Types of Entrepreneurial Ventures and Their Impact on the Economy

This report examines the different types of entrepreneurial ventures, including small businesses, scalable start-ups, large companies, and social entrepreneurship. It explores their impact on the economy, such as job creation and improving the living standard. The report also highlights the importance of small businesses and start-ups in the growth of the social economy.

UNIT- 9

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Examination of various types of entrepreneurial ventures and explanation on, how they
relate to the typology of entrepreneurship..............................................................................1
P2 Exploring the similarities and dissimilarities between entrepreneurial ventures..............2
TASK 2............................................................................................................................................5
P3 Interpreting and assessing the relevant data and statistics to illustrate how micro and small
businesses impact on the economy.........................................................................................5
P4 Explain the importance of small businesses and business start ups to the growth of social
economy.................................................................................................................................6
TASK 3............................................................................................................................................7
TASK 4............................................................................................................................................7
CONCLUSION................................................................................................................................8
References:.......................................................................................................................................9

INTRODUCTION
Entrepreneurship refers to the capability and availability of developing, organising and
running a business through any of its unpredictability for the purpose of making profit. The most
important and related example of entrepreneurship is starting a new business. In the language of
economics, entrepreneurship is related to the land, natural resources, capital and labour which
plays important role in the generation of profit. The person who perform all these tasks known as
entrepreneur. There are 4 types of entrepreneurship which include Small business
entrepreneurship, Scalable Start up entrepreneurship, Large Company Entrepreneurship and
Social Entrepreneurship. Small business management is the process of lining up and correlating
all the features of a small business. It can be managing the employees, roadmap, performing
various tasks, suppliers, business finance etc. below mentioned report is showing various types
of entrepreneurial ventures and their relation with typology of entrepreneurship, similarities and
dissimilarities between entrepreneurial ventures, impact of Micro and small business on the
economy of UK, importance of small businesses on the growth of social economy. Along with
this, personality of entrepreneurial has been done with the traits and skills of a successful
entrepreneur.
TASK 1
P1 Examination of various types of entrepreneurial ventures and explanation on, how they relate
to the typology of entrepreneurship.
Types of entrepreneurial ventures
For the purpose of earning profit for improving life standard and surviving in a better
way, entrepreneurs do economic activity, which is known as entrepreneurship (Bylund 2021). It
is divided in various types on the basis of size, service, purpose, scope etc. below mentioned are
the important types of entrepreneurship: Small Business- In UK almost 99% of people are doing small business entrepreneurship.
People who are doing this business wants to earn a normal profit for the purpose of
supporting their family and improving their lifestyle. They are happy by earning small
profit as they are not looking for large amount of profit. Small boutiques, plumber, local
grocery stores are example of this entrepreneurship.
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 Scalable Start up Entrepreneurship- These type of entrepreneurs develop a thinking of
change the world (Calcagno and et. al., 2020). For this purpose, they generate fund from
venture capital and hire special staff. Facebook, Instagram and Uber are various example
of this entrepreneurship. Large Company- These type of entrepreneurship are established by advance professional
for the purpose of doing various innovations. Sometimes, small business got convert in
the large companies but it depend on their growth and development. Companies which
comes under Large company are Disney, Google, Microsoft etc.
 Social Entrepreneurship- Entrepreneurs comes under this category focus on solving the
social problems by providing products and services. These entrepreneurship are not made
with the purpose of earning profit and wealth. These organisations develop various ideas
which result in the development of society.
Typologies of entrepreneurship
For the purpose of making business activities more effective, various types of typologies
are involved in the entrepreneurship. Some of them are given below:
Growth of firms- Many companies are formed with the purpose of earning huge amount
of profit. For the same, it is necessary for them to do innovation continuously. Innovation don't
result only in the increase in productivity and profitability of organisation but also it satisfy the
need and demand of customers. These typologies are followed only in small and large
organisations.
Lifestyle Enterprise- These enterprises focus on improving the lifestyle of people of a
specified area. They provide various job opportunities to the local people living nearby the
organisation. Lifestyle Enterprise include social ventures (Davis and et. al., 2021).
Both typologies as well as entrepreneurial ventures gives their best efforts to improve the
living standard and lifestyle of the local people. Hence, it can be said that they are interconnected
with each other. Along with this, both gives their best possible contribution so that the growth
and development of society and economy take place.
P2 Exploring the similarities and dissimilarities between entrepreneurial ventures
All entrepreneurial ventures are based on various basis which include size, operations,
scope etc. These ventures are different from each other as well as they also have some
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similarties. Below mentioned tables are showing various similarities and differences between the
entrepreneurial ventures:
Differences of entrepreneurial ventures
Basis Small Businesses Large Company Social
Entrepreneurship
Purpose These type of
entrepreneurship are
done only with the
purpose of earning
profit so that they can
live comfortably and
satisfy the need of
their family.
Large company only
focus on earning huge
profit. They earn their
profit by doing
something innovative.
They work for
satisfying the need and
requirement of
customers at
marketplace (Dickel
2021)
These type of
entrepreneurship
mainly focus on the
growth and
development of local
people and improving
their living standard
by providing
employment and
goods and services.
Scale Small Business
entrepreneurship
works on a small level
with the investment of
small amount. It
operate on small scale
with the purpose of
earning medium profit.
These type of
entrepreneurship
works on huge level
with high investment.
It is necessary for
them to have skilled
and professional staff
for performing the
functions.
They are doing their
operations on local
level and satisfying the
need of them.
Characteristics Small business need
limited capital and
resources. Along with
this, it as less
This business involve
a lots of government
interference and a lot
of resources are
Government provide
the funds and money
so that they can
complete their non
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government
interference.
required which include
money, raw material,
employees and many
more.
profit operations of
their business. As they
are doing social
welfare activity,
government
interference is also
low (Dzisi 2017).
Similarities of Entrepreneurial Ventures
Basis Small Businesses Large Businesses Social Enterprise
Society Upliftment These businesses do
their operations on
local and small level,
so they need staff
nearby their society.
This lead to the
generation of
employment so that
they can live a good
life by earnings
(Greene and et. al.,
2018).
These types of
entrepreneurship
provide employment at
large level as they
require a lots of staff
members to do the
work in an effective
way. Also they are
doing various
innovations to satisfy
the needs and
requirements of
society which is
directly related to the
growth and
development of
society.
They provide goods &
services and various
employment
opportunity to the
local people keeping
in mind the
development of living
standard of people of
society.
Meeting the needs These businesses meet
the need of local
customers available in
These type of
entrepreneurship
works for the
Social enterprise fulfil
the requirements of
local people by
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the market. satisfaction of needs of
people on a huge level.
providing goods and
services.
TASK 2
P3 Interpreting and assessing the relevant data and statistics to illustrate how micro and small
businesses impact on the economy
It is well known that the development of an economy is possible only because of business
organisations (Grippa 2019). They are giving a huge contribution in the economy of UK which
lead to the development of infrastructures, schools and many more. In simple words, it can be
said that they implies a good effect on the economy of United Kingdom. Following are the types
of business:
Small Businesses- It refers to those business organisations in which less than 50
employees are working for achieving the goals and targets of organisation. Also they are
restricted to have revenue less than £5 million. These type of firms are generating less
employment and revenue as compared to others, because of this it implies effect on economy on
a low scale.
Medium- That organisation can be said as medium in which 50-250 employees are
working and their annual revenue should be in between £5 million to £22 million. It also plays
an important role in the growth and development of economy of country as it is providing
employment on large scale. Along with this, they are making huge amount of revenue and profit
by satisfying the needs and requirements of people on huge level.
Large- These type of organisations works on a huge level having more than 250
employees in the organisation and their revenue is always more than £22 million. These type of
business organisations plays an important role in the development of economy as it provide
employment to large number of people because they are working on global level.
Impact of SME on economy
Local Impact- It is well known that small and micro businesses are providing goods and
services to the local people (Gurău 2020). Because of this, they are related to the development of
local economy. These type of businesses are started only after analysing the demand of goods
and services in a significant area. By analysing the demand, organisations take decision
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regarding their purchases and their operations. Their impact on economy can be seen as they are
providing employment to local people so that they can improve their living standard and
lifestyle.
Regional Impact- Small and Micro businesses are providing employment to regional
people so that they can remove unemployment from the region. On the other hand, it is also
beneficial for expanding business as they are providing employment to people, they will get
highly talented and skilled people (Nhemachena 2018). So this regional income also works as the
development purpose for the organisation as well.
National Impact- Small and Micro businesses starts their operations by using less
amount of money. Mainly they focus on innovations in order to increase profit and productivity.
Continuously increasing profit leads to the increase in government revenue. It is found that, in
UK economy, more than 15.7 million people are working in SME which can be seen as a
positive impact on the development of national economy.
P4 Explain the importance of small businesses and business start ups to the growth of social
economy
It can be said that the small businesses and start ups works as backbone of a country as it provide
employment opportunities to the people and earns a huge level of revenue which leads to the
development of economy of a country. It improves the living standard of people as it works as an
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income source of many families (Niazi 2017). There are various business organisations in UK
which are implying positive impact on their social economy. Now a day, in UK, small businesses
and start ups are increasing at a rapid speed. Mainly it focuses on the innovative ideas so that
they can fulfil the demand of customer at marketplace. On the other hand, UK government is
making various schemes and policy in order to providing maximum efforts in the development of
country. There are various reasons, why these firms are important for the growth and
development of economy (Pathak 2018). Some of them are given below:
Job creation- In the creation of job opportunities or employment, small businesses and
start-ups plays an important role as workforce helps in improving productivity and
profitability of organisation. Mainly it focuses on the local people while providing
employment which result in the improvement of their existing skills and capabilities.
Regular improvement of skills leads to the generation of new ideas which helps them in the
creation of their own new ventures. Hence, it can be said that it plays an important role in
removing unemployment of country and improve economic conditions.
Improving living standard- Small businesses and start ups provide good quality products
and services to the local people of society according to their purchasing power which leads
to the improvement of living standard of people. Hence, these businesses help the people of
society in improving their standard of living.
Economic Growth- Various numbers of opportunities are to be created by small businesses
and start up in the terms of growth and creativity. These types of businesses also result in the
innovation which is beneficial for society. These firms are mainly famous for their quality
production which is another factor of economic growth of society.
Above mentioned points states that how the Micro, small businesses and start ups plays an
important role in the growth of the social economy. These businesses provide various
innovative ideas which help the people in improving their skills. Along with this, they
provide employment opportunity as well.
TASK 3
Covered in PPT
TASK 4
Covered in PPT
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CONCLUSION
From the above report, it is concluded that entrepreneurs are the people who create new
ideas of doing business in order to satisfy the demand of people. There are different type of
ventures which include small, large and social entrepreneurship. Furthermore, it is also analysed
that small businesses and start ups plays an important role in the economy of country as it
provide various job opportunities to the people which leads to the improvement of living
standard of people. Along with this, it generates the revenue for the government of country as
well which leads to the growth and development of whole country and social economy as well.
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References:
Books and Journals
Bylund, P.L. and Packard, M.D., 2021. Subjective value in entrepreneurship. Small Business
Economics, pp.1-18.
Calcagno and et. al., 2020. Financial literacy and entrepreneurship. New Frontiers in
Entrepreneurial Finance Research, pp.271-297.
Davis and et. al., 2021. Strategic antecedents of innovation: Variance between small and large
firms. Journal of Small Business Management, 59(1), pp.47-72.
Dickel, P. and Eckardt, G., 2021. Who wants to be a social entrepreneur? The role of gender and
sustainability orientation. Journal of Small Business Management, 59(1), pp.196-218.
Dzisi, S. and Odoom, F., 2017. Entrepreneurship education and training in higher educational
institutions in Ghana. Journal of International Entrepreneurship, 15(4), pp.436-452.
Greene and et. al., 2018. The future of entrepreneurship education: educating for economic and
social impact. In A Research Agenda for Entrepreneurship Education. Edward Elgar
Publishing.
Grippa, F. and Gloor, P., 2019. Andrea Fronzetti Colladon. Int. J. Entrepreneurship and Small
Business, 36(4), p.355.
Gurău, C. and Dana, L.P., 2020. Financing paths, firms’ governance and corporate
entrepreneurship: Accessing and applying operant and operand resources in
biotechnology firms. Technological Forecasting and Social Change, 153, p.119935.
Nhemachena, C. and Murimbika, M., 2018. Motivations of sustainable entrepreneurship and
their impact of enterprise performance in Gauteng Province, South Africa. Business
Strategy & Development, 1(2), pp.115-127.
Niazi, A., 2017. The Role of Entrepreneurship, Innovation and Marketing Capability in Small
and Medium-Sized Enterprises (SMEs). International Journal of Economic
Perspectives, 11(3).
Pathak, S. and Muralidharan, E., 2018. Economic inequality and social
entrepreneurship. Business & Society, 57(6), pp.1150-1190.
Pett and et. al., 2019. Family business learning and performance. International Journal of
Entrepreneurship and Small Business, 38(1-2), pp.165-176.
Ratinho, T. and Mitsopoulos, M., 2021. New forms of entrepreneurship support in a growing
entrepreneurial ecosystem: the case of business incubation in Greece. In Handbook of
Research on Business and Technology Incubation and Acceleration. Edward Elgar
Publishing.
Schjoedt and et. al., 2020. Social Media in an Entrepreneurship Context. In Understanding
Social Media and Entrepreneurship (pp. 3-13). Springer, Cham.
Tripathy, M., 2019. Overcoming the major challenges in new entrepreneurship: An orientation
through soft skills. SMART Journal of Business Management Studies, 15(2), pp.38-46.
Welter, F., 2019. Entrepreneurship and context. Edward Elgar Publishing.
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