The Importance of Small Business and Entrepreneurship

This assignment delves into the importance of small businesses and entrepreneurship, highlighting their impact on economic growth. It discusses the typology of business, including micro, small, and medium enterprises (MSMEs), and explores their role in shaping the economy. The study also touches upon the social performance and responsibilities of entrepreneurship, as well as the climate for entrepreneurship in European countries. With a focus on data and statistics, this assignment provides valuable insights into the contribution of SMEs to economic development.

Entrepreneurship
and
small business
management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1. Different type of entrepreneurial venture and typology of entrepreneurship.......................1
P2. Similarities and differences between entrepreneurial ventures............................................3
M1. Demonstrate an understanding of entrepreneurship in both the public and corporate
sector. .........................................................................................................................................4
D1. Critically evaluate the scope, development and growth of entrepreneurial venture............5
TASK 2............................................................................................................................................5
P3. Assess the relevant data and statics of micro and small business impact on the economy.. 5
P4 importance of small businesses and business start-ups to the growth of social economy.....6
M2. Small, medium and large business make economy.............................................................8
D2. Small businesses are impact to different level of economy.................................................8
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
Entrepreneurship is the heart of every business and its operations. Every large company
started with small business setup which is led by entrepreneur. The entrepreneurship and small
business management is the sequence which is designed to build entrepreneurial skill step by
step and in proper way (Burns and Dewhurst, 2016). Study lays emphasis on the different type of
entrepreneurial venture and its typology. It is the way of conducting business whether it is small
and large. Study will show by similarities and differences between entrepreneurial venture. It
will highlight the data and statistics of macro and small business impact on the economy and also
importance and values of small business and business start-ups to growth of social economy.
Small business and business start ups are best and effective for social growth of economy.
TASK 1
P1. Different type of entrepreneurial venture and typology of entrepreneurship.
There are having a three types of entrepreneurial venture which are small, medium and
large scale business. That all have their own purpose, place and its conducts. That are as follows:
Small business
The Small business firm has very few employees in their business. That is less than 2 but
more than 10 employees. Their annual turnover is under 2 million (Burns, 2016). The main
purpose of this business is to earn something for support their living standard and also make
changes in their living and fulfil their basic needs. For example: talent plus is the small business
venture of the UK. This company provide placement services to their local peoples and give best
services. By these peoples are having the work. This provide effective services to customers and
try to satisfied them.
Medium business
That businesses are privately owned cooperation, partnership and sole proprietorship
firm. That have fewer employees and less annual revenue. That is more than 10 employees but
less than 50 employees and turnover is above 2 million. The main purpose of this business is to
improve their living standard by earn something. For example: verdant leisure is the medium
sized company of UK. This company provide services for holiday home by satisfying their local
clients and public.

Large business
Large sized business have 50-250 employees in their business and its turnover is above
10 million but less than 50 million. The main purpose of their business is growth in living as well
as wants to be successful business (Casson and Pavelin, 2016). For example: JP morgan is the
large sized business of the UK. This is a financial service's provider of UK. This provide best
and effective financial services to their local clients. That have purpose which is build effective
and winning team by providing financial helps to peoples.
Typology of entrepreneurial venture
It is refers the conducting the way of business. That have four type of typology of
business. That are as follows:
small business entrepreneurship
That business are independently owned for profit enterprise that not dominant in it field.
The goal of this business grow into the long term with profits and sustainability. That have
various kinds that are restaurant, grocery store, retail store and construction firms (Fayolle and
Gailly, 2015). That business are help to make effective and strong economy of country.
Scalable business entrepreneurship
That business are the silicon valley entrepreneurs and their investors and create new
potential market or dramatically changes an existing market by using technology. The goal of
this business generating significant wealth for founder and investors. Kind of business are IT
companies, medical and software company.
Large business entrepreneurship
It is established for finite life cycle. That company grows through make innovations in
their existing and create new product. Kind of this business are corporations like general electric
and motor business. That business are key of success and growth of the economy and its owners.
Social business entrepreneurship
That business build and innovate solutions for peoples and desire to make the world a
better place (Goss, 2015). Goal of this business is to maximizing impact in sustainable way. Kind
of this business are non profit, solving specific problems in developing countries.

P2. Similarities and differences between entrepreneurial ventures.
Every business and ventures has some similarities and various differences for run and
grow the business.
Basis Small Medium Large
Company details Talent plus is the small
sized business of the
UK.
Vardent leisure is the
medium sized
company at UK.
JP morgan is the large
sized business firm of
UK.
Aim Grow into the market
place fir long term
business that is
profitable and
sustainable.
Medium sized
business the goal to is
improved their living
life by earning profits
form their business.
Generating substantial
revenue and profit for
the company and its
shareholders.
Objective Opportunity to attend
every presentation and
provide best services
to customers within
days.
Objective is to make
effective and valuable
holiday home services
to customers
(Hechavarria and
et.al., 2019).
To provide the best
financial services to
customers and help to
them.
Vision To help to its clients
by giving them better
services.
To provide best
holiday services to
customers.
Aspire to be the best
and build great team
and winning culture.
Vision is help to reach
about the mission.
Mission Mission is to give
better services to
clients and employees
are express this talent
to mutual benefits of
To be a successful
boutique holiday park
operator and self
catering holidays.
To be the best
financial services
company. Mission is
help to fulfil the
business objectives.

the individuals.
Profit Small sized business
earns the profit Less
than 2 million.
Medium sized earn
profit from their
business is more than
2 million but less than
5 million.
That type of business
is earned profit from
more than 5 million
but less than 10
million (Mariotti and
Glackin, 2015).
Services That provide services
to clients and
customers by great
place to work
conference.
They provide services
to customers for
making effective and
wonderful holiday at
home.
That leading the
financial services and
make strategies for
improve their financial
performance.
M1. Demonstrate an understanding of entrepreneurship in both the public and corporate sector.
Understand the every business and entrepreneurship venture in both public and corporate.
Public sector
Public sector which is owned by privately but its aim is to provide services to their
customers. That consider the NHS that is national health services. That provide free services to
customer and their local peoples by solving their problems. This company give best free services
to customer. That tries to solve every problem of peoples and also try to give best services to
them. They provide health services to their local public. That firm is established by private
owner but it considers in public company (Mugler, 2017). Most of the firm are provides welfare
services NHS is considers in public company. That give free medical services to their local
peoples and try to solve all problems.
Corporate sector
Corporate sector firm is established for developing and earn profits from their businesses.
That includes like McDonald is the corporate sector firm. It is the large scale firm but considers
in corporate firm. They give the best quality and quantity of product. That established for earn
money from business and make some changes in peoples food life. That firm's have their own

purpose which is earned money from the business and do some changes in people life by giving
them foods changes.
D1. Critically evaluate the scope, development and growth of entrepreneurial venture.
Small business venture has the successful business in the Uk area. This business have
most of the scope and development area which is covered by owner. That business have
opportunity to develop their living life and also earn money by giving proper and best services
which is related to their product and business (Ribeiro-Soriano, 2017). In this business have
various ideas which is generated and create the changes in their living life concern. That generate
payroll taxes and jobs but they have not long term employees.
Medium business venture is the may includes the life style and any other business. That is
must ans important for doing changes in the businesses. They earn profits from their business
and \make effective changes in their lifestyle. They have scope for high growth and development
in their local market by introducing life style market. That help create peoples lives effective and
something different from each other. That business do growth for long run but in that business
have fewer chances to survive because its depends on customer needs and wants.
Large business venture is the growth chance less when business is start but it has growth
and development after business started. It is best and valuable business by making effective and
set up. It generating substantial revenue and profit for the company and its shareholders. Large
companies are significant employer in the economy. Its must and valuable for economy growth.
Their have high growth and development after step up business in their local market but business
have chance to face high losses from business also have not growth in that type of business.
TASK 2
P3. Assess the relevant data and statics of micro and small business impact on the economy.
Micro and small business has to effect the economy of UK. Government is analysis that
5.7 million private and small businesses are start in 2017 and 99.9% are small and micro
business (Data and statistics of SMEs, 2017). This represent an increase of 197000 business set
ups in 2000. SMEs companies are 60% of private sector employment in UK and combine
turnover for all that represented 51% of total private sector.

At the start of 2017, 1.3 million business are that have employed at least one other person
and 4.3 million non employing business. This means 76% has increase business employer
anyone apart from owner. Mos of the peoples are choosing self employing. Micro and small
business start ups are give imp[act on local economy of country. Around 60% of the total
business population were sole proprietorships 33% were companies.
This companies are doing real innovation and changes in the UK. The government same
prices for its work encouraging small business growth, but taxes are charges on that highly. That
affect very badly on owner of small business. That give negative impact on the UK economy.
That also reflect to business and its employees.
P4 importance of small businesses and business start-ups to the growth of social economy
Small business play an important role in economy because they can easily adapt
marketplace conditions that are rapidly changing. They generally focus on services which they
have to provide to customers. Small business and start-ups business are important in the success
of the economy (Saleem, 2017). They are responsible for the growth because they provide local
needs of customers and people of the community like financial consultancy, emergency plumber,
Illustration 1: data of SMEs
(Source: Data and statistics of SMEs, 2017)

hairdressers etc. Today most of the UK businesses are small and start-ups which provides
employment to their citizen. There are some qualities that small and start-ups businesses posses:
Develop personal relationship: Small businesses are known and important because it
helps in building personal relationship with customers, suppliers and employees. It focuses on
person-to-person interaction in order to make good relationship at workplace.
Innovation: The another major importance of small businesses and start-ups businesses
are it brings and develop new ideas for making innovative products in order to satisfy their
customers.
Flexibility to problems: These businesses have a little chain and hierarchy of command
that help them in solving the problems in better way. As compared to large business, small and
start-ups businesses have flexibility to operate and establish procedures and at the time of
changes they can easily change their procedures (Scarborough, 2016).
Employ local workers: There is major role and contribution to local economies are
small business and start-ups business. It helps in providing employment by bringing new ideas,
innovation in the community. It always try to attract those people who have talent to invent new
products and have the ability to implement new solutions for existing business and ideas. Many
of the larger corporation also benefits from small businesses in the same local community
because they depend on small business for the completion of several business activities and
functions through outsourcing.
Contribute local government with taxes: Local businesses generates high amount of
revenue. By generating high level of revenue, business pay higher taxes that include local
property tax. The money which are generated by taxes are then used for fire departments, local
police and schools. By taking and collecting sales tax it also impacts on local economy growth.
Adapt changing climates: Small businesses and start-ups have the ability to adapt
changing economic climates. It can better understand the needs of the customers and are
customer oriented (Storey, 2016). It results them that their customers remain loyal towards small
businesses in the midst of economic crisis. This loyalty makes small businesses able to float
during difficult situations that can help to strengthen local or social economies. Theses
businesses are often accumulate less revenue comparatively larger corporation that means they
may have fewer chances to lose in times of economic crisis.

M2. Small, medium and large business make economy.
Small, medium and large sized businesses are make the economy and give best effect
economy. That businesses are make the economy by paying many taxes. Taxes are help to make
effective and strong economy of UK. Small businesses are continuously increased day to day
changes. That help to make effective and strong. That business are help to make strong economy.
Economy of country is strong and effective then every business are reach to their success and
take most of advantage.
Large businesses are most of the paying and calculating the effect on the economy
growth. That business are growth high after set up business. Large business attract 40%
employees of the local area peoples and that 49% turnover early. That revenue best and give
effective impact on economy (Walsh and Cunningham, 2016). That give impact on local
economy very effective because that pays high rate of taxes to their government department.
That affect to highly and positive.
That businesses are help to make effective and best economy of the UK and every
country. Economy is also affected to business and its employees and also to growth of company.
However, when economy is good and best then its help to hire employees for firm. Best and
good economy is also impact to businesses and its growth. Furthermore, small, medium and
large business are help to make good economy of country and goods and best economy help to
make and give positive impact on business. Both are affect to each other in negative and in
positive way.
D2. Small businesses are impact to different level of economy.
Small business give positive impact on local level economy because it is the important
part of the economy growth. That gives positive impact on the every level of economy like
regional, national and international growth. That help to make effective and strong economy of
the country. According to data collection, now days small business are growth and increase at
local area. Small businesses are had purpose to earn money for improve their living life. Small
businesses are growth in positive way it will help to make effective and best impact and local
economy growth when local economy is strong then regional is also good because all are linked
to each other at different levels of economy (Walsh and Cunningham, 2016).

It is also given positive impact on national economy because of it working are together at
every level of economy. It is the best and wonderful. However, when small business is developed
their business which level of growth then it will give positive impact on national economy.
Meanwhile, when small business is give positive and help to make strong local, regional and
national economy then international economy is also good and positive. All economies are linked
to each other and plays very effective role in business.
Small business is increase day to day in the economy area they all give positive and
negative impact on all economy level. However, when small business is not success then it will
surely give negative impact on all economy.
CONCLUSION
From the above study it had been concluded that the to be a successful business their has
required an entrepreneurship and innovation. This report provided overview of entrepreneurship
and innovation related to sustainable business. Study had been covered by various types of
entrepreneurial venture and its typology. Small, medium and large businesses that are different
type of entrepreneurial venture and that has their conducting the ways of business this called
typology of business. All business has similarities and difference of working. That have their
vision, mission and objective its supported to cover aims and reached towards the growth. Study
has discussed on data and statistics of micro and small business that helped to make strong
economy of country. Importance and value of small business and its growth. Small business has
affected to business and its growth. That helped for moving and making good and strong
economy of country.

REFERENCES
Books and journals
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Casson, M. C. and Pavelin, S., 2016. The social performance and responsibilities of
entrepreneurship. Business & Society. 55(1). pp.11-13.
Dana, L.P., 2016. ENTREPRENEURSHIP & SMALL BUSINESS.
Fayolle, A. and Gailly, B., 2015. The impact of entrepreneurship education on entrepreneurial
attitudes and intention: Hysteresis and persistence. Journal of small business
management. 53(1), pp.75-93.
Goss, D., 2015. Small Business and Society (Routledge Revivals). Routledge.
Hechavarria, D.and et.al., 2019. High‐Growth Women’s Entrepreneurship: Fueling Social and
Economic Development. Journal of Small Business Management. 57(1). pp.5-13.
Mariotti, S. and Glackin, C., 2015. Entrepreneurship & small business management. Pearson.
Mugler, J., 2017. The climate for entrepreneurship in European countries in transition. The
blackwell handbook of entrepreneurship. pp.150-175.
Ribeiro-Soriano, D., 2017. Small business and entrepreneurship: their role in economic and
social development.
Saleem, M. A., 2017. The impact of socio-economic factors on small business success.
Geografia-Malaysian Journal of society and space. 8(1).
Scarborough, N. M., 2016. Essentials of entrepreneurship and small business management.
Pearson.
Staniewski, M. W., 2016. The contribution of business experience and knowledge to successful
entrepreneurship. Journal of Business Research. 69(11). pp.5147-5152.
Storey, D. J., 2016. Entrepreneurship and new firm. Routledge.
Walsh, G. S. and Cunningham, J. A., 2016. Business failure and entrepreneurship: Emergence,
evolution and future research. Foundations and Trends® in Entrepreneurship. 12(3).
pp.163-285.

ONLINE
Data and statistics of SMEs. 2017. [online]. Available thorough:
<https://www.cloudaccountant.co.uk/blog/2017/12/sme-business-numbers-
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