Entrepreneurship and Small Business Management

This report discusses different types of entrepreneurial ventures, their relation to typology of entrepreneurship, and the impact of micro and small businesses on the economy. It also explores the importance of small businesses and startups to the growth of the social economy. The report provides insights into the traits, characteristics, and skills of entrepreneurs, as well as the experiences and background that hinder or foster entrepreneurship.

ENTREPRENERUSHIP AND
SMALL BUSINESS
MANAGEMENT
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Table of Contents
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................3
P1 Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship.......................................................................................................3
P2 Explore the similarities and differences between entrepreneurial ventures...........................5
TASK 2............................................................................................................................................6
P3 Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on the economy................................................................................................................6
P4 Explain the importance of small businesses and business start-ups to the growth of the
social economy............................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
Entrepreneurship is defined as the procedures of looking for business opportunities under condition of
risk. Moreover, it is just more than the mere development of business. Although it is an essential facet but
it is not accomplished picture. In simple way, it is the way for establishing an enterprise through
undertaking various risk associated to this like managerial or financial (Thompson, Verduijn and Gartner,
2020). The topics which are going to be discussed in this report are numerous entrepreneurial ventures,
typologies, impact of micro and small upon social economy. In addition to this, the start up and small
scale firm significance and contribution towards country’s economy is mentioned. Apart from this, traits,
characteristics and skills as well as the experiences and background that hinder or foster entrepreneurs are
also explained in this report.
TASK 1
P1 Examine different types of entrepreneurial ventures and explain how they relate to the typology of
entrepreneurship.
Entrepreneurship definition with quotation
Entrepreneurship is considered as the act of developing business while scaling as well as building
it to gain profitability. Moreover, this is whole about transforming the world through huge issues such as
forming an innovative product or representing a new life changing solution.
“Do not worry about being successful but perform towards being effective as well as success will
naturally follow”. – Oprah Winfrey
Serial entrepreneur: It is regarded as an entrepreneur who regularly comes up with new thoughts
as well as initiates new businesses (Burton and et. al., 2019). This type of entrepreneurs has some traits
such as unwavering optimism, effective time management and many more.
Intrapreneur: They are referred as an emergent behavioural intensions as well as attitudes which
are associated to disappearance from customary ways of performing enterprises into existing firm.
Owner manager: It is the one who formed as well as maintains an entrepreneur in fundamental
way for personal goals. Also, they are accountable for overall risk as well as mainly focused towards
sustainability not growth.
Several entrepreneurial ventures
Some types of entrepreneurial venture are discussed below:
Small business entrepreneurship: This is regarded as a ventures that required less capital
investment for performing its enterprises activities. The main intent of this is to provide acceptable
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offerings to audiences as well as obtain income for livelihood (Rovelli and Butticè, 2020). For example:
Orion electrotech limited perform its operation into small business industry and facilitates effectual
services to clients.
Social entrepreneurship: Firms that provide its offering into towards the welfare of society and
its development is considered to be a social entrepreneurship. This has been determined that these
business are basically operates its activities for serving society in an effectual way. For example: Save the
Children, Oxfam and many more are few firms who work for social welfare.
Large entrepreneurship: For starting any business operation at large scale so there is
requirements of more funds. Moreover, this has been determined that, there are requirements of more
funds on particular time for increasing the capabilities of market holdings (El Hanchi and Kerzazi, 2019).
The main aim of it, is to effectively expand its geographical business for gaining more profitability at
large extent. For example: Marks & Spencer, Tesco are some examples who perform its functions at large
scale in order to facilitates huge customers base in appropriate way as well as obtain more economic
development in global and regional market area.
Scalable entrepreneurship: In this, person basically involve in its own business for providing
qualitative offerings to audiences. With it, they intent towards developing towards profitability level
enhancement, this have been stated that respective firm get support from government as to effectually
influence innovation.
Several entrepreneurial typologies
In entrepreneurial ventures there are several kinds of typologies which are included. The main
intent of this is to effectively enhance business profit. So, few typologies are described below:
Growth firms: These basically perform its operations for enhancing its whole profitability ratio.
In it, growth firm’s entrepreneurs take benefits of new ideas for developing effective maximisation into
productivity and profitability (Bertoni, d'Adda and Grilli, 2019). Also, this has been determined that
through undertaking utilisation of new ideas, it significantly intent towards providing satisfaction to
customers for effectually assurance of sustainable development.
Lifestyle firms: Entrepreneurs who perform its operation in respective firm facilitates products or
services to society and person for enhancing their standards of living. The main aim of this kind of
entrepreneurs is to facilitates considerable opportunities of job to people who basically local residential.
How the ventures can be classified or related to the different types of Entrepreneurship with
examples.
Types of ventures Its relations with typologies EXAMPLES
Small entrepreneurship This is related with the growth
firms as both perform aim to
Consultants, travel agents and
many more
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provide effective offerings and
sustain for longer period.
Large entrepreneurship This is related with lifestyle firm
as both directly or indirectly aims
towards development of
individual’s living standards and
its lifestyle as well.
Marks & Spencer, Tesco
Social entrepreneurship This is related with growth firm
as both perform for the
development of society that
automatically enhances economy.
Save the Children, Oxfam
Scalable entrepreneurship It is related also related with
growth firm as in both new ideas
are developed.
Amazon, Face book and others.
P2 Explore the similarities and differences between entrepreneurial ventures
The differences and similarities among entrepreneurial venture are described underneath:
Small Large Social Scalable
Objectives Its objective is to
provide acceptable
offerings to
audiences as well
as obtain income
for livelihood
(Schaper and et.
al., 2020).
Its main objective
is to effectively
expand its
geographical
business for
gaining more
profitability at
large extent.
Its objective is to
provide effective
products and
operates for the
welfare of the
society.
Its objective is to
rendered unique
offerings
constantly and
attain higher
profitability.
Risks In this risk is low
bit level o
competition is
high.
In this risk is
medium as often
manages higher
sales volume
because of its
brand value.
In this, risk is not
so much high as it
get support from
government.
In this, risk is
higher because of
large financial
investment as it
develops
innovative
products
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(Groenewald and
Van Vuuren,
2020).
Examples Consultants, travel
agents and many
more
Marks & Spencer,
Tesco
Save the Children,
Oxfam
Amazon, Face
book and others.
Similarities
 All perform their activities for facilitating effective offering to its customer as well as generate
higher profitability.
 All contributes towards the development of society and country as well.
TASK 2
P3 Interpret and assess relevant data and statistics to illustrate how micro and small businesses impact on
the economy.
This has been determine that UK is known to be the largest economy where huge contribution are
being performed through micro as well as small business. Also, based on the Department of business,
innovation and skills (DBIS), In year 2015 small and micro firm appropriately contribute towards
facilitating employment opportunities to person. In addition to this, it has been also identified that about
15.6 million jobs have been developed through respective industry which not only enhances the standard
of living but also maximises country’s employment rate within global marketplace. Both micro and small
business contributes towards innovation and development and also rendered contribution into local,
regional and international level.
Small: This has been determined that firms who perform its activities at small scale are duly
permitted to have about less than 50 workers at its workplace. Moreover, this type of entities are
considered to be a backbone of economy as it develop numerous employment opportunities and
significantly maximise people’s living standard.
Medium: In medium enterprises, there are about 50 to 250 staff and its annual revenue will be
between £ 5 million - £22 million. The main intent of this, to facilitates effectual satisfaction to clients as
well as satisfy its requirements in appropriate way (Bekele and Worku, 2020).
Large: These perform its activities with above 250 staff as well as their revenue will be around
or over £22 million. This has been indentified that by offering huge opportunities of job to people enable
them to produce higher growth of country.
Impact of SME’s upon economy
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Illustration 1: Role of Start-ups and Small Businesses
(Source: The Role of Start-ups and Small Businesses in Today’s Economy, 2018)
Local impact: It has been determined that micro as well as small level firm have effective impact
upon economy through various ways. Also, it accomplish the client’s requirements in efficient way as to
provide satisfaction at large extend. Along with this, this facilitated job opportunities to local people that
develop the economy in prospects manner (Crittenden, Crittenden and Ajjan, 2019)..
Regional impact: through passing various year, this have been determined that both small and
micro business effective contributes into the performance of regional economic condition. With assistance
of its major contribution problem regarding unemployment have been minimised which further drives
towards national economic development. With it’s the individuals per capital income get maximised
rapidly which enhances chances of country’s stability in various manner.
National impact: This has been determined that government plays vital role into fostering start up
culture with assistance of government. Moreover, with having creative as well as innovative thoughts
both firms enhance stability at global market area (Malca, Peña-Vinces and Acedo, 2019). Along with
this, as per the report, it has been stated that above 15.7 million people are being employed through small
and micro business which maximises their per capita income as well as also foster the economic condition
of UK.
P4 Explain the importance of small businesses and business start-ups to the growth of the social economy.
Within United Kingdom, there is various small businesses that has affects upon economic
development. Due to this, respective country regulations similarly provides effective assistance towards
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small activities as far as accomplishing its financial related fundamentals just like facilitates unwinding
into enlistment procedures. Here are the concentration that depicts the effectiveness of small business into
social economy development.
Economic growth: The small and start up business develops large amount of revenue every year. It
also facilitates effective quality products or services at reasonable prices (Colombelli and Quatraro, 2019)
. They are enough efficient to pay taxes to government as well as develops infrastructure for audiences by
the amount that is received as taxes. As it aids economy in developing strong financial condition. These
produce motivation into any another businessmen for initiating its own enterprises so that it gain more
profitability for itself.
Develops living standard: The start up as well as small business provides top level augmentation
towards developing living standard of people through highlighting their necessities inside its affordable
monetary plan. Proving them a chance to get salary for its own job additionally bolster in advancing its
life way (Leal Filho and et. al., 2019).
Based on the above, it has been determined that commitment of start up and small business towards
country’s economic development are very much extreme through facilitating innovative thoughts towards
persons that outcomes in exploring its way of life.
CONCLUSION
As per the above report, this has been concluded that entrepreneurship plays vital role as it
transforms the world through huge issues such as forming an innovative product or representing a new
life changing solution entrepreneurs brings affirmative outcomes towards people of nation in respect of
enhancing job opportunities as well as social economy through development of individual’s life style.
This makes them capable for paying taxes to government. For instances, this is crucial for people to
become successful businessman through obtaining various skills and traits like team work, hard working
and others. In addition to this, determination of experiences and background also assists in encouraging
people for becoming successful entrepreneurs.
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REFERENCES
Books and Journals
Thompson, N. A., Verduijn, K. and Gartner, W. B., 2020. Entrepreneurship-as-practice: grounding
contemporary theories of practice into entrepreneurship studies.
Burton, M. D. and et. al., 2019. The organizational design of entrepreneurial ventures. Strategic
Entrepreneurship Journal. 13(3). pp.243-255.
Rovelli, P. and Butticè, V., 2020. On the organizational design of entrepreneurial ventures: the
configurations of the entrepreneurial team. Journal of Industrial and Business Economics. pp.1-
27.
El Hanchi, S. and Kerzazi, L., 2019. A multidimensional framework for innovation typology: The case of
Moroccan entrepreneurs. Academy of Entrepreneurship Journal. 25(1). pp.1-11.
Bertoni, F., d'Adda, D. and Grilli, L., 2019. Self‐selection of entrepreneurial firms in thin venture capital
markets: Theory and empirical evidence. Strategic Entrepreneurship Journal. 13(1). pp.47-74.
Schaper, M. and et. al., 2020. Entrepreneurship and small business. John Wiley & Sons.
Groenewald, D. and Van Vuuren, J. J., 2020. A critical analysis of the influence of start-up factors in
small businesses and entrepreneurial ventures in SA. Professional Accountant. 7(1). pp.269-280.
Bekele, E. and Worku, Z., 2020. Factors that affect the long‐term survival of micro, small and medium
enterprises in Ethiopia. South African Journal of Economics. 76(3). pp.548-568.
Crittenden, V. L., Crittenden, W. F. and Ajjan, H., 2019. Empowering women micro-entrepreneurs in
emerging economies: The role of information communications technology. Journal of Business
Research. 98. pp.191-203.
Malca, O., Peña-Vinces, J. and Acedo, F. J., 2019. Export promotion programmes as export performance
catalysts for SMEs: Insights from an emerging economy. Small Business Economics. pp.1-21.
Colombelli, A. and Quatraro, F., 2019. Green start-ups and local knowledge spillovers from clean and
dirty technologies. Small Business Economics. 52(4). pp.773-792.
Leal Filho, W. and et. al., 2019. A review of the socio-economic advantages of textile recycling. Journal
of Cleaner Production. 218. pp.10-20.
Online
The Role of Start-ups and Small Businesses in Today’s Economy. 2018. [Online]. Available
through:<https://www.market-inspector.co.uk/blog/2017/05/facts-about-small-medium-businesses-in-the-
uk>.
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