Importance of Start-ups and Small Business for Economic Growth

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Various types of entrepreneurial ventures and their relation to different typology of
entrepreneurship..........................................................................................................................3
P2 Similarities as well as difference between various entrepreneurial ventures.........................5
TASK 2............................................................................................................................................7
P3 Data and statistics explaining impact on small and micro businesses on economy..............7
P4 importance of start-ups and small business for economic growth........................................8
TASK 3..........................................................................................................................................10
P5 Characteristics, skills and traits of a successful entrepreneur..............................................10
P6 Effect of entrepreneurial personality on entrepreneurial; mind-set and motivation............11
TASK 4..........................................................................................................................................12
P7 Effect of background and experience on entrepreneurship..................................................12
CONCLUSION..............................................................................................................................13
REFERENCE.................................................................................................................................14

INTRODUCTION
An entrepreneur is someone who executes a new business idea with all its losses and
risks attached in order to generate profits. Ideas brought in by them are new and innovative.
Initiation of an entrepreneurship is from an idea which is then converted into a proper business
plan and executed (Chi, 2017). Entrepreneurship may be defined as a process in which
designing, introducing and launching a new product or service in a market place. B&M company
is an entrepreneurial venture launched by Simon and Bobby Arora. They started this business of
home wares chain which is now operating worldwide. In this report discussions on
entrepreneurship, different entrepreneurial ventures, its effect on different types of economy and
key skills of entrepreneurship are made. At the end it also states how can background of a person
can hinder entrepreneurship.
TASK 1
P1 Various types of entrepreneurial ventures and their relation to different typology of
entrepreneurship
Entities which uses new innovation and opportunities in order to develop an economy
and social values in society. Entrepreneurship can be said to be a process in which entities are
developed by taking high risks in order to generate more profits than usual. It focuses on giving
advices to companies at early and mid-stage. Entrepreneurial ventures can be divided into four
types which are mentioned here:
Scalable Entrepreneurial Venture: Scalable entrepreneurs are those who bring an idea
to change the world. They have a vision which is much larger than rest of the entrepreneurs.
They focus on recruitment of effective human resource. Such entrepreneurial ventures are
usually funded by venture capitalists. They focus on searching for a suitable business model
which is scalable and will help to gain success. There are many examples of such scalable
ventures such as Facebook, Instagram, shopping for gadgets online etc.
Social Entrepreneurial Venture: Product and services are developed in this type of
venture to solve a social issue or fulfil any social need. Their major motive is to make world a
better place after which they focus on their profits. These ventures can be for profits, non- profits
and hybrid as well. An example or Safepoint Trust could be used as this organisation have
launched syringes which can be reused. Their major targets are small and non-funded clinics

around the world. This organisation have provided 4 billion syringes till date in over 41 countries
throughout the world.
Small business Entrepreneurial Venture: There are a number of small businesses
present all over world these days (McKeown and et. al., 2016). There are 99% of businesses in
US which are small ventures who only hire non- governmental staff members. Profit earning for
them is to fulfil their basic needs. Venture capitalists do not usually fund such small businesses,
so they take help from friends or families. Carpenters, grocery stores, plumber, consultants etc.
are examples for small business entrepreneurial ventures. Carpenters usually start their work
from their home itself. They take help from their family members and employ just a few helpers
if required. Profit earned by them is enough to fulfil their basic needs.
Large Company Entrepreneurial Venture: These are the companies which launch a
product which are already associated to its old products. Motive behind launching of new
product is to fulfil customer requirement and be in par with latest technologies. Large companies
either partner with such innovative firms or buy them out. They focus on earning higher profits
and extending their businesses all over world. Some examples of such entrepreneurial ventures
are Samsung, Google, Microsoft, YouTube etc. Example of Walmart can be used here. It is an
America based supermarket which have its more than 11000 stores in around 27 countries. It is
still looking for expansion in more countries to earn maximum possible profit.
These enterprises executes operations in business environment which plays an important
role in establishing various typologies related to business. These typologies effect the way in
which an entrepreneur takes decisions. These typologies are mentioned below:
Different typologies of entrepreneurs ventures-
Typology refers to differentiating things as per their types. The base for this
differentiating is style, form, plan, form, structure etc. Below mentioned are such typologies:
Aggressive growth Ventures: These are the ones which are more innovative and uses
advanced technology. They aim for higher growth and staying in market for a longer period.
They focus on expanding their business at a global level. Large scale enterprises are considered
to be aggressive growth ventures. These ventures require huge amount of resources in order to
grow. This is why such ventures depend upon large investments from outsiders. Examples for
such ventures can be mutual fund companies.