Entrepreneurial Ventures and the UK Economy: A Report

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ENTREPRENEURSHIP AND
SMALL BUSINESS
MANAGEMENT

TABLE OF CONTENTS
Introduction......................................................................................................................................4
LO 1.................................................................................................................................................2
P1 Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship.......................................................................................................2
M1 Investigate a diverse range of entrepreneurial ventures to demonstrate an understanding of
entrepreneurship in both the public and corporate sector............................................................3
P2 Explore the similarities and differences between entrepreneurial ventures...........................3
LO 2.................................................................................................................................................6
P3 Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on the economy................................................................................................................6
M2 Evaluate the differences small, medium and large businesses make to the economy,
applying relevant data and statistics............................................................................................8
P4 Explain the importance of small businesses and business start-ups to the growth of the
social economy............................................................................................................................8
LO3................................................................................................................................................10
P5 Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers..........................................................................................10
M3 Explore and examine different lines of argument relating to entrepreneurial characteristics
...................................................................................................................................................11
P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mindset................................................................................................................................12
LO 4...............................................................................................................................................13

P7 Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship........................................................................................................................13
M4 Analyze the link between entrepreneurial characteristics and the influence of personal
background and experience to specific successful entrepreneurs..............................................14
Conclusion.....................................................................................................................................15
References......................................................................................................................................16

LIST OF FIGURES
Figure 1: Growth in the UK private sector business by number of employees...............................6
Figure 2: Average profit of those SMEs that earn turnover of less than £ 25 million.....................7
Figure 3: Private sector businesses in the UK.................................................................................8

Introduction
The present report highlights the typology of various entrepreneurial ventures along with the
similarities and dissimilarities among them. In addition, what role SMEs and medium enterprises
play in the economic prosperity of UK is discussed with the evidence of statistical data. Out of
the successful British magnate, examples of Peter Jones and Alan sugar is discussed along with
their traits, characteristics, and experiences that supported them to get success in their business
career. In the end, how personal background and education support the entrepreneurs is
discussed with some of the illustrations.
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LO 1
P1 Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship.
Meaning
Entrepreneurs set up their business ventures with effective utilisation of innovative practices and
creative ideas with an objective to attain sustainable business in the market. Entrepreneurial
activities are executed to explore new market and growth opportunities that can be attained with
the help of establishment of different ventures, as are:
Corporate entrepreneurship: Such enterprises are established in the form of an organisation in
which new ideas and creative processes are carried out to bring value addition to the customers.
The prime objective of this entrepreneurship is to deliver high quality products and services to
the people with the efforts and management of employees in an effective manner (Stenholm and
Wuebker, 2013).
Serial entrepreneurship: These entrepreneurial ventures are established by the serial
entrepreneurs in whom new ideas and innovative approaches are used to carry out business
effectively. The serial entrepreneurs play a significant role in performing day to day activities
and support the businesses in their start up learning experiences. After the successful
establishment of serial entrepreneurial venture, the business is handover to another person and
the entrepreneurs proceed to establish new business venture for someone else.
Social enterprise or entrepreneurship: This entrepreneurship helps to carry out the business to
handle different social issues and problems, changing the people life, environment, improving
communities, etc. The main objective of social enterprise is to transform the practices and
systems into practical actions to eliminate the root cause of environmental deterioration, poverty,
marginalization and many more (Morris et al., 2018). For example, The Big lemon, CCI
Scotland, Auticon, etc are the major social enterprises in the UK.
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Public and Private sector entrepreneurship: Most of the work in public enterprises are managed
and controlled by government with appropriate disciplines and approaches. These
entrepreneurship are implemented with an objective of developing innovative public policy that
support the country in generating large amount of economic prosperity. On the other hand, the
management and ownership of private enterprises have no interference of government and
wholly controlled by private parties with the goals of earning high revenues and long term
growth.
Lifestyle entrepreneur: Such entrepreneurship is carried out by the entrepreneurs to maintain a
particular standard of lifestyle. Such enterprises are managed with passion and personal
capabilities of entrepreneurs to earn reasonable amount of revenue to fulfill the requirements of
attaining a good lifestyle.
M1 Investigate a diverse range of entrepreneurial ventures to demonstrate an understanding of
entrepreneurship in both the public and corporate sector.
The typology of entrepreneurs can be understood on the basis of the objective of formation of
enterprises, and some other different factors, like, size, and nature. According to the size,
enterprises can be small, medium and large, and all have different geographical access for the
survival of business. However, on the basis of nature, entrepreneurial ventures can be public and
private (York et al., 2013). Private firms carry out their business to earn profits in compliance
with the governmental rules and regulations; however, there is no government control there. On
the contrary, public enterprises are government controlled organizations that earns profit for the
social upliftment. For example, ASDA is a private retail supermarket in the UK which is founded
by Asquith family, while child support agency is a public organisation established with a cause
of social welfare, especially in terms of education, to the poor families.
P2 Explore the similarities and differences between entrepreneurial ventures
Similarities and dissimilarities among different entrepreneurial ventures may includes:
Differences High growth venture Small profit venture Lifestyle venture
Scope These ventures have There is geographical Entrepreneurs align
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growth in terms of
wide opportunities of
market expansion,
product development,
and new ideas and
concepts.
constraints for small
ventures and
therefore, more efforts
are required gain high
economical benefits.
their passion, hard
work and efforts in the
lifestyle ventures to
explore new growth
opportunities.
Growth The growth of these
ventures can be
calculated with the
customer base, market
opportunities,
favorable conditions
of political and
economical aspects in
the host countries,
availability of high
tech- services, etc
(Wright, and Stigliani,
2013).
The growth of small
ventures can be
identified in terms of
customer satisfaction,
product and services
quality, loyalty, and
trust among
customers, cost
efficient projects, etc.
Higher the interest of
stakeholders in the
venture, higher will be
the growth.
Influences These ventures are
handled and carried
out with the help of
large number of
employees and
planning are
implemented to take
the business at another
level with a rapid
Number of employees
is low in these
ventures, also, low
geographical access
leads to low growth
opportunities
(Hallbäck, and
Gabrielsson, 2013).
Ventures that are well
known, popular and
have good interior
ambience can easily
influence customers
towards it.
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speed.
Income The shareholders are
the real owners of
such ventures and
therefore income,
after taxes and
dividends is
distributed to them in
the form of dividends.
Innovative
promotional ideas,
creativity, seminars,
and events are
essential to make
aware people of such
ventures and its
business activities. It
helps to improve more
customer base and
revenue to the small
organizations.
The revenue under
these ventures is taken
by the entrepreneurs
and its family, as all
the responsibilities to
carry out business is
taken by them.
Example Retail supermarkets,
supply chain service
organizations, etc.
Small cafes,
restaurants and Inns
Consultancy services,
like lawyer, doctors,
etc.
Similarities
Every business venture is required to prepare their budgets and analyze different risk potential to
ensure accomplishment of desired outcome. The prime objective of every business is to earn
revenue and attain high growth with effective allocation of resources (Davidsson and Wiklund,
2013). Further, every business ventures intends to improve their business practices to satisfy
their customers to the maximum extent possible.
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LO 2
P3 Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on the economy
For the development and economic prosperities, small ventures, startups and micro units play a
significant role in the UK by contributing in the GDP increase. From a survey in the UK, it is
identified that small and micro ventures are the major contributors of providing employment
opportunities to the citizens that ultimately support the increment in the economic development
(Hessels and Parker, 2013). One of the major reasons of increasing growth of micro and small
businesses in UK is the governmental support in the form of startup loans, business loans,
subsidies, and grants. In addition, technological progress also plays a significant role to uplift the
businesses fell due to financial crisis in 2008.
A survey has depicted that the beginning of 2018 accounts for 5.7 million small and micro
businesses in the UK, which is increasing day by day.
Figure 1: Growth in the UK private sector business by number of employees
(Source: UK SMEs data, 2019)
London is one of the major city in the UK that has high number of SMEs in which around 1563
small ventures are established per 10,000 adult residents. Hence, it indicates that London has
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availability of all the required resources to support the start up of different ventures. In the UK,
the annual turnover of all the SMEs was recorded at £1.9 trillion, in 2016, which is 51% of the
total of all private UK business ventures (SMEs in the UK, 2019). In a survey of 18000 SMEs in
the UK, it is determined that SMEs that have turnover of less than £25M are making profit of
more than £ 7500 profit, which is gradually increasing since 2016. The organisation that have
Figure 2: Average profit of those SMEs that earn turnover of less than £ 25 million
(Source: UK SMEs data, 2019)
From the above figure, it can be analyzed that organisation that have 1 to 9 employees earn
double revenue in comparison to ventures that have no employees while organizations that have
10 to 49 employees has earn 4 times profit. The medium enterprises contribute high efforts in
earning high amount of profits which accounts of around £ 200,000 per year.
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M2 Evaluate the differences small, medium and large businesses make to the economy, applying
relevant data and statistics
Small and medium and large enterprises are different business ventures that are categorized on
the basis of size. In 2018, around 99% of total businesses in the UK include, 99% of SMEs that
accounts for 5.7 million businesses. Micro businesses are accountable for 5.4 million businesses,
while businesses that have less than 10 employees are only responsible for 21% of turnover and
33% of employment in the total (UK Business Statistics, 2018). Medium size enterprises are only
1% of the total business in number and therefore, its contribution towards employment and
turnover is low in comparison to small and micro enterprises, which accounts for 13% of
employment, and 15% of turnover. Large businesses in the UK have more than 250 employees
that are only 0.1% of the total businesses, i.e., 8000 businesses. However, they highly contribute
in the employment, and turnover with 40% in the employment, and 48% in the turnover.
Figure 3: Private sector businesses in the UK
(Source: UK Business Statistics, 2018)
P4 Explain the importance of small businesses and business start-ups to the growth of the social
economy
Startups and Small businesses are the major player in the development of social economic
growth (Ward and Rhodes, 2014). Social economy can be created through social innovations to
resolve the issues and challenges faced by society. Social enterprises offer quality services to
improve the quality of living of society in a particular area, to foster new competencies, new
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