing product or service in the
market. Their major aim is to grow their business and earn more profit through it. Google,
Microsoft are some examples of such a venture.
Scalable entrepreneurial ventures: Scalable enterprises are those enterprises which come with
innovative ideas in order to bring a change in the world. The majorly focus on innovative
techniques and recruit hire skilled laborer’s and human resources. They use a flexible business
strategy in order to attain the changing market trends. Various online shopping sites can be
example of such organisation.
Small business entrepreneurial ventures: Small business entrepreneurial ventures are those
ventures which have very limited profit earning and are developed in order to fulfil the basic
needs of an entrepreneur. They usually run in a small scale and do not require a lot of capital at

the beginning. Various small business consultants, plumbers, carpenters can be example of small
business entrepreneurial ventures.
Social entrepreneurial ventures: The social entrepreneurial ventures are developed in order to
provide various services and product which helps to solve various issues and conditions in our
marketplace. These can be profitable, non-profitable or a hybrid of both of these organisations.
World Health Organisation can be an example of social entrepreneurial venture which bring
awareness about health in people all around the world (Lemley and McCreary, 2019).
Various typologies of these entrepreneurial ventures are mentioned below:
 Aggressive growth ventures are those ventures which are using various advanced technology
in order to bring innovation. Their major is aim is to stay in the market for a longer period of
time in order to grow globally.
 Lifestyle ventures are those companies who are not aiming for expansion or growth but they
always provide customers with optimum satisfaction. They have very limited human resource
and usually run from a single place and manage entire business through fulfilling customer
requirements.
 Managed growth ventures are another typology of entrepreneurial ventures who are aiming at
generating higher profits through expanding their business. They usually look for
experienced workers who can help them in increasing the productivity of company and
bringing in profits for the company.
 Survival ventures are those ventures which help to different people and society is in need.
They only work to increase the standard of living in people. They build social status of
people with the help of their work.
P2 Differences and Similarities between entrepreneurial ventures
Similarities between entrepreneurial ventures
Social enterprises Scalable entrepreneurial
ventures
Large company
entrepreneurial ventures
They help in fulfilling the
needs of people in the
society to survive.
The study requirement of
people and then bring in
innovative products in order
to fulfil those requirements.
They also fulfil the
requirement of people but
however they operate at a
very large scale
Major focus of these The profit which are In order to increase the

enterprises is to increase the
living standards of people
and hence their living
conditions.
generated by these
organisations are usually
held to bring in new
innovations in the economy.
This economy however
increase the living
conditions of people
(Gutmann, 2019).
living conditions of people
large organisations go for
corporate social
responsibilities which helps
them to identify needs of
people and improve the
living conditions
Differences between entrepreneurial ventures
Social enterprises Scalable entrepreneurial
ventures
Large company
entrepreneurial ventures
The major aim of such a
businesses not to earn profit
but to make sure that they
make the world a better
place for living for the
citizens. They usually focus
on different problems
present in society and solve
them.
They majorly focus on
bringing in new and
innovative products and
services in the market. They
look for the needs of people
and fulfil those needs with
the help of the locations.
Their major is aim is to
attract a number of
customers and grow their
business. They work for
earning profits and I was
defying their business
worldwide.
These companies do not
spend much or focus much
time on hiring processes.
Usually a number of people
themselves joined the
organisation as a voluntary
process and also leave the
organisation as per their own
and wish.
These organisations need
highly skilled and qualified
people for their work. The
focus a lot on their hiring
process so that they can get
the best employees who can
fulfil all the requirements.
Such organisations operate
in a number of places.
Therefore, the allotment and
hiring of human resources is
done from a number of
different regions. It is
necessary to understand
various cultures and belief
of regions before hiring the
people

Examples for such social
enterprise can be Cafe
direct, Hill halt wood and
so on.
Facebook, Instagram,
YouTube, Twitter are
examples of such
enterprises.
Apple, Samsung, Google,
are example of large
entrepreneurial ventures.
TASK 2
P3 Relevant statistics and data to show impact of small and micro businesses on economy
The above-mentioned graph shows the effect of a small business organisation in economy of
United Kingdom. Below mentioned are the interpretations:
 These businesses contribute 24% to the economics of United Kingdom.
 They have a positive effect in order to increase the gross domestic product of the country.
 There are a number of benefits taken by government with the help of custom duty on
these organisations.
 These organisations also provide 80% of employment in the economy decreasing the
unemployment rate for the country.

The above-mentioned statistics shows the performance of Micro businesses in United Kingdom.
Below mentioned is its interpretation:
 The contribution of micro businesses towards the development of United Kingdom ‘s
economy is 17%
 There are a number of employment opportunities provided by these companies.
 It helps the government in increasing its revenue by gaining higher revenue from the
foreign investors (Arend and Patel, 2020).
 They come up with a number of innovative products and services which help in fulfilling
various requirements and needs of customers.
Importance of micro and small businesses on different economies:
Local economy: there are a number of benefits from micro and small businesses to a local
community. The buying and selling between friends and neighbours take place in these regions.
This helps in survival of various population in small regions. They also help in providing
employment to the local people giving them away to earn their living.
Regional economy: Small and micro businesses play an important role in the development of a
regional economy. There are a number of local resources which these properties and businesses
used for their purpose. They help in changing the economic condition of our region. They
develop employment opportunities along with interest structure in various regions.
National economy: The small and micro businesses greatly affect national economy with the
help of taxes. They generate revenues which are leading them to profits and they also have to pay
higher taxes along with various property tax. The sales election tax also benefit this business and

economy as a whole. They help in increasing homeowners status of living as well as they also
improve the bottom line for collection of higher property tax in a number of region (JONES,
2020).
P4 Importance of start-ups and small business in growth of economy
Social economic consist of both private as well as public sector. There are four pillars in a
social economy which affected by small businesses and start-ups mention below:
Mutual: Mutual is the first pillar of economy. The major aim of this pillar is to provide various
effective services to the users and attain revenue from those services. A number of products and
services are provided by them in order to increase the standard of living in a place.
Foundation: These include charitable as well as nonprofitable organisation which are helping a
number of institutions. They are majorly related to charity for religion, education, medical care
and so on.
Charities: This pillar of the economy helps in economic as well as social growth. This usually
include a group of individuals who are focusing on raising the different unattended aspects in an
economy.
Associations: Association refer to a group of people who come together in order to form a
business organisation. This includes companies, sole proprietor as well as partnership firms
(Storr and Choi, 2019).
Importance of various start-ups and small businesses for an economy are mentioned below:
Innovation: most of the start-ups and small organisations come up with new ideas and
innovations. They help in increasing the lifestyle of people in the economy and identifying
various and identified need of customer. They majorly focus on making the life of customers
more convenient and easier.
Decline in poverty: With the increase in gross domestic product from the help of small
businesses and start-ups poverty can be eliminated from the economy. They help in raising the
standard of people living in the economy by providing them job opportunities.
Employment opportunities: One of the major benefits of small businesses and start-ups to an
economy is that they provide a lot of employment opportunities. It has been seen that a number
of countries which are facing unemployment can gain employment for the citizens with the help
of these start-ups. The major reason behind this is that start-ups and small businesses operate in
smaller and rural areas provide employment to population there.

TASK 3
P5 Determination of traits, characteristics and skills of successful entrepreneurs
Skills
Simon and Bobby Arora
Influencers: Simon and Bobby Arora where huge influencers. They influence their employees as
well as the market which provided them a power to change and make decisions for themselves.
Curiosity: it is necessary for every entrepreneur to be curious enough in order to look for new
opportunities in the market and apply them in their business (Ye, Xiao and Zhou, 2019). These
entrepreneurs were curious which led them to think of a new business and achieve success with
the help of the business.
Richard Branson
Uniqueness: Richard Branson was different from others. His thinking capability was more than
others which was an important skill which helped him in generating new ideas for his innovative
business which is now one of the leading business in United Kingdom.
Characteristics
Simon Arora and Bobby Arora
Passionate: The passion is something which drives an entrepreneur towards success. It is
necessary for every entrepreneur to be passionate about their work. Simon and Bobby Aurora
were passionate enough to set up their business and look for various market opportunities in
order to succeed in their entrepreneurship.
Richard Branson
Money minded: Profit is the alternative motive to words which every entrepreneur is working.
Richard Branson was money minded and always thought of making profits. These profits helped
him to take various decisions regarding investment and taking risk for his business.
Traits
Simon and Bobby Arora
Rigidness: It is necessary for entrepreneur to manage the large business. They need to be rigid
enough to apply their decisions and strategies in a business. In order to do so Simon and Bobby
Arora were rigid leaders who always focused on their goals and objectives.
Innovative: Innovation is the key to success for every business it is required by every business
and entrepreneurs to look forward to bring in new innovations and techniques into business.

Simon and Bobby Arora very innovative enough to come up with the new idea of retail stores
which help them in generating profits and setting up of business.
Richard Branson
Flexible: Richard Branson followed a different strategy in order to run his business. He was
flexible enough and took decisions according to his own perspective. All the strategies created
by him for his business we are flexible so that we can except the changing market trends and
change the activities in his business which helps him in success.
Innovative: Innovation is necessary for every business man. Richard Branson was innovative
enough to make sure that he had a diversified business throughout the globe. He came up with
different ideas and set up his business in a number of different industries so that he can gain
profits out of it.
There are a number of differences between an entrepreneur and a manager. Below mentioned are
some of those differences.
 An entrepreneur is a creator of a new innovation or product in the market in order to earn
profit. Where as a manager is a person only take orders from others and get the work done
for others.
 The major focus of an entrepreneur is to come up with a new idea which can be built up in a
business plan so that profits can be earned through it. We are as a manager only focuses on
how to complete the task which are allotted to him by the business organisation.
 The risk which are taken to run a business generates return for the entrepreneur in
entrepreneurial venture. On the other hand no risk is attached to a manager as they only work
for someone else and they are not the owner of the organisation.
 Profits for the organisation helps in encouraging and motivating an entrepreneur. On the
other hand the incentive and target which are provided to a manager by the organisation
helps in motivating them.
P6 Ways in which personality of entrepreneurs reflect on motivation and mindset
Trait refers to various motive, attitudes which helps in increasing the skills as well as
experience of an individual or an entrepreneurial personality. Below mentioned are various traits
of both the entrepreneurs which will help them in entrepreneurial motivation:
Simon Arora and Bobby Arora are two brothers who are successfully running their own
retailing store B and M. They provide their customers with a number of different superior quality

products of home wares in order to satisfy them. They started their company has a small start-up
and now have a number of retail stores. They make sure that there are a number of strategies is
developed which will help them in attaining all the market opportunities available. They are
ready to take the risk required in order to attain this market capabilities to improve their profits.
There is major motive is to successfully set up their business in retail market (Alfaro and et. al.,
2019).
Richard Branson is a famous entrepreneur as well as philanthropist. He founded the
company virgin group in 1970. The leadership quality adopted by Richard helps him in
motivating all the employees of the organisation so that they can actively participate in the
activities of the organisation and achieve maximum profit activity for the organisation. The
leadership quality of entrepreneur helps them in motivating others and achieving all their goals
and objectives in the stipulated time period.
Both the entrepreneurs who are mentioned above had their family to support and back them
up. There were a number of skills and knowledge which they gain throughout their lives in order
to make sure that they can successfully motivate others and achieve all the functions of
management in a better way. It was required to undertake maximum risk in order to attain profits
from the organisation which was successfully done by these entrepreneurs.
TASK 4
P7 Use relevant examples to explain ways in which background hinder or foster entrepreneurship
There are a number of experiences which an entrepreneur goes through which have major
effects on their business and the way in which they take decisions in their business. These
background experiences regarding Simon Arora and Richard Branson are mentioned below:
Simon Arora was a great student and is now working as CEO of a retailing chain company
B&M. The background of company has been set up by Simon and Bobby Arora who are
brothers. They had innovative minds and were encouraged by their family members who helped
them in setting up their entrepreneurial venture. They undertook a number of risks in order to
attain high returns in the market. They had problems regarding the arrangement of capital is in
the beginning of the business but the support from their family help them in generating profits
and a successful business enterprise (Scornavacca, Paolone and Martiniello, 2020).

Richard Branson was born in 1968 and has set up a successful entrepreneur ship named as
virgin group. There were a number of traits and characteristics which helped Richard in setting
up his business and attaining profits in the business. The supportive family and good financial
background helped him in setting up his business. There were a number of achievement such as
mail order record which was launched by him. The difficulties arising in business situation every
day helps Richard Branson in taking effective steps in order to set up a successful business and
grow his business all over the world.
CONCLSUSION
From the report above it can be concluded that introduction of new entrepreneurial venture
in startups are helping in development of an economy emergency. There are a number of ways
through which they help in development of an economy such as providing employment,
increasing infrastructure development and helping to raise the gross domestic product of the
economy. Along with this there are various effects of background and upbringing of an
entertainer on their entrepreneurship and decision making skills in business. The following report
clearly describes how can startups help in earning profits for the new entrepreneurs who take risk
along with their new innovative ideas.

REFERENCES
Books and Journals
Frese, T., Geiger, I. and Dost, F., 2019. An empirical investigation of determinants of effectual
and causal decision logics in online and high-tech start-up firms. Small Business
Economics, pp.1-24.
Lemley, M.A. and McCreary, A., 2019. Exit Strategy.
Gutmann, T., 2019. Harmonizing corporate venturing modes: an integrative review and research
agenda. Management Review Quarterly. 69(2). pp.121-157.
Arend, R.J. and Patel, P.C., 2020. The American Dream, Melting Pot and Regional Knowledge
Stock as Drivers of Entrepreneurial Activity. Journal of Developmental
Entrepreneurship. 25(01). p.2050001.
JONES, J.J., 2020. HOW IDENTITY INFLUENCES THE INVESTORYENTREPRENEUR
RELATIONSHIP: THE CASE OF IMPACT INVESTING (Doctoral dissertation,
University of Colorado).
Storr, V.H. and Choi, G.S., 2019. Markets Are Moral Spaces. In Do Markets Corrupt Our
Morals? (pp. 145-191). Palgrave Macmillan, Cham.
Ye, S., Xiao, H. and Zhou, L., 2019. Small accommodation business growth in rural areas:
Effects on guest experience and financial performance. International Journal of
Hospitality Management. 76. pp.29-38.
Alfaro, E. and et. al., 2019. and Patrice Kandolo Kabeya. The Routledge Companion to
Innovation Management.
Scornavacca, E., Paolone, F. and Martiniello, L., 2020. Investigating the entrepreneurial
perspective in smart city studies. International Entrepreneurship and Management
Journal, pp.1-27.