Entrepreneurial Ventures, SMEs, and Economic Growth: A UK Focus

Desklib provides past papers and solved assignments for students. This report analyzes entrepreneurial ventures and their economic impact.

Entrepreneurship and Small Business Management
1

Table of Contents
Introduction...................................................................................................................... 3
LO1 (P1, P2).................................................................................................................... 4
LO2 (P3, P4).................................................................................................................... 5
LO3 (P5, P6).................................................................................................................... 6
LO4 (P7)...........................................................................................................................7
Conclusion....................................................................................................................... 8
Reference list................................................................................................................... 9
2

Introduction
Entrepreneurship is the ability of starting a new business and running the business
successfully in a market place. Entrepreneurship is associated with range of
calculated risks. People those who have this ability of starting as well as running a
business and making profit from the business is known as entrepreneur. Successful
entrepreneurs are great passionate to business activities.
This paper will outline different types of entrepreneurial ventures and significance of
SMEs in economic and social development. Additionally, the traits and characteristics of
successful entrepreneurs will also be represented in this portion of the study for better
consideration of the project.
3

LO1 (P1, P2)
Explore and illustrate the range of venture types that might be considered
entrepreneurial.
P1 Examine different types of entrepreneurial ventures and explain how they
relate to the typology of entrepreneurship.
Introduction
In this portion, different types of entrepreneurial ventures will be evaluated along with
their relationship to the typology of entrepreneurship.
Entrepreneurship is about starting a business and managing as well as successfully
continuing the business in a selected market (Drucker, 2014). Entrepreneurs are those
responsible persons who have the courage and ability to continue business and
generate profits from a start up business (MacGaffey, 2014).
Different types of entrepreneurial ventures are as follows:
Individual entrepreneurship
A single person refers this type of entrepreneurship to starting a new business and the
single person would be responsible for taking all the business risks. It is also known as
lifestyle entrepreneurship as it focuses upon bringing positive improvements in their
lifestyles.
Corporate entrepreneurship
This type of organizations is interested business expansion in order to generate higher
amounts of profit (Kuratko et al., 2014). They are aimed at increasing the market
shares. Other name of corporate entrepreneurship is intrapreneurship.
Public sector entrepreneurship
This type of sectors are maintained and undertaken by government bodies. Government
is responsible for taking vital business decisions within the public sector
entrepreneurship and they are aimed at bringing positive changes within the society
(Leyden, 2016).
Entrepreneurial ventures are helpful to entrepreneurs to begin a new business, multiple
types of entrepreneurial ventures are as follows:
Start up
4

Start-up companies are new to market and have single owner, who is responsible for
taking all business decisions, generally owns this type of business. It mainly focuses
upon generating higher amounts of business profits.
Acquisition
Acquisition is the process of buying a company by another organization. It is a costly
process of starting a new business. However, it is less risks in nature. Additionally, both
of the individual entrepreneurs or the corporate sector firms can use this method of
acquisition.
Joint venture
In this type, two or more two organizations pool their resources and expertise for
improving their business functions and generating higher amounts of profits in business.
In joint venture, owner of both organizations are bound to follow regulations that are
mentioned in the contract paper (del Mar Benavides-Espinosa and Ribeiro-Soriano,
2014).
Public private partnership
Public and private organizations make partnership for bringing in better services for the
public residing in a nation. Manly, public sector companies and government bodies
follow this type of entrepreneurial ventures.
Another important consideration is typology of entrepreneurship. Star-up companies are
the typology of individual entrepreneurship as both are generally run by single
individual. Both are aimed at generating profits for improving the overall business
structure. Joint ventures and acquisition are the typology of corporate entrepreneurship.
All these are aimed at expanding the existing business to new location for generating
high amount of revenues in business.
Conclusion
It can be conceded that there are several types of entrepreneurial ventures those have
relation to the typology of entrepreneurship.
P2 Explore the similarities and differences between entrepreneurial ventures
Introduction
5

Different types of entrepreneurial ventures have similarities and dissimilarities among
them that will be discussed in this portion of the study.
Basis of difference Lifestyle ventures High growth
ventures
Small profit
ventures
Employees Number of
employees is limited
and often conducted
all business
activities by single
owner (Markantoni
et al., 2014).
Wide range of
employees performs
for growth of the
ventures.
Family members
and other limited
employees perform
in small business
organizations.
Profit margin
earned
This venture is
aimed at
accelerating the
business profits of
the organization
through improving
the lifestyle of
individuals
These organizations
perform to make
higher revenue and
more business
profitability.
Small businesses
also work to
generate profits. But
they mainly focuses
upon increasing
profits and business
structure
simultaneously.
Growth
opportunities
Lifestyle ventures
have limited scope
of growth compared
to other types of
ventures.
It has high growth
opportunities.
Small ventures have
the highest growth
opportunities in
current and
upcoming days
(Flatten et al.,
2015).
Table 1: Differences between different types of entrepreneurial ventures
(Source: Created by learner)
6

Apart from this, there are multiples similarities also can be noticed among these
different types of entrepreneurial ventures that are as follows:
 Entrepreneurial ventures are innovative and they use their own idea to modify
their products innovative. All entrepreneurial ventures are aimed at adopting
innovation to bring positive changes in their firms.
 Compared to normal business ventures, entrepreneurial ventures are likely to
take calculated risks for generating higher revenue.
 Entrepreneurial ventures conduct a range of promotional activities to gather
attention of wide range of target audience. Target audience may differ with the
change in types of entrepreneurial ventures.
Inrapreneurs and social entrepreneurs are completely different. Social entrepreneurs
are those who do business with a social purpose. Social entrepreneurs are aimed at
improving the social condition and in this process. Government bodies fund them
(Germak and Robinson, 2014). Intrapreneurs are those people who have the aim of
generating high profits in business. Generally, they do not focus upon other things,
instead of generating profits. They do not contribute for the social development.
Conclusion
It can be conceded that there are multiple similarities and dissimilarities among different
types of entrepreneurial ventures that have been detailed in above portion.
7

LO2 (P3, P4)
Assess the impact of small business on the economy.
P3 Interpret and assess relevant data and statistics to illustrate how micro and
small business impact on the economy.
Introduction
This portion will shed light on significance of SMEs in improving the economic and
social condition of UK. Statistics and data will be provided as well.
In UK, 99% of the business organizations are start-up organizations that are listed in
private sector firms. It is needless to say that, SMEs are the actual backbone of UK
business industry those are the highest contributor to growth of national economy and
social development. SMEs are influencing profit rate, employment rate and turnover that
are indirectly benefiting the UK economy. According to market researchers, SMEs have
created gross employment opportunity across the UK premises that has resulted in
enhanced employment rate by 3.4% compared to previous year statistics (Ward and
Rhodes, 2014). Compared to SMEs, large and medium size organizations contribute
less towards growth and development of UK economy and social condition.
Figure 1: Number of persons employed in SMEs
(Source: Loader, 2015)
In private sector across UK premises, business population has been decreased by
0.5%, where the employment rate has been increased by over 2%. In UK, SMEs are
responsible for providing over 16.3 million jobs to UK citizens those have improved their
life-leading style as well. The combined annual turnover of SMEs is almost £16.2
8

trillion that is 60% of the total income of UK business industry. More than 50% of the
job opportunities are carpeted by SMEs in different regions of UK (Daunfeld et al.,
2014). Overall, the SMEs are regarded as the important asset of UK business industry
and the major contributors to national economic development as well.
Conclusion
It can be concluded that SMEs are the highest contributor to the social and economic
development of UK premises. Multiple statistics and data have been provided to support
the statement.
P4 Explain the importance of small businesses and business starts-ups to the
growth of social economy
Introduction
This portion will evaluate the significance and contribution of SMEs in improving the
social condition across UK premises.
Social economy is regarded as one of the most important aspects of country economy.
As per the consideration of Love and Roper (2015), SMEs are the main engine and
backbone of UK economy. These SMEs are the real contributors and they contribute for
social development as well. Combined annual income of SMEs is high and this figure is
60% of the total income of UK business industry. Moreover, 99% business industry is
listed in private sector organization and SMES are creating gross employment
opportunity to provide more job opportunities to citizens and improve their life leading
style effectively. This employment rate has been increased by 3.2% that is good for
economic and social development. High employment rate is necessity for bringing
positive changes within the society. SMEs have created gross job opportunities and
helping the society to increase their standard and develop community. Apart from this,
several organizations such as Brutecia contribute their profit shares for the growth and
development of the community.
Corporate social responsibility is another key consideration in social economy.
Companies those are conducting business across the UK premises are bound to follow
the CSR. SMEs are involved in CSR activities, while large firms are showing less
9

interest in this kind of activities. Through these CSR activities, SMEs are improving
image of the brand transparency in the nation as well as the social condition of the
country that is main consideration. In order to attain sustainability in the market, multiple
SMEs across the UK premises have come-up with different but effective CSR plans.
Conclusion
It can be concluded that SMEs contribute for the growth and development of the social
development. Multiple statistics related to the topic has been provided for better
consideration of the project.
10

LO3 (P5, P6)
Determine and assess the key aspects of an entrepreneurial mindset.
P5 Determine the characteristic traits and skills of successful entrepreneurs that
differentiate them from other business managers.
Introduction
Entrepreneurs have special skill, traits and characteristics that will be explained in this
study.
Entrepreneurs have different skill set, characteristics and traits that other do not have.
Skills refer to individual’s special ability, which other feel hard to do. On the other hand,
personal characteristics refer to the personalities qualities of an individual. Successful
entrepreneurs like Richard Branson, Alan Sugar and others are the most successful
British entrepreneurs those all have special traits and characteristics.
Different skill set of a successful entrepreneur is as follows:
 Entrepreneurs are inborn risk takers. All the successful entrepreneurs are
likely to take calculate risk for generating higher amount of business profits.
 Entrepreneurs are creative and innovative. This innovative and creative
decision making capability differentiate them from ordinary managers.
 Entrepreneurs have visionary capability so that they can judge the
performance of a business more effectively (Obschonka et al., 2017).
 Entrepreneurs are effective in communication so that can motivate
subordinates effectively and solve difficult organizational issues just through
their communication.
Different characteristics of entrepreneurs are as follows:
 Entrepreneurs are always positive minded and motivated all the while. They
know how to keep them motivated and confident during critical organizational
challenges.
 Successful entrepreneurs such as Richard Branson are likely to compete with
rivals those are in big size. This allows them increasing their business
performance level in most effective manner.
11

 They set another business goal just accomplishing one. Entrepreneurs are
never happy and they always have the hunger of grabbing the next business
opportunity to bring positive changes in their firms (Gedik et al., 2015).
 Entrepreneurs are always confident regarding their performance. Self-
confidence of entrepreneurs is needed for accomplishing their targets.
Conclusion
It can be concluded that managers and entrepreneurs are completely different. Special
skills, traits and characteristics of entrepreneurs have made them different from ordinary
managers.
P6 Assess how aspects of the entrepreneurial aspects personality reflect
entrepreneurial motivation and mindset
Introduction
In this study, different entrepreneurial aspects will be evaluated those reflect on
entrepreneurial mindset and motivation.
Successful entrepreurs have diverse mindset compared to ordinary managers. Few of
them are as follows:
 Successful entrepreneurs are positive thinker, who has the ability to handle any
kind of critical situation keeping their mind cool and positive (Mauer et al., 2017).
Additionally, this positive mindset of entrepreneurs helps them to create positive
work environment as well.
 They are opportunity seekers. Successful entrepreneurs have such mindset
that they seek opportunity in every business aspect and try to use those
opportunity in development of their businesses.
 They are great decision-makers. Successful entrepreneurs have effective
mindset that helps them to make quick positive decision in short time (Neck et
al., 2017).
 They are responsible and they have impressive mindset of leading and
motivating an entire workforce towards set organizational goals.
12