Types of Entrepreneurial Venture and their Relation to Typology

This booklet explores different types of entrepreneurial ventures and evaluates their similarities and differences. It discusses the importance of small businesses in the social economy and the impact of startups on economic growth. The document also includes an interpretation of relevant data and statistics on the impact of micro and small organizations on the economy.

Entrepreneurship and
small business
management

INTRODUCTION
P1 Different types of entrepreneurial venture and how they related to the
typology......................................................................................................................... 2
P2 Evaluate similarities as well as difference of between
entrepreneurial venture.......................................................................................... 3
P3. Interpretation and assessment of relevant data or statistics for
illustrating impact of micro and small organizations on economy:...............4
........................................................................................................................................... 4
P4. Explaining importance of startups and small businesses for growth of
social economy:............................................................................................................ 5
1

INTRODUCTION
Entrepreneur can be described as an individual that creates new venture with an innovative approach
and bears risk as well as enjoy rewards of such business. This booklet covers different kinds of
entrepreneurial venture and evaluates its similarities as well as differences. Further, importance of small
businesses in social economy is explained.
P1 Different types of entrepreneurial venture and how they related to the
typology
Entrepreneur refers to a person that is focused on developing innovative ideas and pertains
capability of implementing such ideas for establishing and running business successfully.
Entrepreneurial venture indicates an enterprise which focuses on opportunism as well as
innovation for production of economic value and social value. Entrepreneurs run such organizations
with the motive of earning revenue by carrying out activities of business in legal manner.
Various types of entrepreneurial ventures are classified below:
 Small business: This entrepreneurial venture is operated and managed at a small level and
pertains objective of earning a livelihood with profit that is generated from such business
activities. An example of small business is 'Planet of the grapes' which is a wine bar and
restaurant that is situated in London, United Kingdom.
 Large company: It can be described as an organization which incorporates business
activities at large level and hence pertains finite business cycle. Apart from it,
involvement of sustainable innovation is high on large company entrepreneurship as it
consists high technological advancements. For example, 'Tesco' is a large company
that is based in United Kingdom.
 Social: This entrepreneurial venture supports and promotes activities of
society welfare by producing innovative products which helps in solving
problems of society and satisfies its requirements. Hence, it develops
funds as well as implements solutions for issues of society, culture and
environment. For example, 'Impact Hub' is a social enterprise in United
Kingdom which support people for growing social business.
 Scalable start up: This type of entrepreneurial business indicates
starting on a venture on the basis of some unique idea. 'Trouva' can be
considered as an example of scalable start up entrepreneurship which is a
boutique that bridges online as well as offline operations.
Entrepreneurial venture typologies can be described as segmentation of
various things of different types in accordance to various basis. Following are
different typologies of entrepreneurial in relevance to its link with entrepreneurs of
above mentioned ventures:
 Life Style: It indicates creation of business by an individual with the
motive of achieving personal goals rather than just profit making. Some
of the desires of such entrepreneurs are independence, value, self-
satisfaction, happiness etc. 'Dominique Auroy' who founded small
business named 'planet of the grape' and 'Jonathan Robinson' which is the
founder of 'Impact Hub' comes under this typology.
 Growth Firms: Such type of venture is established for gaining
maximum profit by achieving goals or objectives of an organization.
Here, main focus of entrepreneurs is on implementing innovations and
enhancing volume of sales for effective development and expansion of
business. Entrepreneur named, Jack Cohen, who founded a multinational
retailing company Tesco comes can be considered as an example of this
typology.

P2 Evaluate similarities as well as difference of
between entrepreneurial venture
Various types of ventures of entrepreneurial consists some similarities as well as some
differences. Following are some differences between these entrepreneurial ventures:
Definition: Small scale business operates small level and hence requires less number of
working staff and low capital investment. Whereas, Large company can be described as
that organization which incorporates business activities of large scale. In contrary, Social
venture can be explained as an enterprise that is established for the purpose of providing
systematic solutions for achieving sustainable social objectives. At last, Scalable start up
incorporates an innovative idea and a business model which is scalable and repeatable that
leads to growth and enhancement in profitability.
Features: For Small business, limited number of resources are required for establishment of
this venture. Large company consists complex hierarchy of management as large number
of people are employed in it. Social entrepreneurial business involves social purpose and
persists focus on fulfilling demand of society by minimizing its issues with innovative
offerings. Scalable start up focuses on expansion of business operations in short period of
time.
Following are some similarities among different types of entrepreneurial ventures:
 Emphasis of all types of ventures is on increasing satisfaction level of customers by
offering high quality and innovative products and services to customers.
 It caters opportunities of employment for various people.
 Focus is on enhancement of market share and leadership.
 All types of entrepreneurial ventures pertain features of risk taking.
 Area of focus or importance of every entrepreneurial venture is on improvement of
sales by enhancing attraction and retention level of customers.
P3. Interpretation and assessment of relevant data or
statistics for illustrating impact of micro and
small organizations on economy:
Small and micro businesses refer to organizations which are privately owned
and incorporates fewer number of employees. Revenue which is generated by small
organizations are less in comparison to regular sized corporations. Support of government
is provided to such enterprises and it qualifies for preferential tax policies which varies on
the basis of country and industry. In this type of organization, management activities are
controlled by owner and reach of this entity is limited as it operates in small scale.
Overall, small scale enterprises require less amount of capital investment, fewer working
staff, and less equipment for conducting daily business activities.
Chart which is mentioned below evaluates impact of small businesses on
economy:
Figure 1.Impact of small business on UK's economy. 2020
(Impact of small business on UK's economy. 2020.)

Figure 2.Impact of small business on UK's economy. 2020
(Impact of small business on UK's economy. 2020.)
From the above graphs it can be interpreted that prominent role is played by small
enterprises in enhancement of employment opportunities in nation. It pertains positive
impact on growth of economy. Further, this graph states that organizations which operates
at small level serves 40 percent enhancement in total employment of a country (Berger
and Kuckertz, 2016). Other benefits or influence of small firm in context to economic
development is stated below:
 Regional Economy: Small and micro enterprises serves as an essential
component for regional economy of United Kingdom as it leads as a reason for
income generation for most of the people of country which pertains major
influence on its gross domestic product. It generates 25 percent of total GDP of
United Kingdom.
 Local Economy: Startups or small businesses contributes in a positive manner
in relevance to innovative growth of nation. Reason is that entrepreneurial
startups boosts innovation by creating or advancing technological procedures
which add more value to business and local economy.
 National Economy: Small or micro enterprises creates account for more
opportunities of job. It also contributes highly in taxation of a country and
hence, pertains positive influence on national economy. As, total employment
of small organizations in United Kingdom is approximately 16.3 million
(Kraus, Meier and Niemand, 2016).
 International Economy: As small business, such as, coffee shops operates
locally, it provides more opportunities for people to socialize and provides
easier access to people for essential commodities. As, small businesses does not
operate in a international market, it does not possess any influence on
international economy.

P4. Explaining importance of startups and small
businesses for growth of social economy:
Social economy fabricates enriched diversity of organizations or entities, such as,
social enterprises, institutions, mutual associations as well as corporations which incorporates
common values or features. Hence, it is a set of cooperatives or foundations, activity of which is
driven by solidarity values and primacy of people. Importance of small entities in context to
enhancement of social economy is described below:
 Fosters autonomy: Ownership of small business serves as a way of earning
livelihood for large number of individuals. It enhances living standard of people and
reduced their dependency, apart from it, improvisation in small entities boosts
economies of scale and spreads homogeneity.
 Provides employment opportunities: Numerous job opportunities are provided by
small enterprises which leads to reduction in level of unemployment in a nation and
hence positively impacts its social economy. If employment level of a nation will
increase than its disposable income will also rise that ultimately improvises standard
of living of people.
 Boosts domestic culture: Various problems are faced by society in this highly
competitive global era. Small companies play an integral part for local or domestic
economies as it provides financial interdependence which fosters prosperity at broad
level.
 Quick access to products: Small ventures such as, service providers, bakery shop etc.
enhances quicker accessibility of products for customers.
 Community involvement: Small ventures are essential part of community as such
organizations pertains major impact on it. It enables creation of strong client base and
involve community members in decision making (Lumpkin, Bacq and Pidduck, 2018).
CONCLUSION
From the booklet it is concluded that aim of entrepreneur is on earning high amount of
revenue by incorporating maximum efforts. There are various business venture that runs for
different purpose sand impacts on economy as whole.

REFERENCES
Berger, E. S. and Kuckertz, A., 2016. Complexity in entrepreneurship, innovation and
technology research: applications of emergent and neglected methods. Springer.
Lumpkin, G. T., Bacq, S. and Pidduck, R. J., 2018. Where change happens: community‐level
phenomena in social entrepreneurship research. Journal of Small Business
Management. 56(1). pp. 24-50.
Impact of small business on UK's economy. 2020. [Online]. Available through:
https://www.google.com/search?
q=impact+of+small+business+on+uk+economy&source=lnms&tbm=isch&sa=
X&ved=2ahUKEwjGqcqIhKjuAhUG4jgGHZG6DWcQ_AUoAnoECBEQBA&biw=12
98&bih=628#imgrc=FCxrlV-SBFAleM
Impact of small business on UK's economy. 2020. [Online]. Available through: <
https://blogs.lse.ac.uk/politicsandpolicy/business-recession-responses/?
utm_source=feedburner&utm_medium=feed&utm_campaign=Feed
%3A+BritishPoliticsAndPolicyAtLse+%28British+politics+and+policy+at+LSE
%29>