Importance of Small Businesses in Social Economy

Coursework
Entrepreneurship and Small Business Management
Session: September 2019
INTRODUCTION...........................................................................................................................3
Different types of entrepreneurial ventures and explain how they relate to the typology of
entrepreneurship.....................................................................................................................3
Interpret and assess relevant data and statistics to illustrate how micro and small business
impact on the economy...........................................................................................................5
Explain the importance of small businesses and business starts-ups to the growth of social
economy.................................................................................................................................6
Characteristic traits and skills of successful entrepreneurs that differentiate them from other
business managers..................................................................................................................8

Department of Business Entrepreneurship and Small Business Management
Assessing aspects of the entrepreneurial aspects personality reflect entrepreneurial motivation
and mindset.............................................................................................................................9
How background and experience can hinder or foster entrepreneurship.............................10
Conclusion.....................................................................................................................................11
REFERENCES..............................................................................................................................12
Student ID: 16655 Page 2 of 17

Department of Business Entrepreneurship and Small Business Management
INTRODUCTION
Entrepreneurship is the process of designing, launching and running a new business, which is
often initially a small business. The people who create these businesses are called entrepreneur.
Small business management is a process entrepreneurs use when running
their business operations. Small business management often requires entrepreneurs to have a
wide variety of knowledge or understanding relating to business topics. This report covers
questions such as types of entrepreneurs and link with typology, differentiation between
entrepreneurial ventures and small business, personality and motivational aspects of
entrepreneur, characteristics and their skills and how does a start up or small scale enterprise help
the economy.
Student ID: 16655 Page 3 of 17

Department of Business Entrepreneurship and Small Business Management
Different types of entrepreneurial ventures and explain how they relate to the typology of
entrepreneurship.
Small business Entrepreneurship
In today’s market majority of businesses are operating as a small enterprise. In UK 80 per cent of
the companies are operating as a small enterprise with the power of employing 50 per cent of the
people who are workers from private sectors. Small business ventures are those enterprises in
which the number of employees which are appointed are from 0-5. Business of this nature
usually fails to gain the attention of venture capital and to initiate these kinds of business loan is
taken from friends, family or personal loan from banks. Electricians, carpenters, consultants,
plumbers, hairdressers etc. comes into these type of businesses. Managerial firms in its
traditional form is the practice of starting new organizations, most commonly new businesses.
Small business ventures are mainly funded by families and friends as the investment in these
sectors are low.
Scalable Start up Entrepreneurship
When an entrepreneur believes and has full confidence that his confidence can change the vision
then they initiate a business and that is known as scalable start up entrepreneurship. They collect
their funds with the help of venture capitalists and they recruit the best employees they can work
with. Finding this nature of business model is their ultimate goal. Then the next step is to allocate
the funds which was taken from venture capitalist. Due to the factor of risk and return of
outcomes these types of businesses are not much in the market. For instance Face book,
WhatsApp, Instagram or any other online platforms which are successful comes under this type
of business. This type of venture is also related to its same typology that is scalable typology
they look for a repeatable business. It takes away the share of huge companies by entering into a
large market.
Small and micro business helps the company contribute in the economy by increasing growth
and innovation in which they are serving. They also provide the opportunities for employment
which are not provided by the companies who operate on a large scale.
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