Entrepreneurship and Small Businesses

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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