Entrepreneurial Ventures: Types, Impact, Mindset, and Case Studies

This report examines the multifaceted world of entrepreneurship and small business management. It begins by defining entrepreneurship and differentiating various venture types, including high-growth, small business, and lifestyle ventures. The report explores the similarities and differences between these venture types, while also outlining the typology of entrepreneurship, such as serial, social, and female entrepreneurs. A significant portion of the report is dedicated to the importance of small and medium-sized enterprises (SMEs) within the UK economy, including their contributions to employment, revenue generation, and innovation across various sectors. The report also discusses the impact of Brexit on the business landscape, contrasting startups and small businesses, and highlighting the role of these entities in poverty reduction and infrastructure development. Finally, the report analyzes the entrepreneurial characteristics and skills, drawing examples from successful entrepreneurs like Jamshedji Tata and Richard Branson, focusing on aspects like the need for achievement and self-confidence.

Entrepreneurship and
Small Business
Management

23

INTRODUCTION
Entrepreneurship is a process of creating a new business or enterprise that involves taking
risks out of it in an intention of earning profit. Basically it is an act of investing resources in a
business venture to initiate a production activities by arranging inputs like as land, labour,
material and capital. A small and micro businesses are a set up of a business organization that
has turn over capital of not more than £3.26 million as well as including less than 50 employees
in it. This report will highlight the different range of entrepreneurial ventures and explain the key
differences and similarities in them. The report will also include the impact of small business on
the economy. The report also highlights the key aspects of entrepreneurial mindset as well as
study the various factors that foster the entrepreneurship.
LO 1
P1
An Entrepreneur is a person that invest his resources in a production of goods and
services and apply a creative idea for business in an intention to earn profit by setting up an small
organization.
Entrepreneurial ventures are the business start-ups that are the outcomes of the
initiative taken by the entrepreneurs in the form of investing their resources for accomplishing a
production system with a view to invent a new technique or style of business. It can be also said
that a Entrepreneurial venture is a calculated risks or efforts taken by a person in a n intention to
initiate a business(Kuratko, Hornsby and Hayton, 2015).
Types of Entrepreneur Ventures- High Growth Venture- High growth venture refers to a venture that is being set up by
gathering the working capital from several investors with an intend to earn higher profits
and achieve higher growth and expansion. For example- Anthemis Group in UK. Small business venture- Small business ventures are the business that focus on earning
average normal profits that is viable to survive the current business for never ending
period. The main objective of these ventures is long-term survival in the market with a
broader vision(Zacca, Dayan and Ahrens, 2015).

 Lifestyle Venture- Lifestyle venture is an organization that is planned and executed by
its founders with an intention to serve the society and communities. The objective of
these ventures is to sustain a limited level of income and not more than it.
Typology of Entrepreneurship- Serial Entrepreneur typology- A serial entrepreneur is a person that forms and comes up
with a new and innovative ideas for the business and the start ups. These entrepreneurs
are more interested in creative thinking and ideas for business to make it look different
from others. Social Entrepreneur typology- These entrepreneurs are concerned with the solution of
social problems through their business activities. The main objective of these
entrepreneurs is to ensure well being and provide benefits to the community and society
in an effective manner as well as earn the limited revenue. There are more similarities
between lifestyle entrepreneur and social entrepreneur(Audretsch, Heger and Veith,
2015).
 Female Entrepreneurs typology- In this typology the business and its activities are
initiated by woman entrepreneur in order to represent a sign of role model for the female
population in the society. Different home made products are bing sold in these type of
businesses.
P2
Similarities- The following are the similarities within High growth venture, small growth
venture and life style venture:
 The goal of all the ventures is to grow and expand their business and activities in the
market.
 The important focus of these ventures is customer satisfaction.
 All the ventures aims to set up a long term vison for their businesses.
 High growth venture, small growth venture and life style venture has to face risks from
external environment such as political, economic and other issues from the market in
common.

 The different ventures follows the same concept of creativity and innovation in their
business in order to look different from others in the market.
 The owners of all the ventures search better opportunities that can lead the growth of
their business in the market.
Differences- The following are the differences between High growth, Small Growth and
Lifestyle ventures of entrepreneurship-
High growth venture Small growth
venture
Lifestyle venture
Meaning A high growth venture is
an organization that
aims at earning higher
revenues and profits for
its activities. The
organization usually
look towards the
frequent revenues and
cash flows to be earned
by the
organization(Smallbone,
Welter and Ateljevic,
2014).
A small venture
refers to an
organization that
aims to earn profits
as well as look
towards the survival
of business in the
market for longer
duration.
A lifestyle
venture refers to
an organization
that prefers to
earn profits for
managing its
social objective
and needs of the
society.
Example Episode 1, M&S etc. Mom and pop stores Social triggers,
red cross etc.
Typology High growth ventures
mainly uses scalable
typologies of
entrepreneurship that
support its objective of
Male or Female
typologies can be
adopted by by small
growth ventures
which will enhance
Social Typology
is mostly suitable
for Lifestyle
Ventures as it
supports and

earning higher cash
inflows and acquiring
market share.
its sales revenue and
customer base
leading to the
growth of the
company(Toma,
Grigore and
Marinescu, 2014).
focusses mainly
on the social
needs as well as
contribution
towards society
and communities
for enhancing its
organization's
growth.
Size Big Small and medium Bigger than small
growth ventures.
Capital Requirement These ventures get funds
from investors, bank
loans etc.
Own savings and
investment, funds
from relatives and
friends etc.
Lifestyle ventures
get funds from
various trusts as
well as privater
companies and
multinational
corporations.
Entrepreneurial
Orientation
High Very low Low
Approach To Exit Selling of assets, Merger
or acquisition.
Wind up of
business.
Transfer of
ownership or shut
down.
LO 2
P3
Enterprises in country has been categoriesed into micro, small and medium on the basis of
employees' numbers, annual revenue and annual balance by UK government.

 Micro enterprises has been defined as such entities which have employees ranging from
0-9 and have an annual turnover of mot more than £2 million.
 Small enterprises are those business entities which possess an employee range of 10-49.
The annual turnover of such businesses shall not exceed £7 million and annual balance of
£5 million.
 Medium enterprises are such enterprises which has an em0ployee strenmght of 50-250
and whose annual revenue does not cross £40 million and balance £27 million annually.
These SMEs includes different kinds of business enterprises such as :
Partnership : Many small businesses are in the form of partnerships in which two or more
people come together to share the profits and loss of the business in equal porportion for
achieiving common objective. Characteristics are; unlimited liability, not a separate entity, not
required to disclose financial information (Usai and et.al., 2018).
Sole proprietorship : In this kind, an indivudal entrepreneur operates the business and is
characteised by no legal identity of business separet from ownere and unlimited liability of
entrepreneur.
Importance of SMEs in the country's economy is very crucial because these enterprises
provide technollogical innovation, employment, create healthy competitive environment and
aims of fulfilling society's needs and other businesses requirements.
Contribution of SMEs in UK economy:
SMEs have largely impacted production, service, distribution industries. As per the
reports and statistics of Britons, it was found out that number of SMEs is rising every year. In
2016, SMEs accounted for 5.5 million organsiations in private sector, which was higher by
97,000 against in year 2015 (Essential Facts You Should Know about SMEs in the UK, 2019).
These enterprises have provided employment to 6.3 million people which is 60% of all
employment in private sector of UK in the year 2018. Total revenue of SME accounted for £2.0
trillion which was 52% of all turnover in private sector. This is a huge contrivution to country's
GDP. As per the business statistcs of Parliamnet.uk, SMEs led by women contributes to around
£85 million to total economic output of SME.

IT sector : Start-ups have contributed signifcanlty to teh success of this sector and from the
reports of audit firm RSM, number of technology start-ups increased by 60% in the year 2016.
Manufacturing sector : This sector has contruibuted to the manufacturing industry of UK to a
total of 3 % in the year 2018.
Personal and household services' sector: SME have largely contributed to this industry and
accounted for 17 % to country's economy.
Illustration 1:Contribution of SMEs to different sectors of UK
(Source : Main industry sectors of small and medium enterprises (SME) in the United Kingdom
(UK) in 2018, 2019)

P4
Brexit is an abbreiviation which signifies split of Britain from European Union. The
possible threats pose by this event are trade relations with the neighbouring countries would be
affected, total income of country will be negatively affected by Brexit. Post breixt, the import-
export tariff rates with the EU will be higher which is major concern.
Difference bewteen small business and start-ups : Startups Empahises on rapid growth
and high-end revenue. They are often characterised for using technology in their products &
services, depending on raising lots of money from angel investors, venture capitalists and
crowdfunding platforms at each level of their expansion.
Whereas small business is a company which focues on consistent returns instead of quick
growth and expansion.
Micro business and startups in country will help in eradicating the poverty as it would
provide employment to people who will be able to afford basic amaneities of life. Startups will
faciliate the needed infrastcure in the country post the Brexit as these businesses are knwon for
using innovative technology through which more ehnacned and cost effcetive services will be
available to people of country. Deregulation from the end of EU, will help the priavte sector of
country to become more mature and effcicint which would help in creating a healthy competitive
environment withibn the nation (Raco and Moreira de Souza, 2018). Such a practise will assist in
making the economy stronger, meaning more revenues to the government. Through start-ups and
small businesses, the soical security in the country will enhacne becasue of the fact that these
SMEs provides vast employment opportunities to young people through which they can secure
their social life.
LO 3
P5
In the current study, Jamshedji Tata and Richard Branson are the entrepreneurs being
considered for their Skills and Characteristics that are necessary for an successful entrepreneur.
Characteristics of Jamshedji Tata and Richard Branson are as follows-
Need for Achievement- This need comprises the hunger for any achievement or
knowledge from various sources. Jamshedji Tata and Richard Branson are the two successful

entrepreneurs in the world for their businesses. They stated that education ins not enough for an
individual to acquire knowledge as the person is required to acquire knowledge from the
practical business fields as well and this is a reason why all highly qualified persons are not
entrepreneurs.
Self Confidence- Self confidence is an important tool for any entrepreneur to initiate its
business and the ideas. Self confidence makes the person rise after number of failures and
motivates him during critical situations and problems in the business. Jamshedji Tata had many
failures in his business, but he never compromised his dream of setting Iron and Steel company
as well as world class education institution and this self confidence made him first Indian
Entrepreneur to achieve this streak(Obeng, Robson and Haugh, 2014).
Openness to change- This is one of the important characteristic of an entrepreneur as the
business world is full of fluctuation and changes. Hence, it must be in the nature of the
entrepreneur to be ready to accept the changes and trends as per the market requirement.
Highly Motivated- Motivation is an vital eolement that makes the difference between rthe
entrepreneurs and the managers. Jamshedji Tata and Richard Branson have high motivation
factors in them which makes them success in their operations of business.
Skills of Jamshedji Tata and Richard Branson are as follows- Business skills- These skills are the primary requirements of an entrepreneur. These
skills involves visionary skills and risk bearing skills. This skill states that an
entrepreneur must be good at handling the risk of the business and manage his decisions
accordingly. Jamshedji Tata and Richard Branson also possess these skills which made
them achieve high altitude of success. Communication skills- Communication skills is also an important component for an
entrepreneur. As the entrepreneur has to perform several activities such as presentation,
communication with the clients, writing letters and emails, negotiating with the suppliers
and reading the current trends and reports of the company. These skills the basic
requirements of an entrepreneur to manage the business activities as well as represent the
company in the corporate world. Jamshedji Tata and Richard Branson both had better
communication skills which made their business prosper and expand in different markets.

 Decision making Skills- These are the most important skills for any person who is
initiating or running a business. These are the core skills of an entrepreneur to make the
important decisions at critical business related situations. The concept of selling
Christmas trees to magazine and later the Virgin group has been an result of the decision
made by Richard Branson. Thus it can be observed that effective decision making skills
help the entrepreneur to achieve his goals and objectives with an ease.
 Problem solving skills- There are number of problems arising during any business start-
up, the entrepreneur must be prepared by to overcome and find solutions to these problem
ion order to run their business for longer duration. Richard Branson had many issues
initially as his business and magazines gained a great publicity but the copies were not
being sold in the market. This in turn led to the shortfall of cash revenue and made him to
initiate a mail order discount record business which lead to the million dollars growth for
the magazine Thus it can be noted that the problem solving skill help the entrepreneurs to
overcome all the difficulties and issues faced in the business.
P6
The present discussion is based on the Ocean personality model to understand the
entrepreneurial motivation and mindset-
Mindset- Mindset is a set of attitudes and perception that is held by an individual.
Ocean model includes determining The Big Five Personality traits for successful
entrepreneurs which are as follows-
Openness- Openness refers to the innovative thoughts, curiosity to acquire knowledge
from different activities and grabbing the opportunities as well. This quality makes the
entrepreneur successful in his decisions and activities of business. Richard Branson and Jamsetji
Tata did have higher degree of openness(Volery and Mazzarol, 2015).
Conscientiousness- It shows an alertness and promptness of an individual in responding
to the actions. This quality makes the person organise his work and accomplish it on time.
Richard Branson and Jamsetji Tata were greater conscientious for their business activities and
actions which had also developed a positive mindset among them.
Extraversion- This quality refers to the ability of person to interact with others easily and
get motivation from them which is always essential for an entrepreneur. Richard Branson and