Entrepreneurial Ventures in Public and Corporate Sectors: A UK Focus

Desklib provides solved assignments and past papers to help students succeed.

1
Entrepreneurship and Small Business Management

2
Table of Contents
Introduction.................................................................................................................................................3
Part 1 (LO1)................................................................................................................................................4
P1, M1: Diverse range of entrepreneurial ventures in both the public and corporate sector....................4
P2: Similarities and differences between entrepreneurial ventures..........................................................6
D1: Scope, development and growth of entrepreneurial ventures............................................................7
Part 2 (LO2)................................................................................................................................................8
P3: Interpretation of the relevant data and statistics to determine the micro and small businesses impact
on the economy.......................................................................................................................................8
P4: Importance of small businesses and business start-ups to the growth of the social economy..........10
M2: Differences made by small, medium and large businesses to the UK’s economy..........................10
D2: Impact of small businesses on different levels of the economy in a local, regional, national and
international context..............................................................................................................................12
Part 3 (LO3)..............................................................................................................................................14
P5, P6: The characteristic traits and skills of successful entrepreneurs (Alan Sugar), and reflection of
his entrepreneurial motivation and mindset...........................................................................................14
M3: Different lines of argument relating to entrepreneurial characteristics...........................................15
D3: Characteristic traits, skills and motivational drivers of successful entrepreneurs, supported by the
example of Professor Muhammad Yunus..............................................................................................15
Part 3 (LO4)..............................................................................................................................................16
P7: Impact of background and experience on entrepreneurship.............................................................16
M4: Link between entrepreneurial characteristics and the influence of personal background and
experience to specific successful entrepreneurs.....................................................................................16
D4: Positive and negative effect of personal background and experience on the entrepreneurs by
comparing Alan Sugar and Muhammad Yunus.....................................................................................17
Conclusion.................................................................................................................................................18
References.................................................................................................................................................19

3
Introduction
Entrepreneurship refers to a way to introduce a new business by considering diverse risks related
to it, in order to provide something new to the world, and earn value. In this context, the
following report has been prepared to provide a brief yet useful understanding of the importance
of entrepreneurship. For the purpose, the report has been divided into four parts. While the first
part deals with different ventures of entrepreneurship, the second part discusses the growth and
development of social economy of UK due to the presence of micro and SMEs. The third part
highlights the key traits and qualities of a successful entrepreneur by taking the examples of Alan
Sugar, and Muhammad Yunus. Finally, the fourth part evaluates the the association between
entrepreneurial characteristics and the influence of personal background and experience on the
success of an entrepreneur.

4
Part 1 (LO1)
Introduction of “Entrepreneurship”
The concept of entrepreneurship has developed has changed and has become more complex with
the change in global economic structure over the time. Basically, an entrepreneur is the one who
assumes and manages the risks of an enterprise or business. An entrepreneur acts as an agent of
change. These individuals identify the opportunities in the situations where others find confusion
and chaos (Kuratko et al., 2015). In this view, entrepreneurship refers to an art of being an
innovator or initiator who introduces new things in the form of any start-ups, such as establishing
a new business. Entrepreneurship creates value by contributing significantly to the development
and growth of the national economy.
P1, M1: Diverse range of entrepreneurial ventures in both the public and corporate sector
In a corporate sector, entrepreneurship is referred to as a business which is owned privately, and
operates to make profits. On the other hand, public sector entrepreneurship is owned by the
government, and provides government services to the public. In both the sectors, there exist four
types of entrepreneurial ventures:
Small Business Entrepreneurship:
These ventures include small start-ups like hairdressers, carpenters, electricians, grocery stores,
and travel agents. Since small businesses have limited resources, they usually employ family
members or local employees. The aim of such ventures is to earn high rate of return, and their
source of finance include loans from family and friends.

5
Scalable Startup Entrepreneurship
Scalable start-ups are temporary organization created to search for a repeatable and scalable
business mode. These entrepreneurs operate business with a vision to transform the world by
hiring best people (Navis, and Ozbek, 2016). For expansion purposes, they source funds from
equally dedicated financial investors.
Social Entrepreneurship
Social entrepreneurs are those innovators who attempt to design products and services to solve
the needs and issues of the community (Sarwoko, and Frisdiantara, 2016). They aim to transform
the world into better place, rather struggling for the take market share or maximizing wealth for
the shareholders. Social ventures can be for profit, not-for-profit, or hybrid.
Large Company Entrepreneurship
These ventures have limited life line, and they develop through continuous innovation by
offering something new to the world. The factors affecting such ventures include changes in
customer preferences, entrance of substitutes, rivalry, new technologies, and government
policies.
Typology of entrepreneurship:
Lifestyle Entrepreneurs
These entrepreneurs operate business not for the purpose of earning profits but for changing the
lifestyle. They emphasize mainly on the life, and act with passion for achieving the success.
Growth Entrepreneurship

6
The Growth Entrepreneurship, on the other hand, is a composite factor of entrepreneurial
business growth that captures the growth opportunities in all sectors and assesses business
growth from job as well as revenue perspectives (Kuratko et al., 2015).
P2: Similarities and differences between entrepreneurial ventures
The similarities between entrepreneurial ventures include:
 In the corporate as well as public sector, the managers are responsible in the running
business, and designing of policies and strategies.
 Both the corporate and public sectors are consumer-centric because their survival
ultimately depends on meeting the consumer needs and requirements.
 The public and corporate organizational managers are also concerned with hiring top
personnel so as to obtain the competitive edge.
Differences between various entrepreneurship ventures include:
Small business
enterprises
Large business
enterprises
Scalable startup
entrepreneurship
Social
entrepreneurship
defined goals
and objectives, and
have less resources to
achieve profitability
and growth.
(Sarwoko, and
Frisdiantara, 2016)
purpose is to compete
in the industry by
creating new products
or services and
promotional tactics.
aims to offer
innovative
products
constantly and
earn more
profits for
investors
aim to sell quality
products or services for
the welfare of the
general public.
Low risk Medium risk High risk Lower risk as these are

7
backed by government
No defined
organizational
structure
Complex
organizational
structure
Mainly corporations
or limited
partnerships.
Trustee based
organizations(Sarwoko,
and Frisdiantara, 2016)
D1: Scope, development and growth of entrepreneurial ventures
The development, scope, and growth of the above entrepreneurial ventures differ with the
purposes of their businesses. These organizations can sustain in the market only if they are
successful in providing products or services that can serve the customers’ needs from time to
time. Their growth and development largely depend on the processes used by them in the
business operations, and on how the concerns of the consumers are addressed (Elmagrhi et al.,
2017). The entrepreneurship ventures highly emphasize on altering their products and services as
per the latest market demands and trends. With the decrease in the effects of recession in the
market, the scope of all types of entrepreneurial ventures is increasing continuously. This is
mainly because of their ability to create more job opportunities, and resources for the progress of
the nation.

8
Part 2 (LO2)
P3: Interpretation of the relevant data and statistics to determine the micro and small
businesses impact on the economy
In UK economy, the micro and small businesses have a larger market share, and they contribute
highly to the growth of the UK economy. Since the recent decades, the number of micro and
SMEs businesses has been rising, and adding to the gross domestic product of the nation by
earning high revenues (Blackburn, 2016). According to the report of year 2017, more than 4.9
million micro and small enterprises have set up across the UK, which accounts for almost 99%
of the total businesses in the economy.
(Elmagrhi et al., 2017)

9
These enterprises are basically classified as exporter, importer, innovator, and non-innovator. In
SMES, the maximum number of employees is 250, and 9 employees in micro business
enterprises (Blackburn, 2016). Also, a large number of micro firms do not implement latest
technologies. It implies that SMEs are generating more employment than micro firms, in the
country.

10
(Loader, 2015)
P4: Importance of small businesses and business start-ups to the growth of the social
economy
The small and start-up businesses have a significant impact on the growth of social economy of
every country. These businesses usually come up with innovative ideas related to processes or
products/ services which can effectively fulfill the social needs all the time. They also grab a
larger share in the industry quickly, and produce a high level of profitability in a short period
than large firms. Since many of the start-ups are seek to resolve a current social problem like
employment, by devising creative solutions (Loader, 2015). That is why such businesses create
an immediate positive impact in United Kingdom by proving 2/3rd of the total corporate jobs.

11
A number of start-ups are linked with various types of CSR practices in order to address the
environmental, economic, and social problems, and improve the brand value. For instance, some
enterprises aim to impart education to the poor children in rural regions so as to prepare them to
earn livelihood (Burns, 2016). Some small firms have a vision to deliver medical services to the
needy who cannot afford expensive treatments. In this way, the micro and SMEs ensure the
dynamism and prosperity of the UK economy.
M2: Differences made by small, medium and large businesses to the UK’s economy
In UK, the number of small, and medium, businesses is higher in comparison with the large sized
firms. Nonetheless, the large sized businesses make higher revenue by offering high quality
goods and services, and developing their brand name in the market. Many of these businesses
have branches in foreign countries as well, which increases their profitability in foreign
currencies (Elmagrhi et al., 2017). These firms have various operational functions as a result of
which they required to hire large number of employees as compared to SMEs. In addition, they

12
also invest more on the CSR programs to get loyalty and trust of society.
(Gray and Jones, 2016
On the other hand, SMEs emphasize mainly on delivering innovative goods in order to enhance
their customer base. They also export more, and provide jobs to the local people, which
ultimately reduce the unemployment rate in the UK (Burns, 2016). These organizations have
gained a relatively larger part in almost every sector by contributing highly to the GDP rate.