Entrepreneurship and Small Business Management - Types of Ventures and their Impact on Economy

This report covers types of entrepreneurs along with different typologies of entrepreneurship. It also discusses similarities, differences between entrepreneurial ventures and about impact of micro and small business in an economy. Moreover, the discussion is about value of small business, business start-ups in growth of social economy.

Entrepreneurship and Small Business Management
INTRODUCTION
An entrepreneur is an individual who searches for an opportunity which is unique
and exploits the same in order to come up with products and services which
solves an existing need within the society. An entrepreneur is basically visionary
according to its personality in terms of his or her business (Chundu and et.al.,
2020). The report will cover types of entrepreneurs along with different
typologies of entrepreneurship. In addition to this, the discussion is about
similarities, differences between entrepreneurial ventures and about impact of
micro and small business in an economy. Moreover, the discussion is about value
of small business, business start-ups in growth of social economy. The report
covers characteristics, traits and skills of successful entrepreneurs that
differentiate them from business managers. The report also consists of aspects of
entrepreneurial personality reflect entrepreneurial motivation.
P1 Types of entrepreneurial ventures and their relation to typology of
entrepreneurship There are different kinds of entrepreneurial ventures into
business world and it has been explained into following manner:
Small Business Ventures: People who stablish this kind of venture makes
profit for supporting their families and living a modern lifestyle. This type of
ventures lacks in terms of innovation factor and also fails to attract large amount
of capital for smooth running of business (Davayudhanti and et.al., 2019). For
example: Marcko media is a global web based and marketing company which is
headquartered in UK.
Social Ventures: Social venture is a type of venture in which entrepreneurs
recognise about a social problem and work for satisfying social duty. These type of
ventures provide low price products to their consumers. For example, Virgin group
is an organisation which act as an investment company who is focused on travel,
leisure and tourism (Our Story).
Large scale ventures: Large scale venture is a type of venture who sustain due to
reason of innovation and advancement in terms of new opportunities. These kind
of ventures have focus towards extending already established business and
attracting new types of markets (Dewi and et.al., 2017). For example, Apple is an
American multinational technology company which is specialised in electronics,
computer software and online services (About Apple). This company is
headquartered in California, United States.
Typology of entrepreneurship related to start-up ventures
There are different kinds of typologies which are involved in
entrepreneurial ventures and it has been described in following manner:
Growth Firms: Growth firms considered under those type of businesses
which are formed for earning maximum profit and generating high revenues.
Entrepreneurs of such enterprises try to innovate new ideas through which
company's profitability get improved in market (Iryanti., 2017). These ideas are
mainly generated for satisfying needs and requirements of their customers. These
companies fall under category of small and large enterprises.

Lifestyle Enterprise: These type of businesses are formed for improving living
standard of local people in which company is operating its functions. These type
of enterprises not only provide job opportunities but it also provide goods and
services as well. Lifestyle enterprises fall under category of social ventures.
These ventures and typologies are interconnected with each other as they give
their maximum efforts in terms of improving standard of living and lifestyle as
well.
Differenc
es
Small Business Social Ventures Large scale ventures
Objective The main objective
of small business
venture is to
maximize profits and
work for their
survival. They also
focus on raising their
standard of living
and provide
necessary goods and
services to their
customers.
Social ventures
main focus is not
to earn profit but
it seeks to
implement
improvements in
society. These
kind of ventures
incorporate social
management for
individual
benefits by
providing
inexpensive
goods.
Large scale ventures have
focus towards, growth,
profits, stability efficiency
and survival. They usually
produce capital and basic
goods. Large scale
ventures are enough
capable of generating
funds which will helpful
in terms of research and
development.
Scale Small business
ventures established
on a very small scale
with small amount of
financial support.
Companies in this
category have low
investment capacity
This type of venture
operates at local level
and they have to be
creative in terms of
raising money and
crowdfunding is
popular option in this
category.
These kind of
businesses operates on
a very large scale so
they require large
amount of money to
perform its functions.
Characteri
stics
These type of
ventures have single
ownership and all
management work is
under control of
owner.
These type of
ventures have a basic
nature that they have
curiosity towards
solving social
problems.
These type of ventures
have vision towards
achieving specific goal
and they also have
willingness to do hard
work.

Similarities: All types of ventures have a similarity that they want to create value.
They also provide employment opportunities to number of people due to which
they can grow themselves in terms of their career (Karadağ., 2016). These type of
ventures also provide goods and services which are helpful in terms of raising
standard of living as well as their modern lifestyle. All types of ventures
contribute directly and indirectly for purpose of economic development.
P3 Assess with support of statistics to illustrate how micro and small businesses
impact on the economy.
In today's period of time, micro and small businesses are growing on a
faster pace within an UK economy. Micro business is a type of small business
which operates on a very small scale that have fewer than ten employees which
includes owner and annual sales is less than $ 250,000. The impact of micro and
small businesses on an economy has been defined into following manner:
Impact of small businesses on an economy
Small businesses contribute to local economies by bringing innovation
and growth to the community in which business is established.
According to above statistics, it has been observed that small businesses have
employment percent around forty-eight. Small businesses have turnover around
thirty-three percent(Small and business management).Small businesses also help in
terms of giving boost to economy by providing employment opportunities to those
people who do not get employment through large corporations (Ključnikov and
et.al., 2016). There are various kinds of functions of large business which depend
on small businesses information and their authentic resources. Through tax
collection small businesses help an economy in terms of uplifting their
performance. Small businesses also support the economy and local communities
through proper use of goods and services. They create various kinds of job profiles
which will give opportunity to people in terms of career growth at organisational
level. Total employment in small enterprises was 16.3 million and sixty percent of
all private sector employment in UK. It not only provides job opportunities to that
particular area but it also provides necessary goods and services to those people
who are living in that region(Micro business statistics UK 2021).

Small businesses are more flexible in terms of nature and it gives more diverse
form, function, culture and also increases potential against large corporations. It
is easier for country to stand strongly in tough conditions when there is greater
diversity in an economy.
Impact of micro businesses on economy
It has been observed from above graph that medium enterprises employment rate
is around 12 percent and turnover is around fourteen percent. Micro businesses
are mainly responsible for making up a big on-fifth of the UK economy. Across
UK country, one in five micro businesses on a turnover less than £ 50,000. There
are over 235000, micro businesses which have a turnover more than £1 million
and average turnover of UK micro businesses stand at £286879(Leza and et.al.,
2016). Its important for country to recognise about challenges micro-businesses
are currently facing which includes economic and political uncertainty, business
rate increases and also decreases consumer confidence.
P4 Importance of small businesses and business start-ups to the growth of the
social economy
Small businesses contribute to local economies by bringing growth and
innovation to the community.
 Lifestyle Standard: Lifestyle of people has been changed through getting
good salary and with support of good job role due to which they can make
changes in their daily life standards. People get recruited in different
types of organisation like small-size organisation and start-ups due to
which they get an opportunity to learn something new and can also take
efforts in terms of raising their standard of living.
 Increasing employment: Small businesses and start-ups provide
employment opportunities to all kinds of people due to which they can
grow themselves in terms of professional and personal level as well
(Mugambi and Van Der., 2017). There are various kinds of job roles that
are developed by management at organisational level for purpose of giving
different opportunities and to stand strongly into the market. It has direct
impact on maximizing financial capability of nation.
 Innovation: Small businesses and start-ups give new ideas and features to
the market due to which it can contribute in terms of development of an
economy. These new ideas and innovation are not only profitable for
business but it also gives a competitive edge in the competitive market
(Nadzri and et.al., 2017). Innovation gives an opportunity to increase
productivity on a larger scale and as a result goods and services have been
produced with higher amount.
 Regional development: Small businesses and start-ups also contribute in
terms of development of regional economy. Businesses when established
in a particular region then it not only gives employment opportunities but it
also contribute in terms of development of that particular region. In this
way, small businesses and start-ups makes proper impact on regional
development.
 Community development: The community of a country is definitely
benefited by small businesses and start-up business. It is necessary for
management to make sure that organisation is not harming surroundings in
terms of their further development (Njimu., 2018). It is also important for
the community to take care about factors associated with requirement of
social development into positive manner.

CONCLUSION
The above stated report concludes that entrepreneurship plays a very
important role for an economy growth. There are different kinds of entrepreneur
which includes, small scale, large and social entrepreneur. All these kind of
entrepreneurs have some similarities and differences as well. Within an economy,
micro and small businesses play a very essential role in terms of growth of any
country’s economy. Impact of micro and small businesses on an economy creates
a great difference in terms of generation of employment and creation of goods
and services for a country. There are start-ups and small businesses which are
very essential in terms of social economy. These type of businesses not only
contributes in terms of raising standard of living of common people but it also
gives support in terms of innovation and development as well. There are different
kinds of entrepreneur in this world of business which includes local, national and
global entrepreneurs. Every entrepreneur has certain kinds of traits, skills and
characteristics and on the basis of that they foster themselves for becoming a
successful entrepreneur.
REFERENCES
Books and Journals
Chundu and et.al., 2020. Does Size Matter in Determining Growth of Micro, Small
and Medium Enterprises (MSMEs) in Zimbabwe. Open Journal of Business and
Management, 8(04), p.1888.
Davayudhanti and et.al., 2019. The Determinant Factors of Micro, Small, and
Medium Enterprises Towards Financing Source Decision. ICORE, 5(1).
Dewi and et.al., 2017. Innovation strategy to improve the competitiveness of
micro, small, and medium enterprises of Bandar Lampung banana
chips. Indonesian Journal of Business and Entrepreneurship (IJBE), 3(1), pp.64-
64.
Iryanti, R., 2017. Policy on the Development of Small, Medium and Micro
Enterprises and Cooperatives in Indonesia. Deputy National Development
Planning Agency.
Tambunan, T. T., 2018. Development of Women-Led Micro and Small Enterprises
in Indonesia: Their Motivations and Main Constraints. In Examining the Role of
Women Entrepreneurs in Emerging Economies (pp. 239-268). IGI Global.
Online
Our story,2021[Online]Available
through:<https://www.virgin.com/about-virgin/our-story/>
About Mark Zuckerberg,2021[Online]Available
through:<https://www.biography.com/business-figure/mark-zuckerberg/>
AboutApple,2021[Online]Availablethrough:<https://www.vault.com/company-
profiles/computer-hardware/apple-inc/>
About Peter Jones,2021[Online]Available
through:<https://www.peterjones.com/about-peter-jones/>
Socorro Ramos: National Book Stores Matriarch’s Success Story,
Micro Business Statistics UK 2021,2021[Online]Available