Impact of Micro and Small Businesses on the Economy

ESBM

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
LO1..................................................................................................................................................3
P1 Entrepreneurial Ventures and typology of entrepreneurial ventures......................................3
P2 Similarities and Differences between entrepreneurial ventures.............................................6
LO2..................................................................................................................................................7
P3 Impact of micro and small businesses on the Economy.........................................................7
P4 Importance of small businesses and business start-ups to the growth of social economy...10
LO3................................................................................................................................................11
P5 Characteristic traits and skills of successful entrepreneurs differentiating them from
business managers.....................................................................................................................11
P6 Entrepreneurial personality reflecting entrepreneurial motivation and mindset..................13
LO4................................................................................................................................................15
P7 Background and Experience that hinders and fosters entrepreneurship...............................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Entrepreneurship can be defined as ability of the entrepreneurs to develop, organise and
run a business enterprise with all the risk that it contains and accepting all the benefits of the
enterprise. Entrepreneurship is an act of entrepreneurs and entrepreneurs can be defined as
someone who has the ability to envision, establish and administer all the operations of the
venture. Entrepreneurs have the ability to identify and develop ideas and on the basis of that
create new inventions and this is the one of the factor which differentiates entrepreneurship from
other business organisation. This means that entrepreneurship includes product and service based
on new inventions which attempt to fill the gap between needs and desires of the customers and
existing products and services. This report will also discuss about entrepreneurial ventures
similarities and differences in entrepreneurial ventures. This report also discusses about micro
and small businesses and how it contributes business start-up contribute in social economy. Later
this will also discuss about characteristic traits of and skills of successful entrepreneurs that
differentiate them from other business managers. This report will also discuss about Britannic
Group, UK it was founded in 1985 and is a parent company to 3 subsidiaries.
MAIN BODY
LO1
P1 Entrepreneurial Ventures and typology of entrepreneurial ventures
Entrepreneurial ventures are of several types and these ventures differ on the basis of
nature and scope of operations. There are several elements that are covered in typology of
entrepreneurship and these are-
Entrepreneurs
Entrepreneurs can be defined as those people who develop, manage and run business
venture and take all the risk which is associated with the venture and all the profit and benefit of
the venture also are entertained by the entrepreneur (Frederick, O'Connor and Kuratko, 2018).

Serial Entrepreneurs
Serial entrepreneurs are those entrepreneurs whose all traits and characteristics are like
entrepreneurs but they instead of developing and creating one business venture create several
business ventures. This means that serial entrepreneurs create and develop entrepreneurial
ventures and them sell these ventures after they are established in market. In doing so
entrepreneurs create different type of ventures in different areas and having different scope.
These are known as serial entrepreneurs.
Intrapreneurs
Intrapreneurs can be defined as those employees who are working for other organisation.
But while working in the organisation their task is to develop innovative ideas for the growth and
benefit of the organisation they are working for.
Owner-Manager
These are those business owners who are not limited to own the business but along with
that also manage operations of the business. This means that individual those who have
established their business venture also manages all functions and operations of the business.
generally small and micro business owners manages their business themselves.
These were types of entrepreneurs, now types of entrepreneurship are being discussed they are-
Survival (micro) Entrepreneurship
These types of ventures are least in their scope. People employed in this type of ventures
are also limited. The maximum numbers of people that are employed in this type of business are
10. These businesses are able to earn money that is enough so that business owner can meet their
and their family’s requirements (Hardy and Maguire, 2017). The businesses which come in this
category are grocery store, consultant, and electrician. Turnover of these businesses is limited
and least in all other types of businesses and they are able to pay minimum share to employees if
they have any to employees. These businesses come under the category of micro businesses.
Lifestyle (small-business) Entrepreneurship

This is another type of venture which is bigger than micro enterprise and smaller than
managed growth enterprise. In this type of business people employed are less than 50 and these
type of businesses are able to give some higher profits than micro enterprise. In this type of
business focus of the entrepreneurs remain on increasing profit. Scope of such businesses extend
to city or in more than one city but remians limited to that. Turnover of the businesses is good
and mostly based on scope of operations. these businesses come under typology of small
business.
Managed Growth Entrepreneurship
This is another type of enterprise in which scope of enterprise is more than small and
micro businesses. These are businesses who are functioned with a specifoc growth and at a pace.
These businesses defines specific lifecycle of the business and in order to sustain in market have
to offer new and innovative products. These businesses come under typoogy of medium size
business and are able to manage efective turnover with maximum 250 employees. Scope of the
businesses might extend to national level.
Aggressive growth Entrepreneurship
This come under typology of scalable growth ventures. These are entrepreneurship in
which entrepreneurs start business based on technology and inovations and these business
consider that their vision can bring the change in the world (Noventa and et.al., 2018). This also
includes that entrepreneurs consider that their vision for the business will change the world.
There are several examples in which scalable entrepreneurships changes the world and recently
seen Google is one of the best example of this type of entrepreneurship. Number of employees
and turnover in not limited and based on extend and growth of businesses.
Social entrepreneurship
These are entrepreneurships in which vision and intention of the venture is to make the
society a better place. These businesses come under the typology of social enterprises and
employees and turnover of the businesses is based on their nature and scope of the business is
also not limited. This means these can be functioned at city or state level or can also extend to
international level. This also includes that enterprise does not operate with intention to earning

and increasing the profit but profit which is earned in these ventures is used for social purposes.
These type of ventures are of three types which are non-profit and profit and semi-profit natures.
Corporate Sector entrepreneurship
In this type of entrepreneurship ventures are operated as companies are operated. These
come under the category of large companies entrepreneurship (Morris and et.al., 2018). These
business operate on a cycle and to remain in the market they require constant innovation and this
is possible through intrapreneurships. This means that within organisation employees are hired
who are entrepreneurs. Turnover of the businesses is higher than all other types of
entrepreneurships and employees are also not limited. Scope of the business is higher and might
extend to international level.
Public sector Entrepreneurship
This means that ventures that are operating in public sector. Public sector organisation
and ventures are those which are operated by government or in partnership where majority of the
ownership in shares remain with local or central government. Employees are not limited in this
and turnover of these is based on nature of the business. Concerned with scope of the business in
state level entrepreneurship scope of the business extends to state. In national level
entrepreneurship it extends to national levels that are operated by central government.
P2 Similarities and Differences between entrepreneurial ventures
On the basis of ventures discussed above there are similarities and differences in
entrepreneurial ventures. This is because they are not only two types but they are divided in
several types. Similarities in these are-
 Social entrepreneurship and public sector entrepreneurships both are established and
operated so that they can serve society and people of society.
 Social entrepreneurship and public sector entrepreneurship both does not have the
intentions to earn profit. Profit earned by these organisations is again invested in the
organisation so that they serve society and make it a better place.