Entrepreneurial Ventures and Typology: A Comprehensive Analysis

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Entrepreneurship and small business management

Contents
Introduction......................................................................................................................................2
LO1..................................................................................................................................................2
P1.................................................................................................................................................2
Different Type of entrepreneurial ventures and relationship with the typology of
entrepreneurship......................................................................................................................2
P2.................................................................................................................................................4
Lo2...................................................................................................................................................5
P3.................................................................................................................................................5
Impact of micro and small business on the economy..............................................................5
LO3..................................................................................................................................................7
P4.................................................................................................................................................7
Characteristics, skills and traits of successful entrepreneurs...................................................7
P6.................................................................................................................................................9
Aspects of entrepreneurial personality reflect entrepreneurial motivation and mindset.........9
LO4................................................................................................................................................10
P7...............................................................................................................................................10
Explanation of Background and experience that fostering entrepreneurship........................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12
1

Introduction
In today's world Entrepreneurship is driving the attention of the people towards forming their
own business. There are many entrepreneurs are coming into the market with new idea and
innovation technique (Kirzner, 2015). This assignment report will make a discussion on types of
entrepreneurial ventures and how they are relating to the typology of entrepreneurship along with
the similarity and difference exit within different entrepreneurial ventures. Another part of this
report will analyze the impact of small businesses on the economy by recognizing its local,
national and global level importance through specific facts and figures. In addition, the role
played by the small business and startups in the social economy will be discussed in that report.
Further, the assessment will be done on the important aspects of the entrepreneurial mindset by
analyzing their traits, characteristics and personality dimensions and also using the real examples
the influence of personal and background factors on entrepreneurship will get analyzed in that
brief assignment report.
2

LO1
P1
Different Type of entrepreneurial ventures and relationship with the typology of
entrepreneurship
Entrepreneurship
Entrepreneurship is termed as an act of doing a business in that the entrepreneurs who are an
individual or group of individual takes responsibility of the forming a business unit by using the
human, raw material, equipment and other financial resources and they also share all the risk and
reward of the business equally to gain some profit from conducting business activities. For that
purpose, they offer or sell some products and services to the public (Drucker, 2014).
Types of entrepreneurial ventures
There are many types of entrepreneurial ventures exist in the market which is established by the
entrepreneurs to earn some profit by providing their services to the world. Some types of
entrepreneurial ventures are as follows:
Startup business
This type of venture is newly started by a person or a group of people who wants to be successful
entrepreneurs in the future by gaining higher market share and profit. They start their business by
using sufficient resources and aims at making some profit from the business (Storey, 2016)
Acquisition
In the acquisition, a firm acquires a company which is less popular and emerge their resources
with them. They acquire the business unit to gain some profit by utilizing its resources and
abilities. They conduct all the business activities on behalf of the acquired company (Stam and
van, 2011).
Franchise
In that type of venture, owner of company sales some part and provides authority to another
individual to run his business. The owner sales brand and intellectual property to the other person
so that he can form his own business unit Franchise is beneficial for both franchisor and
franchisee (Aulet and Murray, 2013).
Joint ventures
3

In the joint ventures, two company joints together to form a single business entity. They equally
share governance, reward and risk of the business to gain higher market share, higher profit and
large customer base in the market (Allen, 2015).
Public and private sector partnership
In this kind of venture, the private and public sector organization sign a partnership deed together
to form a business unit. This type of venture is controlled by the government and private owners
to take advantages of government involvement (Aulet and Murray, 2013).
Relationship between the typology of entrepreneurship and entrepreneurial ventures
Individual entrepreneurship
In this typology, the owner of a business is a single person who design and conduct business
activities to generate some profit. Startup business can be owned by a single person who started
his business individually.
Corporate Entrepreneurship
This kind of entrepreneurship can be seen in existing ventures. The owners of acquisition, joint
ventures and franchisee apply this kind of typology in their entrepreneurship (Austin et al., 2012)
Public sector entrepreneurship
This kind of typology can be used by the public sector owners usually the government who
works for public benefit. The public and private sector partnership use this typology as the
government involvement is presented there (Burns, 2016).
4

P2
Similarities and differences between entrepreneurial ventures
Similarities
Entrepreneurial ventures provide their offerings to the market and most of the ventures aim at
profit making. All ventures give their contribution to the economic success and operated by an
individual or a group of individuals. Another similarity is that they aim at expanding and
growing there business through great innovation power. The entrepreneurs of these ventures use
their personal skills and knowledge to run the business venture in an effective manner. All
ventures require some resources and finance to operate a business function (Autio et al., 2014).
Differences
Area of differences Lifestyle business Small profit venture High growth venture
meaning This business setup is
done by the founders
of the business with
them of gaining
particular level
income
They owned and
operated by the
individual
independently to gain
small profit from the
business
This venture has
sufficient potential to
grow and expand its
operations with
innovation
aim A self-directed
business will help in
achieving long term
growth and profit
Grow into a profitable
and sustainable
business for the long
term
They aim at gaining
higher wealth for its
investors and owners
outcomes They offer qualitative
services and products
and generates income
for their owners
They are responsible
for generating tax and
employment
opportunity and also
offers products and
services in the market
(Schwienbacher and
Larralde, 2010)
They create a job in
higher value and also
gives their
contribution to the
economy by
increasing revenue
investors Funding through
friends, family and
personal fund
Government bank
loans, microloan and
self-funding
Venture capitalist and
government,
accelerators
Hence, the similarities and differences can be seen in the entrepreneurial ventures according to
the size, infrastructure, vision and mission, investors etc. some aspects of the ventures
differentiate them from each other and some aspects represent similarities between them.
5

Lo2
P3
Impact of micro and small business on the economy
Small and micro businesses are responsible for the economic success of a nation because they
are the backbone of today's economic system. They are giving their tremendous involvement in
the economic development of the world. Small and micro businesses are employing thousands of
people in their organisation and reducing employment rate along with this they are generating
higher revenue on per annum basis that is resulting in a higher turnover of the different nations
(Desai, 2011). In the developing countries of the world, small businesses created more than 32%
national income and 44% of all over employment. Today more than 94% of business enterprises
are considered small and micro businesses in the world and they are creating 60% of total private
sector jobs. The government is focusing on the development of small businesses (Storey, 2016).
In the UK alone the small business is contributing 47% turnover of total private sector turnover
and providing their huge support in economic growth. The turnover is reaching a total of approx.
£1.9 trillion. In 2016 more than 5.3 million of small businesses were accountable for 99.8% of
private sector business and they are employing almost 15.7 million people in their organisation.
In 2018 the government achieved 2.0 million annual turnovers from SME’s.
Roles of SME's on the economy
The small and medium business includes less than 250 employees and giving their incredible
contribution to economic growth and development. They are offering their products and services
for society and creating social value or social security for them. They are decreasing the
unemployment rate by providing employment opportunities (Ackermann, 2012)
6

Figure 1 impact of SME's on economy
Source: (Ackermann, 2012)
 In 2018 the small and medium businesses increased annual turnover by £2.0 trillion
 Almost 16.3 people received employment due to an expansion of SME’s
 Generating a higher record of employment rate
 The economic development of the country is responsible for the growth and expansion of
SME's and the small businesses are also accountable towards the economy of the nation
 Higher foreign exchange rate and tax is received by the government of the UK
 They are providing social support through creating jobs and social amenities
 Reduction in poverty and higher wealth can be achieved by the growth of the SME’s
 International trading advantages can be achieved by the small business owners by selling
their services at the global level (Burns, 2016).
The employee size of medium businesses is 50-250 employees and they are accountable for
creating more than 12% employment in the private sector and contributing more than 14% to the
GDP of the country. Large businesses are growing at very fast speed and giving their huge
contribution to the economy. In 2018 there are more than 7500 large businesses and more than
250 employees working In it and they are giving more than 40% offering in job creation along
with this they are generating 47% annual turnover
7

Figure 2 business population estimates 2018
Source: (gov.uk, 2018)
Importance of business start-ups in the social economy
Small business and start-ups have created adaptability, innovation and employment for the
society and that has increased the social economic growth of the country. According to the
statistics, the firm employment growth rate increased by 0.7% and a 10% increase in the share of
sales from newly developed products. Small businesses help in making the UK's economy more
competitive and attractive to their investors and visitors. Start-up organisations have employed
less than 10 employees at the initial stage now providing 33% contribution to employment.
Small businesses are bringing growth and creativity to the society they are serving. Small
businesses are also supporting the large business organisation by sourcing their resources and
helping them to operate their business functions (Michel and Rycx, 2011).
Hence, small businesses and start-ups are responsible for growing social economic condition by
creating employment, social security, innovation, creativity and economic growth of the country
(Szirmai et al., 2011).
8

LO3
P4
Characteristics, skills and traits of successful entrepreneurs
These include some attributes presented with the entrepreneur personalities which differentiate
them from other business managers. They have a specific set of skills, characteristics and traits
which is used by them in their entrepreneurial behaviour (Caliendo et al., 2014).
Characteristics and traits
Self-confidence
Successful entrepreneurs trust their abilities and knowledge. They always use a full proof
business plan and they remain confident in all circumstances. They boost their confidence
through their achievements (Brandstätter, 2011).
Need for achievement
They are always focused on the achievements they do not care about the losses they may suffer.
They are highly focused on the attainment of their goals and they put their all efforts and
resources to achieve their business goals effectively
Openness to change
They are flexible enough to adopt any changes arises in business. they accept the things as it is
and improve themselves to cope up with the changes. They adopt all negative or positive changes
efficiently (Brandstätter, 2011).
Competitive spirit
They always think themselves superior in comparison with their competitors. They always try to
generate a new idea to expand and grow their business which helps them achieving competitive
advantages.
Skills of successful entrepreneurs
Effective communication skills
Successful businessmen use proper and effective communication skills while interacting with
others. This helps them to make a good relationship with their stakeholders and creates a good
organisational image.
Decision-making skills
9

They use critical and logical thinking to take certain decision on any issue related to the business.
they always take quick and fast actions on the decision and never feel regret for their decisions.
Problem-solving skills
They seek help from their advisors in business problems but also applies their knowledge to
solve critical problems of the business.
Business and management skills
They perform their business functions effectively by coordinating and cooperating with their
employees. They are also focused towards planning, organising, leading and controlling of the
business functions.
Hence, these traits and skills possessed by the successful entrepreneurs in a more effective way
to achieve their business goals and they represent their entrepreneurial behaviour and quality.
10

P6
Aspects of entrepreneurial personality reflect entrepreneurial motivation and
mindset
Mindset is all about the habit of mind that is formed by the past experience of an individual.
Mindset can be termed as the deep belief; attitude and assumption about own self and the world.
A different aspect of entrepreneurial personality that reflects their motivation and mindset is
presented below (Zhao et al., 2010):
Positive thoughts
They apply positive feelings and positive thoughts in their work. They stay away from the
negativity. If any challenges arise for them they handle it with a positive attitude. They also use
positive behaviour toward others. They bound themselves with a positive environment. If anyone
makes a negative comment on their image they take it very lightly (Brandstätter, 2011).
Wanting more than money
They do not aim at earning money from the business. they want to build goodwill and brand
image of their business. They want to create self-identity among the world
Taking advantages from opportunities
They always look for opportunities to come in the business. They even take challenges as an
opportunity to grow and expand the business. They never miss an opportunity which can provide
success to them.
Motivation
They have higher motivational power and influence skills. They are a self-motivator and
motivate others to perform well. They encourage and motivate themselves to do their best to
achieve business goals (Ayobami and Olakitan, 2011).
Passionate and committed
They are highly passionate about their work. They do not miss a single chance to perform better
and also committed towards their work. They do not even care about their health and other
circumstances while working.
Great innovators
Successful entrepreneurs are highly focused on bringing innovation through the development of
new idea and technology.
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