Entrepreneurship & Small Business Management: Venture Types & Impact

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This report provides a comprehensive analysis of entrepreneurship and small business management, focusing on different types of entrepreneurial ventures and their relationship with the typology of entrepreneurship. It explores the similarities and differences between these ventures, assessing their impact on the UK economy with relevant data and statistics. The report highlights the importance of small businesses and start-ups to the growth of the social economy, describing the UK economy and its significance to society. It also delves into the entrepreneurial ventures adopted by Edison's GE group, emphasizing technology and large-company entrepreneurship. The document further examines the unique offerings of micro and small businesses, their role in strengthening the local economy, providing employment opportunities, and delivering better customer services, ultimately contributing to a deeper understanding of entrepreneurship and its economic implications.

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Table of Contents
INTRODUCTION.............................................................................................................................. 3
LO1................................................................................................................................................. 5
P1 EXAMINATION OF DIFFERENT TYPES OF ENTREPRENEURIAL VENTURES AND EXPLANATION
ABOUT THEIR RELATION WITH TYPOLOGY OF ENTREPRENEURSHIP.........................................5
P2 EXPLORING THE SIMILARITIES AND DIFFERENCES BETWEEN ENTREPRENEURIAL VENTURES
................................................................................................................................................... 8
LO2................................................................................................................................................. 0
P3 INTERPRETATION AND ASSESSMENT OF THE RELEVANT DATA AND STATISTICS TO
ILLUSTRATE HOW MICRO AND SMALL BUSINESSES IMPACT ON THE ECONOMY......................0
P4 EXPLAIN THE IMPORTANCE OF SMALL BUSINESSES AND BUSINESS START-UPS TO THE
GROWTH OF THE SOCIAL ECONOMY. DESCRIBE THE ECONOMY OF THE UK AND THE
IMPORTANCE OF TO SOCIETY....................................................................................................3
CONCLUSION................................................................................................................................. 5
REFERENCES................................................................................................................................... 6
List of Tables
Table 1: Differences between Entrepreneurship Ventures............................................................9
List of Figures
Figure 1: Entrepreneurship............................................................................................................ 2
Figure 2: Share of enterprises in the UK...................................................................................... 11

INTRODUCTION
Entrepreneurship has been found to be one of the essential components for the social and
economic growth of a nation. It helps in the development of local, regional and national
economies as a whole. Although it looks simple, yet it is a complex and dynamic process.
Furthermore, each individual has different entrepreneurial capabilities which are based on their
knowledge and experiences acquired by them during their lifetime (Scarborough, 2016).
In the given report, different types of entrepreneurial ventures both in public and private sector
have been carefully examined which also includes finding out similarities and differences
between these entrepreneur ventures. After studying these ventures, it would be evaluated
that which venture would be suitable for the given enterprise in the study. Afterwards, the role
of these units in developing the UK economy would be thoroughly discussed. Besides, there
would be a discussion on the different small, medium and large businesses and the
specifications that categorize a business in the given form. Furthermore, there would be an
evaluation of the qualities and personality traits of a successful entrepreneur. At last, a
discussion would be held about the importance of family background and experience to make
entrepreneurship in a business successful.

Company Overview
General Electric (GE) is an American conglomerate multinational company based in Boston and
operates in electrical, locomotives, aircraft engines, and software and so on. Co-founded by
renowned inventor and a successful entrepreneur Thomas Edison in 1892, it is the fourth
largest and 14th most profitable company across the world (Allen, 2017). The concept of
entrepreneurship would be explained through the working of GE and how this term has
provided it proficiency to become one of the most successful companies’ whole over the globe.
Figure 1: Entrepreneurship
[Source: Dilli, et al. 2018]

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LO1
P1 EXAMINATION OF DIFFERENT TYPES OF ENTREPRENEURIAL VENTURES
AND EXPLANATION ABOUT THEIR RELATION WITH TYPOLOGY OF
ENTREPRENEURSHIP
Entrepreneur Venture: It could be defined as those entrepreneur organisation which emphasis
more on innovation and opportunism in order to have access to profit in the business. There
are various types of entrepreneur ventures or entrepreneurship which are practised by the
founders of various large as well as small enterprises. These are:
TYPES OF ENTREPRENEURSHIP
Small Business Entrepreneurship
These are individually run businesses which are operated at small scale. It includes hairdressers,
grocery stores, bakery shops, electricians, travel agents and many more. They are mostly run by
hiring local employees and the profitability for them includes providing enough earning to feed
their family well. In order to attract venture capital, funding of their business is done either
through their friends and relatives or through business loans. Most of the companies across the
globe follow this type of entrepreneurship as they provide a large number of employment
opportunities and thus positively contribute to their growth economically (Drucker, 2014).
Scalable Start-up Entrepreneurship
This type of companies starts on a small scale but in the given time, they transform themselves
into a large enterprise based on their vision and belief. They have faith in their leadership skills
and business idea and thus are able to collect funds for their business from big corporate
houses which would then help in increasing their business and distribution networks. These
companies recruit the best talent which would enhance the growth of their business via their
innovative approach and thus helps to provide them with a competitive edge over their

competitors. Although they account to a small number of entrepreneurship in the form of
innovation clusters such as Silicon Valley, yet they attract most of the risk capital due to their
large returns (Chowdhury, et al. 2018).
Large Company Entrepreneurship
Large and conglomerate type of the organisations make up this type of entrepreneurship and
posses a strong impact on the economy of any country. The departments of such organisations
are structured into human resource, marketing, production, operations and supply chain. In
order to provide value to the customers through their products and services, they often work in
collaboration. There is a separate allocation of budget for each activity so as to maintain the
yearly accounts of their business in a planned and controlled manner (Scarborough, 2016).
Social Entrepreneurship
These are business ventures which work for providing valuable benefits to the society without
aiming for extracting maximum profits for their business operation. They engage themselves in
developing those products and services which solves the social needs of the society at large.
They emphasise more on innovation and provides services such as health care, community
development and poverty elevation programs. They include non-profit or hybrid organisations
(Mrożewski and Kratzer, 2017).
Technology Entrepreneurship
The technology entrepreneurship uses modern technologies with an innovative approach to
producing new products for their customers. This could be accomplished by assessing the
demand of the customers and directing the research and development activities to make the
products as per their requirements. They are in constant search for innovative ideas which
could provide them with an opportunity to satisfy the needs of the people and generate
maximum revenue for the company (Chowdhury, et al. 2018).

Entrepreneur venture adopted by Edison’s GE group
For the GE group founded by Edison, the entrepreneurship it should adopt is technology and
large-company entrepreneurship. Technology entrepreneurship is based on innovative
approach and so adopting such approach would help an enterprise like GE group to provide
new products and services to the customers who would help the company to provide maximum
satisfaction to its customers and thus earn more revenue. Furthermore, as it is a conglomerate,
so large-scale entrepreneurship would allow it to offer new products via sustaining innovation
and thus would be beneficial for the company to access to not only new customers but also the
new market (Dilli, et al. 2018).

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P2 EXPLORING THE SIMILARITIES AND DIFFERENCES BETWEEN
ENTREPRENEURIAL VENTURES
Similarities between different Entrepreneurial Ventures
There are various similarities between different types of entrepreneurship which were
explained in the above paragraph. First, all these organisations work towards achieving the
common goal of designing those products and services which would be available to the
customers at a good value. Second, one of the prime concerns for all these organisations is to
provide the customers with services which would satisfy their needs and requirements. This
could be done by designing marketing activities via which the customer would be able to
recognise their products easily and provide them with a cutting edge against their competitors
(Sawangand Unsworth, 2011).
Another common thing among all the entrepreneurship ventures is the effective utilisation of
the digital technology which is being used in each and every aspect of the business. These
aspects include production, distribution, sales, operations, research and development,
marketing and servicing and many more. They help in simplifying the operations of any
company and reduce the time taken to complete the task. Moreover, they are of low cost and
provide the marketing activities accuracy and reliability so as to present the products and
services in front of the customers effectively (Drover, et al. 2017).
The rules and regulations prescribed by the government authorities are almost similar to these
different types of entrepreneur ventures. Different types of laws and legislation related to
gender equality, equal pay for equal work, workplace diversity; small, medium and large
enterprises, working hours and many more are valid to every organisation (Belzand Binder,
2017).
Differences in Various Entrepreneurial Ventures
There have been some differences also between these different types of enterprises. Such
differences arise due to their size, annual turnover of their business and number of employees
working in their enterprises. These could be defined by the following table:
Table 1: Differences between Entrepreneurship Ventures

Entrepreneuria
l Ventures
No. of
Employees
Annual
Turnover
Role Risks Access Focus
Micro
Enterprises
10-50 $2
million-
$10
million
Play
competitive
role
Low Risk To
human
capital
To
generate
revenue
and profit
Medium
Enterprises
50-250 $10
million-
$50
million
They play
participating
and
empowering
role to allow
employees
to gain
efficient
knowledge
so that they
would be
able to
provide
valuable
output for
the
company
Medium
to High
Risk
To
human
and
social
capital
To
generate
profit and
expansion
of the
business
Macro
Enterprises
250-500 More
than $50
million
They
acquire
leadership
role so as to
plan for
those
Very
High
Risk
To
corporate
resources
To bring
changes
within the
industry by
expanding
revenue,

marketing
and
operational
strategies
which
would be
followed by
the
employees
so as to
become
successful
and acquire
market
share in the
industry
(Mazzucato,
2015)
acquiring
market
shares and
establishing
themselves
as supreme
leaders in
the given
industry

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LO2
P3 INTERPRETATION AND ASSESSMENT OF THE RELEVANT DATA AND
STATISTICS TO ILLUSTRATE HOW MICRO AND SMALL BUSINESSES IMPACT ON
THE ECONOMY
There has been a significant contribution of micro and small-scale enterprises to satisfy the
needs and aspirations of the local customers of any country and thus have an important impact
on the economy of that country and could be explained by:
Unique Offering
Micro and small businesses provide the customers with their customised services which are
difficult to be made available by the large enterprises. They understand the needs and
requirements of local customers and thus design their products and services in such a way that
it provides immense satisfaction to them. The local economy is largely benefitted through them
as they help in providing those products and services which are not easily available to them and
thus help them to focus on their family well. Thus, it results in large-scale improvement in the
local economy (Gallouj, et al. 2013).
Strengthening of Local Economy
The continuous activities of small and medium enterprises help in strengthening of the local
economy. In contrast to the multinational organisation, there is a continuous circulation of
money which helps the industry to remain dynamic in nature. Moreover, these transactions
have a negligible impact of international fluctuation in the rates of the currency which support
the local economy to a great extent (Katongole, et al. 2013).
Employment Opportunities
A large variety of businesses in the local economy operates through such small enterprises and
it includes local eatery shops, saloons, gift shops, small grocery stores, gym and wellness

centres. These small businesses provide job to all these people at the local level and help in
bringing improvement in their financial conditions.
Better Customer Services
Due to tough competition, the industries coming under small-scale enterprises are compelled
to respond towards the problems faced by the customers at a faster rate by making them
available the customer services with good quality and at affordable prices. This helps in
satisfying the needs and requirements of the customers in an efficient as well as an effective
way (Chowdhury, et al. 2018).
Furthermore, the impact of micro and small-scale enterprises on the economy could also be
explained using relevant data:
a. There has been an estimation of 5.2 million businesses in the EU and 99% of them belong to
small and medium scale enterprises.
b. They provide employment to more than 93 million people and accounts for two-thirds of the
total generation of the employment as per the report of 2016 (Pickernell, et al. 2011).
c. Most of these small-scale enterprises are working in the food industry, construction and real
estate sectors and business services.
d. They had helped the economy of countries of EU to recover from the financial crisis in an
efficient manner.
e. Large-scale enterprises comprise 0.1% of the total business, yet provide 49% of the total
employment.
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Figure 2: Share of enterprises in the UK
Source: [Loader, 2018]
It has been found that 2 out of 10 employees working in the UK are employed by the SME's and
thus accounts for 57 cents of every euro of value addition. Besides 9 out of 10 small businesses
in the UK are comprised of micro businesses (Hillary, 2017). The given report also illustrates
that small and medium enterprises provided a large number of employment and occupy most
of the business, yet have low turnover as compared to large enterprises (Loader, 2018).
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P4 EXPLAIN THE IMPORTANCE OF SMALL BUSINESSES AND BUSINESS START-
UPS TO THE GROWTH OF THE SOCIAL ECONOMY. DESCRIBE THE ECONOMY OF
THE UK AND THE IMPORTANCE OF TO SOCIETY
Small business and the start-ups have a great contribution to the economic development of the
UK. Small business like a local barber shop, mom and pop stores and yoga centre provide
employment to a large number of people at the local level. In addition, these businesses also
contribute to developing the social economy (Ward and Rhodes, 2014). Below given are some
benefits provided by the small businesses and start-ups:
INCREASED STANDARD OF LIVING
Small businesses also provide an opportunity for the people to become self-reliant and improve
their financial condition through hard work. These business owners take charge of their life and
not only provide employment to self but also to the many other people working in these
businesses. Car wow which is an online service in the UK which helps people to buy a new car
was started in 2013. It started with 5 employees and only 5 years the company has increased its
profit many folds and at present, it employs 120 people. These people experience an improved
standard of living by associating with these businesses and are able to health and education to
their family members.
BETTER SERVICES
The customer services provided by these small businesses and start-ups are much personalised
as compared to the multinational companies. These stores are able to satisfy the demand of the
customers better by improving their products and services immediately according to the
feedback from the customers. Making a change in the process so quickly is not possible in
multinational companies as complex management structure takes a lot of time to transfer
information from lower level to higher level (Storey, 2016). Local stores owners are also able to
make good relationship with the customers and often remember the names of the customers
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which are helpful in making a strong emotional bond and the customers come again and again
to these stores.
MAKING THE LOCAL ECONOMY STRONG
The local economy becomes strong due to these businesses because money which is spent in
these shops is used on a local level. The circulation of money in the local market is beneficial to
the national economy because this type of money is protected from the turbulence in the
international economy (Ward and Rhodes, 2014). These businesses have the ability to generate
decent profits even in the time of international economic crisis. The taxes paid by these small
businesses and start-ups helps in improving the quality of services at the local level. Small
business often sponsors local cultural festivals and sports tournament to market their product
and services which further strengthens the local economy.
JOB OPPORTUNITIES
Out of the total employed person in the UK, almost 50 % of people are working in these small
businesses. The employment provided by these industries is valuable because the employment
is provided at the local level which is helpful in reducing the overcrowding in cities due to the
large-scale migration of people from small cities towards big cities (Storey, 2016). Due to high
employment generating a capacity of this business, the government supports financial and
technical support to these businesses that they can increase their size and expertise and can
provide livelihood opportunities to larger masses.
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CONCLUSION
The current assignment presented a detailed report on different kinds of entrepreneurial
ventures and the role of these businesses in strengthening the economy of the country. There is
a lot of risks associated with starting a new business. But this is also a fact that risk and reward
go hand in hand. These businesses generate huge revenues at the local level which keeps the
money local and provide an opportunity to the people to get livelihood opportunities in the
local area. The assignment discussed different types of entrepreneurial ventures in the UK like
small scale, medium scale, large scale, scalable and lifestyle ventures. Thomas Edison did a
number of scientific discoveries and was a hard-working entrepreneur who was able to covert
his ideas into successful business projects. The assignment discussed the characteristic traits of
Thomas Edison which made him successful. His early education, family background, and
national condition all the things made an impact on his entrepreneurial mindset and he
established himself as a successful inventor as well as an entrepreneur.
5

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