Entrepreneurial Ventures and Typology: A Comprehensive Analysis

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Entrepreneurship and small business management

Contents
Introduction......................................................................................................................................1
LO1..................................................................................................................................................2
P1.................................................................................................................................................2
Different type of entrepreneurial ventures and their relationship with the typology..............2
P2.................................................................................................................................................4
Similarities and differences between the entrepreneurial ventures.........................................4
LO2..................................................................................................................................................5
P3.................................................................................................................................................5
Micro and small business impact on the economy..................................................................5
LO3..................................................................................................................................................8
P5.................................................................................................................................................8
characteristics, traits and skills of successful entrepreneurs....................................................8
P6.................................................................................................................................................9
Aspects of the entrepreneurial personality that reflect their motivation and mindset.............9
LO4................................................................................................................................................11
P7...............................................................................................................................................11
How background and experience can foster the entrepreneurship with the real examples of
successful entrepreneurs........................................................................................................11
Conclusion.....................................................................................................................................13
References......................................................................................................................................13
1

Introduction
Entrepreneurship relates to the activity of doing business. Today many entrepreneurs are entering
into the market with their offerings which includes new ideas and innovation. There are many
entrepreneurial ventures that are providing their offerings into the market (Storey, 2016). These
ventures could be profitable or non-profitable. The ‘make it work’ is a global consultancy which
is providing its services to the new entrepreneurs by advising them in their entrepreneurial
decisions. The company is providing immense support to entrepreneurs in developing their
entrepreneurship behaviour.
This report will include the discussion on different kind of entrepreneurial ventures and by
interlinking them with its typology and also the similarities and differences between business
ventures. The assessment of the impact of SME’s on the economy will get in the report. This
report will also define the entrepreneurial mindset aspects and the impact of personal and
background factors on the entrepreneurship
LO1
P1
Different type of entrepreneurial ventures and their relationship with the typology
Entrepreneurship
Entrepreneurship is an act of doing a business activity with the use of financial and other
resources by an entrepreneur. An entrepreneur is someone who takes all the responsibility of
risks and rewards of the organisation with the aim of gaining an amount of profit (Drucker,
2014).
Entrepreneurial ventures
The entrepreneurial ventures include those business entity formed by the entrepreneurs in order
to gain some objectives and offers their products and services into the market with great
innovation and new ideas. These ventures require an operating scale to form the business activity
and require some financial and other resources (Kirzner, 2015) some types of entrepreneurial
ventures are as follows
2

Small business entrepreneurship
These are the small scale organisation in which the entrepreneurs operates their business activity
by providing their products and services into a specific market and fulfils their financial needs.
They are getting fund from their friends and family and hire local employees to do work with the
organisation. Examples of small businesses are plumbers, electricians and grocery stores.
Scalable startup entrepreneurship
These ventures are highly focused on bringing innovation into the market they aims at changing
the world. They are getting funding from a number of venture capitalist for a rapid expansion of
the business. The scalable start-ups are such as Shanghai, New York etc.
Large company entrepreneurship
These ventures operate their business activity at a large scale and require a huge amount of
funding from investors and shareholders. They aim at gaining market share and higher profit
earning. They always bring out new idea and innovation in the market and cover a wide range of
public with their offerings (Kuratko, 2016).
Social entrepreneurship
In that kind of entrepreneurial ventures, the entrepreneurs offer those products and services
which help in removing societal problems and fulfil the social needs of the community. They do
not aim at profit-making they just focus on the wellbeing of the society but sometimes they work
for profit and controlled by the social groups or government (Dees, 2017)
Relationship with entrepreneurial typology
Individual entrepreneurship
This typology is used by individuals of small businesses. They individually own and runs a
business activity by sharing the risk and reward of the business
Social entrepreneurship
3

This kind of entrepreneurs works in social enterprises. They own a business activity to provide
benefits to the society with their offerings
Corporate Entrepreneurship
The large business organisation applies this entrepreneurship because they deal with the existing
corporation with the aim of earning higher profit
P2
Similarities and differences between the entrepreneurial ventures
Differences
Area of
differences
Small scale
entrepreneurship
Scalable startup
entrepreneurship
Large scale
entrepreneurshi
p
Social
entrepreneurship
meaning Small business
operates its
business
operations at a
small scale with
the aim of profit
making
They run their
business activity
to facilitate great
innovation and
attracts the
venture capitalist
for making
investment
They usually
operate their
business at a large
scale and aims at
gaining higher
market share and
growth of the
business
They are owned
and run to fulfil
the social needs of
the community by
their offerings
aim The main aim is
profit making to
fulfil the financial
needs
They aim at the
rapid expansion of
the business with
high growth
They aim at
achieving market
share and profit
making
They work for
betterment of the
society
investors Friends and
family
Ventures
capitalist
Shareholders and
banks
Social groups,
government banks
Growth and
development
They are not
growing as
operating the
They are highly
focused on rapid
growth and
Growing at a
large level and
development is
They are growing
with the combined
efforts of social
4

business in a
small
geographical area
expansion very fast groups
examples Grocery stores,
hairdressers
Silicon Valley,
Shanghai
ADM group,
Arcadia group
Settle hydro it is a
social enterprise
of UK
Similarities
The similarities between these ventures can be seen in various areas such as these
entrepreneurial ventures own and run a business activity to fulfil some objectives. The
development and growth of these ventures are resulting in economic growth and development.
They are offering their products and services into the market with innovation and ideas. These
ventures are owned by an individual or a group of people who shares risk and reward of the
business equally. All these ventures require an operating scale to perform business activities.
LO2
P3
Micro and small business impact on the economy
The economy of the United Kingdom is growing very fast due to the rapid expansion of micro
and small businesses. They are the backbone of the success of the world's economy. The micro
business includes 1- 10 employees and its annual turnover is under £1.8 million. The small
businesses are employing approx. 50 employees and its annual turnover is estimated as £9.7 million. The
micro and small business are responsible for providing their big contribution in economic development
(Hillary, 2017). The small and micro businesses are creating job opportunities for the local public and
community and are accountable for 15.7 million that includes 59% of private sector employment. The
SME’s are contributing 47% in annual growth of the UK’s economy by increasing its turnover and also
reaching at an annual total of £1.7 trillion. The local and national government is providing huge support
to the SME's by providing several loans. In 2016 the SME’s were accountable for 99.8% of private sector
business (Ward and Rhodes, 2014).
5

Role of the small businesses in the local economy
The small businesses are giving a huge contribute to the local economic development of London.
The SMS's of London is accountable for creating 49.8% job opportunities and providing 47.8%
of total business annual turnover. The economy of London is growing very fast because small
and micro businesses are creating employment and increasing the GDP of the nation
(Ackermann, 2012)
Role of small businesses in the world’s economy
SME’s are become a big part of economic development due to their tremendous offering to the economic
development and growth. SME’s are creating job for the public and balancing the flow of money at the all
level of the world. There was a time when the SME's have contributed 33% in the national income and
they have provided approx. 47% of the total employment in the different developing nation across the
world. According to estimation it is described that approximately 94% of enterprises are SME's in the
world and they are creating 59% of private sector jobs. SME’s are providing more than 51% international
economic benefits (Carree and Thurik, 2010)
Impact of medium-sized and large business on the economy
Medium sized businesses are obliged for more than 12% job in the total private sector and giving
their 15% share to the total national GDP. The large businesses are accountable for 40% creating
employment and 48% of annual turnover from overall large businesses (Burns, 2016).
Importance of small business and start-ups in social economy
6

The social economy describes the social benefits to the community by analysing its social
importance at the national level. The small business and start-ups are providing a great
contribution to social economic development by creating employment for society and social
amenities. They are serving a large community with their products and services and satisfying
social needs (Goss, 2015). The small business and start-up are increasing the annual turnover and
giving their offerings to the total gross domestic product of the country. They are maintaining the
efficiency of the environment by creating an effective pollution control system and sustainable
development in the organisation (Ward and Rhodes, 2014).
Annual turnover in GDP- small business were contributed 2.0 trillion in 2018 and they are responsible
for generating high annual turnover that increases the GDP for the nation.
Job employment – job employment leads to economic improvements and SME’s are accounts for 60%
of total privately owned sector employment in the UK alone and they are creating job security for the
local public(Loucks, et.al, 2010)
Taxation – governments are also getting revenue from SME’s businesses by generating tax rate and other
services. Tax applied by the government on all business related and consumer products like a value-added
tax that includes direct and indirect tax (Storey, 2016)
Share of business- small businesses are accountable for more than 99.4% in the private sector and in that
99.8% are SME’s that are developing in very fast speed in the UK’s economy. They are becoming a big
part in the economic success of the nation (Taiwo, et.al, 2012).
Social security – small businesses manages the customer’s demand by ensuring the sufficient supply of
the product in the market and provides security to the society through effective water and pollution
control system.
Hence, the SME’s and small business start-ups are highly responsible for social economic
development through creating employment for common people and enhancing the well-being of
the society with their offerings.
7

LO3
P5
characteristics, traits and skills of successful entrepreneurs
Characteristics and traits
These represent the quality and attributes of a person like honesty, confidence, creative, open-
minded, self-learner etc.
Skills
This includes a set of characteristics a person uses to perform his task effectively like
communication skills, decision- making skills, leadership skills etc.
Skills of successful entrepreneurs
Decision-making skills
The successful entrepreneurs have effective decision-making skills they always take a quick and
straight forward decision in terms of their business operations
Communication skills
They use effective communication skills to develop a harmonious relationship with their
customers, clients and other stakeholders that develops their personality to work more efficiently
Business and management skills
They successfully perform all the managerial activity they apply logical and critical thinking to
take decisions in the business activities and handle all the operations very well.
Problem-solving skills
Successful entrepreneurs are able to solve all kind of business-related problems. They effectively
utilize their problem-solving skills and quickly solve the problem
Traits and characteristics of successful entrepreneurs
8

Focused on achievement
Successful entrepreneurs are highly focused on an achievement they want to achieve their
business goals. They do not only focus on monetary items even they want to get a good
reputation in the market (Fairlie and Holleran, 2012)
Flexibility
Successful entrepreneurs are always open towards a change. They make themselves flexible
enough to adopt any changes occurs in the business environment
Competitive spirit
Successful entrepreneurs are focused on their win over their competitors. They always apply new
ideas and innovation in their business operation to achieve competitive advantages
Confident
The successful entrepreneurs remain confident enough in all the situations. They feel confident
with themselves and believe that they can do anything, anytime and always ready to achieve
success.
Passionate
The successful entrepreneurs are very passionate about their work they do not care about the
timing of work they are highly focused on their goals
Determination
Successful entrepreneurs have strong determination in their work. They utilize their skills and
effectively put their efforts in the achievement of the business objectives.
P6
Key factors of the entrepreneurial personality that reflect their motivation and
mindset
The mindset relates to the deeply held belief, attitude and assumption about how we are and how
does this world work. The mindset of successful entrepreneurs includes following things
9

Positive thoughts
The positive personality and thoughts of an entrepreneur reflect his motivation. Successful
entrepreneurs always think positive and they stay away from the negativity.
A desire for more than money
Successful entrepreneurs don't aim at generating income for themselves they are the focus on
achieving personal growth development and want to create good brand image among the public
Grabs for opportunity
Successful entrepreneurs take challenges and look for opportunity in it. They always try to find
out the opportunity exists within the organisation and how to take its advantages in the business
Self-motivated
Successful entrepreneurs are not depending upon anyone to motivate them. They are highly self-
motivated. They get motivation from their need and goals and put their hard work in order to
achieve it (Zainol, et.al, 2018)
Strong commitment
The successful entrepreneurs have a strong commitment to their work. They work for their
dreams and use their ability to fulfil their dreams in reality
No fear of failure
They are always focusing on their win, not on failure. They never feel down and never give up
on the things when they suffer from failure.
Innovators
The smarter thinking and innovation of entrepreneurs reflects their mindset. They always focus
on generating new ideas and they do not use someone else idea. They are especially known for
this specific characteristic (Espíritu and Sastre, 2015).
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Thus, the entrepreneurs with positive and creative personality are able to motivate themselves
and that reflects their entrepreneurial mindset. Successful entrepreneurs use different personality
dimensions to get success being an entrepreneur and that define difference between business
managers and entrepreneurs. Business managers do not apply strong determination and
commitment to their work (Leutner, et.al, 2014).
LO4
P7
How background and experience can foster the entrepreneurship with the real
examples of successful entrepreneurs
James Dyson
He is the founder of Dyson limited and also an industrial designer and British inventor. He was
born in the year 1947. He did a course in furnishing and interior designing and applied creativity
to uniting engineering with design. He owned and continue focused on performance of his family
owned business. He attended an art school in London but don’t have any engineering degree. He
developed a sea-truck when he was studying in the royal college and at that time he developed a
wheel boat. These experiences motivated him to start his own production and manufacturing
organisation. He had strong determination and creativity in his work to get success. Dyson is a
passionate person and encouraging other entrepreneurs to become successful. He has established
the James Dyson Foundation to inspire and motivate the next generation engineers. Today the
James Dyson is wealthiest engineer of the UK.
Peter Jones
He is an entrepreneur and businessmen of the UK and has an interest in the area of mobile phones, media
and television industry. He was born in 1966 and raised in Berkshire. He wanted to become an
entrepreneur since his childhood (Peter Jones biography, 2019).
Peter was highly passionate and committed about his work and wanted to get something best in
his life with his personal efforts. He understood a lot from his past mistakes and never gave up
on the things he could control. He has a strong determination power towards his work. He always
11