Entrepreneurial Ventures and Typology Impact

This assignment provides a comprehensive analysis of entrepreneurial ventures and typology, highlighting their positive impact on economy growth. It explores the characteristics of successful entrepreneurs, including optimism, realism, self-motivation, and clear vision. The document also discusses the influence of personal background and experience on entrepreneurship, emphasizing the importance of good educational background in overcoming barriers. Overall, this assignment offers a nuanced understanding of entrepreneurial ventures and typology, shedding light on their role in economy growth and the factors that contribute to entrepreneurial success.

Entrepreneurship and Small
Business

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1................................................................................................................................................1
P1 Different types of Entrepreneurial ventures and their topologies..........................................1
P2 Similarities between entrepreneurial ventures-......................................................................2
LO2..................................................................................................................................................4
P3 Statistics of micro and small business which impact on the economy-.................................4
P4 Importance of small business and business start-up to the growth of the social economy....5
LO 3.................................................................................................................................................6
P5 Characteristic traits and skill of successful entrepreneurs.....................................................6
P6 Aspects of the entrepreneurial personality reflect entrepreneurial motivation and mindset..8
LO 4.................................................................................................................................................9
P7 Background and experience which hinder and foster entrepreneurship................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship is to run own business and rule it with own terms and conditions. It
brings new ideas, innovations which involves strong vision. Entrepreneurs create business for
their own. Red Bridge London borough council is the local authority for Red bridge, and one of
the capital's 32 borough councils. Small businesses are like organisation which have less
resources with small revenue. Entrepreneurs are logical, self motivated, enthusiastic, optimistic,
willingness towards their goal and make pragmatic products, services to society. This case study
will define different type of entrepreneurial ventures and typology. It Will explain similarities
and differences between entrepreneurial ventures. Illustrate statistic and impact on different level
of economy of small and micro business with public and corporate sector. Analysis characteristic
traits and skills of successful entrepreneurs that differentiate them from other business managers.
Elaborate background and experience can hinder or foster entrepreneurship.
LO 1
P1 Different types of Entrepreneurial ventures and their topologies
Micro Enterprises: Micro enterprise is a small kind of business with minimum
employees and minimum balance at Red bridge borough. In manufacturing sector investment in
this type of enterprise is not exceeded from 2.5 millions and in service sector not more than 1
millions. Micro enterprise usually starts not more than 10 workers with small amount.
Small Enterprises: In small type of enterprise there are some employees and have small
number of sales. Basically, it is an independent enterprise which can be operated freely by a
company (Goss, 2015). It is limited in size and profit depends on company. In small enterprises'
investment in manufacturing sector is between 5 millions to 5 billions and in service sector it is
between ten millions to two billions. Small enterprises start from not more than fifty people.
Medium Enterprises: In medium enterprise at Red bridge borough, there are not more
than 250 employees. This enterprise has slow and steady growth. In manufacturing industry,
investment is up to 25 millions and in service sector investment is between 2 billions to 5
billions. Object of medium enterprises is to expand their business, make profit and to increase
market share.
Typology of Entrepreneurship
There are 4 types of typology of entrepreneurship in market.
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Small Business Entrepreneurship: Small businesses are like hairdressers, internet
commerce store fronts, grocery store, plumbers etc (Burns and et.al., 2016). This business can be
run-ned by anyone. Aim of these kinds of businesses is to earn money and to feed family and
they have day to day profit. Family or local employees can be hired in small business.
Scalable Entrepreneurship: Scalable entrepreneurship of Red bridge borough, has
innovative ideas for business model that take company towards higher growth. They have clear
vision that can change and make the whole world a better place. Vision of scalable
entrepreneurship is to attract financial investors and to make profit for the company. They hire
the bes-test and brightest candidates for company for making profitability.
Larger Entrepreneurship: Larger entrepreneurship leads towards to make innovative
ideas and products that bring profit in company. They keep changes in its products according to
customer test, interests and also bring new technologies, competition to improve its products
quality. Large entrepreneurs always push themselves to make more profit.
Social Entrepreneurship: Social entrepreneurs are those, whose aim to focus on making
a better world. Like they identify people's need and their problems and try to solve them. They
effort to bring some positive changes in society. They are focused to make products which fulfil
demands of people. Basically, social entrepreneurship is no profit, for profit.
P2 Similarities between entrepreneurial ventures-
There are many similarities of entrepreneurial ventures
The main aim of all entrepreneurial ventures like scalable, large company and
small business is to earn maximum profit because profit is essential for the growth of the
venture. Profits provide finance to entrepreneurial ventures to expansion and diversification.
Large company as well as small company require various resources like men, material,
money and machines. The availability of these resources is usually limited so it is important for
every entrepreneurial ventures and small business to make the best possible use of these
resources.
Social objectives is the main purpose of social entrepreneur and large company. Social
objectives include those objectives which are desired to be achieved for the benefit of the
society. Social objectives of entrepreneurial ventures include production and supply of quality
goods and services and contribution to the general welfare of society.
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Customers are the assets of small business venture, social venture as well as large venture
are the customers and a venture cannot survive unless there are customers to buy the products
and services. The main aim of entrepreneurial ventures is to attract more customers for its
existing as well as new products. This is achieved with the help of various marketing activities.
Innovation means changes, changes in the process of production, distribution of goods
etc. Through innovation, entrepreneurial ventures at Red bridge borough council are able to
reduce cost by adopting better methods of production and also increase their sales by attracting
more customers from improved quality.
Differences between entrepreneurial ventures-
Parameter Small Scalable start-up Large Social
Size This type of venture has
limited resources and
planning and having
about 50 employees.
This entrepreneurship
refers all new business
and start-up company
and the size of the
company depends on
the business type like a
cafe, hair salon and
restaurant etc.
Large
entrepreneuria
l venture
involves many
people and
their
equipments
are suitable for
large scale
production, it
is having
about more
than 250
employees.
This type of
venture does
business for
social cause
so it does not
have specific
size.
Risks/Reward Small ventures cannot
bear the high risks
because it works on
small scale and its main
There are some type of
risks which start-up
companies have to bear
like capability risk,
Large scale
ventures have
to bear large
amount of
Social risks
include those
actions
which affect
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aim is to feed their
family by day to day
profit but it is
responsible for all the
risks and rewards.
designing risk,
technology risk and
research risks.
risks like
financial risk,
reputation risk
and strategic
risks.
the
communities
like labour
issues and
human rights
violation etc.
LO2
P3 Statistics of micro and small business which impact on the economy-
Redbridge is estimated to have a population of 296,800 as at 30 June 2015, an increase of
3,800 since 30 June 2014. Redbridge is predictable to have 67,500 persons aged between 0 &15
(23% of the total population) (Information, research and data about Redbridge, 2018).
Figure 1: RedBridge employment
(Source : Information, research and data about Redbridge, 2018)
At the start of 2018 there were 5.6 million, 99.3% small businesses and 99.9% small and medium
size businesses accounted of all private sector businesses.
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Figure 2 : Statistics for SME’s and Large organisation
(Source : SME’s in UK, 2018)
Total employment in micro and small businesses was 16.3 million (1 crore and 63 lac) in which
60% (97 lac 80 thousand) of all private sectors in the UK. Between 2000 and 2017, there were
constant growth in the business population in year but there has been a fall of 27,000 businesses
in between 2017 and 2018.
Between 2017 and 2018,the number of employment business increased by 23,000 on the
other hand unemployment businesses fell by 50,000 which resulting in overall decrease of
27,000.
Micro and small businesses consist of a large part of the UK economy. Increasing productivity
growth of micro and small businesses would have a significant impact on overall UK
productivity.
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Figure 3: Ratio of SME's in UK
(Source: SME’s in UK. 2018)
By bringing growths and innovation it helps to the community in which company is established,
also it helps in economic growth by providing employment to those who are seeking for job for
their family nurture.
Micro and small businesses of UK plays a major role in creating job, it accounts for 73% of all
net private sector job creation. In 2013, 4.9 million small business and 24.3 million employees
were in UK. There are about 99.9% of all private sectors business in UK like Badger mining,
studer group and ENFEO which provides big employment opportunity which is about 59.3% of
total private sectors and its revenue is 48.1 %.
Small and micro businesses are particularly important nowadays in any economy. They are the
big source and plays a major role in job creation which is important in modern economy.
Economic changes like changes in interest rate, wages rate and general level of increase in prices
affects business. Business will be more encouraged to expand and take risks when economic
conditions are right. Small business make up 99.3% of the total no. of business and provide
employment 48% which make turnover up-to 33%.
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Figure 4: Number of employees in SME's
(Source: SME’s in UK, 2018)
Medium size business makes business population only 0.6% and provide employment 12%
which create 15% turnover. Whereas large business only makes 0.1% of the total number of
businesses but provide good number of employments about 40% which make significant
turnover 53% of total revenue.
The differences between small, medium and large businesses make to the economy
Parameter Small Medium Large
Enterprises 99.30% 0.60% 0.10%
Employment 48.00% 12.00% 40.00%
Turnover 33.00% 15.00% 53.00%
P4 Importance of small business and business start-up to the growth of the social economy
Small businesses play an important roll in the growth of UK economy. They are like
backbone to the economy. Small businesses create jobs for their families, locals and make new
opportunities, open new markets. People get new ideas and they also try to challenge themselves
to enhance their ability. Recently, in UK small businesses are in favourable condition for start-up
and to succeed.
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Enhances Economy: Contribution of small businesses in UK economy is quite well. At
the start of 2018 there were 5.6 billion small businesses and overall turnover was about 2.0
trillion. This figure take UK economy at the higher point.
Development of Employment: In employment sector, small businesses have an essential
role to play. Such as, people who are not able to work with business tycoons, they can join them
to start their journey towards to success and for the new life style. Small businesses create
opportunities on social level like it gives employment to locals, friends, families to being creative
and use their abilities to enhance themselves. In UK there are about 24.3 million employees in
small businesses.
Increases Growth: In small businesses, entrepreneurs are very creative and innovative.
They take challenges, risks executing new ideas. New innovations, ideas are crucial point for
continuous growth. Small businesses keep market growth persistent with such fresh, productive
plans which improve and enhance economic growth.
Helpful to develop Industries: Retail, motor repairs and manufacturing are the largest
business in UK. Most of the small businesses are related to motor manufacturing sectors and they
have potential to generate new projects that help to develop industries in market and increase
economy revenue. Small businesses are important part for growth of industries in UK because it
contributes at the small level but gives revenue at the large level.
Impact of small businesses on different levels of the economy
Small businesses have big impact on economy and its growth. It can be defined as job
creators. It has impact on different level of the economy:
Small Level: Small businesses are more foster in local level. It creates job opportunities
in locally, provides employment and gives stable life style to people. Profit which made by this
business remain in local community. With less infrastructure and maintenance it brings more
profit and contributes in economy revenue.
Regional Level: At regional level, small businesses have shares with good quality which
directly impact on better employment. Due to this, it gives more employment in whole state and
make positive environment for business which increase economic growth.
National Level: Small businesses expand itself at national level which grows GDP,
foreign currency, increase exchange rate, make national income stronger, provide more
employment at national level for citizens and make economy powerful.
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International Level: Small businesses have some local brands which make an effective
image at international level that represent country's status and image as well and thrive economy.
LO 3
P5 Characteristic traits and skill of successful entrepreneurs.
Hard worker- In order to achieve any goal and dream, it is important trait which
successful entrepreneur possess. A successful and famous entrepreneur Peter Jones of UK has
conquered many barriers in his career path by dedication and hard work. They believe that any
type of goal can be achieved if we are willing to work and this thing make him different from
another business manager.
Team player- Success can be achieved with the help of others. Successful entrepreneur
recognise that Other make them stronger. Peter Jones successful businessman and entrepreneur
recognises that his success was credit not only to him but also to those who supported him.
Imaginative- The another important skill which makes entrepreneur successful is
creative and innovative (Vargas, 2015). The successful entrepreneurs believe and say that we do
not need magic to change the world, we need to follow all the power which is inside ourselves
already. They Find the power inside them which was not an easy but they made it possible and
this made him successful.
Problem solver- To be successful, it is important to have the skills which needed to
correct problems. As a famous entrepreneur James Dyson is a person who faced problem of
insecurity after death of his father and went through many trials and errors of his work, the
ability of correcting problems made him successful and different from other businessman. They
said that if the facts don't fit the theory, change the facts.
Courageous- In order to make dreams into a reality, the person must have the courage
and determination to work hard and take action. The famous dreamer and entrepreneur Peter
Jones is a successful entrepreneur, he got success not only by creating vision but also by having
the courage to share it with the world whereas many business man does not have enough courage
to share their vision and idea to other people.
Sensible- Creator and inventor of the Dyson company for home appliance, James Dyson
gave a message that enjoy failure and always learn from it because you can never learn from
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success, to the people who want to success and afraid from failure. This is the main characteristic
of James Dyson which made him different from business man.
Characteristic traits, skill and motivational driver of successful entrepreneurs-
Passion- The famous and successful businessman, Peter Jones, known for creating the
famous television show Dragon's Den was a very passionate towards their work and this quality
made him successful than another businessman. He believed in himself, never give up and
always did his business with passion.
Personal growth- The successful entrepreneur enjoy the journey as much as the
destination. They have a thirst of knowledge and learning that helps them in their business as
well as in their personal growth. This quality of successful entrepreneurs differ them than
another businessman.
P6 Aspects of the entrepreneurial personality reflect entrepreneurial motivation and mindset
Successful Entrepreneurs has traits which make them innovative, creative, passionate.
These qualities reflect their personality towards their work. There are some personality traits and
different lines of arguments which reflect entrepreneurial motivation and mind set.
Vision: Strong vision execute an idea in positive direction. Entrepreneurs should have
strong vision to implement their idea in right way. Such as, Peter Jones and James Dyson, they
have powerful vision towards their work which reflects in their personality. Vision is also
required to determine the resources and capital that will used in start-up. Without clear vision all
ideas are like daydream.
Passion: Entrepreneurs should be passionate for their work and ideas. Passion is a key of
success (Thorgren and Wincent, 2015). Passion motivates and stimulates towards the goals and
enhance abilities and traits of entrepreneurs which is mandatory to become a successful
entrepreneur, this made them succeed to achieve business objectives. Passionate entrepreneur has
ability of self-motivation. Entrepreneurs are passionate for their work and motivate their
employees as well. They don't need external source for motivation.
Perseverance: Perseverance is about to keep going or doing something till the end. In
other words, not to give up. Entrepreneur should persistence in their work and to achieve goals.
There are some entrepreneurs who faces problems but they should persistence towards their goal
and have ability to solve them.
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Willingness to Adapt: Entrepreneurs should enough flexible to adapt the changes, while
it is good or bad and have quality to adapt new technologies as well. Successful entrepreneurs
always have capacity to learn something new. Such as Peter Jones and James Dyson they have
ability to keep learning and willingness to adapt any situation while it is favourable or not.
Stay Focused: Paying attention on limited and major issues is fundamentals for stay
focused. Entrepreneurs should have trait to be focused in their work. Focus is important for any
entrepreneur to implement and analysis new ideas for execute them which make them a
successful entrepreneur.
Different line of argument relating to entrepreneur characteristic
Optimism can be linked with positive result in entrepreneurship to contribute in economy
growth. Optimism is essential in bad situation to overcome it and to bring pragmatic results. But
sometimes it also characterised as negativity. Such as being overconfident to take risk can drive
an entrepreneur down.
Entrepreneurs have a characteristic realism which may be realistic or unrealistic. Realistic
entrepreneurs has good grip on situation and have ability how to understand and handle the
situation. They are practical and can assemble the state of reality. Other side, unrealistic
entrepreneurs are sometimes imaginary they don't relate situation with certainty and this factor
bring them down from their goals and achievements.
LO 4
P7 Background and experience which hinder and foster entrepreneurship
There are specially five background that hinder and foster entrepreneurship which are-
1-Openness- Openness to experience involves active imagination, sensitivity, attentiveness to
inner feeling and preference for variety. A person with a high level of openness to experience
often enjoys its work and venturing beyond its comfort. By contrast people with low openness to
experience seeks refuge in familiar surrounding and does not work efficiently. Entrepreneurs
who are open to experience are generally curious and sensitive to beauty.
2-Conscientiousness- A tendency to show self-discipline and aim for achievement. The people
and entrepreneurs who have conscientiousness can do anything and they have desire to do a task
well and it is a foster for entrepreneurship as well as hinder. Those people who are low
conscientiousness tend to be less goal oriented.
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3-Agreeableness- The person having agreeableness usually a warm, friendly and tactful.
Entrepreneurs who have high agreeableness find it important to get along with others because
they have friendly nature, decent and trustworthy which foster entrepreneurship in contrast who
does not have this quality tend to be unfriendly and indecent which is a hinder for
entrepreneurship.
4-Extraversion- Extraversion is a type of behaviour in where entrepreneur enjoys being with
people more than being alone. This type of people likes to be around people and enjoys being the
centre of attention. Extraversion hinder as-well as foster entrepreneurship like on the positive
side this type of entrepreneurs are-talkative, sociable, action oriented and friendly which is good
for entrepreneurship on the negative side they are sometimes attention seeking, got distracted
easily and unable to spend time alone so it is not good for entrepreneurship.
5-Neuroticism- Neuroticism is a long-term tendency which include higher level of anxiety,
depression, emotionally unstable, fear of failure, frustration and jealousy etc (Wyrwich and et.al.,
2016). It is not a medical condition but a personality trait. This a big hinder for entrepreneurship
because neurotic people tended to have a lower ability to focus on work.
The link between entrepreneurial characteristics and the influence of personal background
and experience
Sometimes background of entrepreneurs becomes the factor of hinder as-well as foster.
There are some entrepreneurs whose background have hindered them from their success. But
because of their characteristics they got success to overcome their hinders and ultimately succeed
in life. The successful entrepreneur, James Dyson, his father died of cancer. This tragedy deeply
affected him and he became insecure without the guidance of him, but he faced the situation and
stood up and made himself strong.
Background and experience influence entrepreneurs
Background and experience influence entrepreneurs in positively and negatively like
family background of an entrepreneur vary. The person having weak background have to faces
many problems in contrast strong background people finds it easy to solve problem effectively
(Lima and et.al., 2015).
Educational background also influence entrepreneurs, people who has a good educational
background they got help from their seniors and can overcome the barrier which they face than
the people who does not have good educational background.
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CONCLUSION
From the above study, it can be concluded that different type of entrepreneurial ventures
and typology impact positively on the economy. Small businesses and start-up companies are as
important for economy growth as large once. For being successful entrepreneur, it is mandatory
to have characteristics like optimistic, realistic, self-motivated entrepreneurs who has clear vision
and brand new ideas to execute for their business which make them different from other business
managers. These traits reflect in entrepreneurial personality which show their mindset and
motivation. Different lines of argument relating to entrepreneurial characteristics is depended on
entrepreneur mindset which affects entrepreneurship positively as-well as negatively.
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