Small Business Impact and Growth

This assignment delves into the significance of small businesses within local and global contexts. It examines their contributions to economic growth, job creation, and community development. The analysis encompasses factors influencing entrepreneurial success, the impact of social norms on entrepreneurial ventures, and the role of education in shaping entrepreneurial skills and motivation.

Entrepreneurship and Small
Business Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1) Different types of entrepreneurial ventures (M1).................................................................3
P2) Similarities and differences...................................................................................................4
D1) Critical examination of entrepreneurial ventures.................................................................5
TASK 2............................................................................................................................................5
P3) Impact on economy (M1)......................................................................................................5
P4) Contribution to social economy after Brexit.........................................................................7
D2) Impact on different levels of economy.................................................................................7
TASK 3............................................................................................................................................8
P5) Characteristics, traits and skills of successful entrepreneurs (M3).......................................8
P6) Different aspects reflecting motivation (D3)........................................................................9
TASK 4..........................................................................................................................................10
P7) Background and experience can hinder or foster entrepreneurship (D4)...........................10
M4) Link between characteristics and background...................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Individuals have to sustain their lives by working or giving their services and skills in
some form or the other. World economists have believed that a nation’s growth is accelerated
when entrepreneurial activities are enhanced. Large amount of risk is involved when a person
tries to develop his/her ideas into full-fledged business venture. This report depicts the different
types of entrepreneurial ventures and the basic similarities or differences which are present in
these types. Every business activity has some sort of effect on the economy. Both public and
private sector organisations have to be present in the nation so that flow of capital and stabilised
growth in the country is functionalised. In this report, the basic characteristics, traits and
behavioural attributes of an entrepreneur will be presented. It will help in understanding and
relating these traits with background and experiences of two successful entrepreneurs i.e. Mark
Zuckerberg and Mukesh Ambani.
TASK 1
P1) Different types of entrepreneurial ventures (M1)
There are four basic types of entrepreneurial ventures which are described as follows:
Small Business Entrepreneurship: The criterion to classify certain business ventures as
small business is their annual turnover and area of functioning. The number of employees
working in these businesses is less in number and many a times, small scale entrepreneurs work
individually. Plumbers, electricians, grocery store owners, etc. are some of the small business
entrepreneurs.
Scalable Start-up Entrepreneurship: A person with a revolutionary vision to change the
world develops their business right from scratch. This kind of entrepreneurial venture is a start-
up. Investments or capital required for this venture is acquired from different financial
consultants and venture capitalists.
Large Company Entrepreneurship: The growth of large business organisations is based
on innovation and creativity. The entrepreneurs that use disruptive innovation as a business
development method with use of entirely new products and services then they are called large
company entrepreneurs.
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Social Entrepreneurship: Every community or society has certain problems which tend
to be the barriers of growth and development. Social entrepreneurship ventures are focused on
developing product and services which tend to reduce or solve social problems. Profit orientation
or acquisition of market share is not the motive of this venture.
Entrepreneurial typology is a scheme that helps in classifying different types. The above
discussed ventures depict that entrepreneurial vision is the most important factor in
differentiating the types of business projects. For instance, both scalable and social
entrepreneurial ventures are developed with a vision to change the world. But scalable one is to
achieve profits and market share whereas social entrepreneurs do not want to earn profits. Public
and private sector organisations have deep routed links with the type of entrepreneurial ventures.
Public sector companies are owned and governed by the government of the country while
private sector is focused on earning profits and money through their business activities and
products. Partnerships and franchise owners are also entrepreneurs but their venture is
considered as small business and individuals running multinational organisations in the corporate
sector are considered as individuals with large company venture. Facebook was a small business
venture initiated by Mark Zuckerberg. This was initially developed to create an online
community for college students but vision of the entrepreneur led him to spread his idea in
almost all parts of the world. This depicts the scope of private sector entrepreneurship. On the
other hand, NHS i.e. National Health Service was developed to provide health care services only
in London but the support given to communities led this organisation spread its services in all
over UK.
P2) Similarities and differences
The similarities in aforementioned entrepreneurial ventures are vision. Be it small
venture, scalable or large company venture, all the individuals who are running these ventures
have a vision. They sight an opportunity and implement the strategy or plan for developing this
opportunity into a business enterprise. However, small business owners’ function to earn a living
rather than changing the world and large company heads or scalable companies has a purpose
behind their functioning. The only bond that connects these organisations is sole ownership and
less or no reliability over other individuals for accomplishing the task.
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The basic difference that is sighted amongst these entrepreneurial ventures is their
turnover. There would not be any opportunity to earn money or market share in social
entrepreneurship but small scale, medium or large enterprises have certain annual turnover. The
purpose behind functioning of these companies also helps in differentiating these ventures. The
type of services or products which are developed in these companies also creates a big difference
in the functioning of firms. For instance, an electrician is a small level entrepreneur but he is
providing his services for the benefit of other companies and organisations or even households.
On the contrary, Hilton or any other hospitality firm is functioning to provide employment and
hospitality services to people.
D1) Critical examination of entrepreneurial ventures
Scope is defined as the extent a particular thing can have its impact or relevancy. The
different types of entrepreneurship ventures as discussed before have different scope and impact
over the functioning. Considering the case of small scale entrepreneurship, there is little or no
scope of development. Individuals work with this approach just to earn a living and sustain their
needs and requirements. While social entrepreneurship aims to provide services and products to
the people who require some sort of care or attention. It is like developing a voluntary
organisation that works for welfare of the society or community. The scope of this venture is
quite high and may further get developed into larger organisations.
Large scale business enterprise also holds large scope of development and progress in
terms of both monetary benefits and expansion. Since, they have huge turnovers; the power to
invest and create disruptive innovation relies in the hands of business owners. They have large
number of opportunities to spread their ideas in different parts of the world and earn huge
incomes. Hence, there is great scope and development for large company entrepreneurships.
Start-ups are considered as seedlings of massive economic development if given the right
direction and path for functioning.
TASK 2
P3) Impact on economy (M1)
Micro and small businesses are those entrepreneurial ventures which are focused on
earning substantial money and recognition which is sufficient for sustaining a living. Every
financial activity that takes place in the country has certain impact over the national economy.
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The Gross Domestic Product is the measure of economic growth of a country. It is calculated
when data and statistics regarding the business activities and cash flow are interpreted and
analysed. UK is considered as one of the most powerful economies in the world. There is a
significant contribution of micro and small scale businesses to this growth. Grocery shops,
medical stores, electricians, carpenters, internet commerce storefronts, etc. are certain small and
micro business ventures.
About 75% of the employment in the country is provided by these individual owners.
Small and micro businesses are like backbone of the economy. They drive changes and help in
producing stabilised cash flow. Imagining a situation where there are no small scale businesses
means no vegetable vendors or stores which automatically implies that basic operations are not
executed. Entire economic cycle is paralysed with absence of such enterprises. Hence, a critical
impact is felt over the economy of the country with activities of micro and small businesses.
Large scale business organisations are also significant for the economic growth of the
country. Definitely the level of development is critically changed when comparing activities of
micro, small and large companies. Their annual growth and financial status of functioning is the
major factor that drives economy of UK. Large enterprises have great potential and opportunities
to expand businesses worldwide with enormous profit earning capabilities. The advantage for a
nation by these profits is experienced only when certain contributions are given by private
owners in the form of taxes and revenues. On the other hand, another factor that depicts the
impact over economy of the country due to operations of small, medium and large businesses is
employment.
The number of individuals that are working in a firm also helps in understanding the
economic conditions of the country. During the decision making session of UK regarding exit or
sustenance in EU, it was stated that country might face recession like conditions and major
circumstances of down fall will be created. But the emergence of start-ups and small level
entrepreneurs has helped the country to recover these changes and come up with a stronger
position in the world. Hence, it is realised that economic growth is stabilised when sufficient
number of small, micro, medium and large enterprises are present and functioning in the country.
The Gross Domestic Product is entirely depended on the activities of all these firms and
entrepreneurial functions.
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P4) Contribution to social economy after Brexit
Brexit was the critical step that UK had taken by voting out of the European Union. It
definitely had a deep impact over the economical conditions of the country. Since Brexit, there
has been a 0.5% increase in growth of UK. The contribution of small businesses and start-ups is
quite significant. Despite of various negative forecasts for the nation’s downfall, the significant
increase in economy is a setting up of example that nations can survive beyond EU legislations.
The concept of entrepreneurship has taken spirit in the past few years with emergence of start-
ups. People are now diverging towards earning more income by utilising the skills and
educational qualifications in their own benefit rather than in welfare of other companies.
Start-up is a medium to enhance innovative growth and bring in more scope of economic
development in the country. Consumers and their demands are efficiently met when new
products and services are provided with significant strategies. The UK government encouraged
entrepreneurial activities and further helped in its own benefit post Brexit. Several types of
schemes and policies encouraging start-ups or small businesses were launched to motivate
individuals in pursuing their dreams instead of leaving the country for better opportunities.
Hence, social economy has been enhanced after the decisions of Brexit have been implemented
due to increase in small businesses and start-ups.
D2) Impact on different levels of economy
Small businesses are usually firms that hire individuals not more than 500 in number.
This limits their scope of functioning but efficient strategies can bring in opportunities for
business expansion in other aspects and areas. The impact that is felt over different levels of
economies i.e. local, regional, national and international levels; can be understood with help of
the contributions small businesses make over economy. About 64% of the new jobs that are
generated every financial year are formulated by small firms. Since, large companies require
employees who are experienced and skilled enough, there is less scope for fresher or younger
individuals. Small firms attract talents and provide them required experience which can further
be utilised in exploring opportunities of large enterprises.
The adaptability and flexibility towards different economic changes makes small
businesses highly significant for the country. This helps in maintaining the cash flow which is
often hindered by financial breakdown of large enterprises. From all the above facts it is clearly
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understood that small businesses have larger impact over local and regional economies but a
medium level impact over the national economy. Considering the international level, small
enterprises can have such deep impact that global recognition of a currency is often affected by
their activities.
TASK 3
P5) Characteristics, traits and skills of successful entrepreneurs (M3)
Mark Zuckerberg and Mukesh Ambani are two of the most successful entrepreneurs that
have gained worldwide recognition due to their revolutionary ideas and strategies. The basic
characteristics, traits and skills of these two successful individuals have been depicted as follows:
1. Determination: Entrepreneurs require setting goals and objectives which have to be
followed for meeting the vision and mission of the idea. This ability can only be gained
when the person is full of determination. Both Mukesh Ambani and Mark Zuckerberg
were determined enough to explore their idea with determination.
2. Assessing risks: Businesses cannot function without risks. Individuals have to take risks
at some point in implementing their ideas and thoughts into actual businesses. The person
who takes this risk and invests resources without thinking about the outcomes. Mark took
the risk of making an internet based portal which is Facebook- the largest social
networking website of the world.
3. Confidence: Another important trait that has been witnessed in successful leaders and
entrepreneurs is confidence. While seeking investors and crowd funding, confidence
helps in gathering trust and faith of individuals to believe in their ideas and products.
4. Cravings to learn: Learning is a process that is continuous in nature and transferrable to
other individuals. Successful people do not leave their learning cravings. They keep on
exploring new possibilities and learn from every person or surroundings irrespective of
their level in society.
5. Accepting failures: There can be situations of failure trailing with success. It is important
to accept these failures and develop new strategies which will help in recovering from
this failure. Successful entrepreneurs have expertise in overcoming such shortcoming
situations and continue their business with determination and understanding.
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The different lines of arguments related to entrepreneurial characteristics include the
source of these traits and their inheritance capabilities. Various theorists and philosophers stated
that leadership and entrepreneurship are interrelated. This aspect of business functioning can
help in devising great strategies with larger effectiveness. It is not necessary that a person who
doesn’t have inborn talent or entrepreneurial skills cannot develop a start-up. If given proper
training and guidance, there are chances that he/she may become the next generation of
transformational changes. Hence, there is an argument over the inheritance of traits. Mark
Zuckerberg is one of the best examples to justify the judgements. He developed his start-up idea
that is Facebook into a renowned technological brand.
P6) Different aspects reflecting motivation (D3)
Motivation is an attribute that helps in gathering encouragement for executing certain
actions. The characteristic traits that have been depicted before have great contributions in
influencing and enhancing mind-set of an individual. This automatically motivates the person to
build a workable path for further functioning. For instance, a person has an idea of selling new
washing powder that is technologically advanced and helps in saving a lot of time and money
over washing clothes. His revolutionary idea of a new washing powder can be communicated to
potential customers only when there is determination, confidence and the ability to take risks.
The fear of failure when conquered can help in initiating a strong start-up.
Determination and confidence are two factors that play a vital role in developing
motivation in a person. It is important for an entrepreneur to be self-motivated so that he/she can
confidently communicate and deliver his product and services to the audience. Once, the idea is
implemented a positive mind-set must be developed throughout the process so that business
functioning is not disturbed. Characteristics and traits of a person play a significant role in taking
decisions during the business trials.
Motivational drivers of successful entrepreneurs are innovation and speedy recovery from
failures. Moreover, the acknowledgement they gain from successful launch and acceptance of
their products and services is also one of the chief factors in driving motivational characteristics.
The liabilities that occur while working in a firm as an employee are one of the key drivers of
motivation in a person to pursue entrepreneurship. This factor helped Mark to utilise his
exemplary coding skills and develop a portal that was not only innovative but revolutionary.
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Correct implementation of idea and failures in his personal life led him to withstand all barriers
and reach a position that he holds currently. The major factor that motivated him to work hard
was to communicate his idea to the world. This aspiration and determination of gaining world
recognition motivated Mark Zuckerberg to become one of the strongest and youngest
entrepreneurs in the entire world.
Money is also a motivational driver that helps in encouraging individuals to develop their
ideas. Mukesh Ambani had enough money to implement his ideologies and strategies into real
life experiences and bring in the entire new world of technological developments in India in the
form of Reliance. Currently, Mukesh Ambani holds the first position of the richest people in the
country and has the second largest house in the world.
TASK 4
P7) Background and experience can hinder or foster entrepreneurship (D4)
Background helps in determining the whereabouts of a person and helps in understanding
the atmosphere in which an individual has developed. Experience is something that is earned and
not transferred from one person to another. Entrepreneurship when successful has loads to be
experienced and learnt from. A person’s successful venture has many things to be learned.
Taking the case of Mukesh Ambani and Mark Zuckerberg, their hard work, efforts and proper
planning have helped them reach such position in the world. It is important to understand the
contribution of background and experience to this success of these two personalities.
Ambanis belonged to a poor background but the vision and efforts of Dhirubhai Ambani
i.e. the father of mukesh Ambani led the group to flourish and develop in India. All the activities
of his father influenced Mukesh to develop his personality in such a way that he would also gain
same or much greater reputation in the world. The basic idea of having the determination and
vision of pursuing dreams and ideas in the background helped the entrepreneur in Mukesh to
excel in his field of governance. On the other hand, basic achievements in academics and
continuously developing interest towards coding helped Mark Zuckerberg to implement his idea.
Hence, it is important that background and experience need to be fostering the entrepreneurial
capabilities of a person.
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It is possible that negative experiences and a discouraging background can cause troubles
in the governing of business. There are certain situations in the professional world where a
person can cross his limits and portray negative behaviour over his employees. In this situation,
if he/she doesn’t have the acceptance and regretting capabilities then troubles are not far. On the
other hand, if that particular person regrets his deeds and accepts his misbehaviour then there are
chances that employees won’t leave their company. Henceforth, an experience is catered by the
entrepreneur in his functioning cycle regarding how to behave in difficult situation. It will help in
avoiding the mistake in near future.
M4) Link between characteristics and background
Characteristics and backgrounds have a deep routed link. Right from childhood if a
person is taught to use unfair means in handling situations and gaining power then he/she will
portray the same attitude and attribute in his future communications and interactions. This
depicts that background plays a vital role in developing the up-bringing atmosphere of a person.
There are definitely external influences that help in moulding the personal traits of an individual
but experiences and self-control are also certain things that become dominant after a point of
time. Taking the case of Mukesh Ambani, he faced a lot of failures in his expedition to success
but his background was full of motivation and so were the characteristic traits. This made the
person to roar back and conquer the business world specially in the telecommunications industry
of India.
Similarly, Mark Zuckerberg faced a lot of allegations while he launched Facebook. He
was earning billions of dollars and this success was consequently hindered by activities of his
enemies. But his characteristic traits and positive background helped him to recover proper
losses to reputation and gain sole ownership of the company. Hence, it is important to be able to
control the influence of background and characteristic traits for gaining good reputation in the
business world.
CONCLUSION
Through this report one can easily understand the different types of entrepreneurial
ventures. It is significant that no matter the size of start-up or company is small or large;
economy of country is deeply impacted. In this report, the contribution and impact of small and
micro businesses on the economy status of UK has been demonstrated. Post Brexit, the changes
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and developments in UK’s economic conditions due to start-up or small business activities is
also depicted in this report. A detailed description regarding the basic characteristics, traits and
behavioural aspects of an entrepreneur has been given in this report. It helps in linking the
background and experiences which a person has during implementation of his idea and the
success of the venture. This understanding can help a budding entrepreneur to instigate his spirits
and energise the idea into actual functioning business for fulfilling the vision.
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REFERENCES
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