Entrepreneurship and Small Business Management: Types, Impact on Economy

Entrepreneurship and
small business
management

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1 .................................................................................................................................................1
P1 Different types of entrepreneurial ventures and how they relate to different types of
typology of entrepreneurship .................................................................................................1
P2 Similarities and differences between entrepreneurial ventures ........................................4
LO2 .................................................................................................................................................6
P3 Interpret relevant data and statistics to illustrate micro and small businesses impact on the
economy ................................................................................................................................6
P4 Importance of small business start-ups to a growth of social economy............................8
LO3 .................................................................................................................................................9
P5 Determine characteristic traits and skills of successful entrepreneurs that differentiate from
business managers..................................................................................................................9
P6 Assess entrepreneurial personality reflect entrepreneurial motivation and mind set .....12
LO4 ...............................................................................................................................................13
P7 How background and experience can hinder or foster entrepreneurship........................13
CONCLUSION .............................................................................................................................14
REFERENCES .............................................................................................................................14

INTRODUCTION
Entrepreneurship and small business management refers to a sequence of offering a
unique and creative learning experience to an individual who aspire to start their business to
maintain their standard of living in the society. It is an activity which is useful in setting up a
enterprise or businesses that take monetary risk in the hope of earning more profits. This report is
based on two brothers who are successful entrepreneur in UK. This report consist the range of
venture types and its relation to different typology. And suggest similarities and differences
between different entrepreneurial ventures. Further this report analyse the relevant data and
statistics on small and micro business and their impact on the country's economy. Furthermore it
explains the importance and growth of start-ups in the social economy. In this determine the
characteristic, traits and skills of entrepreneurs and how it different from other managers. At last
how they motivates to become a entrepreneurial and how their background and experience can
hinder and foster entrepreneurship (Ramadani and et. al., 2015).
LO1
P1 Different types of entrepreneurial ventures and how they relate to different types of typology
of entrepreneurship
Entrepreneurship
It is an activity and process of setting up a business enterprise that is capable of taking the
financial and monetary risk in the hope that they earn more profits. It provides a new
opportunities and encouraged a person on a grand scale. It refers to designing, running and
launching a new business that is initially a small business. An individual who create business are
called entrepreneurs. This term is not limited to founders of business firms, but it can be applied
to the operators of family-owned firms, franchisees and owners managers who have operators of
existing firms. It gives new opportunities to an individual to implement their new ideas and
thoughts and operated more more profits (Burns, 2016Ratten, 2016).
Entrepreneurial venture
It refers to a business enterprise that place innovation, creativity and opportunism as its
hearts in order to maintain social and economic value. In this a person or an individual are not
focus on the size and structure of an organisation but they mainly focus on that idea which make
a entrepreneurial ventures unique. It includes small, medium and large ventures and they always
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ready to accept challenge and acquire new business knowledge. It includes various types of
entrepreneurial ventures that are described below. Small business enterprise – It refers to that enterprise that is privately owned and
operated with a limited number of employees and contains low volume of sales. It
generally includes sole proprietorship and partnerships firm. It can be classified on the
basis of sales, profits and assets. These type of enterprise teach the basic principle of
business ethics and entrepreneurship. Examples are hair- salon, yoga studios, boutiques,
carpenters, plumbers, groceries etc. This types of entrepreneurs take advantages of
resources from small business development centre. They bare profits to make their living
and to support their families and friends and they are funded through small business
loans, family members and friends. This type of business less attract the venture capitalist
(Ratten and Dana, 2015). Large business enterprise – It refers to that type of venture that give the opportunities
and ideas for the advancements within the large organisation or already existing firms.
The development and growth of this type of companies seen later on in the life of the
business enterprise. Their main motive is to earn more and more profits and increase the
growth and share of the company. This venture gives the employment to number of
peoples who are unemployed in the society. Large company seen as a adaption to
environment expansions. Often, this ventures are partnering with or purchase new
innovative companies. For examples- Microsoft, google and Samsung. Scaleable start-up enterprise- It refers to that business enterprise that defines a business
model where enterprise is started with unique idea and creative thoughts. This includes
everything that comes under the creating and launching a business. This type of
entrepreneurship have great experience and knowledge of work that help in earning
profitability. It started with a vision that help in changes the world and they raise funds
from venture capitalist and employing efficient employees. Examples are Instagram,
online shopping for electronics, Facebook etc.
 Social enterprise- It refers to an approach by group of people, individuals, and many
start-up companies that help, develop, raise money and execute solutions to problem that
is related to society, culture and environment. They are basically non-profits organisation
but some of them are based on profits with welfare of society. Their only purpose is to
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