Entrepreneurship and Small Business Management Assignment Activity 1

This assignment explores the multifaceted world of entrepreneurship, examining the core activities and the pivotal role entrepreneurs play in driving economic growth. It delves into the diverse landscape of entrepreneurial ventures, differentiating between small businesses, large companies, and social enterprises, highlighting their unique characteristics, objectives, and operational scales. The assignment further analyzes the similarities and differences among these ventures, providing a comparative understanding of their structures and purposes. A key component involves interpreting statistical data to illustrate the impact of micro and small businesses on the economy, emphasizing their contributions to employment, regional development, and national economic stability. The document underscores the significance of small businesses, showcasing their influence on local and national economies, and their role in fostering innovation and societal upliftment. Overall, the assignment offers a comprehensive overview of entrepreneurial principles and their practical applications in the business world.

Entrepreneurship
and Small
Business
Management

ACTIVITY 1
Entrepreneurship is related with a specific activity in which
single or a group of individual takes risks and builds their
venture for earning profit. These individuals are called as
entrepreneurs. In addition to this, these are the backbone of
economy in which they supports the nation in terms of
providing employment opportunities along with tax duties so
that wealth and economic development can be maintained
within the nation.

Activity 1
P1 Different types of entrepreneurial venture and their
relation to the typology of entrepreneurship
Entrepreneurs are the persons who are liable in order to
forming new business ventures for delivering goods and services
to the customers so that income or daily activities can be carried
out in easy manner. These ventures are setup by individuals with
different purposes and they perform their duties for these
purposes so that their pre-determined goals can be achieved in an
easy manner. Several kinds of ventures are present in market
whose goals, purposes, size and scope are different with each
other.
Entrepreneurial activity- Entrepreneurial activities can be
defined as the purpose of business in which the firm generates
their quantity through generating economical functions. These
actions are related with identification of new idea so their venture
gets achieved growth and success in market. These specific
thought are reborn by them into actuality through establishing
venture in market.
Different type of ventures
Small business: These speculation are formed on the
foundation of small size of employees, capital or operations in
which entrepreneurs invests their small amount of funds i.e. €1
million so as to earning profit or livelihood. Size and scope of these
speculation are small because they operate their ventures or
business in niche market. Examples of such businesses are grocery
shops, orion electrotech limited.
Large company: These business tasks operate their
business purpose at vast level due to which they have no liability
of adhering limits in their operations, functions or investments.
Presences of these firms are spread in more than one location due
to having large number of employees than the small or medium
sized ventures. Because of this, growth or sustainability of these
organisations are very high in market. Example of these ventures
are Vodafone which is a private firm whereas, NHS is a healthcare
organisation which is operated by Government and health
department of UK.
Social enterprises: These ventures are incorporated by
some specific individuals so that development and welfare of
society can be possible in an easy manner. These organisations are
also supported by the governments of nations because their
purpose is to uplifting standard of needy or poor people of society.
Example of these ventures is Oxfam or Save the children etc.
Types of entrepreneurial
venture
 Small-business
entrepreneurship
 Large company
entrepreneurship
 Social entrepreneurship

Social enterprises: These ventures are incorporated by some
specific individuals so that development and welfare of
society can be possible in an easy manner. these
organisations are also supported by the governments of
nations because their purpose is to uplifting standard of
needy or poor people of society. Example of these ventures is
Oxfam or Save the children etc.
Typologies of entrepreneurship
There are several kind of entrepreneurial ventures
which includes numerous kind of typologies. These ventures
also perform their functions so that they can survive in
marketplace. Some types of typologies are given as below:
Lifestyle Enterprise: These kinds of organisations are
incorporated in order to improving life standard of needy or
poor people of a specific area in which they are operating
their functions. These ventures are also termed as social
ventures who does not perform functions for earning money.
Growth firms: These kind of companies or ventures
are formed for earning profitability or revenue. Entrepreneurs
of these firms always try their innovative ideas so that
success can be attained in marketplace. These ideas are
generated by entrepreneurs so that customers can be attracted
towards their services which will automatically leads their
ventures towards growth and sustainability in market.
Venture of this kind performs their functions at small or large
level in market.
Typologies and entrepreneurial ventures are
interrelated with each other because they both performs
similar functions and satisfying the needs of customers.
Furthermore, these ventures also provide their contribution in
growth and development of nation.
P2 Similarities and differences between entrepreneurial
ventures
The similarities and difference between the
entrepreneurial ventures are as follows:
Differences
Basis Small business Large company Social
entrepreneurshi
p
Scale These ventures
are called small
business
because they
operates their
function at
small level
through
investing small
amount of
funds.
These business
functions
operates their
activities at
large level
because of
which wide
amount of funds
are needed for
operating
functions in
these kind of
business
organisations.
This firm
operates their
function at small
or big level so
that need of
needy people
can be satisfied.
Purpose Purpose of these
ventures is to
earn money so
that daily
activities can be
carried out in an
effective
manner.
These
organisations
are incorporated
with an aim of
earning large
amount of
money through
satisfying the
needs of
These
organisations
are formed for
raising standard
of needy
individuals.

Characteristics Small
amount of
resources
such as
human,
financial are
needed for
carrying out
the daily
activities.
Wide amount of
resources like
employees,
capital etc. is
required in these
organisations for
operating
functions.
Funds of these
organisations are
arranged by
government and
owners of
multinational firms
because they
operating their
functions for
uplifting the
standard of society.
Similarities
Basis Small business Large business Social enterprise
Meeting the
needs
These are formed
for satisfying the
needs of local
customers.
These
organisations are
formed for
satisfying needs of
local customers.
These
organisations are
also established for
satisfying the
wants of customers
but at large level.
These ventures
provide supports
to the needy
people so that
their needs get
satisfied.
Society
upliftment
These
organisations
provide job
opportunities to
the local
individuals as they
operates their
functions at local
level.
These
organisations
provide job
opportunities to
large number of
people so that their
daily functions can
be carried out
easily.
These types of
ventures are
formed for
satisfying the
needs of poor or
needy people of
nation.
P3 Interpretation of statistics for showing impact of micro
and small business on the economy
Business organisations play a supportive role in growth
and development of nation as they provide their maximum
efforts in form of tax duties to the government of nation so that
good infrastructure can be established within the country. These
business organisations along with their impact on the economy
of nation are briefly explained as below:
Small: 50 employees along with a 2 million start up
capital is required for establishing these kind of ventures. They
posses positive impact on the economy of nation at lower scale
as they operates their functions in a specific area of market.
Medium: These kind of organisations are formed with
an amount of 5 million pounds and their revenue figures are not
exceeded from 22 million pounds. Impact of these firms are
lower than large but high than small firms on the economy of
nation because they covers large area of market and provide job
opportunities to more number of individuals than the small
firms.
Large: These kind of organisations operates their
functions at huge level and having presence in more than one
location. Such firms also posses impact on the economy of
nation but higher level because they employs a large number of
people so as to carrying out the functions effectively.

Impact of SME on economy
Local impact: Micro and small business concern
organisations posses impact immediately on the local economy
as they perform their functions at niche level or a specific local
area of market. According to the analysis, these firms supply
job possibility to the national single of society so that they can
live their life without any difficulty.
(Source: The Role of Startups and Small Businesses in Today’s
Economy, 2018)
Regional impact: Small and medium organisations posses
impacts on the regional economy because they provide job
opportunities to the regional individuals so that unemployment
can be removed from regional level. These organisations also
impacts positively on the regional economy as they have
efficient and skilled employees who provide their maximum
contribution in wealth of organisation which indirectly
strengthen the regional economy.
National impact: Small and medium enterprises also
impacts on the national economy because their presence is very
high in UK and approx. 15 million people are employed by
these ventures which defines positive impacts of these firms on
the economic development of nation. These firms are
established on the basis of innovative ideas due to which they
can take growth in market at anytime. Through taking growth
these firms provide higher tax duties which will automatically
leads economic development throughout the nation.
P4 Importance of small businesses and business starts-ups
in growth of social economy
Small business ventures and start-ups plays a role of backbone
in any nation as they generates revenue figures and employment
opportunities for the nation and its citizens. Due to which these
ventures are also supported by the government in terms of subsidy or
start-up loans so that development can be done within the nation in an
easy manner. These firms not only provide job opportunities to the
citizens of nation but also raise their living standard so that they can
earn their livelihood for living their life easily. In UK, ample numbers of
small business organizations are operating due to which economic
stability of nation is maintained throughout the world. Importance of
these organisations in economic growth of nation is given as below:
Illustration 1: Role of Start-ups and Small Businesses

Job creation: Both small businesses and start-ups plays
very important role in generation of employment opportunities
that automatically assists the organisation in increasing its
productivity and profitability. These firms also provide training
to the local individuals so that they can become efficient and
provide new ideas for growth and success of organisation.
These employment opportunities and trainings not only supports
the small business and start-ups in raising their profitability but
also builds their sustainability in marketplace.
Improve living standard: Start ups and small business
ventures are very important for the nation as they support the
societal individuals in raising their living standard through
providing them quality products at affordable prices. This will
not only fulfils the demand of local or national citizens but also
raises their standard of living.
Economic growth: Small and start-up administration
show very significant role in economic growth of nation
because they creates employment opportunities for the local
individuals which automatically raises per capital income
figures throughout the nation. Along with it, they also uses less
natural resources such as fuel, energy etc. that defines their
contribution in economic growth of nation.
From the above discussed significance of start-ups and
small businesses, it can be said that presence of these ventures
are very useful within the nation as they not only supply
employment possibility for the citizens of country but also
provide supports in the economic development of nation by paid
tax responsibility on time.
REFERENCES
Books and Journals
Acs, Z.J., and et. al., 2017. The lineages of the entrepreneurial
ecosystem approach. Small Business EconFranck2012omics.
49(1). pp.1-10.
Collewaert, V., 2012. Angel investors’ and entrepreneurs’
intentions to exit their ventures: A conflict perspective.
Entrepreneurship Theory and Practice. 36(4). pp.753-779.
Franck, A.K., 2012. Factors motivating women's informal
micro-entrepreneurship: Experiences from Penang,
Malaysia. International Journal of Gender and
Entrepreneurship. 4(1). pp.65-78.
Online
Business statistics. 2019. [Online]. Available through:<
https://researchbriefings.parliament.uk/ResearchBriefing/Summary/SN06152
>.