Entrepreneurial Ventures and Their Impact on the Economy: A Report

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Entrepreneurship and Small Business Management

Table of Contents
Introduction......................................................................................................................................3
Activity 1.........................................................................................................................................4
Introduction..................................................................................................................................4
LO1..............................................................................................................................................4
LO2..............................................................................................................................................7
Conclusion.................................................................................................................................10
Bibliography..............................................................................................................................11
Activity 2.......................................................................................................................................12
Introduction................................................................................................................................12
LO3............................................................................................................................................12
LO4............................................................................................................................................14
Conclusion.................................................................................................................................15
Bibliography..............................................................................................................................15
Conclusion.....................................................................................................................................16
Bibliography..................................................................................................................................17
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Introduction
Entrepreneurship and management of a team is a very necessary aspect to be considered. The
people who look for situational betterment often plan for making their own business and it is
beneficial that one person is planning to make a change in the system. In the following segment a
booklet and a report is going to be provided which is going to ensure proper kind of productivity
and proficient business understanding. On the other hand, the service providers have to think of a
proper kind of situational betterment as well. The process is going to involve some successful
business personalities to have a proficient example in the business development process.
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Activity 1
Introduction
This section of the study shall be depicting various entrepreneurial ventures along with their
relation with the typology of entrepreneurship. In addition to this, the similarities and differences
of different entrepreneurial ventures shall be depicted in this section of the study shall be
emphasising on the influence of different small-scale business organisation on different social
economies. Several statistics shall be provided in the section that shall provide information about
the influence of SMEs in growth of economy of a country.
LO1
Different entrepreneurial ventures and an explanation of how they relate to the typology of
entrepreneurship
There are different types of entrepreneurial ventures and some of them are described below.
Individual entrepreneurship
It is a new small-scale business and in this process, the service providers are earning small
amount of profit. It is seen that the business development process is in line with one person and
he is the main decision taker for the team.
Corporate entrepreneurship
It is a process of a corporate organisation and the managing the business. For this purpose the
service providers have to think of a new aspects as well and they have to make product
expansion to initiate new business.
Public sector entrepreneurship
The process is associated with the business development in which the service providers are
dependent on the government. They mainly try to provide diversified products to make business
more proficient.
4

There are different procedures of getting into a business and some of them are associated with
the business modification as well. It is seen that the issues related with the business management
can only be managed by a better kind of business administration and for this purpose different
aspects and procedure can be selected (Allen, 2015). The joint venture, sew product
development, partnership, and many other procedures can be managed in this manner.
There are three stages of entrepreneurship and they are represented diagrammatically below:
Figure 1: Life cycle of Entrepreneurship Firms
(Source: Allen, 2019)
Similarities and differences of entrepreneurial ventures
Similarities
Smaller Profit Venture Lifestyle Venture High Growth Venture
Capital investment is low and
business development possibility
is high.
Initially the investment is low
and business development
chances are high.
Initially low amount requires but
return percentage is high.
People often consider this
process as best for individuals.
Considered best for individuals
and corporate
Considered the best venture for
corporate organisations
Table 1: Similarities of different entrepreneurial ventures
(Source: Created by the Learner)
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Differences
Smaller Profit Venture Lifestyle Venture High Growth Venture
It has a different system to have
better control over the system.
The individuals often have most
of the control.
The organisations mainly focus
on innovations.
The entrepreneur usually satisfies
with a decent growth.
Capital expansion through debt
financing process
Majority of the firms are
represented to earn more.
Table 2: Difference of different entrepreneurial ventures
(Source: Created by learner)
Diverse range of entrepreneurial venture in public and corporate sector
In the public sector people, more often think of public welfare and the entire organisation does
the same thing. It is observed that by the funds of government the organisations make sure that
they are making productive impact on the business establishment process. This is a major factor
to be taken into consideration and this is why the government mainly supports these types of
public entrepreneurship.
An individual or a group initiates the corporate entrepreneurship in order to satisfy personal
needs by contributing to the economic betterment (BURNS, 2011). The main aspect of these
types of businesses is nothing but to ensure proper kind of productivity to have better revenue
generation. Some of the entrepreneurs also prefer to do charity as well, their CSR ventures bring
people close to the organisation, and it is a big thing to take into consideration.
Critical evaluation of scope, development and growth of entrepreneurial ventures
The scope of an entrepreneurial venture depends on different aspects and it is important that the
business development be done with the help of proficient kind business settlement. The scope
can be identified but for that, the market demand has to be understood. Bill gates understood that
the demand in the market is high engineering and he choose technical segment to incorporate it.
There is a good scope in the market but identifying the market and approaching in accordance
with need is a major factor to consider.
The development factor is a major thing to be taken into consideration and in the long run this is
going to have a beneficial impact as well. The growth factor of an organisation is depending on
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the activities done by the service providers. The entrepreneur has to be very productive in order
to make changes in the system. If the example of Larry Page is taken into consideration then it
can be found that the business initiation process he followed is demand analysis and soon his
thought developed the process of communication and provided a drastic change to the digital
world.
LO2
P3 Statistical presentation of micro and small business impact on the businesses impact on
the economy
The micro factors are regarded to be extremely influential as it has direct impacts on the
operational procedures that eventually affect the overall trade and commerce of the organisation.
The Small businesses are having a direct impact on the overall economy of a country.
Figure 2: Large and small businesses in UK
(Source: DOWN, 2010)
The above graph depicts the growth of SME compared to large organisations. The SMEs
comprises the majority of the global economy and the output chips in the GDP. The SMEs
highly increases the job opportunities and helps the unemployed people of a country. As per the
statistics of DOWN (2010), the majority of innovations are promoted from Small sized business
organisations. Employment highly depends on the SMEs and almost 70% of the employment of
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a country is dependent on the SMEs. The entrepreneurship business firms therefore has
significant impact on the overall business environment of a country. The small businesses
generally operate in a target market with a limited market share as well as resources. The total
number of employees of the Small sized business organisation ranges from 50 to 250.
Evaluation of differences made by small, medium, and large organisations in a selected
economy
London is regarded as one of the largest trade hubs in the world and 45% of the organisations in
London are SMEs. As per the data provided by Rhodes (2016), during the end of the year of
2012, England had more than 800,000 SMEs that makes up almost 99% of the organisations in
London’s private sector businesses. Apart from this, the overall estimated turnover of the SMEs
has been calculated to be over £430 billion, which comprises almost 47.7% of the businesses in
London.
Figure 3: Business by size of UK
(Source: Rhodes, 2016)
In the year of 2016, 5.3 million SMEs of UK accounted for over 96% of the entire business
ventures in UK and 32% of the employment and had a turnover rate of 19% (Startups.co.uk,
2019). Whereas, large businesses only accounted 0.1% of the overall business catering 40% of
the employment with 53% of turnover rates in the year of 2016. The technology based industries
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including information technology; biotechnology as well as communication technology
consolidates the Small business organisations in UK.
Business start-ups in development of social economy
Figure 4: Small business statistics in UK
(Source: Startups.co.uk, 2019)
In the modern generation, several start-ups comprise the majority of the small business
organisations in UK. These entrepreneurial ventures are the main sources of innovation and
therefore the development of the social economy by meeting the needs that are unmet by the
public and other private sectors. Social economy highly depends on the development of the
social needs as nowadays the government services are being privatised that is affecting the Small
scale, industries as the majority of the voluntary organisation are small scale. Therefore, they
shall play massive roles in the growth of economies in the near future.
Critical examination of the impact of small businesses on different levels of an economy
Since, the SMEs consolidate the majority of the business venture and provide significant impact
on the economy as well as employment levels. The following mentions some of the impacts of
small businesses on various levels of social economy:
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Employment: The Small businesses promote the growth of employment rates and provide
various economic opportunities to the unemployed people of UK. Therefore, it promotes the
growth of social economy by increasing the employment levels of a country
Providing taxes to the local government
The local government receives taxes from the Small business organisation that allows the
organisations to smoothen their respective trade and commerce. The taxes provided by the SMEs
allow the business to receive any political barrier and receive more profitability from their
existing markets.
Climatic fluctuation adaption
The SMEs has detailed knowledge of their existing market as it operates in a limited area and
therefore, it allows them to analyse and record various economic climate fluctuations.
Conclusion
The booklet has provided a detailed comprehension of the impacts of SMEs and its impact on the
growth of economy of a country. Make It Work shall receive an in-depth knowledge of the
various entrepreneurial ventures that has been depicted in the study.
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Bibliography
Allen, K.R., 2015. Launching new ventures: An entrepreneurial approach. Nelson Education.
BURNS, P, 2011 Entrepreneurship and Small Business. 3rd Ed. Basingstoke: Palgrave
MacMillan.
DOWN, S, 2010 Enterprise, Entrepreneurship and Small Business. London: Sage. CARTER, S.
and JONES-EVANS, D, 2012 Enterprise and Small Business:
Rhodes, C (2016), “Business statistics”, Briefing Paper Number 06152, 23 November, p1-15.
Sba.gov, 2019. [online] Available at:
https://www.sba.gov/sites/default/files/advocacy/United_States.pdf [Accessed 12 May 2019].
Startups.co.uk, 2019: Starting a business advice and business ideas, 2019. Peter Jones: Phones
International Group | Startups.co.uk. [online] Available at: https://startups.co.uk/peter-jones-
phones-international-group/ [Accessed 12 May 2019].
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Activity 2
Introduction
This section of the study shall be depicting various traits as well as characteristics of Bill Gates
and J.K. Rowling. Both of them are famous from their respective entrepreneurial venture. Bill
gates have been known for his indulgence in Microsoft whereas J.K. Rowling has been mainly
known as the author of the famous series, Harry Potter.
LO3
P5 Determining the characteristics as well as traits and skills of entrepreneurs that marks
the difference between them and other business managers
The world has witnessed the brilliance of several entrepreneurs and they have provided the
humankind with their innovations and creations in various sectors of operation. William Henry
Gates III known as Bill Gate has been known as a famous architecture, business magnate, as well
as co-founder of Microsoft. He has a net worth of $100 billion and is a board member of
Microsoft Corporation as well as Berkshire Hathaway (Petrie, N., 2015). The leadership style of
Bill Gates has significance with the transactional as well as situational leadership that allowed
him to communicate his ideas and motivate the employees working for him.
On the other hand, J.K. Rowling has been extremely famous entrepreneur for her outstanding
success through the series of the wizard boy, Harry Potter (Jordan and Quest 2018). Rowling’s
personality as well a characteristic traits as well as her personality struggles that she has gone
through. She is not only famous for her book but also for her charming and caring personality as
well as characteristics that attracted the attention of people.
Difference between the business managers and entrepreneurs traits
The following table shall be differentiating the traits between business managers and
entrepreneurs:
Variable Business managers Entrepreneurs
Goals Managers are have to
responsibility of regulating the
Entrepreneurs aim at long-term
success and profits of their
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