The Impact of Micro and Small Business on the Social Economy

Unit 9 INTRODUCTION 3 TASK 1.3 P1 Explanation of different types of entrepreneurial ventures and how they relate to the typology of entrepreneurship 3 P2 Present differences and similarities 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 significance of small businesses & start-ups to the growth of the social economy .9 TASK 3.9 The Mindset of entrepreneur.9 P5 Analyse

Unit 9

Table of Contents
INTRODUCTION................................................................................................................................3
TASK 1.................................................................................................................................................3
P1 Explanation of different types of entrepreneurial ventures and how they relate to the typology
of entrepreneurship..........................................................................................................................3
P2 Present differences and similarities 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 significance of small businesses & start-ups to the growth of the social economy.....9
TASK 3.................................................................................................................................................9
The Mindset of entrepreneur ...........................................................................................................9
P5 Analyse characteristics, skills, & traits of entrepreneurs that are different from managers.....9
P6 Explain different entrepreneurs personality which reflect entrepreneur mindset and motivation
........................................................................................................................................................11
TASK 4...............................................................................................................................................13
P7 Discuss effect of background and Experiences of an Entrepreneurs .......................................13
CONCLUSION..................................................................................................................................15
RERERENCES...................................................................................................................................16
Books & Journal:...........................................................................................................................16

INTRODUCTION
In market, business is wider & widening activities at wider scale. In this competitive era, it
is essential to focus on type of entrepreneur, entrepreneurship & business so that resources are used
accordingly (Abdulaali, 2018). Main aim of this report is to understand the type of business &
entrepreneur in market. Asda, a supermarket chain retailer headquartered in U.K. The firm has been
acquired by EG group owners. Asda operated at global level& Walmart is its parent enterprise. This
report comprises of different types of entrepreneurial ventures & typology, similarities & difference
between entrepreneurial ventures, interpretation of relevant data on how small & micro business
impacts in economy, importance of small business & star-ups, characteristics traits & skills of
successful entrepreneurs, aspects of entrepreneurial personality and background & experience
impacting entrepreneurship.
TASK 1
P1 Explanation of different types of entrepreneurial ventures and how they relate to the typology of
entrepreneurship.
Entrepreneurial ventures is a risky and daring journey related to the different type of
entrepreneurship. There are the multiple type of entrepreneurial ventures on the basis of types of
business. Entrepreneurship is the development of new businesses by individual how takes a
complete risk of profit and loss. Entrepreneurial venture involves the compete journey of newly
developing business, such as management, control, operations, functions, success, Profit, loss etc.
the different type of venture is explained below-
Small business entrepreneurship- Is the small scale business, if some one wants to start
their business but do not have large amount of money to start business. Then that person can go
with the small business entrepreneurship, where they can start the small innovative business. Such
as food track, online shops, bakery, Tiffin canter, event management, event decoration, etc. here the
one person owner can use the all profit and face the all over the challenge of loss. Recruitment of
staff is not that much required in the small business, it depends on entrepreneur that he or she want
to recruit or not (Analia, 2020).
Scalable start up- This is a medium size business, for establishment of this type of
business venture an entrepreneur should have target the medium-sized marketplace. It is type of
business which can be run by innovative person who can plane project and idea in very effective
way so they can scale up their business and growth. By the achievement of higher shares and profit.
This business plan involve the steps of targeting new market and shares in order to increasing the
organization position. They can also scale up their business at international level.

Large entrepreneurship- It is a type of entrepreneur and business journey which focus on
largest market area. The aim of project of this level is to make a biggest change in the competitive
market with new innovations. But for the management of that level of business entrepreneur needs
the support and guidelines from shareholders and manager, business partner if have. As it is a large
scale business so for the promotion and marketing of product and services entrepreneur need large
amount of investment.
Social entrepreneurship- This involves the development of type of organisation which
work for society, this can be done by the individual who's objectives is to help others, in terms of
food, shelter and education. By the establishment of this kind of organisation company, focus on the
fulfilment of poor peoples need, not in the profit of company. Their aim is to provide social
goodness (Doshmanli, 2018).
Serial entrepreneurs- This is involves the development of multiple kind of business idea
by single company in order to change the present market. The entrepreneur who can develop this
type of business ventures, should be innovative, creative, problem solving and should posses
management properties. It involves the changes in the present business system with new
alternatives. This type of business need highest investment of money and time for once. Examples
of serial entrepreneurs is Richmond group.
Lifestyle venture- This involves the type of entrepreneur who want to establish the
business for the achievement of defined amount of profit. In this case entrepreneur just focus to get
the profit for the enjoyment of their life from particular business. They don't want to compete with
others, just want to enjoy their life whit target amount of income. Target the large size market of life
style than the focus on the development of trendy product by targeting the different customers. The
largest life style venture is ZARA (Erfani, 2017).
Social economy- Social economy venture is type of business which is done for the
management of economy of society. This can be stablish by the network of entrepreneurs, investors,
capacity builder. Who can helps the different organisation to mange their economical condition,
helps to make progress strategies, helps in the analysis of economical growth. This involves the
organisation which are develop to provide ideas and guidelines with the democratic association. Its
differentiation is related to the social enterprise who helps the different company's for their growth
by providing multiple services. For example National health organisation provide medical advice
for health care association and individuals for the awareness of health maintenances.
Survival venture- This can be a very small kind of business done by the entrepreneurs for
the fulfilment of their personal needs of survival. Examples are small circle business which can be
done by the collection of funding. Furthermore, they seek resources and customers by connecting to
other small organisation.

Characteristic of successful entrepreneurs
 an individual can be a entrepreneur if he or she posse the quality's such as self confidant,
self esteem, leadership quality, good communication skills, good personality etc.
 they should be problem solving and always ready to take challenges.
 Furthermore, entrepreneur poses the flexibility in their management techniques.
So it is clear that to chose the right venture, entrepreneur should focus on the classification of types
of entrepreneurship. Which helps in the decision-making. Before the starting of any business it is
very important to know the types of business, organisation and ownership. So that they can decide
that which type of entrepreneurship will be suitable.
P2 Present differences and similarities between entrepreneurial ventures
There are the different type of entrepreneurial venture on the basis of their management
process, their services and functions, Selected for businesses.
Types Similarities Differences
Small and large enterprise Both type of business posses
same objective of profit and
growth (Farahani, 2020).
Difference is that small
entrepreneurship is done with
the small investment and large
entrepreneurship is establish
by large amount of investment
and work area.
Social and scalable
enterprise
Their objective is to provide
the the valuable services and
satisfaction.
Social enterprise they work to
guide other and provide
information. But scalable
enterprise work to change and
developing the new innovation
in the marketplace.
(Muhammad, 2020).
Lifestyle and survival
entrepreneurial ventures
Both type of entrepreneurship
focus on the maintenance of
profit and income for log
period of time.
Survival venture aim to get
profit from business to fulfil
their personal needs. Where in
the case of lifestyle ventures
they focus on the use of profit
for the enjoyment of life.

TASK 2
P3 Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on the economy.
In this business area, micro & small organisations play importance role. In a specific
market, growth of economy depends upon size of these type of organisations. In context of U.K,
most of market comprises of small & micro businesses which delivers high profit & productivity.
The government of United Kingdom is being supporting all type of businesses at larger scale. It is
stated that around 5 million small & micro entity exist in market of U.K (Namkung, 2019).
Moreover, employment opportunities are mostly generated from these two type of businesses. So, it
is necessary to focus on these two as they are responsible for growth & development.
Furthermore, they impacts upon economy at deeper scale because most of profit is generated
by them & which affects the stability of economy. It is essential for a country to be leverage to these
both type of businesses so that it is easy to achieve higher growth. Also, they are responsible for
increasing of competition in market, bringing out new innovation to business etc. It is also
examined that it is necessary to allow them to access to market appropriately. According to report
published by Entrepreneurship Research Centre (ERC), they have stated that the SME'S
contribute to 48% of profit to United Kingdom (Murphy, 2017). With this larger contribution to
economy, small & micro business has become an important part of marketplace without which
growth cannot be achieved.

Effect of micro and small businesses on economy
 Decrease in unemployment rate- This is most deep impact on economy as because they
provide wide number of employment opportunities to people & in market. Further, they too
improve market condition of business by providing access to resources at larger scale.
 Enhances productivity- It is another positive effect on economy by SME'S as because it
enhances the productivity of businesses to compete for more access to resources. With
increase of productivity, entity has to pay more tax to government & which also leads to
increase of GDP of nation (Shang, 2016).
 Enhance recognition of country- In this, impact of SME'S leads to increasing stability
level of nation & also it leads to recognition of a country at wider scale.
Thus, it has been specified that micro & small businesses both have deep effect on economy
of a country in both negative as well mas positive way. Through analysing these effects, they mostly
provide benefits to economy of a nation & makes it stable (Simba, 2017).

The above stated picture states that effect of micro, small medium enterprise is larger &
directly impacts on overall structure. It is seen that larger enterprise were going downward in
2010. As countries such as Denmark, Norway, Germany, Netherlands were affected by these micro
& small business at larger level in between (2010-2012). (Sozuer, 2017).
From above displayed picture, it reflects that from year 2008 to 2019 rise of small &
medium business has been rising at rapid scale. With more rise of business sector, it leads to more
tax which is earned by government of U.K. This is examined that it impacts upon the overall
market structure at larger area (Vugt, 2018).
So, it is examined that it is necessary to focus on contribution of these SME'S, so that it is
easy to gain information about these businesses in proper manner.

P4. Explain significance of small businesses & start-ups to the growth of the social economy
Social economy-
It is defined as type of a mixed economy in which it is seen that it have a different types
enterprises & organisations which includes cooperatives, mutuals, associations etc. In viewpoint of
United Kingdom, they have been improving these social economy as because it includes 6.5% of
employment. These social economy focuses on both national & international level relying on size &
scope.
Importance of small businesses towards growth of social economy:
Small businesses often leads to higher growth of social economy because it impacts the
overall market structure. Moreover, small business is essential as because it leads to growth of
social economy because they unpin society, communities & allow them to access to opportunities.
Both these start-ups & small business are necessary to be carried out as because they results in
delivering of more profits & increasing GDP of country at wider approach.
 Improved technology- With changing period of time, technological field has been
improving at larger level. With entries of small businesses competition increases which
leads to development of technology at wider approach.
 Provide job opportunities- It stated that small businesses are important as they deliver
more job opportunities within a economy. This is examined that without small business it is
difficult for social economy to achieve future growth.
Therefore, it is examined that it is necessary to understand that small business & start-ups
are crucial as they help in providing growth to social economy at larger scale. Also, both these type
of businesses are responsible for delivering of more job opportunities & increasing employment rate
at higher level.
TASK 3
The Mindset of entrepreneur
P5 Analyse characteristics, skills, & traits of entrepreneurs that are different from managers
In business, both entrepreneurs & managers play important role. They both are responsible
for achieving of goals & objectives. In relevance of selected firm Asda, they assure that these roles
are properly followed both personality. For example- two entrepreneurs has been chosen which one
from EG group owners who are two brothers Zuber & Mohsin Issa & other entrepreneur is
Richard Branson. They both are different from each other accordingly they carry out their roles as

well as responsibilities.
Characteristics of successful entrepreneur
 Motivation- A successful entrepreneur is motivated at all aspects of business cycle.
 Enthusiasm- This is another characteristics in which successful entrepreneur is excited
towards work, responsibilities within business.
 Innovative mind- It is important characteristic in which an entrepreneur is of innovative
mind & proposed a new things.
Zuber & Mohsin Issa Richard Branson
Traits Innovation- These two
brothers have innovative mind
because they formed a business
of petrol stations & are
developing business at wider
scale. They have launched EG
fuel stations.
Innovation – Richard Branson
is also an innovative
entrepreneur because he
launched diversified entity with
new business & named as
Virgin Group (Muhammad,
2020).
Characteristics Team player- These two
brothers are team player as like
to work with group of people
rather than individually.
(Farahani, 2020).
Risk taker- Branson is risk
taker because he likes to focus
on new business opportunities
by new methods & approaches.
Skills Communication- Both these
two brothers have an excellent
& high level of communication
Focused- Richard Branson is
focused person as his main
motive is to expand business at

skills which they use it when
dealing with clients.
larger scale with new things &
products/ services.
Basis Manager Entrepreneur
Meaning
A manager is one who is
responsible for completion of
task or objectives within a
period of time.
An entrepreneur is one who
introduces new business or
innovative product (Erfani,
2017).
Focus Their main focus is on
completion of assigned duties
& assignment on given time
period.
Entrepreneur main focus is on
introducing the change to
market with aim of gaining
recognised in a community.
Status They are being viewed as
employee of organisation.
(Doshmanli, 2018).
Entrepreneur is viewed as
owner or boss of company.
So, it has been specified that it is essential to focus on these differences between
entrepreneur as well as manager so that a roles & responsibilities are properly cleared within a
sector. Moreover, it is examined that it is necessary for an entrepreneur to be aware about skills,
traits & characteristics so that abilities are used accordingly.
P6 Explain different entrepreneurs personality which reflect entrepreneur mindset and motivation
Each & every person has different form of personality on basis of which they act and
behave within society or community. It is crucial to be aware about these personality so that it is
easy to make decisions towards others. So, OCEAN model is used to understand type of
personality which is further explained below-

Openness- In this type of personality a person has imaginative mind & innovative thinking.
These type of individuals are mostly adjustable & also they experience more strategic approach to
solve problems. Zuber & Mohsin Issa entrepreneurs comes under this category it impacts their
mind & motivation (Analia, 2020).
Mindset-
It affects their mindset because they are to deal with new people in proper manner.
Motivation
Through this personality, both brothers generates new ideas & thinking which motivates
them to become a successful entrepreneur.
Conscientiousness-
It is another personality in which they to be perfectionists people who like to carry out
everything in proper manner. In comparison with this, other personality is reactive in which
individual properly understand the situations.
Mindset-
This personality also affects the mindset because they has mind set of achieving goals
without facing any issue or problem (Abdulaali, 2018).
Motivation-
It impacts the motivation because it motivated entrepreneur to be perfect at all levels so that
higher productivity is achieved.
Extraversion

This is a personality in which individual is talkative in nature & openly engaged with new
people. Other than introvert personality people are those who do not easily engaged with new
people. They are shy & calm in nature as compared to extroverts. So, Richard Branson is extrovert
in nature & comes under this personality.
Mindset-
This personality impacts the mindset as being extrovert leads to developing of mindset of
entrepreneur & increase confidence level (Murphy, 2017).
Motivation- Being extrovert motivates entrepreneur as it makes them confident about their inner
capabilities (Namkung, 2019).
Agreeableness
They are those people who are kind & show empathy towards others. They are always
ready to help others. Also, it is seen that these personalities of people are basically of kind
behaviour.
Mindset
It affects the mindset because it reflects characteristics of individual towards society or
community.
Motivation
It motivates individual to maintain a positive relationship with each others.
Neuroticism
These are those people who are emotionally vulnerable & distracts others from their work
& roles. They share their emotional stress with other & distract them from their core goals. So, in
reference of both chosen entrepreneur, they do not come under this personality as they do not
distract others emotionally.
The above matter shows that, it is important to understand type of personality of
entrepreneur or individual so that it is easy for them to make decisions in their life & towards work
in appropriate way. Furthermore, it also stated that through properly focusing on these personalities
gives a brief information about characteristics & traits of a particular individual.
TASK 4
P7 Discuss effect of background and Experiences of an Entrepreneurs
Background & experience are two important things or factors which are required to be

focused by entrepreneurs because it affects them at wider scale. So, chosen entrepreneurs which are
Zuber & Mohsin Issa & Richard Branson get affected & are mentioned as follows-
Family background-
Both brothers Zuber & Mohsin Issa are from India & came from Gujarat with their father
to work in textile industry in United Kingdom. Zuber is graduated from Witton Park High School.
Their family background earlier was from middle class family. Whereas Richard Branson born in
Blackheath, London. In his family he has two sisters & his grandfather was the judge of high court
of justice. He was educated from Scaitciffe school and had a poor academic performance. Branson
mother was also an entrepreneur (Shang, 2016).
Positive impact-
 The two brothers were motivated & having innovating thinking which leads to develop
their inner capabilities of becoming entrepreneur.
 Richard also get benefit from his family background because his mother was also an
entrepreneur which encourages him to become entrepreneur.
Negative impact
 Both these entrepreneurs, took time to understand their inner capabilities as well as skills.
Experience
Both these brothers has a high experienced in business. As because prior to the Euro garages
,they both took garage on lease & saved money for their petrol stations. Due to having experience in
business administration. They both have diverse experience in their life & it makes them aware
about their capabilities (Simba, 2017).
Positive impact
 Due to this diverse experience of their life, both these entrepreneurs were able to improve &
develop their objectives.
 Moreover, having experience and deep knowledge in business allows them to take
competitive advantage in field.
Negative impact-
 Negative aspect of this experience was that they faces many problems during process. Also,
it affected their level knowledge & morale at wider scale.

CONCLUSION
After a brief analysis of above report, it has been concluded that small business management
& entrepreneurship is important concept which is required to be focused & considered so that
strategies within a market are implemented accordingly. This report gives a brief information about
importance of small business & entrepreneurship within a specific sector. It is also evaluated that it
is necessary to be aware about impacts of these so that objectives are achieved. Thus, both small &
medium businesses deliver opportunities to country to achieve higher growth & development.
Therefore, it is stated that by properly carrying out market research analysis, it is easy to examine
that it these businesses contributes to economy at larger level.

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