Entrepreneurial Ventures: Public vs. Private Sector Analysis

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Entrepreneurship and Small Business Management
Task 1 (LO1 and LO2)
Student’s Name:
University Name:
Author’s Note:

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Table of Contents
Introduction......................................................................................................................................3
Task 1 (LO1 and LO2)....................................................................................................................3
a) Several types of entrepreneurial ventures with public and private sector and discuss about their
similarities and differences..............................................................................................................3
Scope, development and growth of entrepreneurial........................................................................5
b) Importance of small business on economy..................................................................................6
Impact of small business in social economy with data and statistics..............................................6
Comparison between the impact of small business, and medium and large business in the growth
of social economy............................................................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

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Introduction
In recent times, sudden development in emergence of entrepreneurship has been found within
competitive market. As a part of local council, the task will be to advise the council on several
business policies within the borough. In last year, action has been taken to stop the businesses or
moving away from the borough. However, the action plan has to start the policies for motivating
the exiting companies toward thrive but motivate along with promote the new entrepreneurial
activities. The new company is chosen i.e. Pret a Manger in this report. The recommendation
may support the company that would feasible for running the business. This report will recognise
different entrepreneurial ventures such that scope, improvement and growth can be development.
Moreover, with valuable information and statistics, small entrepreneurial activities will be
identified within this study.
Task 1 (LO1 and LO2)
a) Several types of entrepreneurial ventures with public and private sector and discuss
about their similarities and differences
In business industry, entrepreneurial ventures have been taken the significant place. However, an
entrepreneur is distinct as an individual who starts a business with pioneering ideas to make the
maximum profit and run the industry successfully. Entrepreneurship is estimated as the method
to plan, open and sprint a new business and gain the profit from the cutthroat market. As noted
by Blackburn et al. (2013), entrepreneurship is also contained the risk factors and all the issues
are to be measured by an entrepreneur to face the probable outcomes. On the other hand,
entrepreneurship ventures are differentiated in two sections i.e. public and private ventures, but it
could be separated in many sub-parts.
Firstly, a public project is measured as a business, which mainly control by the government or
citizens. For having the ownership, citizens may have the interest in every public property. It is
non-profitable ventures and mainly set up for the welfare of citizens. As an instance, Municipal
Corporation is estimated as the public ventures, as no profit is earned or if gained it would be
invested to society welfare (Bridge and O'Neill, 2012). In public business, main decisions are

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taken by government, as they are always ready to serve the common people. In every project,
government has acquired the final decisions to create the policy decisions count. As argued by
Carlsson et al. (2013), private ventures are mainly monitored by private people. It may be either
something from sole ownership created towards the public traded sectors. Compared to
government sectors, owners of private industries have a propensity to select the employees and
directors. The profits are disseminated between owners and shareholders. The government has no
effect while running these types of ventures. In case of joint ventures, government could invest a
high amount in the private sectors and these sectors utilize the government policy to gain the
maximum profits.
However, there are many similarities between different entrepreneur ventures. To serve the
customers, public and private both ventures are showing their attention and always ready to solve
their issues. The demands of the customers are different in case of business functions as the
employees and managers in these sectors enormously perform to deliver the high-level service
for them. As opined by Chell et al. (2016), both sectors have a propensity in the process of
change while utilizing latest technology and workforce. It is clear that a change is essential
aspect for every sector as it connects the company with their staffs along customers. To bring the
changes in their structure, new possibility could be explored by the companies. Two ventures
have a similar willingness to spend the moment or share the views concerning connections with
employees (Cowling et al., 2012). However, employees in private and public sector find the win-
win situation as they always look for the better option in their workplace.
Public venture Private venture
Target Major focus is to serve the customers
and solve the issues within a
systematic way.
Focus is to enlarge the profit percentage.
Financial
statement
In case of public ventures, they
enlarge their profits from the
penalties, taxes and duties imposed on
the people.
In private venture, money is gained by
finding the investors or shareholders. For
the large sectors, they are ready to take the
loans from banks.

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Benefits It offers the security in occupation
after retirement and meets up the
essential policies to their staffs.
It gives intense competitive surroundings
for their staffs and provides high incentives
in a special task.
Promotion Based on experience, employees or
managers get the promotion
Promotion is proved concerning the merit
list.
Stability in job Job is steady Always unstable condition
Areas covered Different areas such as army, police,
transport and many other sectors are
served by government.
Technical, education and finance sectors
are mainly composed of private ventures.
Table 1: Differences between entrepreneurial ventures
(Source: Learner)
Scope, development and growth of entrepreneurial
The scope of these types of entrepreneurial ventures is to make the new business policies as it
may create the jobs, enlarge the production and make stronger the market rivalry. There are
several types of private and private ventures. First is the start-ups, as these sectors are established
either by partnership of entrepreneurs or a person mainly accountable for it. Further, this venture
is focused on the small scale as it may expand their business by gaining the profits (Olusegun,
2012). Next one is franchisee, in where an individual collaborates with the authority to run the
business. However, the joint venture initiates with the partnership of two or more companies. To
access the development along with growth, these ventures mainly invest in the products and
services, which people require.
As argued by Read et al. (2016), entrepreneurial ventures mainly access for the services and
products that may be productive in fostering the economical growth. It is very necessary for the
ventures that their management must hire skillful workers to expand the business within
international market. People from several areas may join these organisations as they may resolve
the unemployment issues. The entire lifestyle of workers may develop by giving extra benefits
and global economy enlarges by these organisational activities. The entire production levels
would be going high, as many companies are launching in short period and these ventures may

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be create a huge effect on the overall business (Sahut and Peris-Ortiz, 2014). To the economical
aspect, it may enlarge the revenue and stay connection with global wealth. The Young-tech
companies and start-ups play an important role in employment and it is documented within
contribution of entire production. Moreover, the latest technology would support to endorse
affectivity in products and services that employees require to perform with the help of innovative
applications.
b) Importance of small business on economy
As opined by Scarborough (2016), small businesses are the most significant aspect in case of the
social economy, as it mainly gives at the base level of the society. Additionally, the start-ups and
small business are giving several job opportunities for the culture. It is observed that start-up
companies are running the business successful over others, as it would deal with small business,
but often results within a large prospect. Such types of business have an essential role to act
while supporting a competitive financial system. To give the seedbeds for improvement, it gives
possible to become a planned aspect in local and national economy. Due to this, financial agents
have provided better support to these companies and they easily expand their business in
international market (Shaw and de Bruin, 2013). Small business owners have a tendency to
enlarge their business in several backgrounds, since they pursue for the self-employment. In spite
of this, small business may be essential for the prospect of UK economy. It has a potentiality to
overshadow the large business. In such case, they may not produce that revenue, but may remain
crucial for the economical success.
Small businesses have three methods to promote the economy and it has a propensity to provide
people a chance to motivate innovation, make the employment advantages and economical
sovereignty. Rather, to find the difficulty in economy, companies have to give the resources and
other things as it turn out to be beneficial for the nations. As small businesses play the most
significant character, it also enables the citizen and government to acquire services for
development (Williams and Nadin, 2010). In several countries, large companies are not properly
integrated within society, but small businesses easily make their business functions and
operations. Thus, small and medium sized business has a combined turnover of 5.0 in every year.

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Impact of small business in social economy with data and statistics
Small business is mainly helpful in the flourish of the local economy, in terms of business
growth and development of innovative approaches in business. This helps in the economic
wellbeing as it provides job opportunities to the individuals, mainly to them who cannot be
employed by large companies (Dunne et al. 2016). Besides, these small businesses, or start-ups
are relatively easier for an individual to start, as it usually run with least resources and thus, incur
low risk. The individual can start the business with few members or employees, or it can be run
by self-services, which suggests that the owner do not face much burden in handling the
business. However, there are huge scopes of implementing innovation in the small economy, and
all of these are broadly contribute in the development of the economical improvement.
Figure 1: Impact of small business in the economy
(Source: Eid and El-Gohary, 2013)
From the figure, it has been shown that the small business contributes a large part in the
economy. The market share contributed by the small businesses is more than the medium and
large businesses and these businesses are encompassing more than 90% of the employment in a
country. This means that these kinds of businesses make more scope for employment. Besides, it

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is also clearly observed that the market share and the employment in the small businesses are
increased in the recent time. From the figure, it has been shown that the employments in these
sectors are 5,035,029 in the year 2000, which has been increased up to 5,130,346 in the year
2012. This means that the employments in these sectors are increased, and this suggests that the
contribution of these sectors in the economy of the country is increased over time.
Comparison between the impact of small business, and medium and large business in the
growth of social economy
Figure 2: Comparison between small businesses with large and medium businesses
(Source: Taneja and Toombs, 2014)
From the figure, it is evidently found that the small businesses contributing much in the economy
than that of the medium and large businesses. Micro and small business are more powerful in
contributing the society, so that the medium and large sectors (Hillary, 2017). It has been found
that the percentage of micro businesses in the country UK is 88.2%, and the small sectors in the
country is 9.7%. The micro business comprises the employee of about 0-9 and the small business
comprises about 10-49 employees. The figure shows that the sectors that can employ these
numbers of people makes more market share than the sectors, which employ about 50-249, or the
medium businesses and those which employ more than 250 people. The market share of medium
business sectors are about 1.7% in UK, and the market share of large companies are only 0.4% in

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the sae country. Thus, from this it can be stated that the contribution of small and micro
businesses in the growth of the economy is more important and strong than that of the medium
and large business sectors.
Conclusion
From the above report, it can be concluded that entrepreneurial ventures have taken an important
place in the economy. In era of globalisation, growth of entrepreneurship would be necessary for
every nation. However, it will be cited that economical development works as a main factor for
the corporate enterprises. It can also estimate the future by comprising the growth and
innovation. Labour strength of entrepreneurial characters by attracting the individuals, which
invent new ideas and items to improve the pre-existing one. Therefore, small businesses enhance
the development at the local and national economy for benefitting the global economy.

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References
Blackburn, R.A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development, 20(1), pp.8-27.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: Entrepreneurship and small
business. Macmillan International Higher Education.
Carlsson, B., Braunerhjelm, P., McKelvey, M., Olofsson, C., Persson, L. and Ylinenpää, H.,
2013. The evolving domain of entrepreneurship research. Small Business Economics, 41(4),
pp.913-930.
Chell, E., Spence, L.J., Perrini, F. and Harris, J.D., 2016. Social entrepreneurship and business
ethics: Does social equal ethical?. Journal of business ethics, 133(4), pp.619-625.
Cowling, M., Liu, W. and Ledger, A., 2012. Small business financing in the UK before and
during the current financial crisis. International Small Business Journal, 30(7), pp.778-800.
Dunne, T.C., Aaron, J.R., McDowell, W.C., Urban, D.J. and Geho, P.R., 2016. The impact of
leadership on small business innovativeness. Journal of Business Research, 69(11), pp.4876-
4881.
Eid, R. and El-Gohary, H., 2013. The impact of E-marketing use on small business enterprises'
marketing success. The Service Industries Journal, 33(1), pp.31-50.
Hillary, R., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Olusegun, A.I., 2012. Is small and medium enterprises (SMEs) an
entrepreneurship?. International Journal of Academic Research in Business and Social
Sciences, 2(1), p.487.
Read, S., Sarasvathy, S., Dew, N. and Wiltbank, R., 2016. Effectual entrepreneurship.
Routledge.

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Sahut, J.M. and Peris-Ortiz, M., 2014. Small business, innovation, and entrepreneurship. Small
Business Economics, 42(4), pp.663-668.
Scarborough, N.M., 2016. Essentials of entrepreneurship and small business management.
Pearson.
Shaw, E. and de Bruin, A., 2013. Reconsidering capitalism: the promise of social innovation and
social entrepreneurship?. International Small Business Journal, 31(7), pp.737-746.
Taneja, S. and Toombs, L., 2014. Putting a face on small businesses: Visibility, viability, and
sustainability the impact of social media on small business marketing. Academy of marketing
studies journal, 18(1), p.249.
Williams, C.C. and Nadin, S., 2010. Entrepreneurship and the informal economy: An
overview. Journal of Developmental Entrepreneurship, 15(04), pp.361-378