Entrepreneurial Ventures, Typology, and Economic Impact: A Report

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Entrepreneurship and Small Business Management
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Table of Contents
LO1............................................................................................................................. 4
LO2............................................................................................................................. 7
LO3........................................................................................................................... 10
LO4........................................................................................................................... 14
Conclusion................................................................................................................ 15
Reference List...........................................................................................................16
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Introduction
Entrepreneurship involves planning of the design of products and services in terms
of consumer satisfaction. Planning involves the idea designed to produce the
products and services, the execution of the plan and delivery of the same. The
entrepreneur controls these three functions. The main objectives of the entrepreneur
are to start and carry out new business, growth, and expansion in financial terms.
The entrepreneur with the strategies and implementation of various policies and
procedures carries out the relevant functions of the organisation. This research
analyses how Jack Welch, Richard Branson and Jamsetji Tata with the help of
entrepreneurial knowledge and experience perform the functions of achieving the
objectives.
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LO1
P1: Examine different types of entrepreneurial ventures and explain how they
relate to the typology of entrepreneurship.
This report will elaborately discuss entrepreneur and entrepreneurship typology.
Kinds of entrepreneurial ventures will be described. The relationship that typology of
entrepreneurship shares with kinds of entrepreneurial ventures will be discussed.
Different stages of the cycle that entrepreneurial ventures’ life has will be discussed
as well.
Entrepreneurship and Entrepreneur
Entrepreneurship denotes to the process of starting one or several businesses and
developing it in such a way in which profit can be gained (Kuratko, 2016).
Entrepreneurship belonging to modern times tries to achieve some change in society
with innovative ideas presented in their products on a global platform. The person
who builds a new business to gain profit is called an entrepreneur.
Typology of entrepreneurship
 Public-sector entrepreneurship: This kind of entrepreneurship indicates to
the promotion of public policies, which are altered with innovative ideas. This
enterprise will lead the economy of any country in greater success with its
creative operations, which will change the atmosphere. They provide services
for the areas of education, emergency, housing and healthcare.
 Individual entrepreneurship: This kind of entrepreneurship indicates to the
ventures, which is set up and operated by an individual on a small scale. The
entrepreneur administers all risks and profits of the business. The
entrepreneur is the sole developer of products serviced by the business.
 Corporate entrepreneurship: This kind of entrepreneurship indicates to the
ventures in which the surviving organisational procedures are developed to
gain growth by entrepreneurial activities and ideas. The business develops
more sustenance and expansion. This process gives support to the resources
and motivates the systems to achieve a fruitful environment (Hsu et al., 2017).
Types of entrepreneurial ventures
Start-up: Entrepreneurs starts a new business to change world vision. They attain
funds from venture capitalists.
Acquisition: Entrepreneurs purchases the shares or assets of any corporation from
another person. Thus, they achieve huge development within no time.
Franchise: An entrepreneur owns a franchise business and offers services assisted
by a corporation. In return, they get a part of the total profit from sales.
Joint Venture: Two entrepreneurs or more bring their resources together to achieve
a particular goal of a project. Every party is liable for the profits as well as losses
incurred in the partnered business.
Relationship of entrepreneurial ventures and entrepreneurship typology
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Entrepreneurial ventures and entrepreneurship typology have interconnections. The
activities and operations of entrepreneurship are divided according to the marketing
activities and promotional strategies of different entrepreneurs. Different
entrepreneurs have various ideas and innovative thoughts to raise the rate of sales
and make a profit from that. This entrepreneurship develops different kinds of effort
to gain growth in the market and expand their business.
The life cycle of entrepreneurial firms
Every kind of business with different sizes repeats its life cycle. First entrepreneurs
identify the opportunity, then focuses on that. They make plans to assemble
resources, enter the market with their products, and make strategies for expansion,
gains maturity eventually (Burns, 2016).
Conclusion
From the report, it can be understood that it is extremely important to have a clear
knowledge about kinds of entrepreneurial ventures and how they work throughout
their lifecycle to manage any entrepreneurship.
P2: Explore the similarities and differences between entrepreneurial ventures.
This part will show the contrast between major entrepreneurial ventures as well as
similarities they hold. It will also explain social entrepreneurship and
intrapreneurship.
Similarities among entrepreneurial ventures
All kinds of entrepreneurial ventures share some common factors.
 These businesses develop new products with the incorporation of innovative
concepts. They all plan many promotional activities to sell their services and
gain profit at a high rate.
 They share a common aim of developing a business model, which is handled
by entrepreneurs with open thoughts and which can earn a profit with an
increased rate.
 They operate their activities with the help of their owners and the employees
they recruit.
 For their smooth running of the business, they need to have enough
resources in the areas of human, material, finance.
 They all have their share of risks that have to encounter in the course of their
marketing, selling and development (Belz and Binder, 2017).
 They all try to achieve huge growth by developing their products as well as
services constantly with innovations.
 They all fund the business on their own from their previous savings or by
taking loans.
Major entrepreneurial ventures
 Lifestyle venture: This kind of venture aims to achieve a specific amount of
profit. They set up a foundation that helps in having a specific type of lifestyle.
They require a huge amount of capital to start their business. Car
manufacturers build this kind of businesses, which launches its products
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based on a special lifestyle. They target a particular type of customer and try
to satisfy them. These firms rely on the skills and interests of their creator who
should show a lot of involvement to run their business properly.
 High growth ventures: These ventures are modelled to gain high growth rate
very fast. Their objective is to increase the rate of profit by selling their
products. They possess several investors who fund the capitals for the
business activities, for carrying out their promotional strategies (Terjesen et
al., 2016).
 Smaller profit venture: These ventures are run independently. They aim to
establish long-term profits through sustainability. They take capitals from bank
loans or personal savings. They give services that are necessary for city life.
It is evident that they possess many differences in terms of the source of their
capital, the customer that they target, types of products they manufacture, and the
amount of profit they aim to gain by selling and marketing.
Intrapreneurship and social entrepreneurship
If an employee of an existing organisation behaves like an entrepreneur then the
services they produce, fall under intrapreneurial business. They are self-driven to
initiate services. They are not liable for their failures as the organisation bears the
cost. They help in the growth of the organisation with their skills and efficiency by
solving issues. Social entrepreneurship provides solutions for various issues in
society, culture. These non-profitable organisations also work voluntarily for the
healthy development of a community, give shelters to homeless and offer them a job
(Dees, 2017).
Conclusion
This report shows that entrepreneurial ventures share similarities as well as
dissimilarities. It has described that other ventures are also developing
simultaneously with different objectives and services.
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LO2
P3: Interpret and assess relevant data and statistics to illustrate how micro
and small business impact on the economy.
The study will interpret statistical data regarding employment percentage, GDP that
is a gross domestic product, growth in the economy to discuss and understand the
contribution made by enterprises of small as well as medium size. It will also analyse
the impression of SMEs upon the economy of the United Kingdom in terms of local
along with international platform.
The contribution of small and medium-sized enterprises (SMEs) to the
economy of UK
Small as well as medium-sized businesses are administered and controlled
individually or by a less number of owners. They have limitations in terms of their
workforce and fund to run the business. They have contributed in various aspects to
the economic conditions of the UK.
 Taxes: These ventures had contributed to the government of the nation
through taxes. Whenever they gain wealth by vending their products, it goes
to the national governing bodies as taxes. The money is used to the welfare
meant for the local community. These ventures have to bear the tax payment.
This creates a particular amount of money to use in the development and
constructions of public institutions like schools, colleges, hospitals, police
stations and others. These will also be the source of a property, which will
generate more benefits.
 Turnovers: Another important contribution of these ventures is turnovers. The
nation can gain almost half of the money needed for growth from the profit
made by these small ventures.
 Employment: These ventures increased the scope for employment in the
nation. They offer job opportunities to the local people and the people from
the whole nation. They have given jobs to millions of people in recent years
(Storey, 2016).
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Figure: Contribution of small and medium-sized enterprises (SMEs) to the
economy of UK
(Source: research-lincs.org.uk, 2019)
Impact of small and medium-sized enterprises (SMEs) upon the economy of
UK
The economic condition of the UK has been highly benefited in terms of local as well
as international aspects by the establishments of small and medium enterprises.
They have made opportunities for employment larger. This shows a significant effect
on the economic scenario. When people are financially stable with a secured job,
they can easily have better health conditions, better education and lead a better life
with all social benefits and facilities. If the economic status of common people rises,
the economic condition of the nation will raise automatically. These small
organisations will also bring innovative factors in a social scenario and the ways by
which social conditions can be improved. People can have a safe lifestyle and
environment (Giaoutzi et al., 2016).
From this statistical analysis, it can be viewed how several kinds of entrepreneurial
ventures have contributed to economic growth in the nation United Kingdom. Micro
ventures have contributed more than 80% to the economic condition. Small, medium
and large ventures have contributed near about 20%.
Conclusion
From the numerical details mentioned above, it can be seen that the economic
condition has been influenced greatly by the ventures of small, large along with
medium size in terms of many elements such as employment, social infrastructure
and innovative solutions to several issues.
P4: Explain the importance of small businesses and business start-ups to the
growth of the social economy.
This report will describe elaborately social enterprise as well as the social economy.
It will explain CSR that is Corporate Social Responsibility. It will discuss the
developmental factors of social economy and how important is SME in the process
of development. It will end with an overall explanation of all these mentioned topics
regarding the economic condition of the United Kingdom.
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Social Enterprise and Social Economy
According to the Government of the UK, social enterprise denotes to that kind of
business, which tries to achieve a significant social transformation with its objectives
and goals. They aim to transform the world with better perspectives. Unlike
businesses with conservative goals of gaining profit, their sole focal point is the
betterment of the lifestyle of common people by providing solutions to their problems
as well as handling and improving various social issues. The profit they gain by
selling their goods that goes to the welfare of the local community. They cause the
growth of the social economy by giving people appointment opportunities with
sufficient training. They help the total development of the local environment. Some
remarkable instances of social enterprises of the United Kingdom are the Eden
Project, Devine Chocolate as well as The Big Issue. However, the number goes up
to 100,000, who provided opportunities for employment to 2 million citizens. They
contributed an amount of 60 billion to the UK Government. These autonomous
organisations reinvest their profits, which they attain through trade. They made an
economic recovery through their global activities incorporated with innovations,
which made a huge distinction (Sepulveda, 2015).
The social economy is different from public sectors as well as private sectors having
varied capitalisms. They operate voluntarily, mutually or with cooperation and are
non-profitable. They accomplish their activities within communities nationally as well
as internationally. Their marketing processes cater to social benefits. The surpluses
of profit are also given out to stakeholders. The instances of social economy
institutions are building as well as mortgage organisations, trade unions,
philanthropic as well as charitable organisations, credit units, community and
neighbourhood organisations, sports associations, schools, clubs, hospitals, religious
and political groups, insurance mutual etc. (Powell, 2019).
Corporate Social Responsibility
Corporate social responsibility deals with the ethics that govern the businesses of an
organisation. It means they are liable for the effect they make on the society, the
environment as well as the economy of the country. They also should reckon with
human rights. The organisation should increase positive impact upon the
environment by securing and sustaining its elements. They should possess a healthy
and fruitful relationship among workers as well as the consumers. They should think
of local communities as partners. These practices make the standards of any
company very high. This is beneficial for competitive markets in terms of gaining
more attention to and trust for the brand. Governing bodies should look after the
CSR policies (Crowther and Seifi, 2018).
Conclusion
From the above discussion, it is evident that the SMEs of the UK market have great
importance in developing economical social conditions. They consider various social
problems of common people and give solutions to them with their services, goods as
well a range of various products.
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LO3
P5: Determine the characteristic traits and skills of successful entrepreneurs
that differentiate them from other business managers
The character traits of entrepreneurs are personal characteristics in terms of
specialized ability and skills that help them to balance the quality of any tasks. The
various entrepreneurial qualities include the level of self-confidence, the drive of the
entrepreneurs to achieve specific goals, openness to change. Some of the other
characters of entrepreneurs are tolerance to criticism and fair judgement (Burns,
2016). Successful entrepreneurs like Jack Welch, Richard Branson and Jamsetji
Tata possess these character traits.
Personal skills
Successful entrepreneurs possess certain control in specialised fields in executing
specific tasks and identifying errors. Specific skills may be due to the value of
knowledge possessed by entrepreneurs. These knowledge factors play an important
role in assessing the goals of various tasks and various operations of the
organisation. This helps an entrepreneur in starting a new business and performing
the function of administering or monitoring various operations. Entrepreneurs do it to
make it systematic and improve quality. This defines an entrepreneur’s managerial
efficiency (Scarborough, 2016). Jack Welch; a successful entrepreneur possessed a
good quality of assessment. He told the employees of his organisation what he liked
about their work and how they could improve their tasks. He said it was quite
important to be clear about the position of the employees in terms of their
performance.
Jack Welch preferred recruiting generous leaders. He said that successful leaders
are a good coach since they are interested in providing the employees with the skills
and opportunities for improvement. This is because they like to see people win.
Richard Branson believed that leadership was situational and innovative. There were
no rules and principles for leadership. The rules and principles, a leader device is in
an individual’s way.
Self-confidence traits
Various personal skills define the self-assertiveness that differentiates the skills of
entrepreneurs as compared to business managers. Entrepreneurs, like creativity
skills in terms of problem-solving, faster learning and organising ability skills (Julien,
2018), possess additional skills. These skills determine the level of self-confidence in
managing various crises thereby enabling reputation and trust of employees (Burns,
2016). Self-criticism always comes from self-confidence and vice versa.
This is because Jack Welch often lost his temper at the beginning of his career. This
affected his performance as a leader. The next day of a similar incident, he
apologised in front of everyone. Jack Welch stated that it was important to look into
self-mistakes and rectify day by day.
Richard Branson believes that through acceptance of failures one learns a new skill.
Thus, entrepreneurs who do not fear failure are often successful.
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Drive traits
These traits ensure whether entrepreneurs invest a considerable amount of time in
managing skills and sustaining competition. When entrepreneurs are highly
ambitious, they put in hard work to get work done effectively.
Richard Branson believed that those leaders who were enthusiastic about work were
able to derive desirable performance and this enabled them to balance work
environment and workload.
Open-mindedness traits
These traits are an assessment of employees, decision-making, perseverance and
the ability to balance risks, which reflects the progressive mindset of entrepreneurs
(Zahra et al., 2016). The progressive character is an effect of the understanding
capacity of entrepreneurs, which has an impact on one’s performance. This has an
impact on the level of tolerance of the entrepreneurs (Amato et al., 2017). The
acceptance of obligatory norms of state also depends on the ambition and focus of
entrepreneurs in reaching their goals. This determines the progressive mindset of
entrepreneurs (Mugler, 2017).
Jack Welch stated that by being clear about the goals and objectives of the
organisation, it helps in taking important decisions. This also enables the
organisation to gain the support of the employees. Jack Welch mentioned the
competitors of the organisation and stated what plans they aimed to take. This
helped the organisation to be clear about the change in the policies (Degravel et al.,
2016)
Richard Branson’s belief on failures and success is not only an example of the
success of self-confidence trait of entrepreneurs but also one of open-minded,
broader, perspectives.
P6: Assess how aspects of the entrepreneurial personality reflect
entrepreneurial motivation and mindset
Some of the execution skills of entrepreneurs, which determine their managerial
ability and marketing ability, are as follows:
Communication skills
Much of the organisations brand reputation depends on the conversational skills of
entrepreneurs in the beginning. Successful entrepreneurs should have the
influencing ability in terms of the advantages provided by products and services of
that particular organisation. Much of the purchase and utilization of services depend
on the product and service features. The entrepreneur should maintain transparency
with customers. This convinces the customers about the ethics of the products and
services used while designing those (Welter et al., 2016)
Jack Welch by being open-minded about the performance of the employees and
accepting criticisms in the early phase of his career and controlling his mistakes
balanced the skills of the employees. The drive traits of Jack Welch in overtaking the
competitive brands made him focus on the communication traits to derive the desired
performance.
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Richard Branson said that communication was an important tool to understand, learn
and progress. It is not merely speaking but more than that in the entrepreneurial
world. It involves listening too. This is because through this process one can identify
one’s mistakes and understand what one requires to work on.
He was one of the entrepreneurs who built the steel and power industry of India.
Jamsetji Tata’s idea of releasing India from the framework of poverty and promote
equality enabled in engaging into conversations with his people and balance their
skill set to derive desirable outcome (Volery, and Mazzarol, 2015)
Empathy
It is important to understand the customer needs and problems with the products and
services and to accept them and overcome them. This helps the entrepreneur in
addressing the risks and challenges the organisation faces and to balance them for
future growth and success (Ratten, 2016).
Jack Welch stated that while empathy of leaders focused on meeting the goals of
enabling team members to grow in terms of performance. This involved identification
of the obstacles of the team members situations and understand their feelings and
motives.
This should also include the sympathy towards others in cases of miserable
situations in the personal life of team members and their consideration.
Richard Branson
Empathy is not sympathy but a way of developing relationships with employees to
improve their performance and improve the employee experience. This skill of
Richard Branson helped him to achieve as an entrepreneur.
Through employee welfare and improving the social conditions of employees by
fighting against inequality, Jamsetji Tata derived desirable performance.
Personal Branding
With the advent of information and technology has led to the online reputation
building of an organisation. This has a positive influence on the success of the
business. The major reason is that with digital technology there has been an
increase in branding and promotions of the organisation. This has led to brand
awareness among customer. As a result, the business of the various organisations
improves. This has been possible due to social media. This has also reduced the
workload of the entrepreneurs and other leaders (Singh et al., 2018).
According to Jack Welch, the degree is the minimum qualification an individual can
have. The major requirement is the skill set. He said about leadership that people
grow from execution as well as helping others to execute the activities of the
organisation. These approaches and philosophies enabled Jack Welch to become
an established entrepreneur.
Richard Branson believed in values, which were important to believe in them to let
them reflect in his functions. The other two criteria for business was identifying the
similarities with other influential people and implementing ideas on performing
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