Entrepreneurial Ventures and the UK Economy (BUS101)

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Entrepreneurship and Small
Business Management

Table of Contents
Introduction......................................................................................................................................1
LO1..................................................................................................................................................6
P1 Carry out a mini research to examine different types of entrepreneurial ventures and
explain how they relate to the typology of entrepreneurship......................................................6
P2. As part of your research investigation, explore the similarities and differences between
entrepreneurial ventures...............................................................................................................7
M1. Investigate a diverse range of entrepreneurial ventures to demonstrate an understanding of
entrepreneurship in both the public and corporate sector............................................................9
LO2................................................................................................................................................10
P3. Assess and interpret relevant data and statistics in your mini-research, to illustrate how
micro and small businesses impact on the economy.................................................................10
P4: Explain the importance of small businesses and business start-ups to the growth of the
social economy..........................................................................................................................11
M2 Evaluate the differences that small, medium and large businesses make to the economy,
applying relevant data and statistics..........................................................................................12
LO3................................................................................................................................................14
P5 Carry out a mini-research to determine the characteristics, traits and skills of two
successful entrepreneurs, which differentiate them from other business managers..................14
P6 Assess how aspects of the entrepreneurial personality as discussed in P5, reflect
entrepreneurial motivation and mindset....................................................................................15
M3: Explore and examine different lines of argument relating to entrepreneurial
characteristics............................................................................................................................16
LO4................................................................................................................................................17
P7 Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship........................................................................................................................17

M4 Analyze the link between entrepreneurial characteristics and the influence of personal
background and experience to specific successful entrepreneurs..............................................18
Conclusion.....................................................................................................................................19
References......................................................................................................................................19

LIST OF TABLES
Table 1: Difference between different entrepreneurs......................................................................7
Table 2: Difference between Entrepreneurial ventures...................................................................8

LIST OF FIGURES
Figure 1: Average profit made by SMEs in the UK from 2014 to 2016.......................................12
Figure 2: turnover contribution of social enterprises in scotland..................................................13
Figure 3: Employment data of different business ventures in the UK..........................................14
Figure 4: The number of business in the UK according to size.....................................................14
Figure 5: Richard Branson.............................................................................................................15
Figure 6: Laurence Graff...............................................................................................................17

Introduction
Entrepreneurs are the individuals who take necessary initial steps to launch and run an enterprise
by following a systematic procedure of organizing and planning. There are different types of
entrepreneurial ventures are discussed, includes, serial, intrapreneur and owner-managers. The
task has identified the difference between business ventures which are classified on the basis of
their size. This task has also analyzed the personal characteristics and traits of two successful
entrepreneurs of UK who has contributed highly to the favourable economic and
entrepreneurship conditions of the UK. Laurence Graff and Richard Branson’s personality,
background and experience are discussed in this report to identify the necessary entrepreneurial
characteristics required for an individual to achieve success in his entrepreneurship.
Entrepreneurial environment is studied in which different individual grow and develop
entrepreneurial capabilities that offer positive future outcome. In the end, the role of background
and experience is discussed that helps an entrepreneur to foster their career.

LO1
P1 Carry out a mini research to examine different types of entrepreneurial ventures and explain
how they relate to the typology of entrepreneurship.
Entrepreneurs and Entrepreneurship
Entrepreneurship is a strategic process through which a new business venture is created,
launched, and run to attain the goals of high growth and success in the market. Entrepreneur in
entrepreneurship is the person who transforms his idea of new start ups into reality to offer
products and services to the customers. The main activity of entrepreneurship is to pursuit human
action in the generation of ideas and values, through the expansion of economic activity, by
identifying, and producing new processes, and products to exploit market (Drucker, 2014).
Table 1: Difference between different entrepreneurs
Basis Serial Entrepreneurs Intrapreneur Owner manager
Meaning These are the
entrepreneurs who
continuously come up with
an idea, imitate for starting
a new business venture,
and then perform day to
day operation to ensure
survival and growth of
such venture. However,
later, serial entrepreneurs
give their responsibility to
some other person and
again move to other new
ideas for the start ups
(Serial Entrepreneurs,
2019).
These are the internal
employees who utilize
their entrepreneurial
knowledge and talent to
create new products
without taking into
consideration whether
such product will actually
produce reasonable
revenue to the enterprise
or not.
He can be said to be a
catalyst who acts as a
driving force for
implementing the changes
in business through
efficiently utilization of
resources.
Prime Motive To offer entrepreneurial To get rewards and To optimum utilize the

knowledge to support start
ups and new business
venture.
remuneration for
producing new products
and services (Kirzner,
2015).
resources for
implementing necessary
changes in the business
venture.
Risk Serial entrepreneurs take
comparatively high risks
in creating and developing
new business ventures.
Intrapreneurs do not take
much risk in producing
new units of products, as
they do not consider future
outcome.
Owner managers have
controlling ownership and
authority to act on behalf
of enterprise; therefore
they take risks to enter into
various contraxts and
agreements with other
organization.
P2. As part of your research investigation, explore the similarities and differences between
entrepreneurial ventures.
There are various similarities in different entrepreneurial ventures that can be seen through their
contribution in the growth and development of an economy by creation of employment
opportunities and implementation of CSR activities. Along with this, every business venture is
initiated with an objective to earn reasonable funds to attain sustainable business and long
standing in the market.
Table 2: Difference between Entrepreneurial ventures
Basis Small Scale Business Medium Scale Business Large Scale Business
Ownership Generally, ownership of
these businesses is hold by
private individual or
founder.
These are generally family
owned business. However,
can be started by founder
along with few public.
These business ventures
are publically owned in
which people invest their
money and get ownership.
Management Founders or owners
manage this business.
Owners along with
professionals manage
these ventures (Schaper et
al., 2014).
In large scale business,
owners do not have right
to manage their business,
therefore, professionals
and experts are appointed

for the managerial
activates.
Customer Base There is small customer
base, generally it covers
only nearby local markets
These ventures have
limited customer base,
which cover geographical
or industrial market.
It covers wide level
market, and generally
conducts its business at
global level.
Capital For sustenance and
survival of small ventures,
there is low source of
capital and therefore,
funds are obtained out of
the personal funds of
owner (Burns, 2016).
There is limited access to
funds, and therefore it is
hard to maintain and
survive medium scales
business in the market.
There is wide source of
funds are available to these
ventures, as they can raise
their funds from public as
well as outside market.
M1. Investigate a diverse range of entrepreneurial ventures to demonstrate an understanding of
entrepreneurship in both the public and corporate sector.
Entrepreneurship venture in the public sector is generally managed and owned by the
government with an objective to offer essential products and services to the society at an
affordable price. On the other hand, a business venture in the corporate sector conducts their
business with a motive of profit maximization. These ventures are not created for any social
cause; however, they contribute in the economic development through employment creation.
For example, Child Support Agency in the UK is a public venture who facilitates minorities’
people in raising their living standard through the availability of education facilities at affordable
price. Iceland Foods Ltd is a corporate business venture who conducts its business in the
supermarket to gain high profits and business expansion (Burns, 2016).

LO2
P3. Assess and interpret relevant data and statistics in your mini-research, to illustrate how micro
and small businesses impact on the economy.
SMEs have a vital role in the growth and development of the UK economy as well as it also
contributes to raising the living standard of society. In the starting of 2018, it is surveyed that
there are around 5.6 million small businesses in the UK. However, with a comparison to the
previous year, there is a reduction of 0.5% private business start-ups while there is a rise of 2%
in employment generation in private sector industries.
SMEs and its impact on the UK economy
Most of the private sector business sector comprises SMEs in the UK, which accounts for 99.3%
in the starting of 2018. SMEs in the UK contribute employment generation of around 16.3
million, which is approximately 60% of all the employees in the UK private sector. SMEs in the
UK contribute £ 2 trillion for the economic growth and expansion, which is approximate 52% of
all the turnover in the private sector. In Southern England, there is the higher business density of
SMEs as compared to any other place in the UK (UK small business Statistics, 2018).
The productivity of the UK economy is largely dependent on small and medium-size enterprise,
as SMEs earn 47% of the total revenue. In comparison to 2015, there is an approximate 95000
more private sector business in the UK in which most of the businesses are SMEs. SMEs are
motivated to grow and expand their business through the support of the government. There are
various government schemes relating to starting up loans, subsidies, etc. provided to SMEs so
that they can combat the competition and survive in the market.

Figure 1: Average profit made by SMEs in the UK from 2014 to 2016
The above graph shows that Enterprises which have employees from 50-249 range, contribute to
the great extent in the economic growth of the UK (Business Statistics, 2018).
P4: Explain the importance of small businesses and business start-ups to the growth of the social
economy.
Social enterprises have a particular social objective for maintaining and promoting social
welfare. These ventures reinvest earnings in their business to support community, environment,
and resolve social problems. The voluntary efforts of social enterprises form the social economy.
On the other hand, a start-up business is the ventures which are just started by the owners with
their owned resources to produce and offer new products and services to the people at a
reasonable rate.

Figure 2: turnover contribution of social enterprises in scotland
The above statistical data shows the growth of the social economy of Scotland, UK, as per the
real terms and cash terms. Social enterprises have contributed in the UK economic conditions
through £ 3064 million turnovers in 2009, which has shown around 4.3% growth in 2009, a
comparison to 2008 (UK small business Statistics, 2018).
Social, economic conditions of the UK has shown rapid growth nowadays, as there is significant
support of the UK government to sustain social enterprises and their growth. A start-up loan
facility is available in which interest is very low or waived off as per the terms and conditions
satisfied. Along with this, the government also contribute funds in social enterprises for their
expansion at large scale.
M2 Evaluate the differences that small, medium and large businesses make to the economy,
applying relevant data and statistics
According to a survey, 33% of total economic growth and development is supported with the
help of small medium enterprises through 22% of total employment generation, and other
activities. In addition to this, Most of the large scale and medium scale business ventures
contribute 30% of overall economic development of the UK through indulging in manufacturing
sector.