Entrepreneurship and Small Business Management - Desklib

This report covers types of entrepreneurs, typologies of entrepreneurship, similarities and differences between entrepreneurial ventures, impact of micro and small business on economy and importance of small businesses and business start-ups to the growth of the social economy.

Entrepreneurship and Small Business Management
INTRODUCTION
An entrepreneur is an individual who makes money by starting with a new idea
and by their own business, especially it involves taking risks and seeing a new
opportunity. Entrepreneurs have an important role in terms of all kinds of
business activity specially in the case of start-up business (Bacharach and et.al.,
2016). 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 consist of aspects of
entrepreneurial personality reflect entrepreneurial motivation.
P1 Types of entrepreneurial ventures and their relation to typology of
entrepreneurship
Entrepreneurs are innovators who are capable of taking risks and also possess
certain kinds of skills which include communication, leadership, business
management and technical skills. People have different kinds of vision, goals,
aspiration and dreams for the type of business they want to create. Small
Business Ventures- In this type of venture, people who stablish these kind of
ventures is basically for supporting their families and for a purpose of living a
modest lifestyle. These kind of businesses lack in terms of innovation factor and
also unable to attract venture capital for smooth running. People who are
involved in this type of venture take up loans from friends and family members
(Ebrahimi and et.al., 2018).Under this type of venture, employees are from local
For example, Organisation like Mule soft considered under small business venture,
it is a vendor which help businesses to connect data, applications and devices
through an integrated platform. (Connect data from any system faster). This
company is headquartered in California.
Social Ventures- Social venture are the type of venture who conduct operation and
function for social benefits. The basic role of such organisation is to satisfy social
duty not only profit. They also provide low price of products to consumers. For
example, Organisation like Virgin group which is created for purpose of changing
business for good and act as an investment company focused on leisure, travel and
tourism. This company is headquartered in UK (Our Story)
Large company entrepreneurship: This type of entrepreneurship refers to ideas
and advancement of new opportunities within large and already established
companies (Ferreira and et.al., 2017). Large company entrepreneurs always have
focus towards attracting new markets and also extending the already established
business (What is Samsung). For example, organisation like Samsung which is a
South Korea company who discovers technologies to help people all over the
world to lead a happier and healthy lives.
Typology of entrepreneurship related to start-up ventures
There are various type of typologies involved in entrepreneurship ventures
which are associated with the development of a business in order to make
enterprise more effective. Some typologies are discussed below-
Growth firms: These types of businesses are formed for earning the maximum
profit and generating high revenues improved into market.

Entrepreneurs of such enterprises try to innovate new ideas through which
company's profitability improved into market. These ideas are mainly generated
for satisfying the needs and requirements of their customers. These companies
fall under category of small and large enterprises.
Lifestyle Enterprise: These are the types of enterprises which are created for
purpose of improving standard of living of local people where company operates
it's functions. These enterprises provide job opportunities to local people of that
place as well as their products and services helps in fulfilling their needs as well
(Gast and et.al., 2019).This type of company falls under category of social
ventures.
These typologies and entrepreneurial ventures are interconnected with each other
as they give their maximum efforts for improving standard of living and lifestyle
of people. Also they both also give their possible contribution into development
and growth of an economy where business operations are running.
P2 Similarities and differences between entrepreneurial ventures
Differences Small Business
Ventures
Social Ventures Large company
Objective Purpose of this
kind of venture is
that to improve
standard of living
and provide
necessary
products and
services to their
customers
Incorporate social
management for
individual
benefits by
providing
inexpensive
goods.
This type of
venture has focus
towards
profitability,
growth, stability,
efficiency and
survival.
Scale
These kind of
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 it's
functions.
Similarities: All types of venture provide employment opportunities to all kinds of
people with different age group (Khari., 2018). It also provides goods and services
according to customers preferences and requirements

P3 How micro and small business impact on economy
Impact of micro and small business on the economy at local, regional, national
and international level and this has explained into following manner:
Local Impact: Small and medium enterprises are major contributor to UK
economy and also supports local communities in a variety of ways. They create
employment opportunities for people and also help in terms of their career
growth.
Small and medium enterprises positively contribute for growth of innovation.
They also contribute in terms of being more ethical while ordering things online
means a lower carbon foot print
Clothes and other goods that made on local basis can take pressure of countries
with a lot of industrial factories.
Regional Impact: Micro and small businesses have large contribution within an
economy. Low entrance barriers contribute to the growth of competitiveness,
innovation and quality improvement. The positive development is based on the
openness of business environment for establishing SMEs.
There are also structural changes which impact on development of an economy.
National and international impact: The small management proprietors are
developing frequently in United Kingdom (Liguria and Pits., 2020). This has
happened due to reason that they are gaining extra source of income by turning
hobbies into money-making professions. By this kind of activity, it directly
contributes in terms of raising GDP of a country and it helps in raising level of an
economy. At international level, micro and small business which are majorly run
by women youth, minorities suffered the most in this pandemic situation. Survey
of International Trade Centre on COVID-19 impact among businesses in 136
countries shows that nearly 62% women led business have been strongly affected
by this crisis. At international level, it not only provides opportunity for growth but
it also ensures about flow of money across country.
According to above graph, the percentage level small businesses is very high as
compared to other medium and large businesses. Medium size businesses have
very low percentage within an economy as compared to large businesses. Large
businesses percentage is almost half of small-size businesses within an economy.
P4 Importance of small businesses and business start-ups to the growth of the
social Small businesses contribute to local economies by bringing growth and
innovation to the community. Small businesses also help in economic growth
by providing employment opportunities to people who do not get
opportunities by large corporations.
Employment generation: There are various kinds of job roles that are developed by
management at organisational level for purpose of giving different
opportunities and to stand out differently into the market. It has direct impact
on maximizing financial capability of nation.
Innovation: When businesses provide unique idea and features to the market then it
gives a competitive edge at international level.

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 plays a very essential role in terms of growth of any
country’s economy. 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
Bacharach and et.al., 2016. Small entrepreneurship in Russia: Development trends,
structural changes, rating assessment of regions. International Review of
Management and Marketing, 6, p. S5.
Brahimi and et.al., 2018. Impact of organizational innovation, learning orientation
and entrepreneurship on SME performance: The moderating role of market
turbulence and ICT. In Competitiveness in emerging markets (pp. 447-480).
Springer, Cham.
Ferreira and et.al., 2017. Effects of Schumpeterian and Kirznerian
entrepreneurship on economic growth: panel data evidence. Entrepreneurship &
Regional Development, 29(1-2), pp.27-50.
Gast and et.al., 2019. Coopetition of small-and medium-sized family enterprises:
insights from an IT business network. International Journal of Entrepreneurship
and Small Business, 38(1-2), pp.78-101.
ONLINE
Connect data from any system faster,2021[Online]Available
through:<https://www.mulesoft.com/>
Our story,2021[Online]Available
through:<https://www.virgin.com/about-virgin/our-story/>
What is Samsung,2021[Online]Available through:<https://www.business-
standard.com/about/what-is-samsung/>
About Mark Zuckerberg,2021[Online]Available
through:<https://www.biography.com/business-figure/mark-zuckerberg/>