Importance of Small Businesses and Start-ups in Social Economy

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P1 Explanation of different types of entrepreneurial ventures and their interrelation with
typologies of entrepreneurship.....................................................................................................1
P2 Differences and similarities between different types of entrepreneurial ventures.................3
Task 2...............................................................................................................................................5
P3. The impact of micro and small businesses on the economy with relevant data and
statistics........................................................................................................................................5
P4 Explain the importance of small businesses and business start-ups to the growth of the
social economy.............................................................................................................................6
Task 3...............................................................................................................................................8
P5 Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers. ...........................................................................................8
P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mindset................................................................................................................................10
Task 4 ............................................................................................................................................12
P7 Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship.........................................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCE ................................................................................................................................15

INTRODUCTION
Entrepreneurship is the activity and process of establishing a business that brings new
ideas and thoughts in their organisation in order to increase organisational productivity. This is
important for management to analyse the business situation and formulate the plans which can be
used to operate the business and increase the profitability (Litau, 2018). A person or individual
who creates new business by using their innovative skills and experience in order to grow the
business and increase organisational productivity effectively is consider as entrepreneur. This
person is playing important role who manages all activities and organise their function
accurately. This report is based on entrepreneurship and small business that are runs in business
market and increases the performance. This report covers different types of entrepreneurial
venture and its relation to typology, similarities and difference between entrepreneurial ventures,
impacts of small business on economy, key aspects of entrepreneurial mindset and environment
that foster and hinder entrepreneurship.
Task 1
P1 Explanation of different types of entrepreneurial ventures and their interrelation with
typologies of entrepreneurship
Entrepreneur is a person who has abilities to take risk and start a new venture. The
passion to do something and investing time leads a person to be an entrepreneur. It has to be
clear what products or services will be provided by the entrepreneur and to whom these products
and services will be sold. The self-confidence and creativity level of a person helps in becoming
a good entrepreneur (Landström and Harirchi, 2018).
Entrepreneurship is a process of designing, introducing and running a new business
venture, which will initially be small in size and has capacity to grow along with any type of
risks to make profits. The income level and tolerance power of taking risk are the factors which
influence entrepreneurial success of entrepreneur of a business.
Different Types of entrepreneurial ventures-
 Small entrepreneurial ventures- These ventures are very common in industries because
people who run these ventures are most likely in making profit that will support their
family members and give them modest life. Examples of small entrepreneurial ventures
are the local grocery stores in markets, hair stylers, boutiques, plumbers, and all those
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people who owns and runs their own businesses (Gimmon, Yitshaki and Hantman,
2018).
 Large entrepreneurial ventures- The companies which have a set of innovative
products and aims at maximization of productivity with competitive advantages are know
as large entrepreneurial ventures. Companies like Microsoft, Google, The White
Company are some of the example which fall in this kind of entrepreneurship (Goldsby
and et.al., 2018).
 Social entrepreneurial ventures- The organizations which mainly focuses and works on
social or environmental problems in innovation ways are social entrepreneurial ventures.
A person who is willing to take risk and efforts for creating positive changes in society
through his incentive is a social entrepreneur. The different models of social enterprises
are leveraged non-profit, hybrid non-profit and social business ventures. The example of
such ventures are Amey, Madlug CIC, Point and Sandwick Trust, Community Dental
services CIC.
 Scalable entrepreneurial ventures- The organisations which start a venture on the basis
of unique ideas for the things which are missing the market are scalable entrepreneurial
ventures. For such ventures great working skills, education and experience is required.
Facebook, Instagram, Uber are some examples of scalable ventures (Farhat and et.al.,
2018).
Relationship of entrepreneurial ventures with typologies of entrepreneurship
 Lifestyle typology- The entrepreneur who focuses more towards the rewards which can
be provided to peoples life to give them feeling of enjoyment. Lifestyle typology has
relation which large and scalable entrepreneurial ventures. Large enterprises like The
White Company focuses on lifestyle of consumers and provide them the quality products
and services according to there desires. Scalable enterprises styles there products without
being hampered by structure and resources to increase production by focusing on the
lifestyles of target consumers.
 Growth typology- The entrepreneur who's main goal is to grow in market and expand
the business has the growth typology for its enterprise. Growth typology has relation
with small and social entrepreneurial ventures. Although small enterprises are operated
for making profits which are operated within the family members and after a certain time
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