Impact of Small-Scale Businesses

This assignment examines the significance of entrepreneurship in driving economic growth. It analyzes the contributions of small-scale businesses, highlighting their employment generation capabilities and role in supporting low-income individuals and backward areas. The document also discusses Foreign Direct Investment as a driver of business establishment and inventory acquisition. Finally, it concludes by emphasizing the inherent risks associated with entrepreneurship while acknowledging the innovative ideas that fuel this sector.

ENTREPRENUERIAL
VENTURES
(Project 1)

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Examining different entrepreneurial ventures and their relation with the typology of
entrepreneurship..........................................................................................................................1
P2 Similarities and Differences between Entrepreneurial Ventures .......................................3
TASK 2............................................................................................................................................5
P3 Impact of micro and small businesses on the economy.........................................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
Entrepreneurship can be stated as process or a concept which is being implemented for
various kind of purposes and among them major one is earning livelihood from the business
operations (Baum, Frese and Baron, 2014). Business is something which is beings started by an
entrepreneur with the motive of innovate and produce effective goods and services within the
marketplace for attaining marketplace. Certain things which will be discussed within this report
like exploring the types of ventures along with the impact of small business on the economy.
TASK 1
P1 Examining different entrepreneurial ventures and their relation with the typology of
entrepreneurship
There are four types of entrepreneurship ventures within the marketplace which are being
established while in the case of starting up of business: Small business Entrepreneurship: There are various types of entrepreneurs in the modern
scenario and they are formulating up the ways through which they can make entry within
the marketplace. The mots effective way through which it can be done is setting up of
business at initial stage and small scale business. In the market of UK, there are about
5.7 million small scale business and this kind of exposure has almost covered up the
base of about 10% . By this rate, unemployment has been minimised and now many of
them are getting ethical jobs and along with that this kind of business has covered about
50% of non governmental workers and provided them jobs. There are some of the
common businesses which are being established and they are like grocery stores,
agencies, wooden stores, electric products (Bhachu, 2017). This kind of businesses are
being operated with the motive of earning healthy life and getting financially secured.
Attaining basic needs and wants of own and family along with providing education to
the upcoming generation. Thus, main typology of this kind of business can be stated as
completing the basic needs and wants and getting secured in financial terms. Scalable Start up Entrepreneurship: This kind of entrepreneurship ship style sis being
introduced with the motive of bringing positive and effective changes within the
economy of the country by formulating up with mission and vision. It is highly essential
to have a vision and thus more then that it is needed to have investors who have the same
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business mindset and thus can provide the support. Besides this, it is highly essential to
have effective and skilled workers who has the potential to give high level of
performance and thus work on the vision in effective and better manner. Formulating
strategies and making plans can lead the company to high level of morale for growth and
success. In this kind of entrepreneurship style, typology which can be implemented in
the aggressive growth ventures. There are number of factors which are being involved
within the process of entrepreneurship and now they have their focus on achieving goals
and objectives along with bringing out skills and abilities in order to develop at rapid
speed. Large Scale Entrepreneurship: This kind of entrepreneurship style is being applied and
innovated on the large scale and this needs huge amount of fund for running the business
process. There are number of tools and techniques which are being adopted with the
motive of adopting growth and success. Along with that, innovation is the technique
which can be adopted within the products and services which are being provided so that
competitive advantage can be bought. The focus criteria of an entrepreneur is on
conducting the deep research and thus determine actual wants and needs of the customer
within the marketplace and thus give them high level of satisfaction (Burrows, 2015). In
this kind of entrepreneurship style, typology which can be attached is the turning the
focus of large scale business on attaining sustainability which in turn will provide
assistance in attaining growth and success which has been envisioned. Along with that,
another method by which growth and success which can be obtained is by drawing the
attention of customers for the goods and services and thus provide them high level of
satisfaction in effective manner.
 Social Entrepreneurship: In this kind of entrepreneurship style, the mission is to
manufacture effective products and services by which actual needs and wants of the
customers and the people who are in need can be fulfilled in better manner. The main
focus of the entrepreneur is on determining the social needs and wants of the economy
and thus try to minimise those issues. Making the economy a better place is the main
vision of the company along with the entrepreneur so that prosperity can be observed.
These are mainly non-profit and are hybrid in nature. In this kind of entrepreneurship
style, typology which can be related is the behaviour for the growth and success which
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can mainly enable the people who are living within the economy so that development
can take place and thus live in better lifestyle and attain growth with the generation
(Butler, 2012).
P2 Similarities and Differences between Entrepreneurial Ventures
There are number of sectors along with some of the grounds on which various kind of
similarities and differences will be judged and thus major of them are described below:
Lifestyle Ventures or the business
Similarities
1. There are some of the innovative and
unique thoughts which are being
utilised for establishment of business
process along with its operations.
2. There are high skilled employees
which are being hired so that they can
attain tasks and objectives.
3. Main focus of the business is on
getting growth and success in order to
attract large number of customers.
Serial Entrepreneurs ventures
Similarities
1. The major similarity in both kind of
businesses are implementation of
innovative ideas and creative
operations which are being utilised for
running business.
2. There is need of high skilled workers
along with sound knowledge within
this entrepreneurship style so that
certain objectives can be attained
within allocated period of time (Dacin,
Dacin and Tracey, 2011).
3. Aim and objectives of the company are
highly similar as they both believe in
attracting large number of customers
within marketplace.
Differences
1. Business is being established with the
motive of developing the lifestyle in
social and economical terms.
2. Operations of the business are being
conducted and thus operated with the
motive of long running and that is
Differences
1. Establishment of the company is being
done by applying various innovative
ideas and attaining growth and success
and when the objective is being
attained, power is transferred in other
hands.
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being done by keeping powers in single
hand (George and Bock, 2011).
2. There are various roles and
responsibilities which are not being
handled for long tenure, hence they are
being given to another person who has
the skills and ability to run that
business in effective manner.
Female Entrepreneur Business
Similarities
1. While establishing the business, the
main focus is on attaining growth ans
success by completing the objectives.
2. In order to attain customers for long
period of time, firstly market vis being
analysed and thus goods and services
are being manufactured as per needs.
3. Main focus of the entrepreneur is on
attaining huge amount of customers
within the company so that competitive
advantage can be gained (Grimaldi and
et. al., 2011).
Male Entrepreneur Business
Similarities
1. Business is being established with the
motive of completing the objectives so
that profit and revenue can be attained.
2. Products and services are being
developed according to the needs and
wants of the customers. On this basis,
manufacturing is being done with
modifications.
3. Just like there is need of acquiring large
market share by female entrepreneur,
same is the need of male as well.
Differences
 Female entrepreneur are low in the
abilities along with confidence in
aspect of skills while establishing up of
business.
 There are various kind of skills which
are being utilised especially while
taking effective and better decisions.
Differences
 In context of starting up new business,
there are high number of skills and
abilities are being utilised as compared
to female ones.
 There is low score of the male
entrepreneur when it comes to
formulate any kind of decisions.
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 There are much more better
communication channels which are
being utilised by the female
entrepreneur.
 Effective communication funnel can be
formulated (Hitt and et. al., 2011).
TASK 2
P3 Impact of micro and small businesses on the economy
In modern scenario, economy is getting factors of development and in that crucial role is
being played by small business enterprise. This can be stated as major concern of the UK as
these kind of business have large number of shares within the marketplace. There are various
kind of factors for the country which have the potential of affecting the economy of country in
positive along with negative manner as well. GDP rate, Import and Export rate, Unemployment
and many others are some of those factors.
There are number of factors which has the potential of putting up of direct impact on the
economical factors of the country like UK and in 2016, there are about 6.4 million business
which are being operated in successful manner on the small scale business. There are about 98%
of the business which are operated as small scale business and thus have been contributing in
growth and development of the economy. Within UK, about 33% of the is employment rate and
thus creates 19% of the turnover. In modern stage, about 7 million business which are present
within the economy which is the just the double of the year which was 3.5 million approximately
(Landes, Mokyr and Baumol, 2012).
There is no appropriate index which has been formulated and thus bit has been classified
but there are some usual conditions which are being made in order to formulate the right
indexation which can be bought within the process of business. In modern scenario, there are
number of things which are getting much more complex and in order to resolve them below are
the described factors: Micro Business: This kind of business is conducted on small scale and get secured in
financial terms. There are approx 10-15 staff members and thus turnover is about $2
million. Main purpose of this entrepreneurship style is generating the maximum amount
of revenue for growth and success. This kind of business is majorly in the form of Sole
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Proprietorship due to less funding by single person. There are number of areas from
which funding comes from like personal savings, small loan of banks. This kind of
business is generally in the form of shops, carpenters, car workshops, stores, cafe and
many more. Small Business: This kind of business is small in nature but is high as compared to micro
level business. This is the major difference between small scale and micro level business.
This kind of business mainly comprises of about 50 employees and has revenue of about
10 million dollars. The main focus of entrepreneur is on acquiring large number of
customers in maximum manner. In this, partnership is the main form of this kind of scale
and as single body can not handle this kind of business alone. This kind of business is
private in nature as there is no role of Govt. in this (Martin, McNally and Kay, 2013).
 Medium Business: In this kind of business, it is large in nature as compared to micro and
small scale business and for that high amount of fund is being needed for establishment.
This kind of business have around 250 employees and their turnover is around 50 million
dollars. Main purpose is generating revenue along with contributing in economical and
social factors.
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Illustration 1: various affect on areas
(Source: Rate of Employment, 2017)
There are various kind of economy which can impact the SME'S: Employment: There are about 90% of the business which are being captured by the small
scale business and this will in turn help out in giving employment to 50% of the non
governmental workers. Foreign Direct Investment: This kind of concept is something which is being executed
with the motive of business establishment and purchasing up of new inventory.
 Backward Areas: Platform of opportunities are being provided by small scale business
for the low class people along with backward areas so that they can get job and thus earn
their livelihood.
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CONCLUSION
From the above report, it can be concluded that entrepreneurship is kind of risk who can
take risk to manufacture products and services for the innovative idea. There are various things
which are being discussed like impact of SME on the economy along with various kind of
ventures and their interrelated typologies.
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REFERENCES
Books and Journals
Baum, J. R., Frese, M. and Baron, R. A. eds., 2014. The psychology of entrepreneurship.
Psychology Press.
Bhachu, P. ed., 2017. Immigration and entrepreneurship: culture, capital, and ethnic networks.
Routledge.
Burrows, R. ed., 2015. Deciphering the Enterprise Culture (Routledge Revivals):
Entrepreneurship, Petty Capitalism and the Restructuring of Britain. Routledge.
Butler, J. S., 2012. Entrepreneurship and self-help among black Americans: A reconsideration of
race and economics. SUNY Press.
Dacin, M. T., Dacin, P. A. and Tracey, P., 2011. Social entrepreneurship: A critique and future
directions. Organization science. 22(5). pp.1203-1213.
George, G. and Bock, A. J., 2011. The business model in practice and its implications for
entrepreneurship research. Entrepreneurship theory and practice. 35(1). pp.83-111.
Grimaldi, R. and et. al., 2011. 30 years after Bayh–Dole: Reassessing academic
entrepreneurship. Research Policy. 40(8). pp.1045-1057.
Hitt, M. A. and et. al., 2011. Strategic entrepreneurship: creating value for individuals,
organizations, and society. The Academy of Management Perspectives. 25(2). pp.57-75.
Landes, D. S., Mokyr, J. and Baumol, W. J. eds., 2012. The invention of enterprise:
Entrepreneurship from ancient Mesopotamia to modern times. Princeton University
Press.
Martin, B. C., McNally, J. J. and Kay, M. J., 2013. Examining the formation of human capital in
entrepreneurship: A meta-analysis of entrepreneurship education outcomes. Journal of
Business Venturing. 28(2). pp.211-224.