The Impact of Entrepreneurship on the UK Economy

This assignment delves into the world of entrepreneurship, examining the traits and motivations that drive successful entrepreneurial ventures. It highlights the significant contribution of small businesses to the UK economy by generating employment opportunities and fostering a culture of innovation within business organizations.

ENTREPRENEURSHIP AND SMALL BUSINESS
MANAGEMENT

Executive summary
The study defines with proper information regarding the different entrepreneurial
venture along with the relationship with the different type of entrepreneurs. Moreover,
the study also derives the fact that how a person can develop the characteristics in him
or her to become a successful entrepreneur. In order to demonstrate this aspect, the
report takes example of two successful entrepreneurs such as Muhammad Yunus and
Sir Richard Branson. In addition to that, the study also provides a clear set of
information regarding the fact that how their experience and background influences their
entrepreneurship.
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Table of Contents
Introduction...................................................................................................................... 3
Part 1:...............................................................................................................................3
P1. Different types of entrepreneurial venture and their relation with different type of
entrepreneurship...........................................................................................................3
P2. Similarities and differences in between different entrepreneurial ventures............5
M1. Entrepreneurship in public and private sector........................................................5
D1. Scope along with development and growth of entrepreneurial ventures................6
Part 2:...............................................................................................................................6
P3. Impact of micro and small business on the UK economy.......................................6
P4. Importance of small business and start-up organizations regarding growth of the
UK economy................................................................................................................. 7
M2. Impact of small, medium, and large business over the UK economy....................7
D2. Impact of small business over local, regional, national, and international context. 8
Part 3:...............................................................................................................................8
P5. Characteristics of a successful entrepreneur..........................................................8
P6. Reflection of motivation and mindset over entrepreneurial aspect.........................9
M3. Differences in between entrepreneurial characteristics.........................................9
D3. Analysis of the skills and the motivational driving force with examples................10
P7. Impact of background and experience over entrepreneurship.............................10
M4. Link in between impact of personal experience and characteristics to the
successful entrepreneurs............................................................................................11
D4. Positive and negative impact of background over successful entrepreneurs.......11
Conclusion..................................................................................................................... 11
Reference list................................................................................................................. 13
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Introduction
Entrepreneurship is considered as the process that mainly deals with the proper
designing and running of a new business that is initially a small business. In addition to
that, it has been described as the willing nature to develop and run a small business
venture in order to generate a good amount of profit. Talon outdoor is planning to
introduce a diverse nature in their business operations. The report would define the
different aspects that are related to the entrepreneurship. Talon outdoor is thinking of
opening a new branch in the UK having the main motive to diversify their services and
products. Therefore, proper understanding of the different concepts of entrepreneurship
is very much necessary for the management of the organization (Schaper et al. 2014).
Along with that, the study will provide an ample amount of information regarding the
characteristics of a person that could help him or her to become a successful
entrepreneur.
Part 1:
P1. Different types of entrepreneurial venture and their relation with
different type of entrepreneurship
The part of entrepreneurship can be considered as an action of obtaining another
business with making a money related hazard for utilizing the market chances to pick up
benefit in business. The administration area can't give satisfactory work openings and
this can empowered the business people to spread the business over the UK. As per
the possession procedure, the two sort of entrepreneurial endeavors are public
entrepreneurship and private entrepreneurship. People in general organizations make
cooperation with government divisions for running the operations. Despite what might
be expected, the private business visionaries attempt to secure benefit in the
exceptionally focused market of UK. On the premise of business scale, the
organizations can be arranged in small scale entrepreneurships and large scale
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entrepreneurships. These are the central sorts of businesses while the operational sorts
are the social entrepreneurship and start-up entrepreneurship (Spence, 2016). In UK,
the generally observed enterprise typology is the salary substitute entrepreneurship
which has brought about the blasting 5.7 million scale-scale new companies in the
nation.
Aside from that, the lifestyle firm typology is additionally common in the market of United
Kingdom for utilizing the entrepreneurial aptitudes in the new businesses in the market.
Aside from that, the business visionaries additionally profit advertise chances with public
entrepreneurships through working cooperatively with the administration associations.
The typological pattern of enterprise in UK explains around the endeavors for giving
economic structure of the little scale organizations to secure metaphorical capacities.
According to the endeavors of business visionaries, the typology of opportunist and
craftsman are additionally accessible in the market of UK though this can be sheer
useful to profit the open doors in UK showcase. The business enterprise wanders
openly area are considered as administrative entrepreneurship yet the private
enterprises are considered as free enterprise typology (Storey, 2016). The typology of
innovator-OWNER can be seen in numerous entrepreneurial endeavors and the social
business enterprises of UK showcase are generally situated with prospector cum
visionary typological entrepreneurship. The typologies of enterprise are associated
fundamentally with the wander sorts as the idea of business enterprise is enunciated by
the belief systems of the business operations. The typologies uncover the degrees for
the independent companies while the business people can utilize the peculiarities of the
typology to acquire feasible upper hand in the market.
P2. Similarities and differences in between different entrepreneurial
ventures
As it has been mentioned earlier, there are mainly four different type of entrepreneurial
venture. One of them is the small business entrepreneurship. These people have the
intensity to perform something their own. Therefore, they also have the aim to earn a
sustainable amount of profit in order to have a competitive advantage in the business
environment. However, it is tough for them to generate new ideas regarding their
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venture. The large scale businesses for the most part concentrates on the part of
consumer loyalty alongside the fulfillment of the investors so as to draw in benefit. Then
again, the social entrepreneurs concentrates on various issues of the market to create
answer for those through the operational capacities. the large-scale business focuses
on the satisfactory income age with great net revenue to fabricate budgetary quality
while the social entrepreneurs focuses on performing prosperity of the general public.
the social entrepreneurs flourishes for enhancing the way of life of the general public to
improve it yet the huge scale organizations flourishes for acquiring upper hand through
advancement. the scalable entrepreneurship concentrates on making advancement for
expanding the hierarchical residency and width yet the little scale undertakings just
concentrates on upgrading the market data transfer capacity yet not simply the business
to influence a vast business to wander (burns, 2016). The organizations are constantly
anxious to make interruptions in advertise rivalry for advancing their image however the
single possession strength in residential market is focused by the little scale
associations. The entrepreneurial endeavors can have different contrasts yet they are
largely focusing on the part of income age in the market for accomplishing the goals of
the business. All the entrepreneurial endeavors focus for making benefit in the business
to fulfill the investors. The organizations cultivates for making motivational impact to
enhance the nature of administrations for showcase advancement.
On the other hand, according to Qian and Haynes (2014), the scalable startup business
organizations are considered as the innovators as they try to design new product and
services that can meet with the requirements of the customers. Such as the different e-
commerce, startups perform a perfect market analysis in order to understand the
requirements of the customers. Therefore, it can be said that they are quite different in
nature from the small business entrepreneurship. On the other hand, there are some
entrepreneurial ventures having a good financial strength and can easily design the
products and services that can meet with the need of customers. This type of ventures
come across through the different stages of innovation and has the ability to offer new
products and services to the customers (Setianto et al. 2016).The view of income and
riches is diverse is little scale associations and substantial scale associations. the social
entrepreneurship concentrates on social goals however the private concerns targets
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development of riches and people in general business visionaries additionally
concentrates on satisfying social causes. If there should be an occurrence of social
firms, sole dealers and organization are most basic lawful structure while trust affiliation
is regular for the general population business visionaries. The social undertakings are
for the most part with restricted risk with enthusiasm of group.
The small-scale businesses are controlled by proprietors, the medium scale
organizations are controlled by the systems and the huge organizations are controlled
by people in general financial specialists and investors (down, 2010). The top
managerial staff take choices in vast scale, the CEO or head administrator take choice
in medium scale and the individual proprietor takes choice in little scale business. The
small and medium scale organizations targets principally here and now objectives
though extensive substances centers in long haul objectives. The nearby market are the
objective market for little scale business, the specialty market of industry is engaged by
medium scale and the worldwide market is focused by expansive organizations.
M1. Entrepreneurship in public and private sector
First thing that the management of Talon Outdoor needs to consider regarding
entrepreneurship is the fact that how it influences upon the public and private sector of
the UK. When it comes to the private sector of the UK, the entrepreneurship concept
generates an ample amount of job opportunities for the students and the pass outs.
Therefore, it paves the path away for a economic growth in the UK. In addition to that,
according to Blackburn et al. (2013), based on the enhancement of the job
opportunities, the range of production in the private sector would also be enhanced. On
the other hand, when it comes to the public sector, different type of entrepreneurs who
are successful in their respective ventures can invest into different government projects
based on the visibility of the projects. In addition to that, the proper funding from the
entrepreneurs can also help the projects to get completed within the deadline.
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D1. Scope along with development and growth of entrepreneurial
ventures
Based on the definitions and importance of the different entrepreneurial ventures, it can
be said that they has an ample amount of opportunity regarding the growth in the
competitive market environment. The small business entrepreneurship is able to
generate an ample amount of job opportunities that can lead the society towards a
proper growth. In addition to that, the vacancies generates can also enhance the rate of
production for the business organizations. In addition to that, according to Spence
(2016), the sense of innovation in the different ventures can also help the business
organizations to have a proper growth in their respective field. The proper utilization of
different technical advancements can help the business organization to meet with the
customer’s requirements. Therefore, the management of Talon Outdoor needs to
understand the fact that how they can achieve the sustainable position in the entire
business environment (Bennett, 2014). On the other hand, the large-scale business
ventures have the financial strength and on that basis, they can easily meet with the
need of the customers. Along with that, they can also satisfy the aspects related to
innovation. Therefore, Curran and Storey (2016) said that, different entrepreneurial
ventures has the ability to maintain a growth in their respective business platforms.
Part 2:
P3. Impact of micro and small business on the UK economy
Along with the large business organizations, small business organizations are also
considered as the pillars of the UK economy. In 2014, there were near about 5.2 million
businesses in the heart of the UK. Near about 97% of those businesses are of small
and medium business organizations. Therefore, it can be easily evaluated that the small
business industry has a great impact over the UK economy. The major business
organizations have employed 10 people each. It resulted up to near about 33% of the
total employment. In addition to that, the country has a rate of turnover that is only 19%
in 2015. In addition to that, it has been found that before the recession period of 2008,
the majority of the business organizations that impacts upon the UK economy are small
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and medium business enterprise (Ratten, 2014). Therefore, it helped the country to
reduce the rate of unemployment and enhance the production in terms of new and
innovative product and services.
P4. Importance of small business and start-up organizations
regarding growth of the UK economy
If the small business organizations are compared to the large-scale business
organizations, then it is tough for them to generate a huge amount of profit such as the
large-scale business transitions make. However, the small and medium business
organizations have a great influence over the UK economy. As the small business
organizations look for the local people to be employed in their business organizations,
therefore it can easily reduce the issue of unemployment from the society (Wach and
Wehrman, 2014). In addition to that, as the rate of unemployment reduces, therefore it
also influences upon the socio-economic structure of the country. In addition to that, the
reduction of unemployment rate can also decrease the rate of potential risk over the
people who were unemployed. Overall, it helps the socio-economic structure of the UK
to get some stability.
The private venture and business people are tremendously critical in the development
of social economy of the United Kingdom. These sort of entrepreneurial endeavors do
contribute a great deal to the general public which really causes them to create income
and benefit for the business operations. The little scale business associations are
particularly critical to recreate a ceaseless development of the social economy by
making work open doors for the competitors of the nation. Aside from that, the
substantial scale business associations are not particularly included with this sort of
visionary repercussions to add to the general public for upgrading the social economy.
Notwithstanding that, the little scale business enterprise wanders are especially
essential to make advancement in the nearby group in course of sheer interposition of
money related upgrades to build up the monetary structure legitimately (Greene et al.
2010). The little scale organizations work totally in consistence with the capital stream in
the general public to be reasonable with the acquiring capacity of the clients to make
monetary advancement.
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M2. Impact of small, medium, and large business over the UK
economy
As the small business ventures increases the economic growth of the UK, therefore
they are considered as the catalyst that can be used for the economic and social
development of the country. The small scale businesses are that employ small number
of employees and the revenue generation is also considerably low than other
businesses. A small scale business also does not have a large volume of sales as most
of small scale businesses are sole proprietorship, corporations and partnerships. The
Medium Scale Businesses are considered as the organizations with maximum number
of 100 to 1000 employees. On the other hand, the large scale business organization is
the corporate controlled business that are indulged into large financial transactions
along with large business operations incorporating employees more than 1000 people.
However, the financial strength of the large-scale business organizations overshadowed
the small business firms. On the other hand, when it comes to the medium scale
business organizations there are mainly three different ways through which they can
influence the economy of a country. According to Bennett (2014), the medium scale
business organizations provide the local residents with the financial independence.
Along with that, they also encourage the process of innovation in terms of their business
venture. Moreover, they also help the economy to maintain a standard way. Therefore,
it helps them to sustain in the competitive business environment. As Talon Outdoor
deals with the different OOH solutions in the heart of the UK, therefore it encourages
the digital technology largely. On the other hand, a large business organization having a
good financial strength can easily open an electronic market place from where the local
residents can opt for their required products and services.
D2. Impact of small business over local, regional, national, and
international context
A small business organization helps the economy to witness a growth as they provide a
huge amount of job opportunities to the local residents. Along with that, in the regional
level the small business firms encourages the process of innovation and the people can
show their skills. In addition to that, according to Ackermann and Audretsch (2013), the
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sense of innovation can also help the national platform to witness a growth. If the small
business organizations have the assistance of the e-commerce platform then they can
easily comes across the national and international platform in order to satisfy the need
of the customers regarding innovative product and services. The large-scale
organizations maintain such a pricing strategy that attracts the people to have a go at
the products and that in turn enhances their revenue and production.
Part 3:
P5. Characteristics of a successful entrepreneur
Successful entrepreneurs need to have a certain amount of qualities that can
differentiate them from the normal people. The person needs to show a great amount of
passion and motivation towards his or her work. Therefore, based on that attribute the
entrepreneurs can set themselves as an example in front of the overall society. In
addition to that, they need to possess the risk taking ability. However, not all the risk
takers are the successful entrepreneurs. The entrepreneurs take calculated risk
regarding their venture (Karatas‐Ozkan et al. 2014). Moreover, they need to have self-
belief and dedication towards their work. That can make them disciplined enough
regarding the venture. In addition to that, they also need to have the trait of adaptability
and flexibility regarding different unwanted situations. Planning is considered as another
important trait that a successful entrepreneur needs to possess. Moreover, the concept
of money and time management needs to be cleared with the person. The achievement
of enterprise destinations is principally reliant on the attributes and qualities of the
pioneers as the aptitudes of the business people can likewise be useful for the
authoritative greatness. An entire business person should have the characteristic of
exceptional enthusiasm and motivational state of mind with a specific end goal to rouse
the workers to encourage a community procedure to achieve the objectives. Aside from
that, the hazard taking capacity is another productive ability of a business person as the
hazard adopting strategy with measured hazard in business is imperative for benefiting
the drifting business openings in the market to manage sheer development for the
association. Notwithstanding that, the trait of devotee focused commitment in the
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business operations should be available in a business visionary keeping in mind the end
goal to empower finish connection with the earth of the business association. It can
likewise be useful to manage viable showcasing operational plans (Schaper, 2014). A
business person should have sheer self-conviction alongside absolute certainty while
they likewise need steadfastness and deferential state of mind towards the choices to
evade vanity of the entrepreneurial plans.
P6. Reflection of motivation and mindset over entrepreneurial aspect
This particular aspect can be well defined by taking an example of Sir Richard Branson.
Factors regarding personality and the different motivational aspects can help a person
to become a successful entrepreneur. Along with that, positive mindset is also required
to become a successful entrepreneur (Curran and Storey, 2016). Sir Richard Branson
has faced issues in his early two ventures, however he did not lose hope and started his
new venture regarding Virgin group and the rest is history for us. He dropped out from
school at the age of 16 and started his own venture that is a magazine namely Student.
Then he diversifies his venture and based on his innovative ideas he started a mail
order organization. On the other hand, he provided the example of his long-term vision
by identifying the dissatisfaction of the customers of British Airways and set up the
Virgin Atlantic that provides a tough amount of competition to the British Airways
nowadays.
M3. Differences in between entrepreneurial characteristics
In order to develop the different in between the characteristics of the successful
entrepreneurs, another successful entrepreneur needs to be considered in this report.
Muhammad Yunus can be taken into consideration as he started a business out of
nowhere with limited financial and human resources. Hard working nature is the first
and foremost trait that can define a successful entrepreneur. In addition to that,
experience and family background can also influence the characteristics of an
entrepreneur. On the other hand, Richard Branson is also an entrepreneur as he took a
financial risk by setting up his company with no pre-determined brand image to avail the
market opportunities. Both Sir Richard Branson and Muhammad Yunus come from a
different cultural background and have their own experiences in life. Sir Richard
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Branson was mainly dependent to his self believe and risk taking ability. Therefore,
according to Sahut and Peris-Ortiz (2014), he was much aggressive type of
entrepreneur than Muhammad Yunus. On the other hand, Muhammad Yunus is realistic
and based on this attribute has redesigned the structure of Bangladesh economy.
Therefore, it can be said that the different kind of characteristics can develop different
kind of entrepreneurs in the overall society.
D3. Analysis of the skills and the motivational driving force with
examples
Motivation is a critical factor that is able to drive a person to a successful entrepreneur.
Along with motivation, skills of that person also help a particular person to become a
successful entrepreneur. As an example, it can be said that, skills regarding
international economy helps Muhammad Yunus to restructure the entire Bangladeshi
economy. On the other hand, after failing in first two ventures, Sir Richard Branson opts
for his third venture that is the development of Virgin group. According to Schaper et al.
(2014), it is the sense of motivation in him that drives him to become a successful
entrepreneur in his life. Therefore, it can be said that, both the skills and motivational
factors can help a normal person to become a successful entrepreneur if that person is
able to drive those forces in a right direction.
P7. Impact of background and experience over entrepreneurship
Skills associated with real life experiences can help a person to become a successful
entrepreneur. As an example, we can take Muhammad Yunus. However, one thing that
needs to be considered is the fact that the real life experiences can both positively and
negatively influence upon the development of an entrepreneur. Muhammad Yunus
belongs to a good family and his educational background was also good ( Qian et al.
2014). Later in his life he became a successful economist as he identifies the loopholes
in the national economy of Bangladesh. He developed a sense of innovation in
Bangladesh economy and restructured the loan repayment system. It has generated an
immense impact over the national economy of Bangladesh. His idea regarding the
overall economic condition associated him to identify the innovative strategy that can
help the economy. Therefore, it can be said that real life experience is a crucial factor to
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become a successful entrepreneur. On the other hand, Sir Richard Branson can also be
considered in this case. According to Henrekson and Sanandaji (2014), he had
witnessed failures in his early tow ventures and he understood the loopholes of those
ventures. Therefore, when he opted for the Virgin group, he tried to rectify his previous
errors and make the organization sustain in the competitive world.
M4. Link in between impact of personal experience and
characteristics to the successful entrepreneurs
Characteristics of a person associated with his or her experiences plays a vital role in
order to become a successful entrepreneur. The characteristics of a person can be
reflected based on his or her educational background or experiences or family
background. The person belongs to a well-established family would try to maintain a
disciplined life such as Muhammad Yunus. On the other hand, according to Spence
(2016), a person from a poor financial background would know the value of money
better than other people. Therefore, the quality of money management would be in him
or her. Along with that, there are some sorts of people who mainly believes in the
process of innovation and based on that try to generate a new venture such as Sir
Richard Branson. Being dependent on his self-confidence, he developed the Virgin
Group after failed in his two ventures and now he is considered as one of the popular
and well-known entrepreneur all over the world.
D4. Positive and negative impact of background over successful
entrepreneurs
Background of a person can both positively and negative affect the development of an
entrepreneur. Setianto et al. (2016) said that, a person belongs to a systematic family
background can easily adjust in the competitive world of entrepreneurs. However, if the
person does not have the hard working nature and decision-making ability, then it would
be tough for him or her to sustain in the world. In terms of positive impact, Muhammad
Yunus can be taken into consideration as he belongs to the educational family
background. On the other hand, Sir Richard Branson dropped out from his school at the
early stage; still he has the dedication and hard working nature. That helps him to
develop the proper entrepreneurial venture that is a huge success in recent world.
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Conclusion
After summing up the entire study, it can be said that the entrepreneurs are the pillars of
a country’s economic condition. The development of a successful entrepreneur can be
defined by the characteristics and different motivational factors. Along with that, the
study also concludes the fact that the small business organizations impacts a lot to the
UK economy as it generates an ample amount of job opportunities. Moreover, it also
develops the sense of innovation in between the management of the business
organizations.
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