Entrepreneurial Ventures: Typology, Economic Impact, and Analysis

This report provides a comprehensive overview of entrepreneurship, defining key terms such as entrepreneur, entrepreneurship, entrepreneurial ventures, and enterprise. It explores various typologies of entrepreneurship, including survival firms, lifestyle companies, managed growth firms, and agg...Read More

INTRODUCTION
Entrepreneurship is considered to be the act of initiating and operating an enterprises
through an individual who offer creative product , process and service. It is the ability or
willingness by which an individual can develop, organize and manage a business by taking its
risks in order to make profit (A Definition of Entrepreneurship, 2019). An individual who
performs all these functions is known as an Entrepreneur. An entrepreneur is generally a self-
employed, self-motivated, and ambitious person who takes risk to to meet the goals. An
entrepreneur is needed to form and develop few things through examining the need and demand
of consumers. In this report, the detailed explanation of Entrepreneur, Entrepreneurship ,
Entrepreneurial ventures and Enterprise. The study will also define various typology of
entrepreneurship and will also explain the importance of micro, small business and start-ups in
the economy . With the help of this study, the researcher will be able to identify various
motivation, skills and drivers of the traits that can be used by famous as well as successful
business persons.
Different Entrepreneurial ventures and their relation with typology of entrepreneurship.
In the modern world, it is very important to create an innovative product because
customers today focus on the advancement which is offered by a product for which they are even
ready to pay more. In order to create innovative offerings an entrepreneur performs a crucial role
into offering a new product and bears total risk and profit associated with the business.
Entrepreneurship is defined as a framework that help in identifying requirements of customers
as well as earn profit for the same. A entrepreneur is an individual who is needs to hold each and
every function of their business operation along with new innovation and creative ideas in an
effective manner. Different type of entrepreneur which depends on various scale of marketplace. Survival firms: These were those firms which are just surviving in the market, they are
not generating much profits. Basically these are the start-up ventures, whose goal is to
sustain into the environment of the enterprises. Lifestyle companies: These are these companies which creates and sustains a certain
income level for proprietor. These companies works exclusively for achieving profit.

 Managed Growth Firms: This is considered to be that companies which focuses upon
accomplishing profitability through reducing the risk level present into enterprises
( Zacca, Dayan and Ahrens, 2015). Aggressive Growth firms : This is considered to be that companies which seeks for
achieving more profitability in less durations. Public Sector Entrepreneurship: Public sector entrepreneur are taking responsibilities
towards initiatives of economy by performing different and attractive activities that are
beneficial for general public. It affects transformation by mainly exploding knowledge of
different networks. (Bennett, 2014).
 Social Enterprise: Social enterprise mainly concentrates upon satisfying customer
demands rather than generating profits. And whatever profit generated by these firms
will be used for providing effective opportunities to the people.
Typology of entrepreneurship Established Company : It refers to those companies which are already existing in the
current market. It is generally recognised and approved because it has existed for a long
time. For example: Tesco is a multinational grocery store, which is an already established
company and is easily known by the customers, as in this era customers prefer to buy all
the products under one-roof.

 Small Size Social venture: It refers to small sized venture which is facilitating social
services for societal welfare. These types of organisations generally does not earn much
profit and even if they do so, they usage this for providing effective services to
individuals. For example: Funeral care is a business that provides interment and and
funeral services for the dead and their families (Belz and Binder, 2017). These services
are not opted by every individual, as these services are not affordable for everyone. Large Size Social venture : It refers to big-sized social ventures which are providing
various social services at low costs for the welfare of people. These organisations attains
maximum amount of profits but at the same time they are using the earned profit to
provide better services to people. For example: NHS, it known to be the system of public
funded health care which facilitates low-cost and free healthcare services to all the legal
resident of United Kingdom.
 High Growth Firms : It refers to those companies which are growing faster in the
competitive business environment. These organisations earns huge amount of profits and
have a good reputation in the market. These are found in all type of industries and are
good at providing employment opportunities. Foe example : Google is considered to be
the leading multinational technology organisation which deals into internet based
products as well as services. The company is earning huge amount of profits, as in today's
world no online business transaction is possible without internet.
Venture Example Sector Relation with
typology
Established company Tesco Corporate and Private
sector
The typology used is
“Public sector
entrepreneurship”.
Small size social
venture
Funeral care Public sector The typology used is
“survival firms”.
Large sized social
venture
National Health
Service
Public Sector The typology used is
“lifestyle firms”.
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High growth Google Corporate and Private
sector
The typology used is
“Aggressive growth
firm”.
Difference between serial entrepreneur, entrepreneur and owner manger
Basis Serial Entrepreneur Intrapreneure Own mangers
Meaning A serial entrepreneur
is one who comes up
continuously with new
ideas and starts new
business
Intrapreneure refers to
employees of an
organisation who is in
charge of undertaking
innovation in product
and services etc.
It refers to an
individual who is in
charge of certain group
of task or sub set of a
company
Approach Inductive Restorative Productive
Capital Raised by an
entrepreneur
Financed by
organisation
Raised by different
sources such as shares
and debentures.
Similarities and Differences between Entrepreneurial ventures.
Different types of entrepreneur venture are there in competitive marketplace. Various
entrepreneur are running their business operation with their innovative and creative ideas in
order to survive in the competitive edge. For instance there are certain similarities along with
differences. The chosen business are established company, small scale social venture, large scale
social venture and high growth firms.
Similarities
Similarities which are there in these businesses are: there are different types of
organisation who are surviving in the market in order to earn profit as it is the main motive.
Along with such entrepreneur there are some business enterprise who come up with innovative
and creative idea so that they can satisfy customers need and demand. All these organisations are
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surviving just because of the creative idea of the business (Burns and Dewhurst, 2016). The main
reason of the business existence it present for satisfying the consumers requirements through
examining market trends as well as requirements. All three firms were operating for societal
welfare through facilitating several opportunities for job except small scale social venture.
Creating brand name: All the firms either small, huge or another enterprises for brand
name. In case business facilitates effective quality products or services to its customers then it
can simply develop their brand name into the consumers mind and within competitive market
are. It is possible if they concentrate upon its individuals needs as well as accomplishing this into
effectual way. For the completion of the brand name, quality is considered to be essential
aspects for firms as well as business.
Creative idea: The current market trends id very much competitive as well as difficult
for survival. For initiating an entrepreneurial ventures, business person has to come up with
creative ideas as well as creation for surviving and growth into marketplace. As individuals
requirements changes rapidly so this is very crucial for firm to accomplish its consumers needs
for surviving into market area. Whenever any new business comes into market area, it brings
with innovative as well as innovative thoughts. Thus, all enterprises have to adapt strategy of
innovative ideas into its firms for gaining more profitability.
Differences
Survival Life Style Managed growth Aggressive
growth
Time Horizon They don't survive
for long time.
They survive for
whole life.
They can survive
for long time.
They survive for
longer duration of
time as they are
already
established
companies.
Managerial
focus
Its focus is just to
stay in the market
Its focus is to
satisfy the needs
Its focus is to
overcome risk
Its focus is to earn
maximum amount
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of customers
(Storey, 2016).
and then earn
profit.
of profit as fast as
possible.
Managerial style Autocratic style is
used.
Democratic style
is used.
Laissez-faire
style is used.
Autocratic style is
used.
Technology
Investment
Investment is
made according
to the changing
needs of
customers.
Investment is
made.
Huge investment
is made on
technology.
Reward No reward Employees might
be rewarded in
terms of
compensation
and
remuneration.
Rewards are
given .
Rewards are give
according to the
performance.
Organisation
Structure
Flat organisation
structure
Hierarchical Network
structure
Division structure
Economic
motives
To survive in
marketplace for
longer duration of
time.
To generate
income through
other
prospective
Obtaining
profit in
competitive by
minimising risk
To attain higher
profit at low possible
time.
Interpreting and Assessing how Micro and small business impact the economy
Micro Business: Micro business are refer to very small ventures. It is define as one person
enterprise. It is connected with trade people, professional, inventors and manufacture from
variety of people(What is a micro business?, 2019). It is often exempt from workers
compensation, liability insurance with certain professional licensing.
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Small business: This is considered to be the ventures that is severally owned and operate
business in an effective manner. In such business a owner have full control over operation and
discussion. Eventually, it require less capital and less work force along with less or no
machinery.
Small type of business operates in small size with less number of workers or employee.
Where as Micro enterprise are the one with 5 or less than 5 people working in it. Micro
enterprise are creating various opportunities for general people living into the community
because it is working on sole proprietorship. The basic purpose of their running is to fulfil the
basic need of people (Burrows, 2015). Small scale serve the people in an effective manner that
give net profit to the owner. It may also effect environment through brining innovation that help
in developing people living standard through employment opportunities to them.
During the period of brexit, when uk economy has ended all its relation with eu, many
companies tackle the complexities into surviving as the value of currency got decreased. During
that period small as well as micro enterprises aids the united kingdom government in that hard
duration. Small scale contributes around 65 % for new jobs. Without the support of both micro
and small business it was not possible to improve the economy of UK.
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As per the above stated graph it has been identified small business business enterprise are
contributing more in the marketplace of United kingdom. From the data it has been clearly
interpret that Scotland and Wales are the part of UK. Here the contribution of Small scale
business on the economic growth. In Scotland it contributes about 21.2% and in Wales about
16.3%
SMEs play a great role for employing individuals in all over the nation. Small business
contributes over 69.7 % in employing the people in private sector. On an overall this is
interpreted that the employment in private sector is more within small and medium sized
enterprises.
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As per the statistics of the small business , there are appprox5.6 million enterprises at the
beginning of year 2018. as compared to last year, the businesses population into private sector
reduce by 0.5% where as employment enhanced by 2% into private sector. It is the contrast
attributable towards the reduction of small non employing enterprises by 1% but the
maximisation of huge employing venture raised through 2%.
Importance of small-business and business start up to the growth of social economy
Social economy defines the relation among social economy and social behaviour of an
individual. It studies how norms, regulation and ethics influence the behaviour of consumer.
This may has various business size starting from small businesses to large organization as well as
group which operates in all economic sectors (Chell and Karataş-Özkan, 2014) Small business
plays an essential role into the development of societal economy in following manner:
 Creation of employment: Within an economy small type of business are giving
employment opportunities for the illiterate people. By doing so they aids in obviating
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country's poverty. By facilitating employment opportunities they aids in accomplishing
the basic requirements of individuals such as home, foods and many more.
 Innovation: By new innovation in the market, Small enterprises aids in improving the
economy. As into this kinds of enterprises need to have any kind of support for opening
their venture. It helps to acquire talent of individuals in innovation or else to find out
solution for the existing product. Thus, innovation help in creating different from other
business operation.
 Local improvement: Small business are improving the leaving standard of people as it is
providing different type of opportunities in competitive marketplace. This help them to
live better then before. They are able to know about the society requirements that impact
positively upon individuals life of UK.
 Contributing to local government with taxes: When customers support local enterprise
this considered that they are able to produce more income because this aids in bringing
money back to the local community. Enterprise then need to pay more taxes and this
money is utilised through another locals sections for the community welfare. The affects
of local enterprises may be viewed into the collection of taxes.
Characteristics traits, skills of entrepreneur that differentiate from other business manager.
Entrepreneurial skills are define as a set of mind which determine human behaviour
towards the business venture function and activity. (Fayolle and Gailly, 2015). They often draw
opportunities, innovation creation of new value. Each entrepreneur is different which contribute
in different way to their success. There are various kinds of mindset that were discussed below:
 Growth mindset: In this the entrepreneur have a desire to develop as well as create
better themselves. In this they challenge themselves to bring something better then them
so that they can constantly grow better. They always try to increase their knowledge as
well as of universe.
 The business mindset: In this the enterpriser love to facilitates various kinds of facilities
to the people that aids in changing the world. This mindset will assist in easy solving of
the difficulty in order to attain the monetary freedom.
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 Dreamer mindset: It is defined as those entrepreneurs who have mind set for dreams.
These type of entrepreneurs achieve the success because of their abilities for thinking
high and big. They always believe that everything is possible. This mindset will help the
entrepreneur to focus on what they want from their future and how easily they can
achieve it.
 Confident mindset: This is considered to be the most essential mind set because
confidences is always refers as the success key. By combining confidence with other
mindset will help to achieve anything. Confident mindset will always make entrepreneur
happier and would also help to take action on goals.
The mind set of the entrepreneurs is crucial characteristics that aids them for making
specific innovations as well as perform considered work. This is important to understand
importance for the same and some of the points are discussed below:
 Increasing thinking power: Creating a entrepreneurial mindset will help to think what
you are doing and why ( Hlady‐Rispal and Jouison‐Laffitte, 2014). It will take the
business to great height and helps to tackle all the challenges easily.
 Encourage creativity: Entrepreneurial mindset will help to bring innovation and
minimising risk as creative thinking is a key to success. This help to make creative
solutions for the same and in the same way help the business in a long run.
An entrepreneur are proprietor of the business venture a successful person always create
a gaol towards the fulfilment of its business gaols and objectives. Herein, an entrepreneur is the
person who is responsible for the success and failure of the company. Where as a manager is a
person who seeks the another department task. Herein, two well- known as well as successful
business persons is considered i.e. Bill Gates and Steve Jobs.
Bill Gates was born on 28 October, 1955 who was the founder of Microsoft Corporation
that deal in developing new technologies.. Microsoft has become world's largest PC software
company.
Steve Jobs was born on 24th February, 1955 and is a co founder of Apple Inc. His
creative ideas and innovation are the reason behind the success and brand of Apple.
Characteristics : This are the one which make successful entrepreneur different from other
managers. Some of them are discussed below:
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 Risk taker: A successful entrepreneur is a one who can take risk. They always that more
they will take risk more they can contribute to the success. Where as Managers on the
other hand always avoid risk. Here in this context both Bill Gates and Steve Jobs have
taken risk in order to get successful
 Communication skills: In business communication plays a great role to become
successful. It is require to communicate with each other in order to get success. If
entrepreneur are not able to convey there message to the employees they are not able to
achieve target of the company. Where as manager can not capable to communicate on
large scale and are not able to express their idea.
Traits : Traits refers to the quality of an entrepreneur which make them different from other
entrepreneur. Moreover, they always have courage to take risk of their business operation in
competitive marketplace Competitive spirit: An entrepreneur always have competitive spirit from such they make
creative plans and idea. Steve Jobs and Bill Gates both were having the same spirit that
help them to stand in whatever the situation arises in becoming successful in marketplace.
( Jones-Evans and Klofsten, 2016).
 Self motivated: Entrepreneur are always self motivated. They always adopt challenging
position without taking help of others. On the other hand Managers always take help of
other person in order to work properly.
Skills: Entrepreneur have skills which they use in their day to day work. Some of them are
discussed below: Flexible and Adaptable: In order to carry business operation entrepreneur need to be
flexible and must have the ability to adopt changes in effective and efficient manner. Bill
Gates was so innovative and creative that help to develop Microsoft. On the other hand
Manager are not at all flexible toward their work.
 Focused toward objective: While achieve a target an entrepreneur faces many obstacles
in their way of success. For such purpose they need to be focused on their gaols and
objectives.
According to Jayson DeMers , 2018 research says Entrepreneur are born or made. But
most of are made because at the time of their birth they are not intelligent and have all
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entrepreneurial skills, they also gained and develop some skills and knowledge by their
experiences. When think about entrepreneur are born it cannot decide that entrepreneur are born
successful and owned a large business. Entrepreneur is not the one who has made the business a
success but it is the one who starts the company and employ himself. According to research,
successful entrepreneur are more often made. There innovative thinking and vision make them
unique.
Many people say that entrepreneur are born or made. Herein may people have different opinion
that entrepreneur are born where as some people say that they are made. As different
entrepreneur have different character tics they can be acquire by different people in order to
come up with new idea and innovation.
Differentiation of characteristics of successful entrepreneurs with business manager
Characteristics/ skills Entrepreneurs Managers
Communication It is important skill and
necessary for entrepreneurs
because it help them to provide
information to their target
audience. Steves Jobs and Bill
Gates have this skill which is
beneficial to them in getting
attention of investors,
suppliers and others.
With the help of this skills
managers can deliver their
information to their
employees. This skill help
them in facilitate about the
vision and aim of the firm to
the employees.
Flexible It also important for
entrepreneurs because with the
help of it they can work in
each situation and can adopt
bless and worst situation
easily.
It is important for managers
because with the help of it they
can make flexibility in their
work. For example, if an
employee is not able to come
to office than they can provide
them flexible work which help
them managing the work of the
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firm.
Assessment of Entrepreneurial personality reflect entrepreneurial motivation and mindset:
Personality refers to the characteristics that made them differentiate from others. It is
different ways of feeling, performing or thinking differently or act. A entrepreneur always have a
different personality which relates to an individual success. Moreover, personality of famous
successful entrepreneur Bill Gates and Steve Jobs led to their success ( Scarborough, 2016).
Bill Gates belongs to a educated family that always motivate him to work efficiently and
achieve success. They didn't force him to do a course of their choice. This is the biggest
inspiration for him that made him so successful. Steve Jobs on the other hand belongs to normal
family where the background was not that strong. His aims from there only was to do something
different and innovative there for he founded Apple Inc. which is one of the most popular branbd
all over the world (Julien, 2018).
Bill Gates and Steve Jobs were so focused toward there goals. There vision was
developed at the early stage only. They both has a great interest in computers. Jobs started
writing software developer in his childhood and used to engage most of the time with computers
only. This was the main reason through which both entrepreneur got successful.
There is a Big five model which can be used for analysis of own personality, it is as
following:
Openness- It is essential for entrepreneurs who prefer to learn as well as collect
information about new things and want to enjoy new experiences. It involve traits like being
insightful and having a huge variety of interests. This factor help in making innovation in goods
and services. In this manner an entrepreneur can become successful in competitive marketplace
with its new idea and innovation.
Conscientiousness- The entrepreneurs who have this trait, they are more conscious about
their vision and aims. For achieving this they develop strategies and use various techniques. It
include organised, methodic and thorough.
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Extraversion- It consist talkative, assertive and energetic traits. The entrepreneurs who
have these traits, they can make interaction with employees and customers to attract and make
loyal them towards the firm.
Agreeableness- This trait include cooperative, trustworthy and coordinate which is
important for an entrepreneur so that they can generate new and innovation ideas from their staff
at the time of decision making. It help in maintaining a healthy and friendly environment where
employees can perform in a better way.
Neuroticism- This is the last trait and include being moody and tense. It is important and
essential for entrepreneurs so that they can treat their employees calmly and effectively.
Thus, with this ocean model an entrepreneur can know its accountability of its idea and
innovation in competitive marketplace.
Personal characteristics and situational factors:
Some of the entrepreneurial characteristics and situational a factors are as follows:
 Family up brining: This plays an essential role into the attitudes of entrepreneur that can
be related to how people is bring as well as make decision. FOR EXAMPLE: The family
of Bill gates motivated him to think creative and innovative from others. All family
members have supported him for taking decision so that he can conduct his own business.
 Personal motivation: This is also considered as the self motivation that can be refers as
motivation that arises from internal expectations of the people for the accomplishment as
well as satisfaction of particular requirements. For example: Steve jobs was not educated
he have faced poverty during his childhood. His poverty indicated him to take a
necessary and due to his self motivation he came up with the new idea of creating phone
that create uniqueness within market place.
Examining relevant examples and experience that hinder or foster entrepreneurship
It is role of an entrepreneur to act different into various situation like taking decision,
understanding or handling situation. An entrepreneur background an experience are different
aspect that obstruct or foster the entrepreneurship quality of respective. Successful entrepreneurs
were taken one of them is owner of Apple and other is owner of Microsoft. It background as well
as experiences hinder and fosters the are as follows:
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Steve Jobs:
Background:
 The owner of Apple was born on 24th Feb. 1955 and was adopted by Paul and Clara Jobs.
His father was so abusive.
 In the younger age itself, Steve Jobs has showed the interest in computer science.
 His education together with the support of family help him to get success by making
Apple Inc.
Experience:
As his parents were not that educated nor the family background was strong enough this
things help to develop a self motivation among him and enable him for learning as well as
inventing something new. However many happening were faced at his journey of life but he
proceed for performing that help him to become successful.
Bill Gates:
For example: Steve jobs was not educated he have faced poverty during his childhood. His
poverty indicated him to take a necessary and came up with the new idea of creating phone that
create uniqueness within market place. In this manner Steve jobs hinder with force to increase
wemployement and come up with new and unique idea in competitive market place.
Background:
 The owner of Microsoft was born on October 28, 1955.
 He belongs to a educated family and his parents wants him to pursue law.
 The family always encouraged competition. From the childhood only he was very
interested in soft wares.
 At school also he used to keep himself engage with computers .
 He was national merit scholar when he has done his graduation in 1973.
Experience:
The family of Bill gates motivated him to think creative and innovative from others. All
family members have supported him for taking decision so that he can conduct his own business.
Certain hurdles were also faced by him during his life but he was motivated by himself that
helped him to attain a great success.
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For example: Bill Gates was school drop out though he belong to an educated family. His much
interest was in computer he want to develop a software that is useful for each and every one.
Now he have become one to biggest entrepreneur in competitive marketplace an owner of micro
soft.
Examples of 3 successful entrepreneurs:
Example of international entrepreneur is Jeff Bezos who is the co founder of Amazon.
Bill Drayton is a social entrepreneur and is the founder of Ashoka. When Chef Dan is a local
entrepreneur of UK who has started his restaurant (Katz, 2014). Although he faced many
struggle but at present he is very successful. The all the three were successful because of there
innovative ideas, knowledge and flexibility. If one is focused about the aim, they can attain
success easily.
CONCLUSION
As per the above discussion it has been determined that entrepreneurship plays a crucial
role in success of a business. Entrepreneur are the people who have courage and capability for
operating the business as well as coming up with new innovation within market place. Apart
from this there are certain ventures also which help in running a business in appropriate manner.
In addition to this entrepreneur has few characteristics, traits etc. that differentiate them from
another business manager. Several skills like past experience, background of family, education
level etc. also plays a great role in life of entrepreneur. Thus it can be said that an entrepreneur
helps in boosting the economy as well as increasing per capita income of an organisation.
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