Entrepreneurship Report: UK Entrepreneurship and Business Analysis

This report provides a comprehensive analysis of entrepreneurship, focusing on the Coffee Pound company as a case study. It explores different types of entrepreneurial ventures, including small businesses, scalable start-ups, large company entrepreneurship, and social entrepreneurship. The report examines the similarities and differences between these ventures, highlighting aspects such as funding, risk, and growth potential. Furthermore, it delves into the effects of micro and small businesses on the UK economy, emphasizing their role in job creation, innovation, and community support. The report also discusses the contribution of small businesses and start-ups to the growth of the social economy. Additionally, it identifies key traits and skills of successful entrepreneurs, as well as the personality aspects and background experiences that influence entrepreneurial mindset and motivation. The report concludes by summarizing the key findings and providing relevant references.

UNIT 9
ENTREPRENEURSHIP

Contents
INTRODUCTION...........................................................................................................................1
P1 Different types of entrepreneurial ventures.......................................................................1
P2 Similarities and difference between entrepreneurial ventures..........................................3
P3 Effects of micro and small business on the economy.......................................................5
P4 Contribution of small business and start-ups on the growth of social economy...............8
P5 Traits and skills of two successful entrepreneurs..............................................................9
P6 Aspect of personality that reflects entrepreneurial mindset and motivation...................10
P7 Background and experience that hinder or foster entrepreneurship................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Entrepreneurship is an essential factor for growth of economy. In UK, there was a
downfall in businesses due to Brexit. But now the conditions are better and there are
opportunities for small businesses to develop their venture of businesses. Entrepreneurship is a
process by which the business is developed, organize and manage. These businesses are created
by entrepreneurs (Schaper, 2016). The high risk that are involved in launching a start-up are also
focussed by entrepreneurship. The main objective of entrepreneurship is to earn a profit for a
business. For the growth of economy and development entrepreneurship is beneficial.
This assignment will be taking an example of Coffee Pound company which is a small
scale organisation swerving top notch coffee to people. The report will also examine the different
types of entrepreneurship ventures. The similarities and differences between entrepreneurial
ventures will also be explored in this report. This report will present the effect of small-business
on the economy and the growth of socio-economy after Brexit will also be explained in this
report. The examples of two successful entrepreneurs will be given in this report and the skills
and traits that are needed to become a successful entrepreneur will also be presented. The
background and experience that hinder or foster entrepreneurship will also be examined in this
report.
P1 Different types of entrepreneurial ventures
Entrepreneurship ventures are stated to be the one which are formed to earn profits and
serve society with good quality of services. These are the enterprises which are established by an
individual who is known as an entrepreneur. He is stated to be an individual who puts his idea
into reality and leads from the front to solve every problem as to earn high amount of profits.
Coffee Pound is one of the best example that is there for entrepreneurial venture which has been
established to serve society with a better quality of coffee.
Basis Entrepreneur Intra-preneur
Definition Entrepreneur refers to the persom who
establishes his own business
enterprise.
Intra-preneurs are worker of an
establishment and they take care of
different types of goods and services.
Approach They practice intuitive approach They practise restorative approach
Resources They use their own resources They employ resources of organisation
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Risk Accountable for all the threat All the risk is taken by company and
not individual
There are basically four types of entrepreneurial ventures. They are as follows-:
Small business entrepreneurship
Today in UK and other countries there are more number of entrepreneurs and start-ups
are small businesses. About 95% of all companies are made up by them and the employment is
given to more than 50% employees. The hairdressers, theses business is tune by the owner of
bushiness. From the family or local employees are hired by them to help them in their small
venture. The main objective of such ventures is to get a living for their family. They feed their
family with the profit gained form the business. Their goal is not to take over nay company or
earn a million dollars in that business. With help of friends and family or small business loans
they get funds for their business (Shepherd, 2015).
Scalable start-up entrepreneurship
They are different form small businesses as from day one when business starts they have
a clear vision in their mind that could change the world. The best and brightest employees are
hired by them. The repeatable and scalable business models is searched by them. To meet the
needs of market place it is new emerges fast-growing business.
Large company entrepreneurship
There are finite cycles in large companies. The pressure on large companies can be
created due to change in preference of customers, new technologies and new competition etc.
Due to this the company must develop new products as per the changing market needs. By either
acquiring innovative companies the existing companies do this. The execution of disruptive
innovation is made difficult by large company size and culture.
Social entrepreneurship
They develop products and services to fulfil the social needs of people. The main
objective of this venture is to work for benefit of people and not to earn profit or revenue. They
just want to fulfil the requirements of people. They want to make a world a better place to live.
The social needs and problems are solved by these ventures.
These all entrepreneurs venture are related to entrepreneurship as they want to develop
their business to fulfil their needs and objectives of business. The risk that are in their business
all are analysed by these ventures so that they can achieve the objective of their business. There
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are different types of entrepreneur typology which states about what type of individual form
various type of ventures that are stated above. They are stated below:
 Female entrepreneur: After 20th century, women participation in entrepreneur activities
has increase many folds. They have become a crucial part of industry that represents
innovation and creativity. There are different examples which can be taken for this case,
such as Kirsty’s Worthenshaw.
 Social entrepreneur: He is the one who takes up a social issue and tries to provide
solution to it. They are concerned with society and tries to ensure that people live their
life without any hindrance.
 Serial entrepreneur: These are the one who dares to take each and every challenge and
ensure that they overcome any threat that exist in the market. They like to delegate
responsibility and focus their own efforts in venturing into new sectors.
 Male entrepreneur: Man are considered to be the one who formed all the business
enterprise in the beginning of industrial revolution. They are considered to be the one
who still owns this part to themselves though there has been sharp rise in participation of
women in entrepreneurship.
For small business the objective is to get a living for their family. In large companies the
goal is to earn more profit by expanding their business and the objective of social business is to
solve the problems and social needs of people (Aces, Audio and Serb, 2014).
P2 Similarities and difference between entrepreneurial ventures
The main difference between small companies venture and large company ventures is
that in small the main goal of company is to earn a living for their family and fulfil their basic
needs such house, food, shelter etc. But in comparison with large companies their goal is to
expand their business and increase their share of profit. There can be impact on the existing
market due to scalable-start-up companies. From the savings of founder, friends and or bank loan
both start-up and small business are funded. But if start-up is successful it will need extra
funding. So, the extra funding can be received form venture capitalist and an initial public
offering. The owners of both start-up and small business are entrepreneurs. For a repeatable and
scalable business model the start-up can search. Within a set of features a vision about product is
provided by start-up company. The main goals of start-up company are to become a large
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company (Entrepreneurship, 2017). But the risk of failure is high in start-ups as the innovation is
created so here are chances that whether it will be liked by customers or not.
The social business and large companies are also distinct as in social business the business
is done to solve issues of problems and provide them with a better living. In comparison to this
the goals of large venture are different they want to compete with other companies and expand
their profit and market. In small business the growth is limited whereas in large companies the
growth is rapid and high returns on productivity. With the known risk the small businesses deal
but a lot of unknown risks are faced by large companies. Within their own area or group small
companies are confined but large companies have given employment to large people and have an
impact on economy and communities. To specify between two ventures and typology, some
tables have been stated below:
Social ventures or business similarities Serial entrepreneur ventures similarities
These are the entrepreneurs ventures that focus
on developing solutions to the social issues and
problems. Such as self-sustaining drainage
system in Israel.
The prime motive is to serve society in a way
that business is able to run itself for long term
and provide solutions to people.
They keep on engaging with masses as to
solving different issues.
They are also focused on innovating and
developing new technology or solutions so
that they can be served to society as an
alternative or as a problem solving element.
They are also engaged with masses as to
understand their issues and provide a product
that would aid them in gaining better
effectiveness.
Difference Difference
The thing which differentiates social
entrepreneur from others is stated to be their
dedication to solve social problems and not
focusing on profits while doing so.
They are the one that tries to improve standard
of living of people who are living in an area.
They are focused on earning huge sum of
profitability and boost their organisational
productivity.
Male entrepreneurs businesses similarities Female entrepreneurs business similarities
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Male entrepreneurs are known for their
problem solving skills and capabilities.
They bear risk and have to manage it on their
own.
So does female entrepreneurs are known for
their skills to tackle situations.
They also need to initiate changes and manage
issues on their own with a strategic approach.
Difference Difference
They are considered to be far more abrasive
than the women entrepreneurs.
They are focused on money and profits.
Male entrepreneurs are task orienteer and also
focus on completing all the task in effective
manner.
They are known to turn to investors easily
while.
They are not that much patient with their
colleague.
Females entrepreneurs are known for their
management of private life and lower level of
risk facing capability.
They are more focused on developing a better
lifestyle.
They try to manage things on their own and
rarely go for investment.
They are known to be highly patient with their
peers and guide them in a right direction.
P3 Effects of micro and small business on the economy
For the growth of economy, the small businesses are critical for UK. The new jobs are
created by them. There is no growth in economy without small business. For creation of job,
community support and entrepreneurship the small businesses are important. In comparison, with
a larger corporation they may not produce more revenue. But they are important aspect of
economy. By inducing innovation and growth the small business contributes towards local
economies (Morris, 2015). The new products and the ideas to enhance the exiting products are
invented by the employees. Basically, small business enterprises are the one that are established
by new entrepreneurs. They aim to grow bigger by earning profits. There are limited amount of
resources that are there within the reach of these ventures. The table stated below will mention as
which type of company has a certain type of limitation:
Category Headcount of Staff Balance Sheet Total Annual Turnover
Micro-Enterprises <10 ≤ £2 m ≤ £2 m
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Small Companies <50 ≤ £6.5 m ≤ £6.5 m
Medium sized firms <250 ≤ £25.9 m ≤ £100 m
Today, SME’s are playing a major role in assisting country in growing and developing its
own capabilities. They account for more than 90% activities that are taking place within a private
sector. The SME’s are the prime source of employment as they are providing job opportunity to
more than 15 million people. The turnover of whole SME’s segment is stated to be around 1.9
trillion pounds which makes it a large contributor in UK private sector.
Figure 1 IBPS SME report.
(Source 1 BPE statistical release, 2016)
The graph state about three different bases on which SME is differentiated from others. It
gives brief information regarding various ways it is helping economy in growing. On the
community the positive influence can be created via small business. By paying taxes the
successful local businesses support the community. Due to higher level of customer-orientation
they adapt to changing climate set much faster rate. The support to local businesses will be
provided by customer during economic stress. The loyalty of customer will be more to small
businesses. The good and services is improved by small companies. The processing of business
is sharpened by them. A large part of economy of UK consists of small business. There are
different types and size of companies which are there under SME. They are stated below:
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 Sole proprietorship: These are the business organisation which are formed by single
individual. It is small in size and do not have access to a lot of resources. There is
unlimited liability that is associated with it which means risk levels are higher.
 Private companies: These are the firms that are formed, when a business has grown big
enough and need more resource to grow its own capabilities. There is limited liability
with each partner and it is a better form of conducting business.
 Partnership: This is a form where 2 or more individual come together for conducting
business activity as to boost their effectiveness and resources. There is unlimited liability
associated with individuals and even their personal assets are not safe in this case.
 Franchising: This is a form where individual takes up a franchise of a brand and earns
profits while selling the products and services of the stated brand. Royalty is paid to
company and in return the stated entrepreneur can run the business.
These are certain types of ventures that are running in form of SME in UK. On the overall
productivity of UK there will be an impact on boosting productivity growth of small business.
The income disparity is reduced by small business by developing skilled and semi-skilled
workers. There are four different levels on which SME impacts can be seen in a different
manner. Basically, small medium size organisations are known to be the one that assist in
attaining a better lifestyle and improving the economic conditions of the region. The impact is
stated below in a described manner:
Impact of Micro on Small business on Economy
Local
 Making new occupations
 Generating pay
 Raising ways of life
 Supporting Local community
National
 Adding more into national GDP
 Increasing per capita pay
 Stabilising the economy
Regional
 Acts as a method for budgetary
development
 Regional improvement of culture
 Augmented income generation
International
 Global neediness lessening
 Reducing the hole amongst poor and
rich
 Faster development of worldwide
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economy
It can be determines that micro and small business considered important role in the
successful business. In this aspect, it has been identified that towards the growth of the nation,
economic condition of the country developed which is important to look upon the desired results
and outcomes. In this consideration, private businesses possess effective nature to earn profits
and revenue with single owner. Therefore, it will assist to look upon the more profits and
outcomes that are significantly adopted to work on the capital requirements. Sole proprietorship
businesses also looking towards the financial statement so that it can be evaluated that it will
assist to attain more significant advantages and attain relevant results at workplace. On the other
hand, in partnership business it will help to working on the earning more profits and revenue that
make effective functioning. In this way, SME business consider their participation through focus
on the innovating and adding some unique features as well. Therefore, country will get several
benefits to make high growth and development program as well. It helps to overcome issue of
recession in the nation which create negative impact on the desired results. However, in other
perspective it can be stated that SME helps to generate more income through increasing economy
performance in it. Large firms facing several issues because it needed huge amount that create
impact on the working system of business. Therefore, it is important to look on the obtaining
maximum profitability.
P4 Contribution of small business and start-ups on the growth of social economy
The decline in growth of economy was faced by UK during time of Brexit. But now the
conditions are better and improved from before. The small businesses' contribution is large in the
growth of socio-economy after Brexit. In the growth of SME plays an important role. In the
country in UK, they make up around 95% of enterprises and account for 50 to 60% of jobs. A lot
of people were dropped from large corporations due to Brexit. But small companies provided
employment to those people. The development of economy was there due to job creation. The
quality of life and overall standards of living was improved by small business by creating job for
people in UK. Across the nation the small businesses are leading in economic development
(Eckhardt and Shane, 2013). The contribution that is made by small business in terms of
productivity is also large. The innovation has been brought by small business in UK such as
retail and grocery shops. For the company of UK small business are backbone. The new markets
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have been opened and the growth is achieved due to small businesses. The fresh ideas are
brought by them in the economy. The competitive edge is provided and help to make sure
regulatory compliance.
Start-up numbers are increasing after Brexit and this will allow economy in ensuring that
there is sufficient level of growth and development within country. Also, small enterprises are
evolving at a faster speed. Now both types are small in size but there is certain visible difference
which are stated below in a table:
Start-up Small business
This is a kind of temporary organisation which
has been designed to search for repeatable and
scalable business model.
They are trying to prove that their solutions
and model is more effective and attractive as to
establish themselves.
They are the ones which have proven their
business model and now established
themselves in the market.
They are independently owned and operated.
All the activities are based for profit and it is
not dominant in its field.
Today more than the aggregate turnover of these SME's has come to 1.9 Trillion pound. The
experts are attempting to make a situation in which these association can work easily and
prosper. At present, SME's are utilizing approx. (Morris, Kuratko and Covin, 2011). 15 million
individuals that is very nearly 47% of aggregate utilized power of private segment. There are
more than 5.5 million business which are enlisted for VAT and PAYE that help with expanding
income of government. There are different advantages of MSE's that are expressed underneath:
 Creation of occupation and openings: New business help with making more employment
as each undertaking needs human asset to finish work.
 Generating higher income: More deals brings about more income.
 Economic advancement of economy: Faster becoming SME's contributes more in
economy in type of expenses.
 Reduction of neediness: Provides occupation to jobless which removes them from
destitution.
 Minimizing monetary hole: Assist in limiting the financial hole that exist in the middle of
rich and poor
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P5 Traits and skills of two successful entrepreneurs
In order to look upon the different characteristics, it can be stated that there are different
entrepreneurs exist who possess some innovative characteristics that assists to perform functions
and operations of the business environment. In this consideration, it is important to look on the
Mark Zuckerberg and Steve Jobs who are successful entrepreneurs in all over the world. With
the help of the innovative skills and characteristics, they create several advantages. They are
make dynamic and mechanics with their traits and skills so that effective results could be
attained in successful manner. Main characteristic which they possess is that they plan
everything before doing. These kinds of skills obtained to make profitable business as the
effective leader so that big brand also developed to make global business famous. As compare to
ordinary manager, these skills assist to look upon the tasks and activities which the company
implement to attain more profits and revenue.
Furthermore, developing competitive advantages also useful characteristic that assists to
obtain unique and innovative ideas in the business. It will assists to look upon the entrepreneurs
performance from another enterprise. Therefore, it will assists to attain desired results at
workplace which they accomplish to make innovative functions.
By entrepreneurship the scarce resources are utilized completely to create a value or
wealth for organization. It is an economic activity where entrepreneurs want to create a value for
its organization. The new ideas are searched continuously by entrepreneurship. The Purer johns
is a popular business tycoon and a current star of BBC2 television series. His interest was in
industries such as television, travel and in real estate. Simon Cowell is also one of the successful
entrepreneurs (Davidson, 2015). He made his fortune as a music executive and has a producer.
Philip green is also a popular entrepreneur and is the CEO of Arcadia group. Some traits and
skills of these successful entrepreneurs are that their passion for their work. One must be
passionate regarding their work and job.
These entrepreneurs are full of determination. They have a clear picture in their mind about
their goals and objectives and they work towards it. They are not afraid to take risks. Under the
most stressful condition they pose high level of confidence. They think that obstacles in their
journey will pay them back and they will become successful in their work. The hard-work that is
done by them as lead to them to this success. To keep their mind sharp, they are continuously
learning. The books and newspaper are read by them to keep them updated about current trends
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