Entrepreneurship & Small Business: Venture Typology & Economic Impact

This report examines entrepreneurial ventures and their typology, highlighting similarities and differences between various ventures like small businesses, scalable startups, large-scale enterprises, and social enterprises. It analyzes the impact of micro and small businesses on the economy, emphasizing their importance in fostering social economic growth. The report also identifies key characteristics and skills that differentiate successful entrepreneurs from typical business managers, exploring how their backgrounds, experiences, motivation, and mindset contribute to their entrepreneurial success. This comprehensive analysis provides insights into the dynamics of entrepreneurship and its role in economic and social development.

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION.......................................................................................................................3
LO 1 ............................................................................................................................................3
P 1 Entrepreneurial ventures and typology of entrepreneurship.......................................3
P 2 Similarities and differences between entrepreneurial ventures....................................4
LO 2.............................................................................................................................................6
P 3 Impact of micro and small businesses on the economy...............................................6
P 4 Importance of businesses who operates on small scale and business start-ups to the
growth of the social economy.............................................................................................7
LO 3.............................................................................................................................................9
P 5 Characteristic traits and skills of successful entrepreneurs that makes them different
from other business managers............................................................................................9
P 6 Aspects of the personality of entrepreneurs reflect entrepreneurial motivation and mind-
set......................................................................................................................................10
LO 4...........................................................................................................................................11
P 7 Background and experience can hinder or foster entrepreneurship...........................11
CONCLUSION..........................................................................................................................12
REFERENCES..........................................................................................................................14

INTRODUCTION
Entrepreneurship is considered as designing, launching and running a new business, which is
often initially a small business. businesses created by the people are called entrepreneurs.
Small business management is a process entrepreneurs use when running
their business operations. Entrepreneurs may need to understand how to manage employees,
accurately report financial information, acquire economic resources or business assets, and
make various business decisions. This report covers issues such as entrepreneurial ventures
and their typology, similarities and differences between entrepreneurial ventures, impact of
micro and small business on the economy, importance of small business and start ups to the
growth of the social economy, traits and skills of entrepreneurs that helps them to differentiate
from managers of the company, background and experience of entrepreneurs and how
entrepreneurs stay motivated and how their mind set is different.
LO 1
P 1 Entrepreneurial ventures and typology of entrepreneurship.
Entrepreneurial ventures is focused on providing services related to advises and
suggestions to start ups and companies who are operating as mid stage. Role of ventures are
different and it changes according to the stage of the company.
Small Business Entrepreneurship-
Majority of the companies dealing in the market are operating on a small scale.
According to facts and figures around 80 per cent of the companies are working and maintain
their operations on the level of small enterprise but even then they are the ones who are
providing employment approximately to 50 per cent of the individuals who are dealing in the
sector of private sector. Employees hired in these companies are on the scale of around 1 to 5
people. These companies are not able to gain the attention of venture capital as they maintain
their operations on a small scale. For starting or commencing their operations they take helps
from their family, friends or ask for personal loans from banks. Usually people who are
consultants, carpenters, hairstylists, plumbers etc. starts businesses on these scale. These
businesses are started up on a low scale of investment (Campos and et.al., 2017)
Scalable start up Entrepreneurship-
When an entrepreneur is fully aware of the forces of market and has gained confidence
through their skills which make them believe that their vision can help bring change in the

market. These type of entrepreneurship is known as scalable start up. These type of businesses
approach venture capitalists in order to raise capital for maintaining the operations. It also
helps them to employ efficient and skilled employees to work with. Entrepreneurs first find
out the nature of the business then they take the use of the capital which they raised it through
venture capitalists. There is high involvement of risk in the company and the return on
investment is also not predictable. This is the reason why there are not much companies who
are operating in this sector. For instance companies such as Snapchat, whats app, Facebook
etc. which are maintained their operations successfully online are included into this sector.
Entrepreneurial ventures such as these is linked with the typology which is same that is
scalable typology. Motive of these ventures is to get repeated sales. These companies focuses
on stealing the share in the market of different companies by bringing innovation
Large Scale Entrepreneurship-
Companies operating on a large scale such as Samsung, Microsoft, Apple comes into
this scale of operations. These companies launch new products with new innovation.
Companies such as these focus on achieving growth in aggressive way by using every
available resources with them which can lead them to achieve the goal. They deal with more
no of operations and handle more clients. Also in order to maintain their operations they
require more employees. (Dunne, et.al., 2016). these type of entrepreneurship is characterized
on the basis of their dealings and clients. The scale in which they operate involves a huge risk.
The volume in which the business communicates helps to determine the nature of the
entrepreneurship. For instance- Uber, google, Amazon etc. are the ideas of large scale
entrepreneurship
Social Entrepreneurship-
These type of entrepreneurs takes initiatives for helping and providing benefits to the
welfare of the people. They work and focus on making those products which can help people
who are underprivileged. Their motive is to work for the benefit of society not to maximize
their profits. Typology of social entrepreneurs is linked with these entrepreneurs as they are
stable in making decisions, creative and have the qualities to achieve the goal. This type of
step is taken by companies who are operating as start ups so that they can develop and
contribute more to the social factors for the betterment of environment.(Gelaidan and
Abdullateef, 2017) These type of entrepreneurs use the profits generated by the activities for

the welfare of the society. For instance- students who are in college can form a group to create
an organization related to this aspect and encourage people with the aim of reducing the waste
and protect the environment which will make a contribution for the benefit of environment.
P 2 Similarities and differences between entrepreneurial ventures
Similarities Small Large enterprise Social enterprise
Innovation or unique
idea
High Risk
Usually small
companies has less
unique attributes but
they are bringing
more innovative ideas
as compared to the
companies who
operate on a large
scale.
If the company is not
able to generate
enough profits and
bring an idea which
can help them to
sustain in the market
as if they don't then
they it is a risk for
them as any
competitor can take
over their operations.
The ownership
Companies who
operate on a large
scale also needs to
bring innovation on a
continuous basis so
that they can survive
in the market and
achieve growth.
Companies operating
on a large scale
involves a high risk as
any mistake or error in
their work which
decreases the level of
satisfaction to the
consumers. This
involves a huge risk as
company may loose
their share of profits
or their position in the
market.
Companies who
operate in the social
sector also bring
innovative and unique
ideas to conduct more
charitable events and
get more donation.
Companies who
operate as a social
enterprise also has to
deal with a lot of risk.
If they are not able to
get the donations or
host a charitable event
which attracts people
to contribute a part of
their income. If they
are not able to get the
donations then they
won't be abel to work
successfully for the
welfare of the people.
The structure of social

Ownership structure structure varies
according to the form
of the structure as sole
properties requires
only one person.
Partnership requires
two or more people
etc.
Companies who
operates on a large
scale has different
types of structure
according to the
nature of the business
such as divisional,
functional, geographic
and the matrix. Many
of the companies uses
a structure which is
hybrid as it allows
them to apply a
combination of
different models into
one strategy.
companies is totally
based on the
participation or
voluntary entry by the
groups of stakeholders
such as community,
clients, users etc. or
by the trustees of the
company. Profits of
the company are
distributed and shared
to their stakeholders
with the aim of using
it for the welfare of
the community.
Differences Small enterprise Large enterprise Social enterprise
No of employees Companies which
maintains their
operations on a small
Companies which are
operating on a large
scale sector employs
Companies dealing as
social enterprise has
no fixed employees as

Objectives
Size
Profit
scale employs people
from 10 to 250
people. It depends on
the nature of the
business.
Main motive of these
companies is to earn
profits and sustain the
market so that they
can serve for a long
period of time.
These type of
companies operate on
small or medium
scale. For instance
they cover their
operations in London.
Companies operating
on a small scale
generates small
amount of profits.
more than 250 people
as it is required to
maintain the
operations.
Objectives of these
types of companies is
to earn high profits,
increase their share in
market, achieve
growth and enter into
untapped markets.
These type of
companies operates on
a large scale.
(Hechavarria, D., and
et.al., 2019) for
instance they maintain
their operations in the
country and the
overseas market such
as UK or in other
countries.
Companies operating
on a large scale
generates huge
amount of profits as it
they work with a team
who has voluntarily
choose to contribute
for the welfare of the
people.
Main motive of these
type of companies is
to earn for the welfare
of the people.
These type of
companies mostly
operate on a small
scale. For instance
these type of
companies maintains
their operations for a
specific area or town
such as Hertfordshire.
Profits earned by
these type of
companies are not too
less and not too large.

is required so that they
can achieve growth
and maintain their
operations.
Differences in different organization
Criteria Small Large Social
No of employees Small companies hire
people less than 100
workers
These firms hire
more than 1000
employees
Social firms have no
limitation for
employees because
people are engaged
on volunteer bases.
Profit These firms generate
less than 56 GBP
profit (median profit)
Hilton hotel is big
firm that has
generated 8.91 billion
profit in the year
2019
Red cross is working
as social firm and in
the year 2018 it has
generated 243.3
million profit.
Objective Their main agenda is
to sustain in market
for longer duration.
They work for
expansion and
becoming market
leaders
These firms have aim
to work for social
welfare and improve
life of people.
Size Small firms are
limited to local area
only hence operates
in limited locations
only.
Hilton hotel is
operating in 5757
locations and its
operating income in
2019 was 1.43
billion. It has around
169000 employees.
Red cross has 32500
volunteers those who
are working globally.
It has employed 3500
staff members.
Similarities

Small Large Social
Innovation and
having unique ideas
Small companies find
new ideas to generate
more sales.
Large companies
implement innovative
ideas so that profit
can be raised and
customers are
attracted.
These firms also find
out new ideas and
implement innovative
ideas so that better
services can be
provided to large
audience.
High risk Small companies are
on high financial risk
because if people do
not take interest in its
products then firm
may face huge loss.
These firm also face
risk of competition
hence they are also in
high risk situation.
Social firms may fail
to serve the needed
person on time hence
these are on high risk,
sometimes they do
not get fund to
manage operations.
Ownership structure Small companies’
owner are responsible
for all decisions and
liabilities.
In large firm
ownership structure
is handled by board
of directors but there
also if company face
loss then owner has
to face problems.
Social firms also
have ownership
structure where NGO
provide funds but
decisions are taken
by particular
authority only.
LO 2
P 3 Impact of micro and small businesses on the economy.
Micro Business and Small business-
Impact on Economy
Small business are those business who employs and work with more than 12 people and the
minimum capital required to start them is more than € 30,000 to 40,000 then it will be
considered as small business. Micro business are those which can be commenced in less than €
30,000 as the required capital then it is a micro business. Also if the owner of the company is

working as a sole trader with no employees or with less than 6 employees then also it will be
considered as micro business. Currently the economy of the country is below the level due to
Brexit which is the reason that the government is forcing an immense pressure on the
company so that they can help the economy to achieve growth, Different scale of business
contributes differently as it depends on the sector they are dealing in, the growth in the
economy etc (Burkman, Garrett and Posner, 2019). Many of the companies are deciding to
expand their operations which will help them to create more opportunities and contribute to
the economy. Inflation in the economy will reduce the disposable income in the households
which limits the spending power of people. Mostly these leave a impact on the companies
which operates on a low level of scale. (Karabulut, 2016) Businesses who deal in the line of
export and import has to keep factors in mind such as economy and currency exchange rate of
the country. There is a major role played by small and micro organizations in the economy of
UK. In Uk there are total 1155385 micro sized organizations are in UK. These organizations
are providing employment to 4206000 people in UK. The complete turnover of these business
is around 595013 Millions Euros. There are total 211295 small enterprises are their which are
providing employment to 4117000 people in UK. Total turnover of These organizations is
around 629163 Million Euros (UK SME Data, Stats & Charts, 2020). This is major part in the
Economy of Unites Kingdom. This is how the role of Small and micro organization is huge in
economy of UK
Contribution in terms of taxes
Contribution made by both micro and small business is around € 1.5 trillion and it was
approximately 50 per cent of total contribution of the private sector. The basic rate for a
business which operates on this scale is 20 per cent and it differs according to the variation in
the profit that the company earns.
Contribution in reducing unemployment
They have increased the rate of employment as compared to the companies who are operating
on a large scale. the rate of employment has been growing because of micro and small
business as they are employing over 50 per cent of people working in the private sector as
compared to the companies who are operating on a large scale. Over 16 million people has
been employed by both categories of companies which is 58 per cent of the employment
opportunities provided by the private sector. This is one of the reasons that they have been

successful in creating so many job opportunities for the people of the country. It helps to
know that micro and small business has helped them to achieve growth.
Bringing innovation
Mostly they are contributing in the economy by bringing innovation in the market. On top of
that the government of the country is also funding a hefty amount in the department of
research and development which is more than € 700 million . This will help these companies
to bring more innovation into the market which will help the economy to grow (Laukkanen
and Tornikoski, 2018)

P 4 Importance of businesses who operates on small scale and business start-ups to the growth
of the social economy
Mutuals, foundations, charities and associations are considered at a national level but it does
not help the companies who deals in social economy to compete in an effective manner
against the provision of goods and services.
Importance of Start Ups on growth of social economy
These companies require people to take their services and make them reach it to
potential customers which helps in reducing the level of unemployment in the country. This is
considered as beneficial for the people as well as the economy as it will help to bring growth
in the economy (Mallett and Wapshott, 2020). Many of the entrepreneurs raise capital either
with their money or raise capital with the help of investors. It is when the business will grow it
will help the economy to grow as the money shared is with society which is beneficial for the
economy (Masurel and Masurel, 2019). Start ups helps to increase the level of innovation
with that it brings new technologies into the market which will automatically improve the
standard of living. Apart from this many of the business who has recently commenced their
operations is focusing on working for the welfare of people in rural areas. GDP is the aspect
which is necessary when it comes to enhancing the growth of the economy. If more start ups
are supported then UK will be increase the amount of cash flow in the country and become the
fastest growing country (Niemann, Kotzé and Mannya, 2018).
Importance of Small Business on growth of social economy-
Companies who employs approximately 500 people are turned out as small business. It
is these type of companies who are helping to reduce the level of employment. According to
sources these companies employs 60 per cent of population of UK. If they are not able to
maintain their operations then many people will loose their jobs which will strike the economy
in a negative manner (Proksch, Stranz and Pinkwart, 2018). Businesses operating on small
scale are in touch with the customers which helps them to know what type of products they
want and this help them to try out new ways and methods to effectively deliver products which
keeps the customer satisfied. It is because of the small businesses local economies is able to
function. They helps the community to benefit from that as they create more opportunities of
job which helps them to increase their level of income ( Ruiz-Arroyo and et.al., 2017). They
deals with customers on a day to day basis which helps them to adapt according to the needs