Importance of Small Businesses and Entrepreneurship

The assignment highlights the importance of small businesses, micro industries, and social entrepreneurship in the UK economy. It discusses how these entrepreneurial ventures provide employment opportunities, enhance earnings, and support social activities such as corporate social responsibility. The use of online channels and flexible work environments are also mentioned as key factors in attracting and retaining talent.

WHAT MAKES AN
ENTREPRENEUR

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1. Various type of entrepreneurial ventures and there relation with typology..........................1
P.2 Similarities and differences between various entrepreneurial ventures................................2
P3. Impact of micro and small units on economy.......................................................................3
P4. Importance of Small Businesses and Business Start-up in contribution to growth of social
economy......................................................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Entrepreneur is a person who establish new business with creative and innovative ideas
plus also has the potential to take the financial risks. The term entrepreneurship is related to
designing, launching or establishing a new business. Report discusses different type of
entrepreneurial ventures and there relation to typology. It also highlights similarities and
differences between various ventures. Assignment lays emphasis on how micro and small
business impact economy.
MAIN BODY
P1. Various type of entrepreneurial ventures and there relation with typology
Types of entrepreneurial ventures
Micro units: Micro business industries are that where the initial investment by the
entrepreneur is 25 lac and below it. They consist of employees between 5-7. Also, this industry
make less profit in comparison to large size business. The units establish under micro industries
are grocery stores, salons, plumber, carpenter and many more. Main aim of establishing these
units is to earn a daily living (Different type of entrepreneurship, 2013).
Small units: These are those industries where the initial investments made by the owner
is between 25 lac to 5 Crore (Kuratko, 2016). The entrepreneur hires 15- 49 employees. They
usually make profit ore revenue which is higher in amount in comparison to micro industries.
There main aim of establishment is to earn a high amount of profit so that they can expand there
market share.
Medium units: These are those firms which are established by entrepreneurs with the
initial investment of 5 Crores to 10 Crores. They are engaged in hiring workers between 50-244.
Also, they are involved in performing various social responsibility such as CSR activities. They
have higher risk of loss in comparison to micro and small units.
Typology of Entrepreneurship
Small businesses' entrepreneurship: This a type of firm where the owner has full
control over the day to day activities performed by employees. Main objective of establishing
this industry is to earn a nominal amount of profit that can assist entrepreneur and there
employees in feeding one's family and friends.
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Scalable start-up entrepreneurship: It is total different from small business units. They
are been established with more innovative, creative and scalable idea. They are been set up in
order to provide a good or service that is completely different from there competitors. Funding is
been done by venture capitalists or seed funding.
Large company entrepreneurship: These companies are established in order to provide
wide range of creative and innovative products. They make use of new techniques and design
products according to the needs and demands of consumers.
Social entrepreneurship: These organisations are set up with the main aim of doing
social services and helping individuals. Making profit is not there sole aim. There goal is to make
world a better place.
P.2 Similarities and differences between various entrepreneurial ventures
Similarities
Small, scalable and large companies has the same vision that is to make a healthy profit
in exchange of good and service. These venture has a many similarities. All these industries has a
vision to grow up in their business, and make expand in their assets. They have a common goal
to get business opportunities and increase the revenue of company (Kuratko, 2016). Small,
scalable and large organisations have same objective to sell their product and service in market,
to achieve these targets every entrepreneurial ventures has set their market strategy and analyse
the market trend for better perform then the competitor. By the time every ventures is trying to
develop for stable in market, many ventures has tried to go with social media to promote the
product. Every venture is looking for how to make satisfied their customer and user, each
venture want to make a long term relationship with their customers.
Differences
Basis Small Business Scalable Start-Up Large Company Social
Entrepreneurship
Financial
Goals
The main objective
of this is to earn a
nominal profit from
which they can
The industry is
established to earn
a huge amount of
profit by producing
Large companies
want to earn a high
profit by selling
new products in
These business
focuses on creating
social value in the
market by creating
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feed family
members of
employees, and
earn reasonable
amount of revenue
The investment is
done by friends and
familu
innovative products
or ideas. The
investment is done
by venture
capitalists
existing market or
by selling new
products in new
market range.
those products
which can fulfil
social needs of
people. Creating
wealth is not a
main aim of these
type of enterprises
Risk Factor These industries are
also covered with
risk factors like
theft, employee
dispute, poor
customer service,
threat of substitutes
and competitors etc
(Barringer, 2015).
The are surrounded
by threats like
design risk,
development risk,
funding risk,
economic risk,
legislative and
policy risk,
maintenance risk,
management risk,
operation risk etc.
The risk faced by
large businesses
can be strategic
risk, compliance
risk, operational
risk. The
companies'
reputation can be
ruined if they can't
overcome these
risks.
The social
entrepreneur also
faces risks which
includes hindering
of human rights,
hazardous working
conditions, dispute
related to land,
polluting
environment,
following
corruptive policies,
breaking laws etc.
P3. Impact of micro and small units on economy
Small, micro and social industries are currently most appreciated by the individuals living
in United kingdom. They are facing a boom period and also because of these enterprises the
economical condition of region has been enhanced.
Revenue- Small, micro and social industries generates a high amount of revenue and
turnover for the country. They have developed a revenue of about 1.6 trillion in Britain itself.
While generating revenue, they are also giving high amount of employment opportunities to
individuals. This creates positive image in the mind of local people and also by this company
tend to attract and heir more qualified and educated staff (Meyer, Neck and Meeks, 2017).
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Social activities- Small, micro and social organisations also lays impact by performing
activities such as corporate social responsibility. This has laid a huge impact on the economic
condition of country. Also, it makes a good image in the mind of consumer for country.
Employment- These industries are also engaged in providing employment to many
individuals over the region. It has been analysed that Micro firms hires 24.3 million people living
in UK where 60% employment is done in private sector. They are the major source of income for
the company and also provides huge opportunities to local people.
Growth- Small, micro and social enterprises are the most rising one. They are facing
boom period in region. These industries are at peak because of the various reasons such as
innovative product or service, creativity and there potential to bear risks. Also, these firms are
involved in providing higher employment opportunities to people. They are involved in giving
and imparting training and education to there workers. This assists in increasing productivity and
efficiency of employees (Barringer, 2015). It has been analysed that 37% of small and micro
firms are engaged in bringing innovation in country. Also, they re giving tough competition
around the globe. IT has been observed that between the year 2008-2013 there has been 47% rise
in the establishment of these industries. By the growth of the micro, small and social industries
led to the recovery of UK's economy. Also, it implements a new and high spirit in the mind of
individual with which in future they can also become an entrepreneur. They are creating an
environment in the market that are seeking attention of investors. This will support in
establishing of new and innovative company in the market of United Kingdom.
P4. Importance of Small Businesses and Business Start-up in contribution to growth of social
economy.
The economy of United Kingdom has faced various crisis and economic challenges.
establishment of small. Micro and social ventures has helped the region in overcoming these
issues. They are engaged in giving employment opportunities to people which has helped in
improving economic condition of individuals. These industries has also helped them in
enhancing there earning. Also, the firms such as social units has supported in implementing
various social activities such as Corporate social responsibility. Government also support this
step taken by these industries (Dees, 2017). Small and micro units are engaged in designing
products or services according to the needs, preference and demands of people living in region.
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These firms also make use of new techniques such as selling there product on social
media platforms. By this they can connect through large number of consumers and this also
helped them in expanding there market share. Micro and small business units are making use of
online channels such as Facebook, Instagram, twitter and many more. The use of these platforms
has made easier for companies to take feedback related to product from consumers and make
goods better. Also queries have been easily solved through online channels.
Small, micro and social enterprise are also attracting and retaining talents by providng
them with flexible and adaptive environment. This also supports in growth of economic ncome
of company. Also, training and education enhances the efficiency of individual which makes
them more productive.
CONCLUSION
From the above report, it has been summarised that there are various type of
entrepreneurial ventures such as small, micro, scalable and social. They have laid a great impact
on the economy of European region. They are engaged in providing employment opportunities to
wide range of individuals.
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REFERENCES
Books and Journals
Dees, J.G., 2017. 1 The Meaning of Social Entrepreneurship. In Case Studies in Social
Entrepreneurship and Sustainability(pp. 34-42). Routledge.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Kuratko, D.F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Barringer, B.R., 2015. Entrepreneurship: Successfully launching new ventures. Pearson
Education India.
Meyer, G.D., Neck, H.M. and Meeks, M.D., 2017. The entrepreneurship‐strategic management
interface. Strategic entrepreneurship: Creating a new mindset.pp.17-44.
Online
Different type of entrepreneurship. 2013 [Online]. Available through:
<file:///home/user1/Downloads/sustainability-10-00452%20(2).pdf>.
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