Entrepreneurial Ventures: Impact on Economy and Management

This report delves into the realm of entrepreneurship and small business management, exploring various venture types and their impact on the economy. It begins with an introduction to entrepreneurship, providing practical examples related to Small and Medium Enterprises (SMEs) and examining the scope, development, and growth of entrepreneurial ventures. The report then assesses the significant impact of small businesses on the economy, including job creation, community development, tax contributions, and the provision of goods and services. Furthermore, it analyzes the entrepreneurial traits, skills, and motivational drivers essential for success, using a case study to illustrate these concepts. The report also explores how entrepreneurial background and experience influence business outcomes, highlighting both positive and negative impacts. References to relevant literature support the analysis, providing a comprehensive overview of the subject.

Entrepreneurship and small business management 1
Entrepreneurship and small business management
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Entrepreneurship and small business management 2
Entrepreneurship and small business management
The term paper presented is based on the entrepreneurship and management of the small
business that do exist within the economy. Small business has positively impacted the growth of
the economy since they contribute a lot to the growth of economy In terms of employment and
the creation of goods and services to the residents of the country.
Task 1: You will need to start with introduction to the concept and phenomenon
(entrepreneurship) with practical examples in relations to SME’s. You are required to write
this report, by using supportive materials like books, Journals and other secondary sources of
information on the findings for LO 1.
Entrepreneurship as art in business management involves creating and developing new
business ideas that will help business persons to start up their own business hence creates
employment opportunities to the unemployed members of the society and also avails goods and
services to the market at affordable prices.
Scope, development and growth of entrepreneurial ventures
Entrepreneurial ventures are believed to create wealth in the society hence positively impact
the growth of the economy of the country. Development of new business ventures in the society
by entrepreneurs is determined by the business gap or opportunity that exist in the modern
market and need for the missing product or service by the consumers and also to some cases
government policies that govern such type of identified business gap. (Burns and Dewhurst,
2016).
Entrepreneurial ventures by the small business entrepreneurs in most of the markets for
provision of goods and services to their customers differ from one entrepreneur to another

Entrepreneurship and small business management 3
following their geographical locations, identified business gap and also the interest of the
entrepreneur. Entrepreneurial ventures are based on the annual growth rate, time horizon,
management focus and sources of the business finance.
The similarities of the entrepreneurial ventures in the modern market are that they are started
with the aim of filling the business gap identified in the market so as to provide the missing
goods and services to the consumer. They are aimed at profit maximization since every
entrepreneur has centered profit maximization as their main entrepreneurial objective.
Entrepreneurial ventures differ from one another in terms of management criteria, type of
services they provide and also organization structures of the ventures. (Julien, 2018).
Task 2: You will continue using the above scenario as an Intern and using supportive
materials like books, Journals and other secondary sources of information on the findings for
LO 2. You are to report on ‘Impact of small businesses on the economy’.
Impacts of small business to the economy
Small business has positively impacted the economy of the country they operate that is from
their services provision, employment, availing cheap and affordable products to the members of
the society, the involvement of the community development programs to payment of operational
duties to the government.
Creation of employment
Development of small business in the society will increase or create more employment
opportunities to the residents of that particular society. With employment creation, the economy

Entrepreneurship and small business management 4
of the country will improve since most of its citizens are employed thus reduces the rate of
poverty in most of the country. (Baron and Hmieleski, 2018).
Full employment in the country will result to reduced government expenditure in
development activities like availing basic facilities to the society since most of the facilities and
services are been offered by the small business operating within the society.
The gross domestic product of the country will increase thus as a result of full employment of
its residents and the emergence of numerous small business activities within the state.
Involvement in the community development programs
Involvement of the small business in the community development programs like the
fundraising activities conducted by the members of the society, supporting the needy and
organizing some of the development forums for the community to enlighten them on some of the
welfare issues like health talk. (Glover and Kusterer, 2016).
Health talk and services provided by the business activities organized by the management
reduces government activities in creating such awareness hence divert such resources to other
services or development programs to other areas.
Payment of duty tax
The management and owners of the small business have an obligation to pay operation fee
by buying operation permit from the local government hence the government will earn revenues
from such activities which are channeled to other development programs which facilitates
economic growth of the country. (Storey, 2016).

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Duty tax levied by the government on small business in the country will assist in sponsoring
some of the state activities which are considered basic like state defense department and also
education programs which are the measure of the country economic stability.
Creation of goods and services
The main objective of the small business in the local markets is to avail products and services
which were previously not available to the members of the society. Creation of goods and
services will promote trade activities in the economy which result in the development of
manufacturing companies in the economy. (Giaoutzi, Storey and Nijkamp, 2016).
Small business will avail goods in the local market for the consumption purpose hence there
will be rare cases of product inadequacy in the market hence positively impact the economy of
the country.
Task 3: Your primary role as an Intern at the Entrepreneurship and Small Business
Management Council (ESBMC) is to support your Line Manager, who reports to a Director.
The Council primarily assists prospective entrepreneurs and start-up ventures to prepare to
become successful entrepreneurs. Your role is to contribute to development of resources used
by your Line Manager, who makes presentations and issues publications on the subject, using
the Case Study below for LO3 – LO4.
Elizabeth’s analysis on entrepreneurial trait
The analysis of the skills, traits and the motivational drivers for an entrepreneur in
developing and managing small businesses to ensure their success is considered vital in
entrepreneurship market since they determine the success of the business.

Entrepreneurship and small business management 6
The identified entrepreneurial skills and drives needed by entrepreneurs for the success of the
ventures include time management, curiosity, efficiency, networking and communication with
other entrepreneurs and the customers. An entrepreneur is expected to possess the above-listed
skills in their service delivery and management of the business.
Time management trait possessed by entrepreneurs will be required in the service delivery
while attending to their customers so as to earn full customers trust thus will improve the sales
output of the business hence profit maximization. Operation hours are also an important element
of time management as an entrepreneur should operate daily depending on the customers turn out
ration i.e. in opening and closing down their shops. (Hyder and Lussier, 2016, pg. 99).
Communication skills will influence how the entrepreneurs relate with their customers thus
in responding to customers' complains and suggestions about their service delivery.
Entrepreneurs are expected to create an official communication channel which they will use to
communicate with their clients regarding their services and also a better channel in responding to
complaints and suggestions from the consumers so as to make necessary adjustments based on
the received suggestions and complains. (Staniewski, 2016, pg. 5150).
Networking that is how an entrepreneur gets information from the market or other
entrepreneurs to identifying market business opportunity in order to boost the sales of the
business since the entrepreneur is well connected to the outside market. Networking skills in
management of the small business is necessary to entrepreneurs as they can adopt some
production techniques and service delivery strategies from their counterparts to increase the
quality of their products in the market enabling them to operate under stiff competitions from
their counterparts. (Spigel, 2017, pg. 70).

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The motivational driver to all entrepreneurs is the expected profit which the business is likely
to generate over its lifetime. Profit is the reward each entrepreneur gets from the business
operations thus act as the motivational drive for the entrepreneur.
Task 4: You will continue using the above scenario as Intern to support your Lines Manager
and your role is to contribute to development of resources used by your Line Manager, who
makes presentations and issues publications on the subject, using the Case Study below for
LO3 – LO4.
Development of resources used by line manager in entrepreneurial success
From the Elizabeth case study, entrepreneurial background experience has both negatively
and positively impacted the entrepreneurs in their business. Background experience has
influenced entrepreneurs' activities like in development and management of the various business
venture they have chosen to explore. Management experience in business will be helpful to the
entrepreneurs since they can easily predict the market movement based on price fluctuations, the
demand of their products and also fluctuating business environment hence they are able to
control such constraints in times of occurrence. (Scarborough, 2016).
Background experience on entrepreneurship will positively influence entrepreneurs as it will
enable them to identify possible risk events which are related to their business hence device a
better treatment and control method of such events in order to avoid or reduce the damage they
cause to the business upon their occurrence that is in line with the Elizabeth’s case study.
Communication experience by entrepreneurs will improve business relation to the outside
environment since an official communication channel will be developed by the entrepreneur
hence facilitates the transfer of information in and out of the business for better service delivery.

Entrepreneurship and small business management 8
Entrepreneurs who have somehow failed in their previous businesses will tend to avoid risky
business opportunity and avoid trying out new business ideas as they are afraid of failing or
running at loss again as seen in the Elizabeth’s case study. This background experience will
negatively influence most of the activities done by such entrepreneurs since they will be limited
by the fear of the previous impact. For instance, when the failure their previous venture was as a
result of bad debts, the entrepreneur will fear to offer services or to sell goods on credit to
customers as they fear that may be the same scenario will be repeated hence will negatively
impact the business as most of the customer will move away from them resulting to low sales
output. (Stam, 2015, pg. 1750).

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References
Baron, R.A. and Hmieleski, K.M., 2018. Essentials of Entrepreneurship Second Edition:
Changing the World, One Idea at a Time. Edward Elgar Publishing.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Giaoutzi, M., Storey, D.J. and Nijkamp, P., 2016. Small and medium size enterprises and
regional development. Routledge.
Glover, D. and Kusterer, K., 2016. Small farmers, big business: contract farming and rural
development. Springer.
Hyder, S. and Lussier, R.N., 2016. Why businesses succeed or fail: a study on small businesses
in Pakistan. Journal of Entrepreneurship in Emerging Economies, 8(1), pp.82-100.
Julien, P.A., 2018. The state of the art in small business and entrepreneurship. Routledge.
Scarborough, N.M., 2016. Essentials of entrepreneurship and small business management.
Pearson.
Schaper, M. ed., 2016. Making ecopreneurs: Developing sustainable entrepreneurship. CRC
Press.
Spigel, B., 2017. The relational organization of entrepreneurial ecosystems. Entrepreneurship
Theory and Practice, 41(1), pp.49-72.
Stam, E., 2015. Entrepreneurial ecosystems and regional policy: a sympathetic critique.
European Planning Studies, 23(9), pp.1759-1769.
Staniewski, M.W., 2016. The contribution of business experience and knowledge to successful
Entrepreneurship. Journal of Business Research, 69(11), pp.5147-5152.
Storey, D.J., 2016. Understanding the small business sector. Routledge.