Impact of entrepreneurial ventures on the social economy

Importance of small businesses and business start –ups will contribute to the growth of the social economy after ‘Brexit’ 8 TASK 310 P5. With practical examples, examine how background and experience can hinder or foster entrepreneurship 12 CONCLUSION 13 REFERENCES 14 INTRODUCTION Entrepreneurship can be defined as number of activities that helps in setting up a whole new business. Different types of entrepreneurial ventures and the typology of entrepreneurship Entrepreneurship refers to a concept of developing an idea and convert it into business

ENTREPRENEURSHIP

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Different types of entrepreneurial ventures and the typology of entrepreneurship..........1
P2. Similarities and differences between entrepreneurial ventures........................................3
TASK 2............................................................................................................................................5
P3. Micro and small businesses impact on the economy.......................................................5
P4. Importance of small businesses and business start –ups will contribute to the growth of the
social economy after ‘Brexit’.................................................................................................8
TASK 3..........................................................................................................................................10
P5. Determine the characteristics, traits and skills of two successful entrepreneurs, which
differentiate them from other business managers.................................................................10
P6. Reflection entrepreneurial motivation and mindset.......................................................11
TASK 4..........................................................................................................................................12
P7. With practical examples, examine how background and experience can hinder or foster
entrepreneurship...................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Entrepreneurship can be defined as number of activities that helps in setting up a whole
new business. On the other hand, entrepreneur is the one who takes financial risks and sets up a
business with keeping an aim of earning profit at maximum level. In present world,
entrepreneurs are playing a crucial role in developing economy of a country. It has been found
that people majorly understand that starting up a new business is a simple process but for the
fact, it is a very complex process and entrepreneur majorly put all his/her capital with an aim of
earning profit (Blackburn, Hart and Wainwright, 2013). Present report will discuss many things
like types of entrepreneurial ventures along with its typology. Apart from this, it will also include
similarities and differences among entrepreneurial ventures. Along with this, using relevant data
assignment is going to be enclosed with business start –ups and their contribution over growth of
the social economy after ‘Brexit’ and hinder or foster entrepreneurship that will help in
understanding the concept in depth.
TASK 1
P1. Different types of entrepreneurial ventures and the typology of entrepreneurship
Entrepreneurship refers to a concept of developing an idea and convert it into business
model in order to earn profit by taking several risk along with strategies and concept to grow it
for further time. Simply put, entrepreneurship is a willingness to start a new business. It plays a
vital role in an economic development and creating employment in a whole world. An
entrepreneur is someone who is considered as an innovator, a risk taker and a leader in itself. He
is an initiator, challenger, business leader, motivator or someone that creates something new,
either an initiative, a business or a company (Bridge and O'Neill, 2012). An entrepreneur might
not be an ideator, definitely one that decides to make an idea a reality. In modern word, there are
many key ventures like Online retail consigner, consultancy, copywriting, blogging and many
more which is attracting entrepreneurs.
Entrepreneurial ventures : It can be defined as a venture that places innovation and
creativity at its heart in order to produce economic or social value. Today, Entrepreneur are
associated with different types of venture:
Large Corporations – It deals with growth and feasibility by utilizing new products and
services at higher extent and module themselves according to growing trends and business
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environment in a market. There is huge competition in large ventures as more new businesses are
entering into market with a point business idea and even challenging one. So, current businesses
need to grow along with current trends and increasing competition in a market.
Small business - When it’s a matter of small business, UK has an immense rate in club
of new or existing start-ups. There are 3630 start-up clubs in UK which reveals that there is huge
scope for new ventures in a near future. A main reason behind developing small ventures is that
they are contributing to development and growth of an economy and also helps in creating new
employment scope (Carsrud and Brännback, 2011).
Scalable business start-ups – This type of entrepreneur venture more focuses on quality
and creativity aspects. For these aspects, they involve qualified and most efficient personnel as
their part of ventures. Main aim of these start-up venture is to increase scale of venture which
needs financial assistance and capital funds for their expansion.
Lifestyle entrepreneurship - This type of venture starts with a purpose of adapting
personal lifestyle and not for a solo purpose of profit making. They mainly focus on providing
people with new trends and style in fashion and related field and do with passion what they have.
Typology of entrepreneurship:-
In this context, some of typologies related to entrepreneurship are Serial, Social, Female,
Male, and many more and few of them are described beneath:
Serial Entrepreneur: This type of entrepreneur majorly comes up with different unique
ideas in a continuous sense with an aim of starting a brand new business. This can be connected
with entrepreneurship of small businesses because at this level bringing in innovation do not
require much investment.
Social entrepreneur : Another type of entrepreneur where an entrepreneur establishes an
enterprise keeping an aim i.e. solving social problems or bringing positive change in life of
society. This can relate with lifestyle entrepreneurial ventures because it also helps in improving
lifestyle of social people (Chittithaworn and et. al., 2011).
Female entrepreneur : Feminist entrepreneur majorly keeps an aim to improve quality of
life along with well-being of women considering feminist values and approaches. This can be
connected with both small and large scale entrepreneurial ventures as there are many women like
Marian Ilitch, Judy Love and more who are doing business at international and national level.
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Male Entrepreneur : Majorly in every single country, male entrepreneurs rule the
business world and it is common in nature because it has been analysed that men mainly takes
risk more than women and tries to pull best outcome out of what they have (Chrisman and et. al.,
2012). This can be connected with any entrepreneurial ventures like large, small, scalable and
lifestyle as male entrepreneurs can set an aim and starts up in any of this section depending over
the objective.
P2. Similarities and differences between entrepreneurial ventures
Similarities and difference between entrepreneurial ventures are given beneath:
Entrepreneurial
ventures
Similarities Differences
Lifestyle Ventures and
Serial Entrepreneurs
Ventures
 Lifestyle ventures are
majorly done at a small
level. On the other hand,
Serial entrepreneurial
ventures also majorly
starts up or runs there
business at small scale.
 Both of these
entrepreneurial ventures
do not require huge
amount of investment.
 Lifestyle entrepreneurs
majorly keeps there focus
over balancing the work-life
commitments and improve
overall quality of life. On
the other hand, Serial
entrepreneurs runs number
of businesses with an aim of
earning high profit.
 Goal of lifestyle
entrepreneurs are short in
nature whereas serial
ventures believes and
focuses over long term goals
and objectives.
Large and scalable
entrepreneurial
ventures
It has been found that major
similarity among both of these
ventures is that they
manufacture products and
services with keeping an aim
 Major differences among
both of the entrepreneurial
ventures is that large
ventures already consists
with high number of
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i.e. fulfilling requirements and
needs of targeted customers
(Dennis Jr, 2011).
 Another similarity
among large and
scalable entrepreneurial
ventures is that they
believe in developing
strategies with
innovative approach.
With the help of this,
both of the
entrepreneurs become
able to deliver products
and services to
customers as per their
own desires.
resources whereas scalable
ventures keep it focus over
using sufficient resources in
an optimised manner.
 Large entrepreneurial
ventures may invest huge
amount of capital in order to
improve customer base.
Apart from this, scalable do
not follow the same because
of shortage in capital and
looks forward to reaching to
customer with smart ideas.
Male and female
entrepreneur
 Male and female
entrepreneurs may keep
same sort of psychology
and follow similar type
of leadership styles in
order to run businWhat
is an SME. 2018ess in a
successful manner.
 Both of the
entrepreneurs takes
financial risks in order
to start up a business
which can be considered
as the basic similarity
 Major difference among
male and female
entrepreneurs have i.e.
decision making styles, risk
tolerance, goals for the
business, financing of the
business, management
styles, networking ability,
motivation and many more
which makes them antithetic
from each other.
 Way of thinking of both
entrepreneurs also differ as
male believes in earning
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among male and female
entrepreneurs.
profit and most of females
has kept their belief in
empowering women.
TASK 2
P3. Micro and small businesses impact on the economy
Modern business world is filled with ample number of opportunities for small scale
companies and start-ups. In United Kingdom, people with the age of working has kept their
belief in becoming an entrepreneur rather than working in another person's company. It has been
analysed that most of enterprises are dealing or working in two major sectors i.e. manufacturing
and service (Drucker, 2014). On the other hand, they have also kept their focus over an aim
which is fulfilling needs of consumers because then only they can earn profit or hit their desired
targets.
This belief of business people/entrepreneurs at small level have given almost 50% of
employment to citizens of United Kingdom. On the other hand, at micro level, industry may
carry 9 employees at a time where small business firms should have less number of staff (Impact
of small-business in UK economy, 2017).
In addition to above factors, regulatory bodies of UK has set certain limits of investment
for micro, small and medium sized business as per sector:-
Basis Manufacturing Sector
Micro enterprises In establishing manufacturing industries at micro
level,employees must be less than 10 and its turnover should
not exceed £ 2 million (What is an SME, 2018).
Small Enterprise For launching small business in manufacturing sector, it
requires approximately 50 employees employees and total
turnover must be under £ 10 million
Medium enterprise At medium level organisation can have approximately 250
employees with the turnover of £ 50 million and less. .
Differences among Sole Proprietorship and partnership are given beneath:
Basis Sole proprietorship Partnership
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Formation Easiest formation with minimal
formalities related to legal aspects.
Mutual understanding over legal
agreements and a little complex
format.
Members Single owner who bears both loss and
profit by his/her own.
Minimum 2 number of members
a partnership based firm should
have.
Capital Contribution Limited Finance Less but more finance/capital
Some of SME's impact over local, regional and national areas of UK are given beneath:
The impact of Micro and Small business enterprises on economy:-
Local Impact – Small business organisations majorly keep its focus over providing
exactly what customers are looking for. This helps in satisfying need and wants of customers.
With the help of this, it can be said that economy of United Kingdom will definitely get
improved because consumers are not going to any other international company to buy products
or services.
(Source: Local impact, 2016)
Interpretation: With the help of above mentioned graph, it has analysed that expansion
of small business has helped United Kingdom in decreasing unemployment rate. Slight rise of
graph over the years is clearly showing that number of job opportunities in United Kingdom is
improving. On the other hand, from 2009 to 2015, it has been interpreted that type of business
ride employment trends from 3,000,000 to 6,000,000.
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Illustration 1: Local impact

Regional impact – It has been examined that at regional sector, micro, medium and
small scaled business organisation have impacted in a huge manner. There are many companies
in all of these sectors that have impacted positively over economy of United Kingdom as they
were dealing in a specific region (Fassin, Van Rossem and Buelens, 2011). Considering a policy
which is fixed price but reasonable of products and services can be taken as something that may
aid company in earning profit because there will be no comparison with other products of a
different firm.
Interpretation: With the help of above mentioned graph, it has been interpreted that
United Kingdom's economy is improving from last 2010 to 2017. Here, CRM software revenue
forecast showed that 13,950 raised to 36,509 dollars in the year of 2017.
National Impact – Small enterprises have operated their business in local area and earn
less capital, therefore, they haven’t much impact on GDP at national level.
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Illustration 2: Regional Impact

Illustration 3: National impact
(Source: National Impact, 2017)
Interpretation: From this statistical data, it has interpreted that GDP rate of UK
increases from 1% to 3.9% from year 2010 to 2015.
P4. Importance of small businesses and business start –ups will contribute to the growth of the
social economy after ‘Brexit’
Brexit is withdrawal of United Kingdom from European Union. In a referendum on 23
June 2016, a majority of British voter supported for leaving United Kingdom from EU. UK
government invoked Article 50 saying that every nation has freedom to follow their own law.
After whole negotiation process, 29 march 2019 date is fixed for withdrawal of UK from
European Union. It is clearly mentioned that UK government still have 2 years from 19 June,
2016 for negotiating to build new relationship with EU.
Threats of Brexit on United Kingdom – Removal of UK from European Union will create
major threats like trade barrier with other countries of EU, price war, negative relation, security
policies and support in case of any critical situation etc. There also some positive output from
this whole procedure, but threats need to be taken care of (George and Bock, 2011). On the other
hand, United Kingdom will get freedom of creating or amending their own trade policies,
economic stability and growth of their economy.
Difference between small business and start-ups:
Basis Small Business Start-ups
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Definition Small business is an independently
owned and operated firm which is
limited in size and revenue depends on a
scale of an industry.
Start-ups is an initial idea of an
entrepreneur to run a business
with an aim to meet a market
need, want or problem by
developing by feasible
business model
Rate of growth Rate of growth will be high because of
the removal of international burden to
trade, flexible taxation policy,
independent regulation of business etc.
It is also high in case of start-
ups which results from support
of government, innovative
idea, regulation system etc.
Way of finance Small business have no financial
security so they completely depends on
loans or borrowings through banks,
money-lender, financial institution etc.
Growing trend of start-ups
attract investors to raise money
in return of investment they
made.
The importance of Brexit in other parts of the world - It will help other countries to
regulate strong relation with UK. After this, there are possibilities for tourism and FDI move in
overall UK and other countries. Removal from EU will attract more import/export in regards to
other countries. Brexit will enable strong relation of UK with other part of world. Economic and
social development - Brexit will play pivotal role in bringing democracy in UK. They will get
freedom to create their own trade policies, deciding growth strategy, job creation, removal of
economic burden etc. Tourism is major source of revenue to United Kingdom as this will help to
remove unemployment and attracts more tourism to generate revenue in an economy
(Gorgievski, Ascalon and Stephan, 2011).
Reduction in poverty and wealth generation – Brexit will help in removal of poverty
through more employment generation by help of creating new start-up opportunities, changing
banking policies Accelerate UK economic growth - It will help United Kingdom to accelerate
their economy by controlling inflation, cutting down prices of commodities, favourable foreign
and trade policies. Independence from trading off with other countries is a great move for UK to
gear their economy.
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TASK 3
P5. Determine the characteristics, traits and skills of two successful entrepreneurs, which
differentiate them from other business managers
An entrepreneur is consists with various skills along with innovative mindset that helps in
delivering appropriate services to customers as per the requirements. On the other hand, a
manager is the one who manages all the business activities of a company. Therefore, both
entrepreneurs and managers have different characteristics, traits and skills from each other. In
present context, two entrepreneurs (James Dyson and Simon Cowell) have been taken that
consist with many traits and these are given below: Self- belief and dedication: both of the successful entrepreneurs consists with confidence
along with believe over the skill & capableness that they were having. This directly
impacts positively over using innovative approach while making effective decisions for
the organisation so that maximum benefits can be gained. Adaptable & flexible: Because of rapid change in nature, technology and demographics,
both James Dyson and Simon Cowell had carried in changing mindset over systems that
they were using. Rapid changing nature has helped them in developing right strategy
through which maximum benefits can be gained.
Passionate & motivation: This is being considered as another trait that helped both James Dyson
and Simon Cowell to become successful among others (Islam and et. al., 2011). Passion and
morale are the two major things that can pull out a person from any sort of difficult situation.
Henceforth, these are some of major traits which helped both James Dyson and Simon
Cowell to become successful entrepreneurs over others.
Difference between an entrepreneur and business manager:
Basis Entrepreneur Business manager
Definition An entrepreneur can be considered
as an individual that carries
innovative ideas and implement it
in real life so that to fulfil needs
and requirements of customers as
per needs and requirements with
Manager is the one who majorly
keeps its focus over managing all the
business activities so that company's
goals and objectives can get attained
in specific time frame.
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an aim of earning profit.
Risk taking Entrepreneurs are high risk takers
where they take risk related to
finance and other factors in order
to gain maximum profit.
Business managers do not believes in
taking risk and believes in following
tried and tested approaches so that no
issue come across.
Status Entrepreneur is the one who starts
the whole business and take
initiatives. They can be considered
as the up most decision takers if it
is decided over status in a new
company.
A manager cannot take decisions by
his/her own and take advise from
seniors that what needs to be done
next.
P6. Reflection entrepreneurial motivation and mindset
An entrepreneur should pursue ability to be risk taker and know how to handle critical
situation at time doing business. He/She must be good motivator, leader, role model and an
inspiration. They must enriched with traits or skills under personality traits model OCEAN
model. An entrepreneur should be imaginative, task oriented, responsible, idealistic etc. Success
full business leader possess abilities to interact with others, sharing knowledge and idea and
judging some. Apart from this, Decision making is a one of the important need from growing
entrepreneurs or he/she must motivate others to take decision at certain point of time.
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(Source: Five factor model, 2018) Openness to experience: It tells how people open and excited to learn and enjoy new
experience and new things. Openness traits include being insightful, imaginative,
interested and thought process (Kirzner, 2015). Conscientiousness: It tells how a person is committed towards his/her task, goals, duties
etc. These traits include mindful person, organized, idiotic, methodic and thorough. Extraversion: These traits involves being energetic, talkative and assertive. It tells how a
person is motivated to energizes and interacting with others. It also includes
communication skills, attitude, personality of a person. Agreeableness: These individuals are friendly, cooperative, and compassionate. People
with low agreeableness may be more distant. Traits include being kind, affectionate, and
sympathetic.
 Neuroticism: This relates to one's emotional stability and degree of negative emotion.
How a person effects someone with his/her level of emotional thinking and attitude? This
trait includes being tense, moody, charismatic and happy.
TASK 4
P7. With practical examples, examine how background and experience can hinder or foster
entrepreneurship
It has been found that there are ample number of practical examples present in today's
business world that showed condition of fosters or hinders the whole concept of
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Illustration 4: Five factor model

entrepreneurship. Basic reasons which has been found in present context are : qualifications,
cultural background, regional languages, attitude and many more (Lee-Ross and Lashley, 2010).
Some of rewards that can be seen in entrepreneurship are : control, excitement, flexibility and
freedom. On the other hand, some of drawbacks are : competition, government and no regular
benefits. Here, an example can be taken of Nicholas Woodman who is the founder of GoPro, Inc.
in early days Nick started a business with company named as Funbug but the idea failed and cost
him over 2.9 million pound as loss and he was not having a good background as well. Therefore,
bringing in a whole new idea without doing a proper research may take an entrepreneur to face
number of losses (10 Entrepreneurs Who Failed Before They Succeeded, 2017).
Thus, it can easily be said that past background, education, society, culture and
experience foster or hider entrepreneurship in a person.
CONCLUSION
From the above report, it can be comprehended that an entrepreneur should consists with
open mindset and carry an extrovert thinking while doing a start up of a whole new business.
Moreover, an innovative entrepreneur will easily grab good position in market in short period of
time. Along with this, business tycoons are required to make effective strategic plans before
opening an outlet as well as determine needs of customers as well. Further, they should analyse
situation of marketplace and way to deal with the same. This would help in running business
operations in a profitable manner.
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