Entrepreneurship and Small Business Management: A Comprehensive Analysis of Venture Types and Economic Impact

This assignment delves into the world of entrepreneurship and small business, exploring the diverse range of venture types that contribute to economic growth. It examines the impact of small businesses on the UK economy, analyzing relevant data and statistics to illustrate their significance. The assignment also highlights the crucial role of small businesses in fostering a vibrant social economy, emphasizing their contribution to local, regional, national, and international levels. Through a comprehensive analysis of entrepreneurial ventures, their similarities and differences, and their impact on economic development, this assignment provides a thorough understanding of the vital role of entrepreneurship in shaping a thriving society.

Entrepreneurship and Small Business Management

Executive Summary
This assignment is based on the small business and entrepreneurship in a country.
Entrepreneurship is a major element for the growth of economy in a country. There are various
types of ventures in the infrastructure of a country. The example of United Kingdom has been
cited here to explain the subject. The importance of small business in the UK economy has been
shown here. Some data has been cited for the support of that statement. The small business has a
role in the growth of social economy of United Kingdom. S small business apart from support
the economy of a country supports the social economy of a country.

Table of Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................4
LO1 Explore and illustrate the range of venture types that might be considered entrepreneurial. .5
P1 Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship. (M1, D1)..........................................................................................5
P2 Explore the similarities and differences between entrepreneurial ventures. (M1, D1)..............6
LO2 Assess the impact of small businesses on the economy........................................................10
P3 Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on the economy. (M2, D2).................................................................................................10
P4 Explain the importance of small businesses and business start-ups to the growth of the social
economy. (M2, D2).......................................................................................................................11
Conclusion.....................................................................................................................................11
References......................................................................................................................................13

Introduction
Entrepreneurship is the core of every type of business (Mohapatra, 2014). Every small business
is started by an entrepreneur and is led with the entrepreneur. The growth of every business
depends on the entrepreneurial skills and competency. Entrepreneurship and small business is a
common study for the learners who are interested to know about a small business organization.
The study of entrepreneurship consists of the idea how to develop a small idea into a profitable
product and service. Small business entrepreneurship has a range of creative business activities.
Innovation is a very essential element in the entrepreneurship (Burns, 2016). In the competitive
business world at the present age, innovation is very necessary to develop in the business.
Different types of entrepreneurial ventures have been discussed in this assignment and it has
been shown how those affects on the total entrepreneurship. The assignment has highlighted how
the small business has influenced the society and the growth of the entire economy of a country.

LO1 Explore and illustrate the range of venture types that might be considered
entrepreneurial
P1 Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship. (M1, D1)
There are different types of entrepreneurial ventures in a society. They are as follows:
Lifestyle venture: Lifestyle ventures are created by an individual to alter their lifestyle of
personal life and not for the purpose of making profits from the business. The passion of an
individual is focused through this type of business rather than other things. Normally small
company is formed under this entrepreneurship and the owner controls the business
independently. As this type of venture is controlled by the entrepreneur, it is quite flexible in
nature. The entrepreneur make the structure of hours of business, selects the meeting places of
the business and others. This type of venture aligns an individual’s personal interest and passion
into business by making a profit.
Smaller profit venture: A small profit venture may be a private owned corporation, a
partnership business or a sole proprietorship business ((Zou and Chen, 2016). This type of
business is formed with a small number of employees, with a small size or with a small profit
structure. The profit structure in a small profit venture is not like a large business organization.
This type of organization does not intend to make millions of dollar at the initial stage. Normally,
a small business may be set up by an entrepreneur in their own house. Small business ventures
may be involved in retail, internet-related business or some other type of business.
High growth ventures: When a small business enterprise tends to achieve high growth and high
profit increment, it is called the high growth venture .The main goal of this type of venture is to
maximize its growth and profit (Coad et al., 2014). According to the characteristic of this type of
business, the main concentration of the entrepreneur is to grow the business unit as large as
possible. One more feature of this type of organization is the innovation. High growth venture,

for the growth of both business and profit structure, promote the products and services of the
business unit through innovation.
Franchise: In Franchise venture a franchiser delivers authority to an individual to market a
product or service in the market.
P2 Explore the similarities and differences between entrepreneurial ventures. (M1, D1)
M1 Investigate a diverse range of entrepreneurial ventures to demonstrate an understanding of
entrepreneurship in both the public and corporate sector.
D1 Critically examines the scope, development and growth of entrepreneurial ventures.
The similarities among Lifestyle venture, smaller profit venture, High growth ventures and
Franchise business are the following:
Lifestyle venture Smaller profit
venture
High growth
ventures
Franchise
Public
sector
 The public
sector
enterprises
like various
types of
provides
social
services
through this
type of
venture and
make
welfare of
the society.
 Innovate
products for
 The
intention of
smaller
profit
ventures is
to make low
volume of
profit in the
organization
.
 Innovates in
the small
industry
 From
the
aspect
of high
growth
venture
s, in a
public
sector,
the
intentio
n of the
organiz
ation is
to make
a high
 In a public
sector,
through
franchise
model of
business, an
organization
gets the
authority from
a franchiser to
market a
product or
service.
 Organization
for franchise
business may

the
introduction
of its
products
profit
and to
make
growth
of the
busines
s unit in
a large
volume.
 This
type of
organiz
ation
innovat
es its
product
s and
services
for high
growth
innovate from
their own
view point.
Corporat
e sector
 The
corporate
sectors like
big sized
NGOs can
make social
welfare
through their
various
services in
the society.
 The
intention of
a corporate
sector
initially is
to make a
low profit
as its size
initially is
small.
 Enterprise
 In a
corpora
te
sector,
the
main
intentio
n of the
organiz
ation is
to make
 In a corporate
sector, a group
of individuals
of an
individual gets
authority to
work on a
product or
service.
 The business
unit may

 Innovation
is the second
feature for
mainly own
passion in
business
makes
innovation
for huge
growth in
business
huge
profit
with a
vast
growth
of the
compan
y.
 The
organiz
ation
innovat
es for
high
growth.
innovate from
franchise
business
perspective.
The differences among Lifestyle venture, smaller profit venture, High growth ventures and
Franchise business are highlighted a follows:
Lifestyle venture Smaller profit
venture
High growth
ventures
Franchise
Public
sector
 It is a
public
sector
organizatio
n led by
the
governmen
t with a
non-profit
seeking
motive.
 Innovates
 Enterprise
formed by
the
government
sized small
with a small
profit
seeking
motive.
 Innovation
is the main
 These are
the public
sectors with
an intention
of to make
high profit
and high
growth.
 Innovates
for high
profit and
growth in
 This type of
venture is
led by the
government
where it
gets
authority
from other
big
organizatio
n to market
a product or

goods or
service not
only to
make
profit but
to make
welfare
service
feature for
business
growth
business a service.
 Innovation
may be
done from
the aspect
of business
tactics.
Corporat
e sector
 The
authority
of control
of the
business is
on the
Corporate
officer or
executive
 Products or
services
may be
innovated
for making
profit
 Here the
authority of
the business
is on the
individual
entrepreneu
r
 Innovation
may be
done by
individual
or group of
individuals
for making
small profit
and growth
 Here the
authority of
business is
on the
entrepreneu
r of the big
business.
 Innovation
may be
done for
high profit
ratio,
market
share and
business
growth.
 In corporate
sector, for
franchise
business,
the
corporate
sector may
get
authority of
business
from a
government
or a non-
government
organizatio
n to
represent a
product of
service in
the market.
 In a
corporate

sector
business
strategy
may be
innovated.
Here, for explaining the subject, the example of Marks & Spencer has been taken for high
growth venture. It is a UK based retail company. The company from the past, has innovated its
products and service to develop its business from time to time. For example, with the advanced
digital technology, it has diversified its products, developed its services through company
webpage, social media etc. and optimized its growth in the global market.

LO2 Assess the impact of small businesses on the economy
P3 Interpret and assess relevant data and statistics to illustrate how micro and small
businesses impact on the economy. (M2, D2)
There is a great importance of the small business in the economy of the United Kingdom. Small
business has catered to the UK economy from various aspects. They are the following:
Economical aspect
Of all the private sector business, the small businesses were 99.3% at the beginning of the year
2017. This catered the economy of the United Kingdom to a great extent. The total employment
of United Kingdom in 2017 was 16.1 million which was 60% of the total private sector
employment in United Kingdom. The total annual turnover in the small and medium sector in
UK was £1.9 trillion that was 51% of all the private sector in United Kingdom.
Business population
In the year 2017, there were 1.3 million employment related businesses and 4.3 million non-
employment related business in UK. There were 3.4 million proprietorships, 1.9 million
individual companies and 414000 partnership businesses.
Location of the business
From the aspect of small and medium businesses, the number of businessmen is higher in
Southern England than that of any other location in UK. It has been proved that the small and
medium scale business is 99.5% of the businesses as per every man industry.
Trends of the business
There has been a sustainable growth in the small and medium scale industry with an increase of
2.2 million between 2000 and 2016. The reason behind the population growth is due to non-
employing business since the year, 2000. The non-employing business was 79% of the overall

increase in 2016. Finally, the number of sole proprietorship business and companies has
increased but the number of ordinary partnership decreased.
P4 Explain the importance of small businesses and business start-ups to the growth of the
social economy. (M2, D2)
D2 Critically examine how small businesses have an impact on different levels of the economy
(local, regional, national) and in an international context
Social economy in a country is formed with a rich diversity and culture of a country. Small
business has a major role on the growth of the social economy of every country. On the same
way, small business has a major role on the UK social economy (Tretter, 2016).
Firstly, the small business has a major role on the formation of GDP of UK (Hillary, 2017).
Falling GDP will affect badly on the sales and services of the country and those will effect, the
regional, national level business of the United Kingdom. As those affect the regional and
national business of the country, the international business will be affected by those. Hence,
small business has a link with local, national and the international business of the country. The
development in the economy will develop the social economy of UK
Secondly, small business deals with small transactions in UK. The more the small transactions
will increase, the more the scope in banks or other financial institutions will increase. This will
lead to the development of social economy.
Thirdly, as small business is related to all classes of people in UK, the culture in UK will enrich
by the development of small business. The developed small business will enrich the ideas, and
cultures of the employees in every small organization and thus there will be a development in the
social economy (Huggins and Thompson, 2015).
The development in social economy will remove the idea of inequalities, differences in the
organization and thus there will be total growth of the culture and status of the UK.

Conclusion
A small business develops a country from all the aspects and caters to the economy of a country.
Various types of ventures have been discussed here and their features also. The similarities and
differences of those ventures have been shown in this chapter. Innovation is a tool of small
business through it can develop its business in the market. Some statistics have been shown here
for the support of the growth of small scale business in United Kingdom. The impact of small
business in the social economy has also highlighted in this assignment. The reader will have a
solid understanding on the entrepreneurship and small business.

References
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Coad, A., Daunfeldt, S.O., Hölzl, W., Johansson, D. and Nightingale, P., 2014. High-growth
firms: introduction to the special section. Industrial and Corporate Change, 23(1), pp.91-112.
Hillary, R. ed., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Huggins, R. and Thompson, P., 2015. Culture and place-based development: A socio-economic
analysis. Regional Studies, 49(1), pp.130-159.
Mohapatra, P.K.J., 2014. Economics/Management/Entrepreneurhip.
Tretter, E.M., 2016. Shadows of a sunbelt city: The environment, racism, and the knowledge
economy in Austin. University of Georgia Press.
Zou, Y. and Chen, T.L., 2016. International joint venture and welfare-improving tariff-tax
reforms. International Review of Economics & Finance, 46, pp.27-35.