Importance of Small Businesses and Start-ups in the Social Economy

Entrepreneurship &
Small Business
Management

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different types of entrepreneurial ventures and typology of entrepreneurship......................3
P2: Explore the similarities and differences between entrepreneurial ventures..........................3
M1: Investigate a diverse range of entrepreneurial ventures to demonstrate an understanding of
entrepreneurship in both the public and corporate sector............................................................3
TASK 2............................................................................................................................................4
P3: Interpret and assess relevant data and statistics to illustrate how micro and small
businesses impact on the economy..............................................................................................4
P4: Explain the importance of small businesses and business start-ups to the growth of the
social economy.............................................................................................................................4
M2: Evaluate the differences small, medium and large businesses make to the economy,
applying relevant data and statistics.............................................................................................4
TASK 3............................................................................................................................................4
P5: Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers.............................................................................................4
P6: Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mindset..................................................................................................................................4
M3: Explore and examine different lines of argument relating to entrepreneurial
characteristics...............................................................................................................................4
TASK 4............................................................................................................................................5
P7: Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship...........................................................................................................................5
M4: Analyse the link between entrepreneurial characteristics and the influence of personal
background and experience to specific successful entrepreneurs................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Entrepreneurs are the persons who with the use of their creativity and innovation invent
or generate new idea. They try their level best to convert that idea into idea into reality for
satisfying the needs and wants of the society along with a motive to earn money. They are said as
the backbone for the economy as they helps into the growth of economy by generating more
employment, raising the standards for people through innovations, bringing technology
development and much more. The scale of such business is generally small and medium but they
still prove to be a great help for the economy. The report discuss about various types of ventures
and the typologies of these entrepreneurial ventures. The report also includes the similarities and
difference between various types of entrepreneurial ventures (Acs and et. al., 2012).
Interpretation of statistics is also included into the report which shows the impact of micro and
small business on the nation’s economy. Furthermore, this report also discusses the importance
of these small businesses and business start-ups for the growth of economy. The characteristics,
traits and skills of a entrepreneur is also been included into the report. At last the report covers
how an entrepreneur background, behavior, attitude and all contributes in becoming a person
who they are today.
TASK 1
P1 Different types of entrepreneurial ventures and typology of entrepreneurship.
Entrepreneurs are the people who are liable for framing new business firms for providing their
items and administrations to the clients consequently of cash. Entrepreneurial ventures are
the organisations which are set up by the entrepreneurs so they can procure cash and benefit
for carrying on with their life serenely. These endeavours have their own motivation for
which they are shaped by business visionaries. There are different kind of innovative
endeavours which are divided based on their administrations, size, degree and reason.
Entrepreneurial Activity
Entrepreneurial activity alludes to the procedure of organisations wherein the organisations
produce their incentive by making monetary exercises. These exercises are related with
investigation of new and exceptional thoughts which can upgrade the development and
improvement of the endeavour. These novel thoughts are changed over to reality so as to give the
items and services to the clients through their business (Acs, Autio and Szerb, 2014). These
thoughts for upgrading the work open doors for neighbourhood individuals of the nation in
which the business is working.
Types of ventures

Small Business - These sorts of ventures has gigantic measure of representatives, capital, size
and activities. These kinds of ventures are shaped for acquiring benefit consequently of items
and services which are given by the firm. The size and extent of these ventures is thin as they are
working at little scope and gives their items and services to special markets. These business are
shaped by utilizing the associations and sole ownership. The reason for improvement of these
business is to procure benefit and vocation. These organizations has under 50 representatives
with total assets of €2 million (Baum, Frese and Baron eds., 2014). A few models incorporate
Orion electrotech restricted, Clarasys and so on which are private area based firms and
Travelodge which exist in open part.
Large Company - These undertakings works at an enormous level because of which they
have no restrictions in their activities, size, scope number of representatives and so forth.
Such firms gives their items and services at immense level to the clients. These associations
additionally grow their business activities at worldwide level. These associations needs
immense measure of cash for working the business easily. These organizations continue in
the market due to having experience of working the business for quite a long while and
capacity to adjust to changes. Example- Tesco, M&S and so forth which are private firms
while organisations, like , NHS is open division firm.
Social Enterprises - These kinds of business are framed with the end goal of
improvement and welfare of society. These organizations grow new thoughts which can be
utilized by the general public for their turn of events and development. These businesses has
huge scope as they give the better chances to neighbourhood individuals with the goal that
they can improve their expectation for everyday comforts. Such organizations are not
centered around gaining benefit. These give a significant commitment to the improvement of
economy anyway these runs locally. A few examples incorporate, Save the youngsters etc.
Characteristics of Entrepreneurship
Entrepreneurial ventures involve various characteristics which are associated with the
growth and development of business to make the business relevant. Some characteristics are
as follows:
Lifestyle Enterprise - These sorts of ventures are shaped for improving the expectation for
everyday comforts of the local individuals of a spot in which the organization is working the
business (Bosma and et. al., 2012). These organizations provide openings of work to the
localities just as their items and services to the individuals of that place.
Growth Firms - These sorts of organizations are framed for acquiring the most extreme
benefit and income. The entrepreneurs of such firms attempt to enhance new ideas through