Entrepreneurship: Types of Ventures, Impact on Economy, and Characteristics of Successful Entrepreneurs

This document discusses different types of entrepreneurial ventures, their relation to the typology of entrepreneurship, and the similarities and differences between them. It also explores the impact of micro and small businesses on the economy, as well as the importance of small businesses and start-ups to the growth of the social economy. Additionally, it examines the characteristic traits and skills of successful entrepreneurs that differentiate them from other business managers.

Entrepreneurship and
small business
management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Examination of different types of entrepreneurial ventures and explain how they relate to
the typology of entrepreneurship............................................................................................3
P2 Exploration of the similarities and differences between entrepreneurial ventures...........4
TASK 2............................................................................................................................................6
P3 Interpretation and assessment relevant data and statistics to illustrate how micro and small
business impact on the economy............................................................................................6
P4 Explanation of the importance of small businesses and business starts-ups to the growth of
social economy.......................................................................................................................9
TASK 3..........................................................................................................................................10
P5 Determination of the characteristic traits and skills of successful entrepreneurs that
differentiate them from other business managers.................................................................10
P6 Assessment of aspects of the entrepreneurial aspect’s personality reflect entrepreneurial
motivation and mindset........................................................................................................12
TASK 4..........................................................................................................................................13
P7 Examination of ways in which background and experience can hinder or foster
entrepreneurship...................................................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
An individual can be called an entrepreneur work when they come up with a new innovative
idea for a business and also develop the plan to conduct the business along with the risk involved
in it (Barbosa, Castañeda-Ayarza and Ferreira, 2020). They usually perform such businesses in
order to earn profit out of it. Entrepreneurship starts when the idea is generated in the mind of an
entrepreneur. This is followed with converting the idea into a business plan. In the following
report a description of various types of entrepreneurial ideas and different venture along with
their typology has been discussed. There is also relevant data regarding micro businesses and
their impact on economy discussed. The report consists discussions on the background,
characteristic, skills and traits of an individual affecting the decision making of an entrepreneur
along with leadership style used by them while running the business.
TASK 1
P1 Examination of different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship
There are a number of different type of ventures through which entrepreneur bring their
businesses into the market. These usually depend upon size, objective, structure of the business.
Below mentioned are various different types of entrepreneurship ventures:
Small business entrepreneurship ventures: these are those type of enterprises which bring
in small new innovations through the services and products which they provide in the market.
The major motive of these business is to make sure that they are running the business and finding
customers which will help them in generating revenue (Lingo and Elmes, 2019). Very less
capital is required to start such businesses. The business is usually done by the family itself
including some friends and relatives. These businesses hire smart and skilled employees who can
effectively carry on their activities. There are a number of examples of such business which can
be plumbers, carpenters, advisors and so on. The scope for small business enterprises is great in
regional and local levels.
Scalable start up entrepreneurship: Scalable start-up businesses are those businesses to
focus on bringing in a number of new innovation and ideas in the world. It is required by an
entrepreneur to have great ideas which have never thought of been earlier launched by any other
company. They require huge capital to start this business due to which the amount of risk

involved with this business is also high. It is required by these businesses to make sure that
they’re hiring smart and skilled employees who can effectively carry on all the activities
regarding new innovationis in the business. Facebook, YouTube for example of some scalable
start-up enterprises. The start-ups are supported by government and there are a number of
venture capitalist ready to invest in such firms which generates great scope for such
entrepreneurial ventures.
Large company entrepreneurship: large company entrepreneurship is been an already
existing company brings in a new product or service in the market which is related to some of the
products and services which they’re already delivering to the market. The major innovation
brought by the company is in the already existing product in order to grab more market share
with the help of innovation. Their major aim is to work internationally and expand their business
into a number of countries so that they can do their profits and revenues. Examples of such
enterprises can be Apple, Microsoft, Windows and so on. Getting new opportunities for long
running large enterprises is necessary so that organisations can sustainably grow in the market
for a longer period of time.
Social start-up enterprises: Social entrepreneur ships are those businesses who aim at
resolving various different issues occurring in the society. They focus on making the world a
better place to live for people. They also focus on the enhancing the living style of people with
the help of a number of issues they solve. They can be profitable organisation. Or nonprofitable
or a mix of both organisations known as hybrid organisation. It is often seen that a number of
people already join these organisations in order to serve society. They do not need to focus on
human resource requirement as people voluntarily join such organisations. There are many
examples of such organisation running in domestic as well as international regions. World health
organisation is a social entrepreneurship. Social enterprises have great scope as they have
voluntary help and can be profitable, non-profitable or hybrid. There are not many restriction on
such organisations as they are working for the benefit of society.
P2 Exploration of the similarities and differences between entrepreneurial ventures
Basis
Small
entrepreneurship
Scalable
enterprises Large
entrepreneurship
Social
entrepreneur
ship business

Aims There are a
number of aims
of small
entrepreneurship
one of the major
aims of the
company is to
earn profits.
There are no
specific goals
developed for the
company. They
only aim is to
earn profits and
run their
businesses.
The objective of
this business is to
bring in new
innovations and
ideas in the
market. They
look towards
fulfilling and
identify needs of
customers with
their innovations.
The major aim of
these businesses
is to enhance the
brand name and
capture
international
markets.
Major objective
of these
businesses is
to bring a
change in
society.
Risk factor There is which is
attached to small
enterprises are
very low. The
reason of this is
that the financial
investment
required to start
this business is
less which makes
the risk attached
to the business is
also less
There is huge
finance required
in order to run
these businesses
due to which
there is “as to
such a business
also increases.
There is contrast
to these
businesses are
medium as the
products or
service which
they are selling
in the market is
usually an
innovation
regarding the
already existing
services provided
by them in the
There is no risk
attached to this
business is there
usually supported
by government
and they cannot
want to losses.

market.
Employee
strength
Such
organisations do
not employ more
than 50
employees at a
time.
The employees
which are
employed in such
type of
organisation
usually depends
on the structure
of the business.
There is no
predefined
number of
employees for
these businesses.
The employs in
such organisation
can be more than
hundred at a
time.
There are no pre-
fixed number of
employs in the
organisation.
People join to
serve this
organisation
voluntarily
according to their
wish and also
leave voluntarily.
Structure of
organisation
The structure of
the organisation
is not well
defined. It is
usually a sole
proprietorship or
partnership
business.
Partnership is
done with
family, friends or
non-people only
(Rashid and
Ejaz, 2019).
The structure of
these businesses
are usually
limited
partnership or
even
corporations.
They can opt for
any of the one
type of structure.
The structure of
these
organisations is
very complex in
nature. They can
be either private
or public
companies.
The structure of
this organisation
is usually trustee-
based
organisation.
This can be
private, public or
hybrid of both
private and
public
organisation.

TASK 2
P3 Interpretation and assessment relevant data and statistics to illustrate how micro and small
business impact on the economy
Every economy consist of micro, small, medium and large enterprises. Micro and small
business are contributing highly to development of an economy. These businesses helps an
economy to generate more gross domestic product along with bringing in a number of other
benefits for the economy and the market as a whole.
When considering the case of United Kingdom there are a number of businesses which
are small in size. These businesses are included in a number of different industries throughout
the economy. United Kingdom consist of a total of 4500,000 small and medium sized businesses
in the country in a number of different industries. The revenue which is generated by these kinds
of businesses in United Kingdom contribute highly to the gross domestic product of the country.
The employment opportunities provided by micro businesses in economy is 33%. There are 96%
of total businesses in the country which are micro businesses. Also 22% of the turnover for the
country is generated with the help of small and micro businesses.

With the help of the above graph which is regarding the share of different kind of
businesses in United Kingdom ‘s economy. This graph depicts the amount of employment,
turnover and businesses which is brought in economy of United Kingdom by various small,
medium and large businesses running throughout the country. All the businesses are divided into
three parts and those are compared. Small and medium enterprises are a large part of total
economy. Also 37% of turnover in the economy is brought in by small and micro enterprises.
Along with this 48% of employment in United Kingdom is brought in by these businesses. D
employment which is brought in by these industries is almost half of the employment provided in
the country as a whole. The business of small enterprises 99.3% which is very high when
compared to those of medium and large enterprises. The business of medium and large
enterprises almost negligible in United Kingdom when compared to that of the small and micro
businesses.

With the help of the above graph which is depicted regarding various type of business is done by
small and micro business in United Kingdom it can be analysed that there are a total of four
types of business (Solano and Rooks, 2019). These include exporter, non-exporter, innovator and
non-innovator. There are too many small and micro businesses which bring in a number of
innovations in the economy. The maximum kind of small and micro businesses or exporters.
There are only 13% of total non-exporters. On the other hand, there are almost one fourth of total
small and micro businesses who are innovators. Least number of them are non-innovators in the
economy of United Kingdom.
P4 Explanation of the importance of small businesses and business starts-ups to the growth of
social economy
Start-up organisations aim at providing new innovations in the market in order to fulfil all the
requirements of customers which were never met before. These requirements are those
requirements which were on identified or even customers were unaware of these demands. It is
necessary to make sure that the changing trends in the market are met by different start up to

bringing in a new product or service in market. Start up these days are coming give up with a
number of new ideas and innovations in order to capture huge market share and also earn lot of
profits through bringing in new innovation and taking rest with these innovations within a small
period of time. Start up business helps an economy in going through contributing towards
business taxes with the revenue they generate from their businesses. Start a business is also
require a lot of human force requirement. The employment opportunities are generated by them
in the region where they operate. They require both skilled, semiskilled and unskilled workers. In
this way they also help the economy to make sure that the population is employed (Knewtson
and Qi,2019) . The salaries which are paid to employees working in start-up businesses help
them to maintain a good living standard. They also provide training and development
programmes for their employees so that they can be skilled and experienced. In this way they
help individuals to develop various skills leading them to professional and personal growth.
A number of start-ups are engaged in providing various facilities to the society with the help of
corporate social responsibility. A number of social issues are looked upon by them including
environmental issues. This also helps businesses to create brand awareness and also increase
their brand value so that they can achieve all their goals and objectives. They help in
development of infrastructure in an economy along with which they also help the economy with
increasing their financial Holdings. Start-ups bring new innovation in economy bringing in
foreign exchange money with the help of export they make in the market.
TASK 3
P5 Determination of the characteristic traits and skills of successful entrepreneurs that
differentiate them from other business managers
There are a number of different characteristics, traits and skills required by an entrepreneur. It is
necessary to have this particular set of characteristics, skills and traits in order to make sure that
they are running the business successfully and also earning profit out of it. At the time of setting
up of a business there are a number of different procedures and formality which are required to
be fulfilled by entrepreneurs (Milogolov, Nikolai, and Vladimir Gromov,2020). They need to
have proper management skills so that they can run business himself and manage all the
resources in the business. Below mentioned are various personal characteristics required by an
entrepreneur:

 The capability to bring in new innovative ideas into business is required by an
entrepreneur.
 An entrepreneur must have risk taking capability so that they can effectively run a new
business.
 It is the duty of an entrepreneur to set goals, objective, vision and mission of business
which must be long-term as well as short-term.
 Entrepreneurs are required to be self-motivated and self-encouraged so that they can also
encourage the human resource which is working for the organisation.
 An entrepreneur requires to have top management skills so that they can manage finance,
operations, human resource and all other functions in the business.
A number of skill sets required by an entrepreneur which can be personally developed by them to
run a business are mentioned below:
 Communication skills are important for an entrepreneur or as there are a number of
people from whom we need to communicate. These may include all the stakeholders of
the organisation including employees, distributors, clients and so on. Zac Williams the
owner of Grand touch and communication skills were necessary for him as he had to
communicate with students in order to provide them support.
 Leadership skill is an important skill which is helping an entrepreneur to make sure that
all the employees in the organisation are directed towards the right path in order to
achieve all the goals and objectives of the business. Jeff Bezos used transformational
leadership to grow business of Amazon changing the style as per the changing
environment.
 Negotiation skills are also required by entrepreneurs so that they can effectively deal with
clients and suppliers of the organisation. Good negotiation skills will bring in bargaining
power for the entrepreneurs. Sir Richard Branson runs a number of companies under the
Virgin group. It is his daily business to deal with suppliers and consumers. His
negotiation skills have tremendously helped him in getting success.
 Another important skill required by this time management skills. It is really necessary to
make sure that all the goals and objectives of the organisation are met and required time.
Delay in supply of demand in the market may lead to losses for the organisation. Ms

Rana Harvey owner of Monster group had good management skills and she took care of
all the business functions herself.
P6 Assessment of aspects of the entrepreneurial aspect’s personality reflect entrepreneurial
motivation and mindset
It is required by an entrepreneur to be self-motivated and self-dedicated in order to set up a
new business. This becomes necessary in an entrepreneurship because along with self-motivation
it is also required by an entrepreneur to motivate all the employees who are working under him.
This also brings the capability to handle risk and changing environment while running a
business. Personality as well as characteristic of an individual on the plane will help them in
coming up with a new innovation as well as ideas in order to run a business effectively and fulfil
all the needs and requirements of the customer bringing in new innovations (Cascio, 2019).
There are a number of demand criteria is which are to be made by all these innovations brought
in by an individual. This will help them in attaining maximum customer satisfaction and also
sustaining in business environment for a longer period of time in the competitive market.
It is also required that an entrepreneur is having high risk taking ability because in order to
set up a new business risk is always attached with it. They also need to manage all the resources
in the organisation so that maximum output can be generated out of them. Along with this it is
the duty of an entrepreneur to set up goals, objectives, aims, mission as well as vision of an
entrepreneurship business. Including all this they create a proper strategy for the business
through which the business will be run and all the operations of the business will be managed.
There are proper abilities required to make strategies in the business. It is the duty of an
entrepreneur to make sure that they are critically analysing the market and looking for
opportunities present in the business environment. They need to make sure that all the
opportunities in the business environment are used by them in order to create more profits for
business. Motivation is the key to success. This enables an entrepreneur to run the business
successfully and also manage all the resources including human resources in organisation. It is
necessary that human resource of organisation or always kept motivated which is the duty of
entrepreneurs. They also need to have characteristic centers of a leader so that they can lead the
group and organisation. This will help an entrepreneur to successfully run a business and attain
all the objectives and goals of business in the stipulated time period.

TASK 4
P7 Examination of ways in which background and experience can hinder or foster
entrepreneurship.
It is often seen that experience and personal background of an entrepreneur which they
have went through their childhood have an important impact on the kind of business there and
along with the decisions they take in the business. The personal background can consist of
support from family as well as friends, motivation provided by them along with financial help
provided by them for the financial background of the family (Anwar and Ali Shah, 2020). It is
often seen when correct motivation and support is provided by the surroundings to an
entrepreneur, they are effectively setting up their business along with running profit. It is
necessary to have motivation so that they can take important official in business and also develop
self-confidence.
Financial background is majorly related to restricting capability of an individual. If an
individual is sound financially, they can take more risk in the business however on the other
hand when did not get proper support from their friends, peers and family they hesitate in taking
much risk in their business because they do not have lost bearing capacity due to weak financial
background.
On the other hand, when talking about personal experiences of an entrepreneur it is seen
that the way in which business is run by entrepreneurs are highly dependent on their personal
experiences. It is necessary that entrepreneurs have positive experience with their business and
also, they create such positive environment in the organisation. Personal experiences also helps
in entrepreneur to run the business for a longer period of time in the competitive environment.
The risk-taking capability for an entrepreneur can be developed by positive experience in past.
A number of real life examples can be taken such as the founder of virgin business group
Richard Branson who is also a philanthropist now he failed repeatedly but the upbringing and
knowledge he gained with the help of books like Nelson Mandela provided him an attitude to
never give up. Ms Ranaa Harvey is the owner of monster group who was self- motivated to
conduct business. She had an attitude to have full control over her business due to which all the
management in business was managed by herself.

CONCLUSION
With the help of the above report it can be concluded that it is necessary to bring innovation
in the business regularly in order to stay in the market for a longer period of time. Entrepreneur
is in an organisation are responsible for earning profits. There are a number of different types of
entrepreneurial ventures which helps an economy to grow. The report also concludes that there
are various characteristics, skills and traits required by an entrepreneur to run a business
successfully. The decision-making style and their effect on business due to the experience and
background of an entrepreneur plays an important role in an entrepreneurial venture. There are a
number of effects of background and experience of an entrepreneur which helps them in taking
various decisions in their business and also risk taking in business. All these factors are
concluded in the above report.

REFERENCES
Books and Journals
Anwar, M. and Ali Shah, S.Z., 2020. Managerial networking and business model innovation:
Empirical study of new ventures in an emerging economy. Journal of Small Business
& Entrepreneurship, 32(3), pp.265-286.
Cascio, W.F., 2019. Training trends: Macro, micro, and policy issues. Human Resource
Management Review, 29(2), pp.284-297.
Milogolov, Nikolai, and Vladimir Gromov. "The Guidelines for Expansion and Implementation
of Support Measures for the Business Amid the Pandemic in Terms of Reduction of
the Tax Burden on Labor (Insurance Payments) for Small and Midsized
Businesses." Monitoring of Russia's Economic Outlook. Trends and Challanges of
Socio-economic Development. Moscow. IEP 9 (2020): 11-15.
Knewtson, H. and Qi, H., 2019. Managing risk for sustainable microfinance. The Journal of Risk
Finance.
Solano, G. and Rooks, G., 2019. 16 When do businesses innovate in a developing
country?. Business and Development Studies: Issues and Perspectives, p.381.
Rashid, A.G. and Ejaz, L., 2019. Interest free micro credit loans: Pakistani female
entrepreneurs. Journal of Islamic Marketing.
Lingo, E.L. and Elmes, M.B., 2019. Institutional preservation work at a family business in crisis:
Micro-processes, emotions, and nonfamily members. Organization Studies, 40(6),
pp.887-916.
Barbosa, M., Castañeda-Ayarza, J.A. and Ferreira, D.H.L., 2020. Sustainable strategic
management (GES): Sustainability in small business. Journal of Cleaner
Production, p.120880.