Entrepreneurial Ventures, Business Types, and Economic Impact Analysis

This report delves into the realm of entrepreneurship, exploring various types of entrepreneurial ventures, including small businesses, large corporations, social enterprises, and scalable startups. It analyzes the similarities and differences between these ventures, highlighting their distinct characteristics and operational models. The report further examines the impact of micro and small businesses on the economy, emphasizing their contribution to GDP and their role in fostering economic growth. It also discusses the characteristics, skills, and traits of successful entrepreneurs, as well as factors that either promote or hinder entrepreneurial endeavors. The report uses the Boston Consulting Group (BCG) as a case study to illustrate key concepts, such as the importance of strategic planning and financial resource allocation. Overall, the report provides a comprehensive overview of the entrepreneurial landscape and its significance in the modern business environment.

ENTREPRENEURSHIP
AND SMALL
BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types of entrepreneurial ventures which are related to entrepreneurship..........1
P2 Similarities and Difference between entrepreneurial ventures.........................................3
TASK 2............................................................................................................................................5
P3 Impact of micro and small business economy..................................................................5
P4 Contribution of business start ups and small business on social economy.......................6
TASK 3............................................................................................................................................8
P5 Characteristics, skills and traits of successful entrepreneurs............................................8
P6 Aspects of Entrepreneurial Personality.............................................................................9
TASK 4.........................................................................................................................................10
P7 Factors that foster or hinder entrepreneurship.................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneurs in a company act as innovator who brings new ideas, products and services
to run small business successfully. They play an important role in economy of organisation who
take many risks in decision making as well as take necessary steps to evaluate future and current
needs of business. Therefore, these persons are rewarded with profits and opportunities of
growth in industries (Lee-Ross and Lashley, 2010). Through their efforts, an enterprise becomes
able to give tough fight to competitors. The Boston Consulting Group (BCG) is a small
consultancy firm of UK that operates in 90 offices in 50 countries. It gives suggestions to private,
public and not-for-profit sectors about how to allocate or utilise cash in their business. This
assignment shows different types of ventures of entrepreneurial as well as their relationship with
typology of entrepreneurship. Along with this, similarities and differences of various ventures
are also discussed in briefly. This report also reflects impact of assessment and interpretation of
relevant data on economy of BCG. Furthermore, role of small business and start-up's in the
growth of social economy etc. are shown.
TASK 1
P1 Different types of entrepreneurial ventures which are related to entrepreneurship
An entrepreneurial venture is like a small business in which entrepreneurs take complete
risk to produce new and innovative products. They use effective strategic methods for this
process. These ventures provide a platform to individuals to share their innovative ideas which
helps in developing social and economic value (Kirzner, 2015). With this assistance, companies
are required to have sufficient number of employees which help in carrying out business
operations in an appropriate manner. Skilled and qualified workforce aid to accomplish all task
in a limited period of time successfully. Generally, entrepreneurship can be classified as:-
Small business entrepreneurship: It includes business sectors like groceries and retail
shops, departmental store, consultancy agencies, cafes and restaurants etc. which are operated by
single owner. These companies are work on special motive that is to earn enough money so that
they can fulfil their basic requirement easily. With this assistance, business owners use special
techniques and offer products on discounts in order to gain large number of customers. This
process helps them to gain sustainability at marketplace for longer period. Furthermore, to start-
up small business people usually take loan from banks or own capital.
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Large corporation entrepreneurship: This category includes big companies who operate
their business on large level. They work to earn more and more profit by run their business for
longer period. These companies are used to identify needs and demands of people so that they
can manufacture products or services accordingly. Employers of such enterprises used to include
innovative ideas in order to gain high satisfaction of customers as well.
Social Entrepreneurship: It includes government companies that work for welfare of
citizens. Therefore, entrepreneurs take whole responsibilities to run business activities according
to welfare of people. This process helps in raising standard of persons in an effective manner.
Along with this, employers of these companies always concern on improving conditions of
people as well.
Scalable start-up's: Firms like Facebook, Instagram and companies which operate their
business on e-commerce are come in this category. These organisations start-up business on low
capital at initial level but they don't want to remain small always. The main aim of such
enterprises is to serve more and more customers which helps in generating profits and revenues
for a longer period of time (Luiz, 2011). For this assistance, business owners of such companies
are required to generate a strong idea for opening their new venture. Since these firms render
much revenue and cover large market share therefore, they get fund easily. Investors who invest
in such companies of entrepreneurship are often called venture capitalists also. Scalable start-up
companies get high return on investment after gaining sustainable position in marketplace which
impacts on economy of country also.
Various types of entrepreneurial typologies are:-
Lifestyle venture:- Under this typology, entrepreneurs work on individual basis in a
company and takes all responsibilities to maximize its sales performance. This process helps in
increasing benefits so that an organisation becomes able to get sustainability in the market as
well as give tough competition to rivals for long period of time.
Survival ventures:- Companies in this typology are generally not registered therefore,
entrepreneurs use Barter and Cash system of accounting. Main motive of owners of such
companies is to run business in a profitable manner so that they can fulfil own requirement
easily.
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Managed growth ventures:- These companies have less working employees so, owner
take decisions of own. Along with this, they enrol in all tasks for accomplishment. Therefore,
investors in such companies know that they will get sufficient return on investment.
Aggressive growth ventures:- These type of companies are used latest technologies and
effective tools to carry out business operations appropriately. This process helps them to improve
productivity and profitability in an easy manner. Along with this, high performance of business
aid in increasing growth of economy as well.
Therefore, all these discussions have proved that entrepreneurial ventures contribute their
much effort in increasing the economy of country. Small-business companies like BCG
Consultancy creates a growth-share matrix to companies which tells them the way to assign cash
in a proper manner. This process categorizes business of enterprises into four sections that are
Stars, Cash Cows, Question Marks and Dogs for allocating cash.
Sole Proprietors: In this type of entrepreneurship, a company has single owner who makes
every decision related to operate business as well.
Partnership: Such type of business has two or more business partners. In order to reduce
liabilities, entrepreneurs can start business in partnership.
P2 Similarities and Difference between entrepreneurial ventures
There are many difference and similarities among various types of entrepreneurial
ventures which can be explained as:
Types of enterprise Similarities Differences
Small v/s large business
enterprise
Since all organisations whether
small or big operate business
with common purpose i.e. to
fulfil demands of people on
time in an effective manner.
Therefore, they used to
produce high quality of
products to customers in order
to gain their retention with
firm for longer period. For
The major difference between
small and large business is that
small organisation deals at
local level and always seeks to
earn sufficient profit for their
livelihood. On the other hand,
big companies used to operate
business on local as well as
international level. Apart from
this, capital formation of these
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example- Boston Consultancy
is a small company of UK
while Ekol Business
consultancy operates its
organisation at big level. But
both enterprises have same
targeted customers.
sectors also shows differences
in these two sectors. Small
firms are required less capital
as compared to big ones. Ekol
and Boston have same
business operations but in
context with revenues and
turnover there is a big
difference.
Social v/s Scalable Both social and scalable
ventures work on same motive
that is to serve clients in a
limited period of time which
helps in increasing their
business growth. They provide
effective services to customers
in order to gain sustainability
at marketplace. Apart from
this, these companies are also
used to conduct proper
analysis on identifying trends
of marketplace as well so that
they can operate business
accordingly. For instance-
Marketing department of
Deloitte and Boston
Consultancies are used to find
change in trends along with
reason for such alterations in
order to give build effective
strategies for providing their
Apart from many similarities,
aim of both entrepreneurial
ventures is different. Scalable
organisations are used to serve
more and more customers in
order to generate profit and
revenue. While companies
based on social entrepreneur
works for solving issues and
personal problems of citizens.
For Example- Boston
Company used to give
suggestion to other firms in the
way of utilisation of cash but
apart from this, Deloitte help
companies in increasing
growth of business by
delivering an effective plan.
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services in a systematic
manner.
In terms of procedures, other differences and similarities of ventures are:-
Identification of loss/profit – Generally big enterprises and scalable ventures used
proper accounting procedure for measuring their loss or profits in the end of financial year. But
this is not possible for all companies like small and social entrepreneurs to evaluate exact loss or
profit. For example- Deloitte and LinkedIn are big consultancies whose accounting management
used to calculate their heavy turnover in the end of financial power in order to measure net profit
or loss. While managers of Boston and Talent Firms have used proper methods for evaluating
exact loss or profit in business.
Regional development – Today in competitive world, all entrepreneurs seek to start-ups
their business in own style. They open their outlets just to earn profit in a proper manner. But
increasing revenues and profitability of some organisations do not impact on economy of a
country or state (Fassin, Van Rossem and Buelens, 2011). Therefore, social and scalable
ventures are working in same procedure that is to improve living conditions of people but with
different procedures. Furthermore, small and big organisations work to obtain high profit which
directly impact on economy of a region.
Public and private organisations: These ventures help other organisation in establishing
their business in a proper way by raising funds. These enterprises either invest directly or raise
funds from other sources to different ventures in order to gain high return on investment. Public
organisations provide capital to help those companies who engage in improving conditions of a
region. While private firms invest in those enterprises which operate their business to earn high
profit.
TASK 2
P3 Impact of micro and small business economy
All organisations whether public or private, small or large consider demands of
customers first. Employers of these firms are used to identify trends of marketplace and needs of
people so that they can manufacture products accordingly. These companies can be differentiated
on the basis of number of employees, size and structure named by Micro and Macro businesses.
Companies who have 9 or less than 9 workers in workplace are consider as micro organisation.
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While Macro enterprises have large number of workforce (Impact of small-business in UK
economy.2017). While small businesses open their organisation at less capital for establishing
their companies. These enterprises used to sell their products or services in local areas mostly.
Therefore, impact of these companies on GDP of a country has not much effected.
The Boston Consulting Group (BCG) is a small consultancy enterprise and it helps other
companies of UK in utilising their financial resources in a profitable way. Currently this firm
operates its business at local and national level. Currently, its management plan to expand
business at international level.
The impact that Micro and Small sized businesses are having in the economy are:-
Local Impact – Micro and small business companies have large impact on local areas as
they used to provide their services or products to citizens only. They are targeted based
enterprises which start-up their businesses according to general needs of customers. Therefore,
with the help of research and development team, these firms identify basic demands of people as
well as their purchasing power. It helps them to analyse whether they gain high return on
investment in manufacturing such products. Apart from this, start-ups of such companies raise
much employment which reduces unemployment in a particular area.
Regional impact – Business of micro and small companies create much impact on
society also. They affect either in positive or negative way like serving clients of local regions
helps in making good relations of companies with them (Drucker, 2014). Employers can
understand needs and desires of customers easily when operating their business at local level.
This process shows positive impact while pricing strategies effect in negative manner. Small
business generally used to offer products at fix prices, which forced customers to buy on the
same and reduce the chance of bargaining.
National Impact – Since, these companies operates at low capital and in local area
therefore, they haven't impact much on national income (Dennis, 2011).
In context with UK, small and micro firms are growing at faster rate, so they have
contributed much in its economy which can be shown by below mentioned graph.
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(Source: Micro and Small Business, 2017)
Interpretation: As per data, it has interpreted that business of Boston Consultancy Company are
increasing at high rate. As observed from mentioned graph in 2010 this firm has incurred only
1million at the end of financial year. But till 2015 it has earned more than three times i.e. 3.9
million as compare to past record.
Including above factors, UK Government has set certain limits on investment in small
and micro businesses as:-
Basis Manufacturing Sector Service Sector
Micro enterprises These companies can made
investment till 2 to 3 million
Investing in business till
1million.
Small Enterprise Investing in business is made
between 2.5 million to 50
million.
Investment in between
1million to 20 million.
Medium enterprise Investment within limits of 5
to 100 million.
Investment can be made up to
50 million.
P4 Contribution of business start ups and small business on social economy
Since it is well known about UK economy is presently filled with various numbers of
enterprise start ups. There are different kinds of small enterprise venture which are opened in
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United Kingdom (Chrisman and et. al., 2012). Even at current times enterprise are growing very
rapidly day to day as many of people are having ideas which they are implementing as well as
entering within the enterprise world. With this enhancing of various start ups along with that
growth of economy is very fast. Population of UK is well educated that's why they are giving
their contribution for developing country. But these ventures are providing advantages to a
country then they also think about advantages of society as they will give demanded resources by
particular running country. UK government know that success always depend on medium and
small business as well as therefore it is important to take care of small enterprises in social
economy are:-
Turnover – If some organisation is having a better turnover then they consider as very
necessary for the country as it is believed that if venture turnover is good the it will enhance
market as well as they will be need more more funds, staff etc. which will finally bring growth
According to George and Bock, BCG group has posted sales of $6.3 billion at global level. This
thing has increased 11% in revenue growth at constant exchange rates.
Employment – If any country wants to get developed then it is necessary for them to
give opportunity of employment it will enhance chance of 12% in economy growth within
country. These persons are consider as an country assets as well as if these persons will be
employed then there will no any issue in the society.
Growth – If growth is discussed then small and micro enterprises ventures are consider
as the higher contributors by the aid of country as it aid in satisfying their workers along with
that also give growth to workers living in the regional and local level. The particular who are
running these kind of project are more innovative and creative which are assist them in
delivering market freshness. According to Chittithaworn, Boston Consultancy Group has gained
growth of 12% which is more than double the rate of globalisation.
Industry – It is believed that 45% of the income is approximately of small enterprises are
comes from repair, manufacturing and retail of The Boston Consulting Group (BCG) only. These
domain falls in small-enterprises only. All these kind of business are giving a higher influence on
Britain so only it can be assumed that actually how strong it is.
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TASK 3
P5 Characteristics, skills and traits of successful entrepreneurs
Becoming an entrepreneur is not an simple work , their are different types of qualities and
skills that are represented in the people before starting their own organisation. These
characteristics which are needed to be represent in entrepreneur are discussed in detail below:
 Self-Motivated – The particular who is thinking to initially start a new enterprise so be
self motivated and confident within themself due to if any such conditions are raised then
people will faced failure as it is natural to face a failure but if it is entrepreneur then it
will get encourage as he will not demotivate as he will do it again that same work
(Gorgievski, Ascalon and Stephan, 2011).
 Know what to offer – The entrepreneur always get alive about the market that they are
delivering to the buyers.
 Risk taker – Risk is consider because it is necessary for the growth of The Boston
Consulting Group (BCG) . So, it is awaited from entrepreneur that all profits will be only
earned by themselves as well as whole risk is also bear by themselves.
There are some kills and traits as well as entrepreneur is needed to have ;-
 Determined - It is very determined towards their work as they are the very main people
in the organisation so they are enough caring about their work.
 Passionate – If they wants to become a successful within a marketplace then they have to
be passionate adequate to carry on all functions. If they are passionate about their work
then they will not fear of anything along with that they will go on doing all the functions
which are considered good for organisation (Carsrud and Brännback, 2011).
 Great Vision – It is consider as an most necessary trait which is needed to be represent as
an entrepreneur as it is very necessary to have a purpose in life . These purpose will only
assist the person to meet their real objective as well as goals.
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Characteristics Entrepreneurs Managers
Risk Taking Entrepreneurs in a company
takes initiatives and
opportunities present at
marketplace which helps in
turning business idea into
concept of innovation.
Managers generally do not
take risks, they are just used to
play in safe and secure
manner.
Planning They used to plan properly for
making innovation in products
or services.
Managers make plan for
achieving desired objectives of
company.
P6 Aspects of Entrepreneurial Personality
There are different kinds of skills which are important to be represented in the
entrepreneur if they make higher profits as well as become successful. Few are such as confident,
dynamic, courageous, reliable etc. along with that they should have better interpersonal skills
communication skills, as it is very necessary to be consider while designing the attribute of the
entrepreneur. These traits that are need to be represent in the people for becoming a successful
entrepreneur such as personal weaknesses, strength etc.
If there is a good idea then it is very essential for the entrepreneur to implement the
entire idea in a proper way that they provide better outcomes. If any The Boston Consulting
Group (BCG) wants to examine the personality traits of particular then they can use of Big Five
model which are discussed in detail below:
 Extraversion – These kinds of person are considered as very energetic as well as they are
having all qualities of leader. Along with these, they perform in high enthusiasms and
positive way (Bridge and O'Neill, 2012.). They possess abilities like influencing team-
members in an effective way to accomplish set goals on time.
 Agreeableness – As per this, the entrepreneur must be good natured as well as
trustworthy peoples so that person who follows their footsteps will believe in their ideas
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also. These persons are much active and have skills like how to collaborated employees
in a group and gain their productivity.
 Conscientiousness – In order accomplish difficult task in a proper manner, entrepreneur
have to focus properly with open mind on activities. Therefore, BCG Company handles
all its operations with conscious mind (Blackburn, Hart and Wainwright, 2013). This
process leads in eliminating risks as well as provide better solutions in regarding
problems of customers. Therefore, it always considers that entrepreneur is dutiful and
efficient.
 Emotional stability – It says that the entrepreneur must be concentrated and calm in his
task and should not aggressive at their employees. To run operations of a company
successfully, employer of firms are required to keep aside their sentiments. Emotions can
fluctuate minds of people in organisation therefore, associated person of companies like
BCG are needed to stay calm while operating business activities.
 Openness to experience – The particular entrepreneur who runs an enterprise must be
open minded as well as they should ready to face difficulties as well. By this they will
achieve new experiences.
Another aspect of entrepreneurial personality:-
Extraversion: This part shows that entrepreneur have special skills to acquire good
position at marketplace. They used to rapidly changes their strategies if looks fails in acquiring
desired profitability.
Rule Breaker: An entrepreneur used to change rules and policies of business in order to
gain high profitability in business.
Decision maker: Entrepreneurs have gained effective quality and sharp skills through
which they take proper decision in business by determining all needs to carry business operations
in a required manner.
TASK 4
P7 Factors that foster or hinder entrepreneurship
In an organisation, there are many factors present at workplace which are responsible for
fostering or hindering the entrepreneurship. It includes education background or qualifications,
abilities, cultures and more. Therefore, management of a firm always seeks to recruit persons
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who have much educated and gained high knowledge so that they can help in carrying out
business operations in an appropriate manner (Islam and et. al., 2011). Along with this, it has
believed that if a person in a company is not much educated as required then it will foster the
relationship at workplace. Furthermore, other things needs to considered in this context is
experience which also matter a lot in business operations. This thing is also beneficial for
companies as they can help more in accomplishing difficult task on time. If employees have
much experience then they can help employers to create high innovative products. Along with
this, they can open their own small business also.
For example: Mark Zuckerberg who is currently CEO of Facebook, has gained lot of
success through his effective and intellectual business idea. Right now, he has become one of the
richest person in the world. But as seen in his past history, he was belonged from a small and
poor family whose earning was so little. His idea of launching Facebook was came into his mind
while studying at Harvard University, where he has read various books of software technologies.
Therefore, this example shows hinder and foster situations of entrepreneurship.
Therefore, it has concluded that past experiences and education background of
employees, employers or entrepreneurs impact on fostering or hindering the relationship in a
large manner.
CONCLUSION
From the above discussion on entrepreneurship and small business firms, it can be
concluded in order to start-up a company, a person needs to consider all factors that can impact
on operations. They used to formulate special planning and strategies which aid in running
operations appropriately. Apart from this, entrepreneurs are required to develop innovative idea
before opening outlets at marketplace. They should behave like opportunity seizer, screener or
seeker which helps in turning ideas into actions. This process helps in creating innovations in
production as well as in producing wide range of products. Furthermore, entrepreneur takes
many responsibilities to carry out various functions in a proper manner which aid companies to
gain high productivity and profitability.
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REFERENCES
Books and Journals
Blackburn, R. A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development. 20(1). pp.8-27.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small
business. Palgrave Macmillan.
Carsrud, A. and Brännback, M., 2011. Entrepreneurial motivations: what do we still need to
know?. Journal of Small Business Management. 49(1). pp.9-26.
Chittithaworn, C. and et. al., 2011. Factors affecting business success of small & medium
enterprises (SMEs) in Thailand. Asian Social Science. 7(5). p.180.
Chrisman, J. J. and et. al., 2012. Family involvement, family influence, and family‐centered non‐
economic goals in small firms. Entrepreneurship theory and practice. 36(2). pp.267-
293.
Dennis Jr, W. J., 2011. Entrepreneurship, small business and public policy levers. Journal of
Small Business Management. 49(1). pp.92-106.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Fassin, Y., Van Rossem, A. and Buelens, M., 2011. Small-business owner-managers’ perceptions
of business ethics and CSR-related concepts. Journal of Business ethics. 98(3). pp.425-
453.
George, G. and Bock, A. J., 2011. The business model in practice and its implications for
entrepreneurship research. Entrepreneurship theory and practice. 35(1). pp.83-111.
Gorgievski, M. J., Ascalon, M. E. and Stephan, U., 2011. Small business owners' success criteria,
a values approach to personal differences. Journal of Small Business Management.
49(2), pp.207-232.
Islam and et. al., 2011. Effect of entrepreneur and firm characteristics on the business success of
small and medium enterprises (SMEs) in Bangladesh. International Journal of Business
and Management. 6(3). p.289.
Kirzner, I. M., 2015. Competition and entrepreneurship. University of Chicago press.
Lee-Ross, D. and Lashley, C., 2010. Entrepreneurship and small business management in the
hospitality industry. Routledge.
Luiz, J., 2011. Small business development, entrepreneurship and expanding the business sector
in a developing economy: The case of South Africa. Journal of Applied Business
Research (JABR). 18(2).
Online
Impact of small-business in UK economy.2017.[Online].Available
through:<http://smallbusiness.chron.com/important-small-businesses-local-economies-
5251.html>.
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