Entrepreneurship Report: Venture Types, Economy and Impact

This report delves into the realm of entrepreneurship, examining various entrepreneurial ventures and their classifications, including large-scale, small-scale, scalable start-ups, and social ventures. It explores the similarities and differences between different entrepreneurial approaches, such as lifestyle entrepreneurs, serial entrepreneurs, and female entrepreneurs. The report further analyzes the impact of micro and small businesses (SMEs) on the UK economy, highlighting their significant contribution to GDP, employment generation, and innovation, emphasizing the role of sole proprietorships, private business enterprises, and partnership ventures. It also underscores the importance of start-ups and small businesses in fostering social and economic development within the UK. The report provides insights into how these ventures drive growth and digitalization within the UK economy.

ENTREPRENEURSHIP

INTRODUCTION
Entrepreneur are considered as those individuals who has capabilities as well as potential
to establish, manage new business enterprise at own risk. In order to achieve the success they
have to achieve experiences and skills through continuous research and practices. In this context,
various types of entrepreneur ventures are analysed to understand opportunities for individuals to
achieve experience and growth. This report will provide a complete understanding about
contribution micro and SMEs towards development of economy of UK. It also provided a
complete understanding about the traits and characteristics which helps an individual to achieve
continuous success in life. At last, impact of European union and background of
entrepreneurship is considered that a complete understanding about the achievement of success
in relevant industry.
TASK 1
P1 Kinds of entrepreneurial ventures and relations to typology
Entrepreneurship is considered as an ability and willingness to develop planning,
organizing and managing a business to achieve the personal objectives at own risk (Soltanifar,
2016). Entrepreneur develops a creative idea and plans to commence a new venture at personal
financial resources. In this context, there are some entrepreneurial ventures in which an
entrepreneur must engage to maximize profits such as:
 Large scale ventures:From the analysis, it is recognised that those business enterprises
who are engaged or deals in international market are considered as large entrepreneurial
ventures (Szirmai, Naudé and Goedhuys, 2011). These ventures are created by big
company's either by merger or joint venture to continue a business at shared risk.
Entrepreneurs at global level should engage in these business ventures to gain profits by
introducing new ideas and resources. Innovations and providing new goods are the main
objective and tools of these ventures. It is also considered that existing firms involve in
ventures either by acquiring the business or developing a new product with new
promotional strategies. For example: KFC which has established its operations at large,
Thomas cook merged with High street travel agents with cooperative group which has
provided both the companies a profit of around £35million in financial year.
 Small Scale entrepreneurship : It is also a kind of entrepreneurial ventures which
includes sole proprietorship in which a single person engage in business by developing
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creative ideas and regulate its operations and satisfy the needs of people at small scale
(Audretsch, Falck and Heblich, 2011). Further, these enterprises are hair saloons, travel
agents, business consultants, e-commerce websites etc. People develops their own
creative ideas and hire local but qualified individuals to runs their business activities to
personal objectives. They will take financial resources either from small finances, banks
and other scalable enterprises etc. For example: Old world Inn which a trip advisor firm,
Ozone coffee etc.
 Scalable start-up ventures: With raid growth in business, start ups has achieved a great
significance and provided a way to individuals or entrepreneurs to develop, organize, and
manage innovative business. These are considered as new business that generally requires
low investments and generate a sufficient amount of profits. These are also considered as
types of enterprises that provide financial resources to small business ventures. For
example: Shanghai that is a financial hub.
 Social ventures: Entrepreneurs and firms give more focus on the customer needs and
their goods and services (Huggins and Thompson, 2015). These ventures are created by
individuals with an initiative to solve the social problems and to develop the
infrastructure rather than taking the market share or maximizing wealth. They are also
considered as non- profit organizations that regulate within counties with the objectives
to provide employment to people and reduce the rate of unemployment. For example:
Ethex a positive investment firm, sky light crisis cafe etc.
Below given are some typologies that relates to entrepreneurial ventures such as:
1. Serial entrepreneurs: These are considered as those entrepreneurs that usually creates
new ideas and starts business but unlike others they will not continue with the day to day
operations (Mitra, 2013). They often transfer ownership and responsibilities to other large
scale ventures. For example: Omar Hamoui, a 35 year old, that has developed a strong
mobile advertising network named “Admob” then sold it to Google.
2. Social entrepreneurs : Those individuals that creates social innovations and
transformations in various fields such as education, health care and business development
etc. For example: SEKEM started by Dr. Ibrahim Abouleish which has provided support
in developing healthcare sector by creating new medicines for various diseases.
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3. Female entrepreneurs: Within the economy, females entrepreneurs are also encouraged
towards creation of new business ventures and creates their own image in market. For
example: Yulia Rorstrom, a successful entrepreneur who has developed a saloon named
Duck and dry and achieved high profits and growth in market.
4. Life style entrepreneurs: Those entrepreneurs that develops a new business ideas with
aim of altering and changing their personal life style. For example: Steve jobs who is big
innovator and applied various innovations to provide competitive advantage to Apple and
make it most sustainable brand, Mark Zuckerberg etc.
P2 Similarities and comparison among the entrepreneurial ventures.
In competitive era, there are various similarities between different ventures and
entrepreneurs that have introduced a new and creative ideas to achieve growth and development.
Following points will describe the similarities such as:
Similarities among the life style ventures Serial entrepreneurial ventures
Most common objectives of all the life style
entrepreneurs is to achieve financial growth
and recognition (Onetti and et.al, 2012).
Developed with an aim of maximizing profits
by introducing new ideas and strategies for
developing new business.
New and creative ideas are developed by all
entrepreneurs and started their business at
small scale and achieved a sustainable growth.
Main aim is to achieve the competitive
advantage over their rivals.
Gains funds from the investors and
shareholders.
Life style entrepreneurs also takes financial
resources externals or financial institutions etc.
Adopts risk, innovation and achievement
towards creation of various products and
services.
They also adopt major risk and innovation to
create new products and services in existing
market.
Difference between life style and serial entrepreneurs
Life style entrepreneurs Serial entrepreneurs
Objective is to alter the life style by Goal is to engage or develop new business
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developing, organizing and managing new
business firms.
ideas continuously to earn profit rather
continuing the business.
Places passion before profits. Profit maximization
They continue their business operations and
takes responsibilities to make the brand more
successful.
They create new ideas and develop business
and then sale their business and ideas to other
large business ventures.
For example: Steve jobs and Mark Zuckerberg For example : Omar Hamoui
Similarities between the female and male entrepreneur business.
Female business entrepreneurs Male entrepreneurs
Creates own identity and alter life style by
creating new business plan and business
ventures.
Also, aims at creations of own identity by
entering in to large or small business ventures
with new ideas and creation of business
strategies.
Wants to achieve maximum profits by
regulating business at own risk.
They also create and regulates business firms
for achievements of profits.
Invest resources at own risk and take funds
from investors as well as family members.
Gets financial assistance from the other family
members, peers and other investors.
Differences between Female and male entrepreneurs business ventures
Female business entrepreneurs Male entrepreneurs
Introduce either small business ventures or
serial entrepreneurial ventures to earn profit.
Usually involves in large scale as they have
perfection or experience in particular field.
Mainly do less research work and implement
their own ideas and skills in business
operations (Autio and et.al., 2014).
Male entrepreneurs undertake more to identify
better business opportunities.
Female entrepreneurs would likely to prefer
low risk and aims to provide financial
Always prefer to take high risk and aims at
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assistance to society. profit maximization.
Earns positive revenues through regulating
their business operations and implementing
changes in products and services. For Example
J. K. Rowling as a female entrepreneur
generates revenue of 5.8 billion GBP by
writing books and novels.
Works as an investors and earns revenues
through acquisition of other business ventures
and establishments. Richard Branson male
entrepreneur and founder of Virgin Group
generated revenue of 10 billion GBP by
acquiring different companies.
TASK 2
P3 Impact of Micro and small business ventures on economy
Within every economy or country, there are various business ventures that are operating
at small and micro level achieved a continuous growth. It is also analysed that they a significant
role as they have a contribution towards in GDP rate. Rapid increase in establishment of small
business ventures have provided a great support to economy as they resolving the problem of
unemployment and giving opportunities of growth and development (Minniti and Lévesque
2010.). In UK, there many small and medium enterprises which are established by local
entrepreneurs to generate self employment. On micro and small type of business ventures, there
is a less tariff and taxes are charged on their products and services as compared to large scale
enterprises. Less amount of tax and tariff has provided enables the enterprises to generate more
profits and able to contribute towards the GDP of country.
As per the reports, within the economy of UK there are 5 Million Micro and small
enterprises presently in existence and regulating under private sector. Basically there four
business industry in which the SMEs have achieved a continuous growth in the form private, sole
proprietorship and partnership firm. These four industries are retail industry, services industry,
travel and tourism and IT industry.
Research has provides a clear understanding the SMEs drive growth and innovation to the
economy. Digitalization has empowered the UK SME sector through which they have achieved a
annual revenue of around £18.8 billion in previous years (Brush and Cooper, 2012). It has also
provided a great supports in 58000 thousand new job opportunities to individuals.
Basically these micro and small scale enterprises are divided in to 3 categories such as:
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 Sole proprietor: Individual that develop the creative business plan and regulate its
business investing capital at own risk. It is also considered as enterprise that is owned by
single person or entrepreneur. It is considered as most significant towards development of
economy as it has achieved a continuous growth and provided a great supports to
economy of scale. For example saloons, plumbers, carpenters, consultants etc.
 Private business enterprise: In comparison with sole proprietorship, there is more
growth achieved by private firms as there main aim is to achieve more profits as
compared to other business firms (Small And Medium Enterprises (SMEs) Finance,
2017). With continuous innovations and amendments in their products and services they
have achieved success and maximize more profitability. Moreover, it can be said that
private entrepreneurial firms have provided a positive impact on the economy of UK.
 Partnership ventures: It is also an essential business firms that is developed by two or
more entrepreneur or enterprise for a specific purpose and time. Entrepreneur creates
partnership for maximizing profits by introducing their ideas and innovation in other
areas of economy. Further, partnership ventures are more successful as it contains low
risk and shared investments. From the reports, it is analysed that there at 1.2 million
partnership firms in currently present in UK
Moreover, more than 46% of overcome of UK is provided by micro and SMEs. Thus,
these facts have provided a clear understanding that these entrepreneurial firms have provided a
positive impact on economy in different areas.
P4 Importance of start ups and small business on social economy development
From the above analysis, it has been identified that Small business enterprises and start-
ups have has achieved a great significance in UK economy (Hasan and Tucci, 2010). Private
enterprises and entrepreneurial firms has made wide investments in Start-ups and small business
enterprise.
Apart from this, there is also a great significance of SMEs in providing growth to social
economy and provided opportunities to In individual in UK by creating job. Introduction of starts
in the economy has increased employment and increased per capita income of economy. Increase
in occupations has resolved the problem of individuals and promotes their skills towards creative
new business firms. Analysis of regulations, has provided a great understanding that there are
favourable conditions for start-ups as less taxes and tariffs are charged on their trade practices.
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According to (Audretsch, 2012) 99% of private sector business in UK is provided small
scale enterprises. Government has also identified that SMEs has developed full potential of UK
economy and reduced rate of poverty. They have the pattern and regulations of business which
cane be easily adopted by Micro firms and Start ups. Moreover, it is also considered that they
have an adjusting nature and accepted all the regulations of business. Along with reduction in
poverty, it has provided a great channels of wealth distribution to people in country. There is
continuous improvement in the international trading has increased due to rise in trade relations
andf practices. Continuous improvement in balance of payment has also increased the
profitability of Start-ups. Apart from this, Brexit has provided a major threat to economy of UK
as it remove trade link between the three countries such as Scotland, Ireland and England. Brexit
was mainly referred to removal of trade relations between these countries that has provided a
major threat to these SMEs of reducing the profitability. From this separation of European union
the burden of tariff and tax will rise on Starts ups and SMEs. Further, it is considered that this
will provide a negative impact on the economy as it reduces contribution of firms in GDP.
Due to Brexit, small business and start ups have to look after single market as they have
to invest more due to unclear policies of the government. This will directly affect profits of small
entrepreneur which ultimately influence on social economy development.
TASK 3
P5 Examples of two successful entrepreneurs and their characteristics
In the country, there are several entrepreneurs who have introduced their business and
achieved a continuous growth in the country (Ahlstrom, 2010). In order to achieve success, there
several characteristics and traits required in individuals and they will achieve the characteristics
through continuous practice and experience. In the present scenario, some characteristics of
successful entrepreneurs are described below such as:
 Passion
 creativity and innovations
 actions and decisions making skills
 leadership skills
 communications skills
 problems solving skills
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For further analysis, two successful entrepreneurs are taken in to consideration which are
considered as role model for other individuals.
Mark Zekurberg: One of the most successful entrepreneur which was connected with social
media network. From the research practices he has identified that there strong opportunity of
growth in the online business. With a raid increase in technology, he has developed various
services and social networking sites like Facebook which has become a strong channel of
marketing for firms. With strong conceptual understanding and decision making skills he has
achieved a strong growth in his business ventures. He has provided a great contribution towards
growth in the economy by achieving more profitability and enhancing the technology.
Moreover, his competencies and ability of risk taking differentiate him from other competitors.
The basic traits and characteristics which are found in Mark Zuckerberg such as
innovator, passionate confident, risk taker, self motivated and problem solver etc.
Steve jobs: Another great entrepreneur that has changed the life style of people by introducing
new technological innovation in his brand named Apple. In present scenario, apple is considered
as one of the most successful mobile, laptop, iPad brand which has a strong demand in the
market. With his strong conceptual skills Steve has provided a competitive advantage to his
brand. All the products that are produced by apple brand has achieved a strong response from the
market as they have developed their own software which are not available in other brands. As
compared to others, apple mobile phones are considered as more reliable. With effective
decisions making skills Steve has applied various changes that resulted in benefits to firm as well
as country. Moreover, it can be said that he has achieved a phenomenal growth and experience in
his career through continuous research and dedications.
TASK 4
P6. Role of entrepreneurial motivation and mindset.
Motivation level and mindset plays significant role into the success of the entrepreneur.
The strong mindset consists of certain features like curiosity, commitment, optimism, flexibility,
leadership and connection. It supports the individual to handle various challenges. For instance
Mark Zuckerberg and Steve Jobs are two most successful entrepreneurs of Facebook and Apple
(22 things that Steve Jobs told me, 2017). They both are working with different mindsets and
growing their business at new heights. Mark Zuckerberg is always working, in order to solve real
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world problems. At the age of 14, his had started working to create a platform through which
people can connect with their friends and relatives.
With the launching of Facebook in year 2004, people are able to connect with their
friends and relatives across the world. It shows that they always emphasized on developing new
ideas for solving problems and reduce challenges. According to Mark Zuckerberg, testing of new
ideas should be done (Chahal and et.al., 2016 ). It helps in development of an individual and an
organisation. During this process sometime failure may come but always welcome risk and face
new challenges. They always encourage their employees for trying something new and
innovative. Along with this they always try to find solution of their employees problem. It
motivates their workforce for doing more hard work and finding solutions.
On the other hand Steve Job, who feels that motivation helps an individual in getting
success. After, facing so many failures a successful iPhone was the result for their motivation,
hard work and patients. According to him, always try do develop long term solutions for the
problems. Along with this uniqueness in design and concept is important. They encourage their
employees for emphasising on designs. Their love, courage and passionate behaviour supported
for them working hard after getting so many failures. On the basis of both the example it is
identified that motivation and mindset plays significant role in achieving success (Basolo and
Yerena, 2014). It supports for developing new and innovative ideas. The mindset of Mark
Zuckerberg refers that they always work for solving problems.
However, Steve Jobs emphasised on designs of their products. It supports them in order
to attract new generation. Along with this they both feel that motivation is most important for
reaching the target and becoming successful. Therefore, role of motivation and mindset is very
important. With the help of this two traits entrepreneur is able to implement strategies by
considering various factors like optimism, flexibility, leadership and connection. Through these
steps they are able to maintain relationship with their employees and motivate them for
producing effective outcomes.
The OCEAN analysis of the human traits and personality of Mark Zukerberg and Steve Jobs are
provided below: Openness: Both Mark Zuckerberg and Steve Jobs were curious and inventive in nature.
They are open-minded and always ready to face the future consequences efficiently and
effectively.
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 Conscientiousness: Both Steve Jobs and Mark Zuckerberg are committed to their jobs
and act dutiful in order to accomplish their desired goals. Extraversion: Both the entrepreneurs Mark Zuckerberg and Steve Jobs are energetic and
solitary in their work. This implies that they work with full determination and efforts. Agreeableness: Both Mark Zuckerberg and Steve Jobs were friendly in nature and
compassionate and cooperate with other employees.
 Neuroticism: Both Mark Zuckerberg and Steve Jobs was confident and determined about
their respective jobs.
P7. Analysis of role of background and experience into their success.
The background and experience plays significant role into the success of the
entrepreneur. It supports in facing various challenges and enable them for implementing
effective strategies. With the help of experience and background, Mark Zuckerberg and Steve
Jobs easily handled problems and developed effective solutions (Chahal and et.al., 2016 ). Mark
Zuckerberg had the programming and development background. Mark was never interested in
studies, they always involved in developing communication and gaming tools. It encouraged
them in developing new software and applications. During their college days they decided to
develop a platform through which people can communicate and meet their relatives and friends
across the world.
The rough structure was developed and with the help of their friends it's first version was
launched on 4 February 2004 (Fitzgerald and et.al., 2015 ). With the launching of Facebook,
4000 users get registered. It motivated Mark in order to develop the service with more advance
and enhance features. For this feedbacks of users are gathered and on the basis of that different
department are segmented for handling each unit. At this time various developers and designers
are integrated with the organisation and started enhancing the services of Facebook. Therefore,
with the help of their experiences of coding and programming, Mark was able to implement their
dream into reality.
Similarly, background and experience plays significant role in Steve Jobs life in order to
achieve success. Job belongs to the area which is known as hub of electronic devices, due to
which their interest was automatically dragged towards electronic product manufacturing.
During their high school period they started taking lectures from HP explore club. It helped in
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