Impact of Entrepreneurial Ventures and Small Business Report

This report provides a comprehensive overview of entrepreneurship and small business management. It begins by defining entrepreneurship and exploring different types of entrepreneurial ventures, categorizing them into private, public, and social sectors, and further classifying them by size and nature, including small businesses, scalable startups, and large companies. The report then examines the impact of small businesses on the economy, supported by data and statistics, and highlights their importance in economic growth. It also analyzes the characteristics and skills of successful entrepreneurs, exploring the entrepreneurial personality and its effect on motivation, and the influence of background and experience. The report concludes by summarizing the key findings and emphasizing the crucial role of entrepreneurs and small businesses in the current economy.

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1) Types of entrepreneurial ventures........................................................................................3
P2) Similarities and differences between Entrepreneurial ventures...........................................5
TASK 2............................................................................................................................................6
P3) Data and statistics showing impact of small business on economy.....................................6
P4) Importance of small business in growth of economy...........................................................9
TASK 3..........................................................................................................................................10
P5 Characteristics & skills of entrepreneurs.............................................................................10
P6 Entrepreneurial personality and its effect on motivation.....................................................12
TASK 4..........................................................................................................................................13
P7 Influence of background and experience.............................................................................13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Entrepreneurship is basically refers to the willingness and capacity of developing or
launching a new business or businesses along with all the risk and profit involved (Ateljevic and
Page, 2017). Entrepreneur is the person who organise and operates all the activities related to
operations or functions of business responsible for all financial risks and enjoys maximum. In
starting, every entrepreneur wishes to start as a small entrepreneur as it requires limited resources
and risk is also low. Thus role of entrepreneurs and small business is increasing in current
economy. To understand this crucial role of SME in growth and development of economy this
assignment includes scope, development and growth of different entrepreneurial ventures. It also
includes the impact of small business on economy and in growth of social economy. Further, it
includes different characteristics, traits and skills present in an entrepreneurs which ensures
success of business.
TASK 1
P1) Types of entrepreneurial ventures
There are many types and size of entrepreneurial ventures available in every economy or
environment. The broad three categorises of business sectors are private, public and social which
are further includes many organisations on the basis of their size and nature. Description of these
three different sector along with information about the ventures falls under the category of same
are mentioned below:
Private sector – This sector includes privately owned and managed businesses which
are controlled and operated by private individuals or group of individuals. The main aim of
these enterprises is earning profits and thus involves higher risk ( Fayolle and Gailly, 2015).
Vodafone and Aviva are examples of one of the top private companies owned by Gerard
Kleisterlee and Sir Adrian Montague respectively.
Public sector – Businesses or ventures belongs to this sector are controlled and managed
by government authorities. This can be managed or run by central, state or local government.
Main focus of this sector is on providing public services. MI5 ( UK's Security organisation) and
BBC (broadcasting corporation) are the popular public sector organisation of UK.
Social sector: This sector includes the organisation which has motive to help society
instead of earning profit. Any profit earned by this organisation is further contributed in business

activities to provide optimum assistance to public in respect to fulfilment of their needs. The
organisation belongs from this sector and having operation is named as Oxfam.
Businesses or companies belongs to these three different sectors are defined which are
below further classified into many categories:
Small Business Entrepreneurship – These are the business which mainly operates at
local level and belongs to private individual or small group of people, employs very few
individuals, not more than 250 employees. Cost of running and managing a small business is
relatively low thus provide more opportunities to financially weaker section. Rowlinson is small
private organisation having its operations in UK. This organisation and all the organisations of
this nature are falls under the category private sector.
Scalable Start up Entrepreneurship – These enterprises or business are mainly based
on new innovation and searches ( Julien, 2018). This type of business require huge creativity and
innovative idea for developing or creating something new or taking a current activity at next
level thus helps in growing revenue with minimum possible cost. Online websites and social
media are a example of scalable start up. The essence drink co. is scalable organisation which
has famous in market due to innovation in their operations. These kind of organisations belongs
from private sector.
Large Company Entrepreneurship - These are the organisations operates at large scale
and involves many actives and operation, thus having requirement of huge finance and other
resources. Their main aim is earning maximum profit through catering more customers by
offering new products and also aims at continuous expansion through sustaining innovation and
technology up gradation.
Vodafone is large organisation and the nature is that its falls under the category of private
sector due to its ownership and control.
BBC is also large organisation but the control and stake of government upon this
organisation creates the nature in respect that it falls under the category of public sector.
Social Entrepreneurship – These are the ventures whose main focus is on well being of
society. It includes business or corporations providing products and services for fulfilling social
needs. These firms do not aim at profit earning but their goal is to create equality in economy
and creating a better world ( Karadag, 2015). Oxfam is the venture of this nature which have the
purpose regarding welfare of the public and falls in the category of social sector.

Types of Topology
Topology basically refers to the group of people put together on the basis of some
common characteristic or features. Entrepreneurial ventures are also divided into various
categories some of them are explained below :
Male Entrepreneurs - They are mainly risk takers and enjoy taking higher financial
risks for getting better results. They always want to expand their business and are more focused
on latest trends of society and aim at technology advancement and innovation (Male vs. Female
Entrepreneurs, 2019). They are mainly task oriented and deals in large manufacturing or
construction business. The relation of this typology is suited with scalable which includes the
acceptance of risk and innovation in their business operations.
Female Entrepreneurs – They are more conservative and avoid higher risk thus likes to
deal in small businesses. They are more sensitive towards their job and workforce thus maintain
a healthy relation with all stakeholders. Women are also more responsible towards society and
environment thus also fulfil their social responsibility. The relation of such kind of typology is
with the ventures which are small and social in nature where amount of risk is low.
Growth entrepreneurs: These entrepreneurs are the one who start business operations
with the aim of earn maximum number of profits with minimum amount of time. These
entrepreneurs are mainly associated with scalable businesses as they do various efforts in order
to achieve the target of higher profitability.
Lifestyle ventures: This of entrepreneurship process is start by those individuals who
start to perform business activities to fulfil the daily expenses of their life. Profit does not remain
their main objective. They mainly remain engaged with operation of private venture as they like
to enjoy lifestyle adaptability.
Survival ventures: These entrepreneurs are the one who start commercial activities to
fulfil their financial needs. They start business to sustain in market for long term and to earn the
livelihood. This typology have much relation with the ventures which are in nature of growth
such as small and large.
On the basis of size and turnover the businesses are bifurcated into three different sectors
Small: This includes the business in which the number of employees is less than 50 and
turnover of organisation is below to the limit of £10 Million.

Medium: This will includes the all organisation having the number of employees more
than 50 and less than 250. The turnover of these organisations is needed to be in the limit of £50
million.
Micro: The number of employees in this organisation is less than 10 and the turnover
limit is up-to £2 Million.
P2) Similarities and differences between Entrepreneurial ventures
The different ventures operating in an economy are having some common characteristic
showing the similarities between them and are also having some features distinct from each other
(Oviatt and McDougall, 2015). These similarities and differences between entrepreneurial
ventures are discussed below:
Entrepreneurial
ventures
Similarities Differences
Scalable Start up
Entrepreneurship
v/s
Social
Entrepreneurship
 Both the ventures treat
people as their biggest asset
and always makes effort to
groom them.
 Social and scalable ventures
are always attentive towards
changes in society, as
scalable always aim at
finding new opportunity
available in market and
social focus on current
issues prevailing in the
economy.
 Social enterprises work for
betterment of society or
community and not for
gaining profit while
scalable enterprises are
focused on profit
maximization.
 Social entrepreneurs deals
in satisfying basic needs of
all people and establish
equality in society while
scalable companies focus
more on new innovation
and creativity for generating
more income.
Similarities and differences in between public, private and social sector
Sector Similarities Differences

Private  Main aim to sustain
through providence of
quality products and
services
 Main aim of earning
profit
Public  Initialise the operations
to provide best towards
society
 Main aim to serve
quality to society along
with earning of profit
Social  Formulation is based
on the objective to help
society
 Main is about serving
people instead of
earning profits
Similarities between public, private and social sector
 the main focus of all the organisation presents in public, private and social sector is
providing better quality product and best services to its clients and members.
 The other similarity among public, private and social sector is that organisation in
all these sector are aim at keeping a coordination and effective communication
within their organisations so that operations can be conducted more efficiently.
 Meeting and achieving the objective of cost efficiency is the similarity among public,
private and social sector.
Difference among public, private and social sector
Basis Public sector Private sector Social sector
Objective The main objective of
organisations prevailing in
public sector is to provide
basic public facility to
citizens of a nation which
includes health, education,
army, police, etc.
The main motto of
organisation comes under
the category of sector is to
maximize their provided an
d achieve netter growth
and expansion.
Social organisations
are having a main
motto of providing
welfare services to
vulnerable group of
society.
Ownership These organisations are
managed and control by
These companies are
mainly controlled by
These organisations
can be either control

state or central government
of a country.
private individuals or
group of individuals.
by government or hold
by private individuals.
Similarities and differences in between micro, small and medium enterprises
Enterprises Similarities Differences
Small  Aim at profit
maximization through
increasing sales and
reducing cost of
operation (Albort-
Morant and Ribeiro-
Soriano, 2016).
 Providing best quality
product to achieve
maximum customer
satisfaction and to
attract more customers
is the ultimate target of
small organisation.
 Financial requirement
of small business is
quite low
 Main focus of small
business is attracting
customers at local or
national level
Medium  They also have main
objective of
maximisation of
profitability
 Also want to attain
sustainability in
operations
 whereas medium
organisation need huge
finance and other
resources for
preforming its task.
 while medium
organisation always
wants or aim at
operating at global
level.
Micro  Start with the purpose  Finance requirement of

of earning profits
 Focus over long term
growth
micro is less from both
small and medium.
 Their main aim is to
survive in market
Similarities between micro, small and medium enterprises
 The main aim of micro, small and medium enterprises are to achieve economies of scale
in their operations to have better cost efficiency.
 The another similarity among micro, small and medium enterprises is that they makes
best possible efforts to provide higher level of satisfaction to its customer through
providing better quality product and services to fulfil their needs and desires.
Difference between micro, small and medium enterprises
Basis Micro enterprises Small enterprises Medium enterprises
Size Around 1-10
employees are there in
a micro enterprise.
Number of employees
ranges from 10 to 250
in a small
organisations.
More than 250
employees are
employed in a medium
enterprise.
Objective The main objective of
a micro enterprise is to
earn enough many for
survival of oneself and
its family.
The main is earning
enough profits for
better standard of
living and good
financial conditions.
The aim at having
better expansion and
growth opportunity to
attract large number of
customers.
Area served Domestic area Local or domestic area City or town level
Difference between the Corporate Sector and Public Sector
Corporate Sector Public Sector
This sector is mainly hold by private
individuals and the main focus of
corporate companies is on expansion of
These are the firms or organisations which are
associated with government and their operation are
control and managed by state, local or central

their business through earning more and
more profits. These organisation and
companies also raise their shares and issue
debenture to meet their financial needs.
government. The financial needs of these
companies are fulfilled through taxes and penalties
and there main focus is on providing public
services to community and society of nation.
TASK 2
P3) Data and statistics showing impact of small business on economy
Small businesses are very important for every economy as they facilitates creation of jobs
and enhancement of economic growth. Role of SME in development and growth of an economy
can be estimated from following statistical data and facts which are collected from research
conducted by Department for business, Energy and industrial strategy of UK at the start of 2018.
According to this research, 99.9% of the businesses in the United Kingdom are either
small or medium size business (SME). SME are the companies or ventures employing less than
250 employees. 60% of all private jobs of UK are created by or belongs to SME which
employees lees than 10 individuals (UK SME Data, Stats & Charts, 2019.).

(Source : Growth in UK businesses in the private sector by number of employees from 2000 to
2018 )
The above line graph is representing the growth of SME in UK businesses in the private
sector by number of employees for last 18 years (Roig-Tierno, Alcazar and Ribeiro, 2015). It is
clearly shown that the number of companies without any employees (I.e. small business) has
grown more than total numbers of businesses in UK between 2000-2018.
Illustration 1: Growth in UK businesses in the private sector by number of employees (2000-
2018)

(Source: Proportion of workforce of UK, 2018)
The above table is showing the number of UK businesses in the private sector by number
of employees starting from 2000 to 2018. This table is basically showing the proportion of
workforce of UK on the basis of business size (Siegel and Wright, 2015)
Illustration 2: Proportion of workforce Of UK, 2018