Types of Entrepreneurship and Their Impact on the Economy

ENTREPRENEURSHIP AND
SMALL BUSINESS
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
Part 1............................................................................................................................................2
Types of entrepreneurship...........................................................................................................2
Primary investigation...................................................................................................................5
CONCLUSION................................................................................................................................6
Part 2............................................................................................................................................7
INTRODUCTION...........................................................................................................................7
The scope of entrepreneurship covering......................................................................................7
Situational factors, similarities and differences...........................................................................7
Shared entrepreneurial traits and characteristics.........................................................................8
Background and experiences of entrepreneurship.......................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
The report is about Capital Joinery that is a furniture retailing company in UK. The company is
small business start-up and is growing successfully. The report discusses about the types of the
entrepreneurial ventures and how are the related to the typology of the entrepreneurship. The
similarities as well as the differences between the entrepreneurial ventures are discussed. The
impact of the small business on the economy is discussed using the relevant data and the
statistics. The importance of the start-up and small business in the growth of the economy is
discussed. The effect of the personality of the entrepreneur on the business is discussed.
Part 1
Types of entrepreneurship
Social entrepreneurship
The social conscious business is focused on solution of the social problems existing in society.
The access to food, money and education can be solved by this entrepreneurship. The motive of
this entrepreneurship is to make world a better place and these organisations are also described
as non-profit organisations. Economic impact of such entrepreneurships is that they help
government in achieving welfare of the public which it tries to provide to people who are
underprivileged. In this way, they help the government reduce its workload and save money that
can be used for other development projects. There are organisations that contribute to the
government welfare fund for social causes, allowing the government budget to be spent
elsewhere (Dilli, Elert and Herrmann, 2018).
Sustainable nature is given priority in the environment in which they work, with businesses
concentrating on operations as well as energy conservation. Management sets a goal for the
number of CSR tasks that must be completed in a certain amount of time.
For example, Ethical and sustainable fashion brand Brightly been created has promoted ethical
fashion with home made domestic goods priority thus encouraging domestic production and
offering an alternative to Amazon.
Innovation entrepreneurship
This form of entrepreneurship is focused on innovative technologies and innovations that are
turned into businesses (Galindo-Martín, Méndez-Picazo and Castaño-Martínez, 2019). The
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businesses want to change how people live and find innovative ways to make goods and services
that stand out, achieving any new creativity that other companies haven't been able to do in the
past. This type of innovation creates a product positioning that can attract consumers' interest and
assist businesses in carving out a niche in the industry. The world in which innovation
entrepreneurs work is fast-paced and ever-changing, necessitating constant vigilance.
In the last two decades, innovation and research growth have developed into a major part of
industry, with funding allocated from a separate budget.
Innovative entrepreneurship is beneficial to a country's economy because it can increase sales in
both the domestic and global markets if the research appeals to visitors or other international
companies interested in collaborating after seeing the research. This will attract foreign
investment and align the international market with the host business, resulting in an increase in
the gross national product (Galindo-Martín, Méndez-Picazo and Castaño-Martínez, 2019).
For instance, the Tesla was a breakthrough in the automotive industry that changed people's
perceptions. Previously, it was believed that cars could run on fuel only, but with the
introduction of the Tesla, this perception shifted, and the car became running on electric charged
batteries.
Big business entrepreneurship
As the company becomes bigger, it begins to move slowly. To prevent this, large corporations
often use the practise of purchasing a small business and then delegating the role of innovation to
the newly acquired firm. The world in which businesses operate is competitive, and if a company
begins to lose money, it falls behind its peers in the race. As a result, it must figure out how to
stop entering the process with a new purchase, thus delaying the product life cycle (Dilli, Elert
and Herrmann, 2018).
The larger organisation will take advantage of the product life cycle and use experience to take
on new projects.
The impact on the economy is that large enterprises account for a large portion of GDP because
they cater to foreign clients and align the country's economy with the global economy. They are
engaged in the export of their products and the generation of resources. Big companies also
employ a large number of young people in the region, preventing brain drain and maintaining
talent for the economy.
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