(PDF) Entrepreneurial Ventures and Small Business

ENTREPRENEURIAL
VENTURES

TABLE OF CONTENTS
ACTIVITY 1........................................................................................................................................3
P1 Different types of entrepreneurial ventures and how they relate to the typology of
entrepreneurship...............................................................................................................................3
P2 Similarities and differences between entrepreneurial ventures.................................................5
M1 Entrepreneurship in public and private sector...........................................................................6
D1 Scope, development and growth of entrepreneurship ventures.................................................7
P3 Micro and small business impact on economy...........................................................................8
M2 Evaluation of different small, medium and large business make to the economy..................10
P4 Importance of the small business in growth of social economy...............................................11
D2 Impact of small business different economy............................................................................12
REFERENCES...................................................................................................................................13

ACTIVITY 1
P1 Different types of entrepreneurial ventures
and how they relate to the typology of
entrepreneurship
Entrepreneurship is an unavoidable life calling
pursued by those who are fortunate enough to
take chances. Entrepreneurship is the process of
making profit on own risk, start a new business
with an innovative idea which can differentiate
with the existing businesses or similar to the
existing businesses. It is the line to being small
business owner. Micro and small size business
contributes a major part in the economic
development of the country.
Small business
 Small business introduced with
established product and services
 Limited growth with continually
profitability
Entrepreneurship ventures-
 Entrepreneurship venture focuses on
innovating new idea.
 It targets growth with high revenue.
Types of entrepreneurship venture
Micro enterprises- Micro enterprises
exist in all around the world such as very small
shops, ice cream parlour etc. Micro business
considers maximum 10 employees in the
business. They add worth in the economic
development. To introduce the micro business, a
little capital needed. Cultural entrepreneur are
the agent of cultural change and resources
visionaries who organise cultural, finance, social
and human capital. Cultural entrepreneurs share
the same goal of business to better
society(Storey, 2017).
Small enterprises- The small business
operates more than 10 and fewer than 50
employees. It is the severally owned business
which operates with limited size and capital.
Some examples of small business are small
restaurants, law firms, engineering and
architectural firm etc.
Medium enterprises- Medium scale
enterprises made up with more than 50
employees and less than 250 employees. These
entities emerge from the slow and steady growth
of business. To introduce the medium business
there is need to heavy capital with building,
equipment, recruitment of more employees.

Large enterprises- Large-scale
businesses exists with more than 250
employees, in more complex management than
in the medium-scale businesses. They have
outstanding number of business transaction
daily. Such enterprises are characterised by
many clients, business contacts, and large
volume of business communication.
Different types of entrepreneurship typology
relates with entrepreneurship are following
Social entrepreneurship- Social
entrepreneurship comes into market to
understand the needs and wants of the people to
solve their problem. It focuses on social demand
and how to solve the problems of customer and
fulfil their needs. Social entrepreneurship does
not focus on making profit and market share.
Intrapreneurship- Generally this type
of entrepreneurship typology considers in large
business. It is the concept in which an employee
who is working with an organisation, act like
entrepreneur. This refers to employees who take
responsibilities for creating innovation and idea
(Mariotti and Glackin, 2015).
Serial entrepreneurship- It considers a
person who comes with new ideas and start the
business. The serial entrepreneur starts one
business and work for it, until it change state
profitable. After that they sale the business then
again start new enterprise. A serial entrepreneur
is not involved with the individuals' company.
Own manager- Own-manager creates
and manage the business with taking own risk
and capital. It is the entrepreneur who introduce
the business with new idea or innovation or it
may be possible that they introduce the business
with existing product or services. Own manager
is the person who starts the business with his
own risk and resources. The person who is
capable to take risk for start the business and
make profitability. They raised capital from
bank loan, society loan etc.
Intrapreneurship is linked to the
typology of entrepreneurship in public sector. In
this type of entrepreneurial venture worker are
given high importance to achieve the growth
and improvement of economy. The typology of
social entrepreneurship can be linked to the
small business because generally the
entrepreneurs who want to fulfil the satisfaction
level of themselves, comes with small business.
Feminism related with the micro business, they
often choose micro business

P2 Similarities and differences between
entrepreneurial ventures
Differences
Micro
 This type of business can by anyone
because it is easy to introduce small
business.
 It starts with a little capital
 Decision making: business owner
 Employees: maximum 10
 Type of organisation: Ice cream parlour
 Income: below $100000
Small
 In this business the employees are more
than 10 and fewer than 50, with little
capital.
 It needs to little capital but more than
micro business
 Decision making: entrepreneur.
 Employees: More than 10 and less than
50
 Type of organisation: Supermarket store
 Income: below $750,000
Medium
 In medium business the employees are
more than 50 and fewer than 250, with
lot of equipment and capital.
 Medium enterprise starts with land,
equipment and resources.
 Decision making: by all business
partners.
 Employees: More than 50 and less than
250
 Type of organisation: Red cross which is
voluntary organisation
 Income: 271.42 million
Macro
 It is the business which make existence
worldwide. It exists with more complex
management than medium business.
 It needs more capital than medium
enterprises.
 Decision making: Depends on all
stakeholders.
 Employees: More than 250
 Type of organisation: Tesco is a
public organisation.
 Income: 55.9 billion
Similarities among micro, small, medium and
large corporation - They major similarities
among all of them are-
 All are able to taking risk
 Identifying the market to better
performance
 look at business opportunities
 Use of social media, online marketing
and other sources
 They all take care of their understanding
while decision making.
 Making profit.

M1 Entrepreneurship in public and private
sector
Public sector entrepreneurship- Public
sector entrepreneurship is defined as the
announcement of innovative public policy
initiatives that generate greater economic
prosperity by transforming a status-quo
economic environment into one that is more
conducive to economic units engaging in
creative activities in the face This type of
ventures governed by government with taken
maximum shares(Wang, Jessup and Clay,
2015).
For example Tesco is the public limited
organisation. Tesco is the retail chain company,
exists in UK. It is the third largest retailer in the
world. This company is owned by many people
as a shareholder because it the public
organisation. Tesco has a hierarchical structure.
It is a functional structure as it concentration on
the different departments in the enterprise.
Private sector entrepreneurship-
Private sector entrepreneurship is mainly
introduced by individuals who are able to taking
risk. In this entrepreneurship the role of
government is less. Their main aim is to make
profit.
For example Greenergy is the limited
company which is distributor of petrol and
diesel in UK. It is owned by shareholders such
as Tesco 34%, Owen's family 24%, Caradog
24%. It introduced as a local fuel distributor.
Corporate entrepreneurship-
Corporate entrepreneurship is generally referred
to the development of new ideas and
opportunities within large or established
businesses. This type of entrepreneurship
directly leading to the profit of organisation. It
starts to aim of making profit.
For example Lloyds Banking Group plc
is a major British financial institution, which is
the second oldest bank in UK. Lloyds Banking
Group's action are organised into Retail
Banking, Commercial Life, Pensions &
Insurance and Wealth & International.

D1 Scope, development and growth of entrepreneurship ventures
Entrepreneurship business provides good
scope in small business.
Micro and small business- An entrepreneur has
an opportunity to grow with the small business.
Small businesses have a large contribution in
economic development of the country. It is easy
to start the new business with new idea or
existing products, an entrepreneur can only
achieve the profit in small business.
Medium and large enterprise- Medium size
enterprises have scope to develop the business
and earn profit or try to convert the business in
macro organisation.
Macro business- This type of enterprise
contributes in economic development and they
have scope to develop their business to open
different branches in other countries.
One thing is shown in the statistics that
the scope and development of the ventures are
open for the micro business because 99% of
the total businesses are conducted by micro and
small ventures. Through this it is concluded that
the growth of micro and small business will
develop in the future and business will borrow
the ventures in the competitive world.

P3 Micro and small business impact on
economy
Success and failure rate -According to
the Small Business Administration close to
66% of small businesses will survive their first 2
years. What that means is that only about one-
third of total businesses will fail during the first
2 years. The SBA also tells that about 50% of
businesses fail during the first year in business.
Contribution of large business-
Raising the employment rate of the population
aged 20-64 from the current 69% to
75%.Raising the investment in R&D to 3% of
GDP. Meeting the EU's climate change and
energy objective for 2020 to cut greenhouse gas
emission by 20% and source 20% of its energy
needs from renewable sources(Large companies
for economy, 2018).
Micro and small businesses - They
have impact on whole economy. Its study of
Organizations House data suggests a total of
10,016 software evolution and programming
enterprise were organized in the UK for the first
time during 2017, that represents a 59 %
increase on the 6,300 organisation set up in
2016(Menkiti and Ward, 2016).
Small
 There are 28.8 million small businesses
(with 500 or fewer employees) in the
U.S.
 Small businesses account for 99.7% of
all American business
 Small businesses employ 56.8 million
people, 40.8% of the private workforce
Large
 Large business accountable for
remaining 0.3% business in UK.
 Large business employ 43.2 million
people.
Which is the best - 8 out of 10 entrepreneurs
who start businesses fail within the first 18
months, according to Bloomberg. It's a
staggering statistic. Fully 80% of businesses
will fail in less than two years. The small
business are better than the large business
because it makes more contribution in economic
development and employment rate.
According to the department of business small
and micro business provided 15.6 million jobs
which is 60% of total private sector
employment. In next three years small business
provided 250000 new jobs. It has been
concluded that small and micro business play
major role in distributing the jobs. Small
business is on majority to job creation in last
five years(Employment and job creation, 2018).
Before two years in 2015 there were a
record 5.4 million private sector business. There
were 99.9% businesses recorded with small to

medium size business and 99.3% are small
business in whole UK. Small size business
paying a leading role in women representation.
Through the record of 2015, less than 10% of
executive directors were women. There are
approx 1.5 million women self employment
which represent an increase of around 300000
since before the economic downturn. Between
2008-2011 the record has noticed 80% of the
new self employed were women(UK Technology
Start-ups Hit All-Time High, 2017).

M2 Evaluation of different small, medium and
large business make to the economy
In UK small business make a big
contribution to develop the economy. There
were 5.6 million small business at the end of
2018. Private sector employment rate is
increased by 2%. Small enterprise accounted for
99.3% of all private sector business enterprise at
the start of 2018. There are 5.7 million SMEs in
the UK which is over 995 of all business. There
are 20 British companies which comes in other
top 500 companies.
Job creation - SMEs also play a very
critical role in the world economy by
contributing to the employment scenario along
with the input and output. There are certain
points to be understood here. As per a report
published in 2015, approximately 600 million
jobs would be required worldwide over the next
15 years.
Large business also make a big
contribution in the economic development of the
country. Large businesses have many branches
in all around the world and that is also called
small business. Large business accountable for
remaining 0.3% business in UK. Large business
employ 43.2 million people. Through large
business the employment rate is increased and it
makes big contribution in economy. Large
business having more than 250 employees in
organisation(Scarborough and Cornwall, 2015).

P4 Importance of the small business in growth
of social economy
The social economy is formed by a rich
diversity of enterprises and organisations, such
as cooperatives, mutuals, associations,
foundations, social enterprises and parovarian
institutions, sharing common values and
features Primacy of the individual and the social
objective over capital. It considers cooperatives,
group of social associations etc. Small
enterprises play a big role in the prosperity of
the economy. Small business focuses on
creating relations to the customers and find the
needs and wants of the customers and this thing
put contribution in product development. It will
be helpful for developing economic growth of
the country. The small business in US are
having a great impact on the social economy.
 Small businesses make its big
contribution in employment. They give
the employment to the local people of
the society and it decreases the
unemployment very closely.
 Employing Local Workers.
 Small businesses contribute to local
economies by bringing growth and
innovation to the community in which
the business is established.
 Small businesses tend to attract talent
who invent new products or implement
new solutions for existing ideas
 It creates standard of living which
through a person can live with status in
society.
 Favours citizen engagement and
voluntary work.

D2 Impact of small business different economy
Local level of economy- Small business
creates employment and the people create the
standard of living through the job which affects
the local economy.
Regional level of economy- Formation
of new enterprises creates employment for
individual and potentially others which add to
the total stock of jobs. These enterprises also
develop new capacity, bring new products and
services, as well as add diversity to local areas
and contribute in regional economy. It promotes
social values and try to boost sales of regional
goods.
National level of economy- Small
enterprises are the backbone of the economy of
UK. These businesses driving growth, opening
new markets and creating jobs therefore their
contribution is vital. All small business
contribute in economy at big level(Laudano,
Marzi and Caputo, 2018). The small business
contribute in local government taxes which
helps in economic development.

REFERENCES
Books and Journals
Laudano, M.C., Marzi, G. and Caputo, A., 2018. A decade of the international journal of
entrepreneurship and small business: A bibliometric analysis. International Journal of
Entrepreneurship and Small Business.33(2). pp.289-314.
Mariotti, S. and Glackin, C., 2015. Entrepreneurship & small business management. Pearson.
Menkiti, M. and Ward, T., 2016. Keeping the business afloat: Entrepreneurship in the small independent
hotel sector in Nigeria. Worldwide Hospitality and Tourism Themes.8(2). pp.216-220.
Scarborough, N.M. and Cornwall, J.R., 2015. Entrepreneurship and effective small business
management. Pearson.
Storey, D., 2017. Six steps to heaven: Evaluating the impact of public policies to support small
businesses in developed economies. The Blackwell handbook of entrepreneurship, pp.176-193.
Wang, X., Jessup, L.M. and Clay, P.F., 2015. Measurement model in entrepreneurship and small business
research: a ten year review. International Entrepreneurship and Management Journal.11(1).
pp.183-212.
Online
Brexit’s impact on small businesses.2015.[Online]. Available through.<theconversation.com/brexits-
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Large companies for economy.2018.[Online]. Available
through.<https://www.euractiv.com/section/trade-society/news/bigger-is-better-large-
companies-good-for-the-economy-study-finds>.
UK Technology Start-ups Hit All-Time High. 2017. [Online]. Available
through.<https://www.forbes.com/sites/davidprosser/2018/04/06/uk-technology-start-ups-hit-all-
time-high/#55f5ba1c5d85>.