Entrepreneurship: Ventures, Traits, and UK Economic Impact

This report provides a comprehensive analysis of entrepreneurship and small business management, covering various aspects such as different types of entrepreneurial ventures including small business entrepreneurship, high-tech firms, high-growth firms, social entrepreneurship, and start-up entrepreneurship. It contrasts the similarities and differences between these ventures, highlighting aspects like funding, innovation, and brand creation. The report further examines the impact of micro and small businesses on the UK economy, using data and statistics to illustrate their contribution to economic growth and employment. It also discusses the importance of small businesses and start-ups to the growth of the social economy. Furthermore, the report analyzes the characteristics, traits, skills, and motivational drivers of successful entrepreneurs, assessing how entrepreneurial personality aspects reflect motivation and mind-set, as well as how experience and background can foster or hinder entrepreneurship. The report uses data and statistics to determine the impact of micro and small business on the UK economy and the importance of small businesses and business start-ups to the growth of the social economy.

Entrepreneurship and
Small Business
Management

Table of Contents
Table of Contents.............................................................................................................................1
INTRODUCTION...........................................................................................................................2
Activity 1.........................................................................................................................................2
Task 1...............................................................................................................................................2
P1 Different types of entrepreneurial ventures............................................................................2
P2 Difference and similarities between entrepreneurial ventures...............................................4
Task 2...............................................................................................................................................7
P3 Data and statistic the determine the impact of micro and small business on the UK
economy.......................................................................................................................................7
P4 Importance of small businesses and business start-ups to the growth of the social economy.
.....................................................................................................................................................8
Importance of start up for the growth of social economy......................................................8
Activity 2.......................................................................................................................................10
Task 3.............................................................................................................................................10
P5 Determination and analysis of the characteristic’s traits and skills and motivational drivers
of successful entrepreneurs........................................................................................................10
P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mind-set...............................................................................................................................11
TASK 4..........................................................................................................................................12
P7 Experience and background can foster or hinder entrepreneurship.....................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................16
1

INTRODUCTION
Entrepreneurialism is an practice that people use to put about something new and
continue to run their businesses. By selling a range of goods and services and making money,
this practice draws people. Entrepreneurship refers to the process of designing, planning and
running a business company by establishing a new or creative consumer solution and taking all
the risks in the hope of profit (Baum, Frese and Baron, 2014). When people run their company
by knowing demand from customers and needing that improves operational efficiency. Micro
and smaller businesses are such companies that contribute successfully to the economic and
social activities. Some illustrations are covered in this study to understand about small and
micro-enterprises which help to sustain productivity. This article addresses numerous subjects,
such as the variety of forms of projects, the impacts on small enterprises, core facets on
entrepreneurship and impacts of small business on economy are as defined.
Activity 1
Task 1
P1 Different types of entrepreneurial ventures
Entrepreneur – This is a person who have special type knowledge and skills which are
used to run a business and increase activities effectively. In other words, it is an individual who
creates new business by taking risk and challenges is considered as entrepreneurs. This person,
organise and manage the business activities and financial risk effectively so goals can be
achieved effectively (Blackburn, Hart and Wainwright, 2013).
What is entrepreneurship - This is designing , launching and managing process which
is used by organisation in order to run a business and earn higher profits. This is important for
business to focus on all activities and functions which are related to earn profits effectively. In
other words, entrepreneurship is an activity which created by a person who have ability to take
risk and make it successful.
The different types of entrepreneurial venture are as explained:
Small business entrepreneurship – This is privately owned corporation owned
corporation which is start by individual at small level for the purpose of running their life. This
can be in the form of partnership, sole proprietorship and others having fewer employees and
getting regular revenues on daily basis (Carsrud and Brännback, 2011).
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High Tech firms – This is high tech business which is based on technology and
automation helps to provides something new in market. Such types of businesses are securing
growth and revenues from industry sectors that are characterised by new rapidly changing
technology.
High growth firms – These are companies that have real and anticipated track records of
growth. They always talk on the subject between bulls and bears who disagree regarding
sustainability of organisational performance.
Social entrepreneurship – Such entrepreneurship is considered as an approach by
individuals, groups, start-ups and entrepreneurs develop funds and implement the solution
regarding social, cultural or environmental issues that helps to make better life of people. These
types of organisation think about a person who lives in society and provide them products and
services accordingly.
Start-up entrepreneurship – This is also known as young company which is founded by
one or more people to develop a unique products and services. This new products brings up in to
market that helps to run a business effectively.
Large company entrepreneurship – This can be defined as am organisation where
number of people are working collectively and they have solid set of life cycles that helps to
increase the business activities. This involves innovation, automation and customisation that
helps to deal with competitors (Chrisman and et. al., 2012).
Typology of entrepreneurships and their relation
Survival firms - This is a same kind of start-ups which is started newly that survive in
the market for long period of time. It is not necessary that all started firms will be survive, who
have innovative skills and able to accept the changes time to time can survive only in
competitive market. This is also can said as hand to mouth fish monger firm (Dennis 2011).
Lifestyle firms – Those business which are providing opportunity to their owners to
pursue a particular lifestyle and earn money to living daily lifestyle. These are not innovative
firms not they grow quickly. In this, entrepreneurs, think about new trend and introduce products
and services accordingly (Carsrud and Brännback, 2011).
Managed growth firms – This is types of typology entrepreneurship where businesses
are growing by managing their each functions and activities. Such organisation are getting
growth step by step such as they understand what people wants and how they can be satisfied
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that helps to provide products and services accordingly. For instance, Sainsbury and ASDA are
managed growth firms. This is related with high tech firms.
Aggressive growth firms – This means organisation which are running their business
and get growth instantly by formulating strategies and investing funds effectively. there is
require special type of knowledge and technical skills which help to grow a business
continuously. For instance, Apple, Google and Face book are aggressive growth
entrepreneurship that are related to high tech growth firms (Fassin, Van Rossem and Buelens,
2011).
Public sector entrepreneurship – This is mainly comprised of organisation that are
owned and operated by government and exit to provide services for citizens. This types of
organisation do not seek to get profits but also they seek to satisfied customers by offering better
quality of products and services. For example, NHS and TFL are the public sector organisation
are providing benefits to people and not focusing on making profits. This is related with social
entrepreneurship who work for citizen who are living in a nation.
Social enterprises – This is an organisation that male commercial strategies in order to
maximize social, financial, and environmental wellbeing for people. They also runs for providing
safety and good livings to poor people. For instance, British Heart Foundation is a social
enterprise company that provides good heal and safety to people (George and Bock, 2011).
P2 Difference and similarities between entrepreneurial ventures
Similarities
 Strong Willed Entrepreneur: All business entrepreneurs are considered as strong willed
who wants to build a legacy through a business. In this, they take a lot of business idea
and execute them effectively. Moreover, they shows their perseverance for passion and
their work (Goss, 2015).
 Funding: Entrepreneurs who are going to start and run their business continuously
arranging the funds from private funds, friends and shareholders who helps to continue.
All ventures are needed funds to run and grow their business.
 Innovation: Business venture of all types are bring innovation, automation and new
products that attracts customers and encourages them to buy products. They all bring new
technology and products according to customer taste and needs.
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 Creating a Brand Name: All business venture think about creating a good brand name
so they formulates strategies and plans to run and continue their business (Jones and
Rowley, 2011). They implement all plans and offer a best quality product that helps to
create a brand name .
Difference between entrepreneurial venture
Survival Life Style Managed
growth
Aggressive growth
Annual
growth
Rate
This type of have
business will have a
minimal growth
The business
which relates to
lifestyle has 5%
growth rate
The growth rate
of managed
growth is
around 10-15%
20% growth rate is
expected who
introduce new
technology and
innovation.
Time
Horizon
(Time
Frame )
Daily , weekly basis
business operating
their activities.
The business
operates to cover
its costs and
maybe make a
small profit
Will try to grow
strategically in
the future
The management of
such organisation
focus continuously
and get high profits.
Managerial
focus
The business
management focus
on will sell
whatever it has.
Using a business
working model
that helps to work
accordingly.
Management
bring out new
policies and
technology
which increases
business
performance.
In this, managerial are
focusing on
improvement and new
technology which
helps to provide better
quality of products.
Managerial
style
Reactive style that
understand
employee response
quickly
Tactical style is
followed.
Democratic
managerial style
Visionary and
transformational
management style
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Entreprene
ur
orientation
Very Low, no
training is provides
to employees
(Karlan and
Valdivia, 2011).
Low focus on
orientation
programmes.
Moderate where
it provides
training if
required.
High level of
orientation where it
provides training
programme.
Managerial
skills
Making or
producing what is
needed.
Selling
Basic
communication and
direct relation with
customers.
Operational or
very basic such as
communication,
coordination,
management and
time management
skills.
Time
management,
Resilience,
leadership and
financial risk
taking skills.
Preservative,
leadership, technical,
risk taking,
management, time
management, fund
management and
coordinating skills.
Technology
Investment
None needed Limited
investment in
technology – a
corner shop may
need a till and
payment system
Exit
approach
Shut down Shut down, sell or
transfer over
Acquisition,
merger and sell
to other.
Liquidation,
acquisition and
merger is exit
approach.
Source of
finance
Self-funded Own savings or a
bank loan
This can get
funds from bank
loan, own assets
and
shareholders.
Own saving,
shareholders,
government support
and loan from
banking institution.
Organisati Little to none Simple structure Functional Divisional on
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on
Structure
(Kirzner, 2015). of some hierarchy structure are
following by
managed growth
firms.
hierarchy structure is
followed by
management who
complete each task on
time.
Task 2
P3 Data and statistic the determine the impact of micro and small business on the UK economy
Existence of small as well as micro business favorable act as a engine for economic
growth as well as development. It favorable impacts the economy by constructing desirable
society which mitigates the situation of poverty, corruption by generating employment
opportunity for local residence of United Kingdom. Generally, local authority as well as
government plays an immense role in terms to promote the existence of start up by offer the
availability of subsidy and promoting easy finance facility (UK Small Business Statistics, 2018).
As per the statistic of United Kingdom the existence of start-up are growing at a large pace like
there are around 5.8 million small as well as medium business as per the data of 2019. People are
taking efforts in terms to come up with innovative idea and participate for the wellbeing of
residence by exploit opportunity or converting problem into the innovative solution. Such
increasing pace has enormously enhances the turnover for micro and small business which is
around £2.2 trillion and has increase the circulation of funds within the economy leads to high
economic growth.
Source: UK SME Data, Stats & Charts, 2020
According to the above graph it has been analyzed that micro and small business has
become one of the effective contributors of an economy as they are constantly increasing their
business in comparison to the large business that have high capital availability but low in terms
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of the business. Although due to the wide size the large company employee over 249 and has
offered employment opportunity around 39%. In addition to that micro, small as well as medium
businesses have contributed 15.3%, 15.0% and 12.6% respectively. This depict that that diverse
company are making effort to come up with innovative idea and make enormous effort to
convert them successfully (UK SME Data, Stats & Charts, 2020). Furthermore, the turnover rate
of small business is 15.2% and makes enormous contribution in terms to expand their size
effectively.
P4 Importance of small businesses and business start-ups to the growth of the social economy.
Importance of start up for the growth of social economy
The existence of small as well as medium size entity which leads to the mutual beneficial
relationship that widen up overall economy of nation. Existence of SMEs in diverse sector has
helped in balancing the economy by becoming eth major contributor within the economy. There
are enormous benefit associated with small business and start up that is illustrated below
Creation of employment – Small business are those business who create employment
for people who are unemployment that helps to contribute in growth of social economy. This
business provide employment to poor people which fill their basic needs and wants and give
them a good life (Martin, McNally and Kay, 2013).
Engaging a significant number of people including the from disadvantaged groups –
Start ups and small business are important who engage people in finite number from
disadvantaged group that helps to run a business and make social economy. If organisation is
needed people then it can selected from disadvantaged group which helps to improve their
livings grows social economy.
Innovation – This means small and start-ups are those business who brings new
technology and innovation in their organisation which helps to improve the growth of social
economy. Start up and small business bring new products and services according to customer
needs and wants which helps to attracts customers and improve economy.
Leading the way on diversity – This is another importance that states small and start ups
are important for economy who contributes in leading the diversity and bring changes
accordingly that improve business and make it profitable.
Meeting social purpose – By establishing micro and small business a business can be
grow if it is run for social purpose. As such businesses are established at small area where
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number of people is living. This helps to meet with social purpose and improve economic
condition (Neck and Greene, 2011).
Local improvement – This helps to bring improvement in locality where different types of
people and culture are living. It fill the basic needs of people and make them happy by providing
satisfaction at high level.
The role small businesses play in the development of the
 Local economy- Small businesses contributes in local economies by taking innovation
and growth to the community that helps to establish a business. it also helps to establish a
stimulate economic growth by giving them jobs at local community (Schaper and et. al.,
2014).
 Regional economy –Small business provides employment to those people who are at
regional level and it lead to development of backward areas. Moreover, it raises living
standard of people (Sarasvathy and Venkataraman, 2011)..
 National economy – This also contributes in national economy by hiring people from
different nation that have different culture and traditions which improve living standard
of people and maintain a good performance of nation economy. Moreover, they
contributes in taxation which are used in social purpose such as education, hospitals,
roads etc (Neck and Greene, 2011).
 International economy: Employees are having special type of knowledge and skills which
helps to grow their business in international economy. Mark Zukerberg is a good example
of this who have contributes in international economy by paying taxes and other activities
that helps to run a business effectively (Storey, 2016).
Activity 2
Task 3
P5 Determination and analysis of the characteristic’s traits and skills and motivational drivers of
successful entrepreneurs.
Entrepreneurs are the individuals are able to formulate innovative business ideas and use
them to establish a successful business. In order to attain success, it is very important for them to
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acquire different traits and skills so that they can grow their businesses. Bill Gates and Mark
Zuckerberg are the two most successful entrepreneurs of current era and both of them
established their business successfully. Some of their key characteristics and skills that make
them different from other business managers are described below:
Passionate: It is one of the main characteristics of entrepreneur. Bill Gates and Mark
Zuckerberg both are highly passionate which helped them to establish their business
successfully. It makes them different from other business managers as all of them are not
passionate about their goals.
Future oriented: In order to attain success in future it is very important for all the
entrepreneurs to be future oriented. Both the individuals Bill and Mark have this characteristic
which differentiate them from others. Most of the entrepreneurs are not able to establish tehri
business successfully as they are not able to think about future and consequences that may take
place in upcoming period.
Time management: It is one of the main skills which is required by all the entrepreneurs
because in order to attain success it is essential to complete all the tasks in specific time period.
Bill Gated and Mark Zuckerberg have this skill which helped them to execute tehri idea of
establishing Facebook and Windows. It differentiates them from other business managers
because it is not possible for all of them to complete all the work on time.
Strategic thinking: It is one of the key entrepreneurial skills which are acquired by Bill
Gates and Mark Zuckerberg. Both of them are able to think strategically and while establishing
their business they used this skill so that they can attain success. It differentiates them from other
business managers as all of them are not able to think strategically.
Motivational drivers for the entrepreneurs: There are various types of factors that
motivates entrepreneurs such as Bill Gates and Mark Zuckerberg. All of them are as follows:
 Support from the family is one of the main motivational drivers which is beneficial for
both of them to manage their business and find effective ways to grow it.
 Past experience and mistakes are also the motivational drivers for them as it helps them
to ignore the adverse situations that have affected them previously.
Difference between characteristics of managers and entrepreneurs: The main
characteristics of entrepreneurs are passionate and future oriented. On the other hand, for
managers these are communication, leadership etc. These are different from each other because
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the responsibilities of both of them are separate. Managers are main responsible for the
management of the business empire which is established by Entrepreneurs. It is one of the main
factors which are creating difference between characteristics of both of them.
P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mind-set
Entrepreneurial personality – This means combination of characteristics and qualities
which forms an individual’s distinctive character. This personality helps to accept the challenges
and changes in their organisation and create a different between others. A personal should have
good personality characteristics which can help to increase organisational profitability.
Motivational drivers of successful entrepreneurs:
Making a difference in the world – When entrepreneurs often work by setting realistic
and beneficial that helps to complete the task and attain them in certain period of time.
Find personal meaning from building a business – The aim of organisation should be
first to grow and build a business continuously not to make profits. This drivers make different
from others and helps to establish a business successfully.
Satisfaction of doing something great – Bill Gates and Mark Zuckerberg are two
successful entrepreneurs who has bring innovation in their organisation. According to them, their
work is going to filla large part of their life and satisfied the customers effectively.
Aspects of entrepreneurial personality that reflects on mind set
To understand this Ocean model is used by an entrepreneur that helps to set goals and become
successful that are as explained:
Openness: This personality involves cleverness, varied interest, insights, creatively and
imagination that helps to struggle and implementing new ideas in business. With the help of this,
Bill Gates and Mark Zuckerberg get ready to accept challenges and run business effectively.
Conscientiousness: Dimensional traits include strong impulse control, immense emotions
and goal-oriented behaviour. Successful businessmen like Bill Gates and Mark Zuckerberg have
a high degree of conscientiousness that motivates them to instantly complete crucial tasks and
appreciate fixed schedule that represents their motivating facets.
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