Business Entrepreneurship and Small Business: A Report

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BUSINESS ENTREPRENEURSHIP AND SMALL BUSINESS
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Table of Contents
Introduction......................................................................................................................................3
1. Define what the concept of the entrepreneur is, and provide some examples of different
entrepreneurs in business.................................................................................................................3
2. Identify the types entrepreneurial ventures and investigate the similarities and differences
between entrepreneurial ventures....................................................................................................3
3. Explain the concept of entrepreneurship typology and correlate the different types of
entrepreneurs to different types of entrepreneurial ventures. Illustrate your answer with examples
.........................................................................................................................................................6
4. Can entrepreneurship exist in public sector? Discuss the range of entrepreneurial activities,
utilizing real life examples of successful entrepreneurship in public sector...................................7
5. Examine with reference to real life examples, what is the scope of new entrepreneurial
ventures in delivering successful product innovation to the market................................................8
6. Critical examine with reference to factual data, the development and growth of entrepreneurial
ventures in the UK...........................................................................................................................8
Conclusion.....................................................................................................................................10
References......................................................................................................................................11
Appendix........................................................................................................................................13
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Introduction
In the modern digital and connected world, the concept of the business has been taken over by
the module of entrepreneurship. The main difference between business and entrepreneurship is
the incorporation of unconventional method of conducting a business coupled with promoting a
new idea or a product in the market. The aim of the study lies in the understanding of the concept
of entrepreneurship. However, the scope of the same includes the identification of the multiple
types of entrepreneurial ventures, which would be analyzed for a potential entrepreneurship
venture in the near future. Additionally, a status of the entrepreneurial ventures would be taken
into consideration using multiple factual data.
1. Define what the concept of the entrepreneur is, and provide some examples of different
entrepreneurs in business
An entrepreneur is defined as an individual that is involved in the development of a business
with the sole aim of earning a financial profit while taking calculated risks (The British Library,
2019). The concept of an entrepreneur is associated with the development of a unique idea for
the sole purpose of conducting a sale of the product while minimizing any risks that might be
developed in the end. The process through which an entrepreneur conducts such activities is
called entrepreneurship (Ft.com, 2019). It is characterized by taking an unconventional approach
for conduction of the business as well as sales of the product or service developed.
Some of the entrepreneurs that are currently active in the UK region include the following:
 Philip Green-Current CEO of the Arcadia Group
 Richard Branson-CEO of Virgin Group
 James Dyson-Innovator of dual cyclone vacuum cleaner along with Dyson Ball Vacuum
Cleaner
 Laurence Graff- Founder of Graff Diamonds
 Duncan Bannatyne- Owner of 40 spas and 60 health clubs and founder of Bannatyne
Charitable Trust
2. Identify the types entrepreneurial ventures and investigate the similarities and
differences between entrepreneurial ventures
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For the conduction of an eventful business, entrepreneurial ventures are essentially divided in
four segments (Casnocha, 2018). However, these four segments are segmented based on the size
and target market of operations.
 Small business entrepreneurial venture: As the name suggests, this type of entrepreneurial
ventures are limited both in segment of seed funding and sales. The sole aim of the
owners associated with this type of ventures includes the development of the members
associated with the business (Piperopoulos and Dimov, 2015). Such ventures form the
major percentage of the total number of ventures. Some common examples include local
grocery stores, cyber cafes, local restaurants or even highway restaurant in UK.
 Scalable start-up up entrepreneurial venture: The basic characteristic of this type of
venture is the potential of high growth coupled with increase in seed funding to meet to
the goals and objectives of the ventures. Though it makes a very small percentage of the
total quantum of expenditures, it is associated with potential high growth and rapid
increase in sales of product or service (Picken, 2017).
 Large company entrepreneurial venture: As the name suggests, such ventures are
associated with extremely large-scale operation as well as production or products. Such
ventures are characterized by the disruptive innovation either through takeovers or
through internal innovation. However, the major drawback for the same includes the
conduction of innovation due to the sheer size and organizational culture of the
organization (Spigel, 2017).
 Social entrepreneurial venture: The social entrepreneurial ventures are characterized by
the creation and promotion of such services coupled with products that tender to the
social causes. The sole aim of these types of organization includes solving of any social
issues that are might result in the alleviation of the citizens or the under developed
individual in the long end (Sarason et al., 2018).
The similarities and the dissimilarities associated with the mentioned four entrepreneurial
ventures include the following:
Similarities Dissimilarities
All the mentioned ventures initial
use the aspect of seed funding
However, in the initial segment, the major difference
among the four mentioned includes the quantum of
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coupled with the selling of a
particular product or service for
generation of some kind of profit.
investment and the variability of the products or service
that are being offered. For example, small business is
associated with low quantum of seed funding while all
the three mentioned ventures are associated with high-
end seed funding (Hochberg, 2016).
However, unlike the other three ventures, social
entrepreneurship does not extensively follow the
profitable business statement. The concentrated aim of
the type of venture includes the development of the
society.
Additionally, similarities among
the mentioned types of ventures
include the providing a unique
product or service relative to the
segment of brand differentiation.
Large company entrepreneurial ventures additionally
include the aspect of takeovers. Hence, such ventures
consider the takeovers as unique business decisions,
which would positive results in near future for the
company.
Additionally, the major difference among the four
includes the source of funds that are required for the
establishment of the business. The small ventures
usually source their funds from family members or
relative or even bank loans in low quantity and long-
term repayment period. The scalable start-up generally
sources their funds from the venture capitalists that are
associated with multiple business incubators
(Entrepreneur Handbook, 2018). Contrary to the two, the
large company entrepreneurial ventures source their
funds internally or might take a bank loan in large
quantum and short repayment period. Social
entrepreneurial ventures are more of CSR activities and
mostly depend on the CSR funds from the parent
company or through public donation and patron
contributions.
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Table 1: Similarities and the dissimilarities associated with the mentioned four
entrepreneurial ventures
(Source: Created by author)
3. Explain the concept of entrepreneurship typology and correlate the different types of
entrepreneurs to different types of entrepreneurial ventures. Illustrate your answer with
examples
Entrepreneurial typology includes the multiple segments in which an entrepreneur could be
divided. The sole requirement of conducting an entrepreneurial typology includes the
identification of the different types of entrepreneurs. The different type of entrepreneurs includes
the following:
Start-up entrepreneurs: Such entrepreneurs are associated with both the small business and
scalable start-up. This would be because, such individuals are mostly associated with the
developing a unique business idea or common business idea and sustain the same with minor
changes and innovative approaches to product and operations.
Acquisition entrepreneurs: Such entrepreneurs are characterized by their dynamicity in
overtaking and buying other smaller companies. This type of typology would be associated with
the large company start-up as well as scalable start-up ventures. This would be because the
mechanism is possible only in those events where the entrepreneurs are backed by financial
strength and critical guidance.
New development and Joint Venture: This type of typology includes the entrepreneurs that work
with multiple partners for a product. In most cases, this typology would be associated with the
large company entrepreneurial ventures. This would be because; joint ventures of larger scales
could only be undertaken by multinational organizations.
Public Private Partnership: In this segment of typology, entrepreneurs are characterized by
conduction a business with aid from the government or the citizens. Hence, large company
ventures as well as social entrepreneurship would be taken into consideration in this segment.
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 Innovators: Sir Richard Branson could be projected as an innovator in business as his
business ventures has been in multiple domains. Such a personality has been the owner
and CEO of the virgin group that deals in the records, telecommunication, and air and
land travel.
 Hustlers: James Dyson invented innovative vacuum cleaner and preferred high risk due to
the presence of multiple vacuum cleaners in the organization. However, currently he is
one of the most successful engineer and entrepreneur due to those vacuum cleaners
(Forbes, 2019).
 Imitators: Philip Green could be projected as a preferred entrepreneur in this segment.
This would be because, the individual developed on the concept of retail groceries as well
as exports and imports to provide a better service.
 Buyers: Duncan Bannatyne could be taken into consideration in this case. This would be
because of the multiple business ventures in which he has invested in that has provided
him with high returns regularly.
 Researchers: For example, Laurence Graff could be taken into consideration as
developing an integrated diamond empire would be associated with extensive data
analysis in segment of demand, supply, supply chain coupled with production process
and volume.
4. Can entrepreneurship exist in public sector? Discuss the range of entrepreneurial
activities, utilizing real life examples of successful entrepreneurship in public sector
Entrepreneurship can exist in the public sector in the form of groundbreaking innovation that is
characterized by the inclusion of basic amnesties and increase of the efficiency of the services
being provided with these amnesties. Range of entrepreneurial activities could be analysed based
on two segments:
 Career driver public entrepreneurial activities: In this segment, activities would include
development of common platform for serving the citizen. This would be associated with
digitization of most of the public services utilities and developing a common payment
gateway for collection of payment for multiple activities (Mahoney and Davis, 2017).
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 Policy driver public entrepreneurial activities: In this segment, activities would include
conduction of survey among the citizens for the identification of potential requirement in
newer policies.
For example, public entrepreneurs from the provided entrepreneur list could be Duncan
Bannatyne as he has been running and developing his charitable trust over many years to
cater to the less fortunate citizens.
5. Examine with reference to real life examples, what is the scope of new entrepreneurial
ventures in delivering successful product innovation to the market
In the current UK market, the issue of Brexit and other legislative developments has resulted in
development of potential of multiple changes in the near future.
For example, entrepreneurs and organizations associated with chemical engineering or even
ceramics has been provided the opportunity to develop multiple types of composites. Hence,
innovation in this segment would include the development of water absorbing cement in more
extensive scales with reduction in the price quantum of the same (GOV.UK, 2019). New
entrepreneurial ventures would be in the development of the production of such materials and
promoting the use of same to address the water crisis in UK as well as in global segment.
In the segment of Brexit, innovation would include development of alternative channels of
trading with consumer nations. Hence, new entrepreneurial ventures in this segment would
include a large company entrepreneurial venture in the public private format. This would enable
the organization to acquire funds and use the backup of the government to conduct extensive
sales of services or products.
6. Critical examine with reference to factual data, the development and growth of
entrepreneurial ventures in the UK
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Figure 1: Challenges faced by new ventures in UK
(Source: Merchant Savvy, 2018)
From the above figure, it is evident that attracting customer is the biggest challenges that SMEs
and start-ups face in UK during the initial run. However, this stat would provide a positive aspect
to the potential development of new ventures in UK. Difficulties in attracting customers would
mean potential high quality customer service for the conduction of the business. This would
create an opportunity for word of mouth marketing for the organization.
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Figure 2: Share of business among UK entrepreneurs
(Source: Rhodes, 2019)
From the above figure, it is evident that with increase in the percentage share, it is evident that
with decrease in the percentage of business, the turnover increases. Hence, in this segment, it
could be projected that high number of businesses would lead to extensive growth to the far
better reach of the same towards customers. In most cases, small entrepreneurial ventures are
associated with micro industries as evident from the quantum of employees associated with the
same.
Conclusion
Post the identification of the concept of entrepreneurs and the types of entrepreneurial venture, it
could be concluded, that it would be in the best of interest of me to develop a small-scale
entrepreneurial venture coupled with the typology of a star up mode. This would be because of
two reasons. First, the business could be developed with a low capital and expanded later on.
Second, the mechanism of operations would enable reduction in the tax slabs that the new
entrepreneurship ventures that would be associated with the same.
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References
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Forbes. 2019. James Dyson. [online] Available at:
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Ft.com. 2019. The UK’s Entrepreneurs | Financial Times. [online] Available at:
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Mahoney, T.C. and Davis, J., 2017. Cybersecurity for Manufacturers: Securing the Digitized and
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Merchant Savvy. 2018. UK SME Data, Statistics & Brilliant Charts. Updated Nov 2018..
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Horizons, 60(5), pp.587-595.
Piperopoulos, P. and Dimov, D., 2015. Burst bubbles or build steam? Entrepreneurship
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Business Management, 53(4), pp.970-985.
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2019].
Sarason, Y., Yuthas, K. and Nguyen, L., 2018. Social entrepreneurial ventures in Vietnam: an
ideographic lens. Tạp chí Khoa học Đại học Đà Lạt, 8(1), pp.83-112.
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Spigel, B., 2017. The relational organization of entrepreneurial ecosystems. Entrepreneurship
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https://www.bl.uk/business-and-ip-centre/articles/what-is-the-definition-of-an-entrepreneur
[Accessed 26 May 2019].
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