Entrepreneurship and Small Business Management: Types, Impact, and Importance

This article discusses different types of entrepreneurial ventures, their impact on the economy, and the importance of small businesses and startups. It also covers the scope, growth, and development of entrepreneurial ventures in public and corporate sectors, and the differences made by small, medium, and large businesses on the economy.

Unit 9: Entrepreneurship and Small
Business Management

Table of Contents
Section 1: Different Types of Entrepreneurship...................................................................................2
P1 Different types of Entrepreneurial Ventures..........................................................................2
P2 Similarities and differences among Entrepreneurial Ventures...............................................3
M1 Entrepreneurship in Public & Corporate sector....................................................................4
D1 Scope, Growth and Development of Entrepreneurial Ventures............................................5
P3 Interpretation of impact of micro and small business on the economy with their statistics. .5
P4 Importance of Small business and business start-ups............................................................7
M2 Differences made by Small, medium and large business make on economy.......................7
D2 Impact of small businesses on different levels of the economy............................................8
Section 2: Understanding Entrepreneurship.........................................................................................8
Conclusion..........................................................................................................................................28
References..........................................................................................................................................29

Section 1: Different Types of Entrepreneurship
P1 Different types of Entrepreneurial Ventures
There are various types of entrepreneurial ventures which are discussed below:
Innovative Entrepreneurship
Innovative entrepreneurs are those who continuously work for coming up with new ideas
which are then converted into a business venture. These innovators are highly motivated and
passionate towards their work and their aim is to modify the lives of people for their betterment.
They are constantly working towards making their products stand out when compared to existing
products in the market (Morris, and Kuratko, 2020).
Small Business Entrepreneurship
Small Business entrepreneurship are those who themselves own and operate their business.
These entrepreneurs are involved in small business who employ their family members or local
people. These entrepreneurs generate amount of profit which helps them to support families with a
simple lifestyle. This business are not operating for generating large profits. These entrepreneurs
can be an owner of local grocery store or consultants (Neumeyer, and Santos, 2018).
Social Entrepreneurship
Social entrepreneur are interested in solving problems of society with the products and

services offered. They work for their goal of making world a better place to live. Their target is not
to make wealth or profits which leads them to start a non-profit organization who are dedicated
towards working for society benefits.
Large Company Entrepreneurship
Large company entrepreneur are for professional who own knowledge about methods to
sustain innovation. This type of companies frequently generate new services and products whose
base is customer preferences for meeting the demand of market. Small business entrepreneurship
can change to large company entrepreneurship when their growth is rapid or when there is merger
or acquisition. This entrepreneur has limited amount of life cycles as they stay is there area of
business. Examples of this type is Microsoft.
P2 Similarities and differences among Entrepreneurial Ventures
Factors Small business
entrepreneurship
Large Company
Entrepreneurship
Social
Entrepreneurship
Innovative
Entrepreneurship
Structure Small business are
usually operated by a
single person or in a
partnership.
Large business
have various
divisions among
them for every
operation such as a
company.
Social Business is
mainly based on
trustees who
provide funds and
run the
organization.
Innovative
entrepreneurship
basically consist of
those human or
hard assets who
create value in
unique way.
Employee
Number
Small business have
employees in the
range of 1-50.
Large enterprise
can employ more
than 500
employees in their
organization.
Number of
employees depends
upon the extent of
objectives of the
business.
Depends on the
objective of the
business.

Risks They face high level
of competition as
they are operating in
a small market. Their
risk in loss is high as
they have to bear the
losses alone.
They face low
level of
competition
because of their
strategies as they
operate in larger
market. Their risk
is low in losses as
they raise funds
from the public and
have huge amount
of assets.
Risk is low in
social business as
they don't work for
society and mainly
are a non-profit
organizations.
The risk is high as
they invest in the
innovation and it
may happen that
the innovated
product is not liked
by the customers.
Goals &
Objectives
Their main goal is to
earn profit which is
sufficient to provide
necessities to their
families.
The main aim of
this organization is
to produce various
new products and
services which are
related to their
competitive
strategies which
helps them to
survive in the
market.
Their main
objective is to
provide quality
services to the
societies for their
welfare and
development.
The aim of this
business is to find
reasons on which
they can produce
some innovative
products and
support the society
(Morris, and et.al.,
2018).
M1 Entrepreneurship in Public & Corporate sector
Corporate Sector
This entrepreneurship consists of those organizations who is owned by individuals or public
and operate privately. They are focused on the profits of the organization for which they develop
various strategies for providing quality products and services. They modify their strategies
according to their competitors which give sustainable development to the company. Corporate

sector are more inclined towards their own development instead of others as they want to earn the
invested money. They gain competitive advantage while they are competing with other brands in the
market (Abebe, Kimakwa, and Redd, 2020).
Public Sector
This entrepreneurship consists of those organizations who are controlled by Government
either directly or indirectly. They are operating in various sectors of the economy and is financed by
the government. They focus on providing high quality of products and services. Their main
intention is to do society development and welfare rather than profitability. Government invests
huge amount of money in this organization so that they can improve their growth rate.
D1 Scope, Growth and Development of Entrepreneurial Ventures
Scope of these ventures is based on its size, location and their structures. Such as a micro
company can be said as grocery stores in the area while small will be can be bakeries. A series of
beauty salon will be considered medium or large which will be based on they size of operations. At
last those companies who sell their products or services in various countries will be said as large
companies. The growth of various entrepreneurial ventures depends on their strategies of the
business which help them to improve their growth. It can also be done by providing quality goods
and services to its consumers. There are various competitive strategies which helps a business to
grow in the market as they can compete with their competitors in a better way. There are various
stages involved in a development of an enterprise such as start-up, rapid growth, expansion &
maturity. In each of the stage an enterprise adopts various different strategies which are related to
their stage. This helps the firm to develop their business and improve the growth of the organization
(Feldman, Siegel, and Wright, 2019).
P3 Interpretation of impact of micro and small business on the economy with their statistics
In the year 2021 private businesses in UK were 5.58 Million and SME's were around 99.2% that is
5.5 Million of them who had less than 250 Employees. SME's contributed around 51.9% turnover
which were gained by private sector and in jobs they provide 53.6% jobs in all over UK. The
businesses were decreased by 6.5% when compared to 2020 that is 0.357 millions businesses (UK
Small Business Statistics, 2022).

This chart shows how the revenue of SME's has dropped because of Covid 19. If we take
industries like accommodation and food services, wholesale, education, health, science,
arts/entertainment/recreation, business consulting, administrative and support services &
Manufacturing have accounted for reduced revenue up to 30% when compared to 2019 revenue.
Around 30-50% revenue has been decreased of retail, construction, others, information and
communication, finance and insurance & property industries. While 50-70% revenue is decreased
of agriculture and logistics industries. This will affect the economy of the country as SME's are
bigger part of the economy.
This chart clearly shows that the employment level was increasing continuously till 2020 but

in 2021 it decreased. The reduction has several reasons where main is Covid-19 which impacted
various industries. In 2021 5337200 Micro sized industry was providing jobs to 0-9 employees and
35600 medium industries was providing jobs to 50-249 employees. While 210600 small industries
were providing jobs to 10-49 employees.
This chart shows that there are around 1551 large companies in the UK among them 19.8%
are family owned. Most of this family owned business are owned by UK families, this large
companies employ around 13 million people also generate ¼ of GDP. They are paying higher tax
which is Euro 180 Billion which is important for the economy.
P4 Importance of Small business and business start-ups
The small business and the start-ups plays an important role in relation with the growth of
economy because with the aspect of small start-up an approach towards the local customers would
be easy. Likewise, with respect to small business they bring prosperity, growth as well as innovation
in the areas which is outside the main cities which will further make a major contribution in respect
to the support towards the growth and development of economy of UK. Likewise, the small
business also provides the employment opportunity to the employees at lower and the local level
that will further support the economy and in turn its growth too. In the same way with respect to the
small business lead to inspire innovation and thus play an important role in respect to the adding
towards GDP of UK.
Likewise, the small and medium business also make a contribution towards contributing the
CSR activities that is related with making a contribution towards the support of environment, social

as well as other aspect of the economy. This can also be supported with the aspect of those firms
which work in the rural areas and in education sector and thus work towards the raising of standard
of education in the rural areas and thus work towards the development of the local economy.
Likewise, with the setting up of the large number of enterprises in the UK also work towards the
support in respect to the GDP support.
As the working of the economy at the national and international level is closely related and
depended upon the aspect of small and medium business because with their active role the economy
at the national level work. In the same way being operated at the lower and small level the business
capture the large proportion of market in an easy manner. Likewise, along with the earning of
revenue the small business also make contribution towards the payment of tax and thus work
towards the tax contribution which will further support the GDP and the growth of the economy of
the country.
M2 Differences made by Small, medium and large business make on economy
Small business has a direct and major impact towards the various level of economy. This can
be justified with respect to the impact towards local economy as supporting the national economy in
terms of providing employment and meeting the need of the customers. Making a contribution in
terms of tax payment and giving an opportunity to various trader is also included under this the role
of small business.
In the same way it makes contribution towards the regional level because with the working
towards the regional level the small and medium business make contribution in terms of meeting
the needs of market and the economy.
From the data extracted it can be analysed that most of the businesses in UK are small
medium enterprises who contribute highly in the economy. While talking about the large businesses
they are mostly family owned who contribute quarter part of the economy's GDP. Both these firms
generate huge amount of employment for the citizens which is beneficial for the economy as it
reduce unemployment in the country. The data also says that the small medium enterprise are also
mostly family based but the number is become less due to the situation of covid. These small
medium enterprise are mostly in every sector of the economy who contribute in the success of
economy.
D2 Impact of small businesses on different levels of the economy
They are contributing in the global and international context by exporting their goods and

services. These small businesses have various goods and services which are not available in various
market of other countries. In this they also contribute by paying taxes in various countries with
which they trade. They also generate employment in other countries also when they try to expand in
those countries.
Section 2: Understanding Entrepreneurship
Slide 1

Slide 2

Slide 3

Slide 4
 Entrepreneurs can be individual or the group of the people that working in the team (Lipset,
2018).
 They are person who grab the opportunities in their personal and professional lives.
 The entrepreneur must have to take risk and make plans for managing all the uncertain
eventualities. To survive in the competitive market the risk taking is must that will further
help in improving the skills' foe managing the future challenges

Slide 5
 Vision is the statement that helps in identifying the goals and the reason for the existence of
the organization.
 By celebrating the small achievements the individual keep themselves motivated. The
entrepreneur should analysis their every failure and should take corrective actions for the
improvements. It enables to prioritize overall functional goals within extended business
domains, optimize functional long term strategic competencies for higher quality growth
results.

Slide 6
As the entrepreneur are the key part of the organization all the decisions are taken by them. They
should be able to delegate the roles and responsibilities for performing the work effectively and
efficiently.
The leader has the ability to motivate the team members for completing the task on time, empower
actions and also primitively generate accuracy aspects within functional goals for determined
targets.

Slide 7
This can be done promoting and advertising the brand and increasing the brand image of the firm.
It helps in prioritizing the task according to the needs and preferences. Specific working skills,
enables to critically shape fundamental goals for primitive engagement based on rapid
fundamental goals.

Slide 8

Slide 9
The entrepreneur needs to be creative for the generation of new ideas and for implementing them
and achieving the goals and objectives of the company.

Slide 10
The motivation is the essential part of the entrepreneurs traits as they need to be self-confident for
handling the team and guiding team. For motivating the other individual in the organization the
entrepreneur needs to be motivated and keep the mindset that their continuous efforts will help
in achieving the goals and objectives of the company

Slide 11
They need to delegate the roles and responsibilities to the employees same as leader require giving
orders to their teammates. For this they require to have good communication skills. For
managing and allocating the resources in the organization they need to have management. The
leaders of the company have all the attributes that an entrepreneur have for achieving the
success in the competitive environment. The entrepreneur needs to work with the time
management and management skills for avoiding the conflicts among the individuals in the
organization.

Slide 12
His characteristics have great contribution towards his success as the skills that has helped him in
managing the business are his motivation and time management skills. As he was very
confident about management skills, he has bought various bankrupt brands and established
them as the one of the brand of the country. With his communicating skills he has influenced
various brands of the UK to collaborate with his group.

Slide 13
So, he is the risk taker and knows how to handle the future challenges and problems that are coming
in his ways. By expanding his business by the way of hotel industry he has shown that he
knows how to manage the business for the growth and expansion of the business.

Slide 14
 Experiences of the individual plays a vital role in the success of the entrepreneur. When the
experiences of the individual are good then they feel motivated in performing their
activities. That helps in the growth and expansion of the business. If the experiences are bad
then the entrepreneur will be demotivated to set up business.

Slide 15
 He started his business with a small shop and with his hard work he achieved much
recognition. He associated with many other entrepreneur that has provided him with the
experiences and knowledge and has helped in bringing his efficiency in the business.

Slide 16

Slide 17
As they have a supportive team that has motivated them to grow and survive in the market. Without
the efficient team they may not survive for the longer period. The experiences can hinder the
growth of the entrepreneur, but with the support and self motivation an entrepreneur can
survive for the longer period.

Slide 18

Slide 19
Lipset, S.M. 2018. Values, education, and entrepreneurship. In Promise of development (pp. 39-75).
Routledge.
Lipset, S.M. 2018. Values, education, and entrepreneurship. In Promise of development (pp. 39-75).
Routledge.
Lipset, S.M. 2018. Values, education, and entrepreneurship. In Promise of development (pp. 39-75).
Routledge.
Podolchak, N.Y. and et.al. 2019. THE INFLUENCE OF COACHING ON THE DEVELOPMENT
OF MANAGER’S LEADERSHIP SKILLS. Scientific Bulletin of National Mining
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Podolchak, N.Y. and et.al. 2019. THE INFLUENCE OF COACHING ON THE DEVELOPMENT
OF MANAGER’S LEADERSHIP SKILLS. Scientific Bulletin of National Mining
University, (4).
Podolchak, N.Y. and et.al. 2019. THE INFLUENCE OF COACHING ON THE DEVELOPMENT
OF MANAGER’S LEADERSHIP SKILLS. Scientific Bulletin of National Mining
University, (4).
Rani, U. and Sharma, R., 2018. Academic Stress And Time Management Skills A Correlated
Study. International Journal Of Research And Analytical Reviews. 5(2), pp.1861-
1865.
Rani, U. and Sharma, R., 2018. Academic Stress And Time Management Skills A Correlated
Study. International Journal Of Research And Analytical Reviews. 5(2), pp.1861-

1865.
Rani, U. and Sharma, R., 2018. Academic Stress And Time Management Skills A Correlated
Study. International Journal Of Research And Analytical Reviews. 5(2), pp.1861-1.
van der Vleuten, C. and et.al., 2019. Assessment of communication skills. Patient Education and
Counseling. 102(11). pp.2110-2113.
van der Vleuten, C. and et.al., 2019. Assessment of communication skills. Patient Education and
Counseling. 102(11). pp.2110-2113.

Slide 20
Conclusion
It is concluded from this report that there are various differences and similarities among the
entrepreneurial ventures. Most of the businesses in the UK economy is small sector which generates
more employment. From the above report it can be concluded that entrepreneurs and the
entrepreneurship firms plays a major contribution in respect to the providing of support and the
growth of the economy at the national and the local level. There is various form of the
entrepreneurial ventures which plays a major role in respect to the growth and development of the
economy.
It is also concluded that there are various traits and skills which create difference in the
entrepreneur. These motivations can be related to vision and communication skills and various
others. This report also discuss about the two entrepreneurs characteristic which are Philip's green
& Duncan Bannatyne. This also discuss about their motivational drivers.

References
Books & Journal
Abebe, M.A., Kimakwa, S. and Redd, T., 2020. Toward a typology of social entrepreneurs: the
interplay between passionate activism and entrepreneurial expertise. Journal of Small
Business and Enterprise Development.
Basole, R.C., Park, H. and Chao, R.O., 2018. Visual analysis of venture similarity in entrepreneurial
ecosystems. IEEE Transactions on Engineering Management. 66(4). pp.568-582.
Feldman, M., Siegel, D.S. and Wright, M., 2019. New developments in innovation and
entrepreneurial ecosystems. Industrial and Corporate Change. 28(4). pp.817-826.
Morris, M.H. and Kuratko, D.F., 2020. What do entrepreneurs create?: Understanding four types of
ventures. Edward Elgar Publishing.
Morris, M.H., and et.al., 2018. Distinguishing types of entrepreneurial ventures: An identity‐based
perspective. Journal of Small Business Management. 56(3). pp.453-474.
Neumeyer, X. and Santos, S.C., 2018. Sustainable business models, venture typologies, and
entrepreneurial ecosystems: A social network perspective. Journal of cleaner production.
172. pp.4565-4579.
Orlova, L. and et.al., 2018. Start-ups in the field of social and economic development of the region:
a cognitive model. Entrepreneurship and Sustainability Issues. 5(4). pp.795-811.
Halberstadt, J. and et.al., 2021. Social entrepreneurship orientation: drivers of success for start-ups
and established industrial firms. Industrial Marketing Management. 94. pp.137-149.
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