The Impact of Small-Scale Businesses on Economy

This assignment delves into the role of small-scale businesses in the economy, highlighting their importance in local, national, and regional stability. It discusses how entrepreneurs with different personalities can provide various benefits, contributing to growth and development. The report also examines the impact of small business on employment, innovation, and financial strength, showcasing their significance in fulfilling citizen requirements.

ENTREPRENEURSHIP
AND
SMALL
BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types of entrepreneurial ventures and its related typology................................1
P2 The similarities and differences between entrepreneurial ventures..................................3
M1 Diverse range of entrepreneurial ventures to demonstrate an understanding of
entrepreneurship in both public and corporate sector.............................................................6
D1 Examine the scope, development and growth of entrepreneurial ventures......................7
P3 Interpret and assess relevant data and statistics to illustrate how micro and small business
impact on the economy...........................................................................................................7
P4 The importance of small businesses and business start ups to growth of the social economy
................................................................................................................................................9
M2 The differences small, medium and large businesses to make to the economy, applying
relevant data and statistics....................................................................................................10
D2 Examine how small business have an impact on different levels of the economy.........10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
An entrepreneur is someone who create and develop new ideas regarding to new product
& services for acquires to much more profit. Entrepreneurship is the process of creating and
developing businesses while structuring and scaling it to generate a profit. They are not not
motivated for earning profit but also create standard for accomplish rewards and success. The
present study based on, entrepreneurship and small business management, in this report analysis
of different types of entrepreneurial ventures and relation with typology of entrepreneurship (Acs
and et.al., 2012). There is exploring similarities and differences between entrepreneurial
ventures. In addition, interpret and assess data of micro and small business, importance of small
businesses and business start ups to the growth of social economy. Apart from determine
different aspects of the entrepreneurial personality to reflect on motivation, analysis of hinder
and foster Entrepreneurship.
TASK 1
P1 Different types of entrepreneurial ventures and its related typology
Entrepreneur
An entrepreneur is a single person who are working as an employee, founds and run for
small business. They are already conducting all market research according to their business and
estimate overcoming risks and rewards of the venture. The entrepreneur generally known as
innovator, a source of new ideas, stocks, services and business or procedures.
Entrepreneurial Ventures
Entrepreneurial ventures develop substantial wealth more than regular businesses and
they create it faster too. It can be defined as an organisation that which is related to innovation
and opportunism in the manner to develop values of economical and social. It is highly
correlated with entrepreneurial characteristics. It is centred on supply consultative services to
early and mid stage companies.
Entrepreneurship Types
According to business world there is various types of entrepreneurs which are connected
to different fields and provided their services in different way. It is helping to nation growth and
build successful economy -
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Innovative Entrepreneur – These types of entrepreneur focus on develop new product
and try to create new idea, method or processes in order to cover whole market. They are known
as industry leaders and provide helps for economic growth of the country.
Re create Entrepreneur – In this type of entrepreneur who can observe particular product
and innovate in their way. It can also known as modification of product but copy old processes,
technology and methods (Audretsch, 2012).
Socialism Entrepreneur – In this type they are believing in changes of social issues so
they are creating new products for provide help to every one. There types are immediately did
not take action because firstly they can observe social problem after them take appropriate steps
and innovate some thing new.
Modulation Entrepreneur – These types of entrepreneur happy with present things and
can not modify any type of changes in products. They are reluctant to changes and do not want to
make any changes in the organization.
Entrepreneurship
Entrepreneurship is the disposition to take risks and develop, coordinate and carry off a
business venture in a competitive global market place that is perpetually germinating. In this
manner include any individual person who become entrepreneur like innovators, investors,
pioneers and leaders. They are at the position of social and technological motion – in their
forwards think and in their fields.
Types of Entrepreneurial Ventures
In present time, there is different types of entrepreneurial ventures which is defined types
of entrepreneurship in order to know about them -
Scalable Entrepreneurship – There entrepreneurs start a company knowing from day
one that their vision could change the world. Scalable start-ups are what element valley
entrepreneurs and their ventures investors do. They are mainly work to attracting investors and
hire the best and brightest people (Dees, 2017).
Small Business Entrepreneurship – In current time, about 8 million people are starting
their business and make up 99.7% of all companies and employ 505 of all non government
workers. In small business consist of hairdressers, plumbers, electricians, travel agents, grocery
stores etc.
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Large company Entrepreneurship – In large company process life cycle is infinite and
it will grow through continue innovation, offering new products which are related to core
products. They are trying to innovate according to customer taste and preferences, new
technologies, new competitors etc.
Social Entrepreneurship – In this type entrepreneurship, innovators can focus on to
solve problems of society by produce different products and services. It is similar to scalable
start ups because it is based on change of world. They may be hybrid, profit, non profit.
Relationship of ventures with its typologies
These all types of ventures are related with different typologies such as social, lifestyle
and scalable entrepreneurship. It is connected to development and improvement of the typology.
There are mentioned different types of typologies in the relation of ventures for running market -
Types of typology
It is categorised on the basis of people, things and other commodities to provide help of
different researchers and other for understand elements and factors (Drucker, 2014).
Lifestyle Ventures – There is instantly getting benefits and survive business in effective
way. These types of ventures mainly establish out of city to work in peacefully area.
Managed Growth ventures – It is mainly connected to big type of enterprises and a
businessman can adopted these types venture because of earn much more money. It can provide
success and growth in order to using money as earn profit for useful things.
Survival Ventures – In this ventures, they can provide basic needs to employees and their
families members as per requirement. There is consist of small business like internet cafe,
grocery store (Hitt and Duane Ireland, 2017).
P2 The similarities and differences between entrepreneurial ventures
Businesses Similarities Differences
Large and Scalable
Entrepreneur
 The main purpose of
both type of
entrepreneur is to
introduce changes in
the structure. Both
represents merchandise
 Large organisation
invest more due it's
high capacity.
Therefore there risk of
major losses and
increased chances of
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and market.
 Specific aim such
ventures is to handle
various business and
acquiring benefits after
generation of earning
from concerned
activities.
maximising profits.
 Scalable entrepreneur
does not have large
financial resources.
Hence it is attached
with low risk and low
profits.
 Large venture can take
decision on the basis of
long run earning and
easily invest but
scalable can believe to
aid firms for develop
their new ideas.
 Scalable enterprise
believes in making
money on the other
other hand large
entrepreneur believes
in changing the world.
Small and social
entrepreneurial
 Such business different
approaches but similar
aim which is to provide
healthy products to
consumers.
 Both types
entrepreneurial
thinking about new and
innovative ideas in
order to get effective
results.
 Small organization that
type business which
can working for
achieving their goals
and make money while
social enterprises can
provide facility to those
people who need to
this.
 Main purpose of snall
enterprises to provide
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facility to local
consumer and earn
money on the other
hand social venture can
help to those people
who suffering critical
situation.
 Social venture provide
help to every people
and help to nation for
solving social problems
and issues.
Female and male
entrepreneurial
 The basic elements of
survival for both the
enterprise is by
achieving goals of the
organisation.
 Male and female face
similar difficulties.
 Both have equal
knowledge and skills
 Both are working
together to achieve
goals and objectives of
a company.
 Here male faces less
problems in
comparison to female
counterparts. Female
entrepreneur uses more
sensible approach and
known to be more
wise.
 In decision power
making process male
venture easily take
effective decision but
female venture can
consult to many people
after then take decision.
Lifestyle and serial Venture  Both ventures are
following same aims
which is depended on
 In many ways lifestyle
venture can different
from serial venture
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market places and
generate new ideas for
business.
 There is similarity
between both ventures
are provide bright and
effective ideas.
because it is not merge
with small enterprises
but serial venture can
merge with any type of
enterprises. It can also
grab all type of
opportunities in order
to get success of an
organization.
 Lifestyle venture can
provide those facilities
which are important for
human and support for
different products and
services. But central
venture is only applied
suitable ideas which
can help to achieve
business goals and
objectives.
M1 Diverse range of entrepreneurial ventures to demonstrate an understanding of
entrepreneurship in both public and corporate sector
An Entrepreneurship can play different role according to sector because roles and
responsibilities can changing. There is mentioned entrepreneurship in different sector -
Entrepreneurship in Public Sector – Public sector is the part of economy which is
working for public welfare and develop the society being its their main purpose. Most of the
entrepreneurial who is connected with public sector are including as non profitable. There is
mentioned public venture such as British petroleum, National health service and several banks
like HSBC and many more.
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Entrepreneurship in Corporate Sector – Corporate sector also known as private sector
which is very important part of economy. It is controlled by UK government in order to get taxes
and incomes from them and build strong economy. Private sectors run for long time and provide
their services to consumer. In private sectors includes Food & beverage, hospitality and private
banks such as Weatherbys bank.
D1 Examine the scope, development and growth of entrepreneurial ventures
There is analysis of scope, development and growth of entrepreneurial venture in the
subject of public venture and private venture -
Public venture – From last few year public sector has been achieved amazing success
and growth. The public venture can pay more than to private venture and it was also providing
many types of benefits which is related to basic needs of employees. They are providing
allowances such as sick pay, travel allowances and holiday entitlements etc. As compare to
private venture, it is more stable and provide security to their employees (Scarborough, 2016).
Private Venture – In public ventures are getting many benefits which can not provided
by public sector. Mostly people works in private companies and get success with broad
opportunities. The private venture is open to all and provide opportunities to show their talent
and get job. The private venture provide job opportunities, more pay increments and more
opportunities for promotions.
P3 Interpret and assess relevant data and statistics to illustrate how micro and small business
impact on the economy
There are several types of enterprises which is affected to social activities and maintain
balance business and social life. There is showing impact of small business on the economy -
Micro Business – In these types of corporation are having one or more owner which can
control and monitor their business to achieve more success. They can recruit to new talent for
run their business long time and they can apply their own way for develop new skills (Kerr,
Nanda and Rhodes-Kropf, 2014).
Medium Size Business – In presenting time businesses are mostly categorised in small
and large size business but people also concentrate on medium size organisation. There is not
providing any particular definition of this type organisation. In this type organisation about 200
to 400 people are working.
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Small Business – The owner of this type of business an individual person who started
their business to earn money for improve their higher level of skills. These types of enterprises
are not working on level and can not provide different resources. They are working in limited
criteria and start business to getting more advantages.
Illustration 1: Role of Start-ups and Small Businesses on Economy, 2018
Influence of economy on small and micro enterprises
Micro, small and medium size organisation can impact on marketing activities and it will
affected to economy of nation-
Local Impact – There are showing influence of small and micro business on local areas in order
to focus demands of citizens as per requirements. Small business mainly focus to local consumer
who is running on time and fulfil demand of local consumer. With the help of micro business
provide employment top local citizens in order to achieve success.
Regional impact – Small and micro enterprises can show impact on societies in positive and
negative way. At the time of establishing business they can fulfil demand of consumer and
understand their taste & preference. Many businesses can provide quality goods in starting after
some times they gave inappropriate quality goods which shows negative way (Koellinger and
Roy Thurik, 2012).
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National impact – In current time Mostly peoples wants to establish their business so it will
show impact as small business numbers continues increasing and affected to national economy.
They are building strong economy and reduce unemployment from nation and every one wants
to in depended.
P4 The importance of small businesses and business start ups to growth of the social economy
Small Business – The small business is an independently owned and conducted company
with relevantly small turn over and staff numbers. These business are remain in limits size as
well as limited revenue depending on the industry.
Start Ups – It is known as young company which is beginning for develop and it will
categorised in small, medium and large scale. These companies are offering products and
services not in market because they can believe in being offered in an inferior manner.
Importance of small business and start ups
In current time there is researching that small business and start ups both are importation
for social economy because they are fulfilling requirement of consumers as per requirement. Social economical development – With the help of small business and start ups can
develop social environment because they are provided those things which is needed to
local consumer. When conduct survey in united kingdom it is getting result about 6
million people are connected with them. With the help of them create and develop strong
economy (Martin, McNally and Kay, 2013). Effects on taxes and revenues – It will show affects on taxes and revenues because when
UK peoples can start their business and open small business so economy will be build
strong and increase revenue of person. So it will provide benefit in taxation and UK
government achieve more tax and utilise in benefit of country peoples. Effects on poverty and many other factors – In the manner of poverty there is showing
positive impact on poverty because they can provide job to UK citizens and they can
become in depended. If in country take place as slow growth of economy so small
business and start-ups help to reduce poverty from nations.
 Improvement on social economy – It is the main factor of of social economy because it
can help to improve social economy of the UK. Some industries are working as NGO
which provided different types of resources at least prices. It will provide regular income
to among employees who are recruit in particular firms.
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 Create Employment – It will create employment for UK peoples in order to build strong
economy and reduce unemployment. When small business and start-ups started that time
they needed many peoples which is provided job opportunity and hire them.
M2 The differences small, medium and large businesses to make to the economy, applying
relevant data and statistics
Small Scale Businesses – The Small scale businesses are the backbone of UK economy
because mainly entrepreneurs are starting from small business. These types of enterprises can
provide 15.2 million jobs to people.
Medium Scale Businesses – This types of businesses are less than to 10% because most
of the peoples are connected with small and large enterprises. In this business includes
accountants who will take different clients and maintain their accounts in order to show their
position of business. There is on;y accounts 12% of employment and 155 of turnover (Santos,
2012) .
Large Scale Businesses – These types of business work on broad level and recruit much
more people to conduct business activities. In this business about 250 employees are accounted
in large scale organisation. It is providing about 40% employment to UK people and get 495 turn
over.
D2 Examine how small business have an impact on different levels of the economy
Small scale business have a large impact on every level of economy. It will help in
accomplish financial independence, motivate for innovation and create employment. There is
getting that one third of UK businesses are located in London for example 1.2 million. It has
been getting that wales saw a fall by 65 in the number of businesses last year, whilst UK saw an
overall raise by 4%. In addition a national impact on the economy after then understand the
global impact of the small type business on the economy. The national stability is wholly related
to stability of economy and financial strength is derived from such business. Different types of
businesses can allows both citizens and government to obtain the goods and services they need
for their growth.
CONCLUSION
From the above report it has been concluded that entrepreneurship is a continuous
process where an individual person takes effective decision and bearing risk. According to
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present scenario small business can play important role in the economy and helps to fulfil
requirement of citizens. In this report entrepreneurs have different personality which can depend
on different situation. It will provide different types of benefits which shows impact on local.
National and regional economy.
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REFERENCES
Books and Journals
Acs, Z. J., Audretsch, D. B., Braunerhjelm, P. and Carlsson, B., 2012. Growth and
entrepreneurship. Small Business Economics. 39(2). pp.289-300.
Audretsch, D., 2012. Entrepreneurship research. Management Decision. 50(5). pp.755-764.
Dees, J. G., 2017. 1 The Meaning of Social Entrepreneurship. In Case Studies in Social
Entrepreneurship and Sustainability(pp. 34-42). Routledge.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Hitt, M. and Duane Ireland, R., 2017. The intersection of entrepreneurship and strategic
management research. The Blackwell handbook of entrepreneurship, pp.45-63.
Kerr, W. R., Nanda, R. and Rhodes-Kropf, M., 2014. Entrepreneurship as experimentation.
Journal of Economic Perspectives. 28(3), pp.25-48.
Koellinger, P. D. and Roy Thurik, A., 2012. Entrepreneurship and the business cycle. Review of
Economics and Statistics. 94(4). pp.1143-1156.
Landström, H., Harirchi, G. and Åström, F., 2012. Entrepreneurship: Exploring the knowledge
base. Research Policy. 41(7). pp.1154-1181.
Martin, B.C., McNally, J.J. and Kay, M.J., 2013. Examining the formation of human capital in
entrepreneurship: A meta-analysis of entrepreneurship education outcomes. Journal of
Business Venturing. 28(2). pp.211-224.
Santos, F.M., 2012. A positive theory of social entrepreneurship. Journal of business ethics.
111(3). pp.335-351.
Scarborough, N.M., 2016. Essentials of entrepreneurship and small business management.
Pearson.
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