Entrepreneurial Ventures: Types, Impact, and Case Studies

Desklib provides past papers and solved assignments for students. This report analyzes entrepreneurial ventures and their impact.

Entrepreneurship and small business
management
1

Table of Contents
INTRODUCTION............................................................................................................................. 3
TASK 1 – LO1.................................................................................................................................. 4
P1 DIFFERENT ENTREPRENEURIAL VENTURES TYPES AND ITS RELATION WITH THE
ENTREPRENEURIAL TYPOLOGY.................................................................................................. 4
P2 DIFFERENCE AND SIMILARITIES BETWEEN VENTURES OF ENTREPRENEURSHIP...................6
LO2.................................................................................................................................................8
P3 RELEVANT STATISTICS AND DATA FOR DEMONSTRATING IMPACT OF MICRO AND SMALL
BUSINESS ON THE ECONOMY....................................................................................................8
P4 SMALL BUSINESS IMPORTANCE AND STARTUPS TO THE GROWTH OF THE SOCIAL
ECONOMY................................................................................................................................ 10
M1: RANGE OF VENTURES OF ENTREPRENEUR TO DETERMINE AN UNDERSTANDING OF
ENTREPRENEURSHIP IN BOTH PUBLIC AND CORPORATE SECTOR...........................................11
M2 DIFFERENCES SMALL, MEDIUM AND LARGE BUSINESSES MAKE TO THE ECONOMY,
APPLYING RELEVANT DATA AND STATISTICS...........................................................................12
TASK 2.......................................................................................................................................... 14
CONCLUSION............................................................................................................................... 31
REFERENCES.................................................................................................................................32
2

INTRODUCTION
Entrepreneurship is the procedure that aims at the establishment of the different purpose and
goals considering the risk with it. Entrepreneurs are the persons who establish the business to
earn the profit and to achieve their business goals. This report has been prepared to provide
insights into the different entrepreneurship aspects and concepts. This report has been
prepared on the Croydon Borough Council of London. Thus the different and diverse venture
ranges will also be explained. Moreover, this report will also give insights for the different key
and main aspects of the entrepreneurship. In the end, the report will focus on the aspects that
encourage and hamper entrepreneurship.
3

TASK 1 – LO1
This report has provided for the local council of Croydon London council that provides the
understanding of the different ventures within the private and public sectors. This report is also
provided with the different aspects of entrepreneurship and their relation with the
entrepreneurship typology with the differences and similarities between entrepreneurial
ventures.
P1 DIFFERENT ENTREPRENEURIAL VENTURES TYPES AND ITS RELATION
WITH THE ENTREPRENEURIAL TYPOLOGY
Entrepreneurship: It is the process that is followed by the entrepreneurs who launch runs and
designs the business and which includes financial risk with it with the aim of earning a profit
(Drucker, 2014).
Entrepreneurs: Entrepreneur is the person who establish, launch and run the business for
earning a profit and who takes the risks for the achievement of profit. An entrepreneur takes
the roles and liability of bearing risk for the failure and success of the business (Kuratko, 2016).
Intrapreneurs: Intrapreneurs are the person who is permitted to implement the strategies for
the development of the new services and products without taking any risks and this risk is
handled by the business organization (Drucker, 2014).
Owner-manager: owner-manager is the individual who runs and owns the business and it is the
person and individual who manages and owns the whole enterprise and business.
The entrepreneurship is being divided on the basis of the different aims and objectives which
are as below:
Growth and lifestyle firms: This business is being established by the group that aims to provide
affordable living to the business owners with the aims for living a specific lifestyle. This types of
business venture are the private sector. The other business type can be settled in this business
venture (Burns, 2016).
Public sector entrepreneurship: This venture type is owned and run by the group of individual
or government for the creation of the high value for the public and society. The shareholders
are not fixed in this type of business venture. The business shares are sold in the open market
4

among the public. This type of business does not involve higher risk and it follows traditional
rules and procedures. As for example, London Borough (London Treasurers’ Graduate finance)
is in London that runs as the public sector entrepreneurship (Barringer, 2015).
Private sector entrepreneurship: This type of business venture is established to earn the profit
and to have the own welfare and profit rather than others and the public. This is run and
owned by the private people group. They strive for the growth and development of the
business enterprise and focused on the innovation of product and services and expansion of the
business.
Social entrepreneurship: This is the type of business venture that runs with the purpose of the
social benefit and welfare for the development and growth of the society. This type of venture
is established and settled for the growth and development and for increasing the living
standard. This venture also provides and offers services to those people who cannot manage
the basic facilities and services. As for example, British Social activist in the UK runs and owns as
the social entrepreneurship is Mohammed Mamdani (Morris et al., 2018).
Characteristics and role of micro, small and medium-sized organizations:
According to the different organizational sizes the ventures of the entrepreneurial are
explained as below:
Small sized organizations: This type of small business is having a small size and it also includes
the small number of employees in the organization that equals to the fifty or more employees
and the business turnover for the business is also 2 million per year. In the Croydon, there are
different and various number of organizations that are running and working as the small sized
organizations. The role of this business venture is to develop and grow the business venture to
the level that can assist to cover the business cost (Morris et al., 2018).
Medium sized organizations: These types of business organization are medium in size and it is
having more approximately 250 employees and business turnover is also more than ten million
per year. In Croydon, the investment in this type of business is done on the basis of idea
feasibility. This type of business aims at the development and growth of the business for
success in the long run.
5

P2 DIFFERENCE AND SIMILARITIES BETWEEN VENTURES OF
ENTREPRENEURSHIP
Below are the similarities and difference between the entrepreneurial ventures of Croydon
London:
ENTREPRENEURIAL
VENTURE TYPES
SIMILARITIES DIFFERENCES
Lifestyle venture The main aim of this
business venture is to meet
the basic requirements and
needs, facilities for the
desired lifestyle and to
enhance the sales (Morris et
al., 2018).
The main purpose of this
venture is to collect and
gather the required
resources for the desired
lifestyle only.
Small scale
entrepreneurship
It will provide the services
and products to the
customers to meet their cost
needs and the quality of
services and products is also
good and also aims to
increase the demand
(Barringer, 2015).
The main goal of this
organization is to increase
the sales of business to make
the profit to cover the cost.
Social entrepreneurs This entrepreneur’s works for
society and also for the
development of the nation.
This business venture not
focuses on earning a profit
for the organisation and
works for society
development (Morris et al.,
2018).
Medium sized business This business works for the
expansion and development
This business venture
increases business sales and
6

of the business so that
success can be attained in
the business.
to make the profit and also
enhance brand equity.
7

LO2
P3 RELEVANT STATISTICS AND DATA FOR DEMONSTRATING IMPACT OF
MICRO AND SMALL BUSINESS ON THE ECONOMY
Micro and small business have the employees in equivalent to the 250 and it has been found
that there are approx. 60 million small and medium enterprises in the UK. Small and medium
enterprises contribute to the UK economy in terms of the jobs, employment and other
opportunities and facilities to the local area people. The UK economy grows and develops due
to the SMEs contribution (Sainidis and Robson, 2016).
Figure 1: Small business economy
[Source: Parker, 2018]
According to the statistics the SMEs percentage in the UK contributes as per the different
divisions and sectors. According to 2017, UK SMEs are categorized according to the different
sectors which are real services, renting and business activities and various other activities. SMEs
of the UK also contribute about 40% for the other innovation activities. It also provides 24
8

million individual in the UK. It has also accounted that SMEs activities turnover is equal to the
1.8 trillion.
The UK economy makes also a big difference according to the revenue by the SMEs. SMEs have
also contributed by the growth in the job by 70% and it has also contributed to a total Euro 1.2
billion to the economy of the UK (Rizos et al., 2016).
9

P4 SMALL BUSINESS IMPORTANCE AND STARTUPS TO THE GROWTH OF THE
SOCIAL ECONOMY
As for example, Yuliana Topazly is a social entrepreneur that runs My OutSpace Business Centre
in Croydon which has been chosen as the social entrepreneur. She works with women who
have the children and she is delighted with the honour and she works to realize the women
that they are having more potential for more work (Ayandibu and Houghton, 2017).
The importance of small enterprises can be seen widely and there has been a reflection that the
small business volume accounts for 96 % in UK cities and also 52 % of employment in the UK.
The rate of recession is affected by the small and medium business and it also affects the
growth of the economy of the UK. This provides employment to the 3.5 million people that
accounts for 12% of total jobs.
These are also accounted for the economic changes and also the success and development of
the economy of the UK. It offers many benefits for social economy growth. The GDP is also
increased by offering jobs to a large population. The foreign investors and their investments are
also increasing by noticing social welfare and their benefit. It also aims to increase the financial
position of the individual and thereby increasing the standard of living (Parker, 2018).
According to the research, it has been observed that the UK has the total number of 9percent
of social enterprises in 2017 while this percentage also reflects 7 percent with the employers. It
has been estimated that there are a total of 471000 numbers of social enterprises with a total
of 99000 social entrepreneurs. With the analysis of statistics and figures, it has been found that
there are high competition in the UK market and SMEs are also growing at the faster rate and
working for the development of Croydon growth for Borough council (Ayandibu and Houghton,
2017).
10

M1: RANGE OF VENTURES OF ENTREPRENEUR TO DETERMINE AN
UNDERSTANDING OF ENTREPRENEURSHIP IN BOTH PUBLIC AND CORPORATE
SECTOR.
The public and corporate sector entrepreneurship sector are successful. The public sector
entrepreneurship of the public sector if of traditional nature. It aims for the benefit of society
and people. They adopt a public policy and works for the development of the nation's economy.
This type of business does not possess high risks but they possess traditional culture and
policies. This business does not bring so much innovation in the business. This business
upgrades the policy and involves more people in the business and in modern scenario, there is
the impact of this sector on the transformational process for business success (Parker, 2018).
The corporate entrepreneurship aims at the continuous development of the technologies with
bringing innovation. This entrepreneur focuses on making and development of business profit.
They thrive for the development of profit. They continuously provide solutions for the market.
The corporate entrepreneurship makes high revenue and profit by expansion and business
development. This type of entrepreneurship is different from the public sector
entrepreneurship (Leyden, 2016).
11

M2 DIFFERENCES SMALL, MEDIUM AND LARGE BUSINESSES MAKE TO THE
ECONOMY, APPLYING RELEVANT DATA AND STATISTICS
SMEs makes a great difference in the UK's economy according to the revenue generated by
SMEs impacts the UK's economy. UK's SMEs are trying to boost the nation’s economy and act as
the foundation of the economy. There are more than 5.7 million developments of jobs due to
the SMEs and the major contribution is of England that contributes to 88%. While London
accounted for the small part to provide jobs that account for 5% of all jobs.
As per the statistics, SMEs has resulted for 70% of all development in the private sector and as
per new research, this is offering and providing jobs to approx.. 15.7 million people at the
national level and that reflects almost half of the population that is in the UK. This has also been
predicted that by end 2022 there will be extra addition of Euro 1.2 million to the Economy of
the UK (Ayandibu, and Houghton, 2017).
Figure: Number of business per ten thousand residents adults
[Source: Ayandibu and Houghton, 2017]
12