P1. Types of entrepreneurial venture and their typologies (Doc)

ENTREPRENEURSHIP

INTRODUCTION
Entrepreneurship is known as the process of setting up a new business and take financial
risk in hope of profit. Entrepreneur is known as the individual who develop a new idea or
concept to generate large number of revenues. Various type of featured products and services are
offered by entrepreneurs in order to attract more and more number of customers towards their
offerings. Small entrepreneurs play a big role in economic growth of a nation as these are the one
that provide employment opportunities to local people. Various factors are there which affect the
performance of small enterprise it is very essential for entrepreneurs to identify and examine
those factors in order to formulate an effective strategy related with execution of commercial
operations. The report covers detailed information about different types entrepreneurial ventures
and their different typologies is all given in this project. Further, contribution of small businesses
in economic growth of a nation and impact of micro business on economy is all included. In
addition to these various factors that hinder or foster the process of entrepreneurship is all
detailed in this project (Aldrich, 2017).
TASK 1
P1. Types of entrepreneurial venture and their typologies
Entrepreneur refers to a person who come up with an innovative idea and take an
initiative to set up a new venture for availing the opportunities by bearing all the financial losses.
An entrepreneur is generally known as an innovator or source of new idea, goods, services etc.
who take up all the risk of starting up a business.
Entrepreneurship refers to the process of designing, launching and running a small
business venture in hope of making profit. It is a combination of land, labour, capital and natural
resources. Entrepreneurial ventures plays a major role in development of economy. Following
are the types of entrepreneurial venture:
Small business entrepreneurship:- A small enterprise refers to any type of business
venture which is independently owned and operated by an individual who is not engaged in any
promotional activities. These enterprises are smaller in size and its owner generally hire local
employees or family member. Small businesses are grocery stores, consultants, travel agents etc.
Main aim of these entrepreneurs is to earn their living as well as making profit and their main
source of capital is family/friend or small business loans (Choi and Majumdar, 2014).
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Scalable start-up entrepreneurship:-Unlike small business entrepreneurs, their main
aim is to start up their business by bringing innovative approach and they have the capability to
change the world. These entrepreneurs more believe on themselves and have the ability to
transform their dream intro reality. They start their venture with some unique idea, set up
business and then sell it to another business person for executing their new plan.
Large scale entrepreneurship:- These type of entrepreneurial venture are managed by
large group of people. Main aim of these entrepreneur is to achieve higher market share as well
as to maximise profits through accepting market alterations. Large scale organisation have
various sources to fund such as venture capital, investors, equity capital, bank loan etc. These
organisation has finite life cycle (Cooper and Folta, 2017).
Social entrepreneurship:- Social entrepreneurial venture refers to a business that are
generally established to serve society for their welfare. These entrepreneurs are the innovators
which brings product and services for solving the problems faced by society. Social enterprises
are operates as non-profit, for profit or hybrid. Main aim of these entrepreneurs are to identify
the need and want of the people. After determining their need, offering the product or services as
a solution to their problem.
Apart from these types of entrepreneurial venture there are various types of typologies to
which these entrepreneurs and their operations belongs. Typology of entrepreneur are as follows:
Research entrepreneur:- These type of entrepreneur are more focused toward
establishing their business by properly evaluating the market. They research each and every
aspect of market such as prevailing demand, competition etc. in order to formulate strategies to
achieve higher growth. Large scale entrepreneur invest large amount of fund over its research
and development practices for identifying the current market trend in order to satisfy customer's
demand. These entrepreneurs are more focused toward bringing changes regularly to deal with
dynamic environment (Cooper, 2017). This typology is related to scaleable entrepreneurship
because they are the individuals who research about scope of different methods and then take
actions to execute it.
Copycat entrepreneur:- This type of entrepreneurs sees the success of others and tries to
copy their practices in their own businesses. Main reason behind copying their practices is to
attract customers toward their offerings without putting much efforts. Small business
entrepreneurs are come under this category as their main aim is to earn their regular living. Small
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business entrepreneurship are related to copy cat typology because this is the business which gets
ideas from other individuals and copies it to start new business.
P2 Similarities and differences between various entrepreneurial venture
Entrepreneurial ventures are the business organisations organised and managed by small
number of people say one or two. These business have more risk and less sources of funds. There
are different types of entrepreneurial ventures which works at small level having different goals
and objectives. It is essential that manager has to make strategies through which they can deal
with market ups and downs. These noisiness has risk of being uncertain market trends. There are
different entrepreneurial ventures having same objectives and roles (Dees, 2017). But at the
same time there are some difference also. Similarity between entrepreneurial ventures are as
under-
Small business enterprise and scale start up- In both business venture, small amount of
funds are required. Funds are raised through internal sources such as family, friends etc. In both
the business, operations starts at small level and then develops it in big organisation.
Scalable start up and large scale enterprise- In both business, business expansion is
motto. In scalable start up, various business idea occur in mind of entrepreneur and hence
business expand., while large scale business also operates at big level. Scalable business and
large scale organisation aims at expanding business in related or different sector.
large scale and social enterprise- Large scale and social enterprise work according to
society need. Social enterprise has main aim to perform task to satisfy consumer demand and at
the same side large scale entrepreneurs also make strategies as per society need and hence
business growth is possible (Drucker, 2014). Large organisation has some social responsibility
which makes them to devote some income towards social benefits. At the same time, social
enterprises works for improving society welfare.
Apart from similarity, there are some difference also among them. These difference are
discussed as under-
Scalable start ups Social enterprise
 Scalable starts up work in order to
attain good profits by satisfying need of
consumers. Scalable starts up establish
different business ideas and in case of
 While social enterprise work in order to
raise living of standards of society.
 Social enterprise has same existing
business plan for which they are
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success, they work for new business
ideas. In case of failure of business,
these business enterprise liquidate.
 In this business, there is provision of
return on investment. As money is
invested through external sources.
working i.e. upliftment of society. So
there are very less possibilities of
liquidation and exit from market.
 Money invested in this form of business
is through donations,. Trustees, etc. So
there is no such provision of return on
investment.
Small business enterprise Large scale enterprise
 Small business enterprise needs small
amount of money to execute business
operations.
 Internal sources, family, etc. are parties
who invest money in small scale
business.
 Small scale business do not modify
policies according to market. Because
they have lack of resources and operate
business at small scale.
 While in large scale business, huge
investment is required to accept market
trends.
 External sources such as bank loans,
debentures, etc. are used to satisfy
consume demand.
 Large scale business alter business
policies according to market trends
because they have to satisfy consumer
demand and make good brand image in
industry.
TASK 2
P3.Assessment and interpretation of data to analyse micro and small business impact on
economy
Small business enterprise are organisation has less than 50 employees and working in
order to make existence in market. These business have different goals and objectives for which
they are working. There are numerous small business enterprise in UK playing vital role in
developing economy. Small scale business includes seasonal business, so it gives temporary job
opportunities in UK. Entrepreneurs are have idea which they transform in reality through small
scale so there is increment n export import of country (Frese and Gielnik, 2014). Small scale
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business plays essential role in creating employment opportunities, increase living of standards,
reduction in poverty, maintain GDP of country, financial independence, etc. benefits getting
from entrepreneurs. Small scale businessmen delivers goods at economical rate. hence this helps
to create satisfaction among society which helps to give promotion to them. This helps to
maintain economy of UK.
Micro business- This is the smallest business unit in business environment. This business
consist of maximum five people and operate by family members. They perform business
operation to earn livelihood.
Small business- Small business include sole proprietor, partnership, corporation. Small
business has up-to 50 employees. They are working to get good returns and up to some extent
they accept changes taking place in environment.
Medium sized business- Medium sized business has employees less than 250. Medium
sized business provide good product and services at economical rate to compete with other firms
and enhance customer base. They accept changes and they have aim to expand business
organisation.
Small scale business are helping hands for developing economy of UK. In 2014, there
were around 5.2 million small and medium scale business (The importance of small businesses in
the UK economy, 2018). In UK there were around 99% small business having employees less
than 250. According to census of May 2015, there was 33% employment and out of total
turnover 19% is from small and medium scale business. There was 15.2 million jobs from small
scale business in the form of work from home, free lensing, etc. According to data, 60% SME
raise funds from external sources to purchase, machinery, asset, etc. This helps in rotation of
currency and helps to maintain economic development of UK. Small business contributes £43 in
total turnover on annual basis. There are different small scale companies such as handicraft,
painting, etc. which makes country famous in tourism sector. This helps to get foreign exchange
and maintain currency reserve of country. There is economic crisis in UK in that time, small
business plays vital role in up-lifting it (The importance of small businesses in the UK economy,
2018).
As there is employment generation, so it helps to reduce poverty. This ultimately helps in
upgrading living of standard of country. As artisan, it is possible to improve skills which helps to
get good quality product and foreign consumer gets satisfied. In order to raise ideas of small
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organisation, there are different loans at no interest or low interest such as 0 interest rate loan.
These loans are provided by government, angel investors, etc. This helps in maintain cash inflow
and outflow and hence inflation rate can be maintained. With the help of small business, local
people have knowledge about changes taking place in society. They are competent to outer
world. With the help of small business enterprise economy of UK is developing as there is
increment in per capita income, GDP rate. In small scale business, textile, painting. Artisans,
chemical, etc. are involved, so this helps to increase export import for country. This results in
governmental revenue through import tax, octroi duty, etc. which helps to maintain economic
status of UK (Hitt and Duane Ireland, 2017).
Illustration 1: SME Performance Review
(Source: SME Performance Review, 2018)
Above mentioned diagram shows that small and media business enterprise plays vital role
in developing economy of UK. They generate employment, maintain financial status of country,
creates awareness in society related to changes taking place in environment.
As per graph, role of Small and medium enterprise is increasing year by year. Growth
rate of small business of UK is more that European Union and United Kingdom. As per
estimation after 2015 role of SME is effective. This is because there is promotion to
entrepreneurial ideas so this helps to create employment in country. Seasonal business helps to
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promote tourism sector which helps to maintain good image among other countries (Kirzner,
2015).
There is improvement in social as well as economic welfare of society with the help of
small and medium business. As per research, there is around 5.2 million business in UK which
deals in small and medium business enterprise (The importance of small businesses in the UK
economy, 2015). These are the business organisations which helps to get positive impact on
living of standards, income and raise in social background of society. There are many small
scale business which opens in U hence people residing in society has employment.
P4: Importance of small business or start ups in social economy after Brexit
Brexit is the legal act which takes makes big decision with majority of countries of
European Union. Hence decision was taken related to exist of Britain from European nation.
Before Brexit, there was no trade barriers to deal in Britain but after Brexit, there were legal laws
and regulations which has to be followed in order to trade in foreign country. The huge impact
on UK economy was that its slowed down the UK economy by 2.4% in 2017. Also, it resulted
UK to pay an exit fees of extra 3 million pounds over two years.
Furthermore, in the absence of tariff free trade; the costs of imports and other exports are
increased due to which the prices of British good also rises and less competitive in comparison to
RU nation's export. For this, start-up's and small business are much affected from this as it brings
more difficulties to achieve stability in UK market. Start-up's is defined as temporary ventures
which are designed for searching out for a repeatable and scaleable business models whereas
small business may be defined as self owned and managed, organised venture with an objective
of earning profits (Kuratko, 2016). Both such businesses provides maximum supports to the
growth of GDP through generating large employment opportunities for local people of Nation.
Significance of small and start-up's business are given as below:
 In UK, there are many small and medium business organisation which works to improve
social and economic condition of country. With the help of different organisations, there
is employment generations which helps to get positive impact on living of standards and
possibilities of social issues are less. It develops standard of living of people due to
which the UK government has provide some relaxation to new start-ups while entering
into market due to their maximum contribution to GDP of country (Brexit’s impact on
small businesses, 2018)
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 Also, Brexit has lead to abolishment of industrial sector. This has further induced UK
government to formulate many policies related with export and imports. It is because of
the fact that there is tremendous increase in imports from emerging economies like India,
Africa and Middle east. It assist local people to get wide range of products of different
nations in their own country which increases the income of small businesses as well.
 Technological up-gradations: These days, there are many changes taking place in
external environment, so there is improvement in knowledge of people residing in
society. For instance: marketing is done with social media tools which is time and cost
savy approaches for small and medium organisation. With innovations, there are different
techniques to attracts consumers and flow of money in economy is proper, hence there is
improvement in financial position of country..
After Brexit, in initial days, there was issue for the economy of UK because trade barriers
occur, so it is difficult for external brands to deal in Britain. Hence in this case,in initial years,
there was some issues which faced by UK economy such as unemployment. While this helps in
improving condition of small scale business and social and economic condition gets improved.
There are some changes which has to be made in working style which provides knowledge about
trade rules and regulations to residing people of UK.
TASK 3
P5 Skills, characteristic and traits of two successful entrepreneurs
There are many successful entrepreneurs whose start-up's and small business achieved
growth and success with the help of their unique and innovative skills and traits. Some of which
Marks Zuckerberg and Bill Gates are two such entrepreneurs who is well-known for their
innovative skills and traits in order to make their business more successful (Kuratko, Hornsby
and Covin, 2014). Traits and skills are important to have in an entrepreneur so as to drive
business to a success. Such skills are hereby listed with detailed manner as below:
Communication skills: To make a healthy relationship with the interested parties to an
organisation such as suppliers, investors, employees, customers etc. an entrepreneur must
possess communication skills. Bill gates and Mark Zuckerberg has attained good communication
skills due to which their stakeholders shows trust and loyalty towards them which is the main
reason of achieving success in their business. Therefore, communication play an important role
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in making business more successful with the help of receiving adequate support from the
interested parties. It can also be done through communicating plans and policies to employees,
products details to customers, financial performance to investors etc. This will in turn huge
profits and make easy for company to capture large market share and attain good position in
competitive market (Meyer, Neck and Meeks, 2017).
Delegation: The growth and success of business are very much depends on the efforts
and contribution of employees which can be received through allotting them appropriate roles
and responsibilities according to their skills and capabilities. For this, the entrepreneurs such as
Bill gates and Mark Zuckerberg has skill to identify the capabilities of their employees through
indulging them in real situations and collect feedbacks from the team leader as well . It directly
maximises the overall performance and effectiveness level of business and achieve desired
objectives within pre-determined time period as well. While managers do not delegate power to
subordinates because of fear of misuse this affects confidence level of team mates and overall
performance gets affected in negative way.
Strategic vision: The entrepreneurs such as Bill gates and Mark Zuckerberg has clear
vision for its business on the basis of which all actions and decisions are taken. It requires
maximum support from the customers which can be possible through providing them quality
products and services. Adopting innovative technologies by entrepreneurs to influences buying
behaviour of people help company in achieving huge customer strength. While managers do not
have long term, vision. They work for short term objectives and avoid risk. This does not make
their strategies for long run.
Critical thinking: The entrepreneurs such as Bill gates and Mark Zuckerberg are having
critical thinking skills which drives their business ahead than their rivals. Thinking something
new which can easily influence the buying behaviour of people towards products and services
support business to expand more in competitive market within shorter period of time (Parker,
2018). As compared to these entrepreneurs managers are not critical thinkers, so they do not
have idea how to perform operations. They do not perform deep analyse because of lack of
knowledge about subject. This affects performance of association.
Traits are described as below:
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 Both entrepreneurs are more energetic to launching their business idea. This can be done
with proper market analysis and knowledge about changes which are taking place in
business environment.
 passionate towards their work which lead them to achieve success and growth in their
personal as well as professional career.
 They both are risk taker which further help them in grabbing an ample market
opportunities which in results their company achieve maximum profits.
 Both entrepreneurs are more confident on their skills and knowledge which assist them to
work hard and perform in an effective and efficient manner. This will help in achieving
continuing growth in their mission and vision.
 Having new and innovative ideas than their rivals drives both entrepreneurs to attain
strong identity at market place which can be easily recognised by every people.
Difference in traits, skills and characteristics of entrepreneurs as comparison to business
managers:
 An entrepreneur has always focuses on implementing new and innovative ideas into their
business operations whereas business managers are much concern about the investment
first which is required for such implementation as it affects the profitability of company.
 An entrepreneur is having risk-taking ability in order to support business to achieve
competitive advantage whereas business managers afraid of taking risk due to having fear
of losing its competitiveness among their rivals.
 An entrepreneurs are rely on their own efforts and vision on the basis of which further
activities are done whereas business managers are rely on the efforts of their employees
to achieve growth.
 In case of error managers scold team mates, while these entrepreneurs motivates and keep
it as learnings. This helps to make good and familiar relations with subordinates.
 Bill gates and Mark Zuckerberg have different mindset, so they think differently. While
at the same time managers perform operations according to set benchmarks and
stanadards.
P6: Identify various aspects of entrepreneurial personality
There are different elements which represents a successful entrepreneur such as bring
innovative, risk taking, versatile etc. This makes their personality different as compared with
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other business managers as an entrepreneurs are every ready to take challenges and accept
market changes so as to help its business to achieve competitive advantage. In modern scenario,
changes are taking place more frequently which requires to make an effective policies that will
bring significant result to company. To cope up with the difficulties while accepting changes, an
effective qualities must required to have which is mostly present in an entrepreneur as compared
to other business managers who direct employees to follow same plans and policies frames by
them earlier without thinking of new.
Big Five Trait model makes easy to understand the skills and knowledge that the
entrepreneurs must have as it consists of five trait model which are briefly described as below:
(Source: OCEAN,2018)
Openness to experience: This is the first trait model of Big Five Framework which
communicates that an entrepreneur must be innovative and creative thinking so as to deal with
the changes coming in market and accept it in favourable manner. Entrepreneur is required to be
more curious, creative, imaginative and innovative so as to analyse the unfulfilled needs and
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Illustration 2: OCEAN

requirements of its customers so that products and services are introduced into market
accordingly which gives them an opportunity to become a market leader.
Conscientiousness: It is the second factor which indicates that an entrepreneur must have
a personality of achievement oriented and persistent to attain goals. These personality traits assist
entrepreneur or owner of business to make an effective and distinct policies and strategies after
analysing the market environment to be assured of success and growth (Zahra, Wright and
Abdelgawad, 2014).
Extraversion: This is the factor which assist entrepreneur to communicate mission,
vision and objectives to all interested parties to business such as clients, sellers, venture
capitalists etc. It brings their trust and loyalty towards business as well as received maximum
support to achieve within pre-determined time period.
Agreeableness: It is the personality trait which indicates that the entrepreneurs must be
trustable and honourable in nature in order to gain confidence from their employees. It makes
easy for them to cooperate with the employees and giving them proper direction to perform
allotted work in desired manner with best efforts.
Emotional stability: It is the last personality trait which indicates that the entrepreneurs
must be emotionally stable and resilient even during most stressful situations.
With the help of this model, it is clear that there is positive impact on motivation and
personality of entrepreneur which is important for getting success with new idea. When
entrepreneur is able to convey its ideas to society, then it is easy to raise funds and market new
product or service in market. Hence with this model, it is clear that there is important role of
motivation and getting positive mindset.
Apart from this, there are other factors as well which can make huge impact on an
individual's personality and way of thinking related with execution of business functions. Such
factors includes cultural background, lifestyles and upbringing which makes huge impact on the
thinking style of person and his personal skills.
TASK 4
P7: Background and experience that can foster or hinder entrepreneurship
It is not easy for entrepreneurs to achieve success unless they have specific skills and
traits such as confidence, risk-taking skills, innovative thinking etc. There are lots of obstacles
came in the path of success which may affect an individual that foster an hinder an entrepreneur.
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The individuals if can overcome from such obstacles with their in-built and developed skills
makes them a good and success entrepreneur. It is believed that successful entrepreneur are born
with quality and traits that support them to move forward. But along with this, skills can be
developed as well through engaging in training, education activities and also learn from past
experiences. Occurring mistakes in early time reduces the possibilities of occurrence of same
mistakes in future thus it encourage an entrepreneur to learn something in each activity they
performed from earlier period of time.
Bill gates and Mark Zuckerberg are the two known successful businessmen and strong
personalities who faced lots of struggles but overcome with the help of developed skills and
learning from past experiences. It brings motivation among them to work hard and more focused
towards their future goals.
Bill Gates is a founder of Microsoft Corporation which is world's largest software
company that changes the way of operating computers whereas Mark Zuckerberg is a founder
and CEO of Facebook which is world's famous social media network (Kazanjian, Drazin and
Glynn, 2017).
From the above two cases, it can be analysed that there are certain characteristic that are
in-build and also developed through practising which drives them to achieve success in their life.
Some factors are briefly discussed as under:
Relatives and family: relatives and family are important component which assist in
achieving success for entrepreneurs because they are the people behind which individual resides.
In case of Bill Gates, his parents motivates him to attain goals and objectives, hence in this case
he is able to shine in industry apart from number of failure while struggling to launch Microsoft
software.
Life style: Lifestyle is also essential in motivation and achieving success. In case of
Marks Zuckerberg who belongs to middle class family faced issues in raising funds. Hence in
this case goals and objectives might gets affected but he gives his best to deal deal with it. Hence
with hard working and limited resources Bills Gates and Marks Zuckerberg are able to
successfully launching their business.
This plays most effective role in influencing the mind set of people. Bill gates and Mark
Zuckerberg belongs from a middle class family and faced various kind of issues and conflicts in
their life, they put various efforts for attaining their desired goals and objectives to become most
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popular across the globe. They learn various things from their past life which gives strength to
struggling for accomplishing easy and comfortable life.
CONCLUSION
As per above discussion it is clear that small businesses and start-ups play a big role in
economic growth of a country. Different type of entrepreneurial ventures operates and get
affected by their typologies. It is analysed that small and micro businesses play a big role in
economic growth of a nation by provide employment opportunities to local people and by offer
featured products to individuals. In order to become a successful entrepreneur, specific skills are
there which should be there in an individual. Personality traits of entrepreneur largely affect their
motivation and motivation which impact on process of entrepreneurship. Overall various factors
are there that hinder or foster the process of entrepreneurship such as national culture, education,
past experience and background of an entrepreneur.
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REFERENCES
Books and Journals
Online
The importance of small businesses in the UK economy. 2018. [Online]. Available
through:<http://smallbusiness.co.uk/the-importance-of-small-businesses-in-the-uk-
economy-2492626/ >.
Brexit’s impact on small businesses. 2018. [Online]. Available
through:<https://theconversation.com/brexits-impact-on-small-businesses-the-experts-
may-be-spot-on-after-all-90561>.
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