Entrepreneurship and Small Business: Types, Similarities, Impact on Economy and Importance

[Type here] ENTREPRENEURIAL VENTURES
INTRODUCTION
Entrepreneurship or entrepreneurial ventures refer to coming up with the
innovative ideas in order to formulate and design the business in effective
manner. On the other hand, small business refers to the privately owned
corporation, sole proprietorship & partnership form of business. These
businesses run on the small scale. The report will illustrate the concept of
entrepreneurship. Along with this, the report will describe the impacts of
the small business over the economy. IBM is a Multinational corporation
that provides consultancy services to the different entrepreneurship
businesses.
P1. Analysis the different types of entrepreneurial organizations
Entrepreneurial organizations refer to that organization that focuses on increasing the operations of the
business by establishing the perfect plans. These organizations use the concept of entrepreneurship in order
to add more effectiveness in their business. In order to understand this with clearance here are the examples
of the such organizations and their relationship with the entrepreneurship:
Sole proprietorship- This refers to the business entity which is owned and managed by one single person. All
the formalities related to the business has been done by the individual only. It is mandatory to register the
firm with the state. This type of business is popular as they are inexpensive in nature. The business can be
start with the low level of finance as well. As it is owned by the single individual therefore, there is no liability
protection has been acquired by the firm. And it is harder to allocate finance for the business. For example:
Social media consultant and photographer are the sole entrepreneurs. ( Buffartand et.al., 2020).
Partnership- This is the form of entrepreneurship which enables the different person or organization to
become partners and collectively perform the operations of the business. Under this, a contract has been
formed between the partners in relation of the business and all the necessary terms and conditions has been
mentioned on that contract. The partnership forms of business have certain advantages and that is, at the
time of risk the loss has been managed by all the partners. The partners are liable for bearing up the losses.
The liability of the partners is limited. For example: Maruti Suzuki is the biggest example of the partnership
entrepreneurship. And Kenichi Ayukawa is the entrepreneur.
Local &small business- Those firms that provides goods and services to the local people has been considered
as the local business. The prior focus of the business is to focus on the locality.
The local firms perform their operations in the home country and provides their services and goods in the
same country as well. This business utilize the local resources and focuses on increasing the employment rate
in the locality. This entrepreneurship works with the aim of earning profit and creating the job opportunities
for the local people. Small businesses are considered as the part pf local business. As these firms puts the
focus on providing the employment in the locality. (Kickul and et,al., 2018). The innovation in these businesses
are important so, the outcomes of the business comes in effective manner and more opportunities can be
come for employment. The capital that is needed for starting the business is generally low. Davison canners is
one of the small entrepreneurial in UK.
Global scale business- These businesses perform their activities on the large scale. The capital that is needed
for the firm is extremely high. The prior motive of the business is to earn the large amount of profit. These
organizations often perform the social ethics in order to maintain the effective goodwill in the market. The
fund for the business has been allocated from different sources. For example: issuing of shares and
debentures, inviting the general public for buying the shares and taking loans from the banks. TESCO runs on
a global level. This is the global scale entrepreneurship.
Corporate social entrepreneurship- These firms work with the sim of establishing the social agenda in the
community. The prior motive of these corporations is to create the social development in the society.
(Reukauf, 2018). Earning profit has been considered as the secondary activity. These corporations run by the
government and private organizations as well. These organizations provide the social values to the people in
the society. This are the social ventures that focus on the development of economy. For example: Social
communities and NGO are the social corporate entrepreneurship.
P2. Understanding the similarities and differences between the
entrepreneurial ventures
The concept of entrepreneurial ventures is same therefore, ventures
has many similarities and difference as well. In order to understand
this with more clearance here are the similarities and differences of
the entrepreneurial ventures.
Similarities of the ventures: All entrepreneurial ventures work with
the main motive of increasing the value of the business. The concept
of entrepreneurial is revolves on increasing the values of the business.
Whether the business is running on small or large scale in the eyes of
entrepreneurship concept, the major focus is put on increasing the
values and morals of the business. This is one of the similarity that has
been found in the entrepreneurship ventures. For example: All the
organizations are suggested to perform their social ethics towards the
community. This results in increasing the values and morals of the
business. (Gandhi and Raina, 2018). On the other hand, the other
similarities between the ventures are the new innovations are taken in
account in order to improving the business activities and increasing
the effectiveness of the businesses. Adding innovations in the ventures
keeps the business updated. And an updated business never faces the
failures.
Differences between the ventures:
There are more number of differences than the similarities in the
entrepreneurial venture. Some ventures work for only earning the
profit while social corporations focus on increasing the social values of
the society. Arranging the source of capital is another a big point of
difference between the ventures. For example: Sole proprietorship
and small business does not require large capital in order to run the
activities of the business. (Staff, 2021). On the other hand, for the
large-scale business which generally includes the big companies
requires large number of capital in order to run the operations of the
businesses. Small business can start after borrowing the money from
bank or lenders and the large-scale business needed more scope in
order to establish. Only borrowing the money is not enough for these
businesses.

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P3. Analysis the relevant data in order to know the impact of small businesses over the economy
The small business has an effective impact over the economy. In UK, the small businesses has open up many
opportunities in terms of increasing the stability of the economy. It has been found from various studies, that in the
starting of 2017 the 40% income of nation income has derived from the operations of the small businesses. Apart from
this, it has ben also found that, there are around 5.3 million micro industries in the UK. And these industries are making
high contribution towards the GDP of the nation. The micro businesses have adopted the human resources more in
terms of materialistic resources. (Julien, 2018). Therefore, these industries provide the large rate of employment to the
people. In UK the small businesses have shown the high rate of growth since 2016. And the growth has never went
down. It is on a increasing rate. The small businesses operations are mainly performed for producing the product and
services for the local people. Therefore, the demand for the products are high. These industries never failed in full-
filling the demand of the customers. The ratio of demand-supply never got mismatched. This results in increasing the
stability of economy.
P4 Determining the importance of small businesses and business start-ups to the growth of the social economy
The small businesses and the establishment of the new business leads to the growth of social economy. As the small
businesses provides the opportunities of employment for the local people this results in reducing the rate of
unemployment and the social development of the people takes place. On the other hand, new business in the economy
leads to open up many opportunities for the public. The more operations takes place in the economy as a result the
more income is generated and higher contribution towards the GDP has been made. This results in increasing the
budget of the government. Thus, there are many plans has been organized by the government in terms of establishing
the social development of the people. The small businesses are developed with the aim of providing benefits to the
localities. For example: Davison Canners contributing towards the GDP of the nation.
CONCLUSION
The above report concluded that the entrepreneurship plays the vital role in the success of the business. Different
types of ventures work with the different motive and all of them are guided by the concept of entrepreneurship. Along
with this, the report also describes the importance of small businesses over the economy. The small businesses play
the mandatory role in increasing the effectiveness of the economy. Apart from this, the report also highlights the key
features of the entrepreneurs that results in reflecting the motivation and positive mindset.
REFERENCES
Buffartand et.al., 2020. Even winners need to learn: How government entrepreneurship programs can support innovative
ventures. Research Policy. 49(10). p.104052.
Cairney, P., 2018. Three habits of successful policy entrepreneurs. Policy & Politics. 46(2). pp.199-215.
Gandhi, T. and Raina, R., 2018. Social entrepreneurship: the need, relevance, facets and constraints. Journal of Global
Entrepreneurship Research. 8(1.). pp.1-13.
Julien, P.A. ed., 2018. The state of the art in small business and entrepreneurship. Routledge. Reukauf, J.A., 2018. The
correlation between job satisfaction and turnover intention in small business (Doctoral dissertation, Walden University).
Kickul,and et,al., 2018. Designing with purpose: advocating innovation, impact, sustainability, and scale in social
entrepreneurship education. Entrepreneurship Education and Pedagogy. 1(2).pp.205-221.
Staff, O.P.N., 2021. Entrepreneurs to Watch. Optics and Photonics News.32(10). pp.32-45.

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Entrepreneurship basically involves an idea and proper planning to settle up the business but on the other
side small management means an individual or a group of people manage their own business and all the
decision-making activities are depended on them which creates a direct impact on the procedure. In this
report, it has been discussed how the entrepreneur makes plan and what acts impact on the economy of
small management.

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Let's discuss the traits and skills of a businessman that can help in being successful. There are three major
traits and skills to become a successful entrepreneur.