Entrepreneurship: Impact of Micro & Small Businesses on Economy

This report provides an overview of entrepreneurship and small business management, covering various entrepreneurial ventures and their relationship with typologies. It discusses the similarities and differences between entrepreneurial ventures and assesses the impact of micro and small busin...Read More

ENTREPRENEURSHIP

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types of entrepreneurial ventures and their relationship with typologies...............1
P2 Similarities and Difference between entrepreneurial ventures..............................................3
TASK 2............................................................................................................................................6
P3 Assessing and interpreting the impact of micro and small businesses in economy...............6
.......................................................................................................................................7
P4 Contribution of small businesses and start-ups in growth of social economy.......................7
TASK 3............................................................................................................................................8
P5 Characteristics, traits and skills of two successful entrepreneurs which differentiate them
from other business managers.....................................................................................................8
TASK 4..........................................................................................................................................11
P7 Background and experience can hinder or foster entrepreneurship.....................................11
CONCLUSION..............................................................................................................................11
.......................................................................................................................................................12

INTRODUCTION
Entrepreneur is a person who set up a new business by implementing new and innovative
ideas for attaining success at market place. Along with this, they also take financial risk with the
hope of converting into huge profit. The main aim of entrepreneur to start a new business is to
generate larger profit by establishing their successful business. In context of this, it is necessary
for person who set a business to undertake an effective research to evaluate the market trends and
demand as well. For attaining the same, entrepreneurs have to create new ideas with the aim of
attaining set goals and objectives (Blackburn, Hart and Wainwright, 2013). This will contribute
in attaining higher success at market place. Present report is based on entrepreneurship and small
business management which cover various entrepreneurial ventures and its relationship with
typologies. Similarities and difference between entrepreneurial ventures are also mentioned in
this report. In addition of this, interpreting the impact of of micro and small business in
economy is also discussed in this report. At last, characteristic, traits and skills of successful
entrepreneurs discussed here.
TASK 1
P1 Different types of entrepreneurial ventures and their relationship with typologies
Entrepreneurial Venture: It can be defines as an organisation which operate by an individual to
attain success in market place. The main focus of this type of business is to implement new and
innovative ideas for developing the economic condition. Along with this, entrepreneurial venture
is focus on offering advisory services to people who wants to run their new business. This will
contribute in developing economy (Bridge and O'Neill, 2012).
Entrepreneur
Individual who start a new business with new and innovative ideas in order to attain
higher success at market place. Mainly, they are single person and take financial risk for
converting into profitability. Along with this, they also manufacture quality services and deliver
to larger number of customers with the aim of generating profitability.
Types of entrepreneurs: Serial entrepreneurs: These type of entrepreneurs highly take challenges repeatedly. For
this, they implement new and innovative ideas to run number of business for generating
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revenue. Along with this, entrepreneurs having lots of unique ideas in order to move
forward to attain profitability. Social entrepreneurs: These type of entrepreneurs start their business for reducing social
issues. Mainly they work for increasing social welfare by providing them services. This
will directly contribute in developing economic condition.
 Female entrepreneurs: It has never been differentiated as per sex. It consider as the
process in which women manage as well as organise al the factors of the products,
undertake risks and also provide chances of employment to another person. One of the
main quality of female entrepreneurs is that they can easily handle all the staff members
and make better relation with others.
Concept of entrepreneurship:
It is an important concept in which individual who set a new business by creating,
organizing unique ideas. Mainly, entrepreneurship is an important process of exploring new and
innovative opportunities in market place for attaining long term gain. One of the main advantage
of entrepreneurship is to reduce unemployment and poverty within the economy. Along with
this, it also consider as an effective process of planning, organizing all the activities of the
business for attaining success at market place (Carsrud and Brännback, 2011).
Key Ventures of entrepreneurs: Small business entrepreneurs: Start ups at small scale like travel agent, plumber,
consultants, electricians, carpenters, hairdresser etc. are considered as Small businesses.
Main motive o0f these businesses is to earn sufficient amount of money in order to fulfil
basic demand of their families. Under this, funds are raised from borrowing money from
friends and family. Scalable entrepreneurship: These types of entrepreneurs are considered as companies
with strong vision and mission in order to change the world. They are connected with the
investors who invests huge amount for increasing productivity of business and its
growth. Main motive of these entrepreneur is to use innovative and unique ideas in their
business for differentiating themselves from others.
 Social entrepreneurship: These type of ventures are operate for improving social
condition in the nation. They work for society not for generating profit. One of the main
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aim of this type of business organization is to increase social welfare by providing
benefits to society. Social entrepreneurship is all about removing society issues.
Relationship of ventures with typology of entrepreneurship
Typologies and venture are interconnected with one another as it supports in formulating
vision, mission, purpose and nature of business. Some typologies are described as below:
Lifestyle venture: In this, entrepreneur earns immediate profit to enjoy particular lifestyle.
Managed development venture: Under this, entrepreneur are highly skilled and have the
ability to generate profit from the business. For this businessmen invests at right place which
gives high return rates.
Survival ventures: Under this, business are started for satisfying needs and wants of the
family. Entrepreneur works with limited resources as size of the business is small.
P2 Similarities and Difference between entrepreneurial ventures
Entrepreneurs are the one who starts and operate new business alone. It is riskier for the
individual to manage all the fund required for the business and deal with the daily basis
problems. Skills and knowledge of the entrepreneur separate him from other individuals as they
own strong capability to use their innovative ideas to make their business successful and generate
profit (Chittithaworn and et. al., 2011). Increasing number of entrepreneurs are raising the
competition at market place. So, it is necessary for the entrepreneurs to formulate and opt various
strategies to differentiate themselves from others. Differences and similarity among all
entrepreneur ventures are evaluated as below:
Similarities Lifestyle Ventures Social Entrepreneurs
 Lifestyle ventures are
started at small level.
 Major purpose of these
ventures is not earn
profit. They focuses on
maintaining their
lifestyle.
 Social Entrepreneurs
are started at small
level
 Their main motive is to
earn profit for social
development.
Differences Lifestyle Ventures Social Entrepreneurs
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 Availability of fund is
limited for lifestyles
ventures.
 Business strategies are
formulated according
to the market scenario
in order to enhance
their lifestyle.
 In this, business is
developing according
to the passion.
 They interact with
other investors to raise
their funds and use it
for business growth.
 In this, business
strategies are
formulated for business
growth in order to
contribute high towards
society.
 In this, businesses run
with the social
responsibility and
implementation of
strategies are done in
effective manner to
generate maximum
profit which can be
further use for social
development.
Similarities Female Entrepreneur Male Entrepreneur
 Women are
multitasking and
focused towards
business goals for this
they manages all the
business activities in
effective manner.
 Women use their
 Men are business
oriented and
concentrates on the
strategies to achieve
targeted goals for better
results.
 Men are passionate
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creative and innovative
skill in business for
developing effective
strategies. Female
entrepreneur uses
unique ways to attain
the success at market
place.
towards their business
and use their dedication
to implement their
business strategies to
make business.
successful .
Differences Female Entrepreneur Male Entrepreneur
 Female entrepreneur
takes more time n
decision making
process which wastes
precious time of
business and might
loose profitable deals.
 They concentrates on
providing quality
products and services
to its customers in
order to develop their
business for long term.
 They are less interested
in taking financial risk
for the growth of the
business.
 Female entrepreneurs
are expert in
maintaining positive
relationship with the
 Male entrepreneur are
quick in decision
making as compared to
female entrepreneurs.
 They focuses on
reducing extra cost at
workplace to
developing the
business.
 They feels comfortable
in taking financial
decisions and have
capability of taking
financial risk according
to the need of the
business.
 Male entrepreneur
majorly concentrates
on finishing their task.
They gives more
importance to the those
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employees as well as
customers.
employee who are
accomplishing their
task in less time.
TASK 2
P3 Assessing and interpreting the impact of micro and small businesses in economy
Several kind of businesses exists in society which influences economic condition of the
country. Types of business are described as below:
Micro business: Micro business is operated by individual with the motive to developing
their business and attain success at market place. In this business, range of employees is between
0 to 10 employees. People are more interested in starting their own micro business as it provides
flexibility in working time. Major purpose of micro business is to develop their business and
increase the revenue. Approximately 5.4 million micro businesses exist in United Kingdom.
Small business: These businesses are started with motive of generating large
profitability. In small businesses, number of employees can exist from 0 to 500. Employee ratio
completely depends upon the nature, products and services of the industry. In addition to this,
they also generates employment in united kingdom and contributes in economic growth of the
country (Chrisman and et. al., 2012).
Medium size business: These enterprises neither comes under small business nor large
business. Under this, employees range exists between 250 to 500. Major objective of these
businesses is to grow their business by providing quality products and services to its customers.
This helps them increasing their market share and generate more amount of revenue.
Impact of economy on SME's: Local impact: Enterprises which comes under SME are important for every locality as it
increases employment within local and provides opportunity to citizen. This affects the
local environment of the country in positive manner as it enhances standard of living of
society. National impact: At national level SME influences the country in positive manner as it
has increased number of employment opportunities within the country. It also contributes
towards the economic growth of United Kingdom.
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 Regional impact: These business influences the regional environment as the provides
goods and services to its customers according to their taste and preferences. It made
shopping easier for the customers to access products of their requirement in less time
effectively.
P4 Contribution of small businesses and start-ups in growth of social economy
Brexit: In this, United Kingdom have withdrawn themselves from Europe Union. This
country have decided to take their own decision for the betterment of the nation. It results in
decreased of per capita of UK in comparison to previous years. This process initiated on 29th
March, 2017. Brexit have affected United Kingdom on the basis of economy as well as its
decision making activities.
Difference between small business and start-ups:
Small business Start-ups
 They are initiated with motive to
earning regular base livelihood.
 Small-business offers traditional based
products and services to customers.
 These firms are undertaken by private
owners. Employee range exist less or
equivalent to 250 employees.
 Start-ups are raised for converting new
idea into business concern.
 This offers innovative products at
market place which attracts customer's
attention.
 These enterprises are consist of less or
more than 250 worker. Number of
employees varies according to the type
of the business.
Impact of small businesses on social economy after Brexit are evaluated as below:
Growth of social security: It refers to providing social and financial security to the
people of United Kingdom (Dennis Jr, 2011). It depends upon the economic stability of the
country. In context to small businesses, these enterprises are increasing flow of money within
UK. It has also developed the employment not only for the youngsters but also for the retired
citizens. Small business influences the social economy of the UK in positive manner.
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Economic and social growth: Small businesses gives their contribution in developing
economic position of the country. They are considered as supportive hand of UK which increases
employment and also provides numerous opportunities to its citizen in order to make their
lifestyle smooth. According to present scenario, approximately 5.7 million small businesses are
running in United Kingdom which contributes in minimising unemployment.
Effect on revenue and taxes: It is essential for every country to generates taxes from the
citizen in order to develop the country. Small businessman of UK have to pay taxes to the
government according to their pro fit earning ratio. Collected amount from taxes are used by
government for the internal growth of UK which affects overall economic condition. UK
government have also provided many taxable benefits top the small business which reduces their
expenditure and helps them in generating high profits.
Effect on poverty and other elements: Poverty affects the growth of country in negative
manner. Small business have increased the employment within the country which have directly
reduced the poverty level of the country. For small businesses it is necessary to hire local
employees and worker in order to reduce their costing. This directly improves the employment
level of country and also enhances their standard of living (Drucker, 2014).
Therefore after Brexit, small businesses and start-up have influenced the economic
growth of United Kingdom in positive manner. Small business have increased the employment
level of the country which directly which reduced poverty level. In addition to this, taxes
generated from small businesses and start-up is beneficial for government in order to develop
internal growth of UK.
TASK 3
P5 Characteristics, traits and skills of two successful entrepreneurs which differentiate them from
other business managers
It is not simpler to make the successful entrepreneurs with in small period of time. For
them, specific characteristics as well as skills are to be required. In context to this, there should
be more qualities needed in a successful entrepreneur. It is necessary that an entrepreneur should
have ability to deal with the risk in better manner and gain for profit by retaining at market place
for long period of time. Under this, there are two successful entrepreneur are taken Joe Woods
and Mark Zuckerberg. Joe woods is owner of IT organisation where as Mark Zuckerberg is a
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owner of social media application and that is Facebook. The characteristics, skills and traits of
both entrepreneurs are different from each other.
Characteristics of Mark Zuckerberg and Joe Woods mention below:
Mark Zuckerberg
Motivation- This person is a good motivator and he enhance motivation level of staff
members so that they can focus on achieving the set target with in given period of time.
Risk bearing- He is willingness to assume the risk which are arising out of execution as
well as creation of new thoughts.
Innovation- Mark Zuckerberg continuously make some changing it Facebook by bring
the new features which attract the consumers more.
Joe Woods
Creativity- It is necessary that an entrepreneur should be more creative and also think out
of the box. Joe Woods create the new things and develop the creative solutions related to IT.
Flexibility- Joe woods is a successful entrepreneur and he is able to adopt the necessary
modifications as well as solve issues which are arise. He assist his team in better manner and
motivate them.
Skills and Traits of Mark Zuckerberg and Joe Woods
Mark Zuckerberg
Communication- He communicate with his staff members on continuous basis and listen
their issues. It is helpful in enhancing their productivity and also their level of performance.
Team building- Under this, Mark Zuckerberg motivate its employees to work in a team
and focus on attaining the specific goals with in given period of time.
Joe Woods
Decision making- Joe Woods always take decision in favour of company along with his
staff members. With achieving the aims of company, this person also focus on fulfil the demands
and requirements of his staff (Fassin, Van Rossem and Buelens, 2011).
Focus- After set the vision on long term basis, an entrepreneur focus on accomplish the
set objectives with in particular time period. In addition to this, there are several distractions
faced through an entrepreneur while develop the business. So, this type of skill is necessary in an
entrepreneur.
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P6 Assessment of aspects of entrepreneurial personality in reflecting entrepreneurial motivation
and mind-set
Entrepreneurs are considered as the separate personalities in comparison to other
businessman. Entrepreneurs have high capability of the taking risk with their new generated
ideas on the other hand managers believes inn calculating risk and find outs feasible solution to
reduce it. Entrepreneur works according to its requirements and formulates strategies with the
motive of achieving goals and objectives in decided time period. Every individual has its
personal trait which helps in completing their work and also supports in building positive brand
image on customers mind. To identify these traits Big five model have been used and is
described as below:
Openness to experience: This trait is essential for the entrepreneur as it helps him in
sharing his view and ideas with employees. It is important for the entrepreneur to express his
ideas and views with employees to make them work effectively. Proper mode of communication
is necessary for the growth of business and helps both entrepreneur as well as employees in
accomplishing their goals and objectives (Fassin, Van Rossem and Buelens, 2011).
Conscientiousness: It is termed as the essential personality trait of being goal oriented,
focused, careful etc. It is beneficial for the entrepreneur as it reflects that he is capable of doing
work. In addition to this, it also shows the consciousness in achieving its goals and objective in
decided period of time. It supports the entrepreneur in achieving its aim.
Extraversion: It refers to the extrovert behaviour of the entrepreneur which support him
in achieving business goals. In this entrepreneur shares his thoughts, feeling, expectations and
thinking with the employees in order to satisfy himself and develop personal motivation level. It
also includes the leadership skill of the entrepreneur. This trait is considered also as the
motivation booster for the entrepreneur (Zott, Amit and Massa, 2011) .
Agreeableness: Under this, entrepreneur is cooperative in nature and can be easily trusted
by its employees as well as customers. This trait helps the entrepreneur in managing its team and
make them work according to the requirement of the business. Entrepreneur uses agreeableness
trait to influence its employees and convince them in finishing their work on given time period.
Emotional stability: This trait reflects the emotional stability of the entrepreneur. It helps
in focusing more on the work and its results on practical basis. It is required by entrepreneur to
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have emotional stability to take business decision properly on the basis of facts and figures and
the situation accordingly.
TASK 4
P7 Background and experience can hinder or foster entrepreneurship
Every entrepreneur have its own personality trait which affects its decision making
process and as well as the pattern of risk bearing. It has been considered that experience and
background both have their own influence over the working pattern of the entrepreneur. It has
been observed very successful owns good family background, attractive personality as well as
experience which supports him in achieving his desired position. Having good educational
background helps the entrepreneur in taking formulating effective and beneficial strategies for it
its business which supports in setting goals and objectives. Educational background also
enhances the knowledge of the entrepreneur and guides him to take effective decision that is
beneficial for business growth. In addition to this, family support helps the entrepreneur by
using their advice business decisions. Family members also provides financial support to the
entrepreneur in order to expand business and develop their products and services at markets
place (Wheelen and Hunger, 2011).
Apart from this, experience of the entrepreneur influences its working pattern as personal
experience of business guide him to not repeat previous mistakes in future. This helps the
entrepreneur in many ways as it will not waste the future investment on wrong place and guides
him to use it at proper place in appropriate manner. It is necessary for every entrepreneur to take
its previous experience in positive manner in order to learn from mistakes and use them in
business for future growth. Previous experience of business manager also motivate him
increasing it is business.
Therefore, experience, education and family background influences entrepreneur and its
working style. Good family background and education helps the business manager in
establishing its business in effective manner and also helps in managing employees to achieve
targeted goals and objectives.
CONCLUSION
It has been concluded from the above given report that entrepreneurs plays a necessary
role for conduct business in a successful manner. The role of every entrepreneur is different from
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the each other and their main focus on increasing development and productivity of business
firm. Under this mention report studied about the similarities as well as differences among the
entrepreneurial ventures. Experience and background of an individual can foster and also hinder
the entrepreneurship has been discussed in given report.
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through:<https://www.smallbusinessbank.com/about/micro-vs-small-business/ >.
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