Entrepreneurial Ventures, Business Startups, and Economy Report

This report delves into the realm of entrepreneurship, exploring different types of entrepreneurial ventures, including survival, lifestyle, managed growth, and aggressive growth businesses, and their relationship with various topologies such as scalable, social, and female-oriented models. It contrasts these ventures, highlighting differences in management styles, orientations, structures, and economic motives. The report also analyzes statistical data on the impact of micro and small businesses in the UK economy, demonstrating their significance in terms of employment, turnover, and contribution to GDP. Furthermore, it underscores the importance of small businesses and business startups in fostering growth within the social economy, particularly by providing employment opportunities for local workers. The report concludes by emphasizing the crucial role of small and medium enterprises (SMEs) in the economic landscape and their ability to adapt to market dynamics.

Entrepreneurship and small
business management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1 Different types of entrepreneurial ventures and its relation with topology ...........................1
P2 Similarities and difference between entrepreneurial ventures ...............................................2
P3 Statistical data related to impact of micro and small business on economy...........................4
P4 Importance of small businesses and business start-ups for growth of social economy..........5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Entrepreneurship refers to business that is run by an individual by taking risk for the
purpose of earning profit in the future ( Amato and et. al., 2017). It brings new ideas and
innovation into company that will lead to bring more opportunities and growth. According to
Schumpeterian entrepreneur are the owner of organizations for the purpose of earning profit and
growth in the future. These are creative and innovative practices. This defines different aspect
that lead to bring effectiveness in business and the main purpose of business get fulfilled by
earning profit in the company.
Report will include different types of entrepreneurial ventures and their relation with
different topologies. It also includes similarities between entrepreneurial venture and impact of
small business in an economy. Furthermore, it will include importance of small businesses and
business that will help in growth of the social economy.
MAIN BODY
P1 Different types of entrepreneurial ventures and its relation with topology
There are four types of entrepreneurial venture are as follows:
Survival business:- This type of business is owned by an individual independently for the
purpose of earning profit in the future (Venkataraman, 2019). Its main goal is to earn profit and
sustain into market for the long term that will lead to bring more growth in the future. It is s type
of business that include restaurants, agriculture and retail stores. This will bring more
opportunities and growth for the future.
Lifestyle business:- In this type of venture profit will be earned by doing business that will help
in satisfying needs and preference of consumers. It is changing its business operations according
to market trend as different styles will be followed for becoming successful in the marketplace. It
includes self employed business and small operating business that help in future growth. This
bring more growth and
Managed growth business:- This refers to managing business for future growth and bring more
opportunities. If business will be well managed then it will create different perspective for the
business. Managed business ventures will have long term survival for the future (Doern, 2016).
Proper budget will be prepared that enhance more profit as it ensures proper utilization of
resources in the company.
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Aggressive Growth:- This refers to giving potential growth that will help increase productivity
in the company. Growth will be occurred that will lead to create different aspects as there are
possibilities of having competitive advantage in the company. There are different perspective
that create market situation that will bring efficiency and effectiveness for the future.
Different topologies that are related to entrepreneurial ventures are as under:-
Scalable:- This type of topology is related to survival business venture that is based on some
criteria that will be depend on size on business. As this type of topology is useful for larger scale
enterprise as there are more chances of growth in the future. This will bring more possibilities by
adopting this topology company run its operation for expansion in future course of action.
Social:- Lifestyle business venture is related with this type of topology as customers are king of
market that brings more opportunities and expansion of business (Yan and Yan, 2016). This will
be related to culture, beliefs and norms that will be followed into business for future course of
action.
Female:- This topology is related to managed growth business that enhance further growth. This
emphasize on taking into account various aspect that will bringing in enhancement of female
employees in the company.
High Scalable:- This is related to aggressive growth that will bring more opportunities in the
company. As in this company is depended on scale that has expansion in future course of action.
Types of entrepreneurs
There are three types of entrepreneur according to (Weenekers & Thurik 1999) are as
follows:
 Schumpeterian entrepreneurs
 Employee in companies
 Managerial business owners
Typologies
Schumpeterian entrepreneur topology is related to experience of different people that are
working in various sectors in the economy. In this performance will be checked depending upon
feedback that is received from other employees in the company (Miles &Snow 1992) In this
performance will be evaluated by involving different aspect that lead to bring effectiveness in
business. On the other hand, there are different topologies that will be worked together and
enhance productivity in entrepreneurial venture. In this managers having different aspect that
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will be created for the future. Different entrepreneur is having their own topologies that help in
building network. Through these topologies risk can be minimized and enhance different
perspective for the future (Blank 2010). As personal characteristics affect functioning of
business that lead to bring changes in entrepreneur and influence for achieving success in the
environment.
P2 Similarities and difference between entrepreneurial ventures
Basis Survival Lifestyle Managed growth Aggressive
growth
Management
style
In this venture
reactive style will
be followed in
business.
Tactical style is
followed
Strategic style Proactive style is
being followed
Orientation Very low Low Moderate High
Management
skills
In this making
and selling skill
will be needed for
operating
business in the
future
(Staniewski,
2016).
Operational skills
is needed to
perform a task in
this venture.
Planning,
delegating skill
that will be
helpful for
managing
different activities
that will help in
achieving
objective of the
company.
Innovation, cash
flow management
that will be
helpful for the
future course of
action.
Structure There is no
structure that is
being followed in
survival business
Simple structure
is followed in the
company.
Functional
structure is
followed that will
provide
centralised
channel to
In this also
product and
market based
structure is being
taken into account
that will be
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different
department in
venture.
benefit for the
future.
Reward Weekly income is
provided to
employees
Salary or bonus is
provided
Salary,
performance,
incentives, equity
is given to
employees
Equity or capital
gain
Economic
motives
Its motive is to
provide different
perspective
Income
substitution
(Karadag, 2015).
Wealth creation Similarly, here
also wealth is
created
Exit approach Shut down Venture can be
sell to other
company
In this it can be
sold, merge or
transfer
Business can be
sold, merge and
can converted into
public
Management
focus
Mainly focused
on selling process
that will help in
earning more
profit.
Maintenance of
work so that it
will not lead to
disruption of
work
Focused on
strategic growth
It wants to expand
its business
operation
Time period Day to day Weekly and
monthly
1-2 years 2-5 years
Orientation Very low low Moderate High
Investment in
technology
No need of
investment in
technology
Limited
investment in
technology is
required
Moderate
investment is
required
Investment is
required at larger
scale in business
Source of finance Finance is
provided by
Here it is
provided by
Investors, bank,
family, friends
Private investors,
bank, public
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company itself for
future growth
friends, bank
family
provide finance to
the company
market provide
finance to
company
Liability There is no such
liability
Similarly, here
also there is no
liability (Turner
and Gianiodis,
2018).
Less liability No liability
P3 Statistical data related to impact of micro and small business on economy
According to the survey conducted it will be found that there were 5.4 million small
medium enterprise that are running in United Kingdom in 2016 that was 99% of all other
business. Similarly, micro business constitute 5.3 million in UK by 2016. It is accounted for 96%
from all other business. As per the statistics it can be said that 32% of people are employed and
they stay in business for longer duration and employee turnover rate is 19%. Total 15.7 million
people are employed in UK from which 60% people belong to small medium enterprise. Annual
turnover of SMEs are £3,739,171 that is 475 of private sector in the UK. In medium business
250 people are appointed but only maximum 9 people are working in micro business as it shows
limited employment opportunity (Distinguishing Types of Entrepreneurial Ventures: An Identity‐
Based Perspective, 2019). Through this survey it can be interpreted that there is no growth in
both SMEs and micro business. Revenue that will be generated through small business
has greater impact on economy of UK.
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Interpretation
There are 99% business that will be considered to be small and medium business that will
create large competition in the market of UK. It can be found that in 2010 employment turnover
in micro business is 4,618,315 while in 2017 it grows to 5,491,009. Turnover in 2010 is £
589,871,148 and in 2017 it rises to £ 791,771,342.
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Interpretation:
In addition to it in case of small business employment in 2010 is 3,785,801 and in 2017 it
is 4,450,716. On the other hand, micro size business have employment 3,800,000,00 in the yeat
of 2010 and it increased till the year of 2017 and it becomes 4,410,000,00.
Interpretation
As turnover in 2010 is 549,139,326 and in 2017 is 616,807,735. From the survey that is
being conducted to there is a large extent of small business as compared to micro business. It will
be beneficial for the future course of action that will be creating different aspects as small
business enterprise are expanding more and cover its market share.
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Interpretation:
In the context of small business there were small businesses were 195,000 in the year of
2010 and it also increased up to 2017. It increased and become 232,000 in the year of 2017.
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Interpretation: In the context of micro business it is interpreted about the number of total
businesses are 1,83000 and in the year of 2017 it becomes 2,40,000. So it can be said that there is
an increasing number of small and medium size businesses.
As small business is contributing more to economy as 50% it is providing towards GDP that will
be helpful in the future. From the overall study it can be said that SMEs are efficient to do
business in United Kingdom. There are different sectors that will be contributing towards
economy that will be beneficial for the company (Henry, Foss and Ahl, 2016). As the time of
inflation there is increase in prices that will lead to decrease purchasing power of customer. This
will lead to provide different aspects that will be creating various segments that will be helpful
for the future.
P4 Importance of small businesses and business start-ups for growth of social economy
Employing local workers:- Small business will help in contributing towards the
economy by providing employment to local workers that will lead to provide growth and
opportunities for the future. This will help in attracting new talent into business which bring new
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ideas and innovation for the future. From small business, large enterprise also get benefit that are
located within that area. In some countries large organization is depended on small business for
running its operation in the market. Therefore, small business plays an important role in
company for future growth.
Adapting changes:- As small business can adapt changes easily that will bring
effectiveness in working. As small business contains less risk of damage so consumers adapt
changes easily and remain loyal with company (Fayolle and Gailly, 2015). Loyalty of consumers
will help in increasing productivity for the future. This brings positive attitude towards consumer
that will be providing different aspects for running its operation in business.
Self motivated:- Small business are self motivated as they are performing its operation in
market effectively and efficiently. There is no need of motivation as it is serving its services to
consumers by satisfy its needs and demand for the future.
Developing personal relations:- Small business will help in developing customer
relationship management that will increase productivity. This helps in building effective relation
that helps in earning more profitability (Mareschs and et. al., 2016). If consumer relation is good
with small business then it will lead to provide advantage to large enterprise as well consumer
will buy that product with then as well.
Therefore, small business is an essential part for economy that will help in increasing
productivity as well as profitability for the future. Innovation can be done easily as there is less
investment done and changes will be adaptable easily according to new changes in business.
Social economy is the term that is used for different organization that are working
together for sharing values, beliefs and customs of different segment. the main purpose of it is to
provide services to different members in the economy that belong to their own community and
sharing beliefs and customs. It is contributed in different ways as by providing various facilities
to people from different segments for the purpose of providing welfare to them in the country.
Small business are important because they are providing opportunities to organization for
developing jobs and giving job satisfaction by fostering positions in companies.
CONCLUSION
From the above study it can be concluded that small business plays an important role for
growth in the economy. There are different entrepreneurial ventures that will help in increasing
productivity as well as profitability of business. These ventures will be related to specific
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