Entrepreneurship in UK: Ventures, Economy and Social Impact Analysis

This report delves into the multifaceted world of entrepreneurship, examining various types of entrepreneurial ventures and their relation to different typologies. It explores the similarities and differences between scalable, large, and social entrepreneurship, highlighting their distinct motivations and impacts on the economy. The report presents data and statistics to illustrate how micro and small businesses significantly influence the UK economy, covering employment, turnover, and the number of businesses. Furthermore, it emphasizes the critical role of small businesses and start-ups in fostering the growth of the social economy, emphasizing their contributions to economic enhancement and improved standards of living. The conclusion summarizes the key findings, emphasizing the dynamic nature of entrepreneurial ventures and their crucial role in economic and social development.

Entrepreneurship
Small business
Management
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Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship..................................................................................................3
P2 Explore the similarities and differences between entrepreneurial ventures......................4
TASK 2............................................................................................................................................5
P3 Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on the economy...........................................................................................................5
P4 Explain importance of small businesses and business start-ups to the growth of the social
economy.................................................................................................................................6
CONCLUSION................................................................................................................................7
REFRENCES...................................................................................................................................8
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INTRODUCTION
Entrepreneurship is considered as way for establishing a business unit by analysing risk
that related to starting a new venture like management risk, financial risk and many more
(Schumpeter, 1934). An individual who open and run an entrepreneurial unit is known as
entrepreneur and they have several specific skills and abilities which help in operating business
successfully. The aim of this report is understand about different kinds of entrepreneurial venture
and typologies related to it as well as it also exploring similarities and different among different
venture. Moreover it will also include evaluation of relevant data and statistics for illustrating
micro and small businesses impacting economy. This will also include importance of small
business and start-ups in the growth of social economy.
TASK 1
P1 Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship
Entrepreneurial Venture
An entrepreneur is considered as main owner as well as manager of a business unit who
not employed elsewhere (Brockhaus, 1980).
A person or group of individual who generally assume task as well as responsibility of
combining factors of production within business company as well as keeping firm in operating
nature (Ely and Hess, 1937).
Different types of Entrepreneurs
There are several types of entrepreneurs who establish and run entrepreneurial ventures,
from which some are given below:-
 Schumpeterian Entrepreneurs: These entrepreneurs are generally found in small firm
and they direct as well as own independent venture which innovatively destroy current
market structure (Linking Entrepreneurship Sander Wennekers and Economic Growth,
2020).
 Intrapreneurs Entrepreneurs: These are those entrepreneurs who work at large firm as
well as it is also know as corporate entrepreneur.
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 Managerial business owners Entrepreneurs: These are entrepreneurs who are
considered as entrepreneurs in the sense of formal only. Sometime Schumpeterian
entrepreneur convert into managerial business owners.
Different types of Topology
 Prospector Topology: These organisation have broad products and services line and
they adopt creative promoting media.
 Defender Topology: This entrepreneur face issue related to maintaining a stable shares
at the marketplace as well as they function effectively at the stable environment.
 Analyser Topology: These entrepreneur conduct analysis of all factors before conduct
any action at workplace (MILES AND SNOW TYPOLOGY, 2020).
 Follower Topology: These are those entrepreneur who generally follow the trends and
offer products and services accordingly.
Different types of Entrepreneurship
 Scalable Entrepreneurship: These star-up are generally established along with a
specific vision of entrepreneur in order to change the situation of world.
 Large Entrepreneurship: These entrepreneurship conduct their business in order to earn
high profitability ratio by adopting innovation, advance technology and many other
factors (Why the Lean Start-Up Changes Everything, 2020).
 Social Entrepreneurship: This type of ventures conduct their business in order to solve
issues or problems of society. These can be profit motive, non profit motive and hybrid.
P2 Explore the similarities and differences between entrepreneurial ventures
Similarities among Scalable, Large and Social:
 The structure of all these ventures i.e. Scalable, Large and Social are different but their
primary motivate is to earn profitability and sustain at potential marketplace for the long
time (Lee and Huang, 2018). For that all venture offer specific types of products and
services to potential customers.
 Scalable, Large and Social focusses on creating as well as developing career that help in
supporting growth of its employees in order to retain as well as satisfy their future
demand.
Difference between Scalable, Large and Social:
Basis Scalable Large Social
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Motive The motivate of these
types of
entrepreneurship
venture is to adopt
new technology in
order to change the
world.
These entrepreneurial
ventures want to earn
huge ratio of
profitability so that
they can sustain at
marketplace for long
time (Leitch and
Volery, 2017).
Primary motive of
social
entrepreneurship is to
offer products and
services through which
they can resolve issues
of society.
Impact on economy Respective type of
entrepreneurial
venture will impact on
the economy with
Moderate rate. This is
so because it is not
much connected to the
economy.
Large
entrepreneurship unit
will impact on the
economy at High rate
because it is operate at
large level and they
highly contribute to
the economy growth.
Social
entrepreneurship
venture will impact on
the economy at Low
level because it
operate at small level
as well as it contribute
to economy less.
Example Instagram Microsoft Better world Books
(The 10 Greatest
Social Entrepreneurs
of All Time, 2020)
TASK 2
P3 Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on the economy
Micro and small business is considered as a company which have very limited or less
numbers of employees who conduct activities for attaining desire goal successfully. Annual sales
of micro and small business is generally less than the $ 250,000 per annum as well as there are
near by 5.9 millions private company running at United Kingdom from which 5.82 millions are
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small business ventures. There are different size of business ventures which contributes at
different level. Below data and statistic is given in respect of different size of entrepreneurial
venture and their contribution in employment, turnover and population in year 2019 is given:-
Interpretation
From analysing above diagram it can be interpret that there are different ration of small,
medium and large entrepreneurial business like 99.3, 0.6 and 0.1 respectively. Along with this
these ventures provide employment opportunities at different rate such as small business provide
47.8 % employment from total, medium provide 12.6 % where as large provide 39 %. Moreover,
in respect of turnover small provide 33.2%, medium's turnover is 13.5 and large ventures have
turnover of 52.5 % (Small businesses and the UK economy, 2020). This show different level of
entrepreneurial venture have different level of impact on several factors such as numbers of
businesses, employment generation, turnover and many more.
P4 Explain importance of small businesses and business start-ups to the growth of the social
economy
Social economy is considered as collection of several institutions and enterprise who are
generally risk in diversity factors, that will include foundation, mutuals, social enterprise and
many others. There are several importance of small business as well as start-ups business in
order to grow social economy, from which some are given below:-
 Economic enhancement: Small as well as start-ups business units plays a necessary role
in enhancing economy at the state, national and international level because these ventures
provide employment opportunities (Reed, 2016). Through which people able to earn
money that help them in contributing towards the economy development of nation.
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Illustration 1: Impact of micro and small businesses on UK economy
(Source: Small businesses and the UK economy, 2020)

 Improve standard of leaving: If their is growth or establishment of new small business
and start-ups business then their will generation of employment which help people in
improving their standard of leaving in effective manner (Shams, 2016). By improving
standard of leaving individuals able to fulfil their basis need and requirement.
CONCLUSION
By above mentioned point it can be conclude that there entrepreneurial venture are
growing day by day as well as there are different types of venture which are related to its
typology. There are different types of entrepreneurs who run an entrepreneurial ventures such as
schumpeterian, intrapreneurs and managerial business owners as well as these entrepreneurs are
also related with different topology like prospector, defender, analyser and follower. In addition
to this there are also several kinds of entrepreneurship such as scalable, large and social. These
all entrepreneurship are similar as well as different in nature because there perspective are
different. Along with this micro and small businesses impact on the economy at different level
like turnover, employment and number of business. There are several benefits gain by society by
the development of small business and start-ups business such as people able to improve their
standard of leaving and increase in economy.
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REFRENCES
Books and Journals
Brockhaus, R. (1980). Risk taking propensity of entrepreneurs. Academy of Management
Review. 23. 509‐520.
Ely, R., & Hess, R. (1949). The Entrepreneur and Economic Theory: A Historical and Analytical
Approach. Paper presented at the American Economic Review.
Lee, M. and Huang, L. (2018). Gender bias, social impact framing, and evaluation of
entrepreneurial ventures. Organization Science. 29(1). pp.1-16.
Leitch, C. M. and Volery, T. (2017). Entrepreneurial leadership: Insights and
directions. International Small Business Journal. 35(2). pp.147-156.
Reed, P. (2016). Entrepreneurial Ventures in Chemistry: The Muspratts of Liverpool, 1793-
1934. Routledge.
Schumpeter, J.(1934 (1961)).The theory of economic development: an inquiry into profits,
capital, credit, interest, and the business cycle. New York, NY: Oxford University
Press.
Shams, S. R. (2016). Entrepreneurial challenges in the 21st century: Creating stakeholder value
co-creation. Springer.
Online
Linking Entrepreneurship Sander Wennekers and Economic Growth. 2020. [Online]. Available
through: <https://personal.eur.nl/thurik/Research/Articles/Linking%20entrepreneurship
%20and%20economic%20growth.pdf>.
MILES AND SNOW TYPOLOGY. 2020. [Online]. Available through:
<https://www.referenceforbusiness.com/management/Mar-No/Miles-and-Snow-
Typology.html>.
Small businesses and the UK economy. 2020. [Online]. Available through:
<file:///home/user/Downloads/SN06078%20(2).pdf>.
The 10 Greatest Social Entrepreneurs of All Time. 2020. [Online]. Available through:
<https://www.onlinecollege.org/2012/06/26/the-10-greatest-social-entrepreneurs-all-
time/>.
Why the Lean Start-Up Changes Everything. 2020. [Online]. Available through:
<https://hbr.org/2013/05/why-the-lean-start-up-changes-everything>.
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