Entrepreneurial Ventures, Typologies, and Economic Impact in the UK

This report comprehensively examines entrepreneurial ventures, exploring different types such as small-business, scalable start-up, large company, social, and determined entrepreneurship, and their typologies. It details the similarities and differences between private, public, and social businesses, highlighting the unique characteristics of each. The report provides data and statistics illustrating the significant impact of micro and small businesses on the UK economy, including employment figures, revenue, and regional variations. It also emphasizes the importance of small businesses and start-ups for social and economic growth. Furthermore, the report analyzes the traits of successful entrepreneurs, reflecting on how personality, background, and past experiences influence motivation and mindset within the entrepreneurial landscape. The report covers various factors that hinder or foster entrepreneurship, including differences between male and female entrepreneurs, and the management skills, rewards and economic motives for each. The report concludes by summarizing key insights into the dynamics of entrepreneurial ventures.

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
P1 Different type of entrepreneurial venture and explaining how they relate to the typology of
entrepreneurship.....................................................................................................................1
P2 Similarities and differences between each........................................................................3
M1 D1.....................................................................................................................................5
P3 Data and statistic to illustrate the impact of micro and small business have on the economy
................................................................................................................................................6
P4 Importance that small businesses and business start-ups on the growth of the social
economy...............................................................................................................................11
M2 D2...................................................................................................................................12
PART 2..........................................................................................................................................13
P5 What makes a successful entrepreneur............................................................................13
P6 How aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mindset. ..............................................................................................................................14
M3 D3...................................................................................................................................16
P7 how a person’s background and past experiences can hinder or foster entrepreneurship.16
M4 D4...................................................................................................................................17
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
Entrepreneurship and small-business management are connected to each other in terms of
managing business at domestic level. The report will cover different types of entrepreneurial
ventures and relation to their typologies. The similarities and differences between entrepreneurial
ventures is also covered with roles, characteristics and objectives of ventures such as social,
public and private business. The impact of micro and small-business on the UK economy is
discussed with relevant examples, graphs and tables which helps to demonstrate positive and
negative impact. The importance of small-business and business start-ups towards the
development and growth of UK economy will be discussed in this report. The report will
demonstrate characteristic, traits, and skills posses by a successful entrepreneur. The reflection of
entrepreneur personality towards his or her mindset and motivation covering factors that hinder
or foster entrepreneurship will be discussed in this report.
PART 1
P1 Different type of entrepreneurial venture and explaining how they relate to the typology of
entrepreneurship
Entrepreneurship: Entrepreneurship is a process of launching, designing and running a
business , which is often a small firm. Creator of the business is known as entrepreneur. An
entrepreneur has idea how to create products and services for customers in the market in order to
support sales. Entrepreneur assume all the risks and rewards of the business (Burns, 2016). An
entrepreneur faces many difficulties and uncertainties in the company but focus on objectives
and aim will help to take right decisions in order earn profitability effectively. Small businesses
are contributing towards economic growth and development that, UK government also
promoting at domestic and international level. It can be said that, not all the entrepreneurship are
same that there are four different types described by Steve Black as following:
Small-business entrepreneurship: It can be said that there are total 5.7 million small businesses
in United Kingdom. They make up 99.7% of all companies and employ 50% of all non-
governmental workers. Small ventures such as travel agents, groceries, stores, plumbers,
electricians, carpenters and internet commerce stores etc. These type of businesses are mostly
managed and run by local families in order to feed family members and make profits. Funds for
business is received through friends, family members or bank loan.
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Scalable start-up entrepreneurship: Scalable entrepreneurs are different in nature that they are
focused on their vision. They are so much confident that their vision could change the world
effectively. The business is started with a unique research of ideas and thoughts. The
entrepreneur hire best and quality employees in order to achieve vision and objectives. The main
work is to search scalable and repeatable business model in order to select best and appropriate
to start the venture.
Large company entrepreneurship: Large business have finite life cycle. Such kind of businesses
are established with a huge amount of capital and mainly focused on increasing profitability and
production (Schaper, Weber and Gibson, 2014). Changes in new technologies, competitors,
legislation and customer taste and preferences create pressure of descriptive innovations within
business effectively. Large business is required to create new products and services for
customers in the market. The entrepreneur manage a large number of employees in the firm in
order to manage and control various business and operational activities. It has been seen that the
large businesses are mostly managed and run by male entrepreneurs.
Social entrepreneurship: Social entrepreneurs create products and services to solve social needs
and requirements. Such type of entrepreneurs are motivated towards social services and provide
services to those members who are not able to purchase them due to the financial issues. But
unlike scalable start-ups their goal is to make the world a better place, not to take market share or
to create to wealth for the founder. They may be non-profit, for-profit, or hybrid. Male and
female both can be social entrepreneurs in this sector. They do not work for profitability or any
income.
Determined entrepreneur: Determined entrepreneurs are mostly the pacemaker instead of path
followers and they are also not interested to copy the products and services of any other business
to increase their own sales and profit (Mariotti and Glackin, 2014). Such type of entrepreneurs
are so much confident that they can make a change with a unique business idea. They work for
the success of company in order to achieve profitability and production. Male and female both
can be determined entrepreneurs.
Thus, it can be concluded that there are mainly four types of entrepreneurship and they
are connected to their typologies as well. Small business work for a limited income and other
side large ventures operate to increase profitability and production. Different entrepreneurs have
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various thinking, behaviour, characteristics and knowledge from which they start a venture to
become successful in the future effectively.
P2 Similarities and differences between each
Private business: Private business is owned by one person or a small number of group such as
family members in order to establish a income of source and earn profits. The business is run by
either non-governmental firms or a small number of shareholders in the market. The businesses
policies and strategies are managed and controlled by government legislation effectively. The
business is mainly focused on improving profitability in order to earn high revenues.
Public business: Public corporation is a corporation whose ownership is dispersed among the
general public in many shares of stock which are freely traded on a stock exchange or in over the
counter market. In simple word public business are those in which all the activities related to
company such as operational activities, policies and strategies are managed and controlled by
government effectively (Dana, 2016). There is no role of private individuals. The sector of public
business is very large and work for providing better and quality services to people in order to
enhance economy development and growth.
Social business: Social businesses are concerned with services that are reliable and effective for
those who can not afford them. Such kind of entrepreneurs and people working in firm do not
expect profitability instead they provide quality products and services to people. Social
entrepreneurship is the use of start up company and other entrepreneur to develop, fund and
implement solution to social, cultural, or environmental issues. The concept is also applied on
different firms with various aims, sizes, objectives and beliefs.
Different types of entrepreneurs have many similarities and differences that they all work
for a common objective of successful business. They are promised towards providing quality
products and services to customers in the market.
Similarities and differences between different business ventures:
Similarities
and
differences
Small Business Ventures Scalable Start-Up Venture Social Venture
Similarities Production and employees
both are limited but
focused on business
There are few people who
have adequate knowledge
and skills of business
Number of workers
involved in social
ventures in order to
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success and to create
income of source.
operations. provide services to local
people.
Similarities Local workers such as
friends or family
members are involved for
business expansion and
increasing employment.
Such businesses have plan
and strategies for business
development and
improvement in order to
achieve vision effectively.
Social ventures help to
increase economical
growth and development
by providing quality
services.
differences Small-business ventures
starts with a single
product or service and try
to achieve customer base
for expansion (Hatten,
2015).
These businesses are
focused on implementing
the vision goals and
objectives and try to
achieve them with unique
ideas and thoughts.
The social ventures are
not concerned with
earning profitability that
they work to improve an
individual life.
differences Low risk involvement
while starting the
business.
High risk involvement and
they are passionate about
achieving success.
No risks are involved as
they are working for the
welfare of society
effectively.
Differences between male and female entrepreneur:
MALE ENTREPRENEUR FEMALE ENTREPRENEUR
Make easy decisions. Face difficulties sometimes while making
decisions.
The focus of business is economy and cost. Social contribution and focused on quality.
Effective financial decisions. Conservative for financial risks.
Have enough information regarding business
operational activities.
Require detail information about business
operations and activities.
logical thinkers. Intuitive thinkers
Aggressive towards business expansion. Conservative about expansion
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Strong initiative. Positive, autonomous and think critically.
Similarities
MALE ENTREPRENEUR FEMALE ENTREPRENEUR
Control and focus on business activities Focus and control on business activities
Well educated and positive attitude Education level is good and positive attitude
Financial and business knowledge and skills Good financial and business knowledge
Profit makers in any situation Significant enough to earn profitability.
BASIS Survival Lifestyle Managed growth Aggressive
growth
Annual growth Nominal 5% weekly
and ,monthly
operations
10-15% and 1-2
years
20.00%
Management
focus
Reactive Tactical Strategic Proactive and
strategic
Exit approach Shut down Sell transfer and
shut down
Sell, merge and
transfer
Sell, merge and
go public
Structure None Simple Functional Functional,
production and
innovation
apart from this management skills, rewards and economic motives also different for each and
every factor effectively.
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M1 D1
There has been many academic debates around the definition of an entrepreneurial venture.
According to Gartner, an entrepreneurial venture can be defined as being the creation of an
organisation or a business start up. Kuratko et al proposed four main typologies of
entrepreneurial ventures, known as survival ventures, lifestyle ventures, managed growth
ventures and aggressive growth ventures. One good example is Mr. Bezo, who started out at a
micro level, running Amazon literally from his garage selling books, which has been heavily
developed and is one of the fastest growing successful businesses around in modern time.
P3 Data and statistic to illustrate the impact of micro and small business have on the economy
Illustration 1: Statistics on Private sector businesses in the UK 2017
Source: Government 2018
During the 2016 year there was 16.01 million employments made within small-
businesses in the UK which helps to made up 60% employment of private sector that year
effectively. The overall combined revenue of small-businesses in 2017 start was 1.9 trillion
which translate to turnover of 51% in private sectors in the UK.
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Illustration 3: Business statistics
Source: Government 2018
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Illustration 2: The business contributions, start of 2017 (population,
employment and turnover).
Source: Government 2018

It can be said that in London the South of England in the private sector is higher In UK in
comparison to anyone else effectively (Henrekson and Sanandaji, 2014). London at the
beginning of 2017 the number of businesses per 10,000 people was the highest out of the UK
with a density rate (1,519), followed by high rates of 1,272 in the South East of England. The
South West of England wasn't far behind with rates of 1,170 and the East of England was at
1,155 at the beginning of 2017 effectively.
Illustration 4: Amount of UK private sector businesses per 10,000 people at the beginning
of 2017 (region and country).
Sole-proprietorship: Single owner of a business is known as sole-proprietor. He or she is
responsible for managing and controlling business operational activities as well as profitability
and production. The profits and losses are also owned by proprietor. These people help towards
economy development for UK country. For an example, tax liability, considerations,
responsibilities and ownership (Sahut and Peris-Ortiz, 2014).
Partnership business: Partnership businesses are owned by a group of shareholders or people
which can be big or small in nature and scope effectively. Such businesses are mainly focused on
profitability and production which is increase by tourism and other government supports. In this
business profitability and losses are divided to partners equally or according to the investment
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ratios. This will also help to develop and improve the UK economy level. Characteristics such as
control and management, entity, unlimited liability, profit motive and conduct of business.
Private business: Private business is managed and controlled by board and committee members.
The business is also large in scope and sizes. Private businesses have their own policies and
strategies but controlled by government legislation effectively. Private business also help
towards economic growth.
SMEs and the Economy
  Small businesses accounted for 99.3% of all private sector
 businesses at the start of 2016 and 99.9% were small or
 medium-sized (SMEs).
  Total employment in SMEs was 15.7 million; 60% of all
 private sector employment in the UK.
  The combined annual turnover of SMEs was £1.8 trillion,
 47% of all private sector turnover in the UK.
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 the UK private sector business population comprised 3.3 million sole
 proprietorships (60% of the total), 1.8 million actively trading companiesii (32%)
 and 421,000 ordinary partnerships (8%)
  935,000 companies were employersiii, as were 265,000 sole proprietorships
 and 125,000 ordinary partnerships
  the business population increased by 2.0 million (+59%)
  the average rate of annual growth in the business population was around +3%
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