Entrepreneurship: Types of Ventures, Influence on Economy

This document discusses different types of entrepreneurial ventures and their relation to typology. It also explores the influence of small and micro businesses on the economy.

ENTREPRENEURSHIP
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Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
P1 Different entrepreneurial ventures and their relation to typology..............................................3
P2 Similarities and Differences of the ventures..............................................................................4
TASK 2............................................................................................................................................7
P3 Inspection of various research and relevant statistics data that illustrate the influence of the
small and micro businesses on the economy...................................................................................7
P4 The contribution of the small businesses and start-ups in the growth of the social economy
after the exit of Britain from the European Union...........................................................................8
Task 3.............................................................................................................................................10
P5 Distinctive Characteristics of Successful Entrepreneurs..........................................................10
P6 Reflection of Entrepreneurial Motivation and Mindset............................................................11
Task 4.............................................................................................................................................12
P7 The regions that specify the background experience, strengthening, and fostering of the
business on the relevant entrepreneurship.....................................................................................12
Conclusion.....................................................................................................................................13
Reference List................................................................................................................................14
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Introduction
The beginning of a new business is often referred to as entrepreneurship. It includes the
designing of the business, launching it and finally running the organisation. The entrepreneurs
have the capacity and urge of developing, organizing and managing a business venture along
with handling any kind of possible risks for making profits. The person who runs the enterprise
is called the entrepreneur and he is responsible for all kinds of operations of the business. The
person does not work as an employee but as a business leader who is skilled and innovative.
Entrepreneurship constitutes of leadership, team-building and management capabilities.
Task 1
P1 Different entrepreneurial ventures and their relation to typology
As stated by Autio et al. (2014), are several types of entrepreneurial ventures that include small
business venture, scalable start-up venture, large company ventures and social ventures. Small
business ventures refer to the enterprises run by an individual on his own. They hire people from
the locality or family as employees. They most run these in order to make profit to feed their
family. These small businesses get their funds from either friends or family of from small loans.
Examples of these businesses are carpenters, plumbers, grocery stores and so on. Scalable
entrepreneurs start their business with a vision of changing the world. Investments in these
enterprises are made from financial investors or venture capitalists. Such entrepreneurs seek
models of repeatable and scalable business. Scalable ventures always look forward to rapid
expansion. As stated by Drucker (2014), large company ventures have a definite life cycle. These
ventures regularly offer new products that revolve around their core products. New competitors,
technologies and changes in customer preferences influence them. Often the large size and
culture of a company makes it difficult to execute the disruptive innovation. Social ventures
mainly develop services and products that target at solving social needs and issues. Instead of
focussing on market share or increase wealth, such companies aim at creating a better world.
These types can non-profit, profit or hybrid organisations.
Each of these ventures is related to the typology of entrepreneurship. The typology includes
several entrepreneurs. Serial entrepreneurs are those who develop new ideas and businesses on a
regular basis. This is often related to the large-scale ventures as new ideas helps in expanding the
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business. Lifestyle entrepreneurs refer to the individuals who start business only with the aim of
changing the personal lifestyles instead of solely making profits. These are often related to small-
scale entrepreneurship and have greater possibility for success as the person is working for
intrinsic passion. Women entrepreneurship is closely linked to the economic growth and can
involve any kind of ventures. Women entrepreneurs for themselves create new opportunities.
Women also help the society by providing different kinds solutions to managements and other
business problems. However, they often face several challenges and are prone to endorse in
small-scale entrepreneurial ventures. Male entrepreneurship is the most common ventures all
around the world.
In the UK, male entrepreneurship dominates most of the leaderships of small UK companies; on
the contrary, women only constitute 6.4% of the board members (Ft.com, 2017). An example of
a successful serial entrepreneur venture of UK is ‘Gojimo’ run by the young George Burgess.
The business publishes different revision apps and exam preparation tools. Example of lifestyle
entrepreneur is ‘The Six Figure Mentor’ in UK. It is run by Stuart Ross and provides people with
a training program to get a greater free and flexible life. Different types of entrepreneurial
ventures are closely associated and related to the typology. However, each of the ventures is
somewhat similar and different from others, that will be assessed in the next parts of the
assignment.
P2 Similarities and Differences of the ventures
The entrepreneurial ventures are all-similar in terms of the practices and set up. Each venture is a
form of business and run by an individual. However, the aims, targets, challenges faced as well
as the scope of profits are different for each entrepreneurship. A detailed analysis of the
similarities and differences between the entrepreneurial ventures mentioned above will clear this
concept.
Similarities between male and female entrepreneurship- Both male and female entrepreneurs are
very hard workers and each has the potential to overcome the obstacles. Both type of businesses
look for greater opportunities and solutions. The businesses can get hold of new ideas or markets
and identify whether the new venture will be viable or not. Both businesses always focus on their
stakeholders and partners. However, there are certain distinctions between the two. As stated by
Baum et al. (2014), these include the styles of making decisions, ability to tolerate risks,
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objectives and finances of the business, the management and networking procedures and the
motivations. Table 1 shows these differences:
Male entrepreneurshipFemale Entrepreneurship
Business focuses on cost and economySocial contribution is the only focus
Manufacturing and construction business
mainly
Business includes small retail and service-
oriented ones
The owners are task-oriented, takes decision
easily and are eager to take financial risk
Owners mainly focus on employee-employer
relationship, which makes difficulty in taking
decisions, and financial risks are less
implemented.
Businesses require little social support and
less worried about the ownership
It requires great social support and are more
concerned about the owner
These have greater capital and debt; also the
capital is easily accessible due to greater trust
of the banks.
These have less capital and debt
comparatively and it's hard to access the
capital. There is also a lack of financial track
record.
Male entrepreneurs have a strong initiative
and are externally focussed to earn more
money using previous experiences.
Females are critical thinkers, autonomous,
positive and are aggressive while dealing with
business. The want to have a sense of
accomplishment more than achieving money.
These businesses have a large network with
easy access and are in the form of an
organisation.
These have small network with reduced
access and mostly engaged family and friends
of the owner.
These businesses are logically thought,
oriented and aggressively expanded if
situations permit.
These are intuitively thought, incorporating
communicative and expressive behaviours of
the workers. These are more careful and
conservative in case of expansions
Table 1: Differences between Male and Female Entrepreneurship
(Source: Self-Developed)
The lifestyle entrepreneurship and serial entrepreneurship has certain common traits. In both the
businesses, the owners have personal satisfaction, financial profit, stability and enjoyment in
what they do. As stated by Bittencourt et al. (2016), they manage the financial aspects wisely as
in serial businesses developing new ideas regularly requires financial assistances. Similarly,
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lifestyle entrepreneurs also have to maintain the funds effectively for changing personal
standards. Both the businesses proceed by developing a well-organised plan. Both the business
are customer-oriented. Each of the two businesses always promotes a positive attitude and
business. Despite The lifestyle and serial entrepreneurs, also have certain differences. Table 2
illustrates these differences.
Serial EntrepreneurshipLifestyle Entrepreneurship
The most important aspect of this is the time
management. The owners follow a very
aggressive and intentional management of
time
They focus more on perfect lifestyle standards
than quick performance. More time often
ensures greater perfection.
These businesses quickly move from the start-
up phase and proceed to the sustainable
advancement trajectory.
These are resilient and do not run after
money. They take time to establish their
business.
Less flexibility as the ideas are often
transferred to new people.
Independent business and therefore has
greater flexibility.
Sometimes less realistic as they tend to think
big.
More realistic
Can be any kind of ventureMostly small-scaled
Table 2: Difference between Serial and Lifestyle Entrepreneurship
(Source: Self Developed)
All the different types of entrepreneurial ventures are similar to some extent but widely differ
from each other in various aspects. As suggested by Lafontaine and Shaw (2016), these
differences actually are inherent to their classification and helps future entrepreneurs to make
choices about the field of business that will suit their aims, objectives and passions. Several traits
contribute to the success of entrepreneurship and distinguish the owners from ordinary managers.
An assessment in the next part will help to understand this concept in a better way.
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TASK 2
P3 Inspection of various research and relevant statistics data that illustrate
the influence of the small and micro businesses on the economy
In this research, the relevant statistics that influence the economy of any country has been
illustrated in detail. The statistics shows the different sectors where the small and the micro
industries have played significant role in varying the strategies of business resulting in the
extensive increase in the economic stability of the respective region. The statistics shows the
turnover of the various segments of the businesses that show the difference in the ranges of the
business operations.
The ventures of the small-scale enterprises or the micro enterprises excepting the medium ones
in the manufacturing sector are the ones that have the turnover not extending 500 million and the
employees’ availability within the limit of 200 while in the services and other sectors the same
specifications differs. In addition to this, the service sector defines the same sector as of 20
million and the total employees availability is in the range of 75.
Figure 1: Turnover of small, micro and medium entrepreneur ventures
(Source: Shepherd 2015)
The turnover of the various sectors in the respective sectors shows that the flow of the
investments and the profit aspects of the definite sectors remain streamlined if the statistics are
within the acceptable range.
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The sales turnover of the different ventures in most of the industrial sectors along with the
service sectors shows medium enterprises is in the range of 75 to 200 million while in the range
of the small-scale sectors the same turnover lies in the range of 5 to 75 million. Moreover, the
range of the same entity in micro sector is in the range of 5 million.
The entrepreneurial ventures are the collaboration of the owners of the different businesses that
attempts to take risk and initiate to make profits while maintaining the same intermediary and the
business strategy. According to Carland, Carland, and Stewart (2015), the main aim of the
business in the to share the common profit as well as bear the risks as well, so that the effective
growth signifies the extensive growth that makes the economy sustainable.
There are different types of entrepreneurship styles in the business sectors that can be skeptical
ones or that inspect the businesses of others. Additionally, with the added benefit of the copycat
entrepreneurs that follows the same strategy of already established owners. Another significant
strategy remains the research in the definite sectors of already available research sides.
Furthermore, the specific goal oriented strategies of the entrepreneurship that determines the
objectives and the accomplished ones that specify the different stages of the research strategies.
Additionally, these different ranges of the ventures among the different enterprises specify the
importance of the analysis of the components and this signifies the applicable inquiry and
research purposes. This gives the limited research field and evolution of the existing model and
systematic approach for cognitive development in the business fields as given in the data above
specified statistics.
The scope of the research shows the importance of the specific strategies that different ventures
of the small businesses frame in order to withstand any challenge in the local or regional areas
that otherwise remain arduous to overcome. In view of Cumming and Zahra (2016), the
exchange of the research policies further accomplishes the purpose of maintaining the stability
and the relevant growth of the collaborations leads to shared growth
P4 The contribution of the small businesses and start-ups in the growth of the
social economy after the exit of Britain from the European Union
This section of the research focuses on the importance of the small business and start-ups that
influence the social stature even after the exit of Britain from the European Union. The growth
extensively takes into account the literature and business prospects of the small scale and micro
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enterprises because of the core involvement in the growth prospects of the enterprise.
Furthermore, the entities deal extensively with the economic growth rate.
As soon as the UK separated from the European Union, the growth rate has taken a sharper
decline and the conditions became worsened. The major reasons for the fall of the gross domestic
rate being the overall consumption rate of the products and services reduced drastically making
the situation adverse.
These small enterprises are the lifelines of the Britain’s business chains and the exit from the
Europe’s collaboration leads to the extensive problem in the ventures that the small businesses
form to bear the losses. The construction units collapsed and the money value reduced to almost
half of the earlier counts.
Denscombe (2014) stated that while the small businesses are more susceptive to withstand
shocks as there region of operation is less and work in chains that lead to extensive and
complicated functioning of the enterprises. The workings of the small industries are more on the
local extent ultimately and this struggle carries in the respective chains. Unlike the large
business, the smaller ones cannot call on for large investments or loans that can help them
mitigate the problem but deteriorate their decisions. Additionally, the subordinate businesses
that are interlinked with one another suffer due to lack in the stability caused by the Britain exit
from the current scenario.
The stability of the small industries has become vulnerable due to the prevalent situation and it
exposed the enterprises to bear huge economic crisis. Small business does not get the support of
forward contract that otherwise is quite an easy task for the large enterprises. Drucker (2014)
opined that the social structure of the enterprises is in weak condition because it is completely
dependent on the stake of one or two big companies rather than the small enterprises and thereby
leads to the situation of depreciation in the interlinked relationships.
The long-term effect of the vulnerability of the small enterprises is difficult of the small
businesses and cause trouble for the existence of the domestic growth of the businesses. In the
local and international space, the complete chain of the business signifies the stability of the
enterprise over the exit of Britain from the European Union.
The difference of the status of the small, medium and large enterprises show the economic
stability of the respective details further enhances the scope of growth. The range of the
extensive policy framing and compliance to the stature further gives addition to the economic
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stability but it is completely dependent on the consumption market that the target enterprise aims
to achieve.
Task 3
P5 Distinctive Characteristics of Successful Entrepreneurs
The success of any kind of entrepreneurial venture depends on the unique traits and skill of the
entrepreneurs and these skills distinguish them from the ordinary business managers. Generally,
a business manager develops business out of an idea or enters into franchising and retailing. The
focus is on profit irrespective of the idea being borrowed or original. On the other hand, an
entrepreneur is the creator and inventor of the project. As stated by Kirzner (2015), the motive of
entrepreneurs is personal gratification by setting up an enterprise compare to a manager who
renders service in an existing project. Entrepreneur has the ability to bear all the available risks
in a business but a manager does not have. The profits of an entrepreneur are uncertain but the
salary of a manager is fixed. As opined by Nambisan and Baron (2013), the entrepreneur thinks
of all the plans and steps to execute and the manager just carries out those plans. An entrepreneur
possesses high qualifications to achieve high originality and thinking, whereas business manager
just needs to have knowledge in management practices.
Two of the most successful UK entrepreneurship businesses are the Mainstage Travel owned by
Aden Levin and Rob Tominey (forbes.com, 2017). It is a business of providing holiday packages
and clubs to young visitors during the festival by providing cheap sources. Another is the Gojimo
serial entrepreneurship owned by George Burgess, that publishes revision applications and exam
preparation tools for students. Both these entrepreneurship owners have different skills and traits
that distinguish them from ordinary business managers. As suggested by Stuetzer et al. (2013),
successful start-ups require a good and well-planned initiative. The Mainstage Travel had this
initiative and cultivated it to present it to a wider audience. George Burgess had the imagination
of using technology to aid the studies. Ordinary business managers do not have these skills and
only use the ideas of the different successful entrepreneurs. Bravery is another important skill.
Starting a company always requires a significant financial investment and social support. To
attain both, requires great courage. Both the entrepreneurs had a great persuasive attitude.
Confidence plays an important role in business. Meeting the challenges and various obstructions
requires a lot of self-faith and the entrepreneurs have successfully incorporated them, which
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differentiated them from the business managers. Both of them also practised empathy that is a
key trait. It helps in understanding the nature of the prospective customers and providing them
with their desired product. All the above-mentioned traits critically distinguish them from the
ordinary business managers and help them to stand out in the crowd of entrepreneurs as well.
P6 Reflection of Entrepreneurial Motivation and Mindset.
As stated by Schreier et al. (2014), the skills and traits of the entrepreneurial personalities also
give a reflection of their mindsets and kind of motivations. A person’s personality traits can be
fitted into a cluster of characteristics that is often referred to as the OCEAN model. In the field of
entrepreneurship, personality plays an important role. The most vital personality traits of the
entrepreneurs are:
Open Attitude towards Experience- Both the owners of the above-mentioned businesses possess
a degree of curiosity, creativity and prefer novelty and variety in offered services. This reflects
that their mindset always appreciates art, adventure, new ideas, curiosity about unknown things
and variable experiences.
Conscientiousness- This refers to being self-disciplined, dutiful, competent, thoughtful and
hungry for achievement. The Mainstage Travel and Gojimo owners possess these traits,
reflecting a tendency towards spontaneous activities rather than being dependable. This
contributes to their success. As stated by Yang and Lester (2016), conscientious and success go
hand-in-hand.
Extraversion- The owners surely possess both high and low extraversion depending on
situations. They sometimes have greater energy, positivity, sociability and have to cooperate
with other workers in the company. On the other hand, sometimes they have work in solitude and
avoid large groups in order to solve a problem effectively.
Agreeableness- This is the best personality trait of the above-mentioned owners as it reflects
their compassionate, cooperative and trustful nature. Without this kind of mindset, a successful
business is never possible.
Neuroticism- High neuroticism reflects anger, short-temperedness, depression and vulnerability
whereas low neuroticism reflects calmness and evenly tempered mindsets. The entrepreneurs
possess low neuroticism in order to achieve success.
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Task 4
P7 The regions that specify the background experience, strengthening, and
fostering of the business on the relevant entrepreneurship
In this research, the objective specifies the regions of the background specification that stresses
the different hindrances and strengthening steps for entrepreneurship and respective examples.
Various factors influence the entrepreneurship structure and their relevance in the sustainable
growth aspects of the growth of the economy.
Sahr et al. (2016) opined that the most influencing factor affecting the social responsibility of the
organization involves the culture of the locality where the entrepreneur aims to obtain its
objective. Furthermore, the strategy that compels the organization to create the innovative
thinking styles related to its business market regions. It involves the management of the different
resources along with proper framing of the idea management and involves collaboration of
various informative experiences.
The stress is on the engagement of the various resources that evolve the strategic alliance of the
industries and the related actions that can be practiced while implementing the resources. A
different plan of the established companies needs examination by the entrepreneurs for
organizational sustainability.
The main example that specifies the required knowledge of any entrepreneur in the
infrastructural areas specifies the possibilities that can lead the enterprise to turn the idea into
reality. It explains the expenditure requirements and the investment plans that influence the
decisions. Additionally, the scope of growth specifies the need to analyze the need of restricting
within the limited resources, management of relevant resources including maintaining the work
culture with the competitive environment.
The various constraints associated with the structuring of the entrepreneurship include the capital
resources that vary according to the operational cost of the enterprise. In addition to this, the
human capital availability is another important driving force for extensive detailing of the
resources and hinders the entrepreneurship development. The emphasis relies in the low cost
involvement of the labor and is the prime factor for utilization of resources leads to reliance in
the immobility. The arrangement of the raw material according to the requirements further leads
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to extensive detailing of the production factors and this restricts the opportunity of the enterprise
and hinders the entrepreneurial enhancement.
According to Vorley, Fearne, and Ray (2016), the instability in the market further leads to
deterioration in the stability of the business culture and hinders the sustainable growth and leads
to extensive research problems. The lower levels of infrastructural establishments further
deteriorate the activities of the institutions thus contributing vulnerability to industry and include
risk of economic rupture.
The different social structure leads to successive dependence on the growth of the precursor
tasks. The values and norms need intuitive contribution for promoting the communications
among the different sectors and actions of work.
Conclusion
Entrepreneurship defines the objectives for the growth of the economy of any region. It specifies
the successful and sustainable business practices and requires innovations and growth according
to relevant business strategies and new products and services in social structure. The different
practice involves the products and services that stresses on determining the changes and
recognizing the appropriate opportunities. The relevant innovations can be challenging
depending upon the responsibility of different stakeholders of the organizations. It includes the
strategic business policies that involve the sustainable businesses.
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