Impact of Micro and Small Business on Economy

Entrepreneurship
and Small Business
Management
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TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1 Different types of entrepreneurial venture type and relates to different typology.................3
Critically analyse typology of entrepreneurial ventures..............................................................5
P2 Difference and similarities between entrepreneurial ventures...............................................5
LO2..................................................................................................................................................7
P3 Illustrate impact of micro and small business on economy....................................................7
P4 Importance of small and start up business to growth of social economy...............................8
LO3..................................................................................................................................................9
P5 Characteristics, traits and skills that are presents in entrepreneur..........................................9
P6 Key aspect of entrepreneurial personality that reflects about its mindset and motivation...11
LO4................................................................................................................................................12
P7 The way background and experienced can hinder or foster entrepreneurship.....................12
CONCLUSION..............................................................................................................................13
REFERENCE................................................................................................................................13
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INTRODUCTION
Entrepreneurship is an ability of individual to develop new and innovative business ideas
by incorporating specific amount of risk so that maximum amount of profitability can be earned.
Therefore entrepreneurship is starting of new business ventures so that people can easily satisfied
their needs through making various purchase of products and services. To be successful
entrepreneur an individual must have specific knowledge, skills and ability for smooth operation
of business in competitive environment. This report discuss about different types of entrepreneur
venture on the basis of scope, growth and development of particular business operation. It also
explained about impact of small and micro business on UK economy and it also describes about
various characteristics of successful entrepreneur.
LO1
P1 Different types of entrepreneurial venture type and relates to different typology
There are three types of entrepreneurial ventures i.e. public, private and voluntary that are
described as follows:
Private Enterprise
There are numerous organizations that are operated by owners without involving
government activities. These type organization are controlled by individuals or two, more
partners and offers different type of products and services to the customer. The main goal of
these organizations is to generate high revenue in the business market and builds good
relationship with the customer. There has as example of Next Plc is a private organization which
is headquartered in Leicester, England, UK. It is a British multinational clothing, footwear and
home accessories retailer company. It operates in multiple countries i.e. Asia, Europe, UK and
Middle East through it’s 500 retail stores (Doody, Chen and Goldstein, 2016). It mainly focuses
on customer’s needs, preferences and expectation and gives them value by offering desirable
products and services to them on time. it is mainly famous as clothing retailer because it keeps
wide variety in it’s clothing products i.e. kids wear, traditional, westerns and others so that
enables to fulfil each customer’s needs weather they are male, child or female and old aged
people. It has established loyal brand image in the customer’s mind through involvement in
consumer awareness marketing campaign. It operates in highly competitive environment and
possess highly skilled staff, technology so that enables to satisfy customer’s by meeting all
unsatisfied needs. Due strong management performance enables to take competitive advantage in
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the business market. Wide range of product portfolio helps Next plc to differentiate it’s brand
positioning from other brands effectively. It leads continuous improvement in the existing
products and it’s delivering services which improves customer’s shopping experiences. That’s
why private organization has main motto is to generate high profitability by retaining royal
customers for meeting it’s success in efficient manner.
Public Enterprise
These type organizations are operated by owners but profit shares between shareholder
and owner in order to raise business expansion for development of corporations. These type
organizations are mainly controlled by shareholders who are selected by general public so that
needs and expectation of people can complete at affordable rate. The main goal of the company
to give value of the public money and in return generate good profit. There has an example of
Tesco which is a public limited company and headquartered in UK. It operates in retail sector
with main goal to improve customer’s experience by offering standard quality products at
affordable price as much as possible and in returns earns lifetime loyalty of them for the brand
and it’s products. These type organizations expand it’s business in slow speed because it has aim
to serve best quality products and services to all people either they are local or foreign instead of
earning profit, and these products and services improves their living standards and disposable
income as well (Hörisch, Kollat and Brieger, 2017). Therefore, managers of Tesco plc always
plan to give such kind products while fulfil needs of UK’s people and meets their budget as well.
Voluntary enterprise
It is a charitable type organization that are mainly designed to give services and support
to the public in term of financial support, medical support and others so that they live their
lifestyles effectively like other potential people. 165,800 voluntary organizations have
established in UK and offers social services to the public. The main goal of these type enterprises
is to eradicate poverty across the UK and give better lifestyle to those people who unable to take
these kind services. There is an example of charitable organization i.e. Oxfam which is founded
in 1942, UK. The main motto of the organization is to improve people life by eliminating all
social evils i.e. gender inequality, unemployment and poverty (Hsu, Simmons and Wieland,
2017). This organization fight against inequality that keeps people poor mentally and physically
as well and supports people to redeem their lifestyle by offering education support, financial
supports and others. it is not controlled by organization but it is operated large number of people
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