Entrepreneurship and Small Business: Venture Types and Economic Impact

This report provides a comprehensive overview of entrepreneurship and small business management. It begins by illustrating and exploring various venture types, including small business entrepreneurship, scalable start-up entrepreneurship, large company entrepreneurship, and social entrepreneurship, examining their similarities and differences. The report then assesses the impact of small businesses on the economy, analyzing relevant data and statistics to highlight the significance of micro and small businesses. Furthermore, it delves into the key aspects of entrepreneurship by determining the characteristics, skills, and traits of successful entrepreneurs, and assessing their entrepreneurial mindset and motivation. Finally, the report examines the environment for entrepreneurship, considering how experience and background can impact entrepreneurial endeavors. The analysis underscores the importance of innovation, management, and adaptability in the dynamic landscape of entrepreneurship.

ENTREPRENEURSHIP AND SMALL BUSINESS
MANAGEMENT
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Executive summary
In any big or small business, there is a requirement of an entrepreneur to run a
successful business and achieve all the targets. The entrepreneurs are mainly the
motivated person those are responsible for running a business. In order to be a
successful entrepreneur, there is a requirement of good characteristics as well as skills
for achieving the targets for the business. In addition to that, small business requires a
lot of management abilities which will be helpful for managing the business properly.
There are various types of entrepreneur’s ventures such as social entrepreneurs, large
entrepreneurs and so on. Moreover, the small business has a great opportunity mainly
in the local economic sectors. The business start-ups have a huge opportunity in terms
of innovation as well as employment also. The small business has a huge importance in
the social economy sector as well. There are some skills as well as like being positive,
taking effective decisions and so on which make them different from the manager of an
organisation. The experienced and background creates a huge impact in terms of being
a successful entrepreneur.
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Table of Contents
Introduction...................................................................................................................... 3
LO1 Illustrate and explore the various range of venture types.........................................3
Examine the various types of entrepreneurial venture and explain their relation with
typology [P1].................................................................................................................... 3
Exploring the similarities and differences between the entrepreneurial ventures [P2].....5
LO2 Assessing the small business of the economy.........................................................7
Interpretation and assessing the relevant data and statistics in illustrating the small and
micro business [P3]..........................................................................................................7
Explaining the importance of business start-up and small business for social economy
[P4]...................................................................................................................................8
LO3 Determining and assessing the key aspects........................................................11
Determining the characteristics skills and traits of successful entrepreneurs [P5].........11
Assessing the entrepreneurial aspects reflecting the mindset and entrepreneurial
motivation [P6]............................................................................................................... 13
LO4 Examine the various environment for entrepreneurship.........................................15
Examine while using the relevant examples, how experience and background hinder the
entrepreneurship [P7].....................................................................................................15
Conclusion..................................................................................................................... 16
Reference list................................................................................................................. 17
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Introduction
Entrepreneurship is the main process in terms of designing as well as running a new
business. Within the organization, either big or small entrepreneurship is much
importance because it helps to create a social change as well as it helps to add
something to the new wealth. In the business areas, the entrepreneurs help to
recognise any kind of opportunities when there is any type of confusion or chaos. In a
small business, there is a requirement of managing every aspect of the areas. In this
study, it focuses on providing a brief idea regarding the various types of entrepreneurial
ventures as well as showing the difference and similarities between those ventures. In
addition to that, it provides an impact regarding the small business on their economic
system. In work areas, there is a need for human resource management which is
discussed in a brief way. There are some of the key aspects of entrepreneurial mindsets
those are discussed as well.
LO1 Illustrate and explore the various range of venture types
Examine the various types of entrepreneurial venture and explain
their relation with typology [P1]
In examining the different types of entrepreneurial ventures, it is necessary that the
different entrepreneurial ventures be identified. As per the view of Burrows (2015, p.65),
it has been evident that the four most common types of entrepreneurial ventures are the
small business entrepreneurship, the scalable start-up entrepreneurship, large company
entrepreneurship, and social entrepreneurship. In opening a small business it has been
evident that entrepreneurial endeavour and investment is highly desirable and essential
for the business to be successful. It would be essentially important for small companies
like Austin Fraser the entrepreneurial enthusiasm is high so that they are able to
gather investment and funds required for company operation.
1 Small business entrepreneurship - The small business entrepreneurship are mainly
the person those are running their business by own without any help. In addition to that,
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the small business entrepreneurship mainly hire the family or any local employees. In
the opinion of Chetty et al. (2014, p.820), most of the persons are not that much
profitable. In the typology of entrepreneurship, there is a requirement of having the
ability of profit-seeking for their own benefit. In both the public and corporate sector, the
small business entrepreneurship is needed to hire their local employees and run the
business my own.
2 Scalable start-up entrepreneurship - In the scalable entrepreneurship, they start a
company in which they know their main vision that is helpful for changing the world. As
per the view of Dana et al. (2016, p.615), the entrepreneur hire the best as well as the
brightest for their company. It is related with the typology of entrepreneurship because
there is a requirement of innovation for the new startup business in terms of attracting
the customer. In the private sector there is a lot of competition which is needed to be
tackled with the proper innovation of the business.
3 Large company entrepreneurship - The large companies mostly have the finite life
cycles. In the corporate sector there are various changes in terms of customer taste and
preference as well. As per the view of Drucker et al. (2014, p.55), in the large
companies the entrepreneurship are required to have huge innovation for selling their
products in the new markets. It is related with the typology of entrepreneurship by
showing the increasing their level of creativity for the benefit of the organisation. In the
corporate sector there is a requirement the large companies are required to have the
ability to innovation for getting the stable position. For example, the large company
entrepreneurship comes under the corporate sector where there are huge numbers of
competitions for getting the top position.
4 Social entrepreneurship - The social entrepreneurs are mainly focused on the
creation of the services as well as products that solves the social problems and needs .
As opined by Fayolle and Gailly (2015, p.90), it is related with the typology of
entrepreneurship in terms of being an inventor of creating a new service or products.
For example, the social entrepreneurs are mostly in related with the public sector
enterprise those are having an aim to change the world with their invention of new
services.
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5 Lifestyle entrepreneurship: A lifestyle business is a business set up and run by its
founders primarily with the aim of sustaining a particular level of income and no more; or to
provide a foundation from which to enjoy a particular lifestyle. It focuses on promotion of
products and services in respect to specific lifestyle. For example, premium clothing as per the
needs of market can be one of key aspect in regard to lifestyle entrepreneurship.
The four types of entrepreneurs have various types of scope and development as well
as their growth in the entrepreneurial ventures. The main aim is to be on the top of the
competitive market as well as to runs the business on their own. Their growth is mainly
dependent upon their innovations for the company in terms of achieving the goals.
Figure 1: Typology of entrepreneurship
(Source: Wach, 2014)
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Public ventures are considered as nonprofit and profit making organizations
which allows to have effective consideration of values. By having an appropriate
reference of public ventures the improvement in social values and community initiatives
can be taken into account. On the other side, the corporate ventures are focused
towards profit making policies only. They provide diverse products and services to
target customers in order to advance the values and profit.
Exploring the similarities and differences between the entrepreneurial
ventures [P2]
There are various differences and similarities between the four types of entrepreneurial
ventures.
Similarities
The main similarity between all the four entrepreneurial ventures is that they all have the
same aim to be on the top in the competitive market. As per the view of Fayolle (2013,
p.700), in any small business or large business, all the entrepreneur are required to
have an innovation for the benefit of the organisation. In addition to that, all the business
focuses upon to get the customers attracted towards their organisation for gaining a
position. The important similarity is that all of the entrepreneurship either big or small or
social has the ability to run their business on own as well as all of them is flexible.
Differences
The main difference between four entrepreneurships is that they do not get the equal
amount of profitability for their new business. In addition to that, they also have different
types of innovations which lead towards a differentiation from others. As asserted by
Goss (2015, p.100), there are various kinds of changes that take place in the
organisation that are required to take effective measures from the different
entrepreneurial ventures. Moreover, in the scalable startup entrepreneurship, they are
required to attract the investor in terms of venturing the capitalists. On the other hand,
other entrepreneurship is not having the same motive.
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LO2 Assessing the small business of the economy
Interpretation and assessing the relevant data and statistics in
illustrating the small and micro business [P3]
The small, large as well as the medium size enterprises are the main focal point in the
shaping enterprises of the policy. In addition to that, there is a big category as well as
encompass entrepreneurs that whos the various ownership structures as well as it
varies their number of employees with their different level of economic activity. As
opined by Huq et al. (2017, p.160), there are various turnovers for the medium, small as
well as micro with their persons employed, turnover along with their balance sheet.
Enterprise
category
Person employed Turnover Balance sheet
total
Small < 50 10 m 10 m
Medium < 250 50 m 43 m
Micro < 10 2 m 2 m
Table 1: Criteria for medium, micro and small enterprises
In the year 2016 in the UK, there was around 5.3 million micro businesses those are
accounting for around 96% of the overall business. In addition to that, there were
around 5.4 million SMEs in the year 2016 in the UK which was around 99% of the
overall business areas (Huq and et al. 2017). In the UK, vast of the majority in terms of
their business is much fewer than the 10 people whereas, this sort of business is only
accounted of around 32% in terms of employment and there are a 19% turnovers as
well. As opined by Karanja et al. (2013, p.150), there are large business sectors as well
as that of micro and small business sectors. In the large business sectors, there are
more than 250 employees those are mostly accounted for 0.1% of their business, on the
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other hand, 40% of their year elements, as well as there, are 53% of their turnover
(Karatas‐Ozkan and et al. 2014).
Figure 2: Share of enterprises in the UK
(Source: Karanja et al. 2013, p.150)
The small business owners are very much challenging as well as the small business
comes from various backgrounds. In addition to that, small business is sometimes
overshadowed by the large corporations. The micro business is also having an impact
on the economic aspects. As opined by Karatas‐Ozkan et al. (2014, p.590), the
performance of UK economy is the centralised upon the recent effects of the Brexit in
the UK. The small and micro business is mainly denoted as an engine are regarded as
the growth for a government as well as the citizen for the goods and their services those
are needed to grow for the benefit of an opening a branch (Karanja et al. 2013).
Explaining the importance of business start-up and small business
for social economy [P4]
In the social economy, there is a huge importance for the start-up business as well as
the small business.
Small business
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In a society, small business plays the huge role. The companies those are survived for
a long period of time are more economically stable for the oners as well as for their
families. As per the view of Nguyen et al. (2015, p.220), the small business is important
because it provides various options to the customers for buying their retail goods.
Moreover, in the year 2006, the small business employed around 50.2% of the UK
private workforce. Small business is much important in the social economy because
innovation is very much possible. Moreover, there is a huge growth in the workforce
regarding the small business. In addition to that, in the small business, the managers
are separating the line of works from the business growth.
Start-up business
The start-up business is been to have the modest number of employees for their social
economic importance. The start-up business is in need of innovation as well as they
have the idea for their new business. As per the view of Piperopoulo and Dimov (2015,
p.980), the growth is mainly generated by the ambitious entrepreneurs for generating
their business. The start-up business is important because they are the main driving
forces for the economic development as well as it increases their productivity.
Moreover, the start-up companies provide a huge portion in terms of contributing to their
countries economic growth.
The small business has an impact on the various levels of an economy that includes the
regional, national and local as well as on the international aspect. The small business in
the local areas has a huge impact because they work in their own locality which is much
helpful for the involved and making more profit. As asserted by Ratten (2014, p.270),
the small business contributes with the help of providing employment opportunities. In
the national aspects, the small business becomes much adaptive for any kind of
change. In the international aspect, the small business has various challenges in order
to compete with others. The socio-economics of a small business in international aspect
is not that high but still there is some growth of development.
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Figure 3: Business by region
(Source: Ratten 2014, p.270)
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LO3 Determining and assessing the key aspects
Determining the characteristics skills and traits of successful
entrepreneurs [P5]
There are some of the characteristics those making a difference from the other business
managers.
Tenacity - In order to run a business there are a lot of ultramarathons. As per Setianto
et al. (2016, p.85), the tenacity is an important trait that helps an entrepreneur to be
different from an organisational manager. The entrepreneur in order to run a business is
required to grip the motive for making the business successful.
Passion - A successful entrepreneur is required to have the passion to run their new
business with great enthusiasm for achieving the target. There are various opportunities
come in between while running a business thus, the entrepreneur is required to look
after those opportunities and make the business in the top position in the competitive
market.
Tolerance of ambiguity - The entrepreneur is to make sure that they have the ability to
stand against any kind of fear and give their potentiality for making the business
successful. As per Schaper et al. (2014, p.55), in the entrepreneurship, the ability to
control the fear is the most important trait which makes a differentiation from other
managers.
Self -belief - In order to be an entrepreneur the most important traits that help them to
be different from an organisation's manager is the self-belief. The self-belief is important
because the entrepreneurship is required to run a new business and there is the
requirement of delivering the positive outcome for a business. As opined by Sahut and
Peris-Ortiz (2014, p.665), the entrepreneur is required to be sure that the product is the
best thing which is provided to the customers.
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