Entrepreneurship: Venture Types and SME Impact Report

This report delves into the multifaceted world of entrepreneurship and small business management. It begins by defining key terms like entrepreneur, entrepreneurship, and enterprise, and then explores various types of entrepreneurial ventures, including public sector, social, and lifestyle enterprises. The report highlights the similarities and differences between these ventures, focusing on aspects like creative ideas, innovation, and competition. It then examines the impact of SMEs on the economy, emphasizing their contribution to employment, revenue, and GDP, as well as their role in fostering social economy growth. The report further analyzes the characteristics, traits, and skills of successful entrepreneurs, and how personality traits influence motivation and mindset. Finally, it discusses the impact of an entrepreneur's background on their entrepreneurial journey, providing a comprehensive overview of the key elements involved in launching and managing successful ventures.

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO 1.................................................................................................................................................3
P1 Explain different type of entrepreneur venture and entrepreneurship typology....................3
P2 Explain similiarity and difference in enterpreneur venture...................................................4
M1 Explain diverse range of entrepreneur venture.....................................................................5
LO 2.................................................................................................................................................5
P3 Explain impact of SMEs on the economy..............................................................................5
P4 Explain Importance of SMEs in growth of social economy..................................................6
M2 Evaluate the difference impact on basis of organization size...............................................7
LO 3.................................................................................................................................................7
P5 Explain characterstic, trait and skills of succeful entrepreneur.............................................7
P6 Explain Entrepreneur personality reflection on motivation and mindset..............................8
M3 Explore and examine different argument related to characteristic.......................................8
LO 4.................................................................................................................................................8
P7 Explain impact of entrepreneur background in the entrepreneurship....................................8
M4 Explain link between characteristic and influence of personal background.........................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Micro and small business are classified the business whos assets and annual sales are less than
250,000 per year and employee less than five employee. This report highlights the different type
of entrepreneur venture and entrepreneurship typology. Further this report explains the
similiarties and difference in the between different entrepreneur venture. Further this report
explains the impact of SMEs on the economy and the importance in social economy. Further this
report explains trait, characterstics and skills of the entreptrneur and how it impact on
entrepreneur motivation and mindset. In the end report explains the impact of entrepreneur
background in the entrepreneurship.
MAIN BODY
LO 1
P1 Explain different type of entrepreneur venture and entrepreneurship typology
Entrepreneur: An entrepreneur is a person who commenced the business. Entrepreneur is the
one who bears the risk in desire to make a profit. These are the person who has the idea, and they
implicant their idea and take decision to grow the business.
Entrepreneurship: Entrepreneurship is the process of launching, designing and operating of the
new business entity.
Enterprise: Enterprise relate to managing of new business or company which is undertaken to
earn the profit (Burns and Dewhurst, 2016).
Typology of Entrepreneurship
Established company: These companys are company who have earned a good place in the
market due to their long existence in the market. This company are generally operated at large
size scale such as TESCO, Coca cola.
Small sized social venture: Small sized social venture are the organization which are
commenced or operated by the firms and are generally established by the social entrepreneur.
These venture generally operates with the motive of achieving the social objective. Example
National Association of Funeral Directors and registered with
Funeral Planning Authority.

Large size social venture: They are the one who also operates with the motive of achieving the
social objective but with the much higher investment and the involvement of more member in it.
NHS is the biggest Large size social venture in the UK.
High Growth Firms: These are the firm who have seen a good growth in the market as compare
to their pears. They are the enterprises which have seen a good increase in their productivity and
revenue in the past few years at a continuous basis.
Types of entrepreneurial venture
There are many types of venture. Some of them are as follows:
Public sector enterprise: Enterprise which is owned and controlled by the government body is
known as a public sector entrepreneurship. Main objective of these entrepreneurial venture is to
generate prosperity among economy.
Social enterprise: These are the enterprise which rely on their commercial strategies to
maximize the improvement in inancial, social and environmental well-being, these all is done by
theorganisrion by looking at the sicial impact alongside profit for shareholder.
Lifestyle enterprise: These are the enterprise which are run with the motive of earning
particular level of earning so that they can live a comfortable life style (Julien, 2018).
P2 Explain similiarity and difference in enterpreneur venture
Similarities between entrepreneur ventures
Creative idea: This is the most common similarity which is find in the venture as all the
enterprise are started with the creative idea and the entrepreneur try to take the decision to
promote and grow the creative idea.
Innovation: As every venture has ro be competitive in their industry they need to innovate their
working at a continues time interval so that they develop the USP at every time of their operation
which helps every venture in getting competitive advantage.
Competition: Every venture has to face a competition in their selected industry as they need to
sustain in front of the large enterprises in the industry, as they are the one who are having a good
market area coverage and always offers variety of offers or used strategy to get a competitive
advantage in the market (Saleem, 2017).
Difference between different entrepreneur ventures
Basis Survival Firm Lifestyle Firm Managed growth Aggressive

firm growth firm
Organizational
Structure
Flat organization
structure.
Flexible
organizational
structure
Hierarchical
organizational
structure
Vertical
organizational
structure
Managerial skills Leader generally
used the skills to
maintain quality
as they generally
look at attaining
profit.
Manager
generally sets the
criteria and the
goals which is
generally needed
to be filled out.
Manager uses
appropriate
decision-making
and problem
solving skills in
the organization
to manage the
functioning.
Manager also
motivates the
employee to
achieve the goals.
Generally
manager in this
type of firm takes
the fast decision
and solves the
problem.
Manager used to
delegate the task
to the
subordinate.
Source of finance Own funds are
the biggest source
of finance for the
venture.
In this venture
also own fund are
the biggest source
of finance.
They are having
many sources of
finance such as
equity share,
venture capital
(Dunne and
et.al.,, 2016).
High risk taking
investor generally
provide fund to
them.
M1 Explain diverse range of entrepreneur venture
Enterprise which are owned, control and operated by the public bodies or government of the UK
is known as a Public Sector venture, Organization which is owned, controlled and managed by
the individual is known as a corporate sector organization. Small sized social venture, Large
sized social venture and Public sector enterprise is example of Public Sector venture. Lifestyle
enterprise, High Growth Firms are example of corporate sector venture.

LO 2
P3 Explain impact of SMEs on the economy
Micro business are classified the business whos assets and annual sales are less than 250,000 per
yearand generally they have five or less than five employee.
Small Businesses are the business which are privarely owned and have legal structure of sole
properirorship.
Micro and small enterprises plays a very good role in impacting the economy of the UK as they
account for total of 99.3 percent in the private sector of the UK which is contributing toward the
economy which eventually means that they create a lot of jobs opportunity and competition in
the market. Some big impact of SMEs on economy as follows:
 As explained above they cover 99.3% of private sector in UK.
 They provide employment to the 16.3% to 60% from all private sector (Bogdanova and
et.al.,, 2016).
 Turnover of SMEs is the 2.0 trillion pound which accounts to 52% turnover from all
private sector.
 In 2018, 5.6 million SMEs was started and contributed to GDP of UK.
As stats explained that SMEs contribute to the employment, revenue and GDP of the economy
which eventually impact the economy in the positive way.
P4 Explain Importance of SMEs in growth of social economy
Social economy is the word used for defining the diversity of organization, which includes
association, foundation, cooperatives and paritarian institutions.
Employment: SMEs has created 16.3 million jobs in the UK in the last past one year which has
helped the UK economy in reducing the Unemployment in the country which has helped the
economy in optimum utilization of their human resources but at the same time it was for a
temporary basis as many of the SMEs used to die in the initial stage itself. 30% of start-up dies in
first year of their commencement.
Creativity and Innovation: As every SMEs is established on the basis of the new idea it brings
the séance of new thing in the economy which helps the business in increase in revenue which
positively contribute to the growth of the SMEs. In the Last year turnover of SMEs was account
to be 2.0 trillion pound which was 52% of total turnover of private sector.

Competition: Competition always bring the uncertainty in the organization which force them to
offer the best quality of the product to their customer, SMEs plays a big role in increasing the
competition as they always bring something new in the market with them but at the same time as
many SMEs are funded by the banks than the firm which is not able to survive competition close
the business which created burden on the economy.
M2 Evaluate the difference impact on basis of organization size
Difference which is brought by the organization in the economy is always depended on the size
of the organization as the large and medium organization hire more employee as compare to the
small enterprise at the same time small enterprise uses less resources to commenced their
business as compare to the large and medium scale organization (Burns, 2016).
LO 3
P5 Explain characterstic, trait and skills of succeful entrepreneur
A successful entrepreneur always require quality of characteristic, traits and skills in the person
as these three thing help them to dealt with every issue in their task.
Successful entrepreneur always have a characteristic like money management as it help them in
understanding how much money will be required by them in managing their business which
helps them in achieving the objective of the business very easily. Self confident is another
characteristic of the successful entrepreneur as it help them in managing the employee in the
organization because confidence pass on the motivation to the employee. Flexibility is the last
characteristic which is found in all the entrepreneur as it help them to solve the problem
depending on the situation of the business (Dunne and et.al.,, 2016).
Self motivation, Serial inventor and competitive spirit are the some traits which are always seen
in the successfully inventor as motivation helps them to go higher and higher and keep
challenging the entrepreneur to do better, Innovation helps them to bring something new in the
market which helps them in getting the competitive advantage and the competitive spirit helps
them to dealt with the competition which was created by the organization or other organization.
As skills are the keep part of an individual and the organization to sustain it was always found
that successful entrepreneur always has the skill to take the risk and has the knowledge to
maintain them, knowledge include factor can affect business, step can be taken to minimize the
risk, Profit potential is the main skill as the productivity of the entrepreneur is always measured

on it and it helps the business in generating higher profit. Learning is the skill which is always
present in the successful entrepreneur has they have to learn each and every situation beforehand
itself which helps the entrepreneur to defend the issue when it arrives.
P6 Explain Entrepreneur personality reflection on motivation and mindset
Personality traits and personal circumstances of the entrepreneur plays a crucial role in driving
the motivation and mindset of the entrepreneur, As explained above that self motivation, serial
inventor and competitive spirit are the traits which are found in the entrepreneur and this help the
entrepreneur in motivating themselves.
Due to the personal trait entrepreneur always feel comfortable in running the business activity
comfortably as they are self-motivated to achieve something and after achieving that they used to
set another goal to achieve which helps them in keeping their mindset clear about what to
achieve and how to achieve. Trait also helps them to bring something new into the market which
helps them to keep their focus on only one thing at one time which keep them motivated to
complete the task and also there is no room for uncertainty in the mind of the entrepreneur which
helps them in improving their efficiency of work (Bogdanova and et.al.,, 2016).
M3 Explore and examine different argument related to characteristic
There are always argument about what is the best characteristic of the entrepreneur to get
successful in the long run. The argument always look at the characteristic which can satisfy the
need of the entrepreneur in all the situation of the entrepreneur process and which can help the
business to grow.
LO 4
P7 Explain impact of entrepreneur background in the entrepreneurship
People background refers to the nature or culture in which entrepreneur belongs to it help the
entrepreneur in many ways and it also affects the entrepreneur, background helps the
entrepreneur in bringing new and innovative product in the market on the basis of the problem
which was faced by the entrepreneur but at the same time it affects the entrepreneur in adapting
the new and culture and backgrounds as it is never easy for the entrepreneur to adopt the new
culture which is different from the previous culture (Burns, 2016).
Experience is the one thing which is gained not purchased by the entrepreneur it helps the
entrepreneur in understanding the thing in better way as experience always builds a good

knowledge base of the employee which helps them in seeing the situation with different
approach and aspect at the same time it also creates difficulty for the entrepreneur to dealt with
the situation which was out of entrepreneur knowledge base. As entrepreneurship process rooms
around an entrepreneur it is very unfair to overlook the background and experience of the
entrepreneur in the entrepreneurship as the decision which is taken by the entrepreneur is always
shows the background and experience of the entrepreneur.
M4 Explain link between characteristic and influence of personal background.
It has always been found that there is a positive relationship between the background and
characteristic of the employee, as characteristic are developed on the basis of background and
experience which consumer is having (Bogdanova and et.al.,, 2016).
CONCLUSION
After going through above report it has been summarized that there are many types of
entrepreneur venture, and they are having many similarities and dissimilarity in them on the
different basis. It has been also summarized that SMEs are having a very good impact on the
economy of the UK. It has been also summarized that characteristics, traits and skills plays a
crucial role in the entrepreneurship process for the entrepreneur.

REFERENCES
Books and Journals
Bogdanova, S.V and et.al., 2016. Management of small innovational enterprise under the
conditions of global competition: possibilities and threats. European Research
Studies. 19(2). p.268.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Dunne, T.C. and et.al., P.R., 2016. The impact of leadership on small business
innovativeness. Journal of Business Research. 69(11). pp.4876-4881.
Goss, D., 2015. Small Business and Society (Routledge Revivals). Routledge.
Hatten, T.S., 2015. Small business management: Entrepreneurship and beyond. Nelson
Education.
Julien, P.A., 2018. The state of the art in small business and entrepreneurship. Routledge.
Saleem, M.A., 2017. The impact of socio-economic factors on small business
success. Geografia-Malaysian Journal of society and space. 8(1).