Entrepreneurship and Small Business Management: Types of Ventures, Impact on Economy, and Importance of Start-ups

9- Entrepreneurship
and Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
Various kinds of entrepreneurial ventures and how it relates to typology of entrepreneurship. 3
Similarities and distinction between types of entrepreneurship..................................................4
Assess and interpret the statistics and data in order to illustrate how micro and small business
impact the economy....................................................................................................................5
Importance of small business and start ups in growth of social economy..................................8
PART B............................................................................................................................................9

INTRODUCTION
The small business deals with established and known offering while the entrepreneurial
venture focuses on the innovative and new offering and because of this, the owner of small
business tend to make deal with the known risk while entrepreneurs are risk takers wherein they
undertake unknown risk (Herron, 2020). This report is split into two, wherein it will deal with
types of ventures, impact of small business on the economy and key aspect of entrepreneurial
mindset. Further it will include examination of varied environment which hinder and foster
entrepreneurship.
PART A
Various kinds of entrepreneurial ventures and how it relates to typology of entrepreneurship.
The entrepreneurial venture is the one which is started and run by a person with limited
level of resources and involves high risk. The main objective associated with it is the profitability
and growth and the specific business is mainly characterized by the strategic and innovative
approach. The various kinds of ventures are discussed below- Small business: These are the enterprises which have limited number of employees
which ranges between 0-49 and are often funded by family, friends, small business loans
and personal savings of the owner. Their main aim is just to earn their livelihood by
generating sufficient profit as do not want to take over an industry due to insufficient
profit. Large business: These are those enterprises which have more number of employees as
compared to small business and are often engaged in offering new product or service to
the customers as per their taste and preference, competitors, laws, etc. They are often
engaged in launching the variants of their core products and are aimed to grow and
expand their operations in order to capture large market share (Schaltegger, Beckmann
and Hockerts, 2018).
 Social business: These are the not for profit organizations which are aimed only to tackle
and overcome the social problems and needs. They are welfare organizations who raise
the standard of living of people through their product or service.
Typology of entrepreneurship

In a field of entrepreneurship, typology is something which explains the classification of
kinds of entrepreneurship. These are illustrated thereunder- Lifestyle firm: These types of ventures are aimed to improve the living standard of the
people by quality product and services being offered in market and due to its social
working, it offers employment to the people so that they can earn their livelihood and
improve their living standards.
 Growth firms- These are the enterprises which are aimed for growth and expansion so
that the venture can flourish. It is suitable for the large and small scale business as they
have the ability to grow due to their sole motive of generating profit (Sauka and
Chepurenko, 2017).
Similarities and distinction between types of entrepreneurship.
Differences
Basis Small Large Social
Equity The equity of this
enterprise is held with
the owner.
The equity rest in the
hands of public,
investors and owners.
The members of the
firm are owners.
Objective To generate profit To earn profit and
grow and e3xpand the
business.
Create sustainable
solution for the
social problems or
causes.
Similarities
Basis Small Large Social