Entrepreneurial Ventures and the Economy: A Report

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Entrepreneurship and small Business management
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Table of Contents
Introduction................................................................................................................................3
Activity 1(LO1, LO2)................................................................................................................4
LO1 Explore and illustrate the range of venture types that might be considered
entrepreneurial............................................................................................................................4
P1 Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship.....................................................................................................4
P2 Explore the similarities and differences between entrepreneurial ventures..........................5
LO2 Assess the impact of small businesses on the economy....................................................8
P3. Interpret and assess relevant data and statistics to illustrate how micro and small
businesses impact on the economy.............................................................................................8
P4 Explain the importance of small businesses and business start-ups to the growth of the
social economy.........................................................................................................................10
Activity 2(LO3, LO4)..............................................................................................................12
LO4 Examine the different environments that foster or hinder entrepreneurship...................12
P5 Determine the characteristics traits and skills of successful entrepreneurs that differentiate
them from other business managers.........................................................................................12
P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mindset..............................................................................................................................13
L04 Examine the different environments that foster or hinder entrepreneurship....................14
P7 Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship.......................................................................................................................14
Conclusion................................................................................................................................16
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Introduction
The entrepreneurship is the technique of arranging and then setting up a new business, which
can also relate to a small enterprise. An entrepreneur takes risks and invests in a business; he
contributes his innovative ideas to make the business venture excel in the competitive market.
The main aim of the study is to understand the interrelationship between the business
ventures with typology of entrepreneurship. The analysis of the processes in which the small
businesses make an optimistic impact on the economical growth of a country will be
emphasised.
As an employee, of the global business consultancy, “Make it work”, which provides advices
to the upcoming entrepreneur’s successful strategies to make their business ventures acquire
productivity and efficiency in the market field will analyse the factors that enhance and
develop entrepreneurial ventures. The study will be based on the entrepreneurial ventures of
two influential business magnate Bill gates and Peter Jones, and the socio environmental
factors that have influences their success on the business field. The success of business
ventures relate to many economical and social factors than can either foster or hinder any
entrepreneur business which will be elaborated in a detailed basis in the study.
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Activity 1(LO1, LO2)
Introduction
The entrepreneurial ventures are the investment of innovation, knowledge and resources of a
business person which makes it productive to operate in the competitive. In a general basis,
there is 90% of tough proposition that business start-ups fail every year (BURNS, 2011).
Therefore, the entrepreneur must implement right strategies and techniques to make the
business venture successful. This part of the study will enunciate the different business
activities and relate it to the typology of the entrepreneurship.
LO1 Explore and illustrate the range of venture types that might be considered
entrepreneurial
P1 Examine different types of entrepreneurial ventures and explain how they relate to
the typology of entrepreneurship.
The common entrepreneur is as follows:
High Growth Venture
The above mentioned business processes namely the Private ownership and corporate
ownership are the venture which operates to earn profit and collect maximum amount of
revenues. They invest in their business to promote and expand into gaining more market
capitals. They are concerned with earning revenues and gain competitive advantage in the
specific industry. This type of ventures generally falls into the grasp of legal complexity
which is the main issue of high growth venture.
Lifestyle Venture
One or two proprietors operate the lifestyle ventures, and the aim of their operating is to earn
certain level of income to maintain their lifestyle. The main motive of lifestyle venture and
the owners building them is to earn ample amount of revenues and retain their business for a
longer period. The financing procedure adapted for this type of business is debt financing.
The only drawback of such business enterprise is that they could not enhance much growth in
their business.
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Smaller profit venture
Small enterprises have considerably less amount of sales, as the resources are less to fund this
kind of businesses to target more customers and market profits. The private ownership falls
under the category of small profit ventures. They have limited resources and operate in a
limited market share, which can become one of the drawbacks of this type of venture. The
lack of resources can make the business venture fall into complete breakdown.
Private Entrepreneurship
Private companies are governed by sole proprietorship and they have their own set of goals
and objectives which are achieved to get profit and collect maximum amount of revenues.
The start up businesses or small ventures is generally referred to private entrepreneurship.
This type of ventures grabs opportunities to gain profit to which will only benefit the owner.
An example of small businesses is the planet of Grapes, which is a wine bar and restaurant
situated in London. They have earned adequate market revenues and competitive advantage
by sole proprietorship. The economical sector has been positively affected by the operation of
small businesses be it corporate sectors, retail sectors or hospitality sectors. The small
businesses helped the economic development of United Kingdom, diminishing
unemployment, employee turnover and offering career opportunities (JONES-EVANS,
2012).
Corporate Entrepreneurship
The corporate entrepreneurship is generally operated by large companies, and there are many
complexities regarding the operation of large corporate sectors. The corporate sectors develop
new businesses, products and services which are develop within the organisation to generate
profit and enhance the growth of the organisation by entrepreneurial though and action. The
corporate sectors are solely formed by entrepreneurial innovation and growth.
P2 Explore the similarities and differences between entrepreneurial ventures.
There are numerous similarities and differences between the business processes and the
discussion below will depict the comparison of three types of business ventures such as
small, large and social enterprise. The analysis has been shown below:
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Differences Private or small
enterprises
Large businesses Social enterprises
Resources They operate to earn
more revenues and
market share so that
they can be
financially strong and
gain competitive
advantage. The basic
requirement of such
business is to earn
income and if
possible competitive
advantage
The large businesses
operate to gain
market share, profit
and ample amount of
revenue so that they
can increase their
services to cater to
their customer needs.
The increment in
their resources can
help them achieve
remarkable position
in the market.
The social enterprise
operates to serve the
common people and
is often funded by
governmental
organisation or large
enterprises. They are
independent
organisations and
arrange campaigns to
help people in
emergency situations.
Risk factors The small enterprises
work for earning a
limited amount of
income as they are
unable the owner is
not able to provide
enough resources for
making the
organisation earn
competitive
advantage. The lack
of resources acts as
their risk factor as
weak economic
condition can lead to
breakdown of the
The large
organisation
proprietors aim to
earn more profits and
have a continuous
flow of income to
overtake their
competitors and gain
a remarkable place in
the competitive
market.
The social enterprises
look towards gaining
popularity so that the
governmental bodies
invest in them to
make their social
campaigns
successful. The main
aim of such
businesses is to serve
the needy and
underprivileged.
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company in ever-
changing market
demands (DOWN,
2010).
Economical
Strategy
The small enterprise
strategise their
operations to lower
risk, near term
income potential
which leads them to
avoid outside
investments of their
resources that will
stop their real
income. These
characteristics attract
creditors, investors to
invest in their
business and
eventually enhancing
them in earning more
profit.
The high enterprises
generally choose to
implement
competitive pricing
policy to attract
customers. They
apply this strategy to
sell their products in
fewer investments
and get maximum
ROI (Return of
Investment).
They invest on their
campaigns and
welfare programmes
and they invest on
developing the
equipments and
technological devices
so that they can
provide maximum
help during natural
disasters, calamities
or national
emergency.
Table 1: The similarity and dissimilarity between different types of entrepreneurial venture
(Source: Created by the learner)
M1. Investigate a diverse range of entrepreneurial ventures to demonstrate an
understanding of entrepreneurship in both the public and corporate sectors
The public sectors operate under Governmental bodies and specifically run for serving the
common people. They have low risk and due to the involvement of Government. On
contrary to that the corporate sectors are independent of Governmental and sell their own
produces products to earn profit and revenues.
D1. Critically examine the scope, development and growth of entrepreneurial ventures
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The scope and growth of the public sectors are comparatively more because of the
involvement of Governmental bodies. According to Badertscher et al., 2015, the growth of
the independent ventures has success in a moderate level. They financial growth is enhanced
by selling their products and services to the potential customers to get ample profits and
revenue to operate their business. The large enterprises also operate by catering to the
services of the customers and gain profit and competitive advantage. Nevertheless, the
business operations run through many complex activities. The small and start up generally
attract wealthy investors and funding bodies by the process of campaigning and acquisition,
they thus impact significantly on the growth of economical state of the country the company
is situated.
LO2 Assess the impact of small businesses on the economy
P3. Interpret and assess relevant data and statistics to illustrate how micro and small
businesses impact on the economy.
Small enterprises
The small enterprises are generally the low profit organisation, have small market share, and
operate on limited market capital. According to Hillary, 2017 the small enterprises generally
employ 50 – 250 employees to operate their business, but they constitute the maximum
impact on the economy of the country. The small businesses account 58% of all employment
and 3.8% of GDP in 3.7 total businesses.
Micro size enterprises
This type of companies is very vulnerable in the market due to its limited employees and
resources. They have a risk of going through total breakdown due to lack of resources. They
earn profit by catering to the demands of the customers and can operate in limited capital and
market share.
Although, they provide lot of benefits in contributing to the economical stability of the
country, the small and medium sized to the medium sized entrepreneurs is considered to be
the important part in the UK economy. They provide employment, being the sole source of
the innovative ideas and entrepreneurial enthusiasm which attracts expensive investors and
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funding bodies. Therefore, they constitute the healthy dynamic market to the economy of any
country (Devos and Deschoolmeester, D., 2016).
Figure 1: Percentage of small business in the private sector of UK
(Source: Global-counsel.co.uk, 2019)
The effect of small businesses will be depicted within the graph provided below, which have
led to immense growth to the United Kingdom. The number of small businesses and the
moderate sized businesses are more comparatively than the large sized businesses. The
statistics shown here states that 99.3% enterprises in UK are small businesses and they have a
total of 0.65 market share of the total businesses. They also provide 12% of total employment
on the business field of United Kingdom
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Figure 2: Total percentage of small and medium sized businesses
(Source: Sba.gov, 2019)
P4 Explain the importance of small businesses and business start-ups to the growth of
the social economy.
The small and medium sized businesses including the start ups businesses provides
improvement in the socio economic factor of a particular place. The relevance of the small
businesses is as follows:
Provides employment: The small business provide employment to numerous people as well
to the local people of the country the organisation is located. They influence considerable
economic stability to the place they are operating. The small businesses attract unemployed
peoples who contribute to the innovation of the organisation.
Adaptation to climatic fluctuations
They small enterprises have the capability to adjust to various kinds of situations and
economic climates. The reason behind this adaptability is the services being customer
oriented and understanding the requirements of the consumer the organisation is currently
working.
Providing the local Government with taxes
The small businesses provide financial support to localites when they are operating in a
specific country. The small businesses provide money to the Government so that they can
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peacefully generate more revenues and profits and operate in the country successful without
any political issues.
Conclusion
These parts of the report have explained the importance of the small businesses in providing
the social and financial growth of the country. As the part of “Make it work”, there has been
explanation about the numerous entrepreneurial ventures and the effects it has on small and
micro sized on the financial condition of United Kingdom.
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Activity 2(LO3, LO4)
LO4 Examine the different environments that foster or hinder entrepreneurship.
P5 Determine the characteristics traits and skills of successful entrepreneurs that
differentiate them from other business managers.
This part of the study will depict the various traits and nature of the successful entrepreneurs.
The entrepreneurs like Bill Gates and Peter Jones nature and characteristics will be analysed
to understand the motive and thrive to become successful entrepreneurs. The study will also
analyse the background of the mentioned entrepreneurs, which fosters their business career.
Bill Gates is American businessperson, architect, author and the co-founder of Microsoft
Corporation (Jones and Hillier, 2017). He is a retired businessperson in the present time but
as his ruling years in Microsoft, he worked as the Architect, Chairman and the Chief
Executive Officer. He represented the situational leadership and the transactional leadership
style to influence and motivate the employees and is considered to be one of the ambitious
leader and business person.
A UK based business personality Peter Jones invests in manufacturing mobile phones,
television, media, leisure along with retail (Yoffie and Cusumano, 2015). He invested in the
BBC two investor television shows. He was appointed the Commander of Order of the
British Empire in the year 2009. He is estimated the leading entrepreneur in the United
Kingdom and his wealth is measured to be 475 million pounds by the end of the year 2013, as
he is listed in the Sunday Times Rich List 2013.
Differentiation between traits and skills of entrepreneurs and managers
Differentiation Entrepreneurs Business Managers
Business style Entrepreneurs motivate
employees and interact with
them casually informally
The manager’s
responsibilities are to lead the
organisation and its
employees in discipline and
decorum, therefore portraying
a professional and formal
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