Exploring Entrepreneurial Ventures and Their Economic Impact in the UK

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Entrepre
neurship
and
Small
Business
Manage
ment
1

Table of Contents
Introduction:..........................................................................................................................................3
LO1: Explore and illustrate the range of venture types that might be considered entrepreneurial......4
P1: Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship............................................................................................................4
P2: Explore the similarities and differences between entrepreneurial ventures...............................7
LO2: Assess the impact of small business on the economy.................................................................11
P3. Interpret and assess relevant data and statistics to illustrate how micro and small business
impact on the economy...................................................................................................................11
P4. Explain the importance of small businesses and business starts-ups to the growth of social
economy..........................................................................................................................................13
LO3: Determine and assess the key aspects of an entrepreneurial mind-set......................................15
P5 Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers...............................................................................................15
P6. Assess how aspects of the entrepreneurial aspects personality reflect entrepreneurial
motivation and mind-set.................................................................................................................17
LO4 Examine the different environments that foster or hinder entrepreneurship.............................20
P7 Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship.............................................................................................................................20
Conclusion:..........................................................................................................................................22
Recommendations:..............................................................................................................................22
References:..........................................................................................................................................23
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Introduction
Entrepreneurs as well as entrepreneurship are the essence of today’s competitive
world and business requirements. Entrepreneurs takes the risks and create as well
as manage new business venture so as to add value to society by providing them
with innovative and improved services and products to satisfy their needs and
requirements. The following assignment is based on the entrepreneurship and small
business management. It has been prepared in order to provide advice to client that
whether or not he should start a business in London. In the following assignment, we
have focused on various types of entrepreneurial ventures and entrepreneurship
typology. We will also focus on the importance and significance of the small
businesses and business start-ups for the growth and development of national as
well as social economy. In addition this, the following assignment will discuss the
entrepreneurial mind-set and characteristics and also whether the entrepreneurship
gets hindered or foster by past life experiences and background.
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LO1: Explore and illustrate the range of venture types that might be
considered entrepreneurial.
P1: Examine different types of entrepreneurial ventures and explain how they
relate to the typology of entrepreneurship.
Introduction: The following answer will clearly focus on understanding the various
types of entrepreneurial ventures as well as the relation between ventures and
entrepreneurship typology. We will also understand what it mean to be an
entrepreneur and what entrepreneurship actually means.
Entrepreneur: Anyone starting the new business after undoing several risks so as to
create something that is unique and innovative is referred to as the entrepreneur. He
is the one responsible for creating as well as managing the whole new business on
his own and therefore is the one controlling the various business activities (Kirzner,
2015).
Entrepreneurship: Entrepreneurship may be defined as the process by means of
which an individual assumes the risk of undergoing a new venture so as to make
innovative and useful products for the society (Burns, 2013).
Different Types of Entrepreneurial Ventures
Small Business Entrepreneurship: Small Business entrepreneurships are
generally small businesses that mainly operate with the sole objective of earning the
livelihood as well as the bread for the family (Carter & Evans, 2012). They generally
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have the single owners. Examples of small business entrepreneurships includes
electricians, plumbers etc.
Scalable Start-up Entrepreneurship: Scalable Start-ups are generally medium
scale businesses which operate with the main objective of bringing change in the
society means of introducing innovation and creativity (Kirzner, 2015). They operate
to make profits and therefore only skilled employees are hired by such enterprises.
Large Company Entrepreneurship: Large company entrepreneurships refer to
large businesses that usually run their operations in order to produce products and
services that are entirely new and innovative. In order to produce innovative
products, these enterprises make use of creativity as well as innovative ideas.
Social Business Entrepreneurship: Social Entrepreneurship refers to the kind of
entrepreneurship that exists so as to spread welfare and look after the needs of the
society (Kirzner, 2015). Their main focus remains on social problems and hence they
work for providing solutions to those.
Typology of Entrepreneurship:
 Corporate Entrepreneurship: Most of the large business entrepreneurships fall
in the category of corporate entrepreneurship (Baum, et. al., 2014). These kinds
of businesses thrive for innovation as well as creativity so as to remain existent in
the society and remain competitive in the market at the same time. These are risk
taking businesses that invests mainly in the creation of new products and
services.
For example: Apple is a perfect example of corporate entrepreneurship. The
working culture as well as the environment at Apple supports innovations as well
as creative and innovative ideas of their employees and this makes it capable of
being existent in times of success as well as failures. The company consistently
provides new products as well as innovative services to its customers (Carter &
Evans, 2012).
Private/Individual Entrepreneurship: Individual entrepreneurship refers to the
entrepreneurship activities taking place within small and medium size
organisations which are generally owned by private owners. Therefore, it can be
said that all the small as well as medium scale organisations fall into this category
of entrepreneurship. They are the main source of employment opportunities for
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the local workforce of the country and hence are considered vital as well as
important part of country’s national economy (Carter & Evans, 2012).
For example: Plumbers, electricians etc. are small businesses falling in the
category of individual entrepreneurship.
 Intrapreneurship: Intrapreneurship refers to yet another category of
entrepreneurship that generally exists within the large organisations. The person
responsible for intrapreneurship is generally the managers of these organisations
who motivate staff to innovate new things by making use of their creativity.
 Public Sector Entrepreneurship: Public Sector entrepreneurship refers to the
entrepreneurship activities that generally take place within the government
controlled organisations so as to provide products and services for the people of
the country (Baum, et. al., 2014). The main capital for the business activities is
provided by the state or central government.
For example: NHS is a public sector entrepreneurship that aims to provide
improved and effective healthcare and health services to the people of UK.
 Academic Entrepreneurship: The entrepreneurship activities usually practised
by academic institutions so as to provide society with better and improved
processes and academic systems is referred to as academic entrepreneurship
(Schumpeter, et. al., 2012).
Conclusion:
Hence, we can say that the process through which an entrepreneur creates and
manages a new business is entrepreneurship. The various types of entrepreneurial
ventures as well as the typology of entrepreneurship has been discussed in detail in
the above answer.
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P2: Explore the similarities and differences between entrepreneurial ventures
Introduction: In the following answer we are going to discuss the differences as well
as various differences between different types of entrepreneurial ventures based on
objectives, purpose, their success criteria and risk involved.
Social Entrepreneurship: The entrepreneurship businesses that exist with the sole
objective of fulfilling the needs and requirements of society by providing new and
value products and services is called social entrepreneurship (Carter & Evans,
2012).
Managerial Entrepreneurship (Intrapreneurship): These are carried out mainly by
large corporation’s managers so as to bring innovation and creativity by motivating
employees (Baum, et. al., 2014).
Entrepreneurshi
p
Business Purpose Goal Capital
Provider/
Risk
Success
Outcomes
Small Business Small Business
entrepreneurships
have the main
objective of earning
livelihood and bread
for family members.
Their primary
goal is to make
business profit
making by
passing on the
business to
next
Either they
take loans
from banks or
funds are
provided by
own. Risk
involved is
They are
essential as they
fulfil the daily
requirements of
the people.
Example:
Plumber,
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generations. small. electrician.
Lifestyle Firms The
entrepreneurship
business that suits
the needs and
desires of the
owner’s lifestyle is
lifestyle
entrepreneurship
(Carter & Evans,
2012).
To make large
profits by
utilising self-
interests and
passion.
Risk involved
is high.
Capital is
mainly
provided by
investors.
They are mainly
small firms which
provide products
and services that
are essential for
the society.
Social They operate so as
to fulfil the needs of
the society.
Their primary
goal is to leave
an impact by
their doings.
The size of
the firm
decides their
capital
provider.
They make world
a better place for
living by providing
their services.
Large Firms Large business
entrepreneurship
are the firms that
usually have large
number of
employees.
Their primary
goal is to
achieve
success and
make large
profits for
business.
Through Tax
Credits and
risk is high
(Carter &
Evans, 2012).
Provides
employment
opportunities to
large number of
population and
hence are
essential.
Scalable or High
Growth Firms
They provide
innovative products
and services so as
to mark change in
the world.
They generally
acquire or
make joint
ventures with
other
companies so
as to make
huge capital.
Risk involved
is nominal
and capital is
provided
through
banks.
They are
essential for
society as they
provide
employment
(Carter & Evans,
2012).
Conclusion:
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Thus, we can say that social entrepreneurship improves the way of living of society
while managerial entrepreneurship focuses on innovation and creativity through
company’s managers so as to provide unique products and services. We have
discussed the differences and similarities between different entrepreneurial ventures.
M1:
The entrepreneurial ventures are varied in range and there exists various different
kinds of entrepreneurial ventures as discussed. The type of the entrepreneurial
venture depends on the purpose, objective, investment required for the business.
However, these can be classified as below:
Start-up entrepreneurship: Start-up entrepreneurship is the name given to usually
young and new companies that have just started to develop and grow so as to
provide products and services which according to them are in demand (Burns,
2013). Their entrepreneurial founders are the main capital providers.
Joint venture entrepreneurship: Joint venture entrepreneurship takes place when
two entrepreneurs together join hands so as to form a new enterprise by sharing
risks as well as responsibilities associated with it.
Franchise entrepreneurship: Franchise entrepreneurship refers to the business
that is owned by an entrepreneur so as to provide products and services of other
business corporation which provides assistance to their business in exchange for
fixed amount (Kirzner, 2015).
Acquisition entrepreneurship: Not all entrepreneurs start their own new ventures.
Some use their creativity and innovative ideas by acquiring someone else’s company
and carrying out the business operations by making use of self-innovative and
creative thoughts (Kirzner, 2015).However, a successful entrepreneurship through
acquisition is one that assess all the advantages as well as disadvantages before
finally acquiring a company.
Public private partnerships entrepreneurship: Public Private partnerships usually
refers to the collaboration activities between government agencies and private
corporations so as to provide fund support for aspiring entrepreneurs and small scale
businesses (Burns, 2013).
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D1:
For the economic development as well as for the development of the social
economy, the entrepreneurial ventures are of great importance. As per the current
situation in UK, the national economy is facing the unemployment issue as well as
recession. Therefore, in order to deal with the problem of recession, the existence of
entrepreneurial ventures is important. Hence, their scope and growth is increasing in
UK as most of the young population of UK has more interest in starting their own
venture and start something that is completely owned by them. More and more
people in UK are making investments in new firms and hence the scope of
entrepreneurship is increasing in UK (Hardoon, 2015).
The increasing scope is also because of the increasing demand for new and
technology based innovative products that are mainly provided by entrepreneurial
ventures and hence their presence is essential for fulfilling the increasing needs as
well as demands of the society.
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LO2: Assess the impact of small business on the economy.
P3. Interpret and assess relevant data and statistics to illustrate how micro
and small business impact on the economy.
Introduction: In the following answer, we will mainly focus on the relevance of the
small as well as the micro businesses for the development of the country’s national
economy. In order to do so, we will provide the necessary statistics.
Impact of the Small Businesses on the National Economy:
For the growth and development of the national economy, the existence of small as
well as micro businesses is of great importance. This is the reason why these
businesses are considered to the lifeline for the national economy of any country.
The small businesses and business start-ups are the major players in the UK’s
national economy and therefore in the year 2015-2017 it has been observed that the
government of UK encouraged small businesses and as a result approximately 3500
small business start-ups were reported in UK. They provide employment
opportunities to the major portion of UK’s workforce which can be estimated to be
around 60% of the total working workforce of UK. Also, they contribute significantly in
the economic development as well as economic growth of country by making large
profits and generating huge revenues. As per the reports, around 45% of the UK’s
annual turnover accounts for small businesses and medium businesses which is
approximately 2 billion pounds. They also contribute in the national economy by
generating revenues in the form of corporate taxes. Thus, small as well as micro
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businesses are essential for the national economy as they provide employment as
well as generate revenues for the economic growth (Myers, 2014).
Large organisations also contribute in the economic development of UK in addition to
small and micro businesses. Large organisations provide employment opportunities
on large scale and hence improve the disposable income of people of UK. Their
contribution to the national economy of UK cannot be underestimated (Storey, 2016).
(Source:
https://www.ons.gov.uk/economy/nationalaccounts/uksectoraccounts/articles/
economicreview/apr2017)
Conclusion:
Thus, as per the statistics, it can be said that for the growth and development of
national economy, the existence of small businesses as well as micro businesses is
critical for UK as they provide employment to large number of people and also
generates revenue on large scale.
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