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

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1& M1: Different types of entrepreneurial ventures............................................................1
P2 & D1:: Similarities and difference between entrepreneurial ventures..............................3
LO 2.................................................................................................................................................6
P3 & M2: interpretation and assessment of relevant data and statistics to explain the way in
which micro and small business influence on the economy...................................................6
................................................................................................................................................7
P4 & D2: Importance of small businesses and business start ups to the growth of social
economy.................................................................................................................................1
LO 3.................................................................................................................................................3
P5 & D3: Traits, skills and characteristic of successful entrepreneurs. ................................3
P6 & M3: Entrepreneurial personality reflect entrepreneurial mindset and motivation........4
LO 4.................................................................................................................................................6
P7 & M4 & D4: Discuss ways through which background and experience can foster
entrepreneurship.....................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Entrepreneurship is stated as starting a new venture by executing innovative idea into
action with well defined aim of generating huge revenue (Ahn, and Park, 2018). Those are
capable enough to take risk and are accountable to take decision on their own stake are termed as
entrepreneur. Nation growth and development is based on entrepreneur as they contribute large
financial amount for development as well as generate huge job opportunities for employees.
Hence, entrepreneurs achieved higher support from the governing bodies in establishing small
business enterprises which increases their numbers in nation. This assignment covers different
types of entrepreneurial venture and their relation with typology of entrepreneurship. The
similarities and dissimilarities of entrepreneurial venture are stated properly. However,
importance of small business on social economy are studied for future improvements. The
background , skills, traits of two entrepreneurs are studied to better understand how it foster
entrepreneurship.
LO 1
P1& M1: Different types of entrepreneurial ventures
Entrepreneur is stated as an individual who take all the risk and start up a new business in
the open market place. It is takes all the decision regarding the business growth and development
as well as it's operation activity. Entrepreneur come up with those goods and services which are
mostly demanded by customers in the global market but are displayed in the open market in
creative and innovative way. Many times completely new goods and services are launched by
entrepreneurs and create demand for that particular goods in the mind of the targeted customers.
The main motive of entrepreneurs in to maximize huge profit as compare to competitors
prevailing in the open market place.
Entrepreneurial ventures are those businesses with distinguish scope and sizes that are
functioned by entrepreneurs in the internal market with varied purpose. It involves public and
private sector both. Private sector are those businesses which are operating only for profit and are
not controlled by state. They do not work work the welfare of the society. Example of private
sector businesses are, Plumbers, Dentistry, legal services etc. Whereas, public sector businesses
are part of voluntary sector and mainly focus on upliftment of the society. Some of the examples
of public sector are, Health care, Fire services, Law enforcement, education services and so on.
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In the cut throat competitive world new venture is likely to attain more success and growth in
short time duration because their goods and services are unique and are different from one which
are present in the market. New and start-up's organisation are able to flourish rapidly in the open
market place because innovative products are able to seek the attention of customers easily due
to which huge sales ratio raises tremendously. When the new or the changed products are
appreciated by people in the nation then other entrepreneur get motivated to come up with more
unique and innovative goods in the market (Almahry and Hamdan, 2018). Below are the various
types entrepreneurial ventures which are illustrated as under:
Small business entrepreneurship: This type of businesses are operating in small scale
and are independent in nature. Small business entrepreneurship size is small and are limited. On
the other hand the profit maximization ratio is totally dependent on other sector. Earning
livelihood is the main motive of this type of entrepreneurship because they are operating at low
cost in the market. Some of the examples of small business entrepreneurship are, electricians,
Grocery stores and so on. Example: TSB bank in Barnet is small business which is offering it's
services of bank to the local area effectively. The scope of the bank is to help local people and
community to expand unitedly. By this emerging issues related to finance can be solved easily.
Organization has huge opportunity to grow and develop their bank services in national and
international level. Management are framing strong policies in order to attract large number of
customers towards their services so that huge profit can be gained and business can be expanded
smoothly.
Scalable start up entrepreneurship: This type of business select creative idea and
identify repeatable business model which can be turned into more profits and growth of the firm.
Scalable start up entrepreneurship is recently risen business venture who will be developed in the
selected in market place. In this type of organization entrepreneur do not enter the business in the
vast market because there is no certification of being executed in the market (Anderson and
Bensemann, 2019).
Large company entrepreneurship: This type of business is operated at large scale so
the management requires sufficient amount of funds in order to run the business function in
appropriate manner. Large company entrepreneurship is developed with the assistance of
continuing advancements and offering new and appealing services to the customers as their
preferences and taste which are changing accordingly.
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