Exploring Diverse Entrepreneurial Ventures and their Economic Impact

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ENTREPRENEURSHIP AND SMALL BUSINESS
MANAGEMENT

Entrepreneurship and Small Business Management
Table of Contents
Introduction......................................................................................................................................3
LO1 - Exploration of the types of entrepreneurship ventures....................................................3
P1 - Examining different types of Entrepreneurial Ventures.......................................................3
Relation to the Typology of Entrepreneurship.............................................................................4
P2 - Explanation of similarities and differences between Entrepreneurial Ventures..................4
D1 - Scope, growth and development in entrepreneurial ventures..............................................6
LO2 Assess of the impact of small business on economy...............................................................7
P4 - Importance of business start-ups to the development of the social economy......................7
M2 - Differentiation of Small Medium and Large Business.......................................................7
LO 3 – Key aspects of Entrepreneurs Mindset............................................................................9
LO3 Determination of the key aspects of an Entrepreneurial Mindset.........................................11
P5 - The traits and characteristic of an entrepreneur that differentiates with other managers:..11
P6 - The aspects of entrepreneurial personality reflect entrepreneurial motivation and mindset:
....................................................................................................................................................12
LO4 - Examination of different environments that had an effect on Entrepreneurship............12
D4 –Evaluation of background and experiences that influences entrepreneurs, both positively
and negatively............................................................................................................................13
Conclusion.....................................................................................................................................14
Reference List................................................................................................................................15
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Introduction
The report elaborates my experience on the seminar I have attended about entrepreneurship.
Three types of entrepreneurship we can have in present era, which includes Schumpeterian
entrepreneurs, Entrepreneurs, and Managerial business owners.
Schumpeterian Entrepreneurs – Small business are the main domain of the entrepreneurs whose
main object is to growth and profit. They run their own organizations with sheer creativity and
utter patience. Achieving their goals, they often go for the Managerial ones or start a new set up
for something else to sell on. Being an employee, they called entrepreneurs as they put new
principles for the betterment of the organization wasting their own time even giving a threat to
their job. After a long time experience, they become Schumpeterian Entrepreneurs with a start –
up. Managerial Business Owners - Later one more type of entrepreneurship has found in the
sphere.
Opportunity and Necessity Entrepreneurship – Opportunity symbolizes to chance. Henceforth
opportunity entrepreneurs are those who seek a chance a market to start a unique business to
cover a gap in market. While necessity entrepreneurs are the ones who really do not have any
other work option in increasing situation of unemployment and compelled to start a new
business. In both the cases, they face a risk of bankruptcy and the workers of the company also
do not have job security according to the situation. Entrepreneurial can have four types of
ventures – survival ventures, lifestyle venture, managed growth ventures, Aggressive growth
ventures.
LO1 - Exploration of the types of entrepreneurship ventures
P1 - Examining different types of Entrepreneurial Ventures
Survival Ventures – The word survival denotes some pressure as a result this type of business is
for the survivals of the members of a family and comes from opportunity and necessity
entrepreneur. The ventures are more concerned about earning their livelihood and least bothered
about any sort of registration neither do have premises, bank account, and assets. The venture is
only a result of demanding situation. The ventures also have to go through by sheer competition,
cheap priced materials. The hawkers can be the perfect example of this type of venture. Hawkers
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do not dream of a lavish or luxurious life rather only want to get two full meals in a day and also
want to offer a better future to his children.
Lifestyle Ventures – a particular owner who does have a minimum financial strength to run the
business and to offer jobs to a selected number of people owns the venture. An office is also
being offered by the ventures. The ventures can manage the competitive structure of the market
on the contrary due to financial issues cannot achieve economic affluence. Roadside food stalls
can be the perfect example for this type of venture as they have a specific space, certain amount,
and some staffs.
Managed Growth Ventures – the ventures object towards growth and stability by the passing
time with the allocation of locations, staffs, creation of brand by producing new products time to
time in the market. Thus ongoing process of betterment gives the venture financial stability. For
example, food joints can be referred as they have many branches regionally and have capital to
increase the venture.
Aggressive Growth VENTURES – The technology-based ventures are the result of innovation of
a team with sufficient capital in hand. The ventures have longing for capability and exponential
growth. Opportunity entrepreneurs start the ventures whose market is national or international.
As a result, growth of this, ventures are quite noticeable. Like Mac etc have an international
market to sell their project.
Relation to the Typology of Entrepreneurship
Survival entrepreneurs often categorized with necessity entrepreneurship as they start their
venture only to earn their livelihood where they do not get any other option whereas lifestyle
ventures are of opportunity entrepreneur where they get opportunities from the background. On
the contrary, managed growth ventures and aggressive growth ventures belong to Schumpeterian
entrepreneur where having the objects of growth and share quality of creativity and patience.
P2 - Explanation of similarities and differences between Entrepreneurial Ventures
Similarities –
1. All the ventures support economy of the society to some extent.
2. All the ventures concerned about price.
3. The ventures support each other can be seen by a deeper research.
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4. The ventures work independently.
Differences -
Survival ventures Lifestyle ventures Managed and
Growth ventures
Aggressive Growth
ventures
1. Offers only
livelihood.
Provides a better
living.
Offers increasing
economical
structure
Offers luxury
(Schapers., 2016).
2. No capital in
hand
Certain amount to
run the venture
Proper funding for
the venture
Enough money for
the venture
3. Only member
to do the venture
Owner oriented and
management is
there.
A business model
venture.
A team runs the
venture (Hamid et
al., 2016)
4. No office, no
employee
Only one office
premises
Regional offices Multiple offices in
many places
(Tominic., 2018)
5. Do not go for
new products
Hardly go for new
products
Launch new
products after a
certain period of
time
Often launch new
product (Odili and
Ona., 2018)
6. A very short
market to sell the
product
Locality is the
market
Region is the market Goes for nation and
international market
(Ayedun et al.,
2018).
7. Never go for
the wider the
Try to make it large
but due to
Only object is to
make it large
Always thinks in a
larger scale.
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venture insufficiency of
capital attempts go
in vain.
Different types of entrepreneurship in both the public and corporate sector – Different types of
entrepreneurship have diverse impact on both public and corporate sector. Corporate sector are
those, which is not controlled by the government while public sector provides only government
services. Survival ventures can work in both corporate and private sector. For example, a hawker
can sell his product in both corporate and private sector as both the sector can have the
requirement of that particular product. Lifestyle venture are like small shops, which have impact
on both the sectors. Both public and corporate sector people can buy product from these
ventures. Managed growth ventures are franchise, food joints etc. They serve their product to
both the sector as per requirements as well as they also share the economic growth of the society.
Aggressive growth ventures are of national and international brand and severely support the
financial stature of the country. Both private and corporate sector take service from these
ventures (Ahsan et al., 2018).
D1 - Scope, growth and development in entrepreneurial ventures
There are plenty of scopes in the market in all three entrepreneurship while these all offers
freedom to start whenever and wherever anyone want. These entrepreneurs share equivalent
importance like business where the ventures can be successful if they work together maintain a
good balance. Young generation is rather interested to be an entrepreneur in spite of being a
service holder; henceforth the graph of growth and development is increasing. They get sheer
motivation from own creativity and innovative nature. The statistics also show that small and
medium business owners do have great openings for these ventures. Research of the market is
showing that 85% ventures are of survival and lifestyle ventures whereas managed growth and
aggressive growth offers multiple job options to people thus emerging in the growth of the
society. It has also found that some entrepreneurs cannot be called as entrepreneurial as they do
not fulfill the criteria of being an entrepreneur (Fried et al., 2015).
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LO2 Assess of the impact of small business on economy
P4 - Importance of business start-ups to the development of the social economy.
The Role of Small Business in UK Economy Research of last few years shows both advantages
and disadvantages on small business on the economy of UK. Increasing CPI (CONSUMER
PRICE INFLATION) compelled the consumers to tight up their budget, which gives a threat to
small businesses. The UK economy is undergoing with a down road where small business can
only help it. The reasons are:
1. Turnover – this is undoubtedly important though not only one to discuss on the topic. In
2018 2 trillion euro turnover has been offered by small and medium business. It is
astonishing that the amount is 52% of total turnover of private sector.
2. Employment – small business offer jobs to 16.3 million people, which is 60% of total
private sector.
3. Growth - it is also being said that the employment will increase to 50%, which is quite
impressive.
4. Industry – small business is of 99.5% of overall economy, which mostly depends on
wellness and beauty, personal services and professional services that includes financial
consultation. Thus it can be undoubtedly said that small business is sharing a good
relationship with economy of UK.
It is also relevant to discuss on the stability of these business. Research is saying that the stability
of these sort businesses are of at least three years which is not ignorable (Burns 2016)
M2 - Differentiation of Small Medium and Large Business
The study aims at the focus and now we will discuss the difference of small-scale industries,
medium scale industry, and the large- scale industries.
Small Scale Industries Medium Scale Industries Large Scale Industries
 In UK, the small-
scale industries are
the backbone and the
pillars in building and
 The Medium Scale
Industries also have an
impact on the ideas that
are correlated with the
 In the analysis of data
the large-scale
industries plays a
huge role in creating
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act as entrepreneurs
in the country’s
prospect.
 The innovation and
the encourage in the
competitive market
plays an important
role in providing the
series of the
outcomes that has a
direct impact on the
company.
 The idea is to
encouragement of the
flourish in the nature
of the business that
affect the most part of
it almost to me
precisely 80% of the
effect (Yitshaki, and
Kropp, 2016).
 In improving the
confidence of the
enterprise that is of
British origin has a
positive impact on the
growth on both end at
national, domestic,
and at international
level.
fact that the most
effective part of the
business that affect the
overall economy of the
country (Gür, Oylumlu,
and Kunday, 2017).
 The competitive edge
of Medium Scale
Industries and the factor
becomes more
staggering with a view
of the fact of the
economy that more
prolific approach is
required than the small-
scale
industries(Stephan,
Hart, Mickiewicz and
Drews, 2015)
 The medium scale
industries creates an
intention with the view
of maintaining the
respect and the
delligateries part where
the essential mode of
improving its quality
towards the growth of
the UK economy
the effect of
measuring the overall
economy in terms of
country entrepreneurs
and the success.
 The further
investigation has
shown us that the
issue related to the
large-scale industries
plays a huge role in
the developing the
business in UK’s
overall development
in economy.
 The impact on the
Large scale industries
are fairly of the more
or less of the same
effect like the other
two that is small scale
industries and the
medium scale
industries.
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prospect.
In the analysis of the above study, we came across various innovation policies and the guidelines
in order to procure the balance between the UK nation output and the standard of delivering the
business. In order to generate the true essence of seedbeds of innovation and challenges that
country face (Feder, and Niţu-Antonie, 2017). It acts as stimuli in order to manage and run the
business to the different dimension. In order to the respective studies and the analysis of the data
it had been the justified with the fact that the study highlights on the potential ability of the
business that has a direct impact on the nation’s goal (Shepherd, Williams, and Patzelt, 2015).
The explanation had been provided as the start up business especially the highlighting factors of
small-scale industries. In case of Medium Scale Industry and the Large-scale industries it had
been found while the in depth, analysis of the whole study reveals about the impact of business
and as a result the critical analysis of the Large Scale industries, Small scale Industries, and the
Medium scale industries (Obschonka, 2017). The direct effect on the UK economy is the major
and the correlated factors in developing the strategies formulated by the organization so that the
view of the economical output does not create the measuring impact on the nation's per capita
income (Wach, Stephan and Gorgievski, 2016). In the generalized version of the study we can
put a limelight on the fact that the small business are the main domain and as we had discussed
earlier about the managerial business owners who does the franchise based business also
maintain small shops has a direct impact on the socio economic impact.
LO 3 – Key aspects of Entrepreneurs Mindset
Entrepreneurial mindset is the particular state of mind that orients human conduct with the
entrepreneurial outcomes and activities. The key aspects of entrepreneurial mindset are:
Informative mindsets: A successful entrepreneur is always informative in nature. The
information can be related with the operating and finance performance or information regarding
other aspect. The informative mindset is an helpful tool to take decisions (Staniewski, Slomski
and Awruk, 2015).
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Risk taking capacity: Every successful entrepreneur are the risk taker. The entrepreneur takes
the calculated risk.
Self-Reliant: Good and smart entrepreneur has the best ability to manage the people. The smart
entrepreneur has the capacity to eliminate the dependability factor from the workers
(Raudeliūnienė, Stadnik and Kindarytė., 2016).
Change oriented: The business environment is always changing in nature. The changes related
to technological changes, environmental changes, customer expectations are always plays a
significant role in business environment. The entrepreneur has the ability to adopt with the
changing circumstances and make employed accustomed with the possible changes (Zahra and
Wright, 2016). The active participation of the creation of enterprise in the dynamic approach on
the economical conditions of the business and as a whole the more elaborative approach that had
a direct influential effect creates motivational factor of the enterprise(Yitshaki, and Kropp,
2016).
Mostly, we had gone through the analysis of the data that in UK the undermine factor and the
evidences had shown us that the most common issue that can get generated on the basis of the
small medium and large scale business has a rarely involved with the significant amount of the
motivating factor that highly propels on Entrepreneurial Motivation. The dynamic and the most
effective phenomena of the whole research had focused on the ideas that the level of
motivational system ruptures the overall behavior of the certain factors that has a direct impact
on the enterprise (van der Zwan et al ., 2016). The intrinsic nature affects the motivational factor
of a person and that factor has a role on the business and the ideas of the factors overwhelms the
concept of appropriate motivational impact on the society and the development of creating the
long lasting effect on the society. In the upfront of the society and the relative paucity of the
evidence of statistical analysis on the nature of an employment and the relations with the small
scale business , medium scale business, and the large scale business has a huge role in
upbringing the society (Feder, and Niţu-Antonie, 2017).
As a whole, the process is a less pertinent to experience of an enterprise that has an direct impact
on the society and the most trusting factor is the employees of the organization and its
motivational factor. In this empirical analysis we have drawn a number of previous theoretical
studies to provide an analysis of the primary determinants and based on those theoretical studies
the incumbent factor is the true necessities that an society has a direct impact. In overall analysis
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and in depth research the subject area and the area of concern for most part of the rational and
the perception of the subjective view. The decision to start a business has an innate abilities and
the matter focuses on the view of the assessment that an Entrepreneurial Motivation is a key and
major impact on the company’s direct output(Yitshaki, and Kropp, 2016).
LO3 Determination of the key aspects of an Entrepreneurial Mindset
P5 - The traits and characteristic of an entrepreneur that differentiates with other
managers:
Some certain characteristics make an entrepreneur different from others. The success and failure
of a business venture is depends on the decisions of entrepreneur. However, the successful
entrepreneur has the wide range of personality traits. Therefore, they have certain kinds of
characteristics, which have:
Precise communication
Most of the entrepreneur has the ability to speak on a clear tone with proper vision and mission
system. Most of the successful entrepreneur has the ability to communicate with peers or other
people on a goal-oriented manner. The entrepreneur has the ability to explain each details on
their organizations (Amato et al.,2017).
Hard working
The successful entrepreneur is also hard working. They know each and every detail about their
work area, and also work according to their mission. Most of entrepreneurs work hard during the
hard times, and they work hard until they find success (Wiklund, Yu, Tucker and Marino, 2017).
Competitive
Most of the entrepreneur is disciplined and ethical in nature. The main aim of successful
entrepreneur is to be highly competitive in nature. The competing capacity in entrepreneur helps
them to take decisions in difficult time.
P6 - The aspects of entrepreneurial personality reflect entrepreneurial motivation and
mindset:
The entrepreneurial personality is the characteristics, the abilities, the attitudes, motives, and
values that entrepreneur has in their personality and behavioral aspects. On the other hand the
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entrepreneurial motivation is the procedure of transformation the opportunities and also helps the
organization to achieve the desired goal along with the goals and weakness of the organization.
Entrepreneurship mindset is the particular frame of mind that links between entrepreneurial
activities and entrepreneurial outcomes. The mindset is often described as new ideas, risk taking
capacities and challenged behavior in difficult situations.
● The key aspects of entrepreneurial mindset are informative mindset. The mindset helps
the organization to to motivate their employees to perform better.
● The risk taking capacity of an entrepreneur helps the organization to motivate other
employees in such a way that they become more competent and tactful in difficult
situation. Steve jobs is another remarkable entrepreneur and grandfather of digital space.
● Another mindset of entrepreneurship is change oriented. The change oriented mindset
helps the organization to stay strong in difficult situation (Berglund and Korsgaard,
2017). Oprah Winfrey is one of the highly influential entrepreneurs who first worked as a
radio jockey, then through high spirit and aspirations she runs a widely popular show
named Oprah Winfrey show.
● Another important mindset of entrepreneurship is self-reliant. Entrepreneurship
eliminates the scope of inter-dependability among individuals. The lesser amount of
dependability can translate the work into better position and also motivate other people to
perform better in their individual area (Bosma, , Content, Sanders and Stam, 2018.).
LO4 - Examination of different environments that had an effect on Entrepreneurship
The background and experience can foster entrepreneurship:
Entrepreneurship is emphasized as the willingness and capacity that manage and develop a
business venture successfully with proper risk measuring technique to earn more profit. The
background and experience factors contribute a lot in entrepreneurship aspect. The
entrepreneurship quality is directly linked to the families and has a great impact on
entrepreneurship skills. Most of the times family members share common interests and similar
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