Impact of Small and Micro Business on Economy

This article discusses the impact of small and micro business on the economy and the significance of small business and start-ups to the growth of the social economy. It explores the types of entrepreneurial ventures and their relationship to different typologies of entrepreneurship. It also describes the impact of small and micro business on the economy using statistics data. Additionally, it determines the significance of small business and start-ups to the growth of the social economy.

Entrepreneurship and
Small Business
Management

Table of Contents
Entrepreneurship and Small Business Management............................................................................1
INTRODUCTION................................................................................................................................3
TASK 1.................................................................................................................................................3
P1 Types of entrepreneurial ventures and its relationship to different typology of
entrepreneurship...............................................................................................................................3
TASK 2 ................................................................................................................................................4
P2 Similarities& difference between types of entrepreneurial ventures .........................................4
P3 Describe impact of small and micro business on economy by use of statistics data..................6
P4 Determine the significance of small business and start-ups to the growth of the social
economy. .........................................................................................................................................7
TASK 3.................................................................................................................................................8
P5 Examine the traits, characteristics and skills of successful entrepreneur ..................................8

P6 Analyse how aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mind set............................................................................................................................................9
TASK 4...............................................................................................................................................10
P7 Analyse how experience and background affect the entrepreneurship ....................................10
CONCLUSION:.................................................................................................................................11
REFERENCES...................................................................................................................................12
BOOKS& JOURNAL:..................................................................................................................12

INTRODUCTION
An entrepreneur is an individual who bring the innovative business plan and implement
those plan for earning more and more profit for a longer period of time is considered as
entrepreneur. In addition to this, they bring only that idea which is not used by any other
entrepreneur. They focuses on converting their ideas into reality in order to achieve goal and
objective within stipulated time period. Along with this, they launch innovative products and
services in the market. In context of Tom Mercer, he introduces the new entrepreneurship
venture named as MOMA FOODS. It is one of the well-established company which deal in
food and beverages across the country. This report discusses regarding entrepreneurship,
different type of new ventures as well as discuss about the skill and knowledge is required to
become an successful entrepreneur. Beside from this, it shows through the support of family the
individual can start a new business venture in order to earn profit.
TASK 1
P1 Types of entrepreneurial ventures and its relationship to different typology of entrepreneurship
The entrepreneur bring new idea and plan to operate its business in an effective manner.
They emphasised on translate their business plan into realism. In addition to this, the
individual take high level of risk in order to earn more and more profit. There are four kinds
of entrepreneurial venture which is going to be mentioned below:
Large Company Entrepreneurial Venture: This kind of companies bring the products
which are connected to the already prevailing products within market. This type of products
are introduced to satisfy the need and wants of buyer in order to gain competitive advantage
over rival firm. In addition to this, the primal purpose is to boost their enterprise for gaining
more and more profit. There are different example of such type of entrepreneur venture like
Google, Microsoft and many more (Mohammad, 2019).
Scalable Entrepreneurial Venture: This type of entrepreneur bring the new plan and idea
for achieving their vision within given time period. They emphasised on converting their business
plan into reality. In assistance of this, they recruit talented and capable employees in order to
accomplishing goal and objective in stipulated period of time. There are different example of this
kind of venture such as Facebook, Instagram and so on (Oni, 2019).
Small business Entrepreneurial Venture: There are Large number of small businesses
operate within marketplace. Their main objective is to earn more and more profit buy satisfy the
need and want of consumer in appropriate way. Along with this, the small businesses generally take
help from their family as well friends in order to introduce new business in marketplace. It included
plumber, carpenter an many more. They want to introduce their small business for enhancing the
profit in the market.
Social Entrepreneurial Venture: This kind of enterprise are considered as a both profitable
as well as non- profit business organisation They provide the innovative and quality products to its
customer in order to increase their standard of living. In addition to this, they work with small
clinics and give treatment to the patients because it is not possible for individual to take costly

treatment. The best example can be seen is Safepoint trust.
These kind of enterprise plays an important role in launching the different kind of business
typologies. These typologies imposes direct impact on the decision which is taken by the
entrepreneur. In addition to this, there are different business typologies which are going to be
discussed below:
Aggressive growth Ventures: In this type of venture, they implement the latest technology in
order to provide innovative products and services to its customer. The main purpose is to retain in
the marketplace for a longer time period. Also they want to achieve future success and growth in
short span of time (Gielnik, 2017).
Lifestyle Venture: Herein, the main purpose of business is to satisfy the need and wants of
its user rather than focus on expanding its new business venture. In addition to this, they do not
have large number of workforce. The enterprise which operate their business in single place is
considered as a lifestyle venture.
Managed growth Ventures: This kind of enterprise focuses on boosting their business at
global level. The main purpose is to gain more and more profit in order to expand their business
across the world. In addition to this, they recruit high skilled and talented employees in order to
achieve future success and growth of company. Beside form this, they focuses on those employees
who bring innovative products and services within marketplace. The best example of Managed
growth venture is Scalable business (Cornée, 2019).
Survival Ventures: They emphasised on fulfilling the basic need and wants of individual
person. In addition to this, they focuses on increase the standard of living of people living in society.
The entrepreneur emphasised on survival and maintenance of business in better way, The example
of survival venture is small businesses.
TASK 2
P2 Similarities& difference between types of entrepreneurial ventures
Entrepreneurial ventures are those who start their own business or start-up with motive of
profit earning. Starting a whole new business require time, cost and assets. A proper market research
is to be done when going with this process. Many barriers are also involved such as government
involvement, rules & regulations, legislations etc. Models, theories and concepts are used by
marketers or say businessman to overcome with challenges and threats as well as to run the
functions and operations of business smoothly. Rise in business sector leads to higher economy
status and rate of a country. Competition in the market is rising at rapid level so strategies and
tactics need to be implemented to counter rivals& competitors. A successful entrepreneur is one
who is flexible and ready to take the risk at every phase of life. To sustain in the market, efficient
resources, skilled staff and employees, clear path goal are essentials and have to maintained and
managed in proper way. Entrepreneurial ventures are important because they help in providing and
fulfilling the need and requirement of the people and generate profit for both business as well as
country.
DIFFERENCES Scalable
entrepreneurial
Large
Entrepreneurial
Social Entrepreneurial

Meaning
ventures
These are those
ventures who start
the business with
motive of changing
the globe by their
ideas and thoughts.
(.Morris, 2020).
ventures
Large ventures
those who wish
to offer new and
products, good
and services to
survive in the
competitive
market.
These types of ventures mostly assist
the people in fulfilling their need and
demands in proper way.
Examples- Instagram, Twitter,
Mc Donald’s etc.
LG, Huawei,
Asus, Apple etc.
Cancer Research UK, British heart
foundation, Macmillan cancer etc.
Objectives
Main objective of
scalable
entrepreneurial
ventures is to
change and provide
innovative
approaches to the
world.
To sustain in
market and earn
profit and
acquire resources
as well as
manpower.
Every firm run their business with
motive of earning profit and money
but social entrepreneurial raise fund
by performing activities and events
in the market because main objective
is to grow and survive in this
competitive era.
SIMILARITIES
PROFIT
Scalable
entrepreneurial
ventures
By invention and
innovation profit is
generated in such types
of ventures. (Kimball,
2020).
Large
Entrepreneurial
ventures
In this, profit generated
from sale of product is
used for future
development and in
research and
development
department.
Social
Entrepreneurial
In social
entrepreneurial, main
profit is social welfare
of the people and
health environment.
Need
This type of
entrepreneurship hire
the expertise for their
goals.
In these venture, need
is to acquire skills and
knowledgeable people
are hired as valuable
Whereas social
entrepreneurial need is
to acquire the
advanced tools and

resource. technology to help the
society and people.
After a brief analysis of above matter it is stated that ventures are important for growth and
development of the country. With help of these entrepreneurial ventures, needs and demands are
analysed as well as fulfilled in appropriate manner. To survive in the market, each and every
business use strategies so that hurdles in the process are being faced easily. Also, they assist in
enhancing the standard of living and increase value of resources in the society and market. Rise in
business leads to decline in rate of unemployment. So, every venture provides growth to country
and use the resources efficiently.
P3 Describe impact of small and micro business on economy by use of statistics data
Every business play vital role in enhancing and improving the performance and progress
level of country’s economy. It is essential to have a strong economy because it drives and assist
people to survive and fulfil their needs as well as demands. Also, it is important for development
and progress related to social, technological, agricultural etc. Small and micro business has a deep
impact on country’s economy which is discussed below-
Micro Business- These are those type of business in which size of employee and profit is limited
and they operate at small scale. Activities, functions and operations involved in this business do not
require expertise for their process. Example of micro business such as computer services like cyber
café, event planning, and photography shops etc. Risk associated with these are low and profit
might get high depending upon the need and demand of the people. Their main focus is to acquire
more customers and earn profit (Bruhn, 2018).

 Micro business has risen the market share of UK by providing ample number of
goods and services
 People are able to satisfy their needs and requirements with help of these
businesses.
 Availability of substitute and alternatives has increased the customers bar and which
help in generating more profit.
 Country’s economy (UK) is rising and which results in access to more business in
the market.
Small business- Small business are those which are solely owned by individual. Such type of
business run with motive of acquiring more market share growth and profit. Size of employees in
these type of industry is approx. 200-500 depending upon the functions and operation of firm. A
large distributional channel is involved when small business is present because intermediaries are
the source through which all the activities are performed in appropriate manner.(Aguilera, 2018).
The above stated graph shows that small business provides a huge contribution to the
economy.

The displayed graph depicts that productivity and impact of small business is higher
that medium and large enterprise.
With help of small business, innovate and new products are introduced in the market.
Competition level increases and which helps in more availability of the goods and
services.
Also, progress and performance level of business sector get improved and enhanced.
After a brief analysis of above matter is examined that both small and micro business are
crucial and affect the country’s economy at wider level. So, it crucial to be aware in the market and
changing trends so that business activities are performed in proper way.
P4 Determine the significance of small business and start-ups to the growth of the social economy.
Social economy is the hybrid combination of both private as well as public sector. In this
economy, an individual person emphasis on how norms, value as well belief affect the
behaviour of buyer in favourable and adverse manner. Their main aim is to increase the
standard of living of people living in the society. Also they focuses on boosting profit for a
longer time period. The enterprise which is operate at both national as well as international
level is determined as a voluntary organisation. There are various example of social economy
with minimum risk.
Four pillars in a social economy:
Mutual: This is the basic pillar of the social economy. These enterprise offer wide range of
services to its buyer in order to satisfy them. The main purpose of this economy is to provide
appropriate services to its consumer in order to earn more and more profit. (Micheli,2018).
Foundation: Foundation are those non profitable business organisation through the help of
various institution. These exists for charity purpose which includes religion, education and so on.
Charities: They emphasised on social and economic growth and development. There are
group of person focuses on increasing different part of the economy.
Associations: It is the group of individual that shows the relationship among the individual
person and business organisation. It included different example such as co-worker, friendship and
so on. There are various signification of new business venture which is going to be mentioned
below:
Innovation: The new start-up business focuses on offering innovative and unique products
and services for attracting the large number of buyer (Yadav, 2020).The supervisor of company
make appropriate plan of action for analysing the need and wants of buyer in order to satisfy them.
In assistance of this, they offer unique and specific products and services to enhance the living
standard of people of society. The new start-up bring the innovative and specific products and
services to attract ample of customer in order to satisfy them. In addition to this, it increases the
future growth and development of social economy. Moreover, the new business venture focuses on
achieving goal and objective within stipulated period of time.

Employment opportunities: It has been analysed that new business venture offer job
opportunities to the individual person in order to reduce the unemployment rate of country. In
addition to this, they hire talented and capable of employees for accomplishing objective within
stipulated time period. It increases the national income as well as market share of new start-up
company. Their main purpose is to increase the future success and growth of new business venture.
Decline in Poverty: The new business venture offer employment opportunities in order to increase
the living standard of people living in the society. They emphasised on reducing the poverty of an
economy. In addition to this, they hire capable and talented employees in order to accomplishing
objective within targeted period of time. The main purpose is to enhance the living standard and
eliminate poverty. (Shokhnekh, 2020).
TASK 3
P5 Examine the traits, characteristics and skills of successful entrepreneur
Every individual in the firm is different by nature, attitude and behaviour. Stability of
business depends upon workplace and environment within the organisation. So, entrepreneurs
thinking, ideas and approaches are heterogeneous and dynamic.
SKILLS Elizabeth Gooch
Delegated- It is important skill
of a successful entrepreneur.
Elizabeth Gooch is delegated
towards her work and listen to
employees and their problems.
USP (Uniqueness)- Elizabeth
Gooch always remain ahead
from others entrepreneur
because of his unique ideas
and methods in the business
(Calvo, 2020).
Tom Mercer
Influencer- A person who is
able to affect the decision of
others because of personality,
knowledge etc. Tom mercer is
the big influencer in UK
market because of he is hard-
workers, self-made man.
Curiosity- It refers to
excitement of something to
know more. Tom Mercer
always remain at high level of
curiosity of exploring more
new opportunities worldwide.
(Fatimah, 2020).
Characteristics
Money minded- Mostly
business is started for earning
profit. Elizabeth is money
minded always ready to take
the advantage of opportunity.
Passionate- It is a kind of
strong feeling about something
which a person desire. Tom
Mercer is passionate about
work and always ready to take
risks.

Traits
Innovation- Innovation
refers to introducing
something new. Elizabeth
innovated new software’s
which helps consultancy to
operate in effective manner.
Innovation- Tom Mercer,
always uses new and
innovative approaches as well
as methods to boost up their
business at wider level.
Comparison between entrepreneur and business manger
BASIS Business manager Entrepreneur
Meaning
A business manager is one
who maintains and monitors
the management of the firm
and employees.
Entrepreneur is one who brings
all, the resources and
manpower together to carry out
the business activities in
appropriate manner.
Objective
Main objective of business
manager is to complete the
task or project within a period
of time.
Objective is to earn profit and
acquire more market share
growth.
Power of authority
In firm, power authority of
business manager is limited
within the organisation and
manager can use that power in
the workplace only.(Wang,
2020).
Power of authority is wide and
broad when it comes to
entrepreneur. They can use this
power in the organisation
without consulting anyone and
also it can be used outside the
firm depending upon the
networks.
P6 Analyse how aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mind set.
A trait involves purpose, attitude and behaviour helps in boosting the experience level of an
individual person is considered as entrepreneurial personality. In addition to this, the trait of
both entrepreneur Simon and Bobby Arora which is discussed below:
Tom Mercer- He focuses on running the business successfully named as MOMA Foods. In
addition to this, he provides high quality services to its buyer that helps them in increasing their
confidence and satisfaction level. Beside from this; he motivate the small businesses to become an
successful entrepreneur at workplace (Vladasel,2020). The main aim is to grab various
opportunities for the future success and growth of enterprise. Also Tom Mercer takes risk in order to
earn more and more profit. He want to be a successful entrepreneur at the marketplace.
Elizabeth Gooch: She is one of the biggest influence for female because she is the CEO of

EG solution who work day and night for the company. Also she is entrepreneur who encourages the
staff member to perform their work in better way. Therefore, it helps in increasing the productivity
and profitability level of business organization. Also, she is the leader who motivates employees to
work towards achieving goal and objective of business organization. It helps in increasing the future
success and growth of the enterprise. Elizabeth Gooch has good leadership quality that helps him in
being a successful entrepreneur at marketplace.
TASK 4
P7 Analyse how experience and background affect the entrepreneurship
Experience and background matters in life and especially when it comes to professionalism.
Background defines the information about past related activities which reflect the traits, attitude and
behaviour of a person. Experience is also essential because it gives the confidence to use knowledge
and skills. Also, it assists in determining and evaluating success as well as failure in life.
Elizabeth Gooch- She is the CEO of EG solutions who started her own business with
motive of becoming entrepreneur. She is a entrepreneur who faces many challenges and problems
while running the business. At age 18 she worked for HSBCS Bank but left in 1 year so that she
could work with consultancy who works with large enterprises.
(Mohammad, 2019).
Tom Mercer- He is owner of MOMA Foods which was established 2006 and sells food &
beverages across the regions. He started his business during his college days and always get late for
classes while distributing beverages to commuters. This trigger him to start his own business and
that’s is how MOMA was formed. Also for resources, MOMA has partnership with TESCO such as
bottles for drinks. This assists company to operate and function in appropriate manner.
Both the entrepreneurs face issues and challenges in their life bit due to determination and
hard work they succeed and running their own business independently and successfully.

CONCLUSION:
On the basis of above given topics, it has been examined that the new business venture
focuses on bring the innovative and specific good and services in the marketplace. In addition to
this, the main aim of every business is to earn more and more profit in order to retain for a longer
period of time in the market. Also, they enhance the living standard of people living in the society.
Along with this, they offer specific and unique products and services to its user in order to satisfy
them. This report also discuss regarding the family support and trust that helps in introducing new
ideas to become successful entrepreneur. In assistance of this, the main aim of new business venture
is to offer innovative products and services to its buyer in order to satisfy them. It helps them in
increasing future success and growth of business for a longer period of time. Also, it build the
positive image of business in front of consumer and retain them for a longer time period.

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