Entrepreneurial Ventures, Economy Impact, and Success Traits: A Report

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Entrepreneurship and Small Business Management
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Table of Contents
Introduction................................................................................................................................3
LO1............................................................................................................................................4
Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship.....................................................................................................4
LO2............................................................................................................................................8
Interpret and assess relevant data and statistics to illustrate how micro and small business
impact on the economy..............................................................................................................8
LO3..........................................................................................................................................10
Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers.........................................................................................10
LO 4.........................................................................................................................................13
Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship.......................................................................................................................13
Conclusion................................................................................................................................16
Reference List..........................................................................................................................17
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Introduction
Entrepreneurship is defined as activity started by an individual to start new business in
already established market or new market, considering all financial risk and gain through its
business. In this context, a concept has been introduced for starting an enterprise and for this,
business topology is explained. An entrepreneur gain knowledge and develops skill then
transforms that skill into product and services. In an entrepreneurship, owner enhances the
valuation of product toward customer by providing better services to customer. In this
discussion, importance of small-scale enterprise on economy of nation has been evaluated. In
the last section of this discussion, evaluate the experience of entrepreneur that would align
with entrepreneurship.
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LO1
Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship.
Different types of entrepreneurial ventures are discussed here. Entrepreneurial ventures are
those organisations, which provide opportunity to customer for accessing facilities of services
and product developed by the organisations. This entrepreneurial venture influences the
perception of people toward product and services and effect economy of nation. Some
common ventures are discussed below:
Lifestyle Venture: This venture provides freedom and control to its owner to conduct its
business. These are small companies and owner has full right to govern the business
according to owner’s choice. In lifestyle venture, time for meeting can be scheduled as per
the comfort of owner. There is no fixed attire in order to attend business meeting in this
venture. Main objective behind starting the lifestyle venture is to gain certain level of source
of income. Thus, owner led enjoyable life with this income. Owner does not have any motive
to provide services to people to influence the society and its economy. The driving factor for
conduct the business is personal interest that transforms the business activity into profit
(Neumeyer and Santos, 2018).
Small Profit Venture: The small profit venture has very less area in terms of its office.
Owner has motive to gain a decent life by conducting business in small profit venture. In this
venture, growth opportunities are very less. Therefore, these types of firms are making very
low profit from its business. These enterprises are conducting businesses by certain rules,
regulation therefore, fixed timing, attire, and hours are followed here.
High Growth Venture: The motive of these ventures is to make profits in their business and
expand its infrastructure. Owner of this venture would concentrate on growth of its business.
High Growth Venture has many investors those are participating in venture’s market share
(Yamakawa et al., 2015). These enterprises are those whose business is not confined to single
product or services. These ventures incorporate new feature in its product to attract more
customer in order to increase consumption of product.
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Various kinds of topology for entrepreneurship are discussed below:
Entrepreneurship in Small Business: In this entrepreneurship, a sole owner sets up and starts
these enterprises. In this enterprise, owner recruit candidate from its own locality or from its
relatives. Sole proprietorship, partnership are some of the examples of small business
entrepreneurship. These kinds of entrepreneur conduct business for enhancing their living
standard; therefore, making profit in a long run is not a goal for its business. These
enterprises does not comprise investor due to its business features, therefore, it draws its
capital from relative or take loan from financial institute. Small profit venture and lifestyle
venture are example of small business entrepreneurship.
Start-up scalable Entrepreneurship: Owner knows that their business objectives would
influence the market and society of nation (Wallin et al., 2016). Before starting the enterprise,
owner knows how to start their business and what kind of response enterprise would get from
its customer. Mark Cuban’s 12 rules have mentioned the steps to scale business for start-up.
The rules tell that owner should not start enterprise unless owner has interest in that business.
Owner should hire those candidates those are suitable for environment for its business
environment. Cuban rule tells that enterprise can achieve its business goal instead of weak
management if their sales figures are good. Recognition of core competencies and value them
with high salary so that they can perform well. According to Cuban, enterprise must spend
some money to provide employee some extra benefits such as snacks and drinks. Cuban said
that owner should use that technology which owner knows to use. Cuban is against of hiring
PR firm in order to start new enterprise; therefore paying PR firm is waste of money.
Entrepreneurship of Large Company: In this entrepreneurship, organisation has already
established market and business process is being conducted aggressively. The organisation
launches products with some modification by incorporating some new features in the product.
In the context of Wang et al., (2018), the innovative idea is main key source for development
of enterprise’s business. Public sector and private sector comes under this entrepreneurship.
Large entrepreneurship conducts its business after analysing the taste and interest of customer
toward the services and product. High growth venture belongs to large entrepreneurship
topology whose motive is to expand the business.
Social Entrepreneurship: Social entrepreneur has Nobel goal to conduct its business to serve
people and has financial capability to resolve the social issue. This kind of enterprise is also
known as non-profit organisation. Therefore, social entrepreneurship first priority is to
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conduct business so that people get benefit from its business. Gaining financial capital is not
their main motive and these enterprises consider financial capital as a source to conduct their
business (Rawhouser et al., 2019). Educational institute, orphanage and other NGO comes
under the category of social entrepreneurship.
Evaluate the differences and similarities with different entrepreneurial ventures
There are many similar approaches that are common among different entrepreneurial
ventures are as followed:
 First common approach that is found among different ventures is motive that drives
them to conduct their business.
 All venture hire employees for assistance purpose in their respective offices.
 All ventures use the available resources and aspect a return in the form of positive
response of customer.
 All ventures conduct analysis of market before launching any product in a market.
 All ventures have vision when it starts business regardless of short-term or long-term
vision.
 Before launching any specific product or services, all ventures make strategy so that
venture can resolve any issue happens while conducting its business.
There are certain criteria which differentiate one venture from another. Below all these
factors create differences among the ventures are mentioned in tabular form:
Features Entrepreneursh
ip for small
business
Entrepreneurs
hip for Startup
Scalable
business
Entrepreneursh
ip for large
enterprises
Social
Entrepreneursh
ip
Roles This
entrepreneur
earn money to
serve the local
people on to
fulfill their daily
basis
. This enterprise
start their
business with
new product in
order to bring
new perception
about the
services to
Large
enterprises
extend their
business by
launching new
product in a
market or
incorporate new
Social
Enterprise has
one role that is
increase their
financial asset to
help people
efficiently
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customer feature in
existing product
Business
Objectives
The main
objective of
small enterprise
is to fulfill daily
need
Setting up new
business with
new product in
order to bring
change in
industry
The main
objective of
these enterprises
are to make
profit and draw
more customer
as much as
possible
The main
objective is to
serve people
Characteristi
cs
. Business size is
very small and
number of
employee is very
less
.This kind of
venture has
certain plan and
few employee to
implement that
plan
.These
enterprises are
comprising of
large
infrastructure
and large
number of
employees
These enterprise
conduct business
for welfare of
society and large
number of
people are
associated to
such enterprises
Table1: Differentiation among the entrepreneurial ventures
(Source: Created by learner)
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LO2
Interpret and assess relevant data and statistics to illustrate how micro and small
business impact on the economy
Small businesses are easy to start, as it requires less capital and employees. In the context of
Loader, (2018), the UK economy is stabilised due to small enterprises as it impact positively
on national economy. Small enterprise provides loyalty in customer service to citizen of UK.
Around £25 to £500 million, annual turnover of UK market comes from small industry. Small
enterprises are backbone of UK economy that provides job to young people, develop an
opportunity to start new enterprise and enhance the growth of economy. Apart from
development of economy, small businesses are maintaining the standard measure that is
followed in business (Dey et al., 2019). Consequently, this approach to follows measure
enhances small enterprise’s potentiality to conduct the business. Ultimately, these approaches
of small industry in UK influences the economy mentioned below:
Turnover: Turnover is considered to be one of most standard metrics used in the
measurement of contribution of small business in UK economy. It was measured £1.6 trillion
combined turnover of small and micro businesses of UK in the year 2014. This amount of
turnover increases gradually with respect to time. This statistic is calculated as 47% of total
turnover of UK industry. Thus, statistic is nearly 50% of total turnover of private companies
of UK and shows the influence of small business in UK.
GDP Growth: In order to measure the economic status of any nation, GDP is standard
measurement. Small and micro businesses in UK are responsible for growth in UK GDP.
Large organisation is witnessed failed to improve the GDP growth of economy in UK but
small-scale enterprise became able to make profit and accelerate the economic growth.
Employment Opportunity: Small and micro business are more in quantity in the UK in
compare to large enterprise. Therefore, most of UK citizen are associated with small
enterprise and work in their firm (Peck et al., 2018). In this way, small enterprises provide
employment to the UK peoples. According to statistic of employment rate on annual basis,
every year around 24.3 million people are employed by small business in UK. Thus, it is 60%
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of total employment provided by whole private sector of UK on an annual basis. In this way,
small enterprises are helping UK government in reducing poverty in their nation.
Tax Advantages: There are some corporate rules in UK that helps government to get
advantage in collecting tax from the small-scale industry (Rose and Karran, 2018).
Consumer chose to use local products and services and in return, customer pays back to local
community. In the context of small businesses, the revenue generation is higher as their profit
is high due to more product consumption. Thus, company pays increased tax to UK
government along with property tax. UK government earn lot of fund from small business, as
there are more number of small enterprises in UK. UK government can use this fund in the
development of nation.
Growth: An innovation happened in industry of UK that motivated people of UK start their
own business. Therefore, in some recent years, small business and micro businesses has
increased tremendously (Aydalot and Keeble, 2018). Most of the small enterprises are
successful in their business because they use innovative idea to conduct their business. The
economy of UK is being stabilised due to innovation facilitated by these enterprises of UK.
Explain the importance of small businesses and business starts-ups to the growth of the
social economy.
Start-up businesses help the nation to develop its society from many aspects. Micro and small
business plays a vital role in enhancing the growth of social economy of UK. Small
enterprises of UK are recognised as an element that identified the needs of citizen of UK in
terms of product and services as well as employment (Eesley and Miller, 2018). Small firms
in United Kingdom employ most of the people and those people are getting strong
economically due to earning wages.
Most important benefit in the corporate world of UK is that small ventures are becoming
helpful for the business of large enterprise. In order to launch new product in a market, large
organisation take venture capital from different small enterprises (Coulibaly et al., 2018).
Thus, small venture’s investment help large organisation to conduct its business efficiently
and provide best service to customer of UK.
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LO3
Determine the characteristic traits and skills of successful entrepreneurs that
differentiate them from other business managers
Leader or manager with unique character trait and high skill separate them from other
managers of organisation. There are many examples of leaders with unique character trait
such as Mark Zuckerberg, Jeff Bezos and Bill Gates those have set example of strong
leadership in their organisation. Leader with unique character traits are ready to take risk in
decision making for achieving the business goal. These leaders think innovatively and
implement creative idea in the existing business process of organisation. In the context of
Miller, (2016), the characteristic traits defined the efficiency of a leader and this differentiates
the working procedure of leader from other manager.
Different characteristic traits are explained below:
Communication: The communication is very important factor that needs clarity among the
employees and managers of an organisation. Thus, entrepreneur should communicate in a
proper way that right information should reach to each employee effectively in an
organisation. An effective communication would clear the purpose of task and it helps to
generate idea regarding the job employee is doing (Leitch and Volery, 2017). Leader helps
entrepreneur to distribute the information which entrepreneur wants to inform other
employees of its organisation. In this way, skilled communication helps the leader to make
employee run behind the business goal. Thus, communication is very important elements in
characteristic trait of leader that plays vital role in managing the team.
Interpersonal and teamwork skill: An efficient entrepreneur knows the value of employee in
an organisation. Entrepreneur understands about the fact that it would be difficult to handle
business process without efficient participation of employee in an organisation. Therefore,
managers and team leaders give priority to teamwork in enterprise (Okoro et al., 2017).
Interpersonal skills of a manager decide the characteristic and potential of manager in terms
of management and team handling. Manager measure the working quality of employee and
interpersonal skill develop that perception to analyse the working process of an employee.
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Teamwork skill and interpersonal skill are two factors linked to each other in the context of
managing a team. An entrepreneur analyse the performance of whole team and based on that
decide the level of teamwork. Conflict management, reliability in working process and good
listening capability of leader are few important elements that define teamwork skill. In order
to enhance the teamwork skill, leader first understands the issue faced by employee regarding
the job. This issue results into a conflict among the employees if it is not resolved at prior
stage. Therefore, it becomes responsibility of leader or manager to track employee behaviour
with other employees in a team.
Motivation and Passion: A successful entrepreneur is motivated and enthusiastic individual
who is passionate about achieving the business goal. This entrepreneur has passion to face the
problem or hurdle while conducting its business and keep their innovative idea in front of
management to resolve the issue happens in business process. Therefore, this attribute helps
organisation to achieve their business goal (Cardon and Kirk, 2015). This entrepreneur work
consistently to bring change in perception of customer toward the services and product in a
market. In this way, a change comes in the society that these successful entrepreneurs bring
in order to gain achievement. This phenomenon happens at the global scale and other
enterprises tries to implement business strategy used by successful entrepreneur.
Risk Taking Ability: All successful entrepreneurs are naturally takes risk in order to find out
the loopholes in their business process. These entrepreneurs invest money to find out flaw in
the decisions made for development of business (Koe, 2016). This entrepreneur uses their
innovative idea and creativity to think from all aspect in order to find out any flaw remains in
business strategy. The best example of risk taking entrepreneur was Benjamin Franklin who
brought bifocal and lightening rod concept. Benjamin was not sure whether people would
appreciate his product or not.
Managing and Planning: Planning is one of the important skills of an entrepreneur that
helps them to analyse any decision taken by management before its implementation.
Therefore, entrepreneur plans aggressively based on the decision taken for conducting the
business. Similarly, organisation hire candidate for its organisation after lot of evaluation of
candidate in interview to understand candidate skill and capability (Bacigalupo et al., 2017).
Entrepreneur understands the need of talented candidate that would help organisation to
achieve its goal. Entrepreneur enhances the potential of employee by providing them training.
Beside this, a successful entrepreneur applies some techniques to motivate employee so that
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employ retain in organisation for long time and attrition rate decreases. An efficient
entrepreneur does not get de-motivate with failure and their resilience make them different
from other entrepreneurs.
Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mindset.
An entrepreneur is an individual who help to develop the community, society and people with
their services and products. Therefore, many researchers have conducted research on the
influence happened due to entrepreneurship in the development of society and nation. The
developed entrepreneurial personality comes from educational and financial background of
entrepreneur (Davis et al., 2016). Family and culture are also responsible for making
characters of an entrepreneur. These two elements are forming the values in the entrepreneur
because of which he or she conduct business with ethics. Financial elements such as loan and
tax benefits motivate an individual to start an enterprise. From the perspective of
development of economy, the entrepreneurship plays a huge role to develop economy. UK is
witnessed to be a strong economy due to entrepreneurship of small enterprises.
Entrepreneurial mindset forms of an individual due to market condition of a nation and types
of business opportunity an individual wants to exploit. For starting an enterprise, an
individual need to have analytical skill to identify the opportunity and threats in a market
regarding the business that individual wants to run. There are some elements exist in a nation
that is responsible for building the entrepreneurial mindsets are mentioned below:
 market which is not static in terms of finance
 friendly rules for business
 Skilled workforce
 Well structured tax system
Though skilled workforce is not totally depends on nation but organisation somewhat
responsible for hiring skilled workforce.
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