Importance of Small Businesses and Start-ups for Economic Growth

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Types of entrepreneurial ventures and its relationship to different typology of
entrepreneurship.....................................................................................................................3
P2 Various similarities and differences in between various entrepreneurial ventures...........5
TASK2.............................................................................................................................................7
P3 Interpret relevant data on how micro and small businesses impact economy..................7
P4 Importance of the small businesses and start-ups for the growth of economy.................9
TASK 3..........................................................................................................................................10
P5 Characteristics and traits of successful entrepreneurs that differentiate them from others10
P6 Aspects of entrepreneurial personality reflecting entrepreneurial motivation and mindset12
TASK 4..........................................................................................................................................13
P7 Background and experiences hindering or fostering entrepreneurship...........................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
A person who take comes up with a new idea or innovation in order to develop a business and
undertakes the required risk involved with it in order to earn profit from it is called an
entrepreneur. The ideas which an entrepreneur introduces in market are those which have not
been introduced by any business organisation before (Burns, P. and Dewhurst, J. eds., 2016). The
initiation step of an entrepreneurship is when an idea is generated and then its execution in a real
business plan is developed. Entrepreneurship consists of a number of steps such as designing,
producing as well as introducing a new product or service in the marketplace. In context to this
report Tesco is taken under consideration. The managers of Tesco are carrying out a research on
small business and all other type of businesses. In this report description of a number of different
entrepreneurial ventures have been mentioned. There are also some relevant data given in report
which mentions effect of small and micro businesses in economy. The second part of this report
consists of two case studies about two entrepreneurs who developed businesses. The report
discusses about their behaviour, characteristics as well as traits. Their background and their
upbringing and how did it affect the decision they took so far.
TASK 1
P1 Types of entrepreneurial ventures and its relationship to different typology of
entrepreneurship
Opportunities as well as innovation in order to run a business in an economy are known as
entrepreneurial ideas. In this entrepreneur take risks in order to generate high profits. The risk
taken in such businesses are usually higher than those in the business. These ventures can be
specified into four different categories. Those categories are mentioned below:
Large company entrepreneurial venture: These companies are related to the products which
they already have in market. The product which they launch are somehow related to the already
existing products they have in the market. They use latest technologies and innovations in order
to fulfil unrecognised needs and wants of their customers. Expanding their businesses and
growing it is the major motive of such ventures. They also many times over take or purchase
other companies in order to grow. Google, Microsoft, YouTube are major examples of such
ventures.

Scalable entrepreneurial venture: these ventures are the one who come in the market with a
new idea, concept, revolution in order to change the world. They aim much bigger than any other
venture in the market. There is international business is carried out by these ventures. They need
skilled and well-trained human resources for their business. They look for convenient business
models which can enormously boost their profits. Facebook, online retailing, online shopping
applications, Instagram can be said to be major examples for such ventures.
Social Entrepreneurial ventures: The products and services brought in by these ventures in the
society are usually to deal with the issues arising in market. Major motive of these enterprises
hard to bring in peace and make the world a better place to live. These include profit as well as
non-profit organisations or it can be a hybrid of both of these organisations. Safe point trust can
be an example of such venture. This organization focuses on manufacturing syringe which can
be reused. For this purpose they have collaborated with major small hospitals and clinics around
the world who cannot afford expensive treatments as well as inventories for their organization.
Till date they have been successful in manufacturing more than 4 billion syringe and have
circulated it in more than 40 countries around the world (Burns, P. and Dewhurst, J. eds., 2016).
Small business entrepreneurial ventures:There has been total 90% of such enterprises in US.
These enterprises are small ventures and they usually recruit the employs which are non-
governmental. Major motive of such organizations is to fulfil the day to day needs. The capital
required to start such a business is very low so that interest could be easily paid out of profits
which are found from such business. In order to set up such a business entrepreneur generally
seek help from their friends as well as families. Major examples for such ventures can be
carpenters, consultants, plumbers and many such more.
These ventures have successfully generated some typologies in business as well. The
typologies generated from this business have a great impact on running of the business as per the
opinion taken by entrepreneurs who run this business. Some of the major typologies are assessed
below:
Various typologies of entrepreneurial venture:
A typology can be said to be differentiating a number of things on the basis of their
structure, plan, style and many more. Major typologies in an entrepreneurial venture are
mentioned below: