Entrepreneurial Ventures and Their Impact on the Economy: A Report

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ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT

Table of Contents
INTRODUCTION........................................................................................................................2
PART-A ENTREPRENEURIAL VENTURES AND IMPACT ON THE ECONOMY...............................3
CONCLUSION.......................................................................................................................... 11
REFERENCES........................................................................................................................... 12
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INTRODUCTION
The report analyzed the business and various ventures which can be opted by an individual
for considering entrepreneurship. The role played by a small firm is also discussed by the
report in the economy of the nation. The functions of an entrepreneur within a business
entity are analyzed along with their characteristics and behavior in the report. Further, the
influence of different factors on an individual and his career as an entrepreneur is described
along with the evaluation of the key aspects of their mindset. These factors include personal
experience of individual, family background, and responsiveness to the opportunities. The
factors of environment which hinder the performance of the entrepreneur is also described
in the report. The growth of an economy is also contributed by the small and micro
enterprises which play an essential role in the economy of a nation that is discussed in the
report.
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PART-A ENTREPRENEURIAL VENTURES AND
IMPACT ON THE ECONOMY
VARIOUS ENTREPRENEUR VENTURES AND THEIR RELATION TO THE TOPOLOGY OF
ENTREPRENEURSHIP
The process where the opportunities of the market are utilized for ensuring business
success after starting a new business and reducing the circumstances of challenges and
issues for the company is known as entrepreneurship. The person who conducts the
business operation by starting an entrepreneurship venture is known as an entrepreneur.
There are a number of entrepreneurial ventures which can be opted by the entrepreneur
for gaining success and growth within the economy are explained as follows:
Lifestyle venture
When the focus of entrepreneurship is to raise the lifestyle and standard of living of the
entrepreneur, it is known as a lifestyle venture. The business venture which is created by
the individual with a motive to fulfill his desires and growth is called lifestyle venture (Rouse,
2013). All the funding is made directly by the entrepreneur himself who has a personal
interest in carrying on the business. Sustainable work life is balanced by the entrepreneur
with a pleasant persona life in the lifestyle venture.
Small business venture
When the main purpose of a business venture is to survive in the industry with
comparatively low capital and normal profits, it is known as a small business venture. The
types of small business ventures may include a partnership firm, sole proprietorship, and
privately owned business companies.
High growth venture
When the business venture has a motive of earning maximum profits along with achieving
growth with a high speed, it is known as a high growth business venture. The main purpose
is to earn high growth in the business by assessing different opportunities of the market.
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Various strategies for promoting are used by the high growth venture by taking investment
form the investors (Terjesen et al., 2016).
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TOPOLOGY OF ENTREPRENEURSHIP
The different topologies of entrepreneurship which can be used by various entrepreneurs in
the corporate world are described as follows:
Independent entrepreneurship
The entrepreneurship where the entrepreneur bears the risk and profits of the business all
by himself, it is known as independent entrepreneurship. All decisions are made solely by
the entrepreneur himself and the results of his decisions are faced by the entrepreneur
himself without the support of any other person (Ruiz et al., 2016).
Corporate Entrepreneurship
When the purpose of starting the entrepreneurship is to generate high revenue for the
business with the exchange of products and services in the market, it is known as corporate
entrepreneurship. The customers are served in a better manner with the help of corporate
entrepreneurship by satisfying their demands (Ogunsiji and Ladanu, 2017).
Public entrepreneurship
When the purpose of starting entrepreneurship is to serve the general public of the nation
and promoting public interest in the market, it is known as public entrepreneurship. The
local, national, regional, and international authorities of government undertake the public
entrepreneurship for its operations and functions.
SIMILARITIES AND DIFFERENCES BETWEEN ENTREPRENEURIAL VENTURES
Lifestyle venture Small business
venture
High growth venture
Similarities The motive of lifestyle
venture is to earn
profits for the
business by
maximizing its
earnings in the
corporate world.
The aim of a small
business venture is to
earn normal profits
for surviving in the
market.
The small business
venture also wants to
High growth firm
wants maximum
growth and continuous
development which is
the main aim of the
business for its
establishment.
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The lifestyle company
strives its efforts for
gaining development
and growth as its
priority for working.
gain growth and
development for its
business which will
help it in getting
success in the market.
Profits are the main
focus of the high
growth business
ventures by selling its
products on a large
scale in the market.
Differences The main purpose of a
lifestyle business
ventures is focused on
the lifestyle and living
standard of the
entrepreneur with its
operations and
functions in the
market.
The business venture
is a lifestyle which is
started due to the
free time of an
individual after his
retirement who wants
to earn extra income
for his lifestyle.
The small business
firm is the one which
has a purpose of
survival in the
industry with the help
of basic profits.
The profits are not
earned within a short
period and require
considerable time
period for earning
profits.
The main purpose of a
high growth business
firm is to earn huge
amount of profits by
employing large capital
resources.
The motive of a high
growth business
venture is to earn high
growth for the firm
along with earning
future development
for the business entity.
MULTIPLE RANGE OF ENTREPRENEURIAL VENTURES IN BOTH PUBLIC AND CORPORATE
SECTOR
Entrepreneurship in Public sector
The entrepreneurship in the public sector has the main aim of serving the general public
within the economy. The activities and functions of public sector entrepreneurship are used
for increasing the public services for the public. The social entrepreneurship is managed by
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the people who are not working for the government and are not part of the government
(CPI, 2016). But the public entrepreneurship is the business venture which is managed by
the people who are working for the local, national or regional government of the nation.
Facilities and services are provided to the public by the entrepreneurship in the public
sector including public road and transportation, public parks, bridges, telecommunications,
providing water services, electricity board, etc. The public and private enterprises are
combined with each other for generating profit for the public along with achieving common
social objectives effectively with each other help.
Entrepreneurship in the Corporate Sector
The entrepreneurship where the entrepreneurs generate innovative and new ideas and
methods for conducting business and selling products and services in an innovative manner
for maximizing business profits and success is known as entrepreneurship in the corporate
sector. The main aim is to earn maximum profits for the business along with earning success
and growth for the business entity. The business venture in the corporate sector makes
continues innovation and bring ideas new into the business. The process of
entrepreneurship in the corporate sector leads to continuous revenues generation with the
help of challenging traditional and old business practices. This lead to innovation within the
business entity and its operations in the market. The competition in the industry is
significantly affected by the entrepreneurial actions and thoughts of different
entrepreneurs. High value is created for the customers in the market with the help of the
corporate sector and its functions in the market.
SCOPE, GROWTH, AND DEVELOPMENT OF ENTREPRENEURIAL VENTURES
There are various entrepreneurial ventures which can be opted for by the entrepreneur for
conducting business in the industry. These entrepreneurial ventures include sole
proprietorship, partnership, joint ventures, corporate firm, etc. Entrepreneurs can use
different areas of entrepreneurial ventures for conducting business in the market. The
service sector, corporate sector, public sector, allied agricultural sector, and the industrial
sector, etc. are some examples of the entrepreneurial ventures.
The entrepreneurial ventures have a wide scope which promotes different entrepreneurial
activities at different levels of the business ventures in the industry. All the entrepreneurs
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are self-employed and employ their own capital resources within the business enterprise.
The entrepreneurs play an essential role in the development, success, and growth of the
entrepreneurial venture. The revenue and profits are earned by selling innovative products
to the customers in the market along with increasing their value in the form of goods and
services.
The entrepreneurial venture develops with the quality of products it offers in the market
with the help of innovative ideas in the market. The growth and development in the market
are achieved by the business ventures by increasing its competitiveness among the rivals.
This can be done by giving high-quality services in the market to the customers.
ASSESSING RELEVANT DATA AND STATISTICS TO ILLUSTRATE IMPACT OF SMALL
BUSINESSES ON THE ECONOMY
Small and medium entrepreneurial ventures are an essential part of the economy of the
nation which helps in its growth and success. There is a large number of small and medium
enterprises working in the UK economy which lead to its growth and development. In the
year 2016, there are around 5.5 million businesses in the private sector of the UK economy.
The government of UK is continuously helping the SMEs of the country for fostering the
process of the development of the economy as a whole. The UK government is providing
funds and helping the SMEs positively in achieving success and development (Brown and
Wilson, 2018).
The small businesses of the UK economy get easy to start up loans with the positive support
schemes of the government of the UK. They also acquire loans from the financial institutions
and banks at a simple repayment scheme and low-interest rates. The SMEs of the UK
contribute a great way of generating a large quantity of employment for the economy which
leads to its growth and development by reducing the unemployment rate in the nation.
According to a data estimate of UK, there was around 45 percent of total jobs which were
created by SMEs in the nation. Apart from creating employment for the nation, the SMEs
also contributed to the national income. As per a statistic, there are around 33 percent of
the total national income was generated by SMEs. It is further estimated that there are
around 600 million jobs which will be generated by the small and medium enterprises of the
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UK in the coming next 15 years for the economy. The poverty and other social evils of the
society will be eradicated with the efforts of small and medium enterprises (Kirby, 2017).
The turnover of the SMEs is combined together and contributed around 47 percent of the
total turnover of the private sector in the economy of the UK which is reaching an annual
turnover of around £1.8 trillion. There are around 15.6 million people who are employed by
the small and medium enterprises of the United Kingdom. The whole scenario of
employment is changed within the economy with the emergence of SMEs in the economy.
The common issue of decreased employment and poverty rate of the nation is resolved to a
great extent by the small and medium type of the business ventures of the UK economy.
DIFFERENCES BETWEEN SMALL, MEDIUM AND LARGE BUSINESSES TO THE ECONOMY
ACCORDING TO RELEVANT DATA AND STATISTICS
There is a large portion of the total economy covered by the small and medium enterprises
of the United Kingdom. There is around 5.4 million number of small and medium enterprises
which cover 99.9 percent of the total private sector in the UK economy. There are around
15.6 million people working in the SMEs which consists of 60 percent of all the workers of
the private sector economy of the United Kingdom.
The business enterprises which employs workers less than 250 in their businesses are
known as the small and medium enterprises of the UK. The description of SMEs are
provided further down below:
Micro-Businesses
The business ventures which has employees from more than 0 and less than 10 are known
as micro businesses. The statistics of the year 2019 says that the micro-businesses of the UK
economy contribute around 76 percent of the total businesses of the UK. They are also
known as the growth areas of the economy UK because they have generated around 33
percent of the total employment of the private sector of the UK economy. The total rate of
turnover that is covered by the micro-businesses of the economy of the UK is estimated at
21 percent.
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Small Businesses
The business which employs more than 10 employees and less than 50 employees in their
business enterprise, it is known as a small business venture. The annual turnover of the
small businesses in the UK is around €2million but below €10million (Ward and Rhodes,
2014).
Large Businesses
The large business employs more than 50 employees and less than 250 employees in their
business entity. They help the economy in generating large employment in the UK economy
which is estimated at around 40 percent. The turnover of the large business is estimated
around €10million to €50million which is around 48 percent of the total economy of the UK
(Niles, 2012).
CRITICALLY EXAMINING IMPACT OF SMALL BUSINESSES IN LOCAL, REGIONAL AND
NATIONAL LEVEL
Small businesses play an essential role in the overall growth and development of the
economy of the UK. They are known as the seedbeds for the innovation which introduced
fresh and new ideas for the market. This will lead to better services for the customers and
increase healthy competition within the economy. However, much small business find it
difficult to grow their business in the market and around 55 percent of them do not survive
for more than five years. The impact of small businesses can be seen on the economy of the
UK at local, regional, and national level (Brown, 2018).
The prosperity of the economy at the local level is affected by the operations and workings
of the small businesses. They employ a huge number of population and help in the overall
development of the economy at the local and regional level. The taxes paid by the small
business help in increasing the revenue of the local government which further help in the
development of the society by building necessary infrastructures for the locality. The small
businesses help in fostering the relationship between the government and entrepreneurs
who get positive support from the local and regional government (Hardoon, 2015).
This small business produces regularly employment opportunities at the rate of 63 percent
for local, regional, as well as the national level of the UK economy. These job opportunities
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raise the living standards of the employees and assist in the overall development of the
economy at the local, regional, and national level.
IMPORTANCE OF SMALL BUSINESSES AND BUSINESS START-UPS TO THE GROWTH OF
SOCIAL ECONOMY
There is a huge impact on small businesses on the positive construction of the society which
leads to its overall growth and development. The business and workings of small enterprises
affect the flow of money in the economy. There are numerous benefits that the social
economy of the nation is enjoying due to the small businesses of the country. The sector
which is collectively held both the private and public sector enterprises for fulfilling common
goals, it is known as the social economy. The importance of small businesses and start-ups
for the growth and development of the social economy are described as follows:
 The competition increased in the market which creates a win-win situation for both
the consumer and provider. Productivity and economy-wide efficiency are the two
factors which are enhanced within the economy.
 New and fresh ideas are introduced by the entrepreneurs of the small business
which raises quality level and value for the customers (Cole, 2019).
 The small and medium businesses of the economy of the UK lead to development in
the infrastructure of the area where it operates.
 SMEs plays an essential role in promoting dynamic and high growth in the industries
along with adopting fast and suitable means of transaction which include online
transactions and e-commerce.
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