[PDF] Understanding Entrepreneurship Types and Their Impact on Economy

The report provides a detailed analysis of various types of entrepreneurship, including small business enterprises, scalable business ventures, large-scale enterprises, and social enterprises. It also explores typologies of entrepreneurship linked to business types such as survival and lifestyle entrepreneurship. Furthermore, the assignment discusses the impact of micro and small organizations on the UK economy and emphasizes the significance of small businesses and startups for social economy development. Additionally, it frames the background of entrepreneurs like Richard Branson and Jamsetji Tata, who were motivated by their entrepreneurial backgrounds to establish successful business enterprises.

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

Table of Contents

INTRODUCTION
Entrepreneurship is termed out as capacity and willingness to develop, organize and
manage the business activities in order to make profit. It is the heart of every business. Hence,
entrepreneurship and small business management skill aids to accomplish the goals and
objectives of the company (Akhmetshin and et.al., 2018). Thus, entrepreneurs are considered to
be those individuals who looks ahead to produce value with creating and developing human
activity and take initiatives to identify products, processes or markets. Generally, this is term
that is defined as transforming the world with help of solving the big problems.
The present report cover will look over the activities of entrepreneurship and small
business management and it aids to explore and illustrate range of entrepreneur venture. Hence,
it is the term that determine the growth of UK economy.
Furthermore, report will look over the topics as type of entrepreneur ventures and how it
relates with typology of entrepreneurship, various trait and skill of successful entrepreneur.
Lastly, background and experience hinders and fosters entrepreneurship.
TASK 1
P1
The system of establishing, processing and operating a commercial enterprise by
undertaking the monetary risks is known as entrepreneurship. However, the person who carry
out the venture is known as entrepreneur. Moreover, entrepreneurs are often concept of country
wide assets to be delicate, prompted and compensated to the best feasible extent. Thus,
entrepreneurs can alternate the way people survive and work. However, skilled entrepreneur
additionally improve living standard of people that means with the aim of earning profits from
their business, they also create jobs opportunities for the enhancement of the society
(Hillary,2017).
Successive entrepreneur: This the person who always comes up with new thoughts and
ways of setting the business and expand its operations.
Intrapreneur : this is person who always comes up with innovating ideas and strategies to
undertake the marketing activities.

Own manager: This is person who is responsible for all the activities of the organization
and do not have report to anyone.
kinds of entrepreneurial ventures are as follows:-
Small business enterprise:A small enterprise is a venture which is privately owned and
operated by individual or groups with a small quantity of personnel and comparatively low
extent of sales. However, small corporations includes food stores, hairstylists, experts, tour
operators, cybercafes, carpenters, plummet, lineman and many others.
Scalable business enterprise: In this form of entrepreneurship, Individuals and groups
initiates their business by believing that their objective can develop the perception of the people.
However, they fund their business with the help of capitalists and they recruit the most skilled
and potential employees in order to take the business at higher level. Moreover, Scalable
business ventures includes Facebook, Instagram, Twitter, various shopping applications like
shein, amazon, myntra etc.
Large company entrepreneurship: Huge corporations operate their business by
maintaining creativity, offering new products which are strong competitor of different
companies products and new and improved merchandise are developed so that they can meet
with converting purchaser wants and digitized technology (Storey,2016). However,
organizations develop this by joining with large companies like Google, Sony, HCL etc.
Social business ventures: Social entrepreneurship is a venture where the person
develops products and services to manage society's issues and difficulties that are faced by the
people. Moreover, their most effective purpose is to benefit the society and no longer to make
income or profits from that business.
Typology Of Entrepreneurship
Survival typology:In this type of typology, business enterprises offers essential services
to the people and their families and are operates with lesser number of assets and resources.
However, this type of typology is related to the small business enterprise where individuals or
groups run their business with the aim of fulfilling basic financial needs of their own self and of
their families as well.
Lifestyle Venture: According to this type of typology, the business of the individual
person or groups help them to have balanced income and have no objection to expand its

business (Bikse, Rivza and Riemere,2015). However, this type of typology is linked with social
enterprise where individuals operates with the aim of improving the society needs instead of
earning profits and income.
Managed growth venture: According to this type of typology, the individual person or
partnership operates their business with the aim of stable development and entering into the new
market place in order to capture huge percentage of market share and customer base. However,
this type of typology is linked with the Scalable business enterprise where the entrepreneurs
expands its business operation through partnership in other advanced companies which enable
them to enjoy continuous growth opportunities.
Aggressive growth venture: This type of typology focuses on the advanced technology
with enhanced innovation and creativity to operate the business activities that leads to growth
and more revenue for the business. Moreover, this type of typology is linked with large
enterprises where owners of the company operates its business activities with more innovation
and creativity and at same time adopted advances technologies in order to provide better
products and services to its customer.
P2
Similarities Small business Scalable business Large business Social enterprise
Strong willed entrepreneur The small business entrepreneurs aims to earn profit but they have
certain level up-to which they can earn profit and that satisfies their essential financial needs
(Block, Sandner and Spiegel, 2015).The Scalable business owners also earns to earn profit with
the aim that they could have stable growth and revenue through which they can operate their
business operations. The large business entrepreneurs aim to earn profits as they develop new
products on a periodic basis and adopt advanced technology to provide more enhanced products
and services to its customers. The social organizations aim to have balanced growth as they
work for the welfare of society and development of the country.
Funding from venture capitalist or investor The small businesses owners fund their business
operation with the help of families and relatives The Scalable business owner fund their
enterprise with the help of investors or involved in partnership business. The large company
owner fund their business activities by taking loans from banks or from other financial

institutions. The social organization fund their business operations with the help of large
companies or their own capital to contribute to the society.
Differences Small business Scalable business Large business Social enterprise
Managerial focus The managerial focus of small enterprises is to handle the business activities
in such a way that it fulfill their basic needs and wants. The Scalable business manages the
activities of their employees so that they work according to the goals of the company. The large
business corporations focus on managing the technologies and new products in order to earn
profits and capture huge market share (Dimitratos, and et.al., 2016).The social organization
manager their activities that directly fulfill the needs of the society instead of earning the profits.
Managerial styles The small business enterprise follows autocratic style as they take
decisions by their own and have no subordinates. The Scalable business follows democratic
style where they involve employees in the decision making process of the company. The large
companies follow persuasive managerial style where take allow the employees to give their
ideas and opinions but final decision is made by the owners of the company. Social enterprises
follow laissez- faire managerial style where employees are allowed to make decisions regarding
the business problems and solve them independently without any intervention of their managers.
Economic motives The motives of small business is to fulfill basic financial needs. The motives
Scalable business is to earn profit that gives them stable growth and revenue. The motives of
large scale business is to earn higher profits in order to expand its business operations. The
motives of social organization is to contribute towards the development of society and its well-
being.
TASK 2
P3
Micro enterprise defined as small business that aids to undertake creation process in the
market. Hence, it has been state that there are total 5.6 million small business at the start of the
2018. By comparing with the previous year, the employment has been increased in the private
sector. Therefore, it can be stated that there are number of businesses per person southern
England than elsewhere in the UK. In addition to it, this has been identified that SMEs account

for at least 99.5% of the businesses in every main industry sector. Small business enterprise has
markable journey in order to have innovation process so that long term competitive advantage
can be gained. The micro and small business captures a higher part and also contributes highly
in economy of the country. Hence, there are number of micro and small business that is
increasing over the time and these are generating high profitability by providing different
product and services to customer. Therefore, in UK small business are high and here is more
than 4.5 million SME's are established throughout the kingdom. In addition to it, profitability
generated by businesses have high contribution to GDP of the UK.
Illustration 1: Contribution of SME in UK economy
(Sources: facts about small medium businesses in the UK, 2018)
As per the above stated graph, it has been clearly indicated that number of small and
micro business is much higher than medium and large business in United Kingdom. Hence, it
can be said that small and micro businesses earns 37% of turnover and provide 48% of
employability throughout the UK. It is clearly been showing in graph that there are 99.3% small
size businesses are working in industry. In addition to it, total sale of SME's are 33% for

medium size it is 14%. Thus, large number of employment opportunities are given by small
firms that is 48%, medium-sized creates 12% jobs and large size has rendered 40% in total jobs.
Therefore, it can be stated that micro enterprise aimes at bringing high innovation, new
idea and wide technical advancement that leads to have improvement in society. Hence, small
businesses enterprises are contributing 33% turnover in UK economy, whereas large size
enterprise rendering 44% of total turnover through small company (Antoncic and et.al., 2015).
However, absolute contribution is 33% but that is also a significant share. High rate of turnover
will assist in order to have growth and expansion. Therefore, government invests this money for
public welfare, infrastructure projects, capital projects and development and also allows to have
maintenance of essential services etc. Hence, it can be said that small business tends to be
growth with time and also aids to attract more people in the country.
P4
Social economy is an economy that focus on both the economic needs and the societal
needs. Further, the social economy provides the jobs and help the people meet their necessities,
not only through increment in production also by adopting the advanced technology for the
development of the country.
Small enterprises are essential as it helps in providing employment opportunities and
leads to economic development. However, business startups increases the development of
country by means of developing the rural and urban areas. Further, small enterprises help the
government authorities in improving infrastructures and production industries, reducing
problems like environmental condition, slums, economic condition, and many improvement
programs. However, business start ups and small industries play an essential function within the
economic improvement of country (Simonova, and et.al., 2017). However, the capital invested
in small scale business helps in reducing unemployment from the country and increases the
employment opportunities for people.
Wealth creation: In small companies and business startups, entrepreneurs investments
through their personal resources and draw capital within the shape of debt or equity from
traders, creditors and the general public. Thus, this gather public wealth and lets in people to
benefit from the achievement of entrepreneurs and development of an organization. However,

this pooled capital helps in the creation of wealth and distribution is one of the fundamental
goals of social economic development.
Job creation: Business startups supports the local economies by developing and
promoting creativity within the society in which the commercial enterprise operates its business
activities. However, Small companies additionally assist to increase the financial condition of
people by providing the employment opportunities to those who don't get jobs in large
organization. Further, Small corporations generally recruit people with skills who develop new
products and provide innovative ideas. Moreover, large enterprises are benefited from business
startups as many big businesses depend upon small organizations for the conduction diverse
commercial enterprise functions through outsourcing.
Meeting social purpose: Small corporations improves the living standard of people
which ultimately leads to the economic development of the country and business startups play a
key function in growing the standard of living of a society. Therefore, they try not only by
means of growing jobs, however additionally with the aid of growing and adopting
improvements that result in enhancement in the living standard of their personnel, clients, and
different stakeholders within then company. For instance, advanced technology helps in
reducing production prices and enables quicker production that will make small business and
startups greater effective, and additionally providing its customers with the identical items at
decrease charges (Iwamoto,and Yasuda, 2017).
Local improvement: Individual or groups establish new organizations and business units
help in the regional development by operating its business activities in backward areas of the
society. However, the small business and startups in these regions leads to infrastructure
enhancements like proper roads and railways, airdrome, proper lights and water supply, schools,
hospitals, departmental stores and different public and personal offerings that won't be available
anyways.
TASK 3
P5
A manager is a person in the business who supervise the work of different personnel
within a branch or in a larger phase of company. On the other hand, entrepreneurs are the

individuals or groups who understands client issues, analyze the plausible solutions and resolve
the problems of general public.
Skills of Entrepreneurs
Accountable: A successful small and medium enterprises is mostly an accountable
individual or groups who is responsible for the achievement or the failure of his undertaking,
and they usually take their obligation very strictly and due to the fact that he is the handiest
person thus, he becomes the leader of his enterprise. Therefore, leadership characteristics are
one of the principal components of an entrepreneur. On the other hand, business manager is the
person who is liable for the establishment and management of personnel or a department of the
company. However, his daily process is to control his personnel and make certain that the
employee runs smoothly. Further, a manager should own some traits of an entrepreneur, like
leadership, responsibility, resoluteness etc.
Innovative: A successful entrepreneur is creative that transform a concept into a
business. However, a businessperson is the proprietor of the commercial enterprise, so he
manages all the financial and other business risks and issues. However, a business manager is a
personnel, who works only with the sake for earning income, thus, he does not bear any risks
that occurs in an organization.
Development: Moreover, the purpose of successful SME's lies in beginning the
commercial enterprise and later increasing and developing the business, Whereas, a managers
focuses on the routine activities of the commercial enterprise (Lai, Saridakis, and
Blackburn,2015).
Achievement: However, For a successful entrepreneur their motivation comers from the
accomplishment of goals. However, the managers motivates to work towards the
accomplishment of goals through the way of promoting at higher position.
P6
Entrepreneur motivation is the method of converting a usual person into a successful
businessperson who provide opportunities and enables to increase wealth and financial
improvement. However, it's miles described as different factors that helps to achieve goals and
develops enthusiasm in businessman which lead them to achieve a particular objective.

Optimism:Entrepreneur who posses affirmative mindset get inspired by means of
positioning possibilities in the course of crucial conditions. However, effective attitude and
notion inspire a person to perform for the great results even in the course of negative and
difficult circumstances. The entrepreneur must have the power to make decisions by their own
with the confident behavior.
Positive attitude: Positive attitude of an entrepreneur is the most essential component
which inspire the individual to end up as a flourishing businessperson. However, have positive
attitude helps an individual to increase visionary thinking; it motivates them to end up powerful
businessman, ultimately, it will show that how cherished they are (Ridley-Duff,and Bull, 2015).
Self-motivation: Effective and successful entrepreneurs are self-motivated and will
fulfill the targets by means of motivating themselves. Moreover, many people have ideas and
thoughts however, they can't put the ones for business improvement; but self-stimulated
entrepreneurs can take choices to apply their creative thoughts into their business operations.
Qualification: Education is the crucial factor for entrepreneur as it motivates them to
initiate and create new merchandise, this help them to introduce small company or a new
enterprise undertaking. However, the know-how obtained during that period and competencies
distinctly motivates the person to become successful businessperson.
Background: the family background, occupational heritage and job experience
motivates a person to become a successful entrepreneur. However, having business historical
past provides an effective direction to become powerful businessman.
Commitment: The entrepreneur commitment towards the achievement of goals help
them to remain motivated by developing an affection towards their business operations.
TASK 4
The background of entrepreneur motivates them build its own business and achieve the
desired objectives. However, Sir Richard Charles Nicholas Branson born on 18th July 1950 is an
English commercial enterprise rich person, investor, creator and philanthropist. Moreover,he
have introduced Virgin institution, which manages greater than 400 companies. Further,
Branson expressed his desire to come to be an entrepreneur at a young age from his mother who
was the successful entrepreneur of design wooden boxes and waste tissues thus, from the

background of entrepreneur the Branson establish its first business enterprise on the age of 16
turned into a magazine called student (Pestoff, and Hulgård,2016). However, in 1970, he had
introduced a mail-order record enterprise and opened a series of record outlets, Virgin statistics
later called Virgin Megastores in 1972. Moreover, Branson's Virgin brand had become
successful in the course of the 1980s, as he established Virgin Atlantic airline and multiplied the
Virgin record music label. Moreover, in 2004, he introduced spaceflight enterprise Virgin
Galactic, primarily based at Mojave Air and area Port, referred to for the Spaceship Two
suborbital space planes designed for space traveling.
Therefore, from the Richard Branson background it is being clear that the background of
entrepreneur fosters them to set a business enterprise and help them to achieve its desired goals.
Jamsetji tata was an Indian pioneer industrialist and a member of Parsi family. His father
was Nusserwanji Tata. Other family members were Dorabji Tata, Ratanji Tata, Naval tata, R.D.
Tata, J.R.D. Tata and Noel tata. Jamsetji tata embarked their journey of manufacturing and
trading from Gujrat.
Jamsetji tata is one of the leading entrepreneur who is the founder of the Tata group and
Tata steel which are one of the most leading company in terms of profitability and revenue.
Jamsetji tata is also known as “ Father of the Indian industry”.
Jamsetji tata was an ambitious and visionary endeavor who catapult India into one of the
leading industrialized countries. This lead to higher expansion and growth of the ?Tata industry
across various international boundaries.
CONCLUSION
This report briefly summarizes about different forms of entrepreneurship undertaking
namely; small business enterprise, Scalable business enterprise, large scale enterprise and social
enterprise and along with that it have highlighted about the typologies of entrepreneurship that is
linked to the types of entrepreneurship business like survival typology, lifestyle typology etc.
Further, the assignment have highlighted about the similarities and differences among the
different types of entrepreneurship ventures. On the other hand, it has framed about the impact
of micro and small organisation on the economy of UK. Furthermore, the assignment have
outlined about the importance of small business and startup for the development of social
economy. Moreover, the report have commented on the personality traits or entrepreneur that

will motivate them to perform its operators. Eventually the project have highlighted about the
background of Richard Branson that have fostered him to become an businessperson.

REFERENCES
Books and Journals