[SOLVED] The Importance of Entrepreneurship in Economic Development

This assignment delves into the significance of entrepreneurship in boosting economic growth. It explores the traits and skills of effective entrepreneurs, including proper planning, capital management, ability to face challenges, motivation, and hard work. The entrepreneurial personality is also analyzed for its reflection on entrepreneurial motivation and mindset, highlighting the importance of positive attitudes and inspiration among employees.

Student Name/ID
Number
Unit Number and
Title
9 Entrepreneurship and Small Business
Management
Academic Year 2018
Unit Tutor Mohamaad Ahsan khan
Assignment Title Venture types and impacts of small business on
economy
Issue Date 16-07-2018
Submission Date 30-12-2018
IV Name & Date Hatif Roohan Chishti
Submission Format
The submission is in the form of an individual written report. This should be
written in a concise, formal business style using single spacing and font size
12. You are required to make use of headings, paragraphs and subsections
as appropriate, and all work must be supported with research and referenced
using the Harvard referencing system. Please also provide a bibliography
using the Harvard referencing system. The recommended word limit is
2,000–2,500 words, although you will not be penalised for exceeding the
total word limit.

LO1 Explore and illustrate the range of venture types that might be
considered entrepreneurial
Assignment Brief and Guidance
You are planning to start your enterprise. And you want to complete your
research for small medium enterprises before starting practical work on it.
Every business at its initial level is small business later on it may expand so
you are planning to do complete research on it. For this purpose, you are
required to make a report on entrepreneurship and small business
management.
 You are required to investigate the concept of entrepreneurship,
entrepreneurial activity and enterprise in your chosen organization.
Also differentiate between serial entrepreneurs, intrapreneurs and
owner-managers. In addition to that discuss which type you will use in
your venture.
 Explore the roles and characteristics of micro, small and medium-sized
organizations in entrepreneurial ventures. Also discuss the similarities
and differences between these ventures which can help you to
implement in your entrepreneurial venture.
 Provide a clear understanding of the growth and lifestyle of
entrepreneurship in public sector and corporate sector.
 After discussing the growth of entrepreneurship in public sector and
corporate sector, you are required to critically analyze the scope,
development and growth of your chosen entrepreneurial venture.
Unit Learning Outcomes
LO2 Assess the impact of small businesses on the economy
Assignment Brief and Guidance
In reference to the LO1 as a new entrepreneur, you need to investigate the
impacts of small businesses on the economy by taking the example of your
chosen organization.
 Analyze the number and types of small firms and their contribution to
the social economy at national, regional and local level. Also highlight
their size, turnover, profit, rate of growth, innovation, sustainability
and adaptability statistics and how these findings can affect your
selected venture/project report.
 Evaluate the differences small, medium and large businesses make to
the economy, applying relevant data and statistics. Also highlight the

impacts of local regional national and international business start-ups
on different levels of economy and how it will affect your chosen
venture.
Unit Learning Outcomes
LO3 Determine and assess the key aspects of an entrepreneurial
mindset
Assignment Brief and Guidance
 In reference to 1st and 2nd Los, You need to do research on your
personal characteristics as entrepreneurs and small business owners.
Provide different lines of argument relating to characteristics of
entrepreneurs such as are entrepreneurs born or made? Or can
characteristics be learnt and adopted by anyone? Also briefly discuss
the types of skills that represent entrepreneurs and how these skills
will differentiate you from other organization managers.
 Explore entrepreneurial characteristics and situational factors in a
personal context, including family upbringing, lifestyle, cultural
differences and personal motivation and drivers which will help you in
setting up your entrepreneurial venture. Also give specific examples of
successful entrepreneurs and their motivational drivers and relate
them with your personality.
Unit Learning Outcomes
LO4 Examine the different environments that foster or hinder
entrepreneurship
Assignment Brief and Guidance
 Examine the range of factors that influence the choice to start-up a
business, including
Personal background and education, national culture, economic
circumstances and character traits. which can hinder your chosen
project.
 Elaborate with examples the potential rewards and the risks and
uncertainties of business start-up and how they can be mitigated.
 In your chosen project you have to critically evaluate that how your
past experiences influence personality of entrepreneurs both positively
and negatively with the help of examples.

Learning Outcomes and Assessment Criteria
Pass Merit Distinction
LO1 Explore and illustrate the range of venture
types that might be considered entrepreneurial
D1 Critically examine
the scope, development
and growth of
entrepreneurial
ventures.
P1 Examine different
types of entrepreneurial
ventures and explain
how they relate to the
typology of
entrepreneurship.
P2 Explore the
similarities and
differences between
entrepreneurial
ventures.
M1 Investigate a
diverse range of
entrepreneurial
ventures to
demonstrate an
understanding of
entrepreneurship in
both the public and
corporate sector.
LO2 Assess the impact of small businesses on the
economy
D2 Critically examine
how small businesses
have an impact on
different levels of the
economy (local,
regional, national) and
in an international
context.
P3 Interpret and assess
relevant data and
statistics to illustrate
how micro and small
businesses impact on
the economy.
P4 Explain the
importance of small
businesses and business
start-ups to the growth
of the social economy.
M2 Evaluate the
differences small,
medium and large
businesses make to the
economy, applying
relevant
data and statistics.
LO3 Determine and assess the key aspects of an
entrepreneurial mindset
D3 Analyse the
characteristic traits,
skills and motivational
P5 Determine the M3 Explore and

characteristic traits and
skills of successful
entrepreneurs that
differentiate them from
other business
managers.
P6 Assess how aspects
of the entrepreneurial
personality reflect
entrepreneurial
motivation and mindset.
examine different lines
of argument relating to
entrepreneurial
characteristics.
drivers of successful
entrepreneurs,
supported by specific
examples.
LO4 Examine the different environments that
foster or hinder entrepreneurship
D4 Critically evaluate
how background and
experience influences
entrepreneurs, both
positively and
negatively, by
comparing and
contrasting examples.
INTRODUCTION:
Entrepreneurship is the cycle by which people seek after circumstances
regardless of the assets they as of now control. Entrepreneurship is
characterised as independent work of any kind. Entrepreneurs purchase at
specific costs in the present and sell at questionable costs later on. The
Entrepreneur is a conveyor of vulnerability. He is the specialist "who joins all
methods for creation and who finds in the estimation of the items… the
restoration of the whole capital he utilises, and the estimation of the wages,
the interest, and lease which he pays, just as benefits having a place with
himself."
P1 Examine different types of entrepreneurial ventures and explain how
they relate to the typology of entrepreneurship.
Solution:

Entrepreneurship gives the new arranging of thoughts to begin another small
business in little medium enterprises. Entrepreneurs attempts to assumes all
the liability at the time of advancement of business and completing of
activity in a progressive strategy. There is an immense necessity pioneering
adventure at the ideal opportunity for working in the associations particularly
for performing business. The enterprising ventures have been done in the
performing industry in corporate and public area territories. Enterprising
endeavours have been centred around giving the legitimate counsel on the
administrations needed at the hour of working in the beginning phase. This
totally relies upon the working of different phase of performing business in
the association. The warning assistance ascend from enterprising
endeavours assists with adopting appropriate strategies dependent on the
improvement of methodology, execution of different plans and set systems
administration on the predefined zones while working in the firm. The
principle thoughts for presenting of business visionary depend on business to
actualise novel thoughts and arranging required handling on the
troublesome circumstance while working in the organization. There are
various kinds of business adventures falsehoods and this are follows as-
a)Agricultural business people.
b)Trading business people.
c) Manufacturing business visionaries
There are some business adventures dependent on the employments of
innovation and technology that incorporates both the non-specialised and
specialised zones. Besides, it additionally remembers for the territories of
proprietorship that depend on private, state and joint business visionaries at
the time of performing business in the company. Entrepreneurship
adventures depend on different zones of organization while performing
business that incorporates with little, enormous and medium scale.
There are different kinds of typology of entrepreneurship while
performing business in the association. These are as per the
following:-
a)Entrepreneurial firms:-
This incorporates with the straightforward type of organization that works
dependent on greater operational unit comprising with not many competent
individuals in the association. This is the significant thoughts of business
people to acquaint different thoughts with change into a greater operational
unit.

b) Lifestyle firms:-
The Entrepreneur attempts to actualise different arranging and thoughts to
plan the way of life of the representatives in an adequate way. This supports
the representative at the hour of going to of meeting with other association.
c) Salary-Substitute Entrepreneurs:-
The salary substitute entrepreneurs attempts to execute different plans to
make an appropriate structure of the compensation that is designated on the
worker toward the finish of month while working in the organization.
P2 Explore the similarities and differences between entrepreneurial
ventures.
Solution:
There are different sorts of entrepreneurial adventures at the time of
working in the organization. This includes the following:
a)Large scale, small scale and medium scale entrepreneurs:-
These types of entrepreneurs remembers for various types of organization while
performing business. Additionally, this entrepreneurs gives restricting measure of
capital needed at the working in medium scale firms. In the large scope
organization, entrepreneurs works in a large scope creation by presenting high
danger of execution and making more measure of benefit.
b) State, joint and private entrepreneurs:-
In the private entrepreneurs, attempts to perform obligation dependent on
groundbreaking thoughts that help being developed of business. The joint
entrepreneurs’s lies with the business at the time of working joint wandered with
government. The entrepreneurs give novel thoughts the assistance of government
to make execute working of business.
c) Technical and non-technical entrepreneurs:-
There are two types of entrepreneurs: non-technical and technical process
contingent on the working. The technical entrepreneurs attempt to run business
with the assistance of new innovative supplies. This would assist the business with
expanding the pace of efficiency by using least time. In the non-technical territories
entrepreneur attempts to actualise different arranging and thoughts that assists
with building up the business.
P3 Interpret and assess relevant data and statistics to illustrate how micro
and small businesses impact on the economy.

Solution:
There is a tremendous imperative to complete the small and micro business for the
advancement of economy. The small and micro business gives the spine to giving
the improvement of economy. This gives certain opportunity in the regions of
business sectors by enormous opening of the showcasing field for the new
beginning up association. Additionally, micro and small businesses gives
tremendous opportunities for work among the individuals. The ascent of limited
scope business actualises groundbreaking thoughts that help with empowering the
pace of rivalry with different organisations. Almost 99% of business is framed with
the assistance of micro and small business. The kickoff of new micro and small
business contributes the greatest measure of market arrangement and increment
the opposition pace of market. This would expand the economy of the nation. The
development of micro and small business diminishes the pace of unemployment
among the individuals.. The minimum rate of employment in the small medium
enterprises contributes almost about 14.6 million among which half has a place with
the privately owned businesses.. In particular, at the hour of beginning of private
business, there requires worker contributing both skilled and unskilled staffs. Be
that as it may, the small and micro business is less unpredictable as contrasted and
medium business. Henceforth, the administrations think that its simpler to deal with
the private venture and along these lines increment the pace of creation of the
organization. The almost turnover of little medium enterprises lies of about £1.7
trillion and this contributes among the privately owned businesses of about 46%.
The high creation would surely raise the benefit of the firm, hence expanding the
economy. In addition, the development of small and micro business expands the
development of business and this prompts increment the economy of the nation.
The small and micro business industry can build up the economy with the
assistance of sending out the items in different nations. there are almost 1.2 million
individuals attempting to build up the business and almost 3.9 million individuals
are non-utilising at the hour of performing business. To expand the development of
small and micro business, the administration needs to remember certain
components and this further follows as-
a) The small and micro business needs to improve the quality of items and
services..
b) The private company industry needs to keep the current customer as
well as new customers while performing business.
c) Moreover, the business needs to decrease the expense of the items and
requirements to satisfy the interest of the clients.
d) The private company needs to sharpen the procedures and process of
business.
This incorporates all the process that helps the small and micro business industry to
build up the high factors of economy.

P4 Explain the importance of small businesses and business start-ups to
the growth of the social economy.
Solution:
The small scale business has been given as the backbone to the improvement of
economy. Additionally, independent company has contributed a significant spot by
giving work among the individuals. The private company gives different effects in
the zones of economy that remembers for public, provincial and nearby level by
contributing the better help of the items. This could be seen at the hour of sending
out of the things in different locales of the nations. Besides, the little organization
continually contributes the higher pace of development and new imagination among
the networks. The little and medium endeavours give significant assets and help to
do the specific cycle of the business to work as needs be among huge industry.
This is the fundamental significant purposes of conveying business in the limited
scale industry.
There is a colossal open doors for the new company. Additionally, there would be
sufficient occasion to acquire both expertise and incompetent work that are
appropriate to complete the business. The new company would build up the
economy of the nation. Additionally, the new company gives new items dispatching
that diminishes the interest of client. The new company lessens the pace of
joblessness among the individuals. The new beginning of business would build the
benefit at the hour of sending out of items in different nations and along these lines
higher the development of economy in different levels. There is a high need to build
up the new company for expanding the economy.
P5 Determine the characteristic traits and skills of successful
entrepreneurs that differentiate them from other business managers.
Solution:

There are different characteristics of the successful entrepreneurs at the time for
performing business as compared with the managers of the company. This
trademark gives the principle aptitudes, characteristics and inspiration that drive
the entrepreneurs to turn out to be more effective for the future angles.
Entrepreneurs centre around the specific regions that encourages them to turn out
to be more effective and further helps them to convey the business in the drawn out
viewpoints.
These are as followed as-
a)Proper planning:-
The appropriate planning is the major zone that should be engaged by the
entrepreneurs at the time of performing business. Also, the planning incorporates
the capital, time and so on that helps in overseeing of business appropriately. The
legitimate planning assists with handling of troublesome circumstance that ascent
at the time of performing business.
b) Managing of Capital:-
This requires dealing with the benefit at the time of ascending of enterprising
endeavours. There is a high need to deal with the capital, as this is a restricted
assets and should be spent carefully by the business visionaries. The fruitful
business person's attempts to deal with the cash and makes legitimate intending to
use it for present and future use. To do the business in a progressive mode, there is
a high need to deal with the cash to expand the advancement of business.
c) Ability to face challenge:-
Entrepreneurs need a high capacity to handle all the impending circumstance of
danger that ascents at the time of performing business. Also, the entrepreneurs
need to assess the danger for long haul running of business in the present and
future angles. To lessen the danger, entrepreneurs need to make legitimate
planning and execute different plans to handle the circumstances of danger that
ascents while performing business.
d)Motivation and enthusiasm:-
To turn out to be more effective of entrepreneurs, there is a high need to follow the
energy and requirements to give inspiration among the worker at the ideal
opportunity for performing business. The inspiration and enthusiasm would help in
deciding the accomplishment in enterprising endeavours. The appropriate set
enthusiasm and persuasive soul assists with getting more fruitful among the
business visionaries.
e)Hard working:-
The persevering, self-conviction causes the business visionaries to turn out to be
more effective at the hour of performing business. The entrepreneurs need to give
high devotion and might focus on the working and this helps them with getting
more effective and successful.

P6 Assess how aspects of the entrepreneurial personality reflect
entrepreneurial motivation and mindset.
Solution:
The entrepreneurial character profoundly reflects the innovative outlook and
inspiration at the hour of performing business. There is a high prerequisite to
reflect the innovative inspiration and attitude. The entrepreneurs need to
reflect the positive inspiration and outlook while performing business in the
association. Additionally, the uplifting mentality made by the entrepreneurs
assist with finishing the business appropriately and consequently assists with
making the progress at the time of performing business. The great
entrepreneurs consider the positive working upon employees. To complete
the business viably there is a high need to keep motivating the staff to
improve execution. The character of entrepreneurs assumes a positive part
at that makes a superior mentality among the representative to accomplish
better execution. Also, there is a high need to keep up the positive conduct
of the entrepreneurs at the time of working in the organisation. The
entrepreneurs needs to motivate the employees at the time of working as
the staff individuals are the ones who play an important role in the progress
of the organisation. The positive attitude of entrepreneurs assist with making
an inspirational mentality among the workers at the time of performing
business.