Entrepreneurship Report: Venture Types, Economic Impact, and Mindset

This report delves into the realm of entrepreneurship and small business management, offering a comprehensive overview of various venture types, including managed growth, survival, aggressive growth, private, and public ventures. It explores the similarities and differences among these ventures, providing insights into their operational strategies and objectives. The report then assesses the significant impact of small and micro businesses on the UK's economic factors, highlighting their contribution to GDP and employment. Furthermore, it emphasizes the importance of small businesses in fostering socio-economic growth, examining their role in providing employment opportunities, adapting to changes, supporting local governments, and evolving into larger corporations. The report also identifies and analyzes the characteristic traits and skills essential for entrepreneurs, such as motivation, risk-taking, and adaptability, while critically evaluating the key aspects of the entrepreneurial mindset. Finally, the report touches upon how background and experiences influence entrepreneurship.

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P1 Types of entrepreneurial ventures..........................................................................................3
P2 Similarities and differences between entrepreneurial ventures..............................................5
LO 2.................................................................................................................................................5
P3 Impact on economic factors....................................................................................................5
P4 Importance of Small Business in Social-Economic Growth..................................................6
LO 3.................................................................................................................................................8
P5 Characteristic Traits and Skills...............................................................................................8
P6 Key Aspects of Entrepreneurial Mind-set............................................................................10
LO 4...............................................................................................................................................11
P7 Impact of Background and Experiences on Entrepreneurship.............................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneurship mainly deals in starting of small scale businesses or business start-ups. The
people who exercise entrepreneurship are entrepreneurs who are much creative and innovative
and are ready to take the risks of life. Small Businesses are mainly the start-ups developed by the
people who try to implement their new ideas in the business and make it a larger venture by
doing lot of hard work and facing failures and rejections (Garcia-Lorenzo and et.al., 2018).
The report below will examine various ventures which are started by entrepreneurs along with
describing the common things and the distinct ones in them. The research will be followed by
evaluating the impacts of small businesses in the socio-economic growth. It will also critically
evaluate the major factors of mind-set of entrepreneurs along with describing the characteristic
traits and skills of 3 major entrepreneurs. It will finally give a brief life journey of 2 well-known
entrepreneurs of UK and the ways in which various factors of their background foster and
hinders their entrepreneurship.
LO 1
P1 Types of entrepreneurial ventures
There are mainly five types of ventures which are present in the market and those are
going to be discussed in the further report.
Managed growth ventures
The framework which is being used in this business is going to be strong and the business
is only planning on staying in the market for long and not of expansion at the moment. To have
operations and sustainable functioning in the market is the aim of the business.
Purpose- With the help of effective framework the business can get local competitive advantage.
Example- Connect catering which works in UK for managing their growth in market.
Survival ventures
These businesses are in the market for long survival and have stable financial
responsibilities which help them to operate (Sibanda and Manda, 2016). They need a good
innovative idea so that they can have a competitive advantage and be able to survive in the
market with the help of a good strategy for the business.
Purpose- To be able to survive in the market for long.
Example- Barber shops are in the market for survival and are small retailers.
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Aggressive growth ventures
These businesses can get in new customers since there is a high innovation strategy
which is being used in these ventures. There is a lot of use of technology which gets these
ventures a competitive advantage for a longer run.
Purpose- The vision of these businesses is to be able to expand them in new market and get
innovation as well.
Example- The best example for this venture is Deliveroo which is based in UK.
Private ventures
These businesses work in the market to get a maximum profit for them and are not at all
dependent on the government for decisions. There are risks which are involved in these ventures
from time to time so that they can have better operations (Woldesenbet and Worthington, 2019).
Purpose- Get maximum profit in the business.
Example- Best example, Clark which is situated in UK.
Public ventures
These businesses focus on the welfare of the society and are dependent on the
government as well for the services and products they are providing to the customers. The
pricing of the products are low and quality is good.
Purpose- Focus is on the society’s welfare and not gets profits.
Example- Best example for this venture is BBC in UK.
Typology of entrepreneurship Scalability typology
This is a very effective measure which can be taken by businesses who are expanding
themselves or planning to in the market. This is going to be less risky for aggressive ventures in
the market and more profits can be earned. Social typology
Welfare of the society is focused upon so that there is a good functioning and operations. The
factors which are applied for solutions in framework are social, cultural and environmental
factors.
 Lifestyle typology
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This typology helps with having stable income and use of framework for the further grow of
business in market (Fitzgerald and Muske, 2016). This is going to make the growth in market for
the entrepreneurs.
P2 Similarities and differences between entrepreneurial ventures
Managed growth venture- These business focus on the local market and have a strong
strategy for them to work and develop. The employees are given salary and rewards according to
the performance in the market. There is a good sense of planning and functioning ability in this
organization.
Survival ventures- they have the capabilities to find ways to be able to get the right
economic factor in the organization to survive. There are rewards which are provided weekly to
the employees for stable performance (Gerlitz, 2016). They have good skills for convincing the
customers and selling the products and services for higher sales.
Aggressive growth ventures- These businesses want to expand themselves
internationally to get maximum number of profit. There are rewards and capital gains which are
provided to the employees. Innovation, creativity, etc are present in the company so that the
economic factor of the company can be developed.
Private ventures- These organizations are not working for the benefit of the society but
for the personal profit in market. To maintain the performance, the employees are given rewards
and incentives from time to time. There is good communication and motivation level in the
company so that the demands of the customers can be met.
Public ventures- These ventures work for the benefit of the society and not for profit
margins in the market. These ventures are good with problem solving and decision making for
having a longer functioning in the market.
LO 2
P3 Impact on economic factors
The impact on the economy of United Kingdom because of the small and micro
businesses is huge and about 47% is contributed by these businesses for the economic factor and
the GDP of the country is also getting affected because of this factor. There are a lot of people
which are being employed because the government is also supporting these businesses. There are
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very low interests which the banks are putting on loans for small organizations which are coming
up in the market as well (Rudenko and et.al., 2018). The government is still working to make
these small businesses have a free start up in the country so that the level of unemployment can
fall in the country and that is going to be very effective. It was evident in 2016 that the 99% of
the population was employed because of these enterprises which have to be monitored
effectively. It was after this research that the government tool more interest and supported these
ventures even more so that the people of the country can develop and have better lifestyles.
Figure 1: SME's in UK
(Source: Essential Facts You Should Know about SMEs in the UK, 2019)
There is about £2.0 Trillion contribution which these businesses have made as of 2018.
According to data there is a 48% employment by small businesses, 33% turnover and 99.3%
businesses. In a medium SME there is 12% employment, 14% turnover and 0.6% businesses.
And the large SME is contributing to the economy of the country by 40% employment, 53%
turnover and 0.1% businesses (Taneja, Pryor and Hayek, 2016). These are the statistics of the
organizations which are having a strong impact on the economic factor of the country.
P4 Significance of Small Business in the growth socially and economically
A small-scale business or a start-up is normally comprised to 500 employees or sometimes
less than this. Small businesses in UK have created numerous jobs with some firms having 20
employees. In 2018, it was estimated by the Small Business Administration that approx. 58.9
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million workers are employed in more than 30 million small businesses (Obschonka, Moeller
and Goethner, 2019). These initially deals in selling and buying with neighbours and friends
which results in various economic benefits. These act as the fundamental blocks of the UKs
corporations which are majorly large. The contribution of small businesses in UK on the socio-
economic growth are as follows:
Provide Employment Opportunities
Small businesses provide various opportunities of employment to the people who are
considered as unemployed by the larger ones. These focus on the people who are able to discover
something new in the existing products or implement new and creative ideas to make innovative
products by integrating them with the existing policies. They do not lay emphasis on the
experience instead attracts brimming talent of innovative individuals. These benefit the larger
organizations also as these are dependent on the small businesses for the completion of many
tasks in various departments. So, SMEs in UK contribute positively by providing employment to
various individuals who are creative and innovative and to the larger businesses as well.
Adaptable to Changes
The main goal of SMEs is to increase the sales by attracting more number of customers
so they become customer-oriented and understand the changing demands of them. Therefore,
they adapt themselves quickly in the changing economic and climatic conditions of the country
(Kerr and et.al., 2017). It is easy for the SMEs to build loyalty among the customers so they stick
to some SMEs in the tough economic crisis which results in improvement of local economies.
SMEs also faces comparatively less loss than the larger organizations as they have less
accumulated revenue.
Supports Local Government with Taxes
SMEs pay lots of taxes to the government including the taxes of local properties because
these generate revenue of high levels of the more number of loyal customers. The government
use this money for the welfare of the country and the citizens by investing in police and fire
departments, schools etc. SMEs also contribute in improving the economy by enhancing the
property values through generation of more property taxes to governments (Allen and Bull,
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2018). These small businesses also charge sales in terms of the location which proves to be the
backbone of certain taxation districts which lays emphasis on some projects that increases the
beauty of those districts by attracting maximum number of customers for shopping purposes.
Growth of SMEs to a large Corporation
All the large businesses are not initially large instead they started as a certain type of
small start-up. Many large corporations like Nike and Ben started their business journey with
very small businesses but later on became the main plays in both the markets national and
international as well. A very small initiative can change the world which was shown by
Microsoft and Amazon. The biggest advantage of this is it remains in the cities where it initiated
itself as a small business. It helps in providing employment which contributes in improving local
economy and creating the market which supports in development of various small businesses.
LO 3
P5 Characteristic Traits and Skills
Entrepreneurs are not born talented instead they inculcate certain traits and skills in
themselves to become unique among all the people (Kerr, Kerr and Xu, 2017). They are the self-
starters and have some characteristic traits in common. The employers are keen to hire such
individuals who are ready to take risks and are motivated every time (Smith, 2017). Following
are some skills and characteristics exercised by majority of the entrepreneurs:
Motivation
This is the most important trait which is must in a businessman whether small or large.
They must do all the hard work by being motivated because it creates a sense of positivity in
them and also make them more enthusiast (Chienwattanasook and Jermsittiparsert, 2019). Every
person must work with a positive attitude to get the positive desired result (Bell and et.al., 2019).
This skill makes the entrepreneurs different from the other people. The entrepreneurs do not get
demotivated even after facing regular failures instead they learn from each setback and
implement it in the next upcoming tasks.
Creativity
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Entrepreneurship begins with a new idea. The successful entrepreneurs always think of
new ways to do anything. In today’s emerging market, every company wants to hire people with
out-of-the-box ideas. They do not continue to work with the existing ideas instead invent new
ideas and new methods to implement creative ideas to make everything innovative (Abdul,
2018).
Vision
This helps the entrepreneurs to work on a clear and measurable goal. This makes the
entrepreneurs more ambitious. Vision of entrepreneurs mainly deals in the planning of various
strategies which contributes in the achieving of goals (Stephan and Drencheva, 2017). The
entrepreneurs always keep their eye on the vast picture rather than focussing on small things.
This also makes them to know about the challenges they face in accomplishing the tasks.
Risk Tolerance
This is the major quality that makes the entrepreneurs different from all the business
leaders and managers. Every business has risks and challenges but the one who is ready to take
the risks and face them bravely by taking its advantage is the one who is considered as an
Entrepreneur (Obschonka, Moeller and Goethner, 2019). Risks are a part of every process
whether it is a part of testing, analysing or anything.
Flexibility
The entrepreneurs are ready to adapt each and every type of change which makes them
flexible in every condition. The person cannot stick to one thing because the priorities must be
changes sometimes to help and solve problems of each other (Vodă and Florea, 2019). This
quality makes the entrepreneur receptive to accept the needs, opinions and ideas of every person
which helps in making the work more innovative and creative.
Decisiveness
The entrepreneurs do not have a room for procrastination (Lányi, 2016). It must be able
to take decisions quickly whenever needed without taking much time. They must also decide the
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priority of each tasks by themselves to make decisions on their own. Every action must be taken
by themselves without waiting for other’s suggestion.
Therefore, an entrepreneur inculcates the above mentioned characteristic traits and skills and
more to become unique and different from all the other business leaders and managers.
P6 Key Aspects of Entrepreneurial Mind-set
The personality of Entrepreneurs has a significant impact on their entrepreneurship which
helps in their motivation and making their mind-set positive. All the entrepreneurs face a lot of
difficulties in life which sometimes become impossible to handle. But this phase of life decides
whether the person will become an Entrepreneur one day or not. This can be well described by
considering 3 well-known successful entrepreneurs who with their sheer dedication and firm
determination were able to convert their dreams into goals and finally successful in achieving
them.
Philip Green quitted school when he was just 15 years old (Sohail, Balaraman and Telford,
2019). he started working as importer of shoes in order to improve his family’s economic
condition. He started working hard and got his hands-on training perfect in the international trade
art which helped him a lot in the upcoming projects of his venture. He does not stick to a single
job but also worked with retailers of London in Jeans Importing Business which helped him in
moving his products. His business flexibility helped him to jump easily from the business of
shoes to clothing. With his hard work and strive for excellence he started began buying clothes
and products from retailers which made him earn fortune in bulb of multi-billion dollars. Finally,
with his patience and abilities to tolerate risks, he became the CEO of Arcadia Group (net
worth of $5 Billion) which is a conglomeration of many retail companies including Topshop.
Richard Branson is famous for his exuberant and eccentric personality along with his
extravagant wealth. With his smart work and dedication, he became the CEO of the Virgin
Group (net worth of $4.6 billion) (Kerr, 2017) which was the conglomerate of many companies
including Virgin Mobile and many more. He has also shown the act of kindness and generosity
by donating million dollars to numerous trusts of charity and conscious causes of environment.
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James Dyson became a phenomenal engineer by showing his interest towards academics. He
has also shown his passion in building a vacuum cleaner which reached greater heights. He
displayed his traits of innovation in creating Dual Cyclone and Dyson Ball Vacuum Cleaners.
Dyson also showed his interest towards advanced technology by inventing blade-less fan and
HEPA-filtered hand dryers. With his hard work and persistence, he came the wealthiest
engineer in UK having Net Worth of $4.5 Billion (Gielnik, Zacher and Wang, 2018).
LO 4
P7 Impact of Background and Experiences on Entrepreneurship
The background and the life experiences play a major role in the life of entrepreneurs.
Some factors of the complete journey fosters the entrepreneurship while the other hinders it
(Adisa and et.al., 2019). This can be well explained by examining the life experience of the two
well-known entrepreneurs in UK.
Philip Green started facing difficulties when he was just 12 when his father died of a heart
attack. But this sadness cannot kill his dreams and he inherited his father’s business at a very
tender age. He has worked hard in various sectors like importing shoes, clothes etc. He started
his first business of importing jeans at the age of 21 but didn’t get success instead assisted with
a loan of £20,000 which was backed by his family (Mawson and Kasem, 2018).
He faced many controversies like Worker rights, outburst of Anti-Irish, Tax Avoidance and
many more in which the Demise of the BHS which was a firm whose inefficient performance
got him down with money and property) broke him completely. He was also faced with Sexual
Harassment and bullying allegations.
He also played football and took part in various political activities. Despite all these problems, he
became a British Billionaire Businessman and the chairman of a well-known company Arcadia
Group, retailer company involving many companies like Topman etc. which made him the most
successful entrepreneur in UK. He also donated millions of dollars to many charitable trusts.
Richard Branson started his career of business by growing and selling of Christmas Trees
and budgerigars but he failed in all his attempts. The, he launched his magazine ‘Student’. He
has his own brand named Virgin which had many products and services under it such as holiday
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packages, Telecom Ventures, hotels, healthcare etc. He also took part in various political
activities, television films and prints (Dy, Marlow and Martin, 2017). He faced failures in
various business ventures but despite this, his inventions broke many world records. He also
faced many controversies like tax evasion, criticism for promotion of Sea World, assault claim
etc. His home also caught fire by getting struck by lightning. He was majorly influenced by the
non-fiction books and autobiography of Nelson Mandela.
Despite all these difficulties, he became an English business magnate, investor, philanthropist
and an author (Smith, Hamilton and Fabian, 2019). His desire to became an entrepreneur was
fulfilled at a young age and now he is one of the most successful entrepreneurs in UK.
So, the background and experiences impact the life of entrepreneurs greatly but they face all the
difficulties and strive to achieve their goals.
CONCLUSION
The report illustrated the types of entrepreneurial ventures by describing their differences and
similarities. It also analysed the various impacts of small businesses on the socio-economic
growth. The characteristic traits and skills of various entrepreneurs is also highlighted which
makes it different from the other business leaders. The report was concluded by evaluating the
impacts of background and experiences of life on the entrepreneurship along with mentioning the
hindering and fostering factors.
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Online
Essential Facts You Should Know about SMEs in the UK. 2019. [Online]. Available Through:
<https://www.market-inspector.co.uk/blog/2017/05/facts-about-small-medium-
businesses-in-the-uk>.
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