Entrepreneurial Ventures and their Impact on the Economy

This report discusses the different types of entrepreneurial ventures and their growth and development with relation to typologies of entrepreneurship. It also explores the impact of micro and small businesses on the economy and explains the significance of small business and business start-ups towards the growth of the social economy.

Unit 9 Entrepreneurship and
Small Business Management

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
P1. Different types of entrepreneurial ventures and their growth & development with relation
to typologies of entrepreneurship...........................................................................................3
P2 Similarities and differences among entrepreneurial ventures...........................................5
TASK 2............................................................................................................................................6
P3 Interpret and assess relevant data and statistics to illustrate how micro and small business
impact on the economy...........................................................................................................6
P4 Explain the significance of small business and business start-up towards growth of social
economy.................................................................................................................................9
TASK 3..........................................................................................................................................10
P5 Identify the characteristics, traits & skills of successful entrepreneurs that differentiates
them from other business managers.....................................................................................10
P6 Assess how aspects of entrepreneurial personality reflect entrepreneurial motivation and
mind-set................................................................................................................................12
TASK 4..........................................................................................................................................13
P7 Examine, using relevant examples, how backgrounds and experienced can hinder or foster
entrepreneurships..................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Entrepreneurs are those persons who start-up their own business unit with the aim of gaining
higher profit quickly. They have capabilities to take high risk for sustaining in competitive
environment for longer period. They are basically those individuals who brings innovation and
make full efforts to gain desired objective (Burns and Dewhurst, 2016) The present report is
based on ASDA firm which is established by two entrepreneurs Zuber and Mohsin Issa. They
started their company with the single petroleum pump and now they have more than 5200 petrol
stations for this they both made so many efforts. The present report carried out discussion about
different types of entrepreneur’s ventures with typologies. Along with this the differences &
similarities in entrepreneurs ventures. Further discussion about small and micro entrepreneurs
along with large business on local and national economy. As well as traits, attitudes and
characteristics of entrepreneurs is covered. At the end, an analysis of different environment
which hinder & foster entrepreneurships.
MAIN BODY
TASK 1
P1. Different types of entrepreneurial ventures and their growth & development with relation to
typologies of entrepreneurship.
Entrepreneurial ventures accentuate the provision of their services to business entities
that are below the average level ((Dana, 2018). As well as this helps business units to carry out
some innovation and unique within market. This advances an opportunity to business individuals
and assist them to achieve their goal within stipulated time frame. Furthermore, it also helps in
increasing the economic values and social recognitions too. In which there are various forms of
entrepreneurial ventures as follows:
Classification:
There are many categories of entrepreneurships on the basis of size, purpose, sector and
growth which are mentioned below:
According to size:
Small scale business: Such type of entrepreneurial ventures are generally operated by the
single entity independently. The sole proprietor possess all expenses and losses along with
managing responsibility appropriately. These venture consist two-three number of employees.

Small stores, carpenters etc. are the examples of such type of business unit (Ferreira and et.al.,
2017).
Medium: Medium size enterprises are those which invest on machinery is more than 4
billion but less than 10 billion. Captify, john goods shipping etc. are the example of medium size
corporation.
Large: These are those unit which carries out their operation at larger scale and earn
higher profit. ASDA, Tesco, Marks and spencer and so on are the examples of large scale
business unit (Julien, 2018). These entrepreneurial ventures consist huge number of employees in
order to perform business unit in effective manner as well as offers large number of variety of
products to their consumers.
On the basis of purpose
Social enterprise: These organisation operates their business for the welfare of society.
For this they apply their commercial strategy to maximize improvements in finance, social and
environment.
Profit venture: These are blended with the social goal along with business goal for
remaining in competitive marketplace.
According to sector:
Corporate sector: Corporate sector are the part of economy or a subset of domestic
economy (Karabulut, 2016). It doesn’t not include those activities which are related with the
general government, private households and not profit company.
According to growth rate:
Survival firms: Such types of ventures operates their business function for getting
stability in market for longer period. It has been found that revenue of survival firms are limited
and that is not sufficient to full fill their basic needs (Ratten, 2016). Due to this they faces so
many problems and difficulties which are interlinked with the earning of profit margeins.as well
as due to scarcity of resources and profit they are not able to accomplish their goal on time.
Grocery stores, bakery shops are the examples of survival firm.
Lifestyle firms: These firms operates their business function which are related with high
profile. Lifestyle firm generally conducted their operations with the aim of full filling the
passion, of consumers as well as for improving their living standards. Example of these venture
are skin instructors, golf & tennis pro, tour guides etc.

Relationships of growth, scope, and development with typologies of entrepreneurships
Growth and the development of company is increasing continuously as the time is passes.
And it is related and depended on typology. There are mainly two types of typology in
entrepreneurship i.e. male and female. Main reasons of development of these topologies are these
two entrepreneurs. For example, it has been found that the male entrepreneur puts more efforts
for the growth of company and that gives positive outcomes in terms of increment in financial
performance of company (Storey, 2016). As well as male entrepreneur possess more capability
towards taking risk decision for completing goal in small time frame. Further, female
entrepreneur also contributes towards development of enterprises as they puts their full zeal for
earning profit. They are more concerns about performing task for betterment of carrier as well as
have multitasking behaviour and that is the main reason of growth ad success. From above
discussed and explanation, it has been assessed that there is confirmatory relation among
entrepreneurial typologies that leads
P2 Similarities and differences among entrepreneurial ventures.
Differences among entrepreneurial ventures:
Small business Large business
 Such type of entrepreneurship venture
holds 2 to 3 number of employee and
they are their owned by sole proprietor,
according to the needs.
 Motive is that to satisfy the basic needs
and demands of family. Needs like
foods, shelter cloths etc.
 The number of employee that it include
is more than 250 employees in order to
perform all functions in effective
manner. These are managed by
professional’s partners.
 Aim of large scale enterprises is to
increase their business unit
internationally for gaining maximum
profits and that ultimately enhances
brand image and market shares of
company (Theodoraki and Messeghem,
2017).
Similarities among entrepreneurial ventures.

 Both small and large business firms puts their hard works and efforts for earning high
profit. As well as their aim is to raise the living standards of society.
 Another similarity is that they both determines the needs and demands of consumers and
then carry out their function accordingly in order to improve sales and profit margin of
company (Hills and Morris, 2018).
 Moreover, profit gain by both small and large ventures is that these both show some their
contribution towards growth and development of societies that directly affects economy
of nation.
Similarity and difference in survival and lifestyle firms:
Major difference in survival and lifestyle firm is that survival operates their business for
earning reasonable profit whereas lifestyle firms run their business to gain distinctive products
and services to consumers (Lipset, 2018). The motive of both the firm is to serves their services
to defined target market needs and earning profitability potentially.
Similarity and difference social and for-profit ventures:
The foremost difference in both firm is that social firm believes in welfare of society and
the aim of profit firm is to gain profitability as they are present to earn profit. Whereas the
similarity in both the firm is that social enterprise figure out the problems of individuals
afterwards determine the solution of that problems and the profit organisation performs function
in order to find out the problem of consumers.
TASK 2
P3 Interpret and assess relevant data and statistics to illustrate how micro and small business
impact on the economy.
Contracted company consist 50 employees or less than it who carry out business activity in
effective manner for raising their living standard. Such type of business perform function at
small scale and invest small amount at their business (Mitra, 2019). Whereas small scale
business units have 2 members for carrying out operation in order to fulfil basic needs which is
food, clothes, shelter etc.
Most of the entrepreneurs start their business at small all micro level with the aim of
gaining and maintaining the sustainability at marketplace for longer time. These entertainers also
contributes towards development of economy by fetching innovation and creative idea at market.

This increases the economic condition effectively. Additionally micro firms supports in
enhancing living standards of society people and that ultimately improves status of society.
These enterprises lies on bringing innovative and creative products at market for fetching
positive change in people. This will be understood properly with the help of an example such as
the economy of UK was facing lot of challenges due to Brexit. As well as economy of UK
booming down that effect negatively on individuals. At this time small and micro company helps
government to overcome this situation effectively (Klapper, Biga-Diambeidou and Lahti, 2016).
Further these enterprises help economy to remain sustain and effective. Hence SME’s pay a
major part in growth and development of economy.
From above graph it has been analysed that the effect of small business on economy of
UK is interpreted that:
 The micro business contributes approx. 19% in development of UK economy.
 The overall contribution of small business on UK economies around 24% and that
considered the extreme part which effects certainly the economy of nation towards
development & growth.

From a bar graph it can be seen the SME’s delivers maximum number of Employment
Opportunity to individuals and that considered as most important part of development of
economy.
From above graph it can be seen that SME’s offers employment opportunities to peoples
which is very much significant in growth of nation positively. Additionally the opportunity of
employment is continuously raise year by year.

P4 Explain the significance of small business and business start-up towards growth of social
economy.
Social economy is interpreted as diverse economy that includes features and characteristics
of private and public sectors (Brustbauer, 2016). It assess how norms, ethics and social values
influence of behaviour of users and structure their buying trends. The non-profit organization
perform work with the aim of improving social condition of nation. This is a voluntary
organization that carry out operation on both national and international level.
Further such type of companies majorly contributes in economic system of UK. As well as
help government to increase funds and develop economy effectively. The importance of start-up
and small business are discussed below:
Increasing job opportunities -Increment in start-up & small business, also increase the
employment Opportunity to people and that contributes positively towards development of
Social economy. These enterprises provides Job opportunities in market to hire highly skilled
and knowledgeable employee who assist them to accomplish their goal before time. Their skill &
competency of workforce will effectively utilise in order to gain positive outcome. Additionally
give them an opportunity to full fill their basic needs and improve their living standards. This
leads them to improve the condition of nation by increasing income of country. With the
assistance of employee small and start-up business achieve success and sustain at market. As
well as they expand their business in other nation too with the help of these talented workforce.
Innovation- Start up and small business fetches innovation and creativity into their
products for grabbing more people towards their offering (Kuzmina, 2017). They emphasise on
developing that kind of products which aid them to improve the living standard of society
people. With the help of such kind of business the social economy of nation attain higher growth
and development. Start-up brings creativity by investing time, money and efforts for gaining
Profitability. Additionally with the help of innovation company will able to compete with other
players of market also.
Betterment of domestic culture -It has been analysed that sales and profit level of
companies has decline due to the effect of Brexit. This declines the market share of many
companies predominant in UK. That time small and start a business help government to compete
with this situation as they launch creative and innovative products for satisfying the needs of

consumers. They majorly contributes some portion of profit towards improvement of social
economy.
Poverty alleviation- By offering job opportunities to individuals, such type of enterprises
decrease the poverty and scarcity of nation. They mainly relies on fulfilling the basic needs of
individual who are living in communities that positively influence the social economy. By which
social status of individual improves and that directly remove the poverty level of country. Small
and start up business hires highly skilled and effective candidate's for the enhancement of sales
and profit Margin of companies
TASK 3
P5 Identify the characteristics, traits & skills of successful entrepreneurs that differentiates them
from other business managers.
Traits, skill as well as characteristic observed in Zuber and Mohsin Issa and Richard Branson are
as follows:
Basis Zuber and Mohsin Issa Richard Branson
Traits Innovation- This unique and
creativity idea of innovation
fetches by both brothers leads
them successful man at
marketplace.
Feedback methodology- it
has been analysed that both
brothers takes reviews from
consumers in order to get
improvement in offerings.
Innovation- In context of
Richard Brason, he bring
innovation and offers new
product at marketplace that
easily accepted by consumers
rapidly (Brush and Greene,
2020).
Skills Focused- Both of them are
more focused towards their
role and works in order to
achieve higher position as well
as to gain success in
marketplace.
Mindfulness- He possess
capability to manage issues
and condemnation in effective
manner which fetch out
positive outcome.

Motivators- Zuber and
Mohsin Issa, both brothers
encourages and motivates
their staff members that
enhancement their
performance & productivity
level.
Characteristics- Risk- taker- They both
emphasis to take risk for
brining innovation and
creation in product at
marketplace.
Problem solving- They
possess capacity to resolve
problem and issues in
effective manner.
Leaderships- Richard
Branson, he is well-known
leader as he motivates &
encourages all staff members
to effective perform task.
Additionally, he manages &
handles team in effective
manner.
The differentiation between Successful Entrepreneurs & Business Managers are discussed
below:
Basis Managers Entrepreneurs
Focus They focuses on performing
business operations in
effective manners by
considering their roles and
responsibility.
They relies on fetching
innovations & new products at
marketplace and that aids
them to remain in market for
long time.
Status Managers are not the owners
of company they are mainly
stakeholders of business unit.
They are itself the owners of
company and itself will be the
responsible of any loss while
tasking any risk.
Motivation To conduct business activities
for raising productivity of
To gain desired goal by
earning higher profits and

company is motivation of
managers.
motivates their workforce to
with full potentials
Entrepreneurial mind-set: This refers to the way of thinking that helps in competing with
challenges & accept responsibilities for attaining potential outcomes.
Types of mind set:
There are various types of entrepreneurial mind-set that involves passions first and it is
opted naturally in order to adhere business that are based on needs of market. Second mind set is
everything that is possible which aids in achieving the extraordinary outcomes. Third is 100 %
accountability and that helps in giving one of the best efforts in situations which is out of control.
P6 Assess how aspects of entrepreneurial personality reflect entrepreneurial motivation and
mind-set.
Entrepreneurial personality refers to characteristics, motives and human quality that an
individual have in itself (Goffee and Scase, 2020). That mirrors with the requirements &
experiences of individuals. For the understanding of entrepreneurial personality it is important to
discuss some factors and these are as follows:
Family: The career & future of a child is totally structured by the background and Family
members. It is important to give a proper direction and guidance to child so that they will able to
get understanding about what is wrong and right. Additionally, behaviour and attitude is also
shaped by family members. In which the norms, culture, ideas of family plays important role for
shaping the future of child.
Lifestyles: A good lifestyle straight tends to effective decision making. In terms of an
entrepreneur if they have experience about problem and goes through the hurdles in life then it is
not possible for them to take high risk and carry out their business activity appropriately. Then
their main focus is only to full fill the basic needs of humans. As well as it is not possible for
them to make effective and better decision.
Upbringing: The culture that is provided to people also matters in gaining success. The
people whom they meet, communicate and interact effectively on the basis of ability and quality
is also depends on upbringing. Further a bringing affects nature, attitude, and behaviour of
person. In relevance to entrepreneur their upbringing is flexible by which it builds optimistic and
confident behaviours in itself.

Openness: This factors is related with the enthusiasm of an entrepreneurs for taking out
innovation, to be vulnerable and to imagine the thing out of box. It holds traits like originality,
insightfulness, curiosity, uniqueness, creativity etc. a person who is low in openness to
experiences will not able to meet goals.
Conscientiousness: It refers to the control power of an individual that helps in getting
better and immediate actions. They are very precise to follow rules and policies for attaining
desired goal in effective and easy manner.
Extraversion: It describes those peoples who are talkative and interactive in nature. They
attract energy by effective communication skills and that helps them to gain high opportunities.
This assist entrepreneurs to interact in society and gain opportunities.
Agreeableness: It defines sympathetic, friendly and cooperative nature of a person and
that influence minds of individual in positive way. It includes traits like trust, patience, and
politeness.
Neuroticism: This is an emotional stability and behaviour that defined the capabilities of
an individuals for dealing issues and circumstances. This will aids entrepreneurs to deal with any
kind of situations.
Entrepreneurial characteristics and situational factors:
The external factor in internal characteristics includes motivation, education, social-
norms, culture, and family support. It is very important characteristics for an individual in order
to gain desirable results. It can be seen that there is increment in unemployment in this business
environment. Due to this it become important for entrepreneurs to raise the possibility of
employment for reaping important results
TASK 4
P7 Examine, using relevant examples, how backgrounds and experienced can hinder or foster
entrepreneurships.
The way of attaining growth and the development of all firm is different from one other.
Small business enterprise use different methods to take decision equate to medium and large
enterprise. It varies from according to size and nature of business. Experiences and education
both plays important roles in shaping the structure of company for future outcomes of team and
individual. In which the primal important trait that needs to be acquired by each entrepreneurs

are self-motivation, self-managing, time management and coordination. That is developed by
experience and education level of an individual (Ramadani, 2020). Taking high risk is another
important factors that is required to be present in entrepreneurs.
Every business is consist some type of risk and that is not easy to determine before
execution of any activities of business unit. Entrepreneurs faces so many challenges and
difficulties before originating business at market. Zuber and Mohsin Issa, successful business
managers and renowned entrepreneur and take risk which is the reason of being successful in
business at marketplace. Richard Branson a successful entrepreneur as well as a famous leader
perceives risk as well as opportunity and challenges due to which he gain success at marketplace
rapidly. It is important for an entrepreneur to be flexible and dynamic in order to deal with high
risk. So that they can easily deal with changing environment and that would not hamper business
performance. Additionally, analysis of risk assist entrepreneur to attain success and growth in
business effectively.
Richard Branson: He is an international entrepreneur who fallen out at age of 17 in order
to begin the youth culture magazine namely, student. Branson living in London which is
bounded by British music & drug scene and during that he got an idea to expand their business
venture called virgin group.
In relevance to Zuber and Mohsin Issa, they are highly motivated and possess eagerness
to resolves problem of peoples. Ability of risk taking aid them to become successful
entrepreneurs and that is vital for gaining employment opportunities positively as it enhances
economy.
CONCLUSION
From above discussed report it has been analysed that entrepreneurs brings innovation
and creations in products at marketplace and that affects the economy of nation in positive
manners. Interrelation between entrepreneurships practices & entrepreneurs is vital for effective
start-up business. After assessing the study, it has been considered that UK is one of the nation
that gain highest growth rate in entrepreneurial ventures. All forms of ventures focuses on full
filling the basic needs and to get profitability. Additionally, small and medium entrepreneurs
affects the growth of economy either it is regional, national or state. Increment in start-up
business, rate of unemployment is also decreases as it offers job opportunity, bring innovation.
This reduces scarcity ad poverty of nation.

REFERENCES
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