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Importance of Small Enterprises in the Economy

University: Regent college

  • Unit No: 9
  • Level: High school
  • Pages: 16 / Words 3976
  • Paper Type: Assignment
  • Course Code: N/A
  • Downloads: 40
Question :

 Some of the main assessment which are required to be answered are mentioned thereunder:

  • Explain range of entrepreneurial areas with range of ventures.
  • Explain the economy of small business practices.
  • Provide all the key aspects and the entrepreneurial mindsets.
  • Elaborate the hinder nature and working.
Answer :
Organization Selected : N/A

INTRODUCTION

Entrepreneurship has a broad scope of meanings, the willingness and capability to create, deal and manage a business project along with any of its risks in order to make a profit. The most evident example of entrepreneurship is the starting of new business (Mariotti and Glackin, 2015). And small business is an independently handled and function company that is limited in size and in revenue depending on the industry.

In this report covers different types of entrepreneurial ventures and relate to the typology of entrepreneurship. Explore similarities and differences between entrepreneurial ventures, mini research on micro and small business. Importance of small business and businesses start ups and determine characteristics, traits and skills of two successful entrepreneur these are Joe woods and Philip green.

TASK 1

P1 Different types of entrepreneurial ventures and its related to the typology of entrepreneurship

Entrepreneur

An entrepreneur is an individual who identifies a need in the marketplace and works to fulfil it. On the broad level an entrepreneur is a person of very high ability who innovator relation, dominate characteristics found in only a very small fraction of the population (Schaper and et. al., 2014). On other side, anyone who wants to work in own way that is reasoned to be an entrepreneur.

Entrepreneurial Ventures

It can be determinate as an organisation that places self-interest and innovation at its heart in order to make social and economic value. It is centred on supply consultative services to early and mid stage companies. Entrepreneurial ventures' roles are depending on the level of the company.

Entrepreneurs types

In business world to see different types of entrepreneurs that are related to different areas, they are as follows -

Innovative Entrepreneur

These are included one of them, who are invent new ideas, new production and new ideas methods or processes, discover potential markets and recognize the company's structure. These are industry leaders and contributes significantly towards the economic development of the country.

Re-create Entrepreneurs

These types of entrepreneurs are who instantly copy the new innovation made by the innovative entrepreneurs. These do not make any innovations by themselves. They just immediate copy of the processes, new innovation, technology and methods conceiver by others (Burns and Dewhurst, 2016).

Socialism Entrepreneurs

These types of entrepreneurs are unbelieving about the changes to be made in the organization. They are believing to solving problems with creativity but follow only after they are satisfied with its success rate. They wait for some time before the innovation becomes well tested by others and do not result in a huge loss due to its failure.

Modulation entrepreneurs

These types of entrepreneurs are reluctant to changes since they are very conservative and do not want to make any changes in the organization. They are happy with their present mode of business and do not want to change even if they are suffering the losses.

Entrepreneurship

It is the process of designing, launching, and running a new business, which is often initially small business. The people who create these businesses are called entrepreneurs. It is also defined as the capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit (Storey, 2017).

Types of Entrepreneurial ventures

It is shows small and medium sizes ventures are

Scalable entrepreneurship:

These types of entrepreneurs starts a company to knowing from day one that their vision could change the world. This type business are created with the help of their strong ideas. These types of entrepreneurship have vision, mission to achieve by their ideas. They taking finance facility from market and convenience people for investing in their ideas.

Small business entrepreneurship:

In present scenario, there are 6 million people are operating small business enterprises in the market with in united kingdom. In these types business including grocery stores, travel agents, hairdressers, carpenters, electricians and plumbers. For regulating of business hire local employees or family that are profitable to them. It is helping to them to grab own profit in own way.

Social entrepreneurship:

It is the type of enterprises are focusing on creating products and services that are useful for people and provide facility to solve problems. They are manufactures Eco products that are providing healthy environment and useful to everyone. For example: Patanjali goods are providing healthy life and good quality products.

Relationship of ventures with its typologies

All types of ventures are related to the typologies in different or other way such as social, scalable and lifestyle entrepreneurship (Fayolle and Gailly, 2015). It is linked with succeed the development of venture typology. Their are different kinds of typologies which are connected in an effective way with the ventures which are running within the market.

Types of typology

It is classified according to people, things or other commodities that are certain differences. It helps to researches and other to better understand certain condition and factors.

Lifestyle Ventures

In this type of venture immediately taking benefits and these also helping to business. These types of ventures mainly establish business in alone to area for working with peacefully.

Managed growth ventures

An smart businessmen wants to earn lots of money so for earn they adopted these types enterprises. It is provide growth to them when they are invest money those businesses are using money to earn profit not waste money in waste things (Mugler, 2017). It is mostly related to big type enterprises.

Survival ventures

In this type of enterprises are started to provide basic facilities to family and accomplish money according to requirement. In this including small businesses are grocery store, internet cafe and barber store.

Conclusion –

It is concluded that Entrepreneurship have different types of ventures that are helping to stated of business and apply ideas. These are related to different type of typologies that are helping to manage things, people and commodities. With the help of them easily apply ideas to starting business.

TASK 2

P2 Assets and interpret how small and micro economy impact on economy

In the society various types enterprises that are affected by social activities and these are organised according to society. They are as follows -

Micro business

In these types enterprises are having one and more owner that are control and operate business. They are recruit employees in enterprises and there are different types department. Mostly these types of businesses are starting by youngest people who want to earn money and growth in future. They are working according to own way to improve skills and capabilities. In united kingdom, there are around 5.3 million micro enterprises are operating (Baum, Frese and Baron, 2014).

Medium size business

Mostly organisation are divided in s,mall and large size enterprises but there are exist medium size enterprises. On medium size enterprises not providing official definition that are justify. But there are number of workers are working about 200 to 300 that are medium size enterprises.

Small business

It is a type of enterprises where one single person started business to earn more and more profit for improve higher level skills. These enterprises not working not broad level and not investing on different resources. Mostly business started with small venture but in future taking advantages. In united kingdom have more than 5 million small businesses.

Small and Micro businesses Contribution in growth of UK

Particular

Number of Employees

Total Assets

Annual Sales

Micro Enterprise

<12

≤ £2.5 m

≤ £2 m

Small Enterprises

<60

≤ £12m

≤ £09 m

Medium Enterprises

<280

≤ £55 m

≤ £47 m

Statistical data that are impact on SME on UK -

  • In the starting of 2018, there is around of 5.7 million businesses are registered related to small scale.
  • In the private sector 0.5% business population is fall but ration of emplacement increased by 0.2%
  • Estimate 16.4 million public is employed in SMEs that is total of the population 60% who are working under private sector.
  • In UK, Small and micro business accounts for 99.3% of entire private businesses in 2018 where small and medium size companies around 99%
  • After analysis it is getting that combined turn over of SMEs for 2018 is 2.0 trillion pounds.

Influence of economy on small and micro enterprises

Management of small and micro businesses are using effective research to organise for find out of trends that are related to present scenario in the market. Basically these types of business effected to market because new enterprise coming in market so in marketing they provided goods in low prices that are effected to other enterprises. They are also providing new structure of business, increase level of no of business and it is also provided jobs in these enterprises (Wach, 2014). Major influence are identify that are influencing by small and micro enterprise, are as follows -

Local impact –

These organisation are influence of local areas in big way as they concentrate much on carry out of citizen demands only. These enterprises mostly targeted to local consumer of the running time and establishing their enterprises. They also helping to local peoples for providing employment that are also helping to nation to reduce unemployment rate.

Regional impact –

Small and micro enterprises are influence of economy in huge way because over societies in positive and negative way. When they establish business that time they are string to fulfil local consumer demand s that are effected in positive way. After some time when they are not provided good quality is impact negative way (Cucculelli and Bettinelli, 2015).

National impact -

In present time ever one want to establish own business so that is reason to increase number of small business that re effected to economy. Because of when they starting business so they need to money that is make strong to market and increase power of earrings.

P3 Importance of small business will contribute to the growth of social economy after Brexit

Brexit

It is an form of British exit mention to UK's decision in a June 23, 2016. It is used to talk about the potential removal of united kingdom from EU. It was origin from 29th march 2017. Here, British people are ballot for British exit as well as its president was not within the favour of it. At the time of final discussion, prime minister gave resign from post. After the new prime minister they are try to break stereotype within European union negotiation after the Brussels.  

Impact of small enterprises on social economy of united kingdom

In the present scenario after analysis search that in united kingdom market increasing by micro and small sector that are operating thousands business in the market (Lima and et. al., 2015). They provide several benefits to to UK government for increasing their economy, they are as follows -

Social and economic development –

Small enterprises are helping to social and economical way in the term of power house of the economy of the nation. When survey in united kingdom after that getting result there are 6 million people related to small and micro enterprises. They are provide strong economy with the help of provide vacancies to job seekers within UK. So its effected positive impact on united kingdom.

Effects on taxes and revenues –

Taxes and revenues that important parts are impact on economy of any organisation. So its providing jobs to UK peoples who really need this. when establish smalls and micro business in UK so they generate revenues that will help to make strong economy of UK and more earnings liable to pay taxes that are paid to governments. From both sources helping to increases fund of the government.

Effects on poverty and many others factors –

It effects in huge way of the economy, that are related to small and macro enterprises. If in country poverty take place that is effected as slow growth of the economy. When establishing small enterprises that are good for reduce to poverty from the economy and help to develop (Katz, 2014). Higher level of the economy making wealth and employment.

Improvements on social economy –

It is the main factor that are effects to social economy of the UK. Because some industries are working for social welfare and they are providing resources in least prices. It will giving regular income to those employees who are recruit in these firms. It will impact on high rate and high growth.

TASK 3

P4 Characterise, skills and traits of two successful entrepreneurs

In the starting up of an business is a very easy task but for becoming a entrepreneur is not an easy job. In order to become a entrepreneur they must have some skills and characteristics which are used at the time period of conducting business. Joe Woods and Philip Green are the two successful entrepreneurs and their characteristics & traits of entrepreneur and manager are as follows:

Characteristics/skills

Manager

Entrepreneur

Strategic vision

When manager guiding to subordinate that time know to particular vision of the company that will help to accomplish.

An entrepreneur have idea to establish business and that are different from others that are helping to implement ideas. For this also require a particular mission and vision to implement of strategy off the business. It is used to conducting activities for success.

Critical thinking

They are thinking deeply and also taking proper time to understand terms and condition related to specific projects.

An entrepreneur acquire all new concepts and innovative ideas that are helping for efficient work. This the basic reason of Philip green is able to continue company and it reputation in market. They also have deep thinking because of they have to perform in the organisation. If they are understand so direct to all employees who are under direction.

Communication

The manger have responsibility to distribute work to all employees according to their capabilities. So for this need to communicate with workers who are coming under to them. With the help of this understand capabilities of manager. (Brush and Greene, 2015).

The skills of communication have an entrepreneur play a main role. Because of good communication helping to maintain relation of people with staff members and company. It will impact to increase productivity level and guide to staff members properly.

Delegation

They sometime to delegating work for their employees. It will also helping to carry out all business activities that are needful.

An entrepreneurs needs to be practical and active to evaluate performance of their staff members. Philip green delegate to authority when need to do on specific time.

Conclusion – After analysis of Differences between successful entrepreneurs and typical business managers are both are not communicate with their employees. Managers not delegate authority to their employees but entrepreneur do it.

Some of traits of successful entrepreneur like as Joe Woods and Philip greens are as follows:

  • Entrepreneur have to take risk to earn higher level profits.
  • Joe Woods is very much dedicated to execute of targets and strategies.
  • They have higher level confidence that will help to face any type of risks.
  • An entrepreneur always ready to learn new things that help to future.

P5 Entrepreneurial personality reflect entrepreneurial motivation and mindset

It's importance to know the entrepreneurial personality regarding to developing enterprises in an economy. To conduct business activities every owner organising different personality according to situation. So for positive impact on society has to better personalty that are taking appropriate decision. With better personality improve skills, and traits to becoming a good entrepreneur. In the personality carry out business in proper manner that are help to succeed to business. There are 5 types are of personality regarding to successful entrepreneur -

  • Extraversion – In this factor, entrepreneur will be social and energetic for their work. They have to passion to complete tasks on time and with of full efficiency. These qualities are helping to become as a successful entrepreneur.
  • Neuroticism – This type of personality shows that enterpriser will be calm and focused. These qualities helping them to execute work on time and helping to achieve tagetes on time.
  • Agreeableness – It shows that entrepreneur must be trustworthy, good nature and cooperative also. So that is giving reason to employee for believing and inspiring.
  • Conscientiousness – in this entrepreneur must be effective and efficient for work and also for self conscious. It is helping to achieve targets in particular time. And give proper reason to meeting given time.
  • Openness to experience – In this personality consist of of innovation, intellectual thinking and degree of creativity.

 

Entrepreneur's mindset – From the prospectives of mind they wants to success in every manner. Because they wanted to changes in social life and they are ready to bear risk. With the help of approaches and ideas they are prepare strategies that will help to execute business in different manner. In this processes there responsibilities effected to decision and thinking. So it will defined working capabilities and working skills that are help to achieve higher success. Joe woods according hard work need to set the business and experience is most important for improve learning skills. Philip green telling that smart work important to learning abilities.

TASK 4

P6 Examine experience and background can foster or hinder entrepreneurship

Entrepreneur is main element that have skills and knowledge to explore business idea. It will aid in education details, family background, personal experience etc.

  • Family background – It is very important to know because it is a reason that are effect to be entrepreneur. It will give high impact on decision taking and risk bearing. Both Joe woods and Philip green are different family background.
  • Social network – It is main element that are giving direction to do something different from others. In this segment consist of friends, relatives, family that are giving ability to taking power of decision.
  • Education – An individuals thoughts and opinions are influence of education life. It helps to entrepreneur for improve skills and knowledge.
  • Nationality – Both entrepreneurs are belongs from UK that are helping to understand of there culture.

Hence, On the basis of family background, life style, education and nationality are impact on to taking decision and become of entrepreneur. Most of the entrepreneur influence by social activities these are helping to doing different manner. If they have worst background that are also influence for become entrepreneur.

Joe woods

Background – Joe woods at the age of 15 faces financial problems in family because during recession woods father loss their job. So wood starting to set up business for survive in bad situations.

Experience – For set business wood faces many critical situations because wood working with many shop keepers who behave badly with woods.

Philip green

Background – At the age of twelve Philip green's father died of a heart attack and the boy heritable the family business. So green's decide to leaving boarding school and worked for a shoe importer before travelling to the Europe, US and the far east. In the age of 21 establish first business to importing jeans.

Experience – Philip green have worst experience in the starting of the business.

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CONCLUSION

From the above report it is concluded that in present scenario small enterprises plays important role in the economy. An entrepreneurs personalities based on communication skills and working tactics. In this report identify similarities and differentiation between all the ventures. That are connected to each other and impact on social economy. Various types of entrepreneurship that are provides benefit social and economical way that are impact in huge way. Brexit is important that is related to British team and individual persons are performing their ideas, methods and concepts.

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