Analysis of Entrepreneurial Ventures and their Economic Impact

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Entrepreneurship and Small Business Management
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Table of Contents
Introduction................................................................................................................................3
LO1 Range of venture types considered entrepreneurial...........................................................3
Entrepreneurial ventures and their typology (P1)..................................................................3
Similarities and differences of entrepreneurial ventures (P2)................................................5
LO2 Impact of small business on economy...............................................................................6
Relevant data and statistics on the economy (P3)..................................................................6
Small businesses and small start-ups for the growth of social economy (P4).......................8
LO3 Key aspects of an entrepreneurial mindset........................................................................9
Characteristic traits and skills of successful entrepreneurs (P5)............................................9
Entrepreneurial personality reflect entrepreneurial motivation and mindset (P6)...............10
LO4 Different environments foster or hinder entrepreneurship..............................................11
Background experience to foster entrepreneurship with examples (P7)..............................11
Conclusion and Recommendations..........................................................................................13
References................................................................................................................................15

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Introduction
Entrepreneurship is at the core of every business, as each substantial organisation began as a
small business and driven by an entrepreneur. Personalities such as Jack Welch, Jamsetji
Tata, and Richard Benson came with innovative ideas, which have revolutionised the world.
In this report, we will discuss the various types of entrepreneurial ventures, similarities and
differences between them, impact of micro and small businesses and their importance in the
growth of economy, characteristics of successful business managers and their motivating
factors, and experience as a key factor to foster entrepreneurship. This report highlights the
ventures that can be termed entrepreneurial with the entrepreneurial activities. The different
scales and size of business, such as medium, large and small do have an impact on the
economy, but the impact of small businesses on the local as well as the international economy
is the most. Small businesses consider their responsibility towards the environment and helps
in the growth of social economy. All the successful entrepreneurs have some skills in
common and are highly motivated towards their work. Few recommendations of
entrepreneurial venture will be provided to the client to start a business in London.
LO1 Range of venture types considered entrepreneurial
Entrepreneurial ventures and their typology (P1)
The definition of entrepreneur as suggested by Baum et al., (2014), includes, entrepreneurs
are those individuals who have a strong sense of innovation and look forward to produce an
incentive through creation and improvement of economic activity by highlighting and
recognising the novel products, procedures or market segments. Many authors have presented
different definitions of entrepreneur and entrepreneurship, but the meaning and essence of all
these definitions are same. One such definition of entrepreneurship by Welter (2011) includes
a process through which individuals seek after circumstances without regard to the assets
they presently control. Entrepreneurship involves taking risks, having the tenacity to push an
idea through reality and seeking more opportunities. It is a coordinated concept that
permeates an individual’s business in an imaginative way.
Typology of Entrepreneurship:
As described by Kontolaimou et al., (2016), each entrepreneur is unique and different, and
the common element between those is the desire to create freedom through work. Here are
some of the typologies of entrepreneurship that could help us for the proposed business:

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Individual Entrepreneurship: Small business started by individual people for the benefit of
individual entrepreneur is termed as individual entrepreneurship. According to Breugst et al.,
(2012), this entrepreneurship is also called lifestyle entrepreneurship as the business is
established to improve his/her lifestyle. Entrepreneurial ventures such as start-ups, franchise
or acquisition are included in this entrepreneurship.
Corporate Entrepreneurship: As suggested by Autio et al., (2014), an organisation that exists
already chooses corporate entrepreneurship to expand its current businesses and wide
products. Entrepreneurial ventures such as joint venture or public-private partnership are
included in intrapreneurship, which is another name for corporate entrepreneurship.
Public Sector Entrepreneurship: Entrepreneurial ventures such as new development or joint
venture are included in public sector entrepreneurship, which describes the creative decision
of government to widen its services to the people who reside in that governmental area. This
entrepreneurship is also known as governmental entrepreneurship.
Types of Entrepreneurial ventures:
Start-up: As reflected by Parker (2011), start-up is a young organisation that has just begun
the process of development. These ventures are usually small and are initially funded by
other organisations to establish their path. These are mostly established by individual
entrepreneurs. Some of the examples of start-ups include providing different services to the
people, opening a restaurant in London or creating a new transportation network in London.
Acquisition: Acquisition is purchasing of a pre-existing business by an entrepreneur, which is
well established. This venture can be used by both, individual as well as corporate
entrepreneurs. Example of such venture include, buying of existing transportation business or
an existing restaurant in London.
Franchise: It is the most expensive entrepreneurial venture. According to Auer Antoncic and
Antoncic, (2011), the authorisation to sell, disseminate, or produce an item of a well-known
organisation is the franchise entrepreneurial venture. Buying a dealership of Jaguar, or buying
franchise of Sainsbury is the examples of franchise.
New development: The venture to develop new project or business by Public or Corporate
Entrepreneurs is termed new development. Some of the examples of new development
include addition of an extra department in Brexit or addition of a new business in McDonalds
to give salads.

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Joint venture: As the name suggests, joint venture is established between two or more
organisations to share profits and risks. They are mainly done by Corporate or Public
entrepreneurs. Examples of such venture include Google and NASA on development of
Google Earth or joint venture between BMW and Toyota to conduct research on hydrogen
fuels.
Public-private partnership: As suggested by Moriano et al., (2014), this venture is done by
public and governmental organisations. Building a new school by the local government of
London and private organisation is one of the examples of such ventures.
Similarities and differences of entrepreneurial ventures (P2)
The three main entrepreneurial ventures are High Growth venture, Lifestyle venture and
smaller profit venture. The table described below can be used to explain the differences
between the three main entrepreneurial ventures.
Lifestyle Ventures Smaller Profit Ventures High growth Ventures
Lifestyle ventures are a small
company that provides
independence to their owners.
Smaller profit venture is
operated to make a decent
living for the owners.
According to Dees (2017),
high growth ventures are
established to earn high
profits and gain rapid growth
in the business.
A small desire to gain profit is
aligned with our personal
interests and hobbies in this
venture.
It is not important to make a
high profit and gain growth in
such ventures.
High growth ventures are
focused on gaining high
profits along with growth in
the business.
These ventures provide
flexibility with timings, meeting
places and no proper dress code
is associated with lifestyle
venture.
These ventures do provide
flexibility in some conditions.
A proper dress code, working
hours and office is provided
by such ventures to attract
investors (Baum et al., 2014).
Most of the times, such ventures
expand their business by
financing debt.
Expansion is not the main
motive of such business and
work accordingly to make
decent living.
Investors are attracted to such
ventures and provide financial
help to the businesses.
In most of the cases, this venture
is started individually.
Smaller Profit ventures can be
established by an individual or
a group of individuals.
Employees and staffs are in
great number in such ventures.

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Example: online coaching
classes
Example: real estate business Example: SPARK Ventures
Table.1: Difference between three main entrepreneurial ventures
(Source: Learner)
Similarities between entrepreneurial ventures:
1) All these ventures are based on innovative ideas.
2) It is difficult for all these organisations to find customers and is involved with great risks
as compared to normal organisations.
3) These ventures are established by entrepreneurs with different and innovative thinking.
The entrepreneurs think out of the box.
4) The success achieved by such entrepreneurs is greatly high as compared to other
organisations, which are not entrepreneurial (Baum et al., 2014).
5) The products offered by such organisations are more attractive and innovative, and offer
the services that were unknown to the market.
Intrapreneurship and Social entrepreneurship
A system or framework where standards of entrepreneurship are practised in the limit of the
organisation is called intrapreneurship. As per the opinion by Santos, (2012), an intrapreneur
is an individual who takes the responsibility and thinks out of the box. The recognition of
social, cultural or environmental issues and achieving a change in the development of society,
with the help of entrepreneurial principles, like start-up companies and any other
entrepreneurial organisations, is called social entrepreneurship. Societal problems such as
employment for necessary individuals, land filling issue and deforestation, must be solved
through social entrepreneurship.
LO2 Impact of small business on economy
Relevant data and statistics on the economy (P3)
Small businesses are the businesses that have 100 or fewer employees. These businesses are
independently owned by the individuals. Small and micro businesses act as backbone to the
economies of many countries and play a lead role in developing those countries. According to
Dacin et al., (2011), at the start of 2018, there were more than 5.6 million small businesses,
which accounted for 99.3% of all private sector businesses. Most of the entrepreneurial

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ventures are the small business, which are established by running a franchise or buying it,
starting a new business, or buying an existing business. As the time passes, the small
businesses, while continuously gaining profits, may grow and achieve greater heights.
Figure 1: Percentage of business based on the employees
(Source: Research-lincs.org.uk, 2019)
The above figure illustrates the contribution of micro and small business in UK. Nearly 60%
of the private sector employees, which accounts for 16.3 million, were employed in SMEs.
The combined turnover of these businesses was nearly £2.0 trillion, annually. As opined by
Cowling et al., (2015), the business density, businesses owned per person, is high in southern
England as compared to other areas of UK. Most of the SMEs operate in the construction
sector, i.e. nearly one fifth of all SMEs. There was a certainty and continuity in growth in the
business population, but in the recent years, a fall of nearly 27,000 businesses has been noted
between 2017 and 2018.
Impact of medium sized, large and SMEs on local economy
SMEs do not get a great attention as compared to large companies, but these accounts for
most of the contribution towards the economy. Medium and small businesses collectively
make a big impact on the local economy. As reflected by Rocha (2012), small businesses
provide financial independence, encourage innovation to create employment opportunities
and contribute towards the nation. SMEs contribute over 47% of the revenue to the UK
economy. SMEs need support of investors to expand their business and increase their impact.
Large businesses are significant and play a key role in the overall economy of a nation. The
amount of financial resources to conduct research and develop new goods, are more in large

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business as compared to other businesses (Baum et al., 2014). Large businesses provide more
employment, higher wages and other benefits, which helps in building the economy of a
nation.
Small businesses and small start-ups for the growth of social economy (P4)
Most of the businesses are started as an idea of an individual. The individual is called as
entrepreneur, who turns the market in favour of the organisation. There are three major
sectors in the economy of any country: Public Sector, Private Sector and Social Sector.
According to Soininen et al., (2012), public sector is for the governmental organisations,
which provides services and goods to the consumers without any intention to gain profit.
Private sector is established by individual to gain high profits for themselves or the owners of
the organisation. Not-for-profit or the Social sector are based on cooperative, they are
established for the betterment of the society and not for any kind of profit or gain from the
society.
Figure 2: Contribution of SMEs towards EU budget
(Source: Market-inspector.co.uk, 2019)
The above figure describes the contribution of SMEs towards the development of social
economy. The branch of economics that focuses on the connection between social and
economic behaviour and examines the social philosophies that influence the consumers to
shape the economy, is social economy. As reflected by Consoli (2012), social enterprise or
social economy organisation are the organisations for social purpose. These organisations
frequently gain investment from the society and permission for their business activities. The
organisations under social economy consist of voluntary organisations, cooperatives, mutual

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societies and social enterprises. Most of the social economy organisations plainly deliver
their services. Social enterprise must have clear goal and generate most of their income
through trade (Baum et al., 2014). The majority of the profit earned by social enterprise is
reinvested for the betterment of the society. These organisations need to be fully transparent
and accountable.
The organisations in UK are fully committed to Corporate Social responsibility (CSR), i.e. is
the ethical and sustainable business practises. Social responsibility makes aware the
individuals of their duties towards the environment and the society. When social
responsibility is applied to the business sectors, it is known as corporate social responsibility.
CSR makes the organisation accountable to its stakeholders, itself and the public. According
to Cheng et al., (2014), the engagement of an organisation in CSR reflects the image of that
organisation towards the enhancement of society and environment. CSR offers many benefits
to the business such as increase employee loyalty maintain a positive reputation and prevent
financial ramifications. Promoting CSR will enhance the business activities and help to gain a
sustainable environment.
Small economy enterprises play significant role towards the building of social economy. The
needs that are not managed by the private and public sectors are managed by SMEs. These
non-profit enterprises compete with the organisations, which try to gain high profit in the
market. As opined by Baum et al., (2014), the trend of market bend over increased
production and privatisation of government services, social economy with such background
will emerge as a building economy for the nation in future. The size of SMEs can be small,
medium or large, but most of the SMEs are relatively small. The relationship between society
and environment as emphasised by ISO (International Organisation for Standardisation) is a
critical factor to operate effectively. Most of the time, services are delivered by social
economy organisations just only to fulfil the demands of their members or to the people,
whom they serve for, without the proper use of market (Consoli, 2012). On the other hand,
social enterprises are engaged in activities that benefit their members or the people they
serve.
LO3 Key aspects of an entrepreneurial mindset
Characteristic traits and skills of successful entrepreneurs (P5)
Personal characteristics or personal qualities are the necessary things to build a personality.
Qualities such as dependability, honesty flexibility, assertiveness etc are some of the personal

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characteristics. On the other hand, skill is the capacity to perform a particular task with a
given amount of time and energy. According to Dacin et al., (2011), communication, time
management, decision making, conflict resolution are some of the skills that an entrepreneur
must possess. Personal characteristics of successful entrepreneurs include Need for
achievement where Successful entrepreneurs always possess this characteristic. He is always
hungry for achievement and stays focused. As the entrepreneur gains more achievement, his
skills and characteristics also develop. In case of Self-confidence, this characteristic helps the
entrepreneur to give their best towards any business and achieve the best out of it. It makes an
individual to believe in himself. Towards Openness to change, as opined by Dees (2017), a
successful entrepreneur is always flexible to change as many obstacles come in the path and
he needs to overcome those obstacles. For remaining highly motivated, a successful
entrepreneur is role model for his society and organisation, so he must not show lack of
motivation and dedication towards his work or it may lead to de-motivating the employees
too.
The skills that make an individual a successful entrepreneur include Communication skills
where an entrepreneur wants to expand his business and gain popularity, so communication
skills are very important for an entrepreneur. Effective communication skill helps to transfer
ideas quickly and clearly. In case of decision-making skills, as per the opinion of Consoli
(2012), a successful entrepreneur needs not to stick in between of an operation for a long
time. He should make the right choice at the right situation and gain an effective solution.
Towards business Skills, conditions may occur, when entrepreneur has to deliver the services,
so he must have efficient business skills and be aware of market strategies to deliver the
products (Dees, 2017). Finally, in case of technical Skills, along with business skills, an
entrepreneur must possess technical skills that may help him to get out of any situation and
enhance the decision-making skill.
Entrepreneurial personality reflect entrepreneurial motivation and mindset (P6)
According to Epifanova et al., (2015), mindset is the assumptions held by an individual or a
group and sticks to it. The general attitude or the state of mind of an individual towards a
particular subject is called mindset. Entrepreneurial mindsets as such of Richard Branson and
Jamsetji Tata were focused. All successful entrepreneurs believe that they can achieve their
idea and works on it. For being an entrepreneur, one’s mindset must be full of positive
thoughts and positive action. Positivity creates energy around us and makes the surrounding
feel better. From the opinion of Dacin et al., (2011), positive mindset of entrepreneur helps

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the employees to stay motivated. The successful entrepreneurs make their mindset not to miss
a single opportunity for growth. They are always ready to take responsibility and move
further. These mindsets help an individual to become a successful entrepreneur.
An idea, on which the entrepreneur works is based on situational factors, he has faced in his
journey. As reflected by Ahlstrom and Ding (2014), these factors continuously motivate the
entrepreneur and acts as a backbone. Many entrepreneurs have faced unemployment when
the conditions were not favourable and a need of job was very important. Second situational
factor is the limited or no access to resources. Due to lack of proper knowledge and high
price of the resources, they are no available to the individuals. Every individual has some
commitments towards his family and various restrictions are imposed on the individuals,
which acts as situational factor. Entrepreneurial education cannot be accessed by all the
individuals, due to the limited resources and family commitments (Epifanova et al., 2015).
All these situational factors, directly or indirectly helps the individual in his journey to
become a successful entrepreneur. Entrepreneurs such as Jack Welch and Richard Branson
were not born as to rule the corporate world but they had the situational factors, which made
them suffer and develop various skills. These skills helped them to be a successful
entrepreneur.
LO4 Different environments foster or hinder entrepreneurship
Background experience to foster entrepreneurship with examples (P7)
Experience and background may affect the hinder of entrepreneurship. Successful
entrepreneur is the driver and leader of entrepreneurship. It means that challenging the
entrepreneur drive through a method of dynamic, which may take the benefits of economic
system. In the business world, entrepreneurship requires a flexible market of labour to attain
the organisational objectives and values (Burns, 2016). Richard Branson has attained a
variety of leadership skills, which has made him famous and successful. The vibrant qualities
and skills that Branson’s personality gives successfully towards his felicity and success.
Believer of Mentorship – In the process of entrepreneurship, nobody is born with an innate
understanding of life and things that are associated with life. He always believed that we all
require a proper direction in life towards live successfully and move ahead. Branson
emphatically believes within the method of mentorship (Henrekson and Sanandaji, 2014).
Believes in innovation- The owner of Virgin Company, Branson was abided with the
innovative skills to bring the innovative outcomes for the company. He generally submerged

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himself within new venture for first few months, and then he backed and kept in touch every
month to understand the organisation condition (Ahlstrom and Ding, 2014). The only
exemption towards this was Virgin Atlantic Airways.
Not believe in comfort zone- The major reason behind his achievement as he has constantly
enlarging his comfort zone and learned new thing. He took enormous risk while he has
founded the Virgin Atlantic. He has entered as direct competitor towards the British Airways
and it was the vital move that likely developed Branson feels quite uncertain. In early days,
the company has experienced great economical losses, but the Virgin group went to become a
venerated brand in the market (Blackburn et al., 2013). The minor decisions of life may be
developed in haste but talking about the main decisions, Branson always like to provide
adequate time towards each critical decision that he takes.
Adopt the learning process- The learning process is permanent and there is no expiry date
towards it (Ahlstrom. and Ding, 2014). Lessons may be taken from either mistakes and
experiences or books. Branson did not fear failures or the mistakes as he has deemed it as a
significant thing to learn in his life. He devoted his time towards reading as voracious learner.
Build a strong team and delegate effectively- It is essential towards the success of any
business, which entrepreneurs learn to hand off those things, which they are not capable to do
well. He always believes in the team performance (Shukla and Shukla, 2014). For his
company, he has developed an effective team as they were deliberately done any work for the
company. They have excellent communication skills. Branson thinks that the process of
communication facilitates human to collect with the world and enables them to grow, learn
and progress in their life.
The experience of entrepreneur is important for the growth and survival of new business.
They have to gather the information for the promotion of their existing SMEs (Sahut and
Peris-Ortiz, 2014). The characters of a successful entrepreneur are to continue the process of
learning and acquire knowledge through their life.
There is a connection among the entrepreneur characters and his personal background. To
develop any SMEs, entrepreneur must be goal-oriented. They are all about to set the targets
and place their efforts to attain those targets. In case of development and growth, they should
be determined to develop their business in a way that they would easily attain the success
(Epifanova et al., 2015). They would also reduce the embrace objects that may be harmful
for their successful story. Like Branson, entrepreneurs are not defeated in their successful