Entrepreneurship and Small Business Management: Types of Ventures, Impact on Economy and Social Economy Enhancement

This report discusses entrepreneurship and small business management, highlighting the types of entrepreneurial ventures and their connection to typology of entrepreneurship. It also assesses the differences and similarities of various entrepreneurial ventures, applicable data explaining how small businesses impact the economy, and the importance of startup and small businesses to the enhancement of social economy. The report also features Bill Gates as an example of an innovative entrepreneur.

V
ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT (Part 1)
Introduction
Entrepreneurship is defined as the process of finding new opportunities and creating
new and innovative enterprises to gain profitability through bearing all the risk. It is basically
an mindset that allows an individual to find opportunity in each and every situation, there
creativity leads them either to build a business ideas or find capabilities in others that can
benefits entrepreneur in enhancing that business. The person who starts a business entity is
know as entrepreneur. For this report Bill Gates is chosen as an entrepreneur. Bill gates is one
of the most successful entrepreneur of microcomputer revolution. He was born in
Washington and in the year 1975 he founded Microsoft. This report highlights the various
kinds of entrepreneurial ventures and how they are connected to the typology of
entrepreneurship. Differences and similarities of various entrepreneurial ventures and the
relevant data to understand the impact of small businesses on economy is also mentioned in
this report (Amoroso and Link, 2018). In addition to this benefits of small business in
enhancing social economy and the skills of an entrepreneur in comparison to the manager is
also highlighted.
Discuss various kinds of entrepreneurial ventures and explain how they are connected to
typology of entrepreneurship
The entrepreneurship is the process of creating new and innovative business
enterprises in order to gain profit and satisfy the needs and wants of the customers. The
entrepreneurial ventures are started by the entrepreneur, he is someone who finds creative
ideas and opportunities from any of situation and contiguously work towards converting
those opportunities into profitable entrepreneurial ventures. In order to start the business
ventures he bears all the risk (Baumol, 2021). Entrepreneurs are considered to be someone
who has different mindset which leads them to achieve their desired goals and objectives and
successful implement their vision also.
Small business vs. Entrepreneurial ventures: The small business are relatively small in
size started with very less amount of capital. Also the small business mainly deals with well
know products and services and avoids taking any kind of risk as they are small in size.
Whereas the entrepreneurial ventures are the kind of ventures started by the entrepreneur with
some innovative and creative ideas. Entrepreneur are always ready to take risk and because of
this they always deal with unknown risk in the market (Ben Arfi and Hikkesrova, 2021).
There are different types of entrepreneurial mainly depending on the size, scope and purpose.
The various types of entrepreneurial ventures are highlighted below:
 Small business entrepreneurship: The first type of entrepreneurship venture is
the small business entrepreneurship, these type of ventures are generally small
in size and started by a single entrepreneur with very less number of
employees. All the business activities are owned and managed by the
entrepreneur himself. The main focus of these types of ventures is not
maximising the profit but satisfy the needs of their customers. Most of the
small business are started by the family members or friends to provide quality
services.
 Scalable start-up entrepreneurship: The another type of entrepreneurial
ventures is the scalable start-up entrepreneurship, this kind of ventures are
started with some creative and innovative ideas. Entrepreneurs believe in
brining the change in the world with their innovation and creative ideas. These
kind of ventures are also started with some innovative ideas only.
 Large company entrepreneurship: In case of large company entrepreneurship,
these kind of entrepreneurial ventures are large in size started with large
amount of capital. Large company ventures focus on offering quality services
to their customers and satisfying their needs. The main aim of these ventures is
maximising their profitability and retaining their customers for long period of
time. They also focus on changing customers needs and preferences and
accordingly offers quality products to them (Coulibaly and et. al., 2018).
 Social entrepreneurship: The last type of entrepreneurial venture is the social
entrepreneurship, these are generally started in order to satisfy the needs and
wants of the society. The entrepreneur focus on solving social problem
through their creative and innovative products and services. These kind of
entrepreneurial continuously work towards brining new changes in the society
and working towards their welfare.

Difference
Fact
ors
Small
business
entrepreneu
rship
Scalable start-up
entrepreneurship
Large company
entrepreneurship
Social
entrepreneurship
Goals
and
objec
tives
Small
business
entrepreneurS
hip are
relatively
small in size
and doesn't
have any
structured
goals and
objectives
and focus on
just surviving
in the
marketplace.
These kind of
business ventures
are started with
some innovative
ideas and their
main goals and
objectives is to
enhance high
profitability
through brining
innovation
changes in the
marketplace.
The main goals and
objective of these
type of business
ventures is to enhance
their profitability
through continuously
satisfying the needs
and wants of the their
target customers.
In case of social
entrepreneurship the
main goal and
objective is to work
towards the welfare
of the society and
offer products to
overcome social
problems.
Num
ber of
empl
oyees
The number
of employees
in case of
small scale
business is
not more than
50 as these
are small in
size.
In case of scalable
start up
entrepreneurship
the number of
employees depend
on the size and
structure of the
business mainly.
The number of
employees involved
in the large company
entrepreneurship is
more than 1000
generally.
In case of social
entrepreneurship the
number of
employees depend
on the interest of
individual to
perform social work
and the size of the
business.
Risk
invol
ved
Because of
the size of the
small
business the
risk involved
is these type
of business is
relatively
low.
In case of these
type of business
venture the risk
involved is
relatively high due
to the high amount
of financial
investment
(Golkar Fard,
2019).
The large company
entrepreneurship
generally has strong
brand position in the
marketplace which
allows them to
effectively handle the
risk. So risk involved
is medium in this
case.
In case of social
entrepreneurship the
risk involved is not
much as these are
working towards the
welfare of the
society and often
gets support from
the governments.
Typologies of entrepreneurship
Type of entrepreneur
 Female entrepreneur: The business ventures which are owned and managed by the
female entrepreneurs.
 Social entrepreneur: The business ventures are started in order to work towards the
welfare of the society. These kind of entrepreneur focus on solving social problems in
the society.
Typologies
 Innovative entrepreneur: This kind of entrepreneur are always ready to find new and
innovative ideas present in the environment. These kind of entrepreneur focus on
continuously brining innovative through investing in their own ideas and converting it
into new product or services. For example Bill Gates, he is considered to be the
innovative entrepreneur who has created a huge impact on the world through his
innovation of microcomputer revolution (Djuraeva, 2018).
 Imitating entrepreneur: The another typology of the entrepreneur is the imitating
entrepreneur, these kind of entrepreneur easily learn or capture the new invention
done by any one else. For example, Jeff Bezoz is an great example of imitating
entrepreneur.
Assess the differences and similarities of various entrepreneurial ventures
The various similarities and difference of the various entrepreneurial ventures are
mentioned below:
Similarities
 All the four entrepreneurial ventures are started with some new and creative ideas.
 Small business, scalable entrepreneurship, large company entrepreneurship and social
entrepreneurship works towards satisfying the needs of customers and society.
 All these entrepreneurial ventures work towards fulfilling their vision and achieving
desired goals and objectives (GalvãoFerreira and Marques, 2018).

Discuss applicable data explaining how small businesses impact the economy
Small business are the kind of business ventures which generally involves less
amount of capital investments and started by a single entrepreneur (Kee, 2017). These kind
of business ventures includes very number of employees as all the functions are managed
and controlled by the owner himself. Large number of small business large contribute to the
development of the economy through their innovation and creative ideas.
From the above it is analysed that small business are the driving force behind the growth and
success of the economy. From the above it is seen that there are around 99.3% businesses
contributing to the growth and development of the economy as compared to the medium
business with only 0.6% and large business with only 0.1%. Also the small business are also
create large number of employment opportunities with 48% in comparison to the medium
size business with only 12% and large business with only 40 % employment opportunities
(Kurpayanidi, 2018). In addition to this, the small business also has a turnover of 33% which
is more than the medium size business with only 14%. but the large scale business has more
amount of turnover of 53% which more than small business and medium sized business
because of there size. Some of the impact of the small business on the economy is
highlighted below:
Local impact: The increasing number of micro and small business are effectively
leads the local and regional economy towards growth and enhancement. These kind of
business helps improvement of local community standards through offering quality goods
and services and offering employment opportunities to them. Offering number of
opportunities helps in improving the local areas.
National impact: With around 99.3% small business and 48% of employment rate,
small business are also positively impacting the national economy as well. Small business
are started with small creative and innovative ideas with the main motive of uplifting the
society and offering large number of employment opportunities. This automatically leads to
benefiting the overall national economy (Kuzieva, 2017).
Assess the importance of startup and small businesses to the enhancement of social
economy
The number of start-up and small business plays an very essential role in the
enhancement of the social economy. The start-up are generally started with some
innovative or creative ideas in to offer innovative product and services to the customers
and satisfy their needs and wants effectively. These kind of business captures large
number of market share with their innovative or creative ideas which leads them to
earn high amount of profitability. In order to effectively carry all the business
operation, start-up has to hire skilled and qualified candidate. This process will
automatically lead to reducing the unemployment rate in the country.
Many start-up offers quality products and services at lower rate in order to
satisfy the needs of the society and improving their living standards. Large number of
start-up are also involved in the CSR activities connected to the social, environmental
and economic problems in order to work towards the welfare of the society. They work
towards offering education to the children's in the rural areas who can't afford it due to
the financial problems. In addition to this offering large number of employment
opportunities in the rural areas will also helps the in overall development of the areas.
This will help in uplifting the standards of the rural society. This also effectively work
in enhancing the overall growth of social economy (Masurel, 2019).
CONCLUSION
From the above report it has been concluded that entrepreneurship is one of the most
essential factor in finding number of opportunities and converting those opportunities
into creative and innovative business ideas. It is also analysed that large number of
small business largely contribute to the enhancement and growth of the economy. This
report helps in analysing that there are various types of entrepreneurship such as small,
social and large entrepreneurship also these are different in terms of size and
objectives. It is also analysed that there are large number of small business as
compared to medium and large business offering large number of employment
opportunities contributing to social economy.
REFERENCESS
Amoroso, S. and Link, A.N., 2018. Under the AEGIS of knowledge-intensive
entrepreneurship: employment growth and gender of founders among European
firms. Small Business Economics, 50(4), pp.899-915.
Baumol, W.J., 2021. Economics and entrepreneurship. In World Encyclopedia of
Entrepreneurship. Edward Elgar Publishing.
Coulibaly and et. al., 2018. Economic globalization, entrepreneurship, and
development. Technological Forecasting and Social Change, 127, pp.271-280.