Entrepreneurial Ventures and their Impact on the Economy

Unit 9
Entrepreneurship and Small
Business
Contents
INTRODUCTION...........................................................................................................................3
SECTION 1.....................................................................................................................................3
P1. Different types of entrepreneurial ventures and how they relate to typology.......................3
P2. Similarities and differences between entrepreneurial ventures.............................................4
P3 Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on the economy................................................................................................................5
P4. Explain the importance of small businesses and business start-ups to the growth of the
social economy............................................................................................................................6
SECTION 2.....................................................................................................................................7
P5. Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers............................................................................................7
P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mind-set.................................................................................................................................8
P7 Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship..........................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneurship can be defined as that activity which can help in setting up a new venture
or business. Person who are engaged in opening up new enterprise are known as entrepreneurs.
These people are also involving in taking financial risk in order to grow. Present report will lay
emphasis on various type of entrepreneurial venture. It will also explain typology of those
entrepreneurial ventures. Study will also lay focus on differences and similarities between the
entrepreneurial ventures. It will also show the impact of small medium and micro enterprise on
United Kingdom economy. Assignment will also lay emphasis on the characteristics, traits and
skills of successful entrepreneurs which differentiate them from business managers.
SECTION 1
P1. Different types of entrepreneurial ventures and how they
relate to typology.
Define and explain entrepreneurial venture + example
An entrepreneurial venture is something which is being started by the new entrepreneurs. In this
they put up a lot of investment and innovation in these aspects. It helps in bringing out various
opportunities to people. In the entrepreneurial ventures various creative and innovative aspects
have also been used. This can help firm in growing. Such entrepreneurs ventures transfers high
rate of return with an equal high level of uncertainty.
Types of entrepreneurships
There are various types of entrepreneurial ventures which has laid impact on the growth of UK
economy. These are as follows:
Social ventures- These firms are solely established for the purpose of doing charity. Making
profit is not their sole aim. These types of enterprises are mainly linked to large enterprises. Like
for example NHS and Oxfam that are engaged in enhancing the patient’s outcome They are the
only sectors which are growing faster than their competitors. these firms generally have
increased annual revenues by more than the industry average over a sustained period. They
related to small and medium size organizations.

Scalable enterprise- a scalable company is one that can maintain or improve profit margins
while sales volume increases. ( in thousands )micro businesses has been opened and they have
generated a revenue about 808 billion. They have also created employment about 8802 (in
thousands) For example grocery store, beauty salon and many more. These types of
organizations is being set up so that they can earn up to a significant amount of profit. They are
mainly medium size enterprises. This type of organization only run when their founders are
skilled trained and efficient.
Small enterprises- These are those ventures where about 10-49 employees are been appointed
and recruited. In year 2018 these enterprises have 210 businesses (in thousands). They have
created 4083 (in thousands) employment and a revenue of around 590 billion. These enterprises
have shown an immense amount of growth. They have generated employment around 3,399 (in
billions) in the year 2018. Also, they have created revenue around 595 billion. In small enterprise
the investment which is done by organizations is very little in comparison to large enterprises.
These types of firms is those which find themselves really hard to survive. They cut off cost and
lay off employees. They also tighten profit. They are basically small and micro size enterprises.
Large enterprises: In this type of business the number of employees are above 250. These types
of businesses require large amount of investment. It has been analysed that in year 2018 there
have been 8000 large businesses which has generated revenue around 1868 billion. Like for
example NHS. Large enterprises can be funded by government. In large enterprises the
companies can be even private or public. These types of organizations primary investment are
really high. They want to generate a huge amount of profit. They have mainly related to gain
high capital growth. These are mainly large enterprises which can grow at a faster pace.
Typology of entrepreneurship

P2. Similarities and differences between entrepreneurial ventures
Small Business
Venture
Social
Entrepreneurial
venture
Large company
entrepreneurial
venture
These businesses need
a new idea to enter the
market so that they
can gain competitive
advantage.
These type of
ventures are engage in
providing service and
social care to people
rather than making
profit.
These organizations
have to face market
barriers to enter. They
have to follow all the
rules and regulations
which are given by
government.
In this the
organizations are also
engaging in taking
bank loan and bank
overdraft.
Social enterprises are
basically funded by
angel investors,
wealthy institutions.
They are even funded
by government.
Large enterprises are
majorly funded by
government. They can
also be funded by
angel investment
The technological
investment in this
type of enterprise can
be moderate
The technology
investment in these
sectors ranges from
moderate to high.
In this technological
investment is high.
Similarities between entrepreneurial ventures.
Small, social and large organizations all these companies are involve in bringing out the new and
innovative products. These sectors are engaged in providing employment opportunities to people
and enhancing their standard of living. Also these type of ventures are engage in following