Importance of Small Businesses and Start-ups in the Social Economy

Entrepreneurship and
Small Business
Management
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Different types of entrepreneurial ventures and their relation with typologies......................3
P2 Similarities and differences between entrepreneurial ventures..............................................4
P3 Relevant data and statistics which shows how small and micro businesses impact on the
economy.......................................................................................................................................6
P4 Importance of small businesses and start-ups to the growth of the social economy..............8
P5 Skills of a successful entrepreneur which differentiate them from business manager...........9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Entrepreneurship termed out as process that aids to create new enterprise. They also has
capacity and willingness to develop, organise and manage risk to business venture to make
profit. Therefore, an individual who undertakes the risk to start up business venture is called out
as entrepreneur.
The present report will be based on topic of Entrepreneurship and small business
management. Furthermore, study will cover the activities as to cover differ kind of
entrepreneurial venture and typologies. Thus, Relevant data and statistics has been used to reflect
on small and micro businesses impact on the economy. Lastly, background and experience will
be defined that hinders or foster entrepreneurship.
MAIN BODY
P1 Different types of entrepreneurial ventures and their relation with typologies
Entrepreneurship is the process of developing a new business. There are various kinds of
ventures that can be developed by entrepreneur. These are described as below:
 Small business: These are such business venture that covers large market share. These
firms are generating limited profit and get funds from family or friends. The objective of
these small ventures are to generate certain amount of profit that may help in recovering
the operational cost so that firm can sustain in market for longer duration. In addition, it
can be said that it may be sole traders, partnership and corporation, privately owned
whose main aim is to make profit and take competitive advantages. For example:
plumbers, electricians, grocery stores are the great example of small ventures (The Four
Types of Entrepreneurship, 2020). These firms can get micro loan facilities from private
financial institutes. Owner has to pay tax as personal tax because there is no need to pay
company tax in such small business ventures. Legal structure of these firms are very
simple as owner takes all decisions by own.
 Large venture: These are the big firms that have huge capital and have capability to bear
huge risk. These firms always implement innovative ideas so that it can gain attention of
large audience and can sustain in the competitive market for longer duration. These large
organization offers wide range of products and services and charge accordingly. These
firms ensure to fulfil needs of consumers so that they can make consumers loyal towards
the brand. In addition, it can be said that all those companies whose main aim is to make
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profit and grow their business and also reach global customers are known as large
organization. They invest highly in order to run business at a large scale. For example:
Google is the great example of large ventures.
 Social enterprise: These are the kinds of ventures that focuses on creating such kinds of
products that may help in meeting needs of society members and resolving their
problems. Their main agenda is to improve wealth of consumers by serving them best.
For example: Safepoint trust, Red cross are working as social ventures those which are
continuously working to improve wellbeing of people.
 Scalable venture: This is the kind of venture which have faith on the aspect that new
vision can change entire world. Venture capitalist invest funds in these kinds of startups
and company hires talented employees those who can help in meeting that vision greatly.
Facebook, Instagram are the example of scalable ventures. These scalable firms have
ability to raise profit and generate more employment.
So, it can be said that those businesses who mainly focus on business to business
activities are known as scalable. They act for growing larger. Amazon is the great
example of scalable firm that is having capability to provide job opportunities to many
people and generate more revenues.
Typologies
Life style typology is implemented by small ventures that works to generate reasonable
amount of profit. Founder of business show their skills to set up business successfully. Gazelles
are another kind of typology which is implemented by large organization. These are such kinds
of firm that works to generate huge profit and have capability to dominate the market by
becoming market leader. Goal of such kinds of typology is to expand business and make the firm
successful in such competitive market (The Four Types of Entrepreneurship, 2020). Companies
that are generating revenue between 2-10 million can implement Gzaelles typologies. Hence
large organization adopt this typology and raise 20% revenue every year. These high growth
firms can gain opportunities in market.
P2 Similarities and differences between entrepreneurial ventures
There are some similarities as well as differences between entrepreneurial ventures which
are discussed below.
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