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Impact of Micro and Small Business on Economy

   

Added on  2023-02-01

25 Pages6523 Words20 Views
FinanceLeadership ManagementEntrepreneurshipProfessional DevelopmentDesign and CreativityPolitical Science
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Entrepreneurial and
Small Business
Impact of Micro and Small Business on Economy_1

EXECUTIVE SUMMARY
Entrepreneur and small business management plays a vital role in business growth and
development as they seeks for constant innovation in order to gain competitive advantage. This
report covers various types of entrepreneurial venture and its relation with its typology, impact of
micro and small business on UK economy. Finally, how entrepreneur are different from
managers with the help of examples from local, social and international successful entrepreneur.
Impact of Micro and Small Business on Economy_2

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1 Types of Entrepreneurial venture and their relationship with typology of entrepreneurship 4
P2 Similarities and difference between Entrepreneurial venture ........................................7
TASK 2............................................................................................................................................9
P3 Impact of micro and small business on an economy.........................................................9
P4 Importance of small business and startup companies for growth of social economy.....13
TASK 3..........................................................................................................................................15
P5 Characteristics, traits and skills of successful entrepreneur and differentiate them with
business manager..................................................................................................................15
P6 Entrepreneurial personality reflect their motivation and mindset ..................................19
TASK 4..........................................................................................................................................20
P7 Background and experience can hinder and foster entrepreneurship .............................20
CONCLUSION .............................................................................................................................22
REFERNCES ................................................................................................................................23
Impact of Micro and Small Business on Economy_3

INTRODUCTION
An entrepreneur is an respective who has an ability or capability to set up, organize,
manages an entire operation or function of an enterprise as well as assumes all risks and reward.
Moreover, entrepreneur is regarded as an essential tool for economic development or growth as
they take initiative to identify or analyses business opportunity and adapts innovative technology
which leads them to attain high profitability ratio (Saleem, 2017). Likewise, entrepreneurship is
the act of entrepreneur who establishes and run a business like small business with an aim of
generating maximization of profit with an optimum utilization of resources. Along with this, one
of their main function which makes them differ from business manager is function of innovation
and risk bearing as they attempt to recognize business opportunities and bears all risk through
communicative and management skills. This report covers several types of entrepreneurial
venture and their relationship with typology of entrepreneurship, similarities and differences
between entrepreneurial ventures. Moreover, influence of micro and small business on an
economy, to the growth of social importance of small business and startup to the growth of social
economy. Finally determination of characteristic, trait and skills of successful entrepreneur and
distinguish them from managers.
TASK 1
P1 Types of Entrepreneurial venture and their relationship with typology of
entrepreneurship
Entrepreneur
It is a person who sets up the business who see possibilities and solutions by
implementing effective business decisions with an aim of generating profit. Along with this, an
entrepreneur examines or evaluate the current and emerging trends of market and come up with
innovative or creative product which enable them to meet out the customer need or demand as
well as attain high proficiency.
Entrepreneurship: It is a process of creating an innovative or creative establishment for the
purpose of gain or growth under condition of risk or uncertainty.
Enterprise
Impact of Micro and Small Business on Economy_4

It is a formation of two or more individuals who come together with an aim of generating
profit with optimum utilization of resources.
Entrepreneurial Venture
They are heed as catalyst of economical enrichment and the driving force which aide’s
enhancement and evolution as well as restricting wealth and economic resources. Furthermore, it
mainly concentrates on placing invention and opportunism at its heart to design economic or
social value (). Along with this, each entrepreneurial venture differ in aspect of their size, scope,
purpose and they work towards to achieve organizational pre -determine goal. However, each
entrepreneurial venture is classified into various types like small, medium, large companies and
many more. The different types of entrepreneurial venture is described below:
Small business entrepreneurship: It is an severally owned and direct for net income
enterprise which is not ascendant in this field as well as it contains less numbers of employees to
achieve organizational goal or objective (Types of Entrepreneurship. 2019). Along with this, the
gross generation are not such and these company ceaselessly centering on acquiring much
customer and development of its product and work. Moreover, it is also operated by family
associate and with friends as spouse and they also provide advanced services and develop
exponential function.
Scalable Startup Entrepreneurship: It is categorized as high growth company as it
signifies as a young and innovation based firms who has the potentiality to make a new market
change an existing market through copyrighted, application supported products and services.
Along with this, these organizations aspect for gleaming mind for concern and they incline to
establish scalable business model and they contributes their best part for economic development
by providing enormous job opportunities (Yan and Yan, 2016).
Large Company: It contains bounded procedure as it mainly focusing on render new
products or services to consumers for sustainability of business. However, choices of customers
and trends eventually differs along with competition, legislation which forced large firms in
riotous innovation and develops fresh commodity for new marketplace (Burns, 2016).
Impact of Micro and Small Business on Economy_5

Social entrepreneurship: These business are mainly established to built an innovative
solutions in order to make the world a better place as their main goal is to maximizing social
impact in a sustainable way. It involves those business who solve community or societies health
issues, improves life standard and safeguard their rights for bringing high level of satisfaction.
Typology of entrepreneurship
The various types of typology of entrepreneur within an industry is given below:
Survival Firms: The basic goal of this venture activity is to survive and meet the
venture's financial obligations. Many startup ventures engage in survival entrepreneurship where
their long term goal is to stay in business and thus they are characterized by cutting cost, laying
off employees, mindset of preserving present state of affairs etc. in order to gain competitive
advantages in an innovative and creative manner (Amato and et. al., 2017)).
Lifestyle Firms: These firms are formed to carry out the activity in which an owner of the
company enjoys or secure a stage of activities that constantly generates revenue at same pace.
Moreover, in this firm an entrepreneur seeks to gain more life reward by providing effective
service to people and have a passion for what they are doing. For e. g. Lifestyle entrepreneur
mostly found in hospitality or tourism sector, where owners only constrained to provide
hospitality service to customers with less motivated to the growth.
Managed growth Firms: These entrepreneur are opposite form of lifestyle firm as they
are created by genuine entrepreneurs in which their main aim is to grow further and multiply
profit. Furthermore, in these firm entrepreneurs are more concentrate on marketplace having
potential to provide opportunities in the form of product selling and services acquiring in order to
manage or attain sustainability profit among industry. For e. g. Tesco is well known for its
flexibility as they always make use of all possible platforms which lead them to attain high
profitability ratio.
Aggressive growth Firms: They are considered as those types of firms who always seeks
for an platform to enhance their productivity by applying novel ideas and aggressive marketing
tactics. Moreover, this growth firms are more eye – catching to potential investors, such as
investors are eager to invest in their business venture capital investment, possible mergers and
acquisitions, private equity transactions or initial public offerings. Therefore, it is conformed that
Impact of Micro and Small Business on Economy_6

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