The Importance of Small Business and Entrepreneurship

This report explores the importance of small business and entrepreneurship in economic development. It discusses how small businesses can drive innovation, create jobs, and contribute to social welfare, while also providing examples of successful small business models and entrepreneurs who have made a positive impact on their communities.

Entrepreneurship

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
P1: Different type of entrepreneurial project and their relation with typology...........................1
P2: Similarities and Difference entrepreneurial projects............................................................2
P3 Impact of micro and small business on economy..................................................................3
P4 Importance of small businesses as well as starts-ups in the growth of social economy........5
PART 2............................................................................................................................................6
P5: Characteristics, traits and skills of successful entrepreneurs................................................6
P6 Entrepreneurial personality that effect entrepreneurial motivation as well as mindset.........6
P7 Background and experiences that foster and at the same time hinder entrepreneurship.......7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Entrepreneurship is a very important aspect of any economy which is reliable on various
sorts of factors that prevails within an economy. The commercial activities of a particular region
is determined by the entrepreneurial abilities that individuals residing there posses. The skills of
entrepreneurship is developed by an individual through various observation of society, culture
and personal experiences etc. If there exist any opportunity within the environment, the
entrepreneur would want to capitalise on it either for survival or for financial gains. The current
report is based on entrepreneurship and the development as well as management of small
businesses. The various types of entrepreneurial ideas that are available for achieving the growth
has been discussed in detail within the current report. The traits and skills that an entrepreneur
must possess in order to be successful have also been discussed under the current report in a
detailed manner (Anderson, Drakopoulou Dodd and Jack, 2012).
PART 1
P1: Different type of entrepreneurial project and their relation with typology.
There are various types of businesses that exist which can be used by an entrepreneur for
achieving higher level of growth in their respective career. The scope of entrepreneurship is quite
large and it includes various aspects, which is quite essential for the growth and development of
entrepreneurial talents. Various scope includes Small scale businesses which can be opened by
an entrepreneur, sole proprietorship is another format and other includes partnerships etc. If an
entrepreneur wants to open up a small business, then there are various alternates that available
for him, these can be described as under:
Small scale business: An entrepreneur can open up a small scale business which will allow him
to do business with limited resources, it is usually opened by individuals who try to earn from
business for the purpose of meeting their daily family needs, instead of the desires to become big
corporation etc. The amount of capital that is being infused under this kind of business is quite
small and the risk is bear by the owner himself. This types of business is also called sole
proprietorship.
Scalable Start up business: These are those business ventures which are being started by the
individuals who are having an idea that is exceptional and innovative and can change the overall
dynamics of the market and thus can be easily scalable.
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Social Business: These kinds of organisations does not exist for the purpose to earn profits, but
the ultimate aim is to provide goods and services to the society, without any ambition to become
big by making higher level of profits, the aim is to serve society in the longer run (Burns, 2016).
Typologies of Entrepreneurship
Lifestyle Entrepreneurship: The ultimate aim of such kind of entrepreneurs is to raise the
standard of living of people within the society through innovative goods as well as services to be
produced by the entrepreneurship.
Social entrepreneurship: These entrepreneurs are also known as social entrepreneurs, who
conduct business not for profit but to serve society through their goods as well as services in the
long run.
Serial entrepreneurship: These are those entrepreneurs who conduct business on a regular basis
and not just to end meets. The aim is to become big in terms of size and operations in the longer
run. The level of enthusiasm in these types of entrepreneurs can be seen and are most actively
participate in the activity as well as decision making of the business (Cope, Kempster and Parry,
2011).
P2: Similarities and Difference entrepreneurial projects
There are different types of entrepreneurial ventures that exist and an entrepreneur opts
them by having a proper analysis of his needs as well as wants, for example if one wants to earn
higher profits, he won’t open social entrepreneurship but rather go for making profits through a
lifestyle entrepreneurship or a serial entrepreneurship. The various types of ventures and their
similarities and differences are discussed in detail as follows:
Lifestyle Serial Venture Similarities Differences
It is a venture open
by an individual with
an aim to improve
the lifestyle of
individuals within
the society.
It is formed with aim
to take business
forward and become
big overtime.
Both the ventures are
opened for the
purpose of conducting
business and an
ultimate aim is to
make decent profits.
Both the ventures are
different from each
other in the sense
that lifestyle venture
is opened for the
purpose of increasing
the lifestyle and
standard of living of
individuals within
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the society, where as
serial venture is
started to do business
for a long time.
Serial Venture Social Venture Both the ventures are
started by an
individual for the
purpose of becoming
independent and the
ultimate aim is to
conduct business in a
productive way (Dees,
2017).
Serial venture is
there for making
profits and social
venture is concerned
with doing business
for the purpose of
serving society and
contributing for
growth of society.
The aim is not to
make profits (Griffin,
2013).
P3 Impact of micro and small business on economy
Small and medium scale business has an exceptionally important impact in the upliftment
of an economy, these are as critical as large organizations and consequently it is very vital that
administration should deal with the well being and thriving of such independent ventures in a
powerful way. These micro and small ventures have an extraordinary effect monetarily on
society also, individuals will have the capacity to land positions and benefits ate made which
more often than not are reinvested to profit and thus interest in the economy is expanded through
appropriate administration of such small well as large organizations.
Three sorts of associations are all around working in UK which are Micro, Small and
Medium. Each such sort of business has a considerable impact on economy of UK. Their
business work moreover helps being created of society. As a result of the exit of UK from
European affiliation far reaching number of disagreeable impacts is showed up on their economy
(Dawson and Henley, 2012). The organization finds the best way to deal with defeat from the
effect of BREXIT is to increase the base of small and medium size business in the longer run. As
this will gives considerable number of business openings, progression of establishment, removal
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of joblessness, increase stream of exchange out an economy etc. Thus, with respect to
improvement and progression of autonomous organization works out, UK government has
framed various game plans and frameworks. The difference between micro, small and medium
enterprises are laid down as follows: Micro: These are ventures who are having a sales of under 2 million£ and the quantity of
workers are under 10. Along these lines these are little organizations with little capacities. Small: An organization can said to have private venture of its yearly turnover is under 6.6
million£ and is having under 50 representatives working in it. The elements of the
organization are somewhat bigger than the elements of a smaller scale venture. Medium: If the turnover of the organization is under 25.9 million£ and is having a
worker base of under 250 then such can be viewed as Medium venture. The capacities
and size of such business is generally bigger than Micro and small ventures (Desa and
Basu, 2013).
Contribution of MSME Sector on the economic as well as business growth of UK.
MSME Sector has contributes for the general improvement and development of economy
of UK. In spite of the fact that the span of such organizations is little however they cannot be
overlooked from the viewpoint of their commitment to the economy. The different commitment
of such sector is examined in detail as under: Job Creation: The greatest commitment of this area is that it has given employment to a
large number of jobless individuals and who can get a place in various types of firms of
the economy. A MSME business can be opened and overseen by any local individual and
along these lines it will enable other local jobless individuals who are looking for work.
Thus, the way of life of these individuals has additionally expanded ( Ruskovaara and
Pihkala, 2013). According to Govt. data, of the 8% growth in employment in United
kingdom around 1.5% is contributed by the MSME Sector. The Government has been
able to implement necessary policies which has boosted growth of the MSME in the
country. Infrastructural developments: With the development of these organizations, The
framework of residential community and urban communities has likewise expanded as
the majority of these organizations are opened in those territories and are wanders which
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are identified with Infrastructure improvement like street development, transportation
offices and so forth.
 Improved Cash Flow: Growth of MSME business has prompt an expansion in general
FFI income into these organizations and this thus has bolstered the economy of UK.
Additionally with legitimate development and advancement of such organizations, these
organisations help in gaining overall growth of trade as well as foreign exchange in the
economy. Most of SME are engaged in the export sector and thus higher level of profits
can be envisaged in the longer run (Kerr, 2013).
P4 Importance of small businesses as well as starts-ups in the growth of social economy
Brexit: It is a term utilized for UK when it chose to move out of European association.
United kingdom chose to leave European association on the grounds that if the way that it was
confronting some difficult issue while staying in EU some of them was higher joblessness among
nearby individuals on account of the way that individuals of different nations were taking their
occupations and the UK government couldn't do anything as they have marked the settlement for
work trade with European association.
Small business Start ups
These are businesses which are established
from at least last two years.
These are the businesses which are being
opened up just recently.
The capital infused are relatively larger, Thus
a larger capital structure.
The level of resources is not very large as the
business has just started up and the level of
experience is also less.
MSME’s and Development of Social economy
The Brexit had lead to various problems inside UK and to employ their solutions inside
UK once more, the administration includes inspired people inside UK to fire up their own
business with the goal that these individuals can be utilized to reduce rate of Unemployment. In
the event that there will be legitimate rivalry between different business visionaries then they
will have the capacity to work together in a successful way awful this would bring about
decrease in neediness, Employment Creation, parallel dissemination of riches and so on.
Subsequently it is very unavoidable that business enterprise specifically affects the general
economy and also society. Some different courses through which a start-up or little firm
contributes for development and advancement of Social economy are as per the following:
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 Employment opportunities: Small and medium enterprises do contribute effectively in
generation of employment for individuals within the economy. Large number of SME’s
operates in the economy which aims earning profits meanwhile providing employment to
large number of peoples in the longer run.
 Trade Enhancement: The trade of country also increases, if the growth of SME’s is there
in an economy. The production in these SME’s usually happens for the purpose of
exporting products and services to other countries at a affordable prices (Wright, 2014).
PART 2
P5: Characteristics, traits and skills of successful entrepreneurs
The character and the traits that an individual posses, do makes a lot of difference and
ensures the overall success of the individual in the longer run. If a person would be having right
kind of abilities as well as skills, it will allow him to take important and sufficient decisions
within business career. The two entrepreneurs who has been chosen for the purpose of this
discussion is Bill gates and mark Zuckerberg, The various skills and traits that an entrepreneur
must posses has been discussed in detail and are as follows:
Risk Taker: It is the most essential thing which must have in a business visionary. The
individual ought to have the capacity to take risks and does not fear about any risk that prevails
within the market. Risk taking abilities causes individuals to accomplish their professional
objectives and destinations in a very effective manner.
Reliable – The individual ought to be exceptionally prompt and ready to finish all exercises in a
given time plan. It is fundamental trademark for individuals in order to achieve triumphs in their
every day life in an effective as well as efficient manner. Alongside this, promptness gets its trail
effectiveness and encourages individuals to finish their assignments viably.
Inventive – Innovative people are frequently thinking of new ideas or thoughts. It is a ceaseless
procedure which helps business visionaries to produce something new for society and increase
high market development and achievement. Aside from this, business people are able to lead a
statistical surveying, purchasers response and create business techniques in an effective way.
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Communicative: This is also one of the most important skill that an individual must be carrying,
for the purpose of communicating with both external and internal parties, it is highly essential to
communicate well, therefore it is an important skill.
Bill gates and mark Zuckerberg are both is a kind of personality who possess these skills
and thus have been able to become successful in their life. It is thus very much essential to
develop these traits and skills which will differentiate an individual from others (Zucchella and
Magnani, 2016).
P6 Entrepreneurial personality that effect entrepreneurial motivation as well as mindset
For exchanging workforce, HRM fundamentally centre around select OCEAN
viewpoints. It is an exceptionally fundamental and compelling techniques for the person keeping
in mind the end goal to recognize its all tasks which are laid down effectively. Around here
element give all activities and undertakings to the representatives as per its fundamental learning
and aptitudes. It will enhance individual practices and increase proficient improvement. Under
this factor comprises extroversion, agreeableness, principles and neuroticism and so forth with
the assistance of such approach they can expand their inspiration level (Galindo and Méndez-
Picazo, 2013).
Conscientiousness: With the assistance of this viewpoints, they can accomplish an tendency
keeping in mind the end goal to demonstrate possess judgements, act obligation and intention in
accomplishing wanted targets and objectives in a deliberate manner. It is known as engaged and
imperative factor in light of the fact that in this, they have alarm or dynamic personality. It is
likewise help and support to snatch all open doors and also make better condition.
Extroversion: along these lines, an individual figure all planning keeping in mind the end goal to
increase better results in forthcoming circumstances. In this talkative and assertive are basic and
viable elements which can upset the business person identity and their attitudes.
Agreeableness: In this, individual can create sound and well disposed condition to the employees
and workforce. Such sort of things change the business visionary mentality in regards to
propelling new business in certain period. In this individual outlook can be affected from kind,
warm and thoughtful and so on.
Neuroticism: These factor otherwise called friendly and enthusiastic solidness that gives the two
business people access their life (Dennis, 2011). Because of this, they can hold solid association
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with their representatives. it will in view of individual mind-set and have an effect on the
mindset related to start-up's (Hayter, 2013).
Openness: This clearly states that an entrepreneur shall be ready and open for all the risks that
might be there within a business, he shall perform all the task in an effective manner. This will
allow him to become more creative and be innovative in his workings in an efficient manner.
P7 Background and experiences that foster and at the same time hinder entrepreneurship
The background that an entrepreneur carries or belong to, might help an entrepreneurship
and may also hinder entrepreneur in achieving success at the market place. The current
entrepreneurs who have achieved a high level of success in their respective career are bill gates
and Mark Zuckerberg, Bill gates belonged to a very prosperous family even before when he
entered in the field of business, which has allowed him to grow his business and take it forward
as he has the background support for this. But the same was not the case with Mark Zuckerberg,
his family were against his decision to become a businessman and he decided to back his own
strengths to become an entrepreneur in the longer run.
If the there is a background support of family and other persons, then it allows an
individual to pursue his dreams as well as work in a more effective manner. Thus, it can be said
that the entrepreneurial success can be achieved, if there is a support of family and have a strong
enough background. It is a viable factor, which do affect entrepreneurial abilities, either in a
positive or a negative way (Naudé, 2014).
Each individual works within his own set of boundaries, which are set by their experience
throughout their lives. Entrepreneurship depends on such factors. An entrepreneur's background
works as a guide in deciding its attitude in their business. Mark Zuckerberg and Bill Gates are
successful entrepreneurs of their fields. While Bill Gates belonged to wealthy family,
Zuckerberg's family was financially not so sound. While Bill got supported by his family,
Zuckerberg wasn't so lucky. Support of the family sets a strong base for the business. If the
entrepreneur is supported by its family, it gets easier for them at times of risk taking while the
opposite might not prove so lucky for the entrepreneur.
Education also has a prominent role. While educated entrepreneurs are trained in business
fields before stepping in, uneducated entrepreneurs learn through their experience in the market
which gets difficult at the time where adaptiveness is required.
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An entrepreneur operates the business within the boundaries of its national culture. While
some cultures accept risk taking and innovations, some are reluctant which might hinder the
possibility of growth of the business. These factors, thus help in evolvement of environment an
entrepreneur is willing to create to operate the business. While these factors work towards
betterment and success. These also can prove devastating for some entrepreneurs.
CONCLUSION
From the above discussion, it can be concluded that right kind of entrepreneurship skills
are necessary for becoming a successful entrepreneur. Any person can open up a business, but
the management of the same in an effective manner requires extensive amount of hard work,
passion as well as dedication towards the goal of taking the organisation further along with its
employees as well as workers. Thus, it is important that proper way is chosen for the purpose of
reaching to business growth in an effective way. The role that government is playing in the
overall development and growth of small and medium businesses has also been discussed in
detail in this report. Thus, to sum up it can be said that business does not always means a big
business house, lot of small business also comes under this category. Government should boost
the traits and skills of entrepreneurship among people through its various positive and favourable
policies for the concerned sector.
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REFERENCES
Books and Journals
Anderson, A. R., Drakopoulou Dodd, S. and Jack, S. L., 2012. Entrepreneurship as connecting:
some implications for theorising and practice. Management Decision. 50(5). pp.958-971.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Cope, J., Kempster, S. and Parry, K., 2011. Exploring distributed leadership in the small business
context. International Journal of Management Reviews. 13(3). pp.270-285.
Dees, J. G., 2017. 1 The Meaning of Social Entrepreneurship. In Case Studies in Social
Entrepreneurship and Sustainability (pp. 34-42). Routledge.
Griffin, R.W., 2013. Fundamentals of management. Cengage Learning.
Desa, G. and Basu, S., 2013. Optimization or bricolage? Overcoming resource constraints in
global social entrepreneurship. Strategic Entrepreneurship Journal. 7(1). pp.26-49.
Dawson, C. and Henley, A., 2012. “Push” versus “pull” entrepreneurship: an ambiguous
distinction?. International Journal of Entrepreneurial Behavior & Research.18(6). pp.697-
719.
Kerr, W. R., 2013. US high-skilled immigration, innovation, and entrepreneurship: Empirical
approaches and evidence (No. w19377). National Bureau of Economic Research.
Wright, M., 2014. Academic entrepreneurship, technology transfer and society: where next?. The
journal of technology transfer. 39(3). pp.322-334.
Zucchella, A. and Magnani, G., 2016. International entrepreneurship: theoretical foundations
and practices. Springer.
Hayter, C. S., 2013. Conceptualizing knowledge-based entrepreneurship networks: Perspectives
from the literature. Small Business Economics. 41(4). pp.899-911.
Naudé, W., 2014. Entrepreneurship and economic development. International Development.
Ideas, Experiences and Prospects.
Galindo, M. Á. and Méndez-Picazo, M.T., 2013. Innovation, entrepreneurship and economic
growth. Management Decision. 51(3). pp.501-514.
Ruskovaara, E. and Pihkala, T., 2013. Teachers implementing entrepreneurship education:
classroom practices. Education+ training. 55(2). pp.204-216.
Estrin, S., Mickiewicz, T. and Stephan, U., 2013. Entrepreneurship, social capital, and
institutions: Social and commercial entrepreneurship across nations. Entrepreneurship
theory and practice. 37(3). pp.479-504.
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