UNIT 9 ENTREPRENEURSHIP

This report explores various types of entrepreneurial ventures, their impact on the UK economy, and the influence of Brexit. It analyzes the characteristics of successful entrepreneurs like Jeff Bezos and Jack Ma, highlighting the factors that foster and hinder entrepreneurial growth. The report also examines the role of small businesses in contributing to the social economy after Brexit.

UNIT 9
ENTREPRENEURSHIP

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
1. Differentiation between types of entrepreneurial ventures and their relation to typology of
entrepreneurship.....................................................................................................................1
2. Similarities and differences between entrepreneurial ventures..........................................2
3. Statistical Data representing micro and small businesses impact on economy..................6
4. Importance of small businesses and business start –ups which will contribute to the growth
of the social economy after ‘Brexit........................................................................................8
5. Determining the characteristics, traits and skills of two successful entrepreneurs which
differentiate them from other business manager....................................................................9
6. Few practical examples which is essential in examining about background and experience
that hinder and foster entrepreneurship................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneur has an innovative idea of establishing business; they develop products and
services according to the requirement of customers. They aim at maximising profits and
minimising the operations in order to operate in economies of scale. Micro, small and medium-
sized enterprise covers large part economy. This report discusses about types of entrepreneurial
ventures and their relation to typology of entrepreneurship. Firms perform all activities which are
essential for establishing good brand name.
Further this report covers the topic importance of small businesses
and business start –ups which will contribute to the growth of the social economy after ‘Brexit”,
characteristics, traits and skills of two successful entrepreneurs which differentiate them from
other business manager. Jeff Preston Bezoz is American technology entrepreneur, investor and
philanthropist which was born on 12 January, 1964 in New Mexico. He is the founder and
chairmen of Amazon. Jack Ma Yun is founder and CEO of the Alibaba group. He completed
graduation from Hangzhou Normal University (BA) and post-graduation from Cheung Kong
Graduate School of Business (MBA). End of the report discuss about background and experience
that hinder and foster entrepreneurship.
1. Differentiation between types of entrepreneurial ventures and their relation to typology of
entrepreneurship
Entrepreneurial ventures: It can be defined as a start-up entity which is concerned with
the growth and profits. Businessmen invest their money in order to gain financially and develop
themselves. They undertake various activities which are essential in fulfilling the requirements of
customers. Entrepreneur develop idea and products to satisfy the needs of potential buyers and
improve the existing services (Brenkert, 2017).
Different types of entrepreneurial ventures are as follows.
Small business: it can be defined as a company employing less than 50 employees and
with limited amount of turnover. It is privately owned and managed by the individuals, it has
close control over the decision-making process and the operation of business. They do not have
enough funds to get their company registered, government provide them preferential tax benefits.
They offer innovative products and services in order to capture large market share. For example,
grocery stores, bakeries, hair dressers etc (Scarborough, 2016). This is for example, Palm 2
grocery store in UK.
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Medium size business: Small scale business gradually grow and develop themselves and
results in a medium business. If an organisation earns more revenue, then it invests money in
expanding their operations, development of buildings and equipment’s. Eventually the gap
between small and medium size business widen. For example, furniture, garment factory,
clothing etc. This is for example, Verco, dealing with furniture’s in UK.
Micro business: it is defined as enterprise which operates on a very small scale
employing less than 9 people. Business is financed by microcredit which is a common term used
by entrepreneurs. They earn to serve their family and provide them living, micro business does
not expand their business because of limited amount of funds they have. For example, Weaving,
dying industries, etc (Kierzenkowski, Pain, Rusticelli and Zwart, 2016). This is for instance the
Bristol Weaving Mill and Gainsborough, situated in UK.
Typology of business
Social business: This type of organisation is designed to resolve the social issues of the
society, it is financial stable. Profits earned by business are reinvested for the growth and
development of social welfare by subsidizing the products, manufacturing of quality products. It
is not dependent upon the grants provided by private or public organisation. It focuses on
eliminating or reducing the poverty by providing them with valuable services. In order to
maintain financial and economic sustainability they deal with environmental consequences. This
is for instance, Oxfam, operating as an NGO in UK.
Large organisation: Large organisation is termed as a business which can hire 250 or
more employees. There main objective is to maximise profit and expand operation overseas to
capture market share. Activities consist of large transactions which are essential in achieving the
goals and mission of business. For example, Apple, Google, General motors, etc (Suddaby,
Bruton and Si, 2015).
Scalable business: Scalable business has greater opportunity of expanding their
operations without affecting its operation cost. Entrepreneur focus on increasing their revenue
and income, thus by minimising the expenses which are incurred in the process. Scalable
business is essential in achieving the valuable target relatively short duration (Ford and
Goodwin, 2017).
2. Similarities and differences between entrepreneurial ventures
Similarities
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Basis of similarities Micro, small and medium-sized organisations
Revenue Firms perform all activities which are essential
for establishing good brand name. This will
result increasing the amount of revenue
generation. Entrepreneur critically evaluate the
needs and desire, on basis of that they develop
products and services.
Goals They have main goal of expanding operations
and maximising the turnover of the business. It
delivers valuable services and products to
establish good customer relation.
Control Entrepreneurs has control over all transaction
of business, they are alone responsible for loss
and profits. All important decisions are taken
by them, to accomplish the target.
Services and products As their focus is to satisfy the demands of
customers they design products and services
according to their requirement. It has flexible
production process, if the demand of particular
products changes they can immediately lower
down production and modify it.
Economies of scale Business operates on economies of scale
because they lower down the production cost
and increase profits. Economies of scale
provide business with various growth and
development opportunities.
Important elements of growth They adapt standardise and innovate
manufacturing techniques in their procedures
in order to get competitive advantage. They do
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not have enough resources and capital for
growth, so they save profits and revenue
generated.
Stakeholders Business look after the requirement and desire
of stakeholder like customers and employees.
Management encourage them to put efforts in a
common direction to accomplish the given
target.
Resources They optimally utilize resources of enterprise
in order to provide valuable services and
produce desire output with available financial
resources.
Availability of funds Funds are not easily available to them because
they have initially started their operations. It is
difficult to identify the potential investors,
willing to invest in projects. Entrepreneurs start
ventures with minimum capital.
Differences
Basis Micro Small Medium-sized
organisations
Definition This is a part of small
business which has
maximum of 9
employees working
together to accomplish
the goals of the
business. It has small
amount of capital and
earn for fulfilling the
It is essential in
growth and
development of the
economy as it consist
of large part.
Government provide
them with grand and
various benefits to
encourage
Further growth and
development of small
business, result in
medium size
enterprise. They
implement innovative
ideas and policies to
gain the competitive
advantage. They earn
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requirements of the
family.
establishment of small
companies in
backward areas.
profits and reinvest it
in growth and
expansion, to increase
the sale.
Management skills It is important to have
this skill because they
alone manage all the
operations of business
and has minimum
number of workforces.
All activities are
controlled by the
entrepreneur alone,
lack of staff members
make this skill
essential for small
business.
They provide guideline
employees to work
together, to achieve
goals and objectives of
business.
Entrepreneurs
implement creative
ideas to enhance
productivity and
increase profits.
Flexibility Entrepreneur follows
rigid guidelines
because they do not
have enough resources
and capitals.
They are flexible and
develop products
according to market
demand.
It can minimise its
production and modify
the existing
productions according
to client’s requirement.
Brand recognisance Poor brand image, as
they are newly
established venture,
people do not have
trust on the brand.
People are not aware
about their existence;
very small percentage
of people recognize
the brand and its
image.
Medium size business
is a successful small-
scale business and has
developed certain
brand image which
they have gained
through marketing and
advertising.
Examples Weaving, dying
industries, etc. This is
for instance the Bristol
Grocery stores,
bakeries, hair dressers
etc. This is for
Furniture, garment
factory, clothing etc.
This is for example,
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Weaving Mill, situated
in UK.
example, Palm 2
grocery store in UK.
Verco, dealing with
furniture’s in UK.
3. Statistical Data representing micro and small businesses impact on economy
Micro and small-scale business is an effective tool for growth and development of the
business. Economic growth of the country is supported by development of growth opportunities,
innovative and creative ideas and social integration (Iversen, Malchow-Møller and Sørensen,
2016). As it employee fewer of 250 employees, which consist of large part in the economy. In
order to manufacture the effective products and services they identify the desire of the people.
Growth and expansion of SME has resulted in improvement of living standard of individual by
delivering them valuable services. According to the statistic of UK SME cover 92% of the
business operations. As it is new established venture it need employee to perform all operations
and activities thus, by creating maximum job opportunity up-to 65%.
SME play vital role in the economic growth and development in the united kingdoms
because it has resulted in reducing poverty level and maximising the income and revenue
generation. Growth rate of 6% has be declared by the research study which was conducted by
National Endowment for Science. Government provide various benefits like tax deduction to
this sector in order to encourage their establishment. Gross value added of the UK economy is
20.4% which consist of the fifth position.
Private and financial institution supports its development and growth procedures because
they have insufficient funds and resources. They country has become the 20th largest economy,
by decreasing the share of poverty by 50% (Failla, Melillo and Reichstein, 2017). According to
the statistic 5.2 million of small and medium-sized organisation were performing its commercial
activities. Sustainable business environment can be created by motivating and encouraging
employees to participate in the business process. Gross domestic product (GDP) was reported to
be high thus by resulting in overall increase in sale. It can be stated that government has become
successful in growth and development of SME. They have increased living standard of people,
by providing them quality products at reasonable price. Sector has capability of contributing
towards the potential growth economy thus, by creating positive impact. According to the survey
conducted United Nations Industrial Development Organization (UNIDO) small business are
labour intensive organisation and need large numbers of workers for performing operations.
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Impacts of SME
 SME is usually established in remote areas thus by creating job opportunities for people
living in that particular area. Individual will have more income generation and they can
afford quality products and services.
 Small organisation has increased level of competition in UK market, every organisation
aims at rendering valuable products with economy price. In order to capture the supreme
position in the market they design products according to customer's requirement, thus by
increasing productivity (Parker, 2018).
 It is essential for them to capture the market and increase the base of customers, as they
are new established ventures. According to the statics it can be said that SME cover
larger section of growth and development in comparison with other industries globally.
 In order to deal with the dynamic changes which is happening around the business-like
changes in client’s attitude and taste. They develop products at affordable cost, which
help in improving standard of living.
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Illustration 1: SME impact on economy

(Source: Small Business Statistics, 2017)
4. Importance of small businesses and business start –ups which will contribute to the growth of
the social economy after ‘Brexit
Brexit is refereed as abbreviation “British Exit”, it was decision taken on 23rd June 2016. This
vote has disturbed the global markets because of the fall in value of currency. 51.9% People has
voted to in favour of “leave”. UK was encouraged to join European communities, membership
was accepted by referendum in 1975 (Chen and Thompson,2016).
Small and medium-sized business are negatively affected by this decision, it has long
term impact on the development of business (Morris and et.al., 2018). Growth rate of UK
economy was declined, figure of the rate was projected up-to 0.7%. Small business has been
considered as an important part of the economy of UK, due this it has direct impact on GDP of
the country. Fall in gross domestic product has affected the overall business operations of buying
and selling of products.
It was observed that manufacturing and construction business were declining, figures
estimated was 0.8%. Due to lower field operation it can be seen that small business is liable for
declining economic rates. In comparison to large firm, SME find difficult to arrange funds and
investments this make it weak. Main reason behind falling GDP is that sector struggle to come
out of the debts and repay borrowed amount. Manufacturing industry of UK were benefited
because of increasing percentage of exporters (Upadhyay, Jahanyan and Dan, 2014).
Low capital development in SME has hinder the growth and development of the
economy, this can be termed as a negative impact. Due to uncertainty of Brexit technological
industry which forms of major part in the sector were being affected. This adverse situation has
led to instability within the sector (Brooksand et.al., 2014). Complex rules and regulation have
created negative situations for the industry, it minimised growth opportunities.
UK compromises of 5.7 million of small and medium-sized industries, out of which
maximum were private. As it is a new venture it requires employees in order to carry out
business process effectively, it provides job to many individuals of the country. In 2010 it was
estimated that approx 2 million people were given employment. According to economic forecast
which was conducted by the entrepreneur, Brexit will have impact on the future strategic plans
(Levy and Powell, 2015).
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Growth of commercial activities were negatively affected by this circumstance, because
of decline in export of the country. EU labours were not willing to work for UK company
because of high trade traffic rates. Brexit has adverse effect on the financial institution and big
organisation, as a result they were losing clients (Autio and Wright, 2014). To increase
productivity, they expanded operations over sea and established good relations with other
countries. Due to Brexit there was fall in the currency of the country which discouraged people
from investing project development proposals.
UK attracted the attention of potential buyers of other countries this has led to increase in
the export. It was noticed boom in the manufacturing sector because customers prefer buying
products with minimum cost. In the year 2014, it was observed the biggest expansion in this
sector. In order to encourage export government has reduced the tax rates and provide subsidy to
the industry. UK exporter cost was figured £27 billion, according to research study organised by
Oliver Wyman (Hayter, C Lubynsky and Maroulis, 2017). It was essential to monitor the export
tariffs because of the fluctuating prices, it has resulted in the positive impact with increase in
15% exporting. Further moving with this scenario, there are still many issues that are to be
resolved to maintain stability in the economy (Bernroider, 2014).
5. Determining the characteristics, traits and skills of two successful entrepreneurs which
differentiate them from other business manager
Jeff Preston Bezoz is American technology entrepreneur, investor and philanthropist who
was born on 12 January 1964 in New Mexico. He is the founder and chairmen of Amazon and
completed his graduation in electrical engineering and computer science from Princeton
University in 1986. Initially his career was started by working in wall street and later he founded
Amazon in 1994. Start-up of business was from the online book store then afterwards the
organisation expanded operations by including variety of products. Currently it is world’s largest
online company which provide valuable services to its customers.
Characteristics, traits and skills of Jeff Preston Bezoz
Risk Taker: Jeff Preston Bezoz identified the future uncertainty and developed cloud
infrastructure services via it amazon Web Services arm. Entrepreneur effectively allocated the
resources of business and develop strategies to deal with the risky business environment. This
skill requires high decision-making power and flexibility to face the failure. Bezos identified the
potential of online business and started his business (Hayter, C Lubynsky and Maroulis, 2017).
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Innovative: Creative ideas is essential for starting up new business, it requires critical
analysis of the market environment. In order to expand business operations Bezoz implement
innovative ideas by introducing series of e-readers The Amazon Kindle in 2007. it established a
good brand image of electronic book market internationally (Bernroider, 2014). Individuals
critically evaluate the business environment, on the basis of observation the improve existing
products and services.
Leadership skill: Business experience down fall and failure, it is significant to have this
skill to motivate employees to achieve goals and objectives of business. eff Preston Bezoz
motivate and encourage workforce to work together and develop feeling of trust between each
other. Entrepreneur have communication skill to deal with potential clients and influence them
to buy products from Amazon. Another successful entrepreneur is Jack Ma Yun is founder and
CEO of the Alibaba group. He completed graduation from Hangzhou Normal University (BA)
and post-graduation from Cheung Kong Graduate School of Business (MBA). Entrepreneur was
born on 15 October 1964 in Hangzhou China, he is the richest person with net worth of US$38.6
billion.
characteristics, traits and skills of Jack Ma Yun
Passionate: Jack is committed towards his work and spend maximum hours in working for the
welfare and growth of the enterprise. Being passionate is considered as an important trait of a
businessman. Success of Alibaba groups depend upon his passion and positive attitude towards
theoretical skills.
Foresight: Jack Ma believed that foresight is essential for growth and development of the
enterprise. In order to become one step ahead form its competitors, he motivates employees to
actively participate in business process. Development if critical thinking motivate entrepreneur to
set up benchmark for another organisation.
Self-confidence: entrepreneur is alone responsible for all decision which are essential for
making business successful. Jack Ma continuously promote Alibaba and deliver valuable
experience to its potential buyers. Entrepreneur possess the self-confidence trait spread
awareness about the innovative idea of e-commerce web portable (Autio and et.al., 2014).
From the above it can be concluded that there are various skills and characteristic which
inspire and motivate entrepreneurs to become successful.
Entrepreneurial personality reflecting motivation and mind set of entrepreneurs
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Jeff Preston Bezoz invested his time and money to make the idea of online business
successful. Entrepreneur works hard because of high level of concentration, which they possess
in their job. Motivated Jack Ma, influence staff members and encourage them to accomplish
goals and objectives of Alibaba. Effective communication is essential for delivering clear vision
of the company and provide guidelines to achieve it. Both entrepreneurs are optimistic about
future and they look forward for future growth. In order to become successful, they must be goal
oriented and develop plans to achieve it.
6. Few practical examples which is essential in examining about background and experience that
hinder and foster entrepreneurship
Factors that foster the growth and development of entrepreneur
Economic factors: Funds are required for establishing the new business, Jeff identified
potential source of capital to expand and develop the business. Amazon has sound financial
capabilities for investing in the software essential in designing of cloud. Entrepreneur
anticipates the future requirements of the resources and plan its distribution chain. For example,
amazon identified its buyer’s requirement and decided to develop its online services.
Technologies is used in satisfying the demands of customers and enhancing the value of services
and products delivered (Brooks and et.al., 2014).
Education and technological qualification: It play key role in development and growth
of the business, in order to develop products its essential to have this trait. Jack education
emphasis on the innovative ideas which was used by Alibaba to create good brand image in-front
of public. Entrepreneur garb the best opportunities from the available alternative and create
flexible and efficient procedures. They must be capable enough for resolving the disputes that
arise at the workplace and encourage team work.
Factors hindering growth of entrepreneurs
Labours: Quality of workforce is an essential factor which has negative impact on the
entrepreneurship. It is difficult to get cheap labour and skilled labours which are efficient at their
work. To perform business operation in a desired manner it is essential to have qualitative
workforce. In the initial stage Jack find difficult to arrange workers, as it was a new venture
(Morris and et.al., 2018).
Limited revenue: starting up of new business is a complex procedure, as firm is new in
market they struggle to create good brand image. Customers prefer buying product from well-
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established and reputed organisation. Selling products online was an innovative idea, people do
not trust online products and services. Initial stages of business have low level of income, so it is
significant to stay goal orientated at time of failure and complex situations.
CONCLUSION
This project concluded about Small scale business gradually grow and develop
themselves and results in a medium business. It is privately owned and managed by the
individuals, it has close control over the decision-making process and the operation of business.
The current report is divided into 4 major parts with a foremost section, exploring distinct type of
entrepreneurial ventures, followed by assessing the effect of small business organisations on UK
economy. It has then summarised the key features of an entrepreneurial attitude by lastly
examining the surrounding that raises or hampers the tact of entrepreneurship. Further this
assignment explained about Growth rate of 6% has be declared by the research study which was
conducted by National Endowment for Science. Government provide various benefits like tax
deduction to this sector in order to encourage their establishment. End of this report concluded
that funds are required for establishing the new business, Jeff Preston Bezoz identified potential
source of capital to expand and develop the business.
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