Types of Entrepreneurial Ventures and Their Impact on the Economy

This report explores the different types of entrepreneurial ventures and their relationship to different typologies of entrepreneurship. It also discusses how micro and small businesses impact the economy and the importance of small business and startups for economic growth.

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Types of entrepreneurial ventures and its relationship to different typology of
entrepreneurship.....................................................................................................................3
P2 Various similarities as well as difference in between various entrepreneurial ventures...5
TASK2.............................................................................................................................................7
P3 Interpret relevant data on how micro and small businesses impact economy..................7
P4 Importance of small business and start-ups for economic growth....................................9
TASK 3..........................................................................................................................................10
P5 Characteristics and traits of successful entrepreneurs that differentiate them from others10
P6 Aspects of entrepreneurial personality reflecting entrepreneurial motivation and mindset12
TASK 4..........................................................................................................................................13
P7 Background and experiences hindering or fostering entrepreneurship...........................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
An Entrepreneur is someone who is responsible for any new business idea who takes efforts and
brings the plan in action while taking in consideration all the risks as well as returns which are
attached to that business. These are usually those ideas which were never used or thought of
earlier by any other person. Beginning of entrepreneurship is when the thought sand ideas are
converted into a plan and executed well (Burns and Dewhurst, 2016). Designing, producing and
introducing new idea in marketplace consists of entrepreneurial activities. In the following report
manager of Sainsbury is conducting a research about small businesses. The following report
consists of description of various entrepreneurial ventures. There are also difference and
similarities of these mentioned. Relevant data related to performance of small and micro
enterprises in an economy is also mentioned. Other than this there are two case studies in this
report from which two entrepreneurs are chosen and an analysis on their behaviour, decision
making and effects of their background on their entrepreneurship is also done.
TASK 1
P1 Types of entrepreneurial ventures and its relationship to different typology of
entrepreneurship
Entrepreneurial idea can be defined as an opportunities and innovation to run business in an
economy. Entrepreneurship is a measure by which entitles are refined by taking risks and
concern in order to gain profits and acquire. These ventures are categorized into four different
types:
Large Company Entrepreneurial Venture: These companies generally arise with products
which correlate to its existing products in market. In order to fulfil the need of customer and to
compete with others as per latest technology these products are being launched. To expand their
business is main motive. They generally purchase other companies or become partner with
existing firms. YouTube, Google, Microsoft and many more are examples of this.
Scalable Entrepreneurial Venture: Scalable entrepreneurs are the ones who deliver
new concept in order to bring revolution in world. Their perception is much bigger than other
entrepreneurs in the market. Scalable entrepreneurs are those who imports concept to change the
world. Their motive is to recruit numerous skilled human resources. They also examine for

convenient business model usually extensible enough to boost profits. Instagram, Facebook,
online shopping applications and many more are various examples of such ventures.
Small business Entrepreneurial Venture: Now a day’s various types of small business
can be seen in market. 90% of business in US are small venture which recruits number of
employees who are non-governmental (Cooper and Folta, 2017). There motive is to fulfil their
daily needs and expenses. This business does not require much capital therefore capitalist show
very less interest in this business. They generally seek help from their friends and family to start
this business. Some examples of such business are carpenters, plumbers, consultants and many
more.
Social Entrepreneurial Venture: This investment generally expands product and services in
order to deal with issues in market. Their motive is to make world better place to live. They are
also non- profit organisation, profitable organisation or a hybrid or mixture of them. For
example, Safe Point Trust. They concentrate on manufacturing syringe which are reusable. They
Collaborate with various small hospitals and clinics who cannot afford expensive treatments. Till
now they manufactured more than 4 billion such syringe circulates over 41 countries in world.
These different types of ventures are important in establishing topologies of business.
These topologies have great effect on running of business and opinion taken by entrepreneurs.
Some of these topologies are quoted below;
Various typologies of entrepreneur’s ventures-
Topology can be defined as, differentiating things on the basis of their types. Structure,
form, plan, style is some basis of differentiation. Some of these topologies are mentioned below:
Aggressive growth Ventures: This topology uses more advance technology and
innovative ideas then others. Their motive is to stay for longer period of time in market and focus
on growth. There motive is to expand their business globally. Large scale enterprises are
focusing on achieving huge growth in market.
Lifestyle Ventures: These ventures focus on providing satisfaction to its customer rather
than expansion or growth of business. These ventures have limited number of human resources.
They run their business in single place. Business organisation which works in single place can be
defined as life style venture.

Managed growth Ventures: These ventures expand their operations and spread their
work all over world. To achieve higher profit and earnings is only their prime motive. Due to
their advance management they seek for skilled workers who provide them with good quality of
products and services. Scalable business is ideal illustration for managed growth (Cooper and
Folta, 2017).
Survival Ventures: This venture usually aims at helping people with basic needs. They
run business in order to improve standard of living of people in society. They help in raising
social status of people in society. Micro business is example of Survival ventures.
P2 Various similarities as well as difference in between various entrepreneurial ventures
Similarities Social enterprise Scalable
entrepreneurial
ventures
Large company
entrepreneurial
ventures
1 Their motive is to fulfil
basic needs of people
surviving in society.
They examine the
needs of people and
innovate products
which can fulfil the
requirements of
people.
They also fulfil needs
and requirement of
consumer but they
broadly operate in a
very large scale.
2 Their main motive is to
upgrade living
standard of people.
They also boost
condition of economy.
Profits generated by
these organisations are
worn repeatedly in
research and
technology. They aim
is revolution and offer
new products and
services in market
A Part of profit earned
by these organisations
is used to improve
conditions of society.
These activities are
defined as corporate
social responsibility
which means
responsibility that an
organisation must have
towards a society in

which it is operating
its business.
Differences Social enterprise Scalable
entrepreneurial
ventures
Large company
entrepreneurial
ventures
1 Main motive of this
organisation is to
make world better
place of living rather
than earning profit.
They focus on figure
out problems which
prevails in society.
They focus on
delivering new
innovations in world.
Their main motive is
to make people aware
of new innovations
and opportunities.
They also looks for
investors who can
invest in their new
innovative ideas.
To attract customers is
only motive for their
innovation. This helps
them to increase their
profit and to spread
their business globally.
2 They do not believe in
recruiting process.
People usually join
such organisations and
leave as per their
comfort (Kuratko,
2016).
They recruit people
who are highly skilled.
These highly skilled
man power helps to
contribute towards
profits and success of
enterprise.
They recruit people
from all over the world
because activities can
be performed in an
effective and efficient
manner.
3 Examples of such
enterprises are Hill
holt Wood, Café
Direct etc.
Examples of these
entrepreneurship
ventures are Facebook,
Instagram, YouTube
etc.
Examples of this
ventures are
Microsoft, Apple,
Yahoo, Samsung and
so on.

TASK2
P3 Interpret relevant data on how micro and small businesses impact economy
Small businesses: companies which are independently seem to be owned usually by an
individual, is limited in size and sales of which company only depends upon a single industry is
called a small enterprise. Examples of small enterprises can be various manufacturing units
which have 500 labourers and employers or less then it. An example can be taken of A company
which produces furniture’s and have around 58 employees as well as carpenters working for
them.
The data given above shows us the effects of small businesses in the economy of UK. The
interpretation of above given graph is mentioned below:
 It is seen that contribution of small business towards economic of UK is around 24%.
 There is seen to be increase in gross domestic product of economy along with growth in
number of small enterprises in the economy.
 While taking benefit from this scenario government of the economy is its revenues by
increasing customs duty which contains of exports as well as import taxes in an economy.
It is seen that these enterprises provide almost 80% of employment in the economy (Lipset,
2018).

 This is also seen small enterprises in the economy of UK has been successful in reducing
unemployment rate of the country.
Micro businesses: Such businesses are the organisations which are very small scale and run with
very a smaller number of employees. It is noticed that it consists of less than 10 employees.
The amount of capital which is shown in balance sheet of such companies is also very low.
It is noticed that such entities are owned and managed by a single person taking help from
their family members usually. Examples of such enterprises can be a plumber, a mechanic, a
carpenter, and Electrician et cetera.
Above a graph can be seen which shows how does a Micro enterprise performance in the
economy of United Kingdom. Below mentioned is analysis and interpretation of the graph shown
above:
It can be seen from the graph above that 17% of total business in the economy is provided by
micro enterprises (Schaper, 2016).
 It can also be seen that these companies provide a lot of employment which helps in the
end to reduce the unemployment rate in the nation.
 This also helps to raise revenues of government as a number of foreign investors are
trying to Venture into this nation and government charges extra cost from them.
 The main objective of such organisations is to innovate products as well as services
which will further help in order to grow economy.

P4 Importance of small business and start-ups for economic growth
It is said that a social economy includes both private as well as public sectors in it. In this process
of social economy person focuses on how the values beliefs as well as norms which are taught by
society influences behaviour of a customer in both positive as well as negative manner. Major
purpose social economy is to seeThat society is good and positive environment is there in the
society. After this the focus on how can profit be increased for long term (Rahayu, 2017). After
this every company focuses on expanding its business Domestically as well as globally. When
talking about social organizations they work it risk-free profit points. In a social economy there
are basically four pillars. This four pillars of a social economy are mentioned below:
Mutual: This is the first pillar in a social economy. This involves and includes all the companies
that provide only services to their customers. The major pain in the objective of the first
pillar is that the companies offer better services to their Customers without thinking of the
profits they can achieve.
Foundations: Foundations is second pillar and social economy this consist of all the
organisations which are charitable and meant for no profits. There are a number of such
organisations present in economy. These organisations as well as institution I am not really
for charity purpose but they can also be for religion, health, education and many more such
areas.
Charities: In this pillar major focus is on both economic as well as social growth in an economy.
It consists of a group of individuals who earn enough in an economy and come forward to donate
and extend a hand with the help of some of their earnings in order to do better for the economy
(Hong, 2020).
Associations: this is the last pillar in social economy. It usually refers to a group of people and
describes the relationship of those people between individual as well as a business group.
There can be seen a number of examples of association that include friends, co-workers,
teammates and many more.
The importance of small businesses and micro businesses as well as start-ups for an economy is
mentioned below:
Innovation: it can be seen that a number of start-up come up with ideas of new product as
Well as services. This helps them to attract customers towards the new innovation. A manager in
start-up is required to formulate effective strategies, procedures and policies so that they can

identify requirements as well as needs of customers (Patiño, Arias and Pérez, 2020). In addition
to this, they also provide various chances through their products and services to improve the
standard of living in a society. Major focus is also paid by start-ups on growth as well as
development in the economy. It is seen that start-ups put up extra effort and extra time in order to
come up with a new idea Which will definitely on them profit and do better for the society.
Employment opportunities: it can be analysed that all the new start-ups make sure that they
provide employment in the nation. Also, when there is a rise in small companies it can be seen
that more employment is required in such companies. This results in degrees of unemployment
rate in any economy. The recruit people according to their skills and talents. Along with
employment opportunities employees are also provided with various training in order to improve
their skills and provide them experiences. This will help them to achieve bothIndividual as well
as organizational goals within a given timeframe. This will also result in increased productivity
of the company accelerating national growth of the nation.
Decline in poverty: it can be seen that start-ups aim at eliminating poverty from the economy.
They do this by providing a number of good job opportunities to the individuals who are
unemployed and making sure that this helps them to raise the standard of living in the society.
They also make sure that all the personal goals of individuals are achieved and they earn enough
to fulfil their as well as their families. It is also done by increasing living standards to the
products and services pprovided by them (Mitra, 2019).
TASK 3
P5 Characteristics and traits of successful entrepreneurs that differentiate them from others
Tome Mercer Elizabeth Gooch

Skills Curiosity- It is usually seen
that entrepreneurs are very
keen and curious. This
curiosity of theirs only lead
them to success. Seeking for
new opportunities and
thinking out of the box helped
Tom to come up with the idea
of MOMA food. He spent his
nights chopping fruits and
blending them. Standing in
stations and counting footfalls
out of curiosity to see whether
his idea will be successful or
not.
Influencer- Tom was a great
influencer as he pitched his
idea to his friends took their
advice and also ran a sample
survey for free in order to
make sure that this business
will be a success or not.
Uniqueness- Elizabeth came
up with a unique idea taking
help of Rodney only after
which she changed name of
company and decided to work
for operation solutions only
and focused on software in
order to be successful.
Control- Elizabeth was sure
that she didn’t wanted to share
the control of firm with
someone else due to which she
never went for investors.
However, at first this led to
losses for a year but she came
up with profits in successive
year.
Characteristics Passionate-It is always seen
that entrepreneurs are more
passionate than common
people which lead them to
success.
Innovation- Tom came up
with innovative idea of
blending oats, fruits and
Money Minded- Elizabeth
was very focused on the
profits earned by her business.
She went for globalised and
expansion of her business. As
soon as she came to know that
there are losses, she focused
on UK market in order to turn

yogurt for breakfast which
was never thought of by
anyone earlier. It is seen that
entrepreneurs need to be
innovative enough to separate
themselves with other
businesses in the market
(Jazid, Ibrahim and Rashid,
2019).
those losses into profits.
Innovation- Innovation is the
key driver foe an entrepreneur.
Elizabeth came up with a
number of innovations
changing her model of
business from time to time.
This helped her grow and
focus on her business and earn
huge profits.
Traits Flexible- Tom was flexible
enough to often change setting
of his business as per the need
and requirement of society. It
is a major trait of any
entrepreneur they need to
adjust according to the needs
and wants of society.
Rigid- Elizabeth was rigid on
point that she cannot let any
one else share control over her
business. This is why she
never looked for investors. In
this way she maintained total
control over her business and
changed her losses into
profits.
P6 Aspects of entrepreneurial personality reflecting entrepreneurial motivation and mindset
Entrepreneurial opportunity is a trait which consists of motivation, attitude and a motive
which usually assist in increasing experience of work while an individual carry on a business.
The traits in both entrepreneurs that are Tom Mercer and Elizabeth Gooch are mentioned below:
Tom Mercer: Tom was always very curious and alert. Whenever he got late for office, he
thought of this idea on how providing breakfast to corporate workers might actually be a
business. He took advice from his friends. They motivated him and asked him to pursue his idea.
He was focused on his idea and spent nights thinking on it. He started his business with a proper
plan research in market. This shows how having a mindset and motivating to do a business have
helped a number of entrepreneurs to run successful businesses (Kuratko, 2016).

Elizabeth Gooch: Elizabeth took a lot of efforts before venturing into her own business.
She took a lot of experience from her other jobs before starting her own business. She was
determined to have full control over her own business so that she does not have to take advice
from anyone else. This is why even when in needs of fund she never went to look out for
investors. Also, she knew that innovation is key to success and kept on innovating in order to
earn profits and remain in market.
TASK 4
P7 Background and experiences hindering or fostering entrepreneurship
There are different ways of thinking for every entrepreneur. Their backgrounds and
experiences have effect on their decisions and their business. Following is background of
Tom Mercer as well as Elizabeth Gooch:
Tom Mercer: Tom Mercer worked as a consultant in management area in London. He was
business minded from beginning itself (Nambisan, 2017). He was indulged in thinking of his
own business ideas while working at his consultant firm itself. He had no family support in terms
of money but they always backed him up emotionally. Tom took advices from his friends who
were supportive enough to help him with ideas as well as conduction of business. He faced a
number a number of challenges and took effective steps to tackle all of them. In this way his
upbringing and background helped him to do good in MOMA foods.
Elizabeth Gooch: Elizabeth Gooch always wanted to be financially independent. After her
father’s death and her marriage, she realised that she was financially dependent and took things
in her hand. This led to take control over things in her life. This behaviour of hers made her to
take total control over her business (Storey, 2016). Her family and friends were supportive
enough who helped her with the initial capital required for her firm. However, she earned way
more than capital in first year of her business. In this way her background and upbringing helped
her to control her business and bring in maximum profits.
CONCLUSION
From the above report it can be concluded how important is innovation for a successful
entrepreneur. Various kind of businesses and venture are also mentioned. There advantages to
society and in UK are also explained. In part two analysis of two great entrepreneurs is
conducted. Their traits, characteristics and skills are also mentioned. Apart from this how

background have great impact on behaviour of entrepreneur and their decision making is also
explained well in this report.
REFERENCES
Books and Journals-
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship.
International Higher Education.
Cooper, A. and Folta, T., 2017. Entrepreneurship and high‐technology clusters. The Blackwell
handbook of entrepreneurship, pp.348-367.
Kuratko, D. F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Lipset, S. M., 2018. Values, education, and entrepreneurship. In Promise of development (pp. 39-
75). Routledge.
Schaper, M. ed., 2016. Making ecopreneurs: Developing sustainable entrepreneurship. CRC
Press.
Rahayu, N., 2017. Analysis of tax treatment of personal taxpayers engaging in business with
certain gross income (small enterprise). International Journal of Economic
Research. 14(9). pp.289-298.
Hong, J., 2020. The financing of alliance entrepreneurship. Journal of Business Venturing, 35(1).
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Communities in Colombia. In Handbook of Research on Smart Territories and
Entrepreneurial Ecosystems for Social Innovation and Sustainable Growth (pp. 378-
398). IGI Global.
Mitra, J., 2019. Entrepreneurship, innovation and regional development: an introduction.
Jazid, A.I.M., Ibrahim, P. and Rashid, U.K., 2019. Poverty Reduction through Entrepreneurship
Programmes. International Journal of Psychosocial Rehabilitation, 23(3).
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Nambisan, S., 2017. Digital entrepreneurship: Toward a digital technology perspective of
entrepreneurship. Entrepreneurship Theory and Practice, 41(6), pp.1029-1055.

Storey, D.J. ed., 2016. Entrepreneurship and New Firm: Theory and Policy. Routledge.