BTEC HND Business (Marketing): Entrepreneurial Ventures Report

This report provides a comprehensive overview of entrepreneurial ventures and small businesses, examining different types such as micro-enterprises, small businesses, and medium-sized ventures. It explores the similarities and differences between these ventures, offering a classification based on factors like the number of employees and investment policies. The report delves into the impact of small businesses and startups on the economy, presenting statistics related to job creation, innovation, and financial support. It highlights the role of startups in fostering innovation, bringing competitive advantages, and promoting research-innovation systems. Additionally, the report discusses the influence of small-scale industries on employment, women's growth, and entrepreneurship. The report also touches upon the impact of external factors, such as currency fluctuations, on small businesses and the role of women and minorities in business ownership. The report concludes by underscoring the importance of supporting small businesses and startups for economic growth. This report is a valuable resource for understanding the dynamics of entrepreneurial ventures and their significance in today's economy.

Running Head: ENTREPRENEURIAL VENTURES 0
ENTREPRENEURSHIP VENTURES AND SMALL BUSINESSES
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2/6/2019

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P1: Different types of Entrepreneurship ventures
Any person who starts his or her own business is known as an entrepreneur. Entrepreneurs
usually start business with very less and limited resources. They plan all the business activities
and accountable for any kind of risks or reward of their business venture. This business usually
includes new products (Birch, 2010).
Micro- enterprise venture
These are the kind of business, which are small business and employee’s small number of
employees. These kinds of ventures operate with less than 10 people. It starts with investing a
very low amount for capital and most of them usually work by providing goods and services for
the local areas. Although the microenterprises are small and have very less scope, they still
invest highly to the economy. For example: caterers and bakery owners can be come under the
microenterprise category.
Small business venture
Small businesses are like grocery store, plumbers etc. These run his /her own business. (Carland,
2011). They either hire employees for work or simply work with their family. Their one of the
main and the most important thing is profitable Success for them is and to feed their family. As
this kind of business cannot attract the venture capital and that is the reason they usually finance
their businesses through friends and family or through business loans (Gartner, 2009).
Medium size ventures
These are those kinds of enterprises, which maintain revenues, number of employees and assets
below a certain threshold. Every country and organization has its own set of rules to consider a
medium enterprise.
Gazelle ventures
These ventures are usually defined as a high growth company that increases its revenues by 20%
annually for at least 4 years or more. The base of revenue base is for at least $ 1 million. A

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gazelle venture is a scalable kind of business; these kinds of ventures grow revenue without
increasing cost.
Typology of entrepreneurship
1. The skeptical entrepreneur
This businessperson sees the achievement of others and promptly and begins to address it. They
try to study if the individual have the same old thing and hence they try to search for the same
"fortunate" breaks, or legacy as they imagine that this will be fruitful for their business in order
to achieve goals. it is either the news, or the past life encounters
2. The copycat entrepreneur
This type of business visionary sees the achievement of others and tries to attempt or tries to
duplicate them intentionally. They have an equivalent site, as well as their business cards are also
simply very equivalent, and also the way or manner in which they present themself is the
duplicate of the other industry.
3. The research entrepreneur
This business visionary wants to learn. They look into each conceivable situation and result for
techniques in order to grow or begin with their business. There is nothing inappropriate with
adapting, however if that is the only thing on which a person focus on then it turns into an issue.
The examination also winds up and it slowly starts turning into a reason for not making a move.
4. The determined business entrepreneur
This business visionary has not "made it" however, they will, regardless. They see the incentive
in enterprise, they see that achievement is conceivable without duplicating, and they do all that
they can to begin or develop their business.
5. The accomplished entrepreneur
This businessperson has experienced every one of the phases of the enterprise and is trying to
build a business and have achieved achievement. They have also centered on scaling their

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business and leaving a heritage that helps them to stretches out their past lifetime. The
businessperson who is cultivated makes sense of things and helps in achievement.
P2: Similarities and differences between the entrepreneurial ventures
Differences Similarities
 The differences in all of the three
entrepreneurship ventures that
 All of the entrepreneurial ventures have
different way of classification; which is
based on number of employees.
 These` kind of entrepreneurial ventures
are classified on the basis of their
investment polies.
The similarities of all the three entrepreneurship
ventures are that they all of these help in
 Highly invest in the economy of
the country.
 New technology and innovation to
the country
 Job creation
 Growth potential and strategic
objectives
P3: Statiscs that show the imoact of small business and startup on the economy
All micro organizations are small businesses. The solely difference is a micro commercial
enterprise is a subset of the small business neighborhood based totally on
the range of employees inside the company. While a corporation can technically be regarded a
small business even if it has dozens of employees, a commercial enterprise is a
micro enterprise if rents less than six people. If sole trader, self-employed, or have no employees,
a micro business can be operated
The immense majority in UK are of small businesses and medium businesses, these ventures
have less than 250 employees, according to a study conducted by the European Union standards
(Guth and Ginsberg, 2010).
These companies are either at the beginning of their journey, or in the middle and are in often
need of funding. Studying their size and the way they work in the market , it is difficult to get
loan from banks

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From last 3 years, 60% of small businesses wanted external funding. This includes startup
loans or or other kind of business loans. Startups and the small businesses depend on banks or
the governments to gainsmall business or startup loan. But applying loan in these institution is a
very complicated and aslo a long process.
The Role of Startups and Small Businesses in Today’s Economy
In Small business and financial start ups are very important for todays economy, As their
existence matter in various ways and these industries involve a lot of stakeholders. In these kind
of industries the most important role is played by the banks and the government. These two kind
of institutions direct business owners (Savlovsch, 2011).
A study of UK shows that small companies and start up plays one of the most important role in
the growth of the economy.firstly it helps in more job oppertunities. In UK there are 99.3%
small- or medium-sized industry and the total employement in such industries is 15.7 million in
UK (Ogunleye, 2010; Dana, 2010).
Apart from this the small businesses and startups contribute in the growth of innovation. The best
example for the digital innovation are: Uber and Airbnb these industries created new place for
competing and building businesses.the financial sector in today’s world isblooming with

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innovative and new ideas which is bringing more and more employement opportunities to the
people(Foo, M. 2011).
Supporting the growth of Small business and startups is veryimportant for the economy of the
country Small business and startups both has a combined turnover of almost half (47%) of
private sector turnover in the UK , hence the financial support is very important.
A small or a medium sized business is a business with a very less or two- fifty employees. There
are 5.7 million small business and startups in UK, in which Micro-businesses have zero to nine
employees. There are around 5.4 million microbusinesses in UK, as the above shows. There are
5.6 million small businesses.
SMEs and the Economy:
Small businesses are around 99.3% and 99.9% are startup or the medium-sized. The total
number of employment in these industries is around 16.3 million and the combined turnover
of all these Small business and startup is two trillion.
Composition of the business population:
There are 1.4 million employing businesses and other 4.3 are the non-employing businesses,.
Hence seventy fife percent of these businesses do not employ anyone.

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Trends in the business population
There is a lot of growth in the business population every year but this time in UK there has
been a fall in twenty seven thousand businesses. The majority of population growth in UK is
two thousand and it is because of the non-employing businesses. Between 2017 and 2018,
there was an increase in number of employing businesses by twenty three thousand and the
non-employing businesses decreased by fifty thousand resulting in a decrease of total twenty
seven thousand businesses.
Locations and industries
Small business and the startup have around 99.5percentage of their businesses in the large-
scale industry. Around one fifth of all the Small scale industry and startups work for the
Construction companies. A recent study shows that more than 2000 Small-business even
with a very competitive job market, 33 percent of small business and startups are planning to
add more employees within a few months. The entire job growth of small businesses is one
of the conspicuous issues. Small businesses and startups are struggling to find out and hire
new and talented people (Hofer, 2001; Hofer and Sandberg, 2009)
The biggest impact on small businesses and on UK economy is because of pounds. The
pound has dropped around 15 per cent against and is one of the world’s worst performing
currencies falling behind 150 other currencies. A weak pound is also affecting the Inflation
which has increased the price of goods in the UK and this is impacting small businesses
Birch, 2010; Birch, 2009)
Statistics that show the small business and startups owned by Women and
Minorities
In the simplest of forms, the Small business is a way through which people enter the economy.
Basically ownership of a business gives chance to the individuals also to the women and the
minorities, to accomplish success.. The Figure below shows “The Businesses that are owned or
run by the Women and the Minorities” (Nunnallyand Bernstein, 2010;Zhang, 2015).

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Source: Data obtained from http://www.census.gov/econ/sbo/#PR
P4: Startup helps the economy in the following ways:
1. Innovation
The economic development of a country is highly contributed by the Startup
companies .And it is also one of the ways to increase productiveness in the society.
Startup companies contribute a lot to the development of new technologies and also the
place where they operate. Many a times many large companies buy the small or startup
companies due to its new technology and because it provides a lot of knowledge.
2. Bringing new competitive advantage into the ecosystem
Startup companies are one of those organizations, which are self-motivated in the market,
as they deliver additional competitiveness to the economy. This way the economy stays
healthy and there is always a positive impact on the economy
3. Promoting the research-innovation system
Knowledge-based and high tech startup companies are mostly connected to the
knowledge institutions. Thus, these entrepreneurship system promotes and supports
research, development along with the innovation approach of the knowledge institutions,
the companies also contributes highly to the research work orientations at various
universities and the research institutions, apart from this this works as a role model for

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people and helps in inspiring students or the researchers to implement their ideas through
a startup company.
Small scale industries impact on the economy
Small scale industries provides employment
 Small-scale industries are the one that uses labor incentive techniques and this helps in a
better employment and job opportunities to a very large number of peoples and it also
reduces unemployment problem largely (Katua, 2014).
 These industries provide employment to artisans and technically qualified people; it gives
opportunity to people who work in traditional arts of the country
 It provides employment to people in the rural and the unorganized sectors
 It provides jobs to both skilled and unskilled people
 The employment capital ratio is high in small scale business
Small scale industries promotes women growth
 These type of industries actually helps and give opportunities to the women in UK
 It promotes the entrepreneurship skills among the women and gives them other various
benefits (Hurst, 2011).
 It helps in improving the standard of living of people residing in suburban

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Small scale industries help in mobilization of local resources
 It helps in utilizing local resources like small savings and entrepreneurial talent and etc.
of the entrepreneurs which might stay utilized otherwise. This helps In effective
utilization of the resources
 It open way to promote traditional skill of the family and there is a great demand for
handicrafts goods in the foreign countries.
 It improves and helps in the growth of local entrepreneurs in small villages
 Small scale industries help in capital optimization
 Small such small scale industries often require less capital for the production of per unit.
These industries have a very quick return on the investment also because the payback
period is quite short in such industries
 Scale Industries functions as a calming force as it provides high output along with high
employment capital ratio.
 It inspires people who live in rural areas or small towns to organize savings and
channelize them into industrial activities.
Diversity
 Small business have more flexibility and can be started by everyone there is nothing
complex in this is the thing that makes it more diverse in ways such as functions and
cultures. The greater the diversity the greater will be its impact on the economy. Diversity
in the economy helps in removing the differences as well.
Some of the advantages and disadvantages of small business and startup
The most significant role in the economy is played by the Small business and startup as they help
highly in building up the world’s economy. It contributes to the employment situation. A study
shows that around six hundred millions of jobs will be required around the world in the coming
15-17 years. Many jobs that are available right now in markets are due to small business and
startups. Apart from this, it is also seen that around fifty percent of Small business and startup
have a very less lack access for finance and investment. The Small business and startups
contribute around 33 percent to the national income and forty five percent to the employment in
developing and developed countries (Forbes, 2018).

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Small business and startups are categorized through large amount of workers, capital invested
and the turnover the number of employees add the value of the business is classified. There are
various different criteria’s in Different countries for the classification of small business. For
example, Canada, businesses with less than five hundred employees are categorized as a Small
business, whereas In Germany it is two fifty employees, in New Zealand it is just 19 employees,
while in Europe its two fifty employees. According to the Companies Act of 1985, to be able to
be categorized as a Small business or a startup, the turnover should not exceed £5.6 million and
also the employee count cannot be exceed more than fifty people (Zahra, 2009).
Small business and startup has a very significant role in the economic development along within
the creation of employment. Thus, and that is the reason that it is very frequently debated over by
a lot of researchers, agencies, government, academicians and scholars. Small business and
startups face many common issues on a global level. Although, there is a lot of difference in each
country and its understanding for the numerous ways in which a Small business and startup work
in improving and increasing the economy of a country (Shane, 2013).
Advantages
• Small business and startups have an outstanding ability to increase the economic growth.
They help in a lot of things like, creating many new job opportunities, increase in
innovation.
• Small business and startups also increases competition between the peers and also warms
up the market conditions.
• New entrepreneurs brings new skills, ideas and a lot of innovation in the society
• The recent studies show that Small business and startup have given higher growth rate in
comparison with the industrial sector.
• One of the main advantages of the Small business and startup is its potential to generate
employment.
• The economic growth in a lot of countries like Korea and Japan is directly through the
help of small business and startup activities. Industries like these have a very significant

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role in the development of a country, where 99 percent out of the total business ventures
are Small business and the startups (Muritala and Bako , 2012).
• These Small business and startups produces around 60 percent of output and
approximately.
• A lot of small business and start up in the UK produce more than half of the domestic
products.
• Small business and startups act as pillow against the recession by accepting and
innovating according to the changing environment.
• In addition, the developing and the developed countries, around ninety percent of the
Small business and startups help in improving the employment rate.
• Small business and startup play important roles by being a service provider and a trader
to the primary industries.
• Small business and startup also helps in producing the finished goods and services.
• Small business and startup contributes to the economy and development of a lot sectors
like agriculture, manufacturing and the ICT services.
• There are a lot of positive relationship between a Small business/startup and the economy
of a country.
• Development in the economy encourages the creation of more Small business and
startups.
` Disadvantages
• The employment provided by Small business and startup is high, they are actually
sometimes temporary in nature. Reason being a lot of number of Small business and
startups actually die before they are even able to cross the five-year verge. And this
results into unemployment.
• Small business and startups a lot of times have been criticized for their confounding rate
of the bankruptcy.

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• Sometimes to be able to survive in market, Small business and startups produce and sell
cheap products and services in the market. Although these kinds of products can
temporarily replace the original products in market but it is often not able to the
competition. In the market and such things completely ruin the value and brand image
and of a Small business or a startup (Shane, 2009).
• Most importantly small business and startups often lack in the basic needs such as capital
and etc. for establishing and expanding over a certain limit.
• Small business depends on the innovation to survive in the market. But the pressure of
bringing innovation continuously creates a high amount of uncertainty and confusion.
Small business and startup needs a very encouraging environment in order to be able to
survive (Connolly, 2012).
• There are a lot of things that create problems sometimes just due to a single wrong
decision and that’s why it is very important for a business to cover it with risk insurance,
but due to less budget the small business and startups fail to buy risk insurance for their
business.
• Small business and startups faces a lot of taxation issues
Also for Finding, particular jobs which can be suitable for the new employee is a very big
challenge for Small business and startup companies and apart from this Experienced
people are often very expensive to afford (Minniti and Moren, 2010).
P4: Impact of small business and startup on UK economy
1. Employment and job creation
One of the greatest impacts of small business and start-up on the economy of UK is the
size of business and the jobs they provide. According to a study conducted by the
department of business, these kinds of industries provide 15.6 million jobs.
2. Income and profits
Apart from creating jobs, Small business and start-ups contribute around 1.8 trillion
turnovers to UK economy.

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3. Share of business
According to a study in 2015 there were 5.4 million private sector businesses out of
which 99.9% were small business and start- ups.
4. The balance of payment
Commonly known as BOP, it is an important thing in the UK economy. BOP helps to
study how much a consumer spend on imported goods and services. After studying UK’s
market it was seen that 54% of small business and start-up sell their products abroad.
5. Playing a leading role in women’s representation
Females lead around 18% of all UK small business and start-up. There are around 1.5
million women who are self-employed .This is because women are increasingly starting
up their own businesses. Female led Small business and start-up contribute around £50
billion to the UK economy. One of the examples is of Priya Lakhani; she is founder and
CEO of Century Tech
Century Tech provides software to the schools, which helps them in tracking down the
performance of individual students, from how they are performing at homework to where
they need to improve. This is Priya Lakhani's second venture. She had earlier also
founded an Indian sauce company named Masala & Masala, before moving on to the
Century Tech in 2014.
One of the examples of UK small business in UK is BIZZBY.
Rohan Sinclair launched the company; this app has grown across UK and London and to the
other parts of the world. Most of the apps offer particular services but Bizzby gives customers a
chance to enjoy the services as needed all by using their smartphones. Bizzby is one of those
applications that give consumers the chance to access different and very handy services like
plumbers etc., and many other services just through a smartphone.
Unique Selling Point: due to its unique on-demand services, Bizzby meets an immediate need for
its users. It is a very affordable service as users are charged a flat rate per hour depending on the
kind of task they need.
Bizzby is one of the top, most successful start-ups in the last three years due to its unique ability
to meet a variety of needs on- demand all at the tap of a button and a smart phone.

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