P4 Importance of small business in growth of social economy

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 Types of entrepreneurial ventures and its relation with typology of entrepreneurship.........1
Typology of entrepreneurship and its relation with entrepreneurs.............................................1
P2 Similarities and difference between entrepreneurial ventures...............................................2
P3 Interpretation of statistics for showing impact of micro and small business on the economy
.....................................................................................................................................................4
P4 Importance of small business in growth of social economy..................................................5
P5 Skills and characteristics traits of successful entrepreneurs which differs from other
business managers.......................................................................................................................6
P6 Asses how the aspects of entrepreneurial reflect the entrepreneurial motivation and
mindsets.......................................................................................................................................7
P7 Background and experience can hinder or foster entrepreneurship.......................................8
CONCLUSION................................................................................................................................8
REFERENCES .............................................................................................................................10

INTRODUCTION
Entrepreneurship is the activity to design and organize a new venture initially at small
stage. An entrepreneur take risk and combine man, machine and material in order to generate
profit from this operation or activities. A small business is flexible and adopt changes quickly as
they have small number of employees. With this changes they fulfil demand or need of customer
in effective and efficient way (Sahut and Peris-Ortiz, 2014). The term management is defined as
allocation of different activities by which an organisation operate their activities. In present
assignment types of entrepreneurial venture and relation of entrepreneur with different type of
typology of is discussed.
P1 Types of entrepreneurial ventures and its relation with typology of entrepreneurship
Entrepreneurship is the process by which new start-ups are generated in market. In this
task different type of entrepreneurial venture are mention as follow:
Small entrepreneurship business- The small business operate their activities with small
number of employees. It is owned by an individuals and arrange essential resources from local
market. Usually small business are sole proprietorship that run by single person.
Large entrepreneurship business- The large business operate their business in different
countries. This organisation work with a purpose to bring innovative products in society. For
this they update the technology to manufacture their products.
Scalable start up business- Entrepreneurs that start their business with motive and vision
to change the world. For this they get support from venture capitalist and implement those
resources by which company produce inferior quality products or services to offer their
customers.
Social Entrepreneurship- The motive of social entrepreneurs is to create those products
by which they solve the needs and problem of society. With this they raise the standard of
society and update customer to consume better product or service. Usually this organisation work
not to earn profits but to develop society.
Typology of entrepreneurship and its relation with entrepreneurs.
Lifestyle venture- The lifestyle venture is established and operated by an entrepreneur
with a aim to sustain new start up in company. As it help an entrepreneur to earn sufficient
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income. It help them to live lavish lifestyle and to explore opportunities that have potential to
grow business at local or global level.
Female venture- As the word female state that it is operate by women. Major purpose of
this typology is to match with company objective. Apart form this female entrepreneur relate
with its employee's. As they develop or build healthy relationship between employee's and
management (Oni, E.O., 2012).
Man venture- This venture is totally control and operate by the man. Usually business
are hard to operate in competitive market. So in this case man venture has more economic
strength because they are aware about economic risk. It help them to take effective decision by
which they overcome upcoming threats.
P2 Similarities and difference between entrepreneurial ventures
Similarities
Basis Small business Social business Large business
Purpose Most of the small
business work to earn
enough amount of
profit for their
business. Like LM
engineering ltd.
Develop budget for
small business that
help them to achieve
their goals easily.
This business houses
are operate to develop
those product or
service by which they
solve issue in
company. As in this
case company solve
this issue by analysing
customer need.
In this business the
main purpose is to get
more amount of
profits. Along with
this they want to
develop innovative
products by which
they increase more
number of customer
for their business.
Scale This business are
operate at small level
in this company invest
little amount as they
operate business in
local market or small
area. Like LM
Social business are
operate under different
market. In this they
find the solution of
particular society. As
it is hard to solve
problems of whole
Large organisation
cover large area of
market. As this help
them to cover local
and inter-national
market both, like M&S
developed expand
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Engineering limited
operate their business
in local market.
industry. their store in other
countries also.
Differences
Basis Small company Social company Large company
Market The market that is
cover by small
business is minimum.
They offer their
products in limited
market. Example- LM
Engineering ltd. Earn
required amount by
delivering its product
in local market.
Large number of
individual live in the
society. In this most of
them face similar need
of product. So Social
company reach in all
market. Where the
product satisfy their
customer need.
Large company
perform their business
activity at inter-
national level. They
grow and expand their
business among all
over the world.
Customer Small business has
more number of
customer and they
want to earn enough
amount of income by
supplying customer
need.
In social business
management work
with motive to solve
problems of all
customer or society
rather than to earn
profit.
Large business house
develop products with
motive to provide
update products to
customer. This help
them to earn more
amount of profits.
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P3 Interpretation of statistics for showing impact of micro and small business on the economy
Business organisation play essential role in development and stability of an economic. As
the small or micro organisation contribute more amount of money for the development of
infrastructure specifically in a country. In SME company explore different ways by which they
sustain economy of country. Under this task several data and stats are mention which show
importance of micro and small company:
Micro- The micro enterprise are those in which less than ten number of employee's work
to combine the goals of company. Usually this enterprise are expert to deliver their products or
service in small or local market. The above chart that there 18.9% micro enterprise operate their
business with in UK (Obschonka and Fisch, 2018). As it help them to generate employment in
the country where they are operating their business. This also improve the living standard of
society as now people has more purchasing power which help them to buy products from the
company.
Small- Under small organisation small number of employee's work together as a team. In
small business company has less turnover and cover small market to operate a business. As small
business has turnover less than five million. It help company to generate sufficient amount of
revenue that support government to provide better facility to individuals of that country.
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 Nineteen percent of employee's are working with SME employees. This was one percent
below in the year 2016. this organisation are working with company with profit, non-
profit and NGO to work with company.
 10% of employment are provide with social enterprise of company. In this there are
several employee's are benefited with customer. Along with this 16% of employee's work
with non-profit organisation (Mathias and et. al., 2015).
 29% of employee's that work for SME bring out external information by which they
produce more result for company. As if compare this data with large companies. This
result that economic development that provide by SME is more that also bring
improvement in company products.
National impact- As SME is developed or setup in business. Their are large number of
employment opportunities are raise in that country. Total employment that is provide under
private sector with SME is more than 60% this impact on growth of economy as well as it
increase turnover in company rate.
Regional impact- For the growth of economy and to complete operational activities for
business there are large of local employee's work for company. Apart from this GDP of country
is also high that show development of local employment.
P4 Importance of small business in growth of social economy
In Present scenario small business work as keystone in the growth of social economy.
This business create positive environment and help to bring more investment in country like UK.
Their are large number of employees are working with company that help to gain large
customers. Several points that show importance and provide support in growth of social
economy are as follow:
Economic growth- With the start of new venture large number of employee's work with
company to complete their activities (Landström, Harirchi and Åström, 2012). This help to gain
more result with this company make strategy that help them to gain more factors. For this
company make strategy by which effective decision are easy to take by company. Example- the
government of UK collect good amount of tax from this SME and it help them to develop
infrastructure of their country.
Improve the standard of living- Small business play an essential role in the development
of country. With this different number of employ work for development of company by
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becoming an active member of company. As small business develop need of customer and
manufacture those products as per need or demand of customer. So the management of small
business work with more efficiency to provide inferior quality products to their customer. As
with employment the living standard of company will improve because they are employed and
have more purchasing power to buy product.
Job creation- The SME are providing more employment opportunities to the country. To
operate a business large number of jobs are required such as finance related jobs, marketing and
hr related job. So in this case company has to hire different employee's that work for them and
achieve the goals of company (Kulikova and et. al., 2016). For this company also provide
training to its employees so that better result can be achieved by company.
Reduction in poverty- The stable economy of country help to reduce the poverty of
business. For make an economic stable small business perform major role by increase GDP. Fo
this case different members of company work and make task stable by increase productivity in
their performance. As with this company create effective result with develop effective decision
that also result to bring more productivity.
P5 Skills and characteristics traits of successful entrepreneurs which differs from other business
managers
The different characteristic and skills that are used by entrepreneur to retain their
business for longer period. For this task Bill Gates and Peter Jones are chosen to understand this
task easily.
Characteristic of Bill Gates
Focus- To complete the work an entrepreneur is always focused about the business. In
circumstances of Bill has high concentration power and focus from the small age. In early stage
of life many software are developed by Bill that help clients to complete their work in quick way.
Traits of Bill Gate
Creativity- Bill has a unique style to complete their work, as it help them to complete task
with creativity that offer and deliver their product different from others substitute products.
Unique idea always work as the central pillar for an organisation it is useful in develop and
modify product also (Kerr, W.R., and et. al., 2014).
Skill of Bill gate
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Leadership- Bill has the power to convey other people that they work for them and help
company to achieve their result with more efficiency. This help company to expand their
business in other countries also. For this different employee's work with in team to match their
efforts with company goals.
In present entrepreneurs, Peter Jones is the leading entrepreneur that operating business in many
sectors. Characteristic is mention as follow:
Learning-Peter has learned different skills by which they are operating their business
under different sectors. This learning ability help Peter to expand business in various sector and
as well as it is useful to grow business with ability to manufacture product (Hirschi and Fischer,
2013).
Trait of Peter Jones
Faith- Employee's that work with Peter are easily convenience and see them as role
model for their business. For a successful entrepreneur it is necessary for company that their
stakeholders believe in them. As the faith increase about company or individual goodwill also
increased which help to charge premium price from customer.
Skill of an entrepreneur
Risk taking- In order to become an entrepreneur the risk is the major factor that is needed
by an individual. For this Peter develop different ways by which they overcome from this risk
and achieve goal of company.
P6 Asses how the aspects of entrepreneurial reflect the entrepreneurial motivation and mindsets.
For this task OCEAN model is implemented with help to understand market easily. It is
as follow:
Openness- Person who are open to learn new things are relate to openness ,In this case
there are Peter and Bill are always ready to learn and adopt new things by which they result for
company (Belz and Binder, 2017). Like this skill help to Peter to learn things that remove his
curiosity about new product.
Conscientiousness- This is the whole process by which an individual specifiallly an
entrepreneur learn to manage and organise the whole process for the business. Example- Bill
always complete his project in the sequential manner that help to achieve high result for the
business.
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Extroversion- This skill help the person to interact with society, this is the stage from an
entrepreneur want to develop the business. Person who has this skill are more enthusiastic for
their work and self motivated to complete their work. Example- Peter if not operating a single
business but there are several new ideas in which Peter has invested money that help to earn
good returns from this ideas or ventures.
Agreeableness- This trait is relate with the emotional stability of the entrepreneur. As it is
strength for business if they combine their emotion and business together. Like Peter and Bill are
good listener it help them to develop new idea if they work in cooperate way with their
employees.
Neuroticism- The term neuroticism include various factors such as fear, anxiety,
frustration etc. If an entrepreneur execute this skill in the nature then it contain hard and bad
result. Such as Peter has to bear the loss because as overexcitement for running the club create
negative result for company (Bacq, Hartog and Hoogendoorn, 2013).
P7 Background and experience can hinder or foster entrepreneurship
Background of Bill Gates- The successful proprietor born on October in the sand point
of US which is a area near Seattle. At early life because if family pressure Bill want to pursue
his career in law. But interest in computers bring him to gain motivation in the information
technology error.
\ Experience- After the completion of Graduation Bill start to build different software. At
the age of seventeen Bill start to manage and organize the business. The first venture that is start
by Bill is known as Traf- O- Data that was made to orgainse traffic factors with processor system
of Intel. This help Bill to overcome from the loopholes that are becoming the barrier in
Microsoft business.
Background of Peter Jones- The booming British entrepreneur born on March in they
year 1966. Jones has spent early years of in Maidenhead and has done his schooling. For this
Peter generated goals and make his own venture at age of 16 which operate its business activities
to sell and manufacture of personal computers (Alegre, Sengupta and Lapiedra, 2013).
Experience- The business which is operate under different factors like they want to
develop with several factors. Like in case of Peter Jones they are operating their business in
mobile phones, television, media and property business. So for all this Peter has faced failures in
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early life such as fail of cocktail-bar this experience help to invest in television business by
already analysing growth in media sector.
CONCLUSION
From the above report it is concluded that different types of entrepreneurial venture and
their typology that impact on entrepreneur are explain. Along with similarities and difference
between different types of ventures that define business with all scenario that are necessary to
manage. The importance of ventures is mention that show result with company that how they
support in the growth and development of economy. At last OCEAN model is implemented that
show how entrepreneurs build an enterprise on global level.
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REFERENCES
Books and Journals
Alegre, J., Sengupta, K. and Lapiedra, R., 2013. Knowledge management and innovation
performance in a high-tech SMEs industry. International Small Business Journal. 31(4),
pp.454-470.
Bacq, S., Hartog, C. and Hoogendoorn, B., 2013. A quantitative comparison of social and
commercial entrepreneurship: Toward a more nuanced understanding of social
entrepreneurship organizations in context. Journal of Social Entrepreneurship. I(1),
pp.40-68.
Belz, F.M. and Binder, J.K., 2017. Sustainable entrepreneurship: A convergent process model.
Business Strategy and the Environment. 26(1). pp.1-17.
Hirschi, A. and Fischer, S., 2013. Work values as predictors of entrepreneurial career intentions.
Career Development International. 18(3). pp.216-231.
Kerr, W.R., Nanda, R. and Rhodes-Kropf, M., 2014. Entrepreneurship as experimentation.
Journal of Economic Perspectives. 28(3). pp.25-48.
Kulikova and et. al., 2016. Features of formation and development of innovation centers
generate. International Journal of Economics and Financial Issues. 6(1S). pp.74-80.
Landström, H., Harirchi, G. and Åström, F., 2012. Entrepreneurship: Exploring the knowledge
base. Research Policy. 41(7), pp.1154-1181.
Mathias and et. al., 2015. Entrepreneurial inception: The role of imprinting in entrepreneurial
action. Journal of Business Venturing. 30(1). pp.11-28.
Obschonka, M. and Fisch, C., 2018. Entrepreneurial personalities in political leadership. Small
Business Economics. 50(4). pp.851-869.
Oni, E.O., 2012. Development of small and medium scale enterprises: The role of government
and other financial institutions. Oman Chapter of Arabian Journal of Business and
Management Review. 34(962). pp.1-14.
Sahut, J.M. and Peris-Ortiz, M., 2014. Small business, innovation, and entrepreneurship. Small
Business Economics. 42(4). pp.663-668.
Vivarelli, M., 2013. Is entrepreneurship necessarily good? Microeconomic evidence from
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Online
SME'S in UK. 2015. [Online]. Available Through: <www.cloudaccountant.co.uk>.
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