Entrepreneurial Ventures and Small Business Impacts on the UK Economy

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ENTREPRENEURSHIP AND SMALL BUSINESS
MANAGEMENT
Page | 1

Executive Summary
This study focuses on different types of entrepreneurial ventures and different forms of
entrepreneurship. This study discusses the life cycle of entrepreneurship firms and draws a
difference and similarities between different firms. This study talks about a brief explanation of
entrepreneurship. There is an understanding of how small business impact business and relevant
data attached to it. There is an understanding of percentage of employee growth and GDP which
small business has impacted on the economy. There is a proper analysis of different role which
an SME has played in the UK economy. There is an understanding of start-ups and small
business working towards economic growth. A proper understanding of character traits of a
successful entrepreneur is discussed with different skill sets and lastly, there is a discussion on
how these characteristics reflect on creating a mindset of entrepreneurs and introduces
motivation.
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Table of Contents
Introduction......................................................................................................................................5
LO1: Illustration of different types of ventures considered in entrepreneurial...............................5
P1: Assessment of different types of entrepreneurial ventures and ways of their relation with
typology.......................................................................................................................................5
P2: Difference and similarities between entrepreneurial ventures...............................................6
M1: Investigation of diverse range of ventures of entrepreneurship for understanding its role
in corporate and public sectors.....................................................................................................8
D1: Critical evaluation of growth, development, and scope in entrepreneurial venture..............8
LO2: Evaluation of the impacts of small businesses on the economy..........................................10
P3: Evaluation and interpretation of data and statistics to identify the impacts of small business
on the economy..........................................................................................................................10
P4: Explanation importance of small businesses and start-up businesses to socio-economic
growth........................................................................................................................................13
M2: Evaluation of different medium, small and large-scale businesses relevant to the
economy based on statistics and data.........................................................................................14
D2: Critical examination of different impacts of small business on the economy....................15
LO3: Key aspects of an entrepreneurial mindset...........................................................................15
P5: Determination of character traits and skills for success in entrepreneurial level................15
P6: Entrepreneurial aspects for motivation and mindset of entrepreneurship and reflect of
personality..................................................................................................................................16
M3: Different argument according to entrepreneurial characteristics.....................................17
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D3: Analysis of motivational drivers, characteristic traits and skills for entrepreneurial success
....................................................................................................................................................18
LO4: Different environments of hindering and fostering entrepreneurship................................19
P7: Ways of using background and experiences to hinder and foster entrepreneurship.........19
M4: Linking influence of entrepreneurial characteristics and personal experiences along with
background.................................................................................................................................20
D4: Critical evaluation of impacts of background and experiences on entrepreneurs.............21
Conclusion and Recommendations................................................................................................21
Reference.......................................................................................................................................22
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Introduction
An entrepreneur is an individual who is responsible to manage a given business which is being
started up by them. It is different from being a manager or an owner to a particular business. An
entrepreneur is not recognized by the size of the business but they are recognized with how they
manage their business. A small business owner can also be an entrepreneur and a big business
can also be formed by an entrepreneur. There is a lot of significance which is carried by an
entrepreneur to shape its own business and set examples to others which inclines them towards
business. In this study, there would be a proper understanding of how different ventures has
emerged up and made a change in regards to the UK economy. This also includes how small
business is impacting the European economy.
LO1: Illustration of different types of ventures considered in entrepreneurial
P1: Assessment of different types of entrepreneurial ventures and ways of their relation
with typology
Introduction
In this part, different types of entrepreneurial ventures and their relationship with the typology of
entrepreneurship are discussed in a mannered way. There are some discussions given in relation
to different stages of entrepreneurship as well.
Different types of entrepreneurships
Entrepreneurship is an effective activity to develop new business and taking a financial risk
with the hope of greater profit. On the other hand, an entrepreneur is a person who starts the new
business with appropriate financial responsibility.
Small scale business entrepreneurship can be applied according to the needs. Thus it can help to
identify specific needs of small scale businesses and thus split entrepreneurial ventures into three
distinct groups. Additionally, it can help to identify the specific needs of individual
entrepreneurship for starting up new business as per expectations. Individual entrepreneurship is
a process of starting a new business with the help of personal ideas and taking financial risks
individually. On the other hand, as opined by Amato et al. (2017), corporate leadership is based
on a common idea generated through meeting and responsibility can be spread over different
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people. At the same time, public sector entrepreneurship can help to reduce risk and increase
responsibility based on a number of entrepreneurs. Small scale business entrepreneurship can
help to improve the business with the help of two types of entrepreneurial ventures. These are
new development and start up according to needs of business. Business start up is an active
initiative for improving business with an entirely new idea and hence it can help various small
scale businesses to grow according to the expectations of an entrepreneur. On the other hand, as
supported by Read et al. (2016), a new development in small scale business can help to improve
the business environment through the development of unique products. Acquisitions, Franchise
are related to large scale corporate entrepreneurship. On the other hand, start up and new
development is associated with small scale business entrepreneurship. At the same time, Joint
Venture is associated with scalable entrepreneurship and public-private partnership is associated
with social entrepreneurship.
Within the life cycle of entrepreneurial companies, there are 3 major steps. These are,
Birth stage: In this stage start-up companies face a lack of a proper plan and thus can face
negative financial and physical growth at the initial stage.
Breakthrough stage: This the most important stage when a new business can achieve proper
growth according to the business aim to reduce dependency over other factors gradually.
Maturity stage: This is the last stage when the company is totally independent on various market
factors and achieve optimum success as per requirements.
From the above discussion, it is very clear that the application of appropriate entrepreneurship
can help to maintain proper entrepreneurial venture as per expectations.
Conclusion
This can be concluded from this section that entrepreneur can face problems in their business
birth stage. People need to focus towards the breakthrough stage by which they can achieve their
goals in their business activities.
P2: Difference and similarities between entrepreneurial ventures
Introduction
The current part of this report is aimed to identify various differences and similarities among
major entrepreneurial ventures. The section has represented all the factors such investment,
working hour for people by which they can enhance their business venture in positive ways.
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Differences
Topic Lifestyle Venture Smaller Profit
Venture
High Growth
Venture
Investment A very small amount
of investment is
required in Lifestyle
entrepreneurial
venture and this can
be made through an
individual
entrepreneur.
Moderate investment
is required and needs
support from various
investors.
The high amount of
investment is required
to increase the supply
of each system for
higher growth rate.
Profit-seeking This venture does not
seek higher profit as
it based on lifestyle
business rather than
profit purpose.
Profit-seeking level
high with the
intention of growing a
business.
It is focused on
revenue from the
market and various
other growth metrics.
Work hour It can help to
maintain a good
balance between
work and life.
Extra work hour can
be implemented
according to work
pressure.
Work hour is specific
to maintain a proper
balance between life
and work
Organisational
structure
No specific
organisational
structure is required.
The heavily organised
structure is required
to fulfil the
objectives.
The highly organised
structure is required
to fulfil the
organisational goals.
Table 1: Difference between entrepreneurial ventures
(Source: Created by author)
All these 3 ventures are associated with very low to moderate risk in financial and physical
aspects. Moreover, according to Dunne et al. (2016), all these 3 entrepreneurial ventures are able
to innovate new products according to own capacity and business requirements over time. Hence
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all these 3 entrepreneurial ventures can further lead to greater success in the target market as per
expectations (Viinikainen et al., 2017).
Entrepreneurship is a management system that allows self-motivated, action-oriented and
proactive employees to act as an entrepreneur and help to overcome various critical conditions.
On the other hand, Social Entrepreneurship is a process by start-up companies to develop new
solutions for cultural, social and environmental issues.
Above discussion has shown that proper analysis of differences and similarities between various
entrepreneurial ventures can help to select appropriate one and thus reduce threats associated
with business through proper growth.
Conclusion
This can be stated from this section that individual needs to investment a greater amount of
money for high growth venture. Furthermore, this has stated about the social entrepreneurship
and its advantages as well.
M1: Investigation of diverse range of ventures of entrepreneurship for understanding its
role in corporate and public sectors
The range of ventures of entrepreneurship is heavily diversified and is divided on the basis of
public and corporate sectors. The public sector is an organisation with full control by different
local and national level government organisations. On the other hand, according to Mudalige et
al. (2016) corporate sectors are different business organisations with individual and company
based control. Hence different ventures of entrepreneurship under public and corporate sectors
can be joined under entrepreneurship and achieve greater financial success as per needs.
Additionally, it can help to improve cooperation between public and corporate sectors and thus
create a higher chance of profitability.
D1: Critical evaluation of growth, development, and scope in entrepreneurial venture
Entrepreneurial ventures are able to identify specific needs according to different types of
business and their entrepreneur. Hence it can improve the scope for proper development and
growth in small scale businesses and improve the quality of products and services in the
business. In addition to that according to Kozubíková et al. (2017), application of appropriate
entrepreneurship can help to identify different organisational needs and help in the achievement
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of optimum success. On the contrary, as opined by Fried and Tauer (2015), higher amounts of
financial support are essential to properly use the scopes in development and achieve the growth
as requirements.
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LO2: Evaluation of the impacts of small businesses on the economy
P3: Evaluation and interpretation of data and statistics to identify the impacts of small
business on the economy.
Introduction
In this part of report interpretation and assessment of relevant data and statistics will be made to
understand the impacts of small and micro businesses on the economy. Different statistical data
has represented in this section for getting the impact of the small business in the economy of
different regions.
Statistical representation
Figure 1: Employment rate in the UK
(Source: https://tradingeconomics.com/united-kingdom/employment-rate)
The rate of employment in the UK is very high and hence it can help different small and medium
scale businesses in the country to properly recruit an appropriate number of employees in
business according to requirements. Thus it can help to provide positive impacts over different
challenges and help in the process of economic growth.
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Figure 2: GDP growth rate in UK
(Source: https://tradingeconomics.com/united-kingdom/gdp-growth)
GDP rate is very high in the UK that indicates new SMEs can contribute to countries economic
growth very easily
Figure 3: Rate of inflation in the UK
(Source: https://tradingeconomics.com/united-kingdom/inflation-cpi)
The inflation rate in the UK is very low for the last five months that can help SMEs to properly
support the economic growth of the country.
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Figure 4: Rate of interest in the UK
(Source: https://tradingeconomics.com/united-kingdom/interest-rate)
The rate of interest is comparatively high after the second half of 2018 in the UK market that
can help SMEs to properly invest their money and strengthen the country's economy.
A number of created jobs in the UK market are quite high and the employment rate is supporting
the purpose of job creation by different SMEs. On the other hand, as supported by He et al.
(2017), the rate of different innovation with the help of financial support has helped the country
to achieve greater success in the field of innovation. Hence it can be said that SMEs have played
a key role in the UK to promote its economic growth as per requirements.
A) Medium sized businesses have a common intention to earn more profit and convert the
business in a large scale business. Thus they recruit an appropriate number of employees to
support various operations. Hence it can help the economy to achieve better economic growth.
B) A large business is able to recruit in heavy amounts and thus it can help to improve market
conditions in the current market. Hence it can help to improve the employment process and
provide better growth to the country’s economy.
C) SMEs can help to recruit local people to grow their business in a particular location. Thus this
kind of businesses around city London can help to improve the local economy.
D) SMEs, at different parts of the global market, can help to employ local people to maintain
sustainability in a particular locality. Thus it can directly contribute to the international economy
and help to achieve economic growth as per expectations.
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