Entrepreneurship and Small Business: Venture Types and Economy Impact

This report delves into the realm of entrepreneurship and small business management, offering a comprehensive analysis of various venture types, including micro, small, medium, and large businesses, as well as private and public ventures. It explores the similarities and differences between these ventures, highlighting their impact on the UK economy through job creation, GDP contribution, and innovation. The report provides statistical data to illustrate the significance of micro and small businesses, emphasizing their role in employment and turnover. Furthermore, it discusses the importance of small businesses and startups in fostering social economic growth, examining factors such as job creation, innovation, consumer satisfaction, competitiveness, low overhead costs, and adaptability. The report also outlines the characteristic traits and skills of successful entrepreneurs, differentiating them from managers. Overall, the report underscores the vital role of entrepreneurship and small businesses in driving economic development and societal progress.

Entrepreneurship and Small
business management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1 Different type of entrepreneurial venture and typology of entrepreneurship. ......................1
M1 ..............................................................................................................................................2
D1 ...............................................................................................................................................2
P2 Similarities and differences between entrepreneurial ventures ............................................2
D2 ...............................................................................................................................................4
P3 Statistics data to illustrate the impact of micro and small businesses on economy...............5
P4 Importance of small businesses and business start – up to the growth of social economy . .6
TASK 2 ..........................................................................................................................................7

P5 Characteristic traits and skills of successful entrepreneur and differentiate them from other
manager ......................................................................................................................................7
Conclusion ....................................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Entrepreneurship is the study of how business started by designing, launching and running a new
business which is small business level. The person who start the business with his innovative
ideas are known as entrepreneurs. Also, the entrepreneur have the capacity and also willingness
to start the business and also have the ability to manage the things in right way.
TASK 1
P1 Different type of entrepreneurial venture and typology of entrepreneurship.
Types of entrepreneurial ventures are -
Micro business entrepreneurial venture – It is basically operates with low scale and also with less
than 10 employees and serve good and services to local community .
Small business entrepreneurial venture – Small business entrepreneurship create large jobs and
also comes with the lot of innovative ideas of doing old things. Also in this type of venture there
is less revenue and also lower risk but it is typically kept moving ahead. And work with fewer
employees and with sufficient capital with focus on offering products and services to the local
community (Sallehudin, Razak and Ismail , 2015).
Medium entrepreneurial venture – This type of entrepreneurial venture creates job opportunity
and also by the help of there knowledge it increases sales of the business and also maximise the
profit of the business. The venture in which 100- 999 employees are being engage is known as
medium entrepreneurial venture.
Large entrepreneurial venture – This type of venture operates in big level and focus on
maximising the sales and increasing profit by continuous innovation of product and services.
Gazelle entrepreneurial venture – This type of venture known for its fastness as it grow rapidly
and also with consistent expansion and diversification and also with good turnover.
Private entrepreneurial venture – This type of venture initiates under private sector in which its
main motive is to maximization of profit and also few members operate and control the venture
with no intervention of government.
Public entrepreneurial venture – This type of venture is control and operate by the government
and hence it is more complicated type and focus is to maximise the interest of the customers.
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Social entrepreneurial venture – Social entrepreneurial venture basically concentrate on the
betterment of society and generally generate those goods and services which give benefit to
society or solve the problem of the society (Tehseen, and Ramayah, 2015).
Typology of entrepreneurship
Scalable typology – This entrepreneur start the venture from day with the strong vision and also
they search job is to search for a repeatable model and focus on the scale require.
Serial typology – This are the entrepreneur which comes up with the innovative and creative
ideas. It is the person which continuously search for new ideas and start new business in the short
period (Petkovska , 2015).
Owner manager – This is the person who establish a new venture and also manage the business
and also can take help of family and friends. It has the authority to take decision in the venture .
Intrapreneur – They act as entrepreneur but it only duty is to innovate the ideas and integrates
risk.
M1
From the study the NHS is the public company and it main purpose is to maximise the
interest of the customers as it is publicly owned company and it is regulated by the government
and offer free services to the customers. On the other John Lewis is a private company and its
main motive is to maximise the profit as it is private company as no intervention of te
government.
D1
Scope – the scope of entrepreneurial venture is wide as it becoming famous and strongly
impacting on other and attracting many customers towards it
Development – Nowadays, there is a major development of entrepreneurial venture as it this type
of venture is becoming successful day by day and also earning good amount of profit.
Growth – this type of entrepreneurial venture are growing day by day and also focus on the
expansion and diversification of the venture.
P2 Similarities and differences between entrepreneurial ventures
Differentiation between Micro, Small, Medium and Large
Basis Micro Small Medium Large
Meaning Micro Small Medium Large
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entrepreneurial
venture are the
business with
minimal
employees and
also minimal
capital. They also
added value to the
society by
creating micro
business and
enhancing the
income .
entrepreneurial
venture employs
small number of
worker and also
have low level of
sales volumes. It
is independently
established and
manage company
with limited size
entrepreneurial
venture have slow
growth but
sustainable profit
and also it creates
a structure
between small
and medium
enterprise.
entrepreneurial
venture operates
al large scale with
sufficient capital
and also serve
number of people.
And also
increases sales
with maximum
profit.
Investment In micro
entrepreneurial
venture there is
an investment is
up to 25 lakhs as
it operate at very
small scale
In small
entrepreneurial
venture have
investment more
than 25 lakh but
less than 2 crore
In medium
entrepreneurial
venture have
investment more
than 2 crore but
less than 5 crore
In large
entrepreneurial
venture have
investment more
than 5 crore as it
operates at large
level and serve
many people .
Number of
workers.
There are very
few workers that
is 10 as it
operates at low
scale
The number of
worker are less
than 100 to 250.
The number of
employees are
more 250
The number of
employees are
many as it is large
business venture .
Purpose The main purpose
of micro
entrepreneurial
venture is serve
The main and
foremost purpose
is to sustain
growth in the
The main purpose
is to generate
revenue.
The main
objective is to
maximise the
profit of the
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goods and
services to the
local community
industry
(Klievink,
Bharosaand Tan,
2016)
business .
Similarities between Micro, Small, Medium and Large entrepreneurial venture.
The above four entrepreneurial are having many similarities as they are seeking for the
sustainable growth and also generate and create job opportunity for people of UK. And also
providing goods and serving to the customers of the UK.
Differentiation between Private and Public entrepreneurial venture.
Basis Public Private
Meaning This type of venture operates
and control by the government
and also funded by the
government and also the profit
invested back in the company.
This type of venture are own
and manage by the few
numbers of people and also
with no intervention of
government.
Objective The main objective is to
maximise the interest of the
society and also to satisfy the
customers.
The main objective is to
generate maximum profit and
also increasing the sales of the
venture.
Examples NHS it serves free health
services.
John Lewis partnership it is the
retail industry.
Similarities between Private and Public entrepreneurial venture.
The basic similarity is that both are customers service oriented as both the customer base
is different but they both focus on customers. The second similarity is that they both open for
change and adopt many innovative technology in the positive manner.
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D2
Small, medium and large businesses impact the economy as it provide the employment in UK, it
is the main source of the employment and it helps to increase the economy of the country and
also it increases the GDP of the country.
P3 Statistics data to illustrate the impact of micro and small businesses on economy
Small and medium business are considered to be responsible for the job creation as they
provide many job opportunity. In recent year there is growing importance of small business
sector is the result of development which is taking place such as huge contribution on the service
sector as the GDP of UK has risen from 59 to 72 % over last three decades of the 20 century.
Secondly the outsourcing is becoming famous so that one can concentrate on core business
because micro and small business has specialized on manufacturing sector. Small and medium
business has major share in the employment in UK as it provide 58.5 % of the jobs. And also the
turnover of small and medium size business is to £20 trillion in 2018. There are 5.6 million small
and medium business at the start of 2018. Small and medium account at least 99.5% of the
business in every main industry. Small and medium businesses are contributing over 50% of UK
GDP which is the good percentage (Hans , 2017).
99.9% of all private sector businesses in the UK are Small and medium business and also
more than 95% are micro business.
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Illustration 1: Private sector business in the uk by the business

Small and medium business generate most profit at almost £200000 per year. These highlighted
the importance of the expanding the business and also significantly increasing the profit margin.
P4 Importance of small businesses and business start – up to the growth of social economy .
Small business contribute to local economies by many ways as with the help of different
innovative ideas and creative skills as small business and start up stimulate the growth of the
social economy by providing various employment opportunity. As small business and start up
represent 99.9 percent of all business of UK. These are the important source of employment just
as 2.5 million UK worker are self employed. There are many reasons by which importance of
small business and start up to the growth of social economy are -
Job creation – the main importance of small business and start up is that it provides job
opportunity to the society. Today half of UK adults are self employed and work with fewer than
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Illustration 2: average profit of Small and medium business

five hundred employees. Total employment in SME s was 15.7 % million and 60% of all private
sector employment (Eniola and Entebang, 2015).
Innovation – Small business and start up contribute in generating new ideas and innovative
skills. And also it gives tough competition to other by its creative skills.
Consumer satisfaction – Small business have essential knowledge and many ways to satisfy the
consumer by understanding the need and want of the customers and supplying them the
innovative products. And also try to improve the quality of the products and also solve the
problem of the customers.
Competitiveness – Small business and start up help to make UK more competitiveness to
visitors and investors as they play important role in serving the communities. As competition
increases the more productive firm service in the market and hence innovation increases.
Low overhead – Small business are operated in small level with low heating and lighting and
also with limited rent and limited raw material and have lower overhead costs and thus, low costs
represent lower prices for the consumers and hence it will help the growth of the social economy.
Responding flexibly to problem and challenges – Small business are considered to be the flexible
one as they accept challenges as there is no big chain of command and small business can take
more quick decision and solve many problems (Belás and et.al., 2015).
TASK 2
P5 Characteristic traits and skills of successful entrepreneur and differentiate them from other
manager
Basis Elizabeth Gooch Tom Mercer
Skills Management skills - The
first skill of Elizabeth
Gooch was she was having
the ability to manage the
people around her by very
effectively and efficiently.
Ability to raise money – the
second skills of Elizabeth
Relieve stress – the first skill
was that he relieve stress and
behave strongly in every
situation without frustration .
Productive – Tom Mercer was
very productive and creates
new ideas and innovative
method so that it attract many
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that made her the
successful business was
that she was having the
ability to mange the money
in intelligent way as
managing the money in
proper resources and proper
quality is one of the most
important task.
Identify its weakness and
strength – The entrepreneur
who identify its strength
and weakness can achieve
better result and Elizabeth
has identified the strength
and make effective use of it
and for weakness Elizabeth
has improved on it. On the
other hand manager ignore
his weakness and only
focus to the strength.
customers and also it generates
profit.
Characteristic Self motivator - The first
characteristic of Elizabeth
is that self motivation she
always shows the positive
attitude and also motivated
herself by lot of things so
that the goals are to be
achieve .
Flexibility – Elizabeth main
characteristics was that she
Risk taker – The foremost
characteristic of Tom Mercer
was that he was risk taker and
it is the main characteristic of
the entrepreneur as Tom
Mercer take the risk to start the
breakfast venture and hence by
taking the risk he got success
in the venture as high risk is
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was very flexible in
adopting new things and
learning to develop creative
ideas and innovative skills
and also improving her
business time to time with
updated technology. On the
other hand business
manager is not flexible as
he/she is very rigid and
does not open for new ideas
as he is accountable to top
manager.
equal to high return .
Problem solver – As
entrepreneur understand the
problem the society and try its
best to solve the problem. Tom
Mercer has done the same he
identifies the problem of the
society that there is no venture
for the breakfast and hence
establish the restaurant and
many customers get attract
towards it.
Traits Passion – the first trait of
Elizabeth is that is been
very passionate women and
whatever she does she done
in the right way.
Determination – the second
characteristic of Elizabeth
is that she was very
determine as she has the
determination to do
impossible things. And
manager is not determined
and also he lacks leadership
quality as he does very
routine base work.
Creativity – Tom Mercer was
very creative as he thinks in
the innovative way and
establish the new venture with
his creative skills. On the other
hand business manager is not
creative he only do want he is
accountable for .
Competitiveness – Tom mercer
was very competitive as he
was the ability to win from
others and gain competitive
advantages. On the other hand
manager also show positive
attitude towards the
competition which he faces by
competitor
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Conclusion
This report has concluded the different type of entrepreneurial venture and also entrepreneurial
typology which is present in the business and also further it has concluded the differentiation
between the micro , medium , large enterprise and also there similarities and further the
differentiation between public and private and there similarities . In additional it has concluded
the impact of micro and small business in the economy and also the importance of small business
and start-up on social economy .
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REFERENCES
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selected regions of the Czech Republic and Slovakia. E+ M Ekonomie a Management.
Eniola, A. A. and Entebang, H., 2015. Government policy and performance of small and
medium business management. International Journal of Academic Research in Business
and Social Sciences.5(2).p.237.
Hans, V., 2017. Redefining Entreprenuership: Impact on Gender Differences.
Klievink, B., Bharosa, N. and Tan, Y.H., 2016. The collaborative realization of public values
and business goals: Governance and infrastructure of public–private information
platforms. Government Information Quarterly. 33(1).pp.67-79.
Petkovska, T., 2015. THE ROLE AND IMPORTANCE OF INNOVATION IN BUSINESS OF
SMALL AND MEDIUM ENTERPRISES. Economic Development/ekonomiski razvoj, 17.
Sallehudin, H., Razak, R. C. and Ismail, M., 2015. Factors influencing cloud computing adoption
in the public sector: an empirical analysis. Journal of Entrepreneurship and
Business.3(1).pp.30-45.
Tehseen, S. and Ramayah, T., 2015. Entrepreneurial competencies and SMEs business success:
The contingent role of external integration. Mediterranean Journal of Social
Sciences.6(1).p.50.
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