Entrepreneurship and Small Business Management Impact on Economy

This report provides a comprehensive overview of entrepreneurship and small business management. It defines key terms like entrepreneur, entrepreneurship, and entrepreneurial venture, and explores different types of entrepreneurship, including survival firms, lifestyle firms, and aggressive growth firms. The report examines the scope, development, and growth of entrepreneurial ventures, assessing their impact on the economy, particularly in the UK. It analyzes the characteristics, traits, and skills of successful entrepreneurs, differentiating them from business managers, and explores the influence of background and experience on entrepreneurial success. The report highlights the importance of small businesses in social and economic growth, including their contributions to job creation, innovation, and adaptability. Relevant statistics and data are presented to demonstrate the impact of micro and small businesses on the economy. Overall, the report emphasizes the vital role of entrepreneurship in driving economic growth and social development.

Entrepreneurship and
Small Business
Management

Executive Summary
The study is conducted to determine the entrepreneurship and small business
management and explanation to various types of entrepreneurship along with its impact on small
business in the economy. Evaluating key aspects on entrepreneurial mindset and examining
various environments which are helpful in hindering entrepreneurship. This shows that
entrepreneur plays a major role in the economy and successfully contributes towards the growth
of the country.

Table of Contents
Executive Summary ........................................................................................................................2
INTRODUCTION...........................................................................................................................5
Entrepreneur...........................................................................................................................5
Entrepreneurship.....................................................................................................................5
Entrepreneurial venture..........................................................................................................5
Enterprise................................................................................................................................6
Different types of entrepreneurship........................................................................................6
Different typologies of entrepreneurship - ...........................................................................6
Examining the scope, development as well as growth of various entrepreneurial ventures -7
Similarities and difference between different entrepreneurial ventures -..............................7
Assessment of the various relevant statistics as well as data for demonstrating different ways
through which micro as well as small businesses impacting on the economy -.....................8
Importance of different small businesses in growth of the social economy - .......................9
Examining different ways by which small businesses can have impact on different stages of
economy in regional, global, national and international context - ......................................10
Accessing the differences made by small, medium and large businesses in the UK's economy -
..............................................................................................................................................11
Accessing various range of entrepreneurial ventures for demonstrating understanding of
entrepreneurship in both corporate and public sector -........................................................11
Determining the characteristics, traits and skills of successful entrepreneur which is different
from other business managers - ...........................................................................................12
Difference between characteristic traits, skills and motivational drivers which are helpful for
successful entrepreneur and manager - ................................................................................13
Different line arguments related to characteristic of an entrepreneur - ...............................14
The different aspects of entrepreneurial personality which reflects entrepreneurial motivation
and mind-set - ......................................................................................................................14

Examining background and experience which can hinder entrepreneurship - ....................15
Example of entrepreneurs and their background -...............................................................15
Evaluating various ways background and experience directly influence entrepreneurship both
positively and negatively by comparing and contrasting -...................................................16
CONCLUSION..............................................................................................................................16
REFRENCES.................................................................................................................................17

INTRODUCTION
Entrepreneurship is the heart of every business. Every big company started by any person
turned out to be successful because if the entrepreneur. Our economy became more powerful and
stable because of the highly skilled and hard-working employees if the companies. This has also
helped a lot in the removal of poverty and bought prosperity in the economic conditions of our
country. Entrepreneurial skills are always in demand by the both high profiled and low profiled
company. Every company wants to make their profit, and they need highly qualified
entrepreneurs for their company. Entrepreneurial skills are always in demand, and they are must
for the survival of any business.
In this report we have covered the points which are the part of entrepreneurship and small
businesses. The topics on which we have focused are explaining the entrepreneurship
thoroughly. The types of entrepreneurship have been discussed and why are they necessary in the
organization. After that different kinds of firms like survival firms, life style firms, managed
growth firms and aggressive growth firms has been discussed.
Entrepreneur
An entrepreneur can be an individual body who can bring businesses for any firm or
industry, and they can also create loss for the company. The entrepreneur takes all the risk and
responsibilities of the firm and is responsible for the success and failure if the firm.
Entrepreneurship
It is the process of designing the way in which the entrepreneur will work and make the
profit for the company. In this the launching of new products and services are included. The
loses made in company like economic crises, lack of funding and bad business decisions are
included in it(Acs, Z.J and et.al., 2018).
Entrepreneurial venture
It focuses on providing advisory and supervisor's advice to the company. They provide
advisory services to the early and mid – staged companies. They also help the companies who
are facing trouble in handling of the business. Bringing the best solution for the companies.

Enterprise
It is an business or a company who will take all the difficult and important decision of the
which help in earning the money. There are two kinds of enterprise. First is private enterprise
and other is commercial enterprise.
Different types of entrepreneurship
There are 9 types of entrepreneurship, and they are administrative, Opportunistic, Acquisitive ,
Incubation, Imitative, Private, Public, Individual and Mass. All these plays equal roles in the
entrepreneur life.
Small Businesses Entrepreneurship
It is a person or a company which have very small business and have a very small amount
of staff. Their customers are also very limited, and they do business with a less amount of
capital(Barringer, B.R., 2015).
Scalable Start Up Entrepreneurship
It takes an innovative idea, scalable and repeatable businesses model which will turn the
high growth and profit to the company.
Large Company Entrepreneurship
It generally refers to generation of new ideas and innovation for the large scale and
established company. It helps in improvement of the organization.
Social Entrepreneurship
Social entrepreneurship refers to the approach started by the enterprenurs in doing the
benefits for the social, cultural and environment.
Different typologies of entrepreneurship -
Survival Firms
It refers to the cost-cutting, laying off of employees, reinvest the profits and proving lots
of work to the employees. This happens when a form is facing losses and there are chances of
shutting down of the company. By doing all this a company manages to survive in the market.
Life Style Firms
These are those ventures which provides only a reasonable living for their founders rather
than the incurring the risk that comes with prospect of high growth.
Managed Growth Firm

It includes the planning of the growth of business. The employees making the strategies
that when and where the company is having the opportunity to grow their business. The growth
of the business can be done only if the company is financially stable and their products are in
demand(Burns, P., 2016).
Aggressive Growth Firm
In this the company grows because of the excess of funds and capital in the company. If
the company is earning good in share markets and stock markets then we can say that the
company is having aggressive growth.
Examining the scope, development as well as growth of various entrepreneurial ventures -
The mission, vision as well as objectives of the various entrepreneurial ventures are
different which can directly influence the scope of that organizations. If an enterprise develop the
products which meets the needs and demands of the consumers then it can be successful and run
for long term. The various entrepreneurial ventures should emphasize on development of the
enterprise by getting through several investments and developing various plans to form their
products and service according to the current trend in the market. To develop an effective
structure of organization it is necessary to enhance communication among different departments
for running the business activities regularly. The growth & development of various
entrepreneurial ventures is directly impacted by providing quality products as well as services,
and how effectively they can fulfill the needs and demands of their customers, pricing as well as
sustainable strategies(Dana, L.P., 2018).
Similarities and difference between different entrepreneurial ventures -
Factors Small business
entrepreneurship
Scalable startups
entrepreneurship
Large company
entrepreneurship
Social
entrepreneurship
Goals
along with
objectives
These types of
organizations dose
mot have any
specified structure
and objective. They
work on gaining less
profit and growth.
The main aim of
such businesses is
to constantly
provide innovative
products and
achieve the huge
profitability for
their investors.
These type of
organizations
sustain in market
by developing
new products and
services and
different
marketing
These
organizations
provide the quality
products and
services for
making world the
better place.

strategies.
Risks There is low risk
associated in such
business but the
competition is high
with same
organizations of
these types.
Due to high
amount of
financial
investment and
pressure of
returning the high
amount to their
investors by
gaining high sales
volume the risk
associated with
this are high.
The risk under this
type of
organizations are
medium as large
businesses can
easily manage
their sales volume
as they have their
own brand value
in the
marketplace.
Low risk is
associated with this
type of
organization as this
business can get
support from
public and
government
because of their
vision.
Employee
number
Employees in these
types of organization
are not more than 50.
It totally depends
on the size and
structure of the
organization.
Number of
employees can be
more than 1000.
It depends on the
size of
organization.
Structure There is no proper
structure of
organization and can
often run with
partnership or sole
proprietorship.
These are mainly
corporation or
limited
partnership(Doern,
R., 2016).
The organization
structure of these
business can be
complex and can
be private limited
or public limited
company.
They are mostly
trustee based
organizations.
Assessment of the various relevant statistics as well as data for demonstrating different
ways through which micro as well as small businesses impacting on the economy -
The micro as well as small business acquire a high part and high contributes within the
economy of the country. The large number of micro along with small businesses are raising over

the time which are successfully generating high revenues by rendering different products and
services to their customers.
In the UK, there are increasing number of small businesses in numerous industry and
there are about 4.5 million SMEs which are established within the United Kingdom, that is about
99% of total businesses in the UK. Hence, the revenue which is generated by the businesses
have comparatively high contribution to the UK's GDP. Among all the businesses, 96% are
regarded as micro business which employs more than 0-9 people in their organization. 22% of
total turnover and 33% of employment are provided by those businesses. Based on the graph, the
total number of micro and small businesses in UK is higher than large and medium business in
UK. Small as well as micro businesses yearly earns the turnover of 37% and provides the 48% of
employ-ability within the United Kingdom.
The small as well as micro businesses can be classified as innovator, non-innovators, non-
exporter as well as exporter. Revenue generates by these businesses can be with innovation or
without innovation or many of these export products as well as in return get foreign currencies
and thus they highly contribute to the UK's economy.
Importance of small businesses and start-ups in the growth of social economy-
Social economy – Social economy is established by rich diversity of organization and
enterprises, which can be mutual, associations, cooperatives, foundations, paritarian institution
and social enterprises across nationally or internationally. Many of the social economy
organization simply render services to their members or others, and they aim to deliver service
without taking part in the market activity.
Importance of different small businesses in growth of the social economy -
Small businesses plays a vital role in development of social economy and along with they
also support in creating various job opportunities. The major factors which are helpful in
assisting the growth of economy are innovation, adaptability and employment opportunities.
Small businesses which are innovative and creative have a huge rate of growth in various areas
that can be innovation of product and process(Ferreira, Fernandes and Ratten, 2017). There are
also called as seedbed for the new creations. Some importance of small businesses are as follows
-
Contribution –

Small business have a high contribution within country's social growth. As it directly
contributes to the employment rate which will raise spending potential of the individual and thus
they can maintain the standard of life by accomplishing their esteem needs as well as basic
needs. Small businesses introduce new strategy and new technology in market to improve their
business more in the high competitive environment by using the low budgets. This directly
reduces cost of organization and more earning is gathered as society is benefited by this with
higher income as well as new products which serve the social lives of individuals. They are
directly connected and contribute to the society. The new product having innovative strategy
raises sales by 10% and also increases employment rate hike by 0.7% in country.
Employment –
The small businesses highly contribute in the employment of workers of society. Overall
society earns profitability by those small ventures and directly contributes in raising employment
ratio in the country. In 1998 to 2010 UK government reported that small businesses are involved
in hiking the job opportunities for social people by the large extent which that is approximately
870,000 jobs out of 2.61 million of total jobs are created in the country by small businesses in
that time period.
Economic Growth –
Small businesses highly contributes in economic growth of the society along with growth
in their business as well. The business profitability is increased by supplying raw material from
their suppliers and that will contribute higher supply and production of products and services
effectively to the customers. Ultimately, this cycle contributes in the overall development of
suppliers, distributors, vendors, competitors economically along with growth of small business
by itself(Frederick, O'Connor and Kuratko,2018).
Examining different ways by which small businesses can have impact on different stages of
economy in regional, global, national and international context -
In UK small businesses have a diverse impact on the economy of country at various
levels. In regional level, small businesses can easily compete with similar type of businesses by
delivering quality products and services to the customers, which can be helpful in effectively
meeting the needs and demands of their consumers. Due to lack of finance they used to hire
people for fewer salaries and lesser skilled individuals are employed, which reduces
unemployment in the country. In national level, organization can explore through various areas

in country and increase the revenue which enables them to pay higher tax in the development of
the country. Which somehow a contribution in the development and enhancement of the country.
In global and international level, mostly small organization export their products and services
and set their branches in various countries and business across world. Thus, they earn foreign
currencies by dealing with the foreign contributes and this will directly helpful in the
contribution to the country's economy which will be used for the growth and development of the
economy(Hatten, 2015).
Accessing the differences made by small, medium and large businesses in the UK's
economy -
There are high number of small businesses in United Kingdom as compared to large
organization. Small and medium-sized businesses gains a large part of each industry and highly
contributes in the economy of UK. However, high revenue is earned by the large businesses by
delivering high quality products and services to their customers because of their brand value
within the market. Most of the large businesses which are established in various countries helpful
in earning the foreign currencies so that they can contribute in the economy of UK. The high
number of individual are employed by the larger businesses as they contain multiple operational
activities as compared to other organization. They also contribute high amount of fund in CSR of
the country. Whereas small and medium-sized businesses mainly focus on providing innovative
products and services to their customers. Gaining attraction of the customers and enhancing the
growth of the businesses. These businesses export high volume and high number of candidates
are employed thus it reduced the unemployment rate in the country(Kirzner,2015).
Figure 1 Impact on economy

(Source: Affect on economy. 2016.)
Accessing various range of entrepreneurial ventures for demonstrating understanding of
entrepreneurship in both corporate and public sector -
In Corporate sector – They are the organization which are privately run-ed and owned
by individuals. The different marketing strategies are formed by this organization to render high
quality products and services to their customers which is done for enhancing profitability and
durability of the organization for long term. The organization which are associated with
corporate sectors are large organization, scalable entrepreneurship ventures which mainly
focuses on sustainable development by focusing on competitors and developing strategies
accordingly(Kuratko, 2016).
In Public sector – This sector organizations are controlled directly and indirectly by
government. The higher amount of fund is invested by government on these organizations. These
types of organization can be established in different sectors and renders quality products and
services to their customers. They mainly emphasis on social welfare and development rather than
profitability.
Determining the characteristics, traits and skills of successful entrepreneur which is
different from other business managers -
Characteristic and skills of entrepreneur -
It is very necessary for an entrepreneur to have a right attitude towards the enterprise and
working for attaining success while establishing new ventures. With the help of strong desire
they can step forward towards success. Entrepreneur has an ability to overcome all obstacles and
have a strong desire to succeed(Read and et.al., 2016).
For becoming a successful entrepreneur certain characteristic are required which are as
follows-
Passion – To become successful in the new venture it is necessary to determine different ways.
If an entrepreneur is passionate about his work and success then easily overcome problems and
assist for achieving success.
Learning – Quality of learning constantly should adopt by entrepreneur. Organizational
objective can be achieved by remaining sharp by learning continuously.