Entrepreneurship and Small Business Management: Types of Ventures and Impacts on UK Economy

This report discusses different types of entrepreneurial ventures, their characteristics, and typologies. It also highlights the impact of small businesses on the UK economy through real data and statistics. The report emphasizes the importance of small businesses and startups in the growth of the social economy.

Entrepreneurship and Small Business Management
INTRODUCTION
An entrepreneur is a person who set up new business in the market in order to create the wealth for its
business venture. An entrepreneur takes high risks in its business operations to earn the desirable profits.
Peoples have different types of vision and aims in relation to the business that they want to start i.e., profit
motive ventures, innovation based ventures as well as social business venture and many more. In relation to
discussed entrepreneurial ventures some ranges of different type of venture will be discussed in this given
report. Further, the impact of small businesses on the UK economy will also highlight in the report.
Different types of entrepreneurial ventures and typologies
Entrepreneurs are the individual that have the capability to bear the risk on their started business venture in
order to achieve the desirable goal. According to the need and vision the entrepreneur choose their venture.
In regard to this there are several type of entrepreneurial venture that briefly discussed in the below given
scenario;
Small business entrepreneurship- The small entrepreneurial businesses are those that establish the
business venture for the only motive of profit generation. These type of businesses lack the innovative
approaches in their operations. The individual of such business venture performs the functions in order to
live a comfort and modest life. For example, Marshfield bakeries that distributes the handmade products to
its potential customer in order to enhance the company operations as well as their firms’ profits.
Large company entrepreneurship- Large company follows the finite life cycle in their operations. These
type of business venture solely focuses on the market need and create the valuable products in order to fulfil
such requirement. These type of companies have dedicated and skilful employees in their operations that
focuses on their core works. Companies use innovation and professionals in their functions. For example
Utilita is an energy supplier that revolutionised energy sector of UK.
Scaleable Start-up entrepreneurship- The scalable Start-up entrepreneurship are the type of business venture
that start with the unique idea and approach that can change the overall business scenarios. These type of
venture receives high funding through the angle as well as capital investors to scale up their organisations
functions in the potential market. Revolut is one the best example of Scaleable start-up in UK economy. It
revolutionised the complete banking system by eliminating the traditional banking.
Social entrepreneurship- These type of business ventures generally focuses on the social problems and
improvised their operational activity in regard to provide social value. The discussed entrepreneurial ventures
developed product and services that solves the social issue as well as also ensured the financial sustainability
of company. gravity light aims to design the lantern in order to replace the harmful kerosene lamps from the
society.
High impact entrepreneurial ventures- Large company entrepreneurship are come under this section because
they have the ability to earn large profit with the specific team.
Social impact entrepreneurial ventures- The social entrepreneurship was deployed under the stated category
because these types of ventures work on the social problem in order to provide the dedicated solutions.
Life cycle entrepreneurial venture- Small business ventures are placed under such entrepreneur typology
because it has the limited profit and risk in business operations. The individual of such businesses only focuses
to improve its lifestyle.
Innovation entrepreneurship- Scalable start-up entrepreneurship deploy under mentioned typology of
entrepreneurship because it is relying on the new investors in order to perform its innovative idea that other
businesses haven't.

Solution oriented business approach- Both of the above discussed business ventures generally focuses
on the current issues in the society and work closely to provide the effective solution for the community
welfare. Their product and services helps into improvise the living standard of society. Due to their
innovative ideas and solution oriented approaches will provides the advantage to their business operations
in to high growth and revenue.
Similarities and differences between different type of venture in entrepreneurship
Basis Small business entrepreneurship Large company entrepreneurship
Vision These types of business generally focuses
on earning profits in order to enhance the
personal livelihood. It performs on a
small scale.
These types businesses create their business
strategies to generate high profits in their
business functions. They perform their
functions in between the large audiences.
Workabilit
y
These type of businesses have fewer
number of employee in their business
operations
Large scale companies generally creates
several specific and dedicated team to perform
the business activities more significantly and
effectively in between their potential
customers.
Risk The small business entrepreneur faces
low profits as well as low risk on their
businesses.
In large companies the entrepreneur bear high
level of risk in order to gain the high profits in
its business functions.
Approache
s
The small business entrepreneur
generally not focuses on innovative
approaches to performs their functions in
the potential market.
Generally companies uses innovative and
dedicated approaches in their business function
in order to attract the large number of
audiences towards their product and services.
They established research and development
team in their business operations that study
their potential customers in order to deliver the
value in their operations.
Innovation- Both the mentioned entrepreneurship majorly focuses into adopt the innovation approaches in
their business functions in order to perform efficiently in the market. The scalable Start-up uses innovative
techniques and approaches such as technology innovation in order to create the trending business model.
In relation to this the social entrepreneurship business ventures uses innovation in their businesses
operations in order to create the sustainable business functions in order to create the valuable practice for
the society. Several companies use the adaptive and advanced technology in their functions to create the
sustainable product that would be beneficial for environment as well as society.
Interpretation and Analysis of relevant statistical data for illustration of impacts of small and medium
enterprises on economy
The micro and small businesses in the UK contributing effectively in order to uplift the GDP growth of the UK
economy. As seen in the above graphs the micro business employees up-to 9 peoples in their operations.
According to the SME loans ,2021. there are about 5.8 million micro bushiness in the UK that offers around
33% of employment as well as generate the 21% of turnover in UK economy. These stats clearly showing the
importance of micro and small businesses. Around 10,62,285 micro businesses are in the London region. UK
has one of the most number of micro businesses that is around 81 micro businesses on 1000 people. 1 in 5 of
micro businesses in UK has a turnover which is less than £ 50,000. In relation this around 2,35,000 micro
business operations has the turnover of more than £ 10,00,000. the small businesses contributed around 4% in
the businesses of UK economy as well as generate the 3 % of employment generation as well as around 15%
of overall turnover of UK economy (Need To Know Micro Business Statistics UK, 2021). All of the above stats
clearly showed that the micro and small businesses contributed majorly in UK economy. They provided the
several employment opportunity as well as enhanced the per capita income.

Explain the importance of small businesses and business start-ups to the growth of the social
economy
According to the Francone Fernandes, 2018. the small businesses and start-ups play a vital role
in growth of social economy of every country. In UK these SMEs majorly contributes in order to uplift the
living standards of peoples as well as support the local communities in a several ways. Below are some
highlighters that shows the importance of such businesses and start-ups in the UK economy.
 Create Jobs- The small businesses and start-up create the new jobs and opportunities for the
local communities in the UK economy. According to the stats SMEs was generated 16.3 million
jobs that is around 60 % of all private sector employment in the UK economy.
 Add more value in GDP growth- The small businesses generate more value in the overall GDP
growth. The SMEs firms has contributed around £ 2.0 trillion in UK economy that is around 52
% of private sector turnover.
 Boost local communities livelihood- The number of small business and start-ups providing
several benefits to the people of UK. These business provides the easy assess to the number of
commodities to the peoples that rely on low mobility.
Conclusion
From the analysis of above report several entrepreneurial ventures were highlighted. These
ventures play a major role in creating the values for the people as well as also contributes in uplifting the
economy. In the report the characteristics of several business ventures were discussed that showed the
different approaches in performing the functions. In relation this their entrepreneur typology was also
discussed in the above report. Through the real data and statistics, the impact of small businesses on UK
economy were also highlighted that showed their effective contribution. These small business and start-
ups has contributed in the growth of social economy through the easy accesses of commodities.