Entrepreneurial Ventures and Typology: A Business Report

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ENTREPRENEURSHIP

Table of Contents
INTRODUCTION........................................................................................................................1
LO1........................................................................................................................................... 2
P1 EXAMINE DIFFERENT TYPES OF ENTREPRENEURIAL VENTURES AND EXPLAIN HOW
THEY RELATE TO THE TYPOLOGY OF ENTREPRENEURSHIP...................................................2
P2 EXPLORE THE SIMILARITIES AND DIFFERENCES BETWEEN THE ENTREPRENEURIAL
VENTURES............................................................................................................................ 5
LO2........................................................................................................................................... 7
P3 INTERPRET AND ASSESS RELEVANT DATA AND STATISTICS TO ILLUSTRATE HOW MICRO
BUSINESSES IMPACT ON THE ECONOMY.............................................................................7
P4 EXPLAIN THE IMPORTANCE OF SMALL BUSINESSES AND BUSINESS STARTUPS TO THE
GROWTH OF THE SOCIAL ECONOMY..................................................................................10
LO3......................................................................................................................................... 13
P5 DETERMINE THE CHARACTERISTICS TRAITS AND SKILL OF SUCCESSFUL
ENTREPRENEURS THAT DIFFERENTIATE THEM FROM OTHER BUSINESS MANAGERS........13
P6 ASSESS HOW ASPECTS OF THE ENTREPRENEURIAL PERSONALITY REFLECT
ENTREPRENEURIAL MOTIVATION AND MINDSET...............................................................15
LO4......................................................................................................................................... 17
P7 EXAMINE, USING RELEVANT EXAMPLES, HOW BACKGROUND AND EXPERIENCE CAN
HINDER OR FOSTER ENTREPRENEURSHIP..........................................................................17
CONCLUSION.......................................................................................................................... 19
REFERENCES........................................................................................................................... 20
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INTRODUCTION
In the environment full of insecurity, it is the entrepreneur that can actually clear the
uncertainty with the help of judgments and risk taking. The entrepreneur combines labour,
land and capital for manufacturing goods and delivers services through the setup of the
business. The entrepreneurs are the individual that faces many obstacles while building the
firm. The business setups by the entrepreneur are a small business and set up for fulfilling
the basic need. In this assignment, the learner comes to know about the different types of
entrepreneurs and their importance in the economic growth and development of the
country. The learner also comes to know about the impact of the background and
experience on the business of the entrepreneur.
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LO1
P1 EXAMINE DIFFERENT TYPES OF ENTREPRENEURIAL VENTURES AND
EXPLAIN HOW THEY RELATE TO THE TYPOLOGY OF ENTREPRENEURSHIP
ENTREPRENEURSHIP
Entrepreneurship is the process of starting a new business with the help of an idea.
Entrepreneurship is the action of seeking investment and opportunity creation, managing
and developing business ventures, to activate the production function with the help of
labour, land, capital and material, new technologies and resources. The individual that
handles all these activities for business setup is known as an entrepreneur who is
responsible for taking the risk of earning high revenue (Kirzner, 2015).
TYPES OF ENTREPRENEUR
Serial entrepreneur
The serial entrepreneur may be defined as the person who starts many businesses or runs a
single business with many ideas. The entrepreneur doesn't depend on the single idea for
business revenue and brings new ideas constantly for business growth and profit
(Wennekers and van, 2017).
Typical entrepreneur
The typical entrepreneur is the one who focuses on a single business for growth and
development with a single idea. The entrepreneur comes with a single idea for business
setup and then run the business by taking the risk as an opportunity for business success
(Wennekers and van, 2017).
Own manager
The own manager manages and run the business for earning revenue and position in the
market but is not responsible for bringing new ideas for business growth. The responsibility
of the manager is to look after the business growth and success (Wennekers and van, 2017).
TYPES OF VENTURE
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On the basis of size
Small business ventures- Small business ventures can be defined as the firms operated on a
small scale and don’t have any interaction with the government of the country. The aim of
the small business venture is to earn money that fulfils the basic need of the team (Morris et
al., 2018).
Medium business ventures- medium business ventures can be defined as the firms that are
run for the earning profit from the business on a small scale. The business has no interaction
with the government of the country and runs for revenue (Morris et al., 2018).
Large business ventures- large business ventures are the biggest type of venture that runs
for earning huge revenue in the business with the help of new ideas and innovation. The
firm is connected with the government bodies as the expansion of the business needs to
follow rules and regulations of the country (Morris et al., 2018).
On the basis of purpose
Social venture- Social ventures are the business that works for the welfare of the country
and citizens of the country. The company collect funds form the donations and charity that
the company uses for making the life better of poor and disable (Morris et al., 2018).
Profit venture- Profit venture are the firms run for earning revenue from the business that
will help the company in development and growth. The aims of the firm are earning huge
profit from the business for developing and maintain a good reputation of the company in
the market (Morris et al., 2018).
TOPOLOGY OF ENTREPRENEURSHIP
Public entrepreneurship
Public entrepreneurship can be defined as the process in which the business is set up by the
local citizens of the region for the welfare of the city. The firm runs with the help of
donations and charity (Wang et al., 2016).
Individual entrepreneurship
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The individual entrepreneurship is the process in which the business is set up and run by a
single person by taking a risk and use of opportunities. The profit and revenue are not
shared with anyone in this type of business (Wang et al., 2016).
Corporate Entrepreneurship
Corporate entrepreneurship is the process in which a small firm is set up by the group of
people and brings innovation that helps the company in earning revenue and also helps the
local citizens of the area (Wang et al., 2016).
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P2 EXPLORE THE SIMILARITIES AND DIFFERENCES BETWEEN THE
ENTREPRENEURIAL VENTURES
SIMILARITIES
The business venture is a process that includes new and difficult activities and has huge
chances of risk. The business ventures are of different types based on the size and purpose
but have many similarities as all the business ventures wok form earning money. The money
is then used for a different purpose that depends on the thinking and plan of the
entrepreneur. The entire business venture works on the global level and has no direct
network with the government body. Another similarity in business ventures is that the
business is built with the help of an idea and includes lots of risks and opportunities. Most
businesses are run by an individual or a team of 4- 5 members (Löher, 2017).
DIFFERENCES
The size and purpose of different ventures are different and thus makes the business
ventures different from each other. There are many differences between the ventures on
the basis of working and earning. On the basis of size, the business ventures are categorized
into three types that are a small, medium and large business. The small business includes
fewer employees and the earning is done for fulfilling the basic need. Medium size business
has more employees than small business and runs the business for earning more profit. A
large business venture is the biggest and runs with the aim to earn huge profit and for
making a good reputation in the market. On the basis of purpose, the ventures are divided
into two parts that are social ventures and profitable ventures. Social ventures run for the
welfare of the citizens with the help of donations and charity whereas profit ventures run
for earning huge amount of profit from the business that helps in business growth (Löher,
2017).
There are two types of ventures in the business market based on the sector. The objectives
of the business venture change with sector and priority. The ventures are as follows.
Public ventures
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Public ventures work for earning huge profit and for the wellbeing of citizens of the region.
The venture has coordination with the government of the country and the firm runs
according to the rules and regulations of the government. The revenue of the firm is used
for the development of the company and is operated individually (Löher, 2017).
Private ventures
Private ventures are the firm that is managed and developed by the individual and has no
link with the government body of the country. The firm works individually for earning
revenue and for fulfilling the need. The earnings are used for the progress of business
(Löher, 2017).
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LO2
P3 INTERPRET AND ASSESS RELEVANT DATA AND STATISTICS TO
ILLUSTRATE HOW MICRO BUSINESSES IMPACT ON THE ECONOMY
SMALL BUSINESS
Small business plays a vital role in the growth and development of the economy of the
country. The business includes up to 500 members and has an annual turnover of £ 2
trillion. The business runs for the achievement of profit and for the erection of reputation in
the industry (Goss, 2015).
MICRO BUSINESS
Micro businesses are smaller than small business and have fewer members in the firm. The
yearly revenue of the micro business is £ 2 million and the objective of the firm is earning
income that fulfils the basic need of the individuals (Goss, 2015).
ROLE OF SME IN THE ECONOMIC GROWTH OF THE UK
The economy can be defined as the state of the country in terms of consumption and
manufacturing of goods and services and supply of money. The success and failure of the
country and company depend on the economy and thus the economy impacts the financial
condition of the country. The UK includes approximately 5 million SME that affect the
economy of the country and thus plays a huge role in the economic growth of the country
(Huggins and Thompson, 2017).
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Figure 1: Economic growth
Source: (Huggins and Thompson, 2017)
As per the given data, it is clear that the economic growth of the country totally influenced
by the small and medium-size businesses in the UK. According to the graph, the economic
condition of the UK was not much impressive in the year 2008. After the increment in the
small and medium-size businesses in the UK the economic growth of the country take speed
and became stable with respect to the economy. 99% of the business in the UK are small
and medium companies and thus impacted the economy of the country. In 2016 the
economic rate of the UK is highest with the contribution of SME’s. The small and medium
business hiked the economy of the country and contributed in maintain a good reputation
of the country in the business world (Huggins and Thompson, 2017)
ROLE OF SME IN PROVIDING EMPLOYMENT IN THE UK
Employment is one of the important factors for the economic and overall development of
the country. The success and growth of any country totally depend on the employment rate
that contributes to the improved economy of the country (Clarke and Cominetti, 2019).
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Figure 2: employment growth
Source: (Clarke and Cominetti, 2019)
Employment is a process through which a person earns revenue to fulfil the basic
requirements. The employment is given by the companies for the progress and growth of
the business. The UK consists of 99% small and Medium business industries and thus these
companies play a vital role in providing employment to the needy and skilled people. The
employment rate in the UK in 2009 is low as the number of SME’s was less. After the
increment in a number of SME's in the UK in 2016 people of the UK got employment which
enhanced the employment rate of the country. The SME's contribute to the growth of the
employment rate of the country and thus directly affected the economy of the country in a
positive aspect (Clarke and Cominetti, 2019).
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P4 EXPLAIN THE IMPORTANCE OF SMALL BUSINESSES AND BUSINESS
STARTUPS TO THE GROWTH OF THE SOCIAL ECONOMY
SOCIAL ECONOMY
The concept of social economics is carried out by the organizations and rich diversity of
enterprises such as associations, foundations, cooperatives and mutual. Social economy can
be defined as the process that helps in maintaining a relationship between economics and
social behaviour. The concept helps in determining how the ethics, social norms, social
philosophy and popular sentiments impact customer’s behaviour and helps in shaping
customers buying trend. The process is carried out in action with the help of current events,
history, social sciences and politics that help in gaining the changing information of socialism
and economy (Spear et al., 2018).
IMPORTANCE OF SMALL BUSINESS
In the UK small and medium business covers 99% of the business sector that impact the
socialism and economy of the country. The annual income of the small business is
approximately £ 2 trillion which is a very huge amount and affect the economic rate of the
company. The numbers of employees in the small business are up to 500 whose
performance impact the business and economics of the country and company. Maintenance
of socialism and behaviour within the company helps in maintaining a relationship between
economic and social factor (Spear et al., 2018).
Social entrepreneurs have the potential to resolve the community-based issues by taking
risks and contributes to creating a positive environment within society. Some of the
examples of social entrepreneurship are an educational program, banking services,
microfinance, and helping people to cure of epidemic disease. The goal of a social
entrepreneur is the help the society for balancing the socialism in the country without any
profit of the company. The social entrepreneur comes with the new ideas and innovation
that are implemented for the wellbeing of society and also contributes to the economy of
the country. Social entrepreneurship is a non-profit business and is developed by the
members of the society of a small group. The business works with the help of contributions
and donations. The small business contributes to the social entrepreneur in economic
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