Impact of SME's on Economy

Entrepreneurship
&
Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 : Different types of Entrepreneurial ventures and Topology of entrepreneurship............1
P2 : Differences and Similarities between Entrepreneurial Ventures...................................2
TASK 2............................................................................................................................................4
P3: Impact of SME's on economy..........................................................................................4
P4 : Importance of small businesses and business start-ups to the growth of the social
economy.................................................................................................................................6
TASK 3............................................................................................................................................7
P5 Characteristic, Traits and Skills of successful entrepreneurs............................................7
P6 Entrepreneurial Motivation And Mind-set........................................................................9
TASK 4.........................................................................................................................................10
P7 Background and experience that foster entrepreneurship...............................................10
Conclusion.....................................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneurship is an activity that deals with initiative of starting up a business with a
motive to earn profit. Every small business which turns into a large organisation is started by an
entrepreneur, who possess a skill set and knowledge to meet volatile needs of any business. They
convert their idea into profitable business as a product or service by analysing the opportunities
in the market. Small business management requires an understanding of how to manage
resources, formation & analysis of projects reports, financial reports etc. Initially all these
functions are performed by the entrepreneurs as they cannot recruit specialised people for every
activity because large capital is not employed in the business (Burns, 2016). This report creates
an understanding of basics of entrepreneurship and their topologies, various entrepreneurial
ventures and their impact on economy, also the skill set and traits they need to have in order to
ensure survival, success & growth of the business.
TASK 1
P1 : Different types of Entrepreneurial ventures and Topology of entrepreneurship
Entrepreneurial Ventures
Entrepreneurial ventures focuses on new & innovative offerings smartly which create
distinction between small business who deals with known products due to which entrepreneurial
ventures are more exposed to risk.
Different types of entrepreneurial ventures are
1. Small Business Entrepreneurial venture : A small business venture are independently
operated and owned by a person, who offers generalised products such as groceries,
services of carpenters, plumbers etc. Their aim of doing business is to earn livings and
make a profit but not to be leader of the market.
2. Scalable Startup Entrepreneurial venture : These are the ventures where entrepreneur
believes that their idea can change the world. For which they approach venture capitalist
to invest in their venture and look for such a business model which can lead to success of
the business.
3. Large Company Entrepreneurial venture : Large company entrepreneurial venture
includes sustaining through innovation, offering new products through diversification &
expansion. In these venture they have to keep an eye on the external environment so that
1