Importance of Small and Start-up Business in the Growth of Social Economy

This document discusses the importance of small and start-up businesses in the growth of the social economy. It analyzes various types of entrepreneurial ventures and their typologies. It also explores the similarities and dissimilarities between entrepreneurial ventures. Additionally, it examines the skills, traits, and characteristics of successful entrepreneurs. The document provides insights into the impact of relevant data and statistics on micro and small businesses. It concludes with an explanation of the significance of small and start-up businesses in the social economy.

Unit 9 Entrepreneurship
And Small Business
Management Inbox

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Analysing various types of entrepreneurial ventures which are related with typology of
entrepreneurs................................................................................................................................1
P2. Describe the similarities and dissimilarities of the entrepreneurial ventures.......................2
TASK 2............................................................................................................................................4
P3. Interpreting and assessing relevant data and statistics in order to impact micro and small
business........................................................................................................................................4
P4. Explaining the importance of small and start-up business in the growth of social economy
.....................................................................................................................................................6
TASK 3............................................................................................................................................7
P5. Analysing the characteristic or traits and skills of successful entrepreneurs to differentiate
from other business managers.....................................................................................................7
P6. Aspecting the entrepreneurial personality which reflects motivation and mind-set of
entrepreneurs................................................................................................................................8
TASK 4............................................................................................................................................9
P7. Analysing the background and experience of entrepreneurs to hinder or foster upon
entrepreneurship..........................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The Entrepreneurship is referred as process to run a business with the motive to achieve
organisation goal and objectives that leads to accomplish success. The entrepreneur has
capability to undergo business on its desired target which leads to sustain in competitive market
for its growth and stability (Adamowicz and Machla, 2016). This project is based upon the
entrepreneurship and small business in analysing the ventures of entrepreneurs which are related
with typology. It further determines similarities and dissimilarities of enterprising ventures. This
project assess the relevant data and statistics in order to impact micro and small business
followed by the importance of small and start-up business in growth of social economy.
Additionally, it analyse the characteristics, skills and entrepreneurial personality which
differentiate from others and motivates them to perform with that mind-set. Apartly, with that it
analyse the hinder or foster of entrepreneurial background and experience which leads to achieve
success.
TASK 1
P1. Analysing various types of entrepreneurial ventures which are related with typology of
entrepreneurs
Entrepreneurial Ventures:- This is described as the process to develop innovative idea
which creates competitive advantage in order to produce its value either economically or socially
(Cherkesova and et.al., 2018). This is the capability to compete with rivalries that leads to sustain
in competitive market. There are four types of entrepreneurial ventures which are described as
under:-
 Small Business:- This is the entity which is organised by privately owned entrepreneurs.
They form the business through partnerships, sole proprietorships, etc., which focus on
achieving their targets through maximisation of profit and wealth. Example:- Airdri,
Marshfield Bakery, etc.
 Scalable start-up business:- It is the ability to compete with competitors through their
innovative idea which leads to attain high growth and profitable company. These
business creates ideas for long term goal accomplishment by entering large market with
rapidly growing. Example:- Cocoon, Bizzby, etc.
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 Large company entrepreneurship:- This organisation have solid set of their life cycles
which is utilised in their sustainability through innovating ideas (Cudecka-Purina and
Atstaja, 2017). This mainly focus on their consumer satisfaction as they determine the
taste and preference of their target market. Example:- Peter Jones, Simon Cowell, etc.
 Social Entrepreneurship:- This is considered as formulation of groups and start-up
companies which determine solutions related with social, cultural and environmental
issues. This organisation vary according to its number of individuals in a group, aims and
their personal beliefs. Example:- Hubbub Enterprise, Resonance, etc.
Typologies of Entrepreneurial ventures:- The typology is considered as the procedure
to discriminate the entrepreneurial ventures according to their survival, life-style, male, female
and managed growth. Some of these are explained below:-
 Male:- This is considered in saying that men performs their work quickly as compared to
women in an organisation (Fayolle and et.al., 2019). The males presumes that in
traditional business only men used to perform certain activities which don't allow them to
adopt changes easily.
 Female:- It is referred with the opinion that women are capable of managing everything
by performing multi-tasking at home and within the business which leads to achieve
success. They can also challenge men through their effectiveness that can challenge men
to perform with eagerness and motivation.
 Managed Growth:- This is the ability for both male and female to work collectively
which results in accomplishment of organisation goals and objectives effectively and
efficiently to compete from their rivalries.
P2. Describe the similarities and dissimilarities of the entrepreneurial ventures
Entrepreneurial ventures:- This is explained as the process to analyse the requirements
of target market which are to be fulfilled by innovative product at which consumers are ready to
pay high prices for their qualitative products. It is the opportunity for business to generate
economic or produce social value (Ivanova and Ivanova, 2017). These entrepreneurial ventures
are small, scalable start-up business, large company and social entrepreneurship. These are
described on the basis of their similarities and dissimilarities which are as follows:-
Dissimilarities between entrepreneurial ventures:-
Basis of Small Scalable Large Company Social
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dissimilarities
Business Start-up
Business
Entrepreneur-
ship
Entrepreneur-
ship
Definition It is privately
owned
entrepreneurship
that involves sole
proprietorship,
partnership, etc.,
which is not
highly governed
by government.
It have the
capability to
develop
innovative idea
for strategic
decision-making
(Jeroscenkova
and et.al., 2016).
It consists of solid
sets of life cycles
which leads to
utilise scarce
resources
effectively to
remain stable in
competitive
market.
It is the
formulation of
groups and start-
up companies
which determines
solutions related
with social,
cultural and
environmental
issues by
differentiating
group according
to its size, aims
and personal
beliefs.
Objectives The objective of
small business is
maximisation of
profitable ratios,
employee
attraction and
retention for
sustainable
growth.
The main
objective of
scalable start-up
business is to
attain competitive
advantage in
competing with
rivalries through
their overtime of
employees.
The objective of
large company
business is to
provide consumer
satisfaction by
determining their
taste and
preference as they
are king of an
organisation.
They targets to
achieve
The main
objective of social
enterprise is to
encourage large
number of women
employees in
tech-related fields
which increase
effectiveness
through quality
management
(Karanashev and
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profitability,
growth,
effectiveness and
efficiency for
their survival.
et.al., 2015) .
Examples Airdri Cocoon Peter Jones Resonance
Similarities between entrepreneurial ventures:- These similarities of small business,
scalable or start-up entity, large company enterprise and social entrepreneurship are described
below which are as follows:-
 Utilisation of scarce resources:- Every entrepreneur aims to utilise scarce resources
available in competitive market effectively leads to compete with competitors for their
stability (Kretova, Tsaregorodtseva and Khohlova, 2017).
 Increase consumer satisfaction:- The business focus on providing consumer satisfaction
to their target market as they are king of the business which leads to achieve success
through their taste and preferences.
 Maximisation of revenue and profits:- The motive of business is to maximise revenue
through supplying qualitative products which attracts them to consume more of their
products. This results in revenue maximisation with profitability ratios and increase in
consumer loyalty.
TASK 2
P3. Interpreting and assessing relevant data and statistics in order to impact micro and small
business
Micro business is considered as the component of small business. These are the business
whose actual valuation of sales and assets is less than $ 250,000 per year. It is smaller in size
with fewer than five workers including the business owner. Small business is referred as the
business which consists of social objectives to maximise its profits through the benefits of
society and environment by being reducing pollution and taking corrective measures for health
safety (Litvinova, 2018). These businesses are beneficial for the growth of economy as it
provides employment to the unemployment and by donating some amount of their profits for
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social welfare and as charity. This attracts consumers to purchase more of their products which
increase consumer loyalty and support (Role of Start-ups and Small Businesses, 2019).
Economic fluctuation varies from foreign exchange rate, laws, policies, wages,
governmental activities, interest rates, etc., which influence the change in economy. These create
positive and negative impact on the business which affects their stability in competitive market.
From the above prescribed graph it is interpreted that the small business provides large
number of employment as compared to the medium and large enterprise. This represents that
enhance in creating job opportunities for the labours which leads to improve their standard of
living. This also increase awareness for the society in economic development with their
innovative ideas to compete with their rivalries. These increase in labours and employment leads
to increase effectiveness and efficiency in achievement of organisation goals and objectives. The
small business also plays major role by enlarging its business mostly with comparison to medium
and large business. This leads to achieve success and remain stable with its competitive
advantage. This increase consumer loyalty and support for achieving high level of consumer
satisfaction.
The small business consists of high size and turnover as compared to medium and large
business which further result in maximum profitable ratios. It maximise revenue by supplying
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qualitative products to their customers at which they are ready to pay high prices and premium
for their high level of satisfaction. The small business managers mainly focus on attempting new
ideas to strategise their goals and objectives by achieving targets, mission and vision. It further
develops an opportunity for growth and stability of business in perfect competition market to
compete with rivalries through their competitive strategies.
P4. Explaining the importance of small and start-up business in the growth of social economy
Small Business:- It is considered as the business which don't involve government rules
and regulations. This is privately owned by sole proprietors and partners to perform their task
collectively which leads to achieve success and to sustain in competitive market. The main
objective is to maximise profitable ratios by motivating employees to perform effectively for
sustainable growth (Mokretsova and et.al., 2020).
Importance of small business:- This organisation plays major role for achievement of
organisation goal in the growth of social economy. The importance of small business are
described as under:-
 Provide employment:- The organisation provide employment to the unemployment
labours who are in search of job to meet their hierarchy needs with the achievement of
organisational goals.
 Future Growth:- This is the ability which generate rapid growth for organisation by
accomplishing target with co-operation to achieve success in competitive market.
 Opportunities for women:- This creates opportunities for women to be employed in the
business which are capable to do everything as compared to men and in much better
manner.
Start-up Business:- It is referred as the capability to compete with competitors through
competitive advantages of organisation. It focus on innovative ideas for their long run and rapid
growth to achieve success.
Importance of Start-up business:- This is considered as the innovative idea to run
business with efficiently accomplishment of success. The importance of start-up business are
explained below which are as follows:-
 Increasing GDP:- It leads to increase gross domestic product of economy by entering in
the market which reduces the import of products from international market and to supply
it in least cost which increase effectiveness of product.
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 Better standard of living:- The organisation leads to improve the employees standard of
living by achieving organisation goals and objectives which results in maximisation of
market share that leads increase of income.
 Innovation and competition:- The process of creating innovative ideas which leads to
compete from its rivalries for their sustainability in competitive market. The new ideas
developed for decision-making creates an positive impact in efficiency of target
accomplishment through directing and controlling the activities.
TASK 3
P5. Analysing the characteristic or traits and skills of successful entrepreneurs to differentiate
from other business managers
Entrepreneurs are described as business owners who design, launch and run an new entity
with innovative idea to sustain in competitive market. They have competitive advantage of
internal strength and external opportunities for their business to manage controllable and
uncontrollable risk. These have the ability to capture high risk with the motive to attain high
return. The characteristics or traits and skills of entrepreneurs are explained with reference of
Simon Arora and Bobby Arora which are as follows:-
The characteristics for both of these entrepreneurs are as follows:-
 Active partners:- The owners of business should be active while performing their task as
they are aware of the pros and cons of their inactive behaviour in organisation. These
both Simon and Bobby Arora are active partners which leads to compete from other
business to remain sustainable in competitive market (Nikolskaya and et.al, 2017) .
 Future-oriented:- This is referred as the entrepreneurs must develop their new ideas
with the motive of future-oriented in goal achievement. These both Simon and Bobby
Arora leads to accomplish their desired target with maximisation of revenue, profits and
market share.
 Passionate:- It is considered as the business owners to perform their activities with
passion which leads to develop interest and ability to perform their task with
specialisation which reduce the chances of error. These both Simon and Bobby Arora are
passionate for their target as to finish their decided target on the particular date and time.
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 Motivated:- This is the ability to perform task with motivation and eagerness which
leads to develop strategy for employees by motivating their employees to do their activity
with extra zeal that leads to increase efficiency. These both Simon and Bobby Arora
appraise their employees through bonus, incentives and rewards.
The skills of both these entrepreneurs are described below:-
 Time management:- This is considered as the capability of business persons to finish
their desired goals on time which leads to increase efficiency. These both Simon and
Bobby Arora directs and monitor the activities and determine the errors which are to be
solved by corrective measures that results in time management.
 Strategic thinking:- This is referred as the process of business owners to think new ideas
which cannot be easily captured by other entrepreneurs. These both Simon and Bobby
Arora used to develop innovative ideas for strategic decision-making which creates
competitive advantage for business to compete with its rivalries.
 Leadership qualities:- This is considered as the ability of entrepreneurs to be
empathetic, humble, tolerable, patience, motivator, etc., which create positive role in
achieving organisation goal effectively and efficiently. These both Simon and Bobby
Arora have leadership qualities which leads to demonstrate the work with division of
labour to increase specialisation.
P6. Aspecting the entrepreneurial personality which reflects motivation and mind-set of
entrepreneurs
Entrepreneurial personality involves the various personality or behaviours of
entrepreneurs which depends upon their characteristics, abilities, attitudes and values which
creates positive impact on their accomplishment of organisational goals and objectives. These
entrepreneurial personality are described on the basis of Ocean personality traits for Simon and
Bobby Arora which are as follows:-
 Openness:- It is described as the process to think openly and to gain new experiences
which results in high openness as the entrepreneurs are able to share their views and
thoughts to each other (Wijesinha, 2015). The Simon Arora is more capable of expressing
its views in large group by distributing various task to their managers and leaders that are
to be directed and controlled while being performed by employees. This results in
achievement of organisation goals effectively through time management.
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 Conscientiousness:- This is referred as the process to increase carefulness while
performing the task and to consider the pros and cons of actions in an organisation. This
trait considers the organised, methodology, and through clarification of information. The
entrepreneurs mainly focus to be diligent and to provide immediate rectification of errors
through corrective measures which reduce time wastage.
 Extraversion:- It is the trait which analyse the energetic and talkative entrepreneurs who
are capable of sharing their views and listen to other while communicating with each
other. The Bobby Arora is extrovert as it creates opportunities for entrepreneur to
determine the competitive strategies adopted by their competitors which can create threat.
These leads to adopt precautionary steps of corrective measures to sustain in competitive
market.
 Agreeableness:- This is considered as the process to be calm, friendly and co-operative
in nature. This leads to build relationships with one another through co-ordination,
affectionate and sympathetic in goal achievement. This creates positive role in
interacting, communicating which develops loyalty and trust within each other.
 Neuroticism:- It is also termed as emotional trait of entrepreneur. This leads to
experience negative emotions such as moody and tense, instability, anxiety, insecurity
and fearful which impacts the entrepreneurial behaviour to think positively. This results
delay in goal achievement and to unstable in competitive market.
TASK 4
P7. Analysing the background and experience of entrepreneurs to hinder or foster upon
entrepreneurship
Background consists of family, friends and partners of entrepreneurs that plays positive
and negative role in their achievement of targets. They play their roles for growth of business
through economic, social and technological factors which results in enhancement of organisation
through its stability in competitive market.
Experiences are described as the basis to recognise mistakes which took place before are
to be removed and the consequences of those errors are to be focused that delay in goal
accomplishment. The experience is the ability to restrict mistakes which creates efficiency in
sustaining growth and maximisation of revenue and profits.
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Simon Arora:-
Background:- The background of Simon Arora is classified on the basis of family,
friends, etc. The Simon Arora was born on November, 1969 being the CEO of B & M. It's
qualification is from University of Cambridge. The background plays the negative role in goal
achievement by saying that family already runs many businesses, so what is the use of opening
one more organisation. The background of Simon Arora does not influence to start business as
there is already various business owners in the family which mainly create high competition for
business. The entrepreneur consists of openness nature as he is capable to share views and
information related with activities of managers, leaders and employees through meetings and
able to convince his views effectively for accomplishing goal. This creates high competition in
the market and creates demotivation which impacts the stress and depression on entrepreneur.
This creates instability among the competitive market which lacks in maximisation of revenue
and profits.
Experiences:- The experiences leads to control the risks by managing and controlling the
actions effectively which results in accomplishment of success and reduce time wastage. The
Simon Arora learnt a lot by experiencing various things which leads to manage the work
efficiency through total quality management to satisfy its consumers and to increase their loyalty
and support. The entrepreneur is highly capable to deal with their economic circumstances as it
have more experiences in life as compared to Bobby Arora which positively impact enterprise
for developing growth and sustainability of business.
Bobby Arora:-
Background:- The background of Bobby Arora consists of family, friends, co-
operatives, etc. The Bobby Arora was born on January, 1972 being the trading director of retail
chain in B & M. The background creates positive role for Bobby Arora for achievement of
organisation role through providing investment funds, motivating them to perform their activities
passionately. This leads to achieve success in competitive market. The background of Bobby
Arora influence to start business with innovative and strategic decision making that leads to
achieve success efficiently. The entrepreneur consists of extraversion nature as he is capable to
determine the competitive strategies adopted by their competitors through developing relations
with them to analyse various factors that can create threat for company.
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Experiences:-The experiences are the ability to sustain in competing market through
effective utilisation of scarce resources by reducing the unnecessary errors. The Bobby Arora
doesn’t focus on its experiences effectively as it is motivated by their family background which
lacks in determining the errors and taking corrective measures. The entrepreneur is not capable
to deal with their economic circumstances as it have does not have any experience which impact
enterprise adversely and delay in growth and sustainability.
CONCLUSION
From the above discussion it have been concluded that entrepreneurship plays the major
role in accomplishment of success and to compete from its rivalries. The entrepreneurial ventures
consists competitive advantage in developing their innovative ideas for strategic development
which are related with typologies of male, female and managed growth. This project describes
the similarities and dissimilarities between the entrepreneurial ventures which leads to analyse
their strategies of goal accomplishment. Interpreting and assessing relevant data and statistics in
order to impact micro and small business of the economy. Additionally, it analyse the importance
of small and start-up business in the growth of social economy. This leads to determine the
characteristics or traits, entrepreneurial personality and skills of successful entrepreneurs which
motivates other business person to develop their mind-set. Apartly, it examine the background
and experience of entrepreneurs to hinder or foster upon entrepreneurship.
11

REFERENCES
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Cherkesova, E. Y. and et.al., 2018. Sustainable import substitution in Russia: institutional
conditions and efficiency imperatives.
Cudecka-Purina, N. and Atstaja, D., 2017, May. ASSESSMENT OF BUSINESS
PERFORMANCE IN WASTE LANDFILLS AND SHIFTING TOWARDS
CIRCULAR ECONOMY. In Economic Science for Rural Development Conference
Proceedings. (No. 45).
Fayolle, A. and et.al., 2019. Institutionalization of Entrepreneurship Research. Routledge.
Ivanova, V. and Ivanova, E., 2017. Information means of forming image of Ukraine by tourism
enterprises. In Ştiinţă, educaţie, cultură. (Vol. 1, pp. 12-14).
Jeroscenkova, L. and et.al., 2016. Similarities and differences in the value manifestations and
management of cultural heritage. Management Theory and Studies for Rural Business
and Infrastructure Development. 38(1). pp.18-27.
Karanashev, A. H. and et.al., 2015. Comparative cognitive corporate culture modeling of the
Kabardino-Balkaria Republic's Enterprises Recreational Sphere. Mediterranean Journal
of Social Sciences. 6(3 S4). p.37.
Kretova, N. V., Tsaregorodtseva, E. Y. and Khohlova, G. I., 2017, June. Applying advanced
methods of evaluation of level of innovative development for industrial sector. In
International Conference on Trends of Technologies and Innovations in Economic and
Social Studies 2017. Atlantis Press.
Litvinova, A., 2018. Innovative processes in the company “Innovative Management
Systems”(Russia). In SHS Web of Conferences. (Vol. 55, p. 01015). EDP Sciences.
Mokretsova, O. I. and et.al., 2020, January. Governmental Support and Efficiency Management
of JSC" Russian Railways" Investment Activity. In International Session of Factors of
Regional Extensive Development (FRED-2019). Atlantis Press.
Nikolskaya, E. Y. and et.al, 2017. Boosting the competitiveness of hotel business operators in
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Wijesinha, A., 2015. Digital Dynamism: How IT and social media are enhancing business
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RE
Bo
Online
Role of Startups and Small Businesses. 2019. [Online]. Available through:<https://www.market-
inspector.co.uk/blog/2017/05/facts-about-small-medium-businesses-in-the-uk>
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