Entrepreneurship: Ventures, Economy, Skills, and Background Analysis

This report delves into the realm of entrepreneurship and small business management, commencing with an introduction that defines entrepreneurship and highlights the significance of small and micro businesses in the UK. The report explores various entrepreneurial ventures, including public, private, social, survival, and managed growth ventures, detailing their typologies and comparing their characteristics. It analyzes the impact of micro and small businesses on the UK economy, providing statistical data on employment, revenue generation, and growth rates. Furthermore, the report examines the importance of small businesses in fostering social economy, emphasizing their role in employment generation, meeting social purposes, and driving local/regional development. The report concludes by discussing the skills, background, and experiences of successful entrepreneurs, providing a comprehensive understanding of the entrepreneurial landscape.

ENTREPRENEURSHIP AND SMALL
BUSINESS MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1 Different entrepreneurial ventures and their typologies.........................................................1
P2 Similarities and differences between these ventures..............................................................2
LO 2.................................................................................................................................................4
P3 Impact of micro and small business on economy...................................................................4
P4 Importance of small business on growth of social economy..................................................7
LO3..................................................................................................................................................9
P5 Skills of different entrepreneurs.............................................................................................9
P6 Aspects of personality reflect motivation and mind set of entrepreneur..............................10
LO 4...............................................................................................................................................12
P7 Impact of background and experience on foster entrepreneurship.......................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Willingness and capability of an individual to bear risk and establish a business is called as
entrepreneurship (Kuratko, 2016). UK is the nation which has high number of small and micro
business. Present study will discuss purpose of different venture and their typologies. It will
describe differences between these ventures alone with similarities. Furthermore, assignment will
use some facts to show contribution of Small companies in economy development of country. It
will define social economy and significance of small firms in social economy. In addition, skill
of a successful entrepreneur will be highlighted alone with their background and experience.
LO1
P1 Different entrepreneurial ventures and their typologies
Establishing a new business is quite difficult task, entrepreneur bear all risks and setup a
new business. This ability of willingness of an individual make them unique from others. These
persons are known as entrepreneurs. Entrepreneurship is the willingness of person to face critical
situation to fulfil their dream (Burns, 2016). There are various entrepreneurial ventures:
Public ventures
It is the type of firm which have rights to sell their shares in stock exchange. All the
important decisions are taken by board of directors by considering interest of all shareholders.
Public companies work to satisfy consumers by offering quality products are reasonable price.
BBC is the great example of public firm which telecast news and inform population about latest
happing’s (Storey, 2016).
Private companies
Private companies cannot sell their shares directly to public and owner own self make all
judgements for the growth of business, government do not get involved in any decisions of
business. There is restriction for private ventures in transferring shares publically. The main
agenda of such kind of companies is to raise profitability, productivity and can competitive
advantage. For example, McDonalds is private firm which expand its business globally and
generate revenues. Private venture may be partnership of sole trader. In partnership firms profit
is shared between all partners whereas in sole trader profit and liabilities both remain in the hand
of owner only (Read and et.al., 2016).
Social ventures
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Wellcome trust is social firm which continuously work for improving wellbeing of
society members. There is no specific direction to forma social firm, as all volunteers work
individually to serve the nation best. Their content is flexible than any other statutory
regulations.
Survival ventures
These are newly start-ups which are started to earn reasonable profit. It can be small
shops or barber shop etc. Owner earn reasonable profit which help them in living a normal life
and managing their daily expenses (Hsieh, Parker and van Praag, 2017).
Managed growth ventures
This is the type of venture in which companies pay more attention on consistency, they
always try to get consistent profit rather than getting huge revenue or expansion. They always
find some unique ideas through which enterprise can attract more consumers and can sustain in
market for longer duration (Balmaceda, 2018).
Each venture has different typologies which determine their way of conducting
operations. Typologies of these business are described as below:
 Lifestyle typology: This type of typology is generally implemented by managed growth
ventures. As they work to generate a consistent level of income so that owner can enjoy
their life style smoothly. They have limited growth options and find innovative ideas to
get consistent income.
 Serial typology: This is the kind of typology in which new ideas are given priority so that
company can run business in such competitive environment easily. This is implemented
by survival ventures (Burton, Sørensen and Dobrev, 2016).
 Scalable typology: This is implemented by private companies. In this typologies
companies make arrangement in such manner so that increasing demand can be managed.
Firms make changes in their products and process as per the changing demand of end
users.
P2 Similarities and differences between these ventures
Each venture is different from other, there differences are illustrated as below:
Ventures/
difference
criteria
Public venture Private
venture
Social
venture
Managed
growth
venture
Survival
venture
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Growth rate These firm get
support from
government and
has approx. 10-
20% rate of
growth.
These
ventures
growth by
20%
annually
These firms
don’t work
for growth
hence these
do not have
more than
5% growth
Such
ventures
grow by 10-
15% every
year
These
ventures
don’t have
much
growth rate,
they survive
from daily
operations.
Management
style
Autocratic style
is adopted by
such firm
because these
enterprises have
large layers and
decisions are
taken by higher
authorities.
Democratic
style of
leadership is
adopted by
such
ventures to
retain skilled
people and
get more
profit.
Such
ventures
adopt
reactive
management
style to deal
with complex
situations
easily
(Dimova and
Pela, 2018).
As they have
consistence
growth
hence
strategic
style is best
suitable for
such
ventures.
Management
style of
survival
ventures is
tactical.
Exit strategy Acquiring
business and
merge with other
firm is the
approach
adopted by
public
companies.
Transferring
ownership or
liquidation
are options
adopted by
such
ventures.
Liquidation
strategy is
used by these
firms.
Transfer to
manager or
to successor
approach is
used by such
enterprises if
they fail to
sustain in
market.
Closing
shop is the
only option
for such
survival
businesses.
Reward Bonuses,
accommodations,
flexibility are the
High salaries
is provided
by
No rewards,
social
volunteers
Salaries+
incentives +
bonuses
Only
salaries
receive by
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major rewards
provided by such
firms to their
employees.
companies to
attract talent,
they also
give
incentives to
workers.
get
appreciations
from society
members.
receive by
workers as
reward.
employees
those who
work in such
a small
shop.
Organisational
structure
Tall structure is
adopted by
public firms and
all decisions are
taken by higher
authorities.
Divisional
structure is
adopted by
private
companies,
here people
are given
different role
as per their
abilities.
No specific
structure, no
gap between
different
layer of
workers
(García-
Sánchez,
García-
Morales and
Martín-
Rojas, 2018).
These
enterprises
implement
functional
structure.
Flat
structure is
followed in
such
companies.
Similarities
All these companies work to generate profit so that they can sustain in market. All these
ventures need fund for running business and handling business operations. Furthermore,
innovation is another common factor, for gaining competitive advantage they have to implement
some unique idea so that they can create unique image in the mind of consumers.
LO 2
P3 Impact of micro and small business on economy
Small business are such enterprises which are run by single owner and have limited fund to
run the operations smoothly. Such entities hire limited number of employees generally not more
than 10. Micro firms are such companies those which earn 250000 revenues approx. annually.
Contribution of such small and micro business in UK economy is very high. Such companies
help in generating more employment opportunities and improving infrastructure facilities of
country. Statistical records of 2018 reflect that threes small companies have generated 2.0 trillion
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profit in this year (Matlay, 2018). In addition, such entities have provided employment
opportunities to around 16.3 million population of UK. These are private companies which is run
by single owner and work to get reasonable amount of profit. Around 60% employment is
generated by such companies in UK.
Figure 1: business Growth
(Source: UK SME Data, Stats & Charts, 2019)
UK is the country where many small businesses are operating, 2018 records show that
there are around 5.6 million small companies. 2.6 million amount has been contributed by such
micro business for VAT or PAYE. From 2000 till now there is 36% more small business in UK.
When it comes to growth rate then it is identified that 50% of small firms have expanded their
business globally, they are gradually entering into international market which supports in
generating more profit. When a firm enhance its revenues then they have to pay more tax which
help in development of infrastructure, transportation etc. Manufacturing small firms of UK have
growth rate of 32%. Hence it is fact that such micro companies improve economic health of
nation and aid in development of nation (Binti Othman and Othman, 2017).
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Figure 2: size and employees of UK business
(Source: UK SME Data, Stats & Charts, 2019)
UK government is supporting these small scale companies and continuously making
efforts so that such enterprises grow well. Recently UK government has invested 725m for the
growth of such small firms. Now authorities are providing rewards to such entities for their
innovation and efforts. This encourage such business and they get more development
opportunities.
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Figure 3: SMEs average profit
(Source: UK SME Data, Stats & Charts, 2019)
P4 Importance of small business on growth of social economy
Social economy is the relationship between social elements and behaviour of society
members. There are many components which influence behaviour of people such as ethics,
social norms, social philosophies etc. All these things impact on buying trends and affect
consumer behaviour as well. There are many people those who live below poverty line and live a
bad life. Small business contributes well in improving their living standards and improves their
social class as well (Ratten, Ferreira and Fernandes, 2016). Importance of such small business
for social economy is described as below:
Employment generation
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This is most essential benefit of small business to social economy, as these small scale
companies provide job opportunities to all level of people without biasness. There are many big
companies which hire only experienced people but small firms give employment chance to
fresher and poor class people as well. This provides then income opportunity and they also get
experience by working in such enterprises. When people are getting employment opportunities
then it develops GDP rate in the nation which gives benefit to overall development of nation to
great extent (Kuratko, 2016).
Meet social purpose
These firms directly or indirectly help in meeting social purpose. In the recent time there
are many poor class people those who live below standard life. By getting adequate job
opportunities these entities improve their wellbeing. By this way they have adequate fund to get
healthy diet and live a great life.
Improvement at local or regional level
This is another important element, small business generates reasonable amount of profit
and they pay tax or VAT. This taxation amount give support to government and they invest such
fund in the development of areas. They improve roads, transportation so that tourists can be
attracted which becomes another source for the development of locality (García-Sánchez,
García-Morales and Martín-Rojas, 2018).
Creativity
Small companies have to face huge competition, in such condition they fail to sustain in
market for longer duration and generating profit. In such condition these small companies
implement some unique ideas which may attract end users and can make them loyal towards the
brand. For example, Hilton hotel is the big brand which offers high quality products and services
to consumers but charges high amount as well. In such condition if small café or restaurants give
discount to people then consumers will take more interest. They maintain the quality but spend
less amount in infrastructure which helps them in managing their cost as well. Such thing gains
attention of buyer they take interest in experiencing product or services of such micro business.
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LO3
P5 Skills of different entrepreneurs
Entrepreneurs are different from other people, they have ability to start a new business and
make it successful. Skills and traits of Richard Branson are as below explained:
Skill of Richard
 Communication: He has great communication ability, he can make other understand
their work and can convenience them to support him. That is the reason employees of
Ricard are supporting him every time (Binti Othman and Othman, 2017).
 Visionary: This is great skill of Richard, he always makes vision and work to accomplish
those visions.
 Creativity and innovation: Richard has ability to implement innovative ideas, he always
look around his supporting and always catch new ideas which can give benefit to him and
his business as well.
Characteristics
 Risk taking ability: Richard has great personality; he always makes strategy to manage
risk in significant manner.
 Decisiveness: He can make sound decisions for the welfare of business, this ability of
him make him different from others.
Peter Jones Skills
Skill
 Leadership skill: He lead people well by making them understand their job, he behaves
friendly with them so that they support him in every critical task.
 Persuasiveness: He has skill to negotiate with employees and other investors, this has
made Peter able to manage risk and resolve conflicts at workplace (Kuratko, 2016).
Characteristics
 Planning: He can plan things in appropriate manner which help Peter in forecasting risk
and avoid it on time by implementing correct strategies.
 Interpersonal ability: He can build strong relationship with others which make him
different from others.
 Passion: Peter is very passionate person and always work for the growth and
development.
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Philip green
Skills
 Time management: Philip has ability to manage his time well, he always schedules
his work and complete it on time which make him able to move to next task on time.
 Strategic thinking: He always makes new strategies and find creative solutions for
each problem. That is the reason he has become able to establish his business
successfully (García-Sánchez, García-Morales and Martín-Rojas, 2018).
 Resilience: He can manage stress, rejection effectively, he knew many hurdles come
in the path hence he always motivates himself to move ahead from these stress and
perform own work carefully.
Characteristics
 Confidence: Philip is very confident person; he has great knowledge about his field
which raises his confidence to great extent.
 Tenacity: He always face issues but he faces them and never give up.
Difference between business managers and entrepreneur
Entrepreneurs are the person those who work to fulfil long term goal whereas business
managers always emphases on short term goal. Managers do not focus on risk, as they always
avoid risk whereas entrepreneurs formulate strategies and try to manage risk or tolerate risk as
well. Owner ensure motivating people so that they retain in the firm for longer duration whereas
managers ensure to calculate business activities and manage people in the firm (Matlay, 2018).
P6 Aspects of personality reflect motivation and mind set of entrepreneur
Each person has their different personalities, their personality highlights their working
pattern and way of handling different situations. OCEAN model is the application which
highlights personality of an entrepreneur.
Openness
This is the Characteristics of one person which shows whether a person is open or narrow
minded. If an individual is open minded that means he has curiosity to know different things.
Peter, Philip and Richard have this personality which reflect that they look upon surrounding and
accept new things with open mind which show their mind set. They accept such ideas with open
mind and get motivated to implement such innovative things into their business to get amazing
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rewards. This personality of Peter, Richard and Philip have made them practical and make them
able to run business successfully (Ratten, Ferreira and Fernandes, 2016).
Conscientiousness
This is the part of personality of one entrepreneur, this is also known as capability of self-
explanatory. Peter, Richard and Philip have ability to plan things and implement it in significant
manner. They organise activities in systematic manner so that desired output can be obtained. In
order to t get positive results all these persons think twice before implementing anything into
reality. If they behave impulsive then it can harm the business and individual can get negative
results. Hence conscientiousness personality of Peter, Philip and Richard show that they have
good presence and they understand thing first and they implement it. They understand what kind
of issues can take place and accordingly find suitable solution for the same so that they can gain
success. This thing reflects their mind set and motivation (Dimova and Pela, 2018).
Extroversion
Peter is very talkative person, Philip also has good communication skill. Richard can
coordinate things to others easily. They have extroversion personality where they discuss any
issue with their juniors, senior and rest people. By discussing such things with others
entrepreneurs understand or evaluate the ideas which help them in analysing positive or negative
aspect of any idea. After that they implement it in their own business which always support them
to get positive results.
Agreeableness
Peter, Philip and Richard have interpersonal skill, they can build relationship with others
easily. They show their empathy to others which make them able to gain trust of other people.
Thing ability or personality of them have made them able to gain attention of investors, suppliers
and run business successfully. They always give priority to expectation of stakeholders that is
why tall of them have gained success in their life.
Neuroticism
Peter, Philip and Richard are emotionality stableperson, they always make practical
judgement. They consider emotions but take practical decision which have always supported
them to get positive results in their business and establish their firm successfully (Burton,
Sørensen and Dobrev, 2016).
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LO 4
P7 Impact of background and experience on foster entrepreneurship
Richard Branson is the founder of Virgin group. He was the eldest son of his family
which has made him responsible from his childhood. His grandfather was working as judge in
high court. Educated family background has helped him in knowing facts of market and legal
issues that might occur when a person starts a new business. He got all support from his family,
when he got fail in his initial career then his grandfather has supported him a lot and have given
moral support. He lives in India for few years with his grandfather. At that time, he understood
different culture of people and believes of these different cultures. This learning or experience
have improved his communication and he became able to deal with investors, employees,
suppliers effectively (Hsieh, Parker and van Praag, 2017).
He was suffering from Dyslexia so he knew how to face difficulties. Furthermore, he had a
business class family, his mother was running her own business, hence, he learn about setting up
a new business from his family which has supported him to establish a new business
successfully, otherwise it might face problem in it. Early business career of Richard was really
challenging, he got failed to get profit in his early life but he learnt from his mistake and started
record shop in London.TO start this business his parents have supported him and have re-
mortgaged their home to support him financially. This background has helped him in becoming a
great entrepreneur.
Peter David Jones is another example of successful entrepreneur; he was having interest
in technologies since his childhood. In the age of 16he started his business of personal computers
and also opened a cocktail bar. But due to poor experience he faced failure and had to bear loss
of 200000. Due to this failure he was under pressure to give up his own home and move to other
place with his family. He learnt from his failure and rather than feeling demotivated he setup
one other venture phone international group (Kuratko, 2016). He always listens others and learnt
from his failure which motivated him to go ahead after each failure and work harder to get
success. He has completed his education from Desborough school. He has faced many problems
in his personal life as well. He got divorced with his first wife soon which broke down him. But
support of parents has boost him and he started concentrating on his career. Passion towards
technologies and support of family members have made him a successful entrepreneurship.
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Philip Green is the billionaire businessmen. He born into middle class family. His father
was retailer and property dealer. When he was 9-year-old his family shifted to other middleclass
areas. He was looking at his family since his childhood from suffering poorness and problems.
He looked upon them and understood how their parents are dealing with troubles. At the age of
15 he started working in shoe import company (Burton, Sørensen and Dobrev, 2016). His
inspiration was Sir Charles Clore and he follow his ethics properly. Support of family, wife, kids
have always encouraged him to do well in his life which has made him a great entrepreneur.
CONCLUSION
Above study can be summarised as family background, support of family, culture
background impact on entrepreneurship of person. If individual is getting moral support from
family then it motivates them and make them able to work more to fulfil their dreams. Public,
private, social all ventures work for different purposes but all these companies need fund to run
their business successfully. Communication, emotional stability, time management capability of
person makes him different from other business managers. Micro firms contributes well in
raising employment opportunities and improving GDP rate as well.
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REFERENCES
Books and Journals
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pp.871-886.
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entrepreneurship education in Malaysia. International Business Management. 11(4).
pp.865-873.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Burton, M. D., Sørensen, J. B. and Dobrev, S. D., 2016. A careers perspective on
entrepreneurship. Entrepreneurship Theory and Practice. 40(2). pp.237-247.
Dimova, R. and Pela, K., 2018. Entrepreneurship: structural transformation, skills and
constraints. Small Business Economics. 51(1). pp.203-220.
García-Sánchez, E., García-Morales, V. J. and Martín-Rojas, R., 2018. Analysis of the influence
of the environment, stakeholder integration capability, absorptive capacity, and
technological skills on organizational performance through corporate
entrepreneurship. International Entrepreneurship and Management Journal. 14(2).
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entrepreneurship. Small Business Economics. 48(2). pp.287-302.
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Matlay, H., 2018. Entrepreneurship Education: New Perspective on Entrepreneurship
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emerging economies: a study of the global entrepreneurship monitor. Review of
International business and Strategy. 26(3). pp.392-409.
Read, S. and et.al., 2016. Effectual entrepreneurship. Routledge.
Storey, D. J., 2016. Entrepreneurship and new firm. Routledge.
Online
UK SME Data, Stats & Charts. 2019. [Online]. Available through <
https://www.merchantsavvy.co.uk/uk-sme-data-stats-charts/>
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