Entrepreneurship: Impact of Small Businesses on the Economy

This essay provides a comprehensive analysis of entrepreneurship and small business management, examining different types of entrepreneurial ventures and their relationship to the typology of entrepreneurship. It explores the similarities and differences between entrepreneurial businesses, critically examines their scope, growth, and development, and interprets relevant data and statistics to explain the impact of small and micro businesses on the economy. The essay also justifies the value of small ventures and business start-ups to the growth of the social economy and critically examines how small businesses impact the economy at local, national, regional, and international levels, highlighting their role in job creation, innovation, and economic development.

UNIT 9: ENTREPRENEURSHIP AND
SMALL BUSINESS MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Explaining types of entrepreneurial ventures and how they relate to typology of
entrepreneurship..........................................................................................................................3
Exploring the similarities & differences between entrepreneurial businesses............................4
Critically examine scope, growth & development of entrepreneurial ventures..........................6
Interpreter relevant data and statistics to explain how small and micro businesses impact on
economy......................................................................................................................................6
Justifying value of small ventures and business start-up to growth of social economy.............8
Critically examine how small businesses have an impact on varied level of economy in a
local. National, regional, and international context....................................................................8
TASK 2............................................................................................................................................9
Covered in PPT...........................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Entrepreneurship is one of those activities that made individual person capable to
manager small venture and practices related to it, in effective and excellent way. This activity
enable them to establish a company and efforts to manage existing in appropriate manner, by
taking right decisions. The current assignment will justify varied types of entrepreneurial
ventures and their interrelation with type of typology of entrepreneurship. It will define the
similarities and differences between entrepreneurial ventures and their scope, development as
well as growth. The study will define how micro and small businesses impact on economy and
significance of start-up venture and SME's to growth of social economy.
TASK 1
Explaining types of entrepreneurial ventures and how they relate to typology of entrepreneurship
There are different forms of companies as an entrepreneurial business accessible in this
world and these are;
Established companies-
Those firms that has already established their brand image in market in excellent manner
may included in this category of entrepreneurial venture type, for example TESCO. As a well-
established company, it operates in retail industry as private and public organization (Webster,
2019).
Small size social venture-
A firm that conduct their activities to provide benefits to economy and other people by
offering or providing their services according to needs, without taking high charges on each, may
covers under category of small size social businesses (Scheidgen, 2021). For example, Funeral
care is one of these who take initiative to arrange funeral activity of individual person, especially
those who do not have family and friends.
Large size social companies-
Just like small size, large social organizations as a type of entrepreneurial venture may
also contribute to improve the health of local people and support other in similar way. For
instance, National Health Service (NHS) help to protect people from harmful diseases by
providing directions and services related to health care.
High growth organizations-

These kinds of companies may grow even better than other categories of entrepreneurial
ventures in term of investment that they do and profits that these firms may enjoy. For example,
Facebook is one of those high progress firms in competitive world that help people to connect
with each other.
Typology of entrepreneurial venture-
Survival companies-
Small size social firms may relate to this type of typology because these may face several
challenges to run their venture at small level, such as Funeral care do to sustain for long in
market by offering appropriate services and products to local people.
Managed growth enterprises-
TESCO is managed progress companies in retail industry because it effectively manages
its growth and success in market by taking initiative to improve products quality and enlarge
their category. It efforts to consider needs of target market and offer everything accordingly.
Social enterprise-
NHS include in list of social companies because it efforts to provide social services in
term of medicines, health care treatments to individual patient just for sake of their well-being.
Aggressive growth firms-
Facebook is highly aggressive brand as it continually obtain success and excellent growth
in corporate world.
Exploring the similarities & differences between entrepreneurial businesses
There are several points may in the context of entrepreneurial ventures that define
similarities between each for example;
Strong willed entrepreneur-
Whether it is small or large social entrepreneur, they may have strong power and
capability that individual utilizes to run and manage current business activities in excellent way.
Medium, big and small companies' owner may use their power to gain profit, which is quite
beneficial for them as well as their stakeholders (Colombo and et.al., 2021).
Creative idea-
An business man or women as entrepreneurs while managing a large either small
companies may take initiative to create innovative ideas, which they may use in the future and
currently as well to be innovative in market.

Creating a firm name-
Entrepreneurs whether relate to large companies or small, also effort to create their
organizational name, which allow marketer to generate awareness about it in market, which is
really quite essential.
Driving forces-
There are many factors exist in the business world that drive the attention of individual
entrepreneur towards taking steps and action towards formation of their business plans and
tactics.
Differences between entrepreneurial ventures-
Basis Survival Life style Managed growth Aggressive
growth
Managerial
focus
Within survival
companies,
management
concentrate on
those activities
which enable
them to sustain in
market for longer
and work under
budget.
The focus of
management
within these types
of firms may
upon determining
current trend.
On the other
hand, manager
and leader within
managed progress
companies may
concentrate on
both, in term of
increasing
profitability and
productivity.
They focus on
holding brand
position in market
as top.
Organizational
structure
Just it may do not
have many stores,
a survival in term
of small company
may do not had
wide structure.
While, life style
firms may use
horizontal
organizational
structure.
It may utilize
divisional
structure because
of having many
departments and
outlets.
On the other side,
aggressive growth
organizations use
hierarchical
structure to
manage business
progress in
appropriate way.
Technology Unable to invest It may invest to Instead of other Technology

investment much on
technology
implementation
until it may do
not require.
use advance
technology, as per
need and less than
other brands
categories.
companies,
managed growth
firm to manage
their operations
may invest to buy
new systems and
use as beneficial
as they can.
investment ratio
of these
enterprises it
much wider than
other.
Source of
finance
Friends and
family.
Bank loan Agile investor Market shares and
business
investors.
Critically examine scope, growth & development of entrepreneurial ventures
Scope of small, large, established and social entrepreneurial companies is quite different
from each other as they conduct their activities according to sector in which they may perform
and category of services as well as product that each may offer to retain target customers. For
example, Funeral care scope is to offer social services while TESCO scope is to earn profit by
offering quality products. Both companies within different industries may grow and develop at
different extent, just because of their efficiency and efforts. On the other hand, in same sector
NHS against Funeral care may progress unconditionally by providing its services at international
level.
Interpreter relevant data and statistics to explain how small and micro businesses impact on
economy
Small and micro enterprises in the UK play vital role in term of enhancing standard of
living and putting positive impact on economy in term of increasing ration of employment,
which is one of their great contribution towards economy development.

For example, small companies may grew in number of small stores and due to this reason
they expect to hire new people who may work even better (Hernández, Yañez-Araque and
Moreno-García, 2020). Especially during pandemic, many people start their new ventures and
recruit local people as path time worker to work at workplace and earn money according to their
work. It made individual candidate capable to live a normal life and fulfil their basic needs. By
putting positive impact on economy, small and medium size firms in term of offering fair and
equal employment chances efforts to grow economy and develop even better than last few years,
where pandemic may affected in negative way. In the Europe and United Kingdom, these firms
may define as independent enterprises that may have less than 250 skilled employees who
contribute to increase productivity, performance and profitability level of each SMEs (THE
ECONOMIC IMPACT OF SMES, 2020). They impact on economic development in term of
driving growth and opening new markets which support to generate GDP. They may determine
the needs of local customers regarding health and then develop plan to offer something new and
useful in term of service or product that people may utilize appropriately and gain benefits
through it. Small and medium size companies may respond and adopt more rapidly to change in
the UK economy as they mostly more consumer oriented and focus on understanding needs of
local community, which made these able to offer service or item accordingly. According to
above diagram, SMEs account for at least 99.5% of ventures across each sector, which means

they hire many people who enhance operational efficiency and then allow a company to generate
excellent gross domestic profit. By effectively reaching at target customers they contribute to
generate revenue, which is also important for economic development in term of paying tax.
Justifying value of small ventures and business start-up to growth of social economy
Small venture companies and start-up businesses play significant role in regard to social
economy progress in term of providing employment opportunities, which local people or
unemployed person may acquire to grow in their lives and fulfil their common needs as well as
family (What Are SMEs & Why Are They So Important for the UK Economy, 2019). Business
start-up owners may also contribute in same way by hiring people in bulk more than a big
company that recruit people on the basis of their education, when person it not educated at top-
level then they unable to work with a brand. In that case, small and start-up companies hire those
individuals and allow them to earn money on the basis of their hard work, which is important to
consider by recruiter.
Along in above term, they also play vital role in form of innovation. Many small
companies in electronic world efforts to innovate some new items and services such corona virus
testing kits that help population to take their test at home and determine where they are COVID
positive or not. It is one of those excellent initiatives that a small or start-up firms take to prevent
spread of infection and keep away people about spreading it.
They may support to create diversity at workplace where many candidates may work
together and get chance to understand cultural perspectives of others, which enable everyone to
perform in the future within big brand without facing workplace issues. It impacts in term of
leading way on diversity that teach everyone to work in a unit and to do not make differences on
the basis of age, gender, religion, caste, etc. factors.
On the other hand, small and start up businesses may put negative impact on social
economy in term of not taking many initiatives for local improvements at extreme level. Due to
lack of strategic plan and money, SMEs may do so, which may losses chances to grow even
better than other firms. It may also lead to decrease economic growth in term of hiring people on
the basis of their education, which is not good for poor candidates.
Critically examine how small businesses have an impact on varied level of economy in a local.
National, regional, and international context
Local level-

Small companies put positive impact to economy at local extent in term of hiring poor
and needy people.
National level-
Furthermore, they may also support at this level in term of generating competition and
encouraging workers to do some further innovations across a range of sectors.
International level-
At global level, small-businesses and start-up companies may contribute to economic
growth in term of increasing profitability and generating GDP.
Regional level-
By creating job opportunities and improving local areas, they may contribute in excellent
way and provide unexpected benefits to each stakeholder that connect with current activities.
TASK 2
Covered in PPT
CONCLUSION
On the basis of above analysis, it has been concluded that by enhancing products quality,
offering them in reasonable costs and by hiring local people, small and medium size
organizations play vital role in the context of economic growth. They had enhanced living
standard of local people in effective manner. From this study it has been determined that by
using effective communication, decision-making and other forms of skills as well as
characteristics, a person has become a successful business man or women. As they have achieved
set goals and obtained desire outcomes by using these key elements in their life.

REFERENCES
Book and Journals
Abdurakhmanova, G., 2020. Incentives to create new jobs in small business in
Uzbekistan. Архив научных исследований. (13).
Colombo, M.G, and et.al., 2021. The “first match” between high-tech entrepreneurial ventures
and universities: the role of founders’ social ties. The Journal of Technology Transfer.
pp.1-37.
Hernández, J.P.S.I., Yañez-Araque, B. and Moreno-García, J., 2020. Moderating effect of firm
size on the influence of corporate social responsibility in the economic performance of
micro-, small-and medium-sized enterprises. Technological Forecasting and Social
Change. 151. p.119774.
Scheidgen, K., 2021. Degrees of integration: how a fragmented entrepreneurial ecosystem
promotes different types of entrepreneurs. Entrepreneurship & Regional Development.
33(1-2). pp.54-79.
Webster, F.A., 2019. Entrepreneurs and ventures: An attempt at classification and
clarification. Academy of Management Review. 2(1). pp.54-61.
Online
THE ECONOMIC IMPACT OF SMES. 2020. [Online]. Available Through:
<https://iwcapital.co.uk/the-economic-impact-of-smes/>
What Are SMEs & Why Are They So Important for the UK Economy? 2019. Available Through:
<https://labs.com/what-are-smes-why-are-they-so-important-for-the-uk-economy/>