Small Business: Needs and Growth

This assignment delves into the defining features of small businesses, emphasizing their diverse product offerings and profit-driven nature. It highlights the crucial role they play in local economic development by directly meeting customer product needs. The text also draws upon various academic sources to provide insights into the challenges and opportunities faced by small enterprises.

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P 1 Different types of entrepreneurial ventures and relate typology ........................................1
P2: Similarities and differences between entrepreneurial ventures............................................3
P3 Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on the economy...............................................................................................................4
P4 Importance of small businesses ............................................................................................6
P5 characteristic traits and skills of Thomas Edison different from other business managers.
.....................................................................................................................................................6
P.6 Entrepreneurial personality reflecting entrepreneurial motivation and mindset...................8
P.7 Background and experience of entrepreneur........................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Entrepreneur is person who focus on innovation for business development. In this report
is to be focus on different types of entrepreneurial venture is used to increase overall market
share. This report is based on Edison's GE group. The company is basically located in United
Kingdom and provide different kind of services in introduce new technology. Further, it covered
successful Entrepreneur Thomas Eddison (Ayandibu, 2017). In addition, relevant data and
statistics to micro and small businesses impact on the economy. In addition, new business
concern start-up and development of economic condition. Entrepreneur is a person who believe
in overall invention is utile for general development in securities industry share and shuffle some
natural event in development rate.
TASK 1
P 1 Different types of entrepreneurial ventures and relate typology
Entrepreneurship ventures are not just only related to the business, it also can be under
the family firm or can be under any corporate organization. Sometimes it can be a social
enterprise as well. Different types of entrepreneurship ventures can be related with the typology
Thomas Eddison of entrepreneurship venture (Carter, 2015). The first level for the analysis of
different entrepreneurship ventures starts with the acknowledged of whether it is under any
present organization or owned by the individual or a team individual who are independent of any
organization, which means they can be divided as:
 Big Corporate Entrepreneurship
 Independent Entrepreneurship
 Start up Entrepreneurship
 Social Entrepreneurship
Big Corporate Entrepreneurship
It is under any Big organization As every entrepreneurship venture is purely based on
strategies they can be further classified on the basis of the making of strategy which can be at the
four types of level :
 Enterprise Level
 Corporate Level
 Business Level
 Functional Level.
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Here they have different roles , the Thomas Eddison enterprise level determines the reason for
the existence of any enterprise, the corporate level deals with the problems or the issues for
deciding what type of business activities the enterprise is indulged in;the business level deals
with the problems related to compete in the market; the functional level determines the activities
which deals with the problems in the functioning of any enterprise (Ciampi, 2013). For example
there are many companies like Microsoft, Apple etc. which are private companies.
Independent Entrepreneurship
Independent Entrepreneurship is owned by individual or a team of individuals, which
can be further categorised on the basis of the :
 growth of potential
 income substitution of any enterprise.
While entrepreneurial venture is potentially growing there is a need to know whether it is
 Need driven independent venture
 technology driven independent venture
The need driven potential growth determines the reason why an enterprise is at the market place,
where the owner finds out the gaps which are needed to be filled to take an appropriate place in
the market; the owner may not be much aware of the latest technology or the product but knows
what is the requirement in the market and knows how to fulfil it successfully. Whereas
technologically driven determines the desire of providing the state-of-the-art technology , they
are only aware of the technological need in the market and seeks for the fulfilment of the need by
providing the latest technology to the customers (Cowling, 2015). The Edison's GE group is an
Independent Entrepreneurship runs by the team of individual who are independent of any present
organisation. It is an American Conglomerate Organisation which has diversified products and is
a profit seeking organisational group is the need driven independent venture which full fills the
product needs of the customers. There can be many examples such as Social Media Platforms
like Hike Messenger,Facebook etc.
Start-up Entrepreneurship
These are the newly introduced business enterprise in the market offering innovative
product or services and is ready to face the competition with the competitors who were already
established in the market. The main motives of these entrepreneurship venture is to retain
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themselves in the market and along with that grow in the market.There are many start-ups
emerging so vigorously such as Swiggy ,Zomato etc.
Social Entrepreneurship
This type of entrepreneurship venture emerges to raise funds for the noble causes. They
are totally non-profitable ventures or earning profit to give back to the society (Cunningham,
2014). These ventures combine the business and social issues in such a way that it benefits the
society and the people who are related to it. Social Entrepreneurship can include many NGOs
and other CSR projects run by big firms such as GOONJ by Proctor and Gamble to provide
benefit to the society.
P2: Similarities and differences between entrepreneurial ventures.
Differences
Following can be the basis for the major difference in the entrepreneurial ventures
Ownership :
It can be owned by government which is a public enterprise like LIC whereas as if it is
Own by an individual or team of individual it is a private enterprise like Thomas Eddison
Offerings :
Entrepreneurial ventures can be differentiated on the basis of the offerings they offer
whether it's a product or a service for example FMCG companies provides products which are
tangible whereas restaurant provides services which are intangible.
Investment :
Amount of investment can also differentiate the entrepreneurial ventures such as small
scale and large scale enterprises. Small Scale enterprises starts with small capital whereas large
scale enterprises starts with large capital. Local enterprises can be small scale where as globally
recognised enterprises can be large scale.
Establishment:
Establishment timing also differentiate the entrepreneurial ventures such as newly started
enterprises are start-ups whereas the companies which were started long ago are well established
enterprises such as Zomato can be considered as a new start-up whereas food panda is
established one.
Aim and Goals:
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Some entrepreneurial ventures have a aim to earn profit ,which are profit seeking
enterprises where as some has a aim of providing benefits to the society which are considered as
social enterprises (Henrekson, 2014). For example non profit seeking can be NGOs whereas
profit seeking can be multinational companies.
Similarities
Every entrepreneurial ventures have some similarities which are
Targeting Customers:
Every entrepreneurial venture segments and targets the customer for their offerings which
can be product or a service .Customer's needs and desired are to be fulfilled by those products or
services.
Profit seeking:
Mostly entrepreneurial ventures are profit seeking and profit earning enterprises ,there
aim is to gain profit to the maximum extent. Thomas Eddison Except some social enterprises
whose aim is to benefit the society.
Innovation:
Innovation is the foundation of every enterprise which makes them unique in the market
and able to compete with the competitors. Innovative offerings and also innovation in the
promotion of the offerings has an important role in every enterprise.
P3 Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on the economy
Small businesses play a very important role in the economy like creating job, sending
products, providing good and service and generating wealth . 99.7 percentage small scale
businesses running now days and 99.7 percentage firms their and 29.6 million paid employee in
businesses and 19000 are small businesses on 2014. . Thomas Eddison is focus on Small scale
businesses contributing in our economy in three ways such as giving a opportunity to achieve
financial independence , growth, encouraging innovations and employment opportunity. The
propose of small scale businesses is not only generating capital individually.
Small business also focus on vital success in economy. Small scale businesses is not easy
its very challenging but definitely empowering. Small scale businesses help to increase the
employment and help to improve the conditions of economy . Small scale businesses help in
gross domestic product (Kim, 2013). It help to controverting the total industrial outputs and
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exports. The main objective of small scale businesses providing more employment with less
investment. It help to the development of economy and improving the condition of rural area
(Denscombe, 2014). Reducing the imbalances of the economy and proper utilisation of resource
and reduce unexploited resources of the country. To improve the living standard of the people
and solving unemployment problems.
Small scale businesses adopt new technology and main objectives to providing a better
quality product at a lower price. Small scale enterprise providing housing hold services in rural
area and town population is not more than 50000 its fixed investment like plant and machine is
not more than 25 lake. Small scale industry is house hold industry it develop a skill and
technique .
Ownership of a small scale businesses are taken by one individual or sole proprietorships
and it can be a partnerships also. Small scale businesses play a important role of economy in
many ways. 60 to 70 percent innovations come in India from SSIS.small scale industry provide
employment. Small scale industry providing better resources and developing weaker sections of
our economy. Most of the people our economy improve their skill through small scale businesses
(). And learn new things like how to run a business, how to deal with others, how to generate
capital.
Small scale businesses help main motive to earn profit within development in our
economy and providing employment. Small scale industries contributing the 40% of gross
industrial value added and 45% its total export contribution in export and import and 95% total
accounting industrial units in country (Osotimehin and et.al., 2012). For example: Thomas
Eddison is focus on small scale company in UK ruby receptionists small scale company its
employees 95 and revenue US . 7.8 million. It is an American Conglomerate Organisation
which has diversified products and is a profit seeking organisational group is the need driven
independent venture which full fills the product needs of the customers.
P4 Importance of small businesses
Small scale businesses is an important part of the economic which influence the growth
rate of the economy and structure and quality of the product and maintaining the stability of the
economy. For example, improving the poor agriculture commodity prices, rising the input cost
with low productivity, etc. It also helps to improving the economic conditions. It also play a
significant role in the developing and designing new policies in the rural areas. It providing a
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new opportunity to developing technology in economy. Small scale business Providing a better
living standard of the people(Bae, 2014). So its important for growth of the economy. Small
scale businesses generate a new innovative ideas related to small businesses like, how to start a
small scale businesses and how to access. It also help to build-up a relationships with other
countries for example, import and export in businesses and maintaining industrial relationships.
Small scale businesses contributing the global growth of the economy. It helps to stimulating the
economic growth through providing the employment of the economy .
Thomas Eddison is focus on Sometimes small scale businesses help to attract the talent of
the employee so as to bring the for a new product where they can give a new solution existing
idea. So many large corporation is also depend to small scale businesses through exchanging the
idea and then they highly pay or some time offering a new project handling . Small scale
businesses do not stay a long some time small scale businesses rapidly grow in economy .
(Schaper and et.al, 2014) For example , Nike and Ben and Jerry's started a small scale
businesses and after some grew up in market and today become a major national and
international player . Micro soft is also the good example how small businesses can change the
idea and change the world . It is very important element of market economy and its main
motive to well developed economy and solving the problems of rural people providing
employment . It is important not only individual growth rather than whole economy growth.
Small scale industries is very important role in providing job creation and employment (Link,
2015). Nowadays Small scale industries is great relevance and providing good opportunity to
the self – employment.
P5 characteristic traits and skills of Thomas Edison different from other business managers.
Thomas Edison was a great entrepreneur which has major characteristics traits and skills which
were truly different from the other business manager . Some characteristic traits were :
Business Building :
Thomas Edison as an entrepreneur had always looked for building the business by
keeping all the focus on the product and its development,which the investors or customers look
for. But other business managers focused more on customers and less on their product.
Passion and knowledge of market :
As an entrepreneur he was very passionate for his product, its development and
improvisation and also a deep study of the market has to be performed so that before selling
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entrepreneur has complete idea and he had included every minute reasons that can make the
product their choice to buy whereas other business managers lacks passion which results in poor
selling of the product in the market.
Curiosity:
Curiosity is the building foundation of every entrepreneur which was one of the major
characteristic's trait of the Thomas Edison (De Massis, 2015). To know the need , wants and
desires of the customer every seller must be curious; so, that the product fulfils every
requirement of the customer and satisfy them completely.
Analytical :
His analytical behavior made him a successful inventor and entrepreneur ().Along with
the creativity and innovation , one should be able to analyse every possible methods for the
product and being as a successful analytical he was good in judging the performance of the
product and reaction of the customers in the market.
Consideration of a bigger frame :
He was having an ability to see pictures on a bigger frame , he not only considered direct
aspect of the process but also considered other aspects too which are merely neglected by other
business managers as every aspect is important for the success of the product in the market.
Fearlessness:
Fearlessness is the important trait which existed in Thomas Edison .As every
entrepreneur should be fearless, he should be ready to take risk otherwise he would not explore
the market for the great success but other business manager may lack an ability to take risk and
move forward for the success of their product , they prefer to take low risks or to carry the
business in moderate manner.
Innovation:
Thomas Edison as an inventor was very innovative ,this character lead him to be a great
entrepreneur .With great innovation comes great ideas which can be converted in the product to
serve customers (Piperopoulos, 2015). The more innovative the product will be the more
customer it will attract. Other business manager may lack innovation , they may compete in the
market with the ordinary products. To be focus on more and more innovation is to be used and
manage work and improve level of production and increase market share. This is help to increase
number of customer in market share and improve overall development in future time period.
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Open Minded :
Open Minded means to welcome all kind of changes due to other factors. An
entrepreneur must be open minded and should adapt the change with a great ease .Being an
inventor Thomas Edison was a tech savvy , he welcomed every possible change and adapted
them for a betterment. Whereas other business manager were not so happy to accept and adopt
the change they face in the environment.
P.6 Entrepreneurial personality reflecting entrepreneurial motivation and mindset.
Every characteristic traits and skills of the entrepreneurial personality reflect the
entrepreneurial motivation and mindset(.Read, 2016.Garcia, 2017). Positive characteristics
depicts the high motivation and a optimist and an opportunity seeker mindset. Negative
characteristics depicts the demotivation and a pessimist mindset as the entrepreneur is not ready
to face the challenges and the risk of the markets. Every entrepreneurial should reflect particular
characteristic traits such as
Value creation :
These values are the attitude of the entrepreneur which is the preimage made in the
mindset of the entrepreneur (.Read, 2016.Garcia, 2017). A Positive attitude of the entrepreneur
leads him to achieve a great success in the future as he takes every challenges and risk with a
positive mindset and a put every possible effort to remove or overcome them. An entrepreneur
with a positive attitude will be immensely constructive in nature. Also identify every possible
opportunity and to grab it accordingly efficiently. His determined behaviour leads him to learn
from his failures which means nothing can stop the entrepreneurship within him , which emerges
above all competitors in the market available for competition
Curiosity:
Curiosity can lead every entrepreneur to do wonders in their life and as well in the life of
the customers. Curiosity of every entrepreneur leads to know the world and what is the actual
need of the market, therefore helps to make the offerings which completely satisfies the need of
the customers. It also makes every entrepreneur to know the solution for the changes occurring in
the world.
Connections :
Every entrepreneur develops a connection which means he is accessible to all the sources
and can fulfil his requirement for the processing (.Read, 2016.Garcia, 2017). In other ways he
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should be able to manage the risk and crisis efficiently with the optimal use of the available
resources.
Self Awareness :
Every entrepreneur should be self aware of themselves, they must know their strength
and weakness; should work on the weaknesses. He should be goal oriented thus can successfully
set and achieve goals which is beneficial for every entrepreneur and their venture; where goal
oriented means setting self-standards and making every possible effort to complete those
standards. Learning of new skills and attempting every challenge and also accomplishing it is a
part of goal oriented entrepreneur.
Performance Oriented :
A performance oriented mindset of entrepreneur shows the quality aspect of the work
performed. Expanding the ability and making the ability to be judged by others is the major
concern of the entrepreneur and having a zest of being the best among others and avoiding being
poor in the ability of performance. Diversity is also the major concern along with the variety in
the work. A performance oriented entrepreneur learns from every activity and improves the
lacking area.
P.7 Background and experience of entrepreneur
Background experience is very important for every entrepreneur to start a new business.
Because without experience now any one start a new businesses so it is important for every
business men or entrepreneur. (Burns, 2016.) Well experience entrepreneur takes a correctives
actions and make a right decisions. They know how to run a business for a long time and how to
reduce cost of productivity and they also know better ideas like, how to increase the sale,
innovative ideas.
A good entrepreneur makes a new businesses plan and execute. They also know reduce
the risk of uncertainty and how to maintaining the relationships with other. They main motive to
focus on businesses earn profit and providing better services to the customers. Background
experience help to find out the real problem of the businesses. They know how to solve the
problems and giving a better solutions to the problems. Well experience Entrepreneur are
optimistic and future oriented they know very well how to achieve the goal of the organization.
They are always fast moving and always take a high risk for earning a high profit on future
(Bridge,and O'Neill, 2012. ). There is all active both big entrepreneur to help small medium
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sector to amend carrying into action level. In addition, manage activity on time is prize in
working state of personal business and enterpriser is use it internecine piece of work place.
CONCLUSION
As per the above report is focus on entrepreneurial personality is give positive impact to
scale business Providing a better living standard of the people. So its important for growth of the
economy. Form the above report is to be focus on very important role in the economy like
creating job, sending products, providing good and service and generating wealth . 99.7
percentage small scale businesses running now days and 99.7 percentage firms their and 29.6
million paid employee in businesses and 19000 are small businesses on 2014. From the above
is based on Sometimes it can be a social enterprise as well. Different types of entrepreneurship
ventures can be related with the typology of entrepreneurship venture. In this report is focus on
Thomas Edison as an inventor was very innovative ,this character lead him to be a great
entrepreneur .With great innovation comes great ideas which can be converted in the product to
serve customers. Form the above report is focus on American Conglomerate Organisation which
has diversified products and is a profit seeking organisational group is the need driven
independent venture which full fills the product needs of the customers.
REFERENCES
Books and journals
Ayandibu, A. O 2017. The role of Small and Medium Scale Enterprise in local economic
development (LED). Journal of Business and Retail Management Research (JBRMR).
11(2). pp.133-139.
Carter, S 2015. Barriers to ethnic minority and women’s enterprise: Existing evidence, policy
tensions and unsettled questions. International Small Business Journal. 33(1). pp.49-69.
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Ciampi, F 2013. Small enterprise default prediction modeling through artificial neural networks:
An empirical analysis of Italian small enterprises. Journal of Small Business
Management. 51(1). pp.23-45.
Cowling, M 2015. What really happens to small and medium-sized enterprises in a global
economic recession? UK evidence on sales and job dynamics. International Small
Business Journal. 33(5). pp.488-513.
Cunningham, T and et.al 2014. Better understanding the small business construct to advance
research on delivering workplace health and safety. Small Enterprise Research. 21(2), pp.
Henrekson, M and et.al 2014. Small business activity does not measure entrepreneurship.
Proceedings of the National Academy of Sciences. 111(5). pp.1760-1765.
Kim, H. D 2013. Building Web 2.0 enterprises: A study of small and medium enterprises in the
United States. International Small Business Journal. 31(2). pp.156-174.
Bae, T.J and et.al 2014. The relationship between entrepreneurship education and
entrepreneurial intentions: A meta‐analytic review. Entrepreneurship theory and
practice, 38(2), pp.217-254.
Link, A.N 2015. The Chicago handbook of university technology transfer and academic
entrepreneurship. University of Chicago Press.
De Massis 2015. Sector-Based Entrepreneurial Capabilities and the Promise of Sector Studies in
Entrepreneurship.
Piperopoulos, P 2015. Burst bubbles or build steam? Entrepreneurship education, entrepreneurial
self‐efficacy, and entrepreneurial intentions. Journal of Small Business
Management, 53(4), pp.970-985.
Read, S 2016. Effectual entrepreneurship. Taylor & Francis.
Garcia, D.H 2017. Program Entrepreneurship and Innovation: Education as the Core of
Innovation. In Advances in The Human Side of Service Engineering (pp. 235-244).
Springer International Publishing.
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