Social and Lifestyle Entrepreneurship: A Comparison and Impact on UK Economy

1
Presented by
Affiliations
Supervisor
Date of submission

2
Contents
Introduction...............................................................................................................................................3
Similarities and differences between Social and Lifestyle Entrepreneurship.......................................4
SMEs Impact on UK Economy.................................................................................................................5
Importance of SMEs on economic growth of UK.......................................................................................5
Character traits and skills of the two entrepreneurs..............................................................................6
References..................................................................................................................................................8

3
Introduction
According to Autio ,(2014) an entrepreneur is an individual who takes risks and creates an
enterprise with the aim of making profit. Entrepreneurship refers to the activity of taking risk and
coming up with a viable idea which eventually becomes a venture or business. The types of
entrepreneurial enterprise or ventures always have a positive impact on the community and
society by improving the economy.
There are different types of entrepreneurship in the business world which includes; small
business entrepreneurship, scalable startups entrepreneurship, large company entrepreneurship
and lastly social entrepreneurship. The number of entrepreneurs and startups in rapidly growing
in most parts of the world. The small businesses involve entrepreneurs who sell groceries, do
hairdressing, consultants, carpenters, electricians, plumbers and travel agents. In this type of
entrepreneurship, they employ local employees or the family. In most cases they are not
profitable and their aim is to feed the family and make little profit (Barringer,2010). The type of
entrepreneurship is funded through friends and family through small business loans since they
cannot access bank loans since they are small businesses. Examples of these businesses involves
restaurants, retail stores, construction firms and agriculture.
Another type of entrepreneurship is scalable startups entrepreneurship in which big
entrepreneurs like Silicon Valley and their venture invest in. These are the types of entrepreneurs
who start a business knowing that the business will eventually change the business world in the
future (Baum,2014 p.73). The business is able to attract investments from different risk takers
investors or venture capitalists who are the best in their areas. The investors then focus on
expansion of the business through innovation and creativity. This type of entrepreneurship
attracts risk capital because of the high returns. Examples involves a company manufacturing
medical devices or developing life-saving medicine; IT companies developing software or apps.
Another type of entrepreneurship venture is large company entrepreneurship or ventures. These
type of ventures are long lasting and do not fail. Most of the ventures grow through different
innovations and offer variety of new products in the market. In the current market, other small
businesses and companies require the large companies to create new products which suits the