Small Business Impact on Social Economy

This assignment examines the importance of small businesses and startups in shaping the social economy. It delves into research on their impact, referencing various books, journals, and online sources. The provided text outlines key factors influencing business success for SMEs, including ethical considerations, owner-manager characteristics, and family influence. It also highlights the role of entrepreneurship training and human capital in entrepreneurial success.

Understanding
entrepreneurship

Table of Contents
INTRODUCTION..............................................................................................................1
TASK 1.............................................................................................................................1
P1 Different kinds of entrepreneurial ventures and their typologies.............................1
P2 Similarities and Difference between entrepreneurial ventures................................2
TASK 2.............................................................................................................................4
P3 Micro and small businesses impact on the economy..............................................4
TASK 3.............................................................................................................................6
P5 Characteristics, traits and skills of successful entrepreneurs.................................6
TASK 4.............................................................................................................................8
P7 Factors that foster or hinder entrepreneurship........................................................8
CONCLUSION................................................................................................................. 1
REFERENCES.................................................................................................................2
........................................................................................................................................ 3

INTRODUCTION
Entrepreneurship is a dynamic procedure of developing the wealth through
persons which takes the more risk in the business in context to equity, time, investment
and many other. With the helps of introducing many new goods or make changes in old
services as well as goods at market place, forms develops the more wealth ( Blackburn,
Hart and Wainwright, 2013). It is necessary for firm to manage the business operations
in an effective or better manner. This report is based on the Federation of Small
Businesses which is United Kingdom based and it represents the medium and small
size business firm. Under this given report mentions about the various types of
entrepreneurial ventures and also typologies of entrepreneurship. There are different
kinds of entrepreneurial ventures a d differences and similarities among all ventures.
TASK 1
P1 Different kinds of entrepreneurial ventures and their typologies
Entrepreneurship refers to an activity and also operations which are performed
through an entrepreneur under which that person innovates, put its efforts and also
finances for converting its ideas or thoughts in to products or services (Bridge and
O'Neill, 2010). It is procedure of developing something new through put more energy
and also time. Entrepreneurial activities are conducting at the time of performing the
entrepreneurship process. Generally, it is conducted in order to generating some value
by creation as well as intervention of new goods and also increase of economic
activities.
Different kinds of entrepreneurial venture:
Small Business Entrepreneurship- At this present time, there are large number of
start- ups as well as entrepreneurs in United Kingdom which are working as small scale
business. Under this country. There are almost 6 million small firms which are
successfully giving employment to the unemployed people. This business covers the
electricians, consultants,travelling agencies, grocery stores etc.
Large company Entrepreneurship- These kinds of entrepreneurial ventures
general have finite life circle. They start their business through innovation, providing
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new goods or services and many more. At the time of make any change in existing
services, they firstly know about the taste and also preferences of consumers.
Scalable Start-up entrepreneurship- These kind of entrepreneurial ventures know
about their vision in an effective or better manner and they also know how to change
the world through their business activities (Chrisman and et. al., 2012). Those people
which are crazy regarding this business are known for the investment and also called as
Venture capitalists.
Social entrepreneurship- These kinds of persons are very innovative whose main
focus is on manufacturing of effective and attractive services or goods which society
needs. It can solve all issues as well as problems. Their main motive is to make the
world better and earn more profit as well as enhance the market share.
Entrepreneurship Typologies
Lifestyle venture- They provide the financial profit to business man. Under this
mostly entrepreneurs work and it is a one or main reasons of their unsuccessfulness.
But they are able to manage their time or work in context to give a competition.
Managed growth ventures- Generally, they provide the stable development to a
business firm and also those people which invest their money and will have ability to
manage everything. They can easily manage the growth ration with the launched
product and also limited staff.
Survival ventures- These kinds of ventures earn money for their livelihood,these
kinds of businesses are not registered and employers use the Cash as well as Barter
system instead of the bank contracts.
P2 Similarities and Difference between entrepreneurial ventures
There are some similarities and also differences of entrepreneurial venture kinds
are mention below :
SIMILARITIES Social Entrepreneur Lifestyle Venture
 These people start for
provide advantage to
local society.
 Motive to earn profit
level and do beneficial
work for society.
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 Work for welfare of
society and people.
 Business makes from
the small scale.
DIFFERENCES Serial Entrepreneur Lifestyle Venture
 Main objective to
maximise profit.
 Increase profit to run
business for making
their lifestyle better.
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SIMILARITIES Male Entrepreneurs Female Entrepreneurs
 These types of
entrepreneur focus on
their business.
 Passion towards
innovate something
new.
 These entrepreneurs
are conscious towards
their work.
 They are also creative
and also innovative to
attaining business
objectives.
DIFFERENCES Male Entrepreneurs Female Entrepreneurs
 Total share capital of
49%.
 These people like to
deal with financial
risk.
 From total capital,
share of female
entrepreneur is 51%.
 they are very
conservative at the
time of dealing
financial risk.
TASK 2
P3 Micro and small businesses impact on the economy
Micro enterprises are kind of small business which are employed through the
nine or less than nine person in company. These kinds of business are started with the
little amount of the capital and also supply the services and products in local areas.
They service better in order yo make improvement in the quality and living standard of
the local areas people through providing them employment (Fassin, Van Rossem and
Buelens, 2011). On the other hand in small business there are few staff members are
working and the revenue of these kinds of businesses are less than the large firms.
Performance of an economy of United Kingdom is central to existing assessment
of impacts of Brexit on United Kingdom. The small and micro size business firms
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provide employment to people of local society. When these small business organisation
expand their business at international level they they are more able to generate better
employment opportunities to people. In this, more than 99% businesses firm are small
or medium size in which less than 250 staff members are working. For local economy,
micro and small firms are backbone in United kingdom in terms of driving development,
developing better job opportunities and open new markets. Contribute about 47% of
revenue to an economy of United Kingdom, small and medium size business have key
role ion enhancing productivity but also expand business.
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Illustration 1: Small Business vs. Large Business:
Who Is Better at Job Creation?, 2018

Under this, annual report is developed on yearly basis, provides synopsis of size,
importance, structure of small business firms to European economy and also overview
of past and also forecasted performance of small business organisations from 2008 to
2018 year.
The small or micro business firms generate more employment and also provide better
job opportunities. They work on welfare of people.
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Illustration 2: On Small Business, 2018

Affect of small and micro business on economy
Local impact- Small and micro both business impact on local business, they
have strong affect on business activities which are conducted in local markets. Micro
firms impact local market people through not employing the more persons by giving
them more amount of money. It demotivate people, but there is a positive imp[act is
that they can work on improving their quality life.
Regional impact- Under this, those entrepreneurs which are working on regional
basis have some benefits of producing according to their preferences (Gorgievski,
Ascalon and Stephan, 2011). Micro businesses can prepare these goods which can
affect whole region and also fix cost of goods. Small business can also develop its
impact through earning revenue with the helps of providing effective services which will
beneficial to society.
International and national impact- There is a small impact of small and micro
business on nation due to more amount of set up of sole proprietorship business in
United Kingdom. It will be helpful in developing more jobs for unemployed people. On
the other hand micro enterprises are helpful in adding some value in economy through
providing the jobs and also increase income of nations.
P4 Contribution of Small business and Business start-ups on social economy
Those people which are conducting micro or small business in UK know the
presently flourishing. From enhancing the success of start- up businesses In Unites
Kingdom, there is no any kind of sign of slow economy, from enhancing success of start
up business, they also need the small business for the healthy economy. Small and
stray- ups both are the important part of an economy.
Significance of small business on economy
Employment- In order to developing an economy, there is a needs to employed
of more people. If people will get employment then it will be beneficial for an economy
because they are the necessary assets of an organisation which are termed as
necessary resources (Wheelen and Hunger, 2011). In addition to this, small firm give
them employment so that economy of country will be developing.
Industry- In United Kingdom, largest industries are manufacturing, repair of the
motor vehicle and also retail whose main motive is to enhancing economy. There are
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almost 45% of small business which are belong to these three sectors. So it is
supposes that it can impact Britain very much and also will be impacting an economy of
United kingdom.
Growth- In growth of business firm, small and also micro both business
enterprises in an economy, innovation is a most important part of development. If
people will be employed and also trained they they can innovate new things and well as
they performance ability will be improves. It is an effective way of developing the United
Kingdom economy.
Turnover- It is one of the most important specification which is checked when an
economic condition of United Kingdom is noticed ( Unger and et. al., 2011). In order to
enhancing the turnover, small business firms are very helpful through enhancing the
more business and generate the employment to unemployed people.
TASK 3
P5 Characteristics, traits and skills of successful entrepreneurs
More money and idea will not aid entrepreneur people in making business
successful because there are more good ideas in market which have the potentially to
became the best but from minimization of proper implementation it can fail. Mark
Zuckerberg and Bill gates both are entrepreneurial personality. Many people follows
them and these are very successful entrepreneur. Mark Zuckerberg is a founder of
Facebook which helps in connecting people and Bill gates is a founder of Microsoft
company. In order to make the business successful, it is necessary that persons should
have ability and also goods skills. There are some Characteristics which should be in
an entrepreneur:
Self motivated- It is a necessary feature which entrepreneur should have. This
person should be very motivated so that it can do its work in an effective or better
manner. It should be dedicated towards the work.
Know about what to offer- It is necessary that an entrepreneur should know
about the offering wheat need to be offer to consumer at the market place (Schaper and
et. al., 2014). It is essential that company should know about the tastes and preferences
before producing the new goods.
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Money management and knowledge- IT is essential that entrepreneur should
know that how to manage the money for business activities and have knowledge about
conducting business or also deal with staff members in an effective or better manner.
Risk taking- Without the risk, business is not possible to do. So, it is important
that an entrepreneur should know how to deal with the risk and also think some new to
get over the risk and earn more profit.
Traits and Skills of entrepreneurs
Determination- Became a business is not an easy task. In order to run a
business in a proper manner, person should be determinant to run a business. There
are many different conditions when business can fail but the determinant people can
stand up and also start over the business again.
Vision- If vision will not be clear then company can not do its activities in a
p[roper manner (Karlan and Valdivia, 2011). For making the business successful, it is
necessary for an entrepreneur to make a vision. Vision means where an organisation
wants to be reached means the final destination. So, it is necessary that entrepreneur
should have skills to create an effective or better vision.
Passion- Successful entrepreneur is not make through the money but need
more hard work and also passion to working in an organisation. If in case entrepreneur
will be passionate towards work then in this case it will take risk in making the business
process better.
P6 Aspects of Entrepreneurial Personality
There are many traits which an entrepreneur should be possess to make them
successful individual. Some trait are confident, optimism, reliable, better communication
skills, risk taker etc. These all factors can define the entrepreneurial personality and
these can be the personal weaknesses, strengths, economic situation and many more.
Business is began with a better idea and then execute them. There is a need to
entrepreneur to those people which can helps in implementing work. So, in addition to
this an entrepreneurial personality can impact a mindset and also motivational level of
persons which are working with them (Goss, 2015). Under this OCEAN theory is
included:
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Extraversion- It states that entrepreneur is very energetic towards work and also
to be social. These people have ability to became a good leader. This kind of traits
motivate the other staff members which are working with them should follow
entrepreneur and also search effective way to find the success.
Agreeableness- It says than an entrepreneur should have good nature,
behaviour, trust worthy personality and also be cooperative with its followers which
believe on that person and also its ideas with full concern.
Conscientiousness- It states that an entrepreneur should be of dutiful and also
efficiency to achieving the success (Zott, Amit and Massa, 2011). These two qualities
will helpful in making the person as well as business successful.
Emotional stability- Under this, it is necessary that an entrepreneur should be
of calm, high tolerance nature, focussed and also the positive mind to the business
activities and also operations.
Openness to experience- Under this, it is essential that an entrepreneur should
independent and open minded.
TASK 4
P7 Factors that foster or hinder entrepreneurship
Activity of entrepreneurship get affected by various number of elements.
Experience and background of an individuals play a significant role in all this.
For Example: When an individuals had a positive experience about his past business
activities and decisions then this encourage him and boost up the process of
entrepreneurship.
On the other hand, negative experience, decrease the morale of an individual
and at the same time create various obstacles in process of entrepreneurship. But it is
very essential for an individual if he had a experience then he should learn something
from it and try to not to repeat the same mistake again (Zott, Amit and Massa, 2011).
Both Bill gates and mark Zuckerberg faced some difficulties in staring process of their
entrepreneurship but still they did hard work and achieved success. Overall positive
experience of an individual enhance his confidence and encourage to carry out various
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activities of entrepreneurship. One the opposite of this negative experience decrease
the morale of individual and hinder the process of entrepreneurship.
There is huge importance of personal experiences in development of leadership skills
among a person. Richard Branson is successful entrepreneur. He is an investor,
philanthropist and business magnate. He founded Virgin Group and control or manage
more than 400 organisations. He express his wish or desire to be an entrepreneur at
young age. At age of 16, he start his first business venture. In year 1972, he started
record stores chain, Virgin Records and then later it is known as Virgin Records. He has
good leadership skills and later gain some experience. In year 1984, Richard Branson
formed a Virgin Atlantic Airways, in 1999, it launched the Virgin Mobile and in year 2000
it launched in Virgin Blue.
From the past analysis of this entrepreneur identified that having good
experiences in education which allows him to think innovative different from others.
Also, belongs from business family through which automatically he gets motivation and
leadership skills which enables him to encourage others is to work with their optimum
calibre to get desired results within given framework of time.
CONCLUSION
It has been concluded from the above given report that entrepreneurship is an
effective activity in opening of new venture. Under this given report studied about the
traits, characteristics and also the skills of different entrepreneurs which are helpful in
conducting the business in an effective manner. Under this report involves variations
and also similarities of different kinds of entrepreneurial typologies. Importance of small
as well as start-ups business on development of social economy studied under this
report.
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REFERENCES
Books & Journals
Blackburn, R. A., Hart, M. and Wainwright, T., 2013. Small business performance:
business, strategy and owner-manager characteristics. Journal of small
business and enterprise development. 20(1). pp.8-27.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small
business. Palgrave Macmillan.
Chittithaworn, C. and et. al., 2011. Factors affecting business success of small &
medium enterprises (SMEs) in Thailand. Asian Social Science. 7(5). p.180.
Chrisman, J. J. and et. al., 2012. Family involvement, family influence, and family‐
centered non‐economic goals in small firms. Entrepreneurship theory and
practice. 36(2). pp.267-293.
Fassin, Y., Van Rossem, A. and Buelens, M., 2011. Small-business owner-managers’
perceptions of business ethics and CSR-related concepts. Journal of Business
ethics. 98(3). pp.425-453.
Gorgievski, M. J., Ascalon, M. E. and Stephan, U., 2011. Small business owners'
success criteria, a values approach to personal differences. Journal of Small
Business Management. 49(2), pp.207-232.
Goss, D., 2015. Small Business and Society (Routledge Revivals). Routledge.
Karlan, D. and Valdivia, M., 2011. Teaching entrepreneurship: Impact of business
training on microfinance clients and institutions. Review of Economics and
statistics. 93(2). pp.510-527.
Schaper, M. T. and et. al., 2014.Entrepreneurship and small business.
Unger, J. M. and et. al., 2011. Human capital and entrepreneurial success: A meta-
analytical review. Journal of business venturing. 26(3). pp.341-358.
Wheelen, T. L. and Hunger, J. D., 2011. Concepts in strategic management and
business policy. Pearson Education India.
Zott, C., Amit, R. and Massa, L., 2011. The business model: recent developments and
future research. Journal of management. 37(4). pp.1019-1042.
Online
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Entrepreneur, 2018. [Online]. Available through:
<https://www.investopedia.com/terms/e/entrepreneur.asp>./
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