Entrepreneurial Ventures, Skills, and UK Economy Analysis Report

This report delves into the multifaceted world of entrepreneurship, exploring various types of entrepreneurial ventures, including small businesses, scalable startups, and social enterprises. It examines the relationship between these ventures and entrepreneurial typology, highlighting the characteristics and differences between them. The report further analyzes the impact of micro and small businesses on the UK economy, emphasizing their significance for social and economic growth. It differentiates between the traits, skills, and characteristics of successful entrepreneurs and business managers, illustrating how entrepreneurial personalities reflect their motivations and mindsets. Furthermore, the report discusses how background and experience can influence entrepreneurial endeavors and concludes with a comprehensive overview of the subject matter, supported by references.

Entrepreneurial and
Small Business

EXECUTIVE SUMMARY
Entrepreneur and small business management plays a vital role in business growth and
development as they seeks for constant innovation in order to gain competitive advantage. This
report covers various types of entrepreneurial venture and its relation with its typology, impact of
micro and small business on UK economy. Finally, how entrepreneur are different from
managers with the help of examples from local, social and international successful entrepreneur.

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1 Types of Entrepreneurial venture and their relationship with typology of entrepreneurship 4
P2 Similarities and difference between Entrepreneurial venture ........................................7
TASK 2............................................................................................................................................9
P3 Impact of micro and small business on an economy.........................................................9
P4 Importance of small business and startup companies for growth of social economy.....13
TASK 3..........................................................................................................................................15
P5 Characteristics, traits and skills of successful entrepreneur and differentiate them with
business manager..................................................................................................................15
P6 Entrepreneurial personality reflect their motivation and mindset ..................................19
TASK 4..........................................................................................................................................20
P7 Background and experience can hinder and foster entrepreneurship .............................20
CONCLUSION .............................................................................................................................22
REFERNCES ................................................................................................................................23

INTRODUCTION
An entrepreneur is an individual who has an ability or capability to establish, organize,
manages an entire operation or function of an enterprise as well as assumes all risks and reward.
Moreover, entrepreneur is regarded as an essential tool for economic development or growth as
they take initiative to identify or analyses business opportunity and adapts innovative technology
which leads them to attain high profitability ratio (Baum, Frese and Baron, 2014). Likewise,
entrepreneurship is the act of entrepreneur who establishes and run a business like small business
with an aim of generating maximization of profit with an optimum utilization of resources.
Along with this, one of their main function which makes them differ from business manager is
function of innovation and risk bearing as they attempt to recognize business opportunities and
bears all risk through communicative and management skills. This report covers several types of
entrepreneurial venture and their relationship with typology of entrepreneurship, similarities and
differences between entrepreneurial ventures. Moreover, influence of micro and small business
on an economy, to the growth of social importance of small business and startup to the growth of
social economy. Finally determination of characteristic, trait and skills of successful entrepreneur
and distinguish them from managers.
TASK 1
P1 Types of Entrepreneurial venture and their relationship with typology of
entrepreneurship
Entrepreneur
It is a person who sets up the business who see possibilities and solutions by
implementing effective business decisions with an aim of generating profit. Along with this, an
entrepreneur examines or evaluate the current and emerging trends of market and come up with
innovative or creative product which enable them to meet out the customer need or demand as
well as attain high proficiency.
Entrepreneurship: It is a process of creating an innovative or creative establishment for the
purpose of gain or growth under condition of risk or uncertainty.
Enterprise

It is a formation of two or more individuals who come together with an aim of generating
profit with optimum utilization of resources.
Entrepreneurial Venture
They are regarded as catalyst of economic growth and the driving force which aide’s
enhancement and development as well as restricting wealth and economic resources.
Furthermore, it mainly concentrates on placing innovation and opportunism at its heart in order
to produce economic or social value (Burns and Dewhurst, eds., 2016). Along with this, each
entrepreneurial venture differ in aspect of their size, scope, purpose and they work towards to
achieve organizational pre -determine goal. However, each entrepreneurial venture is classified
into various types like small, medium, large companies and many more. The different types of
entrepreneurial venture is described below:
Small business entrepreneurship: It is an independently owned and operated for profit
enterprise which is not dominant in this field as well as it contains less numbers of employees to
achieve organizational goal or objective (Types of Entrepreneurship. 2019). Along with this, the
revenue generation are not much and these company continuously focusing on getting more
clients and development of its product and services. Moreover, it is also operated by family
members and with friends as partner and they also provide innovative products or services and
grow exponentially.
Scalable Startup Entrepreneurship: It is categorized as high growth company as it
signifies as a young and innovation based firms who has the potentiality to create a new market
or dramatically change an existing market through proprietary, technology based products and
services. Along with this, these organizations look for brightest mind for business and they tend
to set up scalable business model and they contributes their best part for economic development
by providing enormous job opportunities.
Large Company: It contains finite life cycle as they mainly focus on providing new
products or services to customers for sustainability and longevity of business. However, demand
of customers and trends eventually differs along with competition, legislation which forced large
firms in disruptive innovation and develops new products for new marketplace (Burns, 2016).

Social entrepreneurship: These business are mainly established to built an innovative
solutions in order to make the world a better place as their main goal is to maximizing social
impact in a sustainable way. It involves those business who solve community or societies health
issues, improves life standard and safeguard their rights for bringing high level of satisfaction.
Typology of entrepreneurship
The various types of typology of entrepreneur within an industry is given below:
Survival Firms: The basic goal of this venture activity is to survive and meet the
venture's financial obligations. Many startup ventures engage in survival entrepreneurship where
their long term goal is to stay in business and thus they are characterized by cutting cost, laying
off employees, mindset of preserving present state of affairs etc. in order to gain competitive
advantages in an innovative and creative manner.
Lifestyle Firms: These firms are formed to carry out the activity in which an owner of the
company enjoys or secure a stage of activities that constantly generates revenue at same pace.
Moreover, in this firm an entrepreneur seeks to gain more life reward by providing effective
service to people and have a passion for what they are doing. For e. g. Lifestyle entrepreneur
mostly found in hospitality or tourism sector, where owners only constrained to provide
hospitality service to customers with less motivated to the growth.
Managed growth Firms: These entrepreneur are opposite form of lifestyle firm as they
are created by genuine entrepreneurs in which their main aim is to grow further and multiply
profit. Furthermore, in these firm entrepreneurs are more concentrate on marketplace having
potential to provide opportunities in the form of product selling and services acquiring in order to
manage or attain sustainability profit among industry. For e. g. Tesco is well known for its
flexibility as they always make use of all possible platforms which lead them to attain high
profitability ratio.
Aggressive growth Firms: They are considered as those types of firms who always seeks
for an platform to enhance their productivity by applying novel ideas and aggressive marketing
tactics. Moreover, this growth firms are more eye – catching to potential investors, such as
investors are eager to invest in their business venture capital investment, possible mergers and
acquisitions, private equity transactions or initial public offerings. Therefore, it is conformed that

growth firms are also considered to be the economic engines of society as they not only grow
within themselves but they seed creation of many other products or services which is beneficial
for other industries and firms also.
Public sector entrepreneurship: They are regarded as innovative public policy initiatives
which encompasses the whole set of activity that is adapted and developed by local, regional and
national authorities to assist self – employed entrepreneurs to start their own business as well as
help them through the developed networks in order to promote economic growth. For e. g.
NHS , a reputed public enterprise whose centering point is to provide good medication facilities
in order to keep communities or societies healthy and fit.
Social Entrepreneurship: This kind of entrepreneurship primal concept is to solve
different social problems by delivering best quality of products or service. It contains different
types such as profit, non-profit and hybrid whose main objective is to enhance the lifestyle of
community or society as well as eradicate the poverty by enormous job opportunity. For e. g.
Oxfam whose main aim is to eradicate poverty and injustice and render communities a safe and
justice world which add value to company's brand image.
P2 Similarities and difference between Entrepreneurial venture
Each and every entrepreneur has unique roles and responsibilities but their main goal or
aim is to obtain maximization of profit with an optimum utilization of resources. Some of the
differences between different types of entrepreneur are as follows:
Basis Survival Life Style Managed growth Aggressive
growth
Managerial focus In this firm,
entrepreneur 's
main concern is
to sustain in the
marketplace for
longer period of
time by
Under this,
entrepreneur main
focal point is to
live their ideal
life while running
a successful
business.
This type of
entrepreneurial
firm are mainly
concern to
enlarge their
proficiency ratio
as well as
These firms are
very much
familiar with the
concept of
aggressively
allocation of fund
as they mainly

reinvesting profit,
saving cash and
tightening profit
margin through
anticipating
current and
emerging trend
within an industry
etc.
Moreover, their
ultimate aim is
not just to earn
profit but rather
they are highly
passionate to
pursue those
business in which
their interest level
is so high and it
leads them to
attain high
productivity.
generate income
and again invest
the portion of
income in their
business to
acquire more
growth and
development.
centring on
capital growth by
investing largely
in stocks like
public initial
offerings,
corporate bonds
etc.
Managerial style They mainly
follows
democratic
leadership style as
their main focus
is to survive for
linger period of
time.
In this,
entrepreneur
implies sole
proprietorship
style where owner
is responsible for
all loss and gain.
It applies
democratic style,
as it manage or
carry off their
business for
within existing
marketplace.
It pursues
autocratic style as
they are regarded
as proactive
rather than
reactive nature.
Exit approach Liquidation
approach
Mutual agreement Voluntary
winding up
Court
Economic
motives
Sustainable
earning
Desire to pursue
in which they are
interest
Equal distribution
of wealth among
stag
High amount of
profitability
Similarities between entrepreneurial ventures

Although, each entrepreneurship are different from each other in various aspect like in
goals or objective, risk, size, vision etc. yet they contain some similar factor which makes them
inseparable from each other. Some of the similarities of entrepreneurial venture is mentioned
below:
 Creative ideas : Each of entrepreneurship ventures basic elements for their growth and
development is to adapt innovation and creativity in order to gain competitive advantage
(Fayolle, Liñán, and Moriano, 2014).
 Creating a brand name: It is such kind of factor which entrepreneur cannot deny for
achieving their organizational per-determined goal. However, this factor enables the firm
to make use of all possible platforms and satisfy customer need which enhance the
volume of sales as well as improves company's brand image in effective way.
 Strong willed entrepreneur: It is considered as the foundation for each and every
entrepreneurial venture’s growth and sustainability within the marketplace. Thus, the
main aim of entrepreneur behind establishing an enterprise is to make profit in an
effective and efficient manner.
 Constant innovation: Every entrepreneurial venture’s main focal point is to adapt all
possible business opportunities and always be flexible in nature to introduce innovation
in order to attain sustainable profitability. Therefore, an entrepreneurial venture are
regraded as essential element for the growth of economy as they acquires novel or
innovative ideas as per the market trends which add value to nation's GDP rate as well as
enlarge firm's brand image.
TASK 2
P3 Impact of micro and small business on an economy
Micro Business
It is regarded as those firms which is formed by five or fewer employees than that and it
contain annual sales and assets valuing less than £250000 per year.
Small Business

It is identified as a profit enterprises which is independently owned and operated and it
requires 500 or fewer manpower for its formation.
In every industry, the micro and small business captures a higher part and contribute
highly in economy of country. The number of micro and small enterprises is increasing over time
that generate high revenue by offering different products or services to customers. Along with
this, they generate positive impact on community or society and improves their life standard by
rendering them best quality of product or services. Moreover, they may not generate as much
revenue individually as large corporations but they are vital to success of economy. There are
three main primary ways which small and micro businesses contribute to our nation which are as
follows:
Employment opportunity: Micro and small business plays a vital role in enhancing the
life style of community or society as they provide enormous job opportunities i.e. 99.3 million
people and improves the potentiality in an effective way. By this, they can attain higher level of
proficiency and can add value to their employees or customers (Hatten, 2015).
Encourage innovation: Both the business i. e. micro and small business takes initiative in
identifying the business opportunities and adapts innovative or latest technology in order to
enrich firm’s volume of sales as well as high level of efficiency.
Enrich economic growth: They have a huge contribution towards the enhancement of
country’s economic development as it provide various platforms for employment, acquires
innovation and creativity for their business operation or function. These activities leads to
enrichment of economic condition as well as improves the GDP rate which provides higher level
of satisfaction among customers.

Although micro and small firms contains less resources but yet are regarded as one of the
fastest growing industry and plays a primal role in enhancement of economy (Essential Facts
You Should Know about SMEs in the UK, 2019). However, they plays a vital role in enhancing
the economic condition of UK as the foremost thing is , it generated high employment
opportunity i. e. 99.3%. Along with this, they encouraged company to adapt innovation and
creativity which is also regarded as one of the main source of economic growth of UK in an
effective and efficient way.
On the basis of employment:
When it comes to business growth, small and micro business are contributing their huge
effort towards economy growth. However, it provides a enormous employment platforms i. e. it
employ 16.3 million people in UK which directly enhances or enrich the economy condition and
improves the life standard of community or society.
On the basis of turnover:
It is consider as one of the main metrics that springs to mind while measuring economic
contribution. Moreover, in the year of 2018, small and micro business put their best effort to
reduce the turnover rate by 2.0 trillion in which 52% are private sector's overall turnover.

Interpretation: From the above stated graph, it has been noted that from the past 18 years there
has been large changes in UK private sector business. However, in the year of 2000, 3.5 million
people were involved private sector and it increases by 5.7 million people in the year of 2018.