Entrepreneurship and Small Businesses

This report discusses different ventures of entrepreneurship in relation to typologies, the statistics of small business in the UK, the importance of small business in the growth of the economy, and the characteristics of successful entrepreneurs. It also explores the reflection of personality and background on entrepreneurship.

ENTREPRENEURSHIP
AND SMALL
BUSINESSES

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Different types of entrepreneurial ventures and their relation with typologies.....................1
P2 Similarities and dissimilarities in types of ventures..............................................................3
LO 2.................................................................................................................................................5
P3 statistics related to small business which impact the economy.............................................5
P4 Importance of business start ups and also small business to the growth of the social
economy......................................................................................................................................6
LO 3.................................................................................................................................................7
P5 Different characteristics and skills of entrepreneurs who are successful, which differentiate
from others..................................................................................................................................7
P6 Entrepreneurial mindset and motivation reflected by entrepreneurial personality. ..............9
LO 4...............................................................................................................................................10
P7 Background can foster as well hinder entrepreneurship......................................................10
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneurship refers to starting business with unique idea in market to generate profit
for long run. According modern definition entrepreneurship refers to transforming, solving
problems for social changes, creation of innovative ideas for life-changing solutions (Fotopoulos
and Storey, 2019). Small businesses are micro and medium scale business which requires less
capital and financial resources to operate its business activities. Small business is significant in
the growth of economy as it provides the employment and preserves cultural handicraft and arts
of the society. In this report the study will discuss different ventures of entrepreneurship in
relation to typologies. Discussion will be based on the similarities and dissimilarities in the
entrepreneurial ventures. Further the study will discuss the statistics of small business in U.K.
through which it enables to know the how much the small business contributes in the economy.
The reports will include importance of small business in the growth of economy. The study will
include traits, skills and characteristics of successful entrepreneurs. Further the study will discuss
the reflection of personality of the entrepreneurs that motivated to become successful business
rivals for others. Last but not least the study will discuss the background and life experiences that
hinders to become entrepreneurs.
LO 1
P1 Different types of entrepreneurial ventures and their relation with typologies.
PUBLIC VENTURES: Public entrepreneurial ventures are owned and governed mainly
for the welfare of the public. These venture shares more than 51% of ownership are in the hands
of government. It is a type of nonprofit organization and the company rarely exit from the
market. Public sector follows more legal rules and regulations that are formulated for the society
benefits. The purpose of these public ventures are to work for the benefit of the society,
facilitating them to increase their standard of living, etc. for example Prudential public limited
(Gillespie, Privitera and Gaspero, 2019).
PRIVATE VENTURES: Private ventures are privately owned entrepreneurs
government or others sectors are not involved in it. Private venture forms legal rules and
regulations for its own organizational development. In private ventures there are no rule for
exiting the market. The purpose private ventures mainly focus for the profit maximization to
fulfill their personal and family motive and develop the better organizational structure to increase
their competitive capabilities in the market. For example Pentland Group.
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SOCIAL: In this type of typology the business focuses on the fulfillment of the social
ethics towards the employee and following flexible environment in the organization and main
purpose is to solve the problem related to the maintenance of financial sustainability. These type
typology is related to public ventures (Jones and Matlay, 2019).
TYPOLOGIES
HIGH GROWTH VENTURE: High growth ventures focuses more on the innovation of
the product which and tries to on the basis of innovative product provided in the market which
encourages the company to grow it business (Hamilton, Papageorge and Pande, 2019). It mainly
innovates in the field of technology and entrepreneurial orientation are more with the
management in the strategic style. These type of ventures exit the market by selling its company
to other party or merge its business with other corporation or go for initial public offer. The
purpose of high growth business is gain more profit with the its creativity in the innovative
product. For example Sainsbury company. This typology can be related to public and private
sector both.
SURVIVAL VENTURES: These type of ventures mainly focuses on the how to
survive their business in the market. As the business is not registered and it only fulfill the
personal financial requirement which can be able to cover the cost of the business. The annual
growth in survival venture are normal and management sales whatever has been produced by the
company. The business mainly face more competition and price based in the undifferentiated
market. When the company needs to exit the market it directly shut down its business. The
purpose of survival venture is to fulfill the financial requirement that arises in the business on the
daily basis. For example any catering company (Hmieleski and Sheppard, 2019). This can also
be related to public and private enterprises.
MIDDLE GROWTH VENTURE: These type of business ventures are workable in
nature and maintain the sustainable growth of the business the venture frequently releases its new
product in market. This type of typology management focuses on incremental strategic growth of
the company and it mainly less invest in the technological area. The investment in the company
are more and repetitive in nature. These type of ventures exit the market with the help of selling
its company party, merge its business with other corporation, transfer its business, etc. The
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purpose of middle growth business is to launch more product and get funds for investment in the
company. For example, ALDI company. It can also be related to private and public sector.
LIFESTYLE: This type of typology becomes consistent and aims to be at the sustaining
on particular level of income. This business has less scalability that is the company is less
innovative ideas in production of goods and services. This typology is related to survival
ventures (Huda and et.al., 2019).
SCALABLE: These type of typology mainly focuses on producing innovative idea and
searches for the business model which help the organization for increasing the growth and profit
of the company. This type of typology is related to high growth and middle growth venture.
P2 Similarities and dissimilarities in types of entrepreneurial ventures
Different types of entrepreneurial venture are compared to know the similarity and
dissimilarities in public, private, survival, middle growth and high growth venture.
DISSIMILARITIES
BASIS PUBLIC PRIVATE Social
MOTIVE Public welfare is
main motive.
Motive is to earn
more profit and
development of
organization.
Main motive is to provide
services for public Welfare
ANNUAL
GROWTH
The growth in
public venture are
not consistent it is
at average level of
annual growth.
The private firm
annual growth
depends upon their
sales. Annual
growth is more
than public
ventures.
The annual growth of social
ventures is normal. The
venture tries to fulfill the
requirement of funds.
MANAGEM
ENT FOCUS
The focus of
management is to
manufacture the
product on
The main focus
management in
private venture is
to maximization of
Management focus depends
upon the day to day working
operations of the business and
any how survive in the market
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welfare of the
society.
profit to fulfill the
personal needs of
business owner.
and selling whatever the
venture produces.
EXIT
APPROACH
Public company
rarely exit from
the market (Lin
and et.al., 2019).
Private ventures
exit market by shut
down.
In social firms shut downs
directly the business due to its
less stability in the market.
REWARD Reward in public
venture are given
to the society as
the society people
are getting benefits
and able to
increase their
standard of living.
Reward by the
private ventures
are to business
owners or to
stakeholders of the
company.
Reward to the social ventures
emphasis on weekly basis to
the business owner the reward
are less in social venture.
SIMILARITIES
INNOVATION: Entrepreneurs enter in the market because of their unique and innovative ideas
and ability to stand in the market facing rival’s companies.
RISK FACTOR: The risk factor in starting any entrepreneurial venture is similar because the
entrepreneur is not known that the product or services that is introduced in market will be
successful or not.
SMALL BUSINESSES: Entrepreneurial venture establishes in the form of small business in
starting. when the business becomes successful it converts in large business.
LO 2
P3 statistics related to small business which impact the economy.
Small business impact the economy of U.K. in many ways which are described with the
help of statistic data as given below:
TURNOVER: The percentage of small scale and medium scale organization in UK is
99.9% which is approx. 5.7 million business at starting of year 2018. which impacted the
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economy more to operate and dependent on the small scale business. The turnover generated by
the small business are around euro 2.1 trillion which is approximately 52 % of the overall
business of private sector. As the turnover increases in the economy it will make the economy to
grow in the global market (Lin and et.al., 2019). When the turnover of the economy increases it
also increase the GDP of the economy which makes the good impression of the economy for the
further trade and services with other countries. And helps to make trade relationship for export
and import with other economy.
Source: Average profit, 2019.
REDUCE UNEMPLOYMENT: As providing employment is a measure aspect for the
economy to grow. The generation of employment is approx. 16.3 million which includes 60 %
from the private sector. It impacted the economy to reduce the employment rate in the economy
and it will help to increases the per person income in the economy. Which will increase the
ability of person to expend more on the good and services in the economy (Rahim And et.al.,
2019).
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Illustration 1: turnover

CROWDFUNDING: The rate of survival of small scale industries for finance through
crowdfunding are 79% according to the state of 2017. Use of crowdfunding by small scale
industries is an impressive aspect for the economy. Less than 45% of the business lasts in the
U.K. In last five years. Which impacted the economy for the proper circulation of fund in
economy.
LIVING STANDARD: small-business economy had larger proportion in the economy
of U.K. Which leads the economy to create the base for the growth and development. As when
the more people are employed and are earning money which to impact the economy increase the
standard of living of people. When the living standard of the people increase it change the
lifestyle of the people and make them more educated towards the product and services that has
been provided by the small scale industries (Roberts, Murray and Kim, 2019).
P4 Importance of business start-ups and also small business to the growth of the social economy.
The meaning of social economy is the relationship which is in between the economics
and the social behavior. It is all about how a social norms effect consumer behavior. Small
business and the startups plays a major role in social economy development and which are listed
below:
Employment generation
Startups and small business helps the society in which they are doing the business by
helping the society by generating employment in the society. Generating jobs will lead to growth
in the social economy. For example if any social work is done by the small businesses in the
form of making garden then the business will requires workers for it and this will ultimately
generate employment (Saebi, Foss, and Linder, 2019).
Innovation
Innovation and technology will be introduced by the startups which will bring new ideas
to the society and new ideas will encourage people to do things differently. New ways of doing
things will reduce the time in doing things and will also save the cost of doing things. Innovation
will create more opportunity for the employees as there will be great chances for the employee to
learn new technology which will hone the skills of the employees. Innovation will make the
start-up more compatible from the others. This will contribute to the social economy.
Diversity
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Start-ups will bring diversity in the work which can be in the form of different way of
doing work. Flexibility in timings which may be doing work from home, doing work at suitable
time. If there is diversity in workforce, then it can capture a large number of market which will
contribute the social economy in the form of generating more and more revenue.(Urbano,
Aparicio and Audretsch, 2019).
Improvement in the local areas
There will be improvement in the local areas where the start-ups are operating their
business. The local areas can be improved by various small activities like providing dust bins for
the society. It can also include various health improvement activities like run for fun, run for
heath, etc. This will help in growing the social economy as more and more development will
result in growth of the society (Venkataraman, 2019).
LO 3
P5 Different characteristics and skills of entrepreneurs who are successful, which differentiate
from others
David and Simon Reuben and Philip Green they are the two prominent and agile entrepreneurs.
These entrepreneurs are having alacrity in their efforts. They are successful entrepreneurs and are
having different approaches which makes them stand out of the league if compared with other
entrepreneurs.
The different characteristics and skills of David and Simon Reuben and Philip Green are as
follows:
Characteristic of David and Simon
Passionate towards work
The both entrepreneurs are having a great passion for the work which make them motivated for
the work always. Philip Green was also having a passion for retail business in clothes. Passion
for the work convert the work to a most lovable thing on earth, which a man can do in his entire
life without regretting it. The other managers lacks in passion for work and that is the reason they
are working for the others. The other managers lacks in passion for work and that is the reason
they are working for the others.
Flexible working
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Flexibility means the willingness in changing which is not appropriate and it without laziness.
David and Simon have flexibility in their work and they always use to take the first mover
advantage and make the changes accordingly in the business.
Skills of David and Simon
Money managing skill
Managing money is a predominant thing which a entrepreneur must know and it is the main
characteristic and skill of David and Simon because both of them started from zero. This skill is
all about arrangement of funds for both long term and short term. Both the entrepreneurs were
successful in generating higher return then cost of return. Many other managers lacks in this
skill and fails make higher return.
Risk taking skill
Taking risk is the main thing in business, in business language “risk is reward”. Simon and
David without bothering whether the customers will invest in the business or not, Whether there
businesses will run in a long run or not, In the business the brothers will be making enough
money or not which is sufficient for the survival of the business, How the both brothers will be
making returns higher then cost of the return, etc. all these are the risk which are taken by both of
the brothers despite of both of them having different businesses. So the manager must take risk
without playing safe and calculating the risk is also equally important which the other managers
lacks in.
Characteristic of Philip green
Emotional intelligence
Philip Green was having a Great emotional intelligence, in which he used not to get angry at bad
situation, and not too much happy in good situation. This is the thing which the one having the
plan for start-up should learn from Philip Green.
Skill of Philip Green
Technical skill
Philip Green was having a great technical skills and strong knowledge of the relevant software.
Philip Green used to think in advance of the time which make him different from other
managers.
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P6 Entrepreneurial mind set and motivation reflected by entrepreneurial personality.
The reflection of entrepreneurial mindset of the two top UK entrepreneur David and Simon and
Philips Green can be explained by OCEAN model. According to this model There are many
people we meet which may be thousands or even ten thousand but not two of them are having
exactly the same. And this model is all about explaining what a personality is all about. The
OCEAN model include five factors in it and are as follows:
Openness to Experience
This includes the willingness of trying new things and thinking out of the box. An
individual having openness in everything have love for learning and engage oneself in making a
creative career which is seen in Philips and David and Simon. Both of them have sound
imagination power which can be seen in the decision they make in the business. Daringness is
also a part of openness to experience which can be seen in both of the entrepreneurs which is
allowing them to take risk. This helped them to keep them motivated and involve themselves
with full dedication towards the work.
Conscientiousness
This includes self-disciple, control, Hard work, Energy, etc. and all these are seen in
Philip and David and Simon. Both of the entrepreneurs were having all these qualities which
helped them to create an empire. Without the above qualities one can not create an empire like
that which is being created by them. Simon worked hard in the carpet business, and learned each
and every aspect of it, after working over there for four years. People or the normal person
generally procrastinate and which results in delay of work. This helped the entrepreneurs to built
a strong mindset which can never let them down.
Extroversion
It involves form where the one derives energy from some derives it from introvert
environment and some derives it from extrovert environment. Here the Extroversion is
considered so The successful people such as Philip and David and Simon were extrovert and due
to this they got the opportunity to interact more and more people making them more and more
socially aware which helped them in building more and more customers. Due which the
entrepreneurs were able to work with fully motivation and strong mindset.
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Agreeableness
According to Agreeableness how well the entrepreneurs are getting along with the
customers. It involves orientation with customers. Philips and David and Simon were having the
sensitivity, Politeness, Helpfulness, Patience towards the customers and due to which they were
able to retain the customers and built trust in them. The one with no Agreeableness will not be
having the quality to entertain the customers and also retain the customers in the business. This
helped they entrepreneurs to be strong from the mind and keep working with full motivation.
Neuroticism
It is all about one's emotional stability and also about one's general temper. According to
Neuroticism one should not be having extreme fear, jealousy, Anxiety, Self-criticism, in-
sociability, etc. in one's character. The one having these clumsy characteristics can not grow
much in their life. Here the two great personalities are not having such demerits and are having
stable mind. Philips without fearing with the retail clothes competition entered into the clothes
market taking it as an opportunity. If one control the behavior of him or her can achieve the goals
with strong mindset and with absolute motivation.
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LO 4
P7 Background can foster as well hinder entrepreneurship
The background of the entrepreneurs also play a major role in the growth of the entrepreneur
which can be seen in the life of David and Simon and also in the life of Philip Green.
David and Simon
If we see the background of David and Simon, they were born in India and they migrated to UK
in search of job. They worked very hard day and night. The family background was not so well
of both of the brothers and they both were belonging to a poor family. They both were self made
Billionaires. They got no support from the family and all of thing they achieved was only due to
the hard work they did by learning all the required skill while working in the company. Both of
them also faced failure in life but they did not got demotivated, There was controversy which
was surrounding their business in Russia in which the brothers did partnership with Mafia of
Russia which resulted in a legal notice to the business of both brothers. The family of both of the
brothers lived in British India.
They know about culture of different counties, that has helped the person in dealing with
different culture people easily that has build relationship skill of him and he always used that
skill people. Simon is a younger brother of David and is three year younger than David. They
were having a poor father who used to work hard and make the living of the family. Due to
having a poor father David and Simon have to work for the family as they were having no other
option and which make them learn the business inside. And all these learning has been applied
by him while setting his own business and he has gained success. The one who have seen
poverty can understand the poverty, what poverty is. This foster the brothers to enhance the
business.
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CONCLUSION
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From the above report it can be concluded that the entrepreneurs are the persons who
helps the society to increase their standard of living by introducing product and services which
causes life-changing solution. Small business are the key elements in the growth of the economy
with the help of small business the employment rate in the economy increases which due to
which poverty in economy decreases. Small business causes large proportion in GDP growth of
the economy. Small business is significant in the preservation of the traditional culture of the
society. Entrepreneurs had inbuilt traits and skills which helps them to understand the market and
ability to coordinate with the dynamic environment which make them successful entrepreneurs.
Some of the traits and skills are passion towards the work which is must to be present in the
entrepreneur to become successful. Communication skills are required to sale the product in such
a way the general public can easily get attracted towards the product and services. The study also
puts lights on the life changes that happened in the life of the entrepreneur which foster them to
become more successful in the business with innovation and competitive technique in the
business.
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REFERENCES
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ONLINE
STATISTICS OF SMALL BUSINESS. 2019. [online]. Available
through<https://www.fsb.org.uk/media-centre/small-business-statistics>
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