Importance of Small Business and Start-up Business in Social Economy Growth

This report discusses the importance of small business and start-up business in the growth of social economy. It explores their impact on employment, innovation, local improvement, and meeting social purpose. The report also assesses relevant statistics and data that have an impact on small and micro businesses and the economy. It analyzes different types of entrepreneurial ventures and their typologies, as well as identifies the similarities and differences between entrepreneurial ventures. The subject of the report is Entrepreneurship and Small Business Management.

Entrepreneurship and
Small Business
Management

INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
P1. Analyse different types of entrepreneurial venture with relation of typologies of
entrepreneurship..........................................................................................................................1
P2. Identify similarities and differences between entrepreneurial ventures...............................3
TASK2.............................................................................................................................................5
P3. Assess and interpret relevant statistics and data which have impact on small and micro
business which have impact on economy...................................................................................5
P4. Discuss the importance of small business and start up business to growth of social
economy......................................................................................................................................7
TASK3.............................................................................................................................................8
P5. Discuss characteristics skills and traits of successful entrepreneurs that have difference
them from other business managers............................................................................................8
P6. Examine how aspects of personality of entrepreneur which reflects entrepreneurial
mindset and motivation.............................................................................................................10
TASK4...........................................................................................................................................11
P7. Analyse by using relevant example experience and background which can foster or hinder
entrepreneurship........................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneurship is define as business activity that helps in managing and controlling by
an entrepreneur which have ability to take appropriate risk which helps in gaining profit in
moderate situation. It broadly involves innovation and creation which helps to get better value
which helps get effective change in economy and society. Entrepreneur is an individual which
have ability to implement different ideas in real which is done with more perfection. This
includes identify and satisfy needs and desires of customers in leads to attract customers which
helps in attaining productivity and profitability of organisation (Barnard, Pittz and
Vanevenhoven, 2019). In addition, small business are start with minimum amount of capital with
consists of friends and family individual. These entrepreneur and business are considered as
backbone of economy of country which helps in generating the revenue and also provide job
opportunities to job seekers.
In this report, Fourex is a small company which is consider as world money exchange.
The objective of this business is growth in turnover and expansion with help of team members
and individual for expression of future.
Furthermore, this report consists of types of entrepreneurial venture by including
typology of entrepreneurship, difference and similarities among entrepreneurial venture,
interpretation and statistics of impact of small business on economy. Moreover, it also includes
characteristics, traits and skills of successful entrepreneur by adding their background which
helps in fostering and hindering the performance.
TASK1
P1. Analyse different types of entrepreneurial venture with relation of typologies of
entrepreneurship.
Entrepreneurial venture is define as enterprise which is manage by individual with aim
of achievement of their imagination and dreams into reality. They make an business entity with
objective of generate more profit with sales and if there is requirement of any changes due to
demand at marketplace. Entrepreneurship is termed as one which helps in creating or extracting
new values that helps in making positive structures in society (Dana, 2018). It includes the
ability to develop and organise of an enterprise which have numerous uncertainties which helps
in making more profit for organisation.
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Concept of Entrepreneurship: An entrepreneur is individual which have some innovative ideas
which helps in make certain changes for get more opportunities in market segment.
Entrepreneurial activity is define as process by which the imagination of individual in put into
reality which aim of attaining the profit and market share effectively (Dou and et. al., 2019).
Concepts of Entrepreneur: Serial entrepreneur: This type of entrepreneur which works on better ideas and run their
business according to details their ideas. They have many challenges on continuous basis
so they have to manage their operations with more perfection which helps in getting
success and achievement of results. It assist to generate the business in completely new
market and gain the profit by overcoming the challenges which is faced by them. Intrapreneur: This involves the individual who work on different project task by
pertaining uniqueness and creativeness. They have responsibility to manage utilisation of
resources in effective manner with leads to management of task with more capabilities
which helps in attaining suitable changes in favour of business.
 Owner manager: This is individual which manages small business and induce changes
which helps in driving more success and work with aim to satisfy the demand of
customers.
Types of entrepreneurial venture and their typologies Small Business: In this type it mainly work with limited capital having less then 50
workers which have generate revenue about $2 million while generating their business in
partnership or proprietorship. It is an enterprise which works with limited scope and size
with aim of gain more profits by selling their goods to services to end user. Examples
such as Clarasys, Electotech limited and so on. Enormous organisation: This type of business is defined as working of organisation with
large scope and size which involves more numbers of staff members )(Farhat and et. al.,
2018). These type of operations work with large scales and also offers different range of
services and products. Examples such as Tesla, Tesco and so on.
 Social enterprise: In this type of business it includes individual that voluntary come
together for improving the living standard of people with social welfare. They offers
better platform for increase the likelihood of society by giving education to lower class
children and so on.
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Typology of entrepreneurship
There are various types of typology of entrepreneurship venture which helps effective
advancement by managing different activities and some of are described below: Lifestyle typology: In this type of typology entrepreneur are worked for standardised the
living standard of society and also satisfy the demand of customers at local level and also
provides the job opportunities to job seekers (Jones and et. al., 2018). Growth firms: This type of organisation include small and large business operation
which aim to offer different products and services with innovative technology which
helps satisfying the demand of customers which is in easy and comfort manner.
Entrepreneurship in corporate sector:
Entrepreneurship in public sector:
P2. Identify similarities and differences between entrepreneurial ventures.
There are various differences and similarities among different entrepreneurial ventures
which are described below:
Differences
Basis Small Business Large company Social
entrepreneurship
Scale This type of business
work at small scale
with limited amount of
profit and revenue.
This type of enterprise
worked at larger level
and generates at
international level
having better amount
of revenue.
This type of enterprise
mainly works with
fulfilment of basic
requirement of society
which leads to social
welfare.
Purpose The aim of this type of
enterprise is to get
stability in market
segment by
achievement of better
sales and profit.
The purpose of this
type of company is to
grab attention of large
customer group and
also attain loyalty
among their brand
among customers.
The purpose of this
type of firm is to
induce development in
effective manner.
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Characteristics This type of company
manages distinct
operations having
certain interaction
with government
bodies.
As these type of
organisation worked at
large scale and widely
so there is more
involvement of
government.
As these business
mainly involve the
social welfare so they
need funds. In order
for this they wants
support of government
for changing the
society in positive
manner.
Roles The role of this type of
business is to create
and distribute services
or goods to satisfy the
demand of public.
This business is
important to overall
economy because they
work with more
financial resources and
also have aim to
provide job
opportunities, higher
wages and so on.
Social enterprise plays
important role in
society by having
mission to create and
sustaining social
values like hunger and
poverty.
Similarities
Basis Small business Large business Social business
Society upliftment They offers job
opportunities in
market segment by
which living standard
of people is increase.
These type of
enterprise not only
offers job security but
also provide good
quality of goods and
services.
The main objective of
this type of
organisation is to
develop the livelihood
of society by giving
society as they wants.
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Meets the needs This company
generate their business
to satisfy the demands
of society (Kuratko
and Morris, 2018).
This type of enterprise
mainly satisfy their
customer through
products and services
at international level.
These organisation
mainly works for
improvement and
development of
society.
TASK2
P3. Assess and interpret relevant statistics and data which have impact on small and micro
business which have impact on economy.
The micro and small business have work to make positive changes which contributes
development of economy with improving the society standard and infrastructure and further
classification is discussed below:
 Small business: This type of firm work with maximum 50 members and having turnover
of not more than 5 million and also manages the enterprise with limited amount of capital
like bakery stores, grocery and so on.
 Micro Business: This type of firm mainly covers local market and supply their demand.
This type of firm mainly works with 10-15 employees like cafe, icecream parlour and so
on. There are many micro business in UK and they all works with effectively to satisfy
the customers (Laukkanen and Tornikoski, 2018).
(Source: The Role of Start-ups and Small Businesses in Today’s Economy, 2018)
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From above graph it has been analyse as small business are large in number in UK in
comparison to large and medium organisation. Small business offers employment up to 48% of
public and create the turnover of 33%. But in terms of medium business it has 0.0 firms and
offers 12% of job opportunities to public with develops 14% of turnover which reflects less
contribution towards development of country. Moreover, large business covers 0.1% of business
which provides employment up to 40% employees and turnover of 53% . it has been concluded
as small business provide job opportunities with certain positive changes in marketplace. This
type of business mainly covers at largest scale and having ability to induce the changes which is
selective and apply with different availability of resources (Mosbah and et. al., 2020).
Impact of small business organisation on economy of UK Impact at local level: In terms of Fourex, as government of UK provide support to small
enterprise so it supports entrepreneur for perform the organisation and functions in simple
manner. They mainly work for satisfy demand of customers which leads to increase in
living standard of society. They also provide job opportunities which is helpful in
development of people and contribution of GDP is also increases. Impact at regional level: The micro and small business have impact on regional level
which leads to development of turnover in better way. This leads to positive
transformation in work with involvement of limited resources which helps in regional
level individual get job which helps in development of better skills.
 Impact at regional level: Fourex has huge impact on national level by which it leads to
induce main innovation for development at different level.
Mainly the entrepreneur ideas are come from innovations and creativity. Innovation
mainly define as development of new ideas and conversion of these ideas in right manner. In
addition, creativity means something which is new and have formation of some value. The main
sources by which entrepreneurial ideas are generate such as hobbies & interests, past work
experience, current trends, strengths & abilities and so on. Business can be protected by some
property rights such as registration of trademarks, patents and trade marks after this registration
of product or domain, business have to create confidentiality that not be disclose and also
implementing security measures. Small business should be avoid joint ownership (Neumeyer and
et. al., 2019).
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P4. Discuss the importance of small business and start up business to growth of social economy.
Social economy is define as rich diversity of companies such as foundations,
associations, social enterprise, institutions, mutuals and so on. Social economy develops due to
distinct working of small business enterprise and they leads as important aspect of development
of country. In addition, there is welfare of economy which have effective and direct contribution
to GDP of nation and economic stability. Small business is considered as backbone of economy
which involves demand of public (Ramadani and et. al., 2019). There are some importance of
small business in growth of economy are discussed below: Innovation: Due to technological advancement start ups and small business gives
positive impact by developing and creating values by providing services and products. It
is helpful in effectual learning system by digitalisation in technology which helps in
achievement of goals in effective manner. Local improvement: Many companies are generating their business nationally and locally
by employing individual from local area. As there are various facilities are there in
different market like coffee shops, boutiques, groceries and so on, there is enhancement
which easily access and reduces the mobility of organisation. Meeting social purpose: The small medium enterprise helps in improving the standard of
society by reducing the carbon footprint which helps in work with ethical practices by
which an y type of loop holes of country which is exploited with accomplishment of
goals.
 Creation of employment: This type of organisation offers job employment to both
unskilled and skilled individual which includes job at factories, shop, companies by
which situation of unemployment is reduced. These organisation created 16.3 million of
job opportunities for people in which 60% of employees are of private job which helps in
development of both national and local economy.
International business is now considered as important element for entrepreneur and their
economy. When there is start up of business in internationally which have impact on society as
there is increase in job opportunities for unemployed individuals. Earning of foreign exchange
for company and home country by extending the product life cycle.
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TASK3
P5. Discuss characteristics skills and traits of successful entrepreneurs that have difference them
from other business managers.
Entrepreneur are differentiate themselves from each other in terms of traits, skills and
characteristics which are described below:
Characteristics: It mainly reflects different ability and quality which helps in gaining the
path of success in easiest manner (Sharafizad, 2018).
Traits: It is mainly based on genes of individual such as learning ability, mindset,
confidence which helps to work with effective manner.
Skills: It is defined as capability and ability of individual which develops by more
experience which helps in enhancing increase in knowledge.
Traits of Tom Mercer: Self believe: He is an entrepreneur which have belief in himself and by this he have make
continuous working which helps in completing their task in time. Pioneering: Entrepreneur has collective approach which helps in satisfy demand and
need of consumers as he is serving oats at buses, offices which helps in gaining objective. Resolution orient: individual is worked for gaining the better advantage in competitive
world by offering daily morning oats meals to employees.
 Risk taker: He have risk taking ability has he serves oats meals at various distinct places
like offices, bus stands, cafe shops which help to complete their services by satisfy the
demand of customers.
Skills of Tom Mercer:
 Creative skills: Tom Mercer have creativity skills in him. As he makes oats for many
individual such as MOMA ( making oats more awesome) which is helpful in complete
the work in time. He have ability to provide many types oats to office people.
 Technical skills: By using digital technology, he develop his business on social level by
advertising there business on online platform for attracting and retain the customers.
 Leadership: The entrepreneur is individual which performs which perform different types
of operations which is helpful in attaining the gain from competitive world. He works as
as leader by start new enterprise (Turner and Gianiodis, 2018).
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 Communication skills: He have ability to communicate with people to attract them for
their business for getting their meal on time which helps in attaining advantage for it.
Traits of Elizabeth Gooch: Freedom oriented: As she worked in HSBC for almost 12months after this she establish
her own new business, she establish her personality as freedom oriented person and
independent. Bravo in nature: As she is continuously innovative person this leads to enhance the
demand of industry so she started consultancy firm. Visionary: She started software firm for discussing the consulting business. Her vision is
to start a new venture.
 Risk Tolerance: She is risk taking person as she started new business venture for
attracting the customers.
Skills of Elizabeth Gooch: Communication skills: She have communication skills for attracting customers. She has
started consultancy firm to work for society. She also starts new ventures for retaining
their potential customers.
 Imaginative mind-set: She have imaginative ideas as she started new ventures for
concern with customers which helps in attaining the objectives.
Difference between Entrepreneur and Business Manager
Basis Entrepreneur Business Manager
Focus An entrepreneur is individual
who manages business by
maintaining long term
sustainability which generates
better impact on local
marketplace.
Manager is person who work in
business for attaining more
opportunities for it and also
gaining more sales and profit.
Size Entrepreneur work with small
size business which have
ambition and compassion for
gaining more success.
Size of business manager depends
on size of business. If they are
working in small enterprise it is
called small business manager.
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Working efficiency Entrepreneur work with more
zeal and with passion for
gaining more success and
sustainability according to time.
Working efficiency of manager is
high which induces smooth
establishment of company.
P6. Examine how aspects of personality of entrepreneur which reflects entrepreneurial mindset
and motivation.
Entrepreneurial motivation is based on certain aspects of ability, skills, behaviour,
attributes, personality and characteristics which collectively make positive change in work place.
An entrepreneur has worked with more focused and motivated which helps in attainment of
objectives and goals (Singh and Gaur, 2018).
Trait and characteristics which reflects mindset of entrepreneur.
Entrepreneur have ability to always work with more focused and clearance to fulfil needs
and demands of customers which are helpful in transformation of ideas by providing contribution
in economy, job opportunity and enhancement of GDP. They have implement creation and
innovation of new ideas for fulfil the need at market segment. Some characteristics are discussed
below:
Optimistic Approach: Entrepreneur have characteristic as they are always work in
environment in which they are affordable which helps to get over with corporate world and have
ability to make changes.
Imaginative mindset: Entrepreneur are engage with creativeness by justifying their ideas
into actual manner which helps in making better production that improve the different services.
Some motivational drivers are discussed below: Need to control: There are various business which are already in market place.
Entrepreneur have adequate control on functional and operational probability which helps
to control management for long term sustainability.
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 Need to independence: Entrepreneur have adequate skills and characteristic with this
they worked alone by generating the demand and requirement at marketplace (Welter,
Baker and Wirsching, 2019). Need for wealth creation: This is more related to developing the asset and capital which
helps to make suitable investment in appropriate manner. Need for achievement: It is a responsibility of entrepreneur who complete the task in
timely manner it creates motivation among them which leads to success of enterprise.
There is supportive changes by efficient outcomes and more confidence.
 Need for risk taking: It is the ability of every entrepreneur as which helps in better
achievement business objectives which helps in gaining constructive and improvised
achievement.
TASK4
P7. Analyse by using relevant example experience and background which can foster or hinder
entrepreneurship.
There are various reasons which can which can hinder or foster entrepreneurship. Decline or
growth in entrepreneurship which can be dependent on factors like caste, creed, religion,
background, race and other aspects. There are various aspects that affect experiences of
entrepreneurship of past conditions in which an individual which are grows up:
 Economic conditions: entrepreneurship which can be nurtured if in any nation which
provide efficient accessible infrastructure, accessible capital, raw materials in start a new
business venture.
 National culture: It can be affected if nation does not provide supporting conditions
which engaged and celebrated.
 Characteristic trait: People have many characteristic, trait in order to be become
entrepreneur in success manner. Motivation can be provided to people who face difficult
situations and they are afraid from many situations (Zhu, Kara and Zhu, 2019).
Background of Elizabeth Gooch
She is come with appealing through building infrastructure of own. She has experience of
about 12 months of working in HSBC bank. But after few years she decide to quit the job
and accept risk taking by opening new venture of own. She has technical knowledge
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which is very important to implement or conduct a right business model. This type of
characteristic become unique from all other individual.
Experience of Elizabeth Gooch
She has about 12 months of experience of working in particular sector. She has
leadership quality and have a risk bearing. As she is founder and CEO of EG solutions
which is software company. She is mainly focus on strategy which is made by for
attracting more attention.
Background of Tom Mercer
He is graduate from Cambrige University as management consultant with Bain &
Company in London. He start MOMA because as when he goes to office he grind oats.
So this leads to taking process. After this, in his mind a thought came as why not a
organisation can be open. By opening this firm in 2006 before he prepare the oat meal
and sale it on tram, bus station, train around all over London (Whitehurst and Richter,
2018).
Experience of Tom Mercer
Characteristic of Tom is, he have risk taking ability. He started his business by assuming
his product will hit in market. He have extraordinary skill which leads his business to
success stairs. At time of recession, he made a policy that he take out his business to
various super shops and this leads to massive achievement of his organisation.
CONCLUSION
It is concluded from above report as small business and entrepreneurial has major impact
on improvement of distinct services and products by satisfy the needs and desires of customers
which help in raising the living standard of society and make many changes for perfection. In
addition, entrepreneur business is also offers employment opportunities to large numbers of
buyers which includes different types of customers with their distinct types of business which
helps in increase the betterment of society. Furthermore, there are various kinds of motivation
which fostering and hindering the mind-set of entrepreneur.
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REFERENCES
Books and Journals
Barnard, A., Pittz, T. and Vanevenhoven, J., 2019. Entrepreneurship education in US community
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Dana, L.P., 2018. ENTREPRENEURSHIP & SMALL BUSINESS.
Dou, X. and et. al., 2019. Outcomes of entrepreneurship education in China: A customer
experience management perspective. Journal of Business Research. 103. pp.338-347.
Farhat, J. and et. al., 2018. New directions in entrepreneurship research with the Kauffman Firm
Survey. Small Business Economics. 50(3). pp.521-532.
Jones, P. and et. al., 2018. Entrepreneurship in Africa, part 3: Conclusions on African
entrepreneurship. Journal of Small Business and Enterprise Development.
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handbook of small business and entrepreneurship (pp. 297-320). SAGE Publications
Ltd.
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Ramadani, V. and et. al., 2019. Beekeeping as a family artisan entrepreneurship
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Sharafizad, J., 2018. Informal learning of women small business owners. Education+ Training.
Singh, S.K. and Gaur, S.S., 2018. Entrepreneurship and innovation management in emerging
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Welter, F., Baker, T. and Wirsching, K., 2019. Three waves and counting: the rising tide of
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Zhu, L., Kara, O. and Zhu, X., 2019. A comparative study of women entrepreneurship in
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