Entrepreneurship and SME: Types, Contributions, and Importance

This article discusses the various types of entrepreneurial ventures, including scalable, small, and large ventures. It also explores the contributions of SMEs to the economy at different levels, such as local, regional, and national. Additionally, it highlights the importance of small businesses and start-ups in terms of local hiring, turnover, competition, employment opportunities, and promoting research and innovation.

Entrepreneurship
This is defined as process for creating or
developing new business at marketplace
and bearing risk in order to make profits. It
is called the way for developing and
managing business venture, investment &
production opportunity in order to
undertake functions of productions like
raw materials, labour, new methods, tools,
techniques and finding new source for
business.
Entrepreneurial Ventures
It is defined as organization which
undertake opportunity and innovation for
producing social or economic value in
order to make profits. They are also called
administration or owner of business who
mainly focus on making profits. They
render services to all mid phase
organizations for achievement of goal and
objectives.
Different Types of Entrepreneurial
Ventures:
Small Entrepreneurial Ventures- It is
defined as small venture whose capital
investment, size, number of staffs and
profit is low. The individual runs and
manages their own business and hire local
employees of family or society. Example,
Travel Centre which provide travel
services at UK.
Scalable Entrepreneurial Ventures- It is
defined as those entrepreneurship which
can change the world by attracting
investors for doing investment (What Is
Entrepreneurship? – Types & Importance,
2019). They hire best and bright staff for
work performance. For example,
Facebook, Instagram and so on.
Large Entrepreneurial Ventures- It
is defined as those ventures which is large
in size and has more market share. The
new products and services are produced in
order to meet need and demand of users by
using innovation and technology. Example,
Samsung, Microsoft.
Social Entrepreneurial Ventures-
This is defined as those entrepreneurship
Entrepreneurship and SME

which focus on creating products and
services for meeting need of society.
Topology of Entrepreneurship
Lifestyle Firms- This is defined as
topology which focus on improving living
standard of people and perform operating
activities. They are liable for performing
business model work and achieve
competitive edge at local market.
Growth Firms- It is defined as
those topology which is mainly framed for
earning high profits and revenues with use
of innovative ideas and creativity. The
main purpose is to grow and earn
maximum revenues.
Relation of entrepreneurship typology
with entrepreneurial venture
Entrepreneurial
Venture
Relation To Typology
of Entrepreneurship
Small
Entrepreneurial
Ventures
Growth- For surviving
and sustaining at
market.
Scalable
Entrepreneurial
Ventures
Growth- The purpose is
to change world by
doing new ideas and
innovations at
marketplace.
Large
Entrepreneurial
Ventures
Lifestyle- For
enhancement of profits
and market share
through fulfilment of
society need and
requirements.
Social
Entrepreneurial
Ventures
Lifestyle- The main
purpose is to cater need
and demand of society
rather than making
profits and gains.
Differences

Relevant data and statistics
Micro business are those whose sales is
less than $2500000 per annum. It is the
subset of small firms which forms various
types of industries. This is owned firms
which has large number of employees as
comparing to micro business.
Contribution of SME upon Economy
There are various contribution which are
made by SME at different level of
economy that are mentioned below:
Local Level- SME has impacted
activities and operations at local economy.
This assist in providing job opportunities
to local individual for improving their
lifestyle and living standard.
Regional Level- the SME has
impacted local economy of nations by
providing employment opportunities in
order to remove unemployment at regional
level. The individual who has capability
and skills can grow and develop
organization in order to achieve goal and
objectives.
National Level- There are large
number of organization in United
Kingdom which provides employment to
15 million individuals. They have to use
innovative ideas and research for
manufacturing products and services and
enhance profit margins. This leads to rise
in national economy and opportunity for
business.
Source: (Brexit’s impact on small
businesses: the experts may be spot on
after all, 2019)
From the presented statistics data and
information, it has summarized that SME
plays an effectual and important role in

development of economy of United
Kingdom. According to that data, there are
more than 5.7 million of SME which are
employing 99% of employees of private
organization that are liable for job
opportunities at marketplace of UK and
includes 60% of private jobs to enterprise.
SME is developing and providing 2
million employment from 2010 and also
provide 73% of gross private jobs to
individuals. The improvements which has
done by SME for economy of nation are
described below:
 SME has provided 2 million
employment opportunities to
people that helps in economy
growth rate of nations.
 United Kingdom has 5 million
SME which provides 60% of
private employment to employees.
The provided information has summarized
that SME aid in contribution of economy
of nations through providing employment
opportunity, improving living standard of
people and so on. With the rising of firms,
country can grow and develop at
competitive market and earn high profit
margins.
(Source: The Role of Start-ups and Small
Businesses in Today’s Economy, 2018)
The presented diagram shows information
that is mentioned below:
 Small concern contribute 99.3% of
business in 2016 which leads to
48% of employment opportunity
for people and rising of 33% of
turnover.
 The SME has provided 15.7 million
jobs to individuals that consists of
60% of jobs to private sectors.
 The total turnover of SME was
£1.8 trillion out of which 47%
leads to private sector in United
Kingdom.
Importance of small businesses

For sustaining and developing at
marketplace, it is essential for doing
innovation and creativity by business
for their products and services. The
business has to use both creativity and
innovation for developing new
products for their consumers. Small
businesses and start-ups assist in
growth and development of economy
that provide opportunity at market.
For Small Businesses
Local Hiring- The small business
hire local people as businesses are run
in small as well as local market. For
expansion of business in other market
by small organization prefer to choose
their already hired people to conduct
business activities and operations. It
assist in creation of employment
opportunity for local people.

Turnover- As small business fails to earn
high profit margin but it provide chance to
recover, rebuild and learn new things that
provide benefits for long run to grow and
earn maximum profits (Why Are Small
Businesses So Important for the Economy,
2019).
Competition- The local people has very
low demand and need for products as
comparing to others that creates high
opportunity for business to beat
competition in an effective and efficient
manner.
For Business Start-ups
Employment Opportunity- The
start-up business requires large number of
employment for conducting business
activities and functions so they create huge
employment opportunity for people which
helps in economic growth of nation (THE
IMPORTANCE OF STARTUP
COMPANIES FOR ECONOMIC
DEVELOPMENT, 2019). Therefore, this
enhance organization as well as
development of nations.
Promote Research and
Innovation System- The highly and
knowledgeable start-ups are linked to
knowledge institutions. All the new start-
ups has to use innovation and research
system for surviving at marketplace. As
consumers are attracted to those
organization which provide new and
innovative products which is possible
through research and innovation system.
Innovations- Start-ups has to use
innovations in manufacturing of products
and services. This can help them for
enhancement of profits and expansion of
business at other location which leads to
rise in economic growth and development
of business as well as nations.