Entrepreneurship and Small Business Management - Types, Similarities, Differences, and Impact on Economy and Social Economy Growth

This article discusses entrepreneurship and small business management, including types of entrepreneurial ventures and typologies, similarities and differences between entrepreneurial ventures, and the impact of small and micro businesses on the economy and social economy growth. It also provides insights into interpreting and assessing data about small and micro businesses.

Entrepreneurship and small business management
Social entrepreneurship: This category of entrepreneurial venture strives for making
large effect of social changes and human wellbeing. One of social entrepreneurship venture is
Ashoka: Innovators of the Public which emphasises on providing solutions to issues in community
and furthering certain social changes.
Entrepreneurial typologies:
There are various entrepreneurial typologies linked with ventures. Description of some are as
follows:
Lifestyle typology: Entrepreneurial typology that works with purpose to alter personal lifestyle and
choices are not for making more money is lifestyle typology. Small business and social
entrepreneurship are linked to lifestyle typology as actions of such ventures are to become reliable
income source addition to bringing changes in living of society.
Growth typology: Entrepreneurial typology that recognises market opportunity as well as makes
decision for creating and achieve profits is growth typology. Large company and scale start-up
venture are linked to growth typology as the ventures have attitude towards scaling growth and have
competence to attain sustainability in market.
P2: Similarities and differences between entrepreneurial ventures
Mentioned below are similarities among entrepreneurial ventures:
Innovation: Small businesses offer innovative products to meet requirements of local residents. At
same time, scale start-ups work to launch innovative items for changing the world. Likewise, social
enterprise works to provide innovative solutions to solve social and environmental issues.
Moreover, large company invest in innovations to grow market share of current products while
promoting new commodities.
Employment opportunities: Small businesses provides employment to local people. Moreover,
large company generates employment to reduce unemployment rates in the country. At same time,
scale start-ups employs talents having advance skills. Likewise, social company generates quality of
employment opportunities to hire hard to employ addition to offer training for transition of
volunteers into conventional employment.
Entrepreneurship is extraction of values. In business management, it is viewed as change that
entails risk beyond than what is encountered in establishing a venture and often comprises more
than values. There are various entrepreneurial ventures that impacts on growth of economy and
social economy within UK.
TASK 1
P1: Types of entrepreneurial ventures
Different types of entrepreneurial ventures and typologies
Enterprise is said to undertaking which is complicated, risky as well as difficulty to establish and
manage. It refers to bringing factors of production collectively and assigning proper tasks to each
together with paying remuneration to them for done. Entrepreneurship is an act for initiating and
running a business to make money. It is an attempt to create a new enterprise by bearing major
risks along with enjoying most of benefits or rewards. Vision of entrepreneurship is to discover
something new, take risk and contribute in nation’s capacity to succeed within more competitive
international marketplace.
Entrepreneurial activity is described to enterprising human action to pursuit generating
values with the help of creating or expanding economic practice, via recognition and exploitation
of new markets, processes and commodities.
Entrepreneurial venture is said to a company or organisation that puts more focus on
innovation and opportunities at centre for producing economic and social values. Some
entrepreneurial venture types are explained below:
Small business entrepreneurship: Majority of ventures are small businesses as they are
independently owned and carry out operations in limited size and restricted revenue. TALA,
SHREDDY as well as B_ND are small business entrepreneurship as they do not aim for large
scale profits rather works for satisfying local residents.
Scalable start-up venture: There are ventures which work with the vision to make
changes in the world. Facebook and Online shopping store are scalable start-up venture who
attracts people and motivates to think out of box.
Large company entrepreneurship: Ventures having defined cycle of life are known as
large company entrepreneurship. They address requirements and opportunities of current
business through innovation and looks for branching into new customer segments. Virgin Group
is large company entrepreneurship that grow and sustain through offering innovative
commodities and cope up with changing technologies.

Differences among entrepreneurial ventures are as mentioned:
Roles: Small businesses have role of earning for family, utilise local resources and adapt to
upcoming changes. Whereas, large company have role of making huge profits and accommodating
shifting technologies. However, scale start-ups have role to bring changes in world, look for things
which are missing in market along with creating solutions. In contrary, social entrepreneurial
venture have role of solving issues pertaining in community with adequate products and services.
Characteristics: Small organisations are characterised as focusing on individual product
and locality, no expansion plans as well as self-funded. However, scalable start-up organisations are
characterised as businesses having modest scale, vision for growth, funded through venture
capitalist and implement growth strategies. In contrary, large organisation entrepreneurship is
characterised as ventures having diverse product portfolio, sustainable growth and huge profit
making vision. Nevertheless, social enterprise ventures have characteristics of non-profit structure,
alternative ways of funding, execution of market driven approaches for solving social issues.
TASK 2
Interpreting and assessing data about impact of small and micro businesses on economy
Small business are those companies that privately own which have turnover of approximate £6.5
million, employee size of no mora than 50 people and balance sheet amounts to £3.26 million. At
same time, micro businesses are ventures hiring less than 10 members of workforce and balance
sheet amount is less that £1.7 million. Within the economy of UK, small and micro business
contribute through creativity and innovation. Creativity is termed to a phenomenon in which
something new as well as somehow valuable are devised. While innovation refers to practical
execution of ideas which leads in launching new products or making improvisation in existing
offerings. These businesses protect their intellectual property rights through using tools such as
patent and copyright. Also, grants provide exclusive rights to these business for creations for
commercial gains in use.
Statistical data showing the ways in which micro and small businesses impacts on economy of UK
are as illustrated:
As per presented statistical data, it can be illustrated that small business impacts on economy of
UK through employing around 45% population and generating turnover of approximate 38%.
Around £2.2tn of turnover are generated by small businesses in UK and more than 60% small
firms had £5,000 in credit balances. Within UK, there are around 5.7 million micro businesses
that employ 47.5 percent of population. In local economy, micro and small impacts by
generating huge employment opportunities for local residents. At same time, rate of growth of
such businesses is high because of which they expand at national level by improving
infrastructure facilities and drive innovation as well as competitiveness. Small and micro
businesses impact international economy by developing multiple sectors and improving decision
making for relationships among countries.
Importance of small businesses and start-ups in social economy growth
Social economy is formation through rich diversity of businesses comprising of mutual,
foundations, praetorians institutions, cooperatives and associations that shares similar values and
features. Start-ups and small businesses are significant for growth of social economy because
major purpose of these is to balance as well as foster equality that enhances production level.
Mentioned below are importance of small businesses addition to scale start-ups in developing
social economy:
Creating job opportunities: Small businesses and start-up venture contribute in developing
social economy through creating huge job opportunities. They bring growth together with
innovation to society wherein rich diversity of companies are established. In aspect to social
economy of UK, these stimulate growth through providing employment to population of
community that are not employed by other corporations.
Adapting to climatic changes: As small businesses as well as scale start-ups are directly
connected to society and community, they tend to get adaptable to adjustment to dynamic
economic and social climates. Moreover, in case of shifting of consumer demand, such ventures
find themselves at top to make adjustments in rick diversity of establishments for keeping all
citizens of society satisfied in the manner which large businesses fails to do. In times of social
downturns, small and scale start-ups contribute in supporting locals continuously.