Different Types of Entrepreneurial Ventures and Their Impact on the Economy

Business
1

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1 Different types of entrepreneurial venture and the way they are related to different typology
.....................................................................................................................................................3
Related typology of entrepreneurial ventures..............................................................................4
P2 Similarities and difference between entrepreneurial ventures................................................5
LO2..................................................................................................................................................7
P3 Impact of micro and small business on economy...................................................................7
P4 Importance of small and start-up business in growth of social economy...............................8
LO3..................................................................................................................................................9
P5 Characteristic traits and skills of entrepreneurs......................................................................9
P6 Entrepreneurial aspects personality reflect motivation and mindset....................................10
LO4................................................................................................................................................11
P7 Background and experience can hinder or foster entrepreneurship.....................................11
CONCLSUION..............................................................................................................................12
REFERENCE................................................................................................................................13
2

INTRODUCTION
Business refers to activities of distribution of various products and services among
customers so that it can earn sufficient amount of profitability and market share. Individual takes
risks to start new business through brining new ideas so that people can be motivated to choose
particular products for satisfaction of their needs. There are various types of business on basis of
purpose, size of operation and number of activities that need to be performed by particular
enterprise. This report has explained about different types of entrepreneurial ventures and related
typology of entrepreneurship. It has also discussed about similarities and difference between
entrepreneurial ventures and impact, importance of micro and small business on growth of social
economy. It has also determined about various characteristics, traits and skills of entrepreneur
and the way background and experience hinder or foster entrepreneurship.
LO1
P1 Different types of entrepreneurial venture and the way they are related to different
typology
Entrepreneur planned to undertake various business activities by incorporating various
associated risk so that specific profit can be earned by organisation. There are various types of
entrepreneurial venture such as private, public and voluntary that is explained below:
Private Enterprise: There are many organisations that are owned and controlled by single
individual or two, more partners to offer different products and services and satisfied needs of
customers beyond their expectancy. Such as ASDA is a private organisation in UK that deals in
clothing, home care products, food and personal care in order to meet needs and demand of large
number of people so that maximum profit can be earned (Boeker and et.al, 2019). Private
enterprise are established and operated in highly competitive environment with highly skilled
employees, technology so that unsatisfied needs can be fulfilled and company can get
differentiate positioning. It bring continuous innovation in products or method of delivering
services so that new customers can be added to existing one for achievement of firm goals.
Therefore, private enterprise main motivate is to more profitability through retaining
customers satisfactions for overall success of enterprise.
Public Enterprise: These types of organisation can subscribe its share to general public in
order to raise capital for smooth operation and development of enterprise. Public
3

enterprises are managed by shareholders that are elected by public so that requirements of people
can be fulfilled at reasonable rates. For Example: Tesco is a large public enterprise that operates
in retail industry with main purpose to provide better customers experiences through offering
qualitative products at reasonable rates. Public organization also grow at slow speeds as their
main motivate is not to earn profit rather than to serve the best products and services to local
people for increasing their living standard and economic growth (Wales and et.al, 2019).
Therefore, manager of Tesco planned to bring economic of scale so that demand of most of
the people in UK can be fulfilled at reasonable rates.
Voluntary: It is types of organization that is mainly established to provide services or support to
people that have finance or resource to live better lifestyles. There are large numbers of
enterprise in UK approx 165,800 that are established and operated for social benefits such as
Action for business limited was established in1992 in order to support economic development
and social cohesion therefore firm have limited market share, capital for making life of people
better. Thus it can be stated as non-profit organization that is introduced by some member of
individual of organization for economic growth and welfare of individual that are living in
particular society.
Related typology of entrepreneurial ventures
Social enterprise, high growth firm and high tech firm are different typologies that
are related to entrepreneurial ventures such as:
High Tech firm: It included companies or enterprise that uses high and innovative technology
in order to manufacture and deliver qualitative products and services to end customers. Company
that changes its technologies as per demand and needs of customers is able to gain competitive
positioning and build strong brand image in mind of people. Such as large organisation or
private firm that have lot of capital, resources to use innovative technologies for satisfying needs
of people in best possible manner.
High growth firm: These are firm that wants to grow and expand its business at high speed
through adding more and more customers so that sales volume and profitability can be increased.
Such as Tesco in order to grow and expand its market share have reduces cost of production and
bring economic of scale so that maximum individual can be influenced to buy products of Tesco
over other competitors (Nijssen, 2017). Various promotional activities and innovation helps in
effective growth, establishment of strong brand image in mind of customers. Therefore, it
4