ESBM Report: Entrepreneurial Ventures, Skills, and UK Economy Impact

This report provides a comprehensive overview of entrepreneurship and small business management, covering various aspects of the field. It begins by defining entrepreneurship and exploring different types of ventures, including private, public, and social entrepreneurial models, highlighting their objectives, revenue sources, and key stakeholders. The report then examines the significant impact of micro and small business organizations on the UK economy, emphasizing their contribution to employment and overall economic growth. It also underscores the importance of startups and small businesses in fostering social and economic development within the UK. Furthermore, the report delves into the essential skills, characteristics, and traits of successful entrepreneurs, such as motivation, creative thinking, and risk-taking, while also exploring how an entrepreneur's personality influences their mindset and motivation. Finally, the report analyzes how entrepreneurial experiences and background can either foster or hinder entrepreneurial operations, providing a well-rounded perspective on the subject.

Unit 9: Entrepreneurship and
Small Business
Management (ESBM)

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
LO 1.................................................................................................................................................3
P1 Various Types of Entrepreneurial Ventures...........................................................................3
P2 Differences and Similarities Between Entrepreneurial Ventures...........................................4
LO 2.................................................................................................................................................5
P3 Impact of Micro and Small Business Organisations on the UK Economy............................5
P4 Importance of Start Ups and Small Business Organisations Towards Social Economic
Growth of UK..............................................................................................................................6
LO 3.................................................................................................................................................6
P5 Skills, Characteristics and Traits of Successful Entrepreneurs..............................................6
P6 Entrepreneurial Personality Reflecting on Entrepreneurial Mind Set and Motivation..........7
LO 4.................................................................................................................................................8
Entrepreneurial Experiences and Background Fostering and Hindering Entrepreneurship........8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneurship is the strategic process through which an individual called as an
entrepreneur invents or creates a business organisation and scales its overall operations with the
intention to generate profits from the consumer markets. The modern definitions of an
entrepreneur also have come to include individuals who actively participate and encourage
initiatives that are designed specifically towards addressing and solving the major social,
environmental or technological issues and challenges that the world currently faces (Burns and
Dewhurst, 2016). In order for an individual to become an effective and competent entrepreneur
they are required to possess some key skills, talents and attributes which have been discussed in
the report, through which they can effectively conduct the roles and responsibilities of an
entrepreneur in a successful manner.
MAIN BODY
LO 1
P1 Various Types of Entrepreneurial Ventures
There exist primarily three different types of entrepreneurial ventures that a competent
entrepreneur can create such as:
 Private Entrepreneurial Ventures:
Such types of entrepreneurial ventures are created by private entrepreneur with the only
goal of creating the private entrepreneurial venture being to generate high amount of profits for
the entrepreneur and the entrepreneurial venture. Private entrepreneurial ventures have
significant risks attached that the entrepreneur undertakes in hopes of reaping greater rewards
should the private entrepreneurial venture prove to be successful within the operational
industries. Example of the private entrepreneurial ventures include Tesla, which was created and
developed by Mr. Elon Musk with the intention to generate greater profits by making use of
innovative technologies.

 Public Entrepreneurial Ventures:
These types of entrepreneurial ventures are created by public organisations and
entrepreneurs with the intention to enter into the public markets and provide the general public
with innovative services and products that can increase the social standards of living for the
given population or address a social issue or challenge (Burns, 2016). Public entrepreneurial
ventures are created towards the objectives of growing the venture and improving the health and
living standards of the given population.
 Social Entrepreneurial Ventures:
Social entrepreneurial ventures are created by private entrepreneurs using their own
financial funding towards creating a social entrepreneurial venture that is able to make effective
use of new and innovative technology and apply it towards addressing the technological, social
or environmental issues that plague a given society. Examples include the Grameen Bank, which
is a privately owned social entrepreneurial venture which loans financial resources to
underprivileged segments at no collateral.
P2 Differences and Similarities Between Entrepreneurial Ventures
There are various similarities and differences amongst the various entrepreneurial
ventures such as:
Basis Private Entrepreneurial
Venture
Public Entrepreneurial
Venture
Social Entrepreneurial
Venture
Objective The primary objective
towards which a private
venture operates relates to
generating maximum
amounts of profits from
consumer markets.
The primary objective of
public ventures relates to
enhancing the overall
standard of living of the
given population (Fathia,
2019).
The main objective of
social ventures relates to
administering greater
social value to the
population and enhance
their social wellbeing.
Revenue
Sources
The operational revenues
generated by private
ventures comes from the
prices that they charge from
their customers for the
The primary source of the
revenue generated by
public ventures comes from
charging the given
population financial taxes,
Financial revenue
required for the continued
operaiotns of the social
entrepreneurial ventures
is sourced from public

goods and services that
these ventures provide to
them.
duties and customs in
addition to penalties and
fines.
grants and various
donations.
Stakeholders The main stakeholders of
private entrepreneurial
ventures include its
investors, ownership,
employees, customers,
suppliers etc.
The primary stakeholders
of a public entrepreneurial
venture include the
investors, government and
competitors of the venture.
The stakeholders of social
entrepreneurial ventures
include its funders,
donors, customers,
suppliers and
competitors.
LO 2
P3 Impact of Micro and Small Business Organisations on the UK Economy.
The operations and functions of micro and small sized business organisations collectively
have a significantly positive impact on the overall growth and development of the UK’s
economy. As per recent estimates, there are more than 5.5 million distinct business organisations
that are operating within the UK’s private sector. Out of these 5.5 million, an astonishing 5.4
million different organisations are classified as small business organisations, meaning that they
employee 10-50 different individuals within their organisation for various purposes. 5.3 million
businesses out of these 5.4 million business organisations are categorised as micro sized business
organisations meaning that they employ less than 10 different individuals for their operations and
functions. Through the operations of these 5.4 million micro and small sized business
organisations, the UK’s economy develops and grows in a significant manner, with the
operations of such micro and small sized businesses contributing to the overall national income
of UK in a significant manner (Fohim, 2017). According to the data available the small sized
business organisations collectively contributed to almost 47% of the total turnover generate by
UK’s private sector which was estimated to be around 1.8 trillion pounds sterling, showcasing
the immense impact that small and micro sized businesses have to the economic growth and
development of UK.
The operations of micro and small sized business organisations also collectively
contribute towards the economic growth of UK in other ways such as their ability to generate

employment for the UK populations. The small and micro sized business organisations collective
generated about 60% of the total employment opportunities within the private sector of UK,
which effectively resulted in the decrease of unemployment in UK to just 4.8%.
P4 Importance of Start Ups and Small Business Organisations Towards Social Economic Growth
of UK
Start ups and small sized business organisations are immensely significant and important
towards the social economic growth of the UK and its population. Start ups and small sized
business organisations have had a tremendous impact on the social economy of UK, through
their ability to generate employment for the UL populations, through which they can earn a
decent living and wages, which has resulted in an increase in the overall standard of living for
the entire population of the UK. Due to the operations of small sized business organisations and
start ups as well, the overall unemployment rate of UK has effectively reduced to almost 4.8%,
which has also resulted in the social development and economic growth of UK as all these now
employed individuals pay taxes to the government of UK, which the UK government can
effectively invest towards developing the UK societies (Hornsby and et.al., 2018). Start ups are
also immensely important towards social economic growth of UK as increased number of start
ups within the UK apply new and innovative technological solutions towards their operations in
an effort to address the issues and challenges that the UK society at large faces, which also
effectively contributes towards enhancing the overall standards of living within the UK
population and increasing their overall wellbeing.
LO 3
P5 Skills, Characteristics and Traits of Successful Entrepreneurs
In order for an individual to become an effective and competent entrepreneur they are required to
possess some key skills, talents and attributes which have been discussed below, through which
they can effectively conduct the roles and responsibilities of an entrepreneur in a successful
manner. The characteristics, skills and traits which are required of a competent and successful
entrepreneur are as follows:

Motivation: A competent and successful entrepreneur is highly self motivated towards
accomplishing their own and their entrepreneurial ventures objectives, goals and vision. This
characteristic is immensely important for any individual to become a successful entrepreneur as
entrepreneurs are required to take on considerable risks and may face failure too as part of their
operations and self motivation to persevere and work towards their objectives and goals is an
essential trait that all successful entrepreneurs possess within the business world.
Creative and Innovative Thinking: Another essential trait or skill that all successful and
competent entrepreneurs possess relates to innovative and creative thinking (Kunaka and Moos,
2019). Successful entrepreneurs are required to think creatively and innovatively in order to
identify the opportunities that are present to them within the external environments and make use
of these opportunities towards the accomplishing their or their entrepreneurial venture’s
objectives in an effective and efficient manner.
Risk Takers: Successful entrepreneurs are also required to take on risks present in the external
environments head on, instead of being cautious and waiting for the most opportune moment, as
risk taking is an essential trait that is required for an entrepreneur to be successful. If the
entrepreneur does not take risks and is always cautious, then they also cannot reap greater
rewards that taking risks has the potential to provide them and also cannot take their entrepreneur
to industry heights.
P6 Entrepreneurial Personality Reflecting on Entrepreneurial Mind Set and Motivation
The personality of an entrepreneur also reflects on their entrepreneurial motivation and
mind set in a significant manner. In order for an entrepreneur to take correct decisions and
become successful, they are required to possess critical balance between their mind set,
motivation and personal and professional lifestyle. As the decision making operations of the
entrepreneur can have immense impact on their and their entrepreneurial venture’s ability to
achieve its objectives and goals, the entrepreneur is required to possess a calm, creative, strong
and calculating personality which can help them conduct the various entrepreneurial operations
in a successful manner, while also possessing self motivation and a positive mind set. This calm,
creative, calculating and strong personality is immensely important for a successful entrepreneur
because an entrepreneur is required to take on significant risks as part of their operations which
cannot be conducted successfully if the entrepreneur possesses a weak personality, negative

mind set and no motivation to conduct their operations (Kuratko, 2016). Having a strong
personality, internal motivation and a positive mind set is also immensely important for a
successful entrepreneur because this also gets transmitted to their co-workers, with the co-
workers working within the entrepreneurial venture being highly motivated, possessing positive
mind set and having strong personality if the leading entrepreneur also shares these particular
attributes. Only if an entrepreneur has a strong personality can they successfully conduct their
entrepreneurial operations with increased motivation and positive mind set.
LO 4
Entrepreneurial Experiences and Background Fostering and Hindering Entrepreneurship
In Presentation
CONCLUSION
Based on the findings of the report, it can effectively be concluded that a competent and
successful entrepreneur is required to possess some key skills and attributes discussed in the
report. The report analyses different types of entrepreneurial ventures and determines the
similarities and differences between them. The report also analyses the impact that micro and
small sized business organisations have on the UK economy and the importance of SMEs
towards the growth of the social economy of UK. Further the report analyses the various skills
and traits that a successful entrepreneur requires and evaluates how personality of the
entrepreneur reflects on their mind set and motivation. Finally, through the presentation, ways in
which experience and background of an entrepreneur hinders or fosters entrepreneurship
operations is analysed.

REFERENCES
Books and Journals
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Fathia, N., 2019, August. PEMBELAJARAN ENTREPRENEURSHIP ANAK USIA DINI DI
TK KHALIFAH 2 SERANG. In Prosiding Seminar Nasional PG PAUD Untirta
2019 (pp. 283-292).
Fohim, E., 2017. From a'Cultural Dope'to a'Heroic Entrepreneur'-Tracing the Origin of
Institutional Entrepreneurs' Skills by Means of Reflection-in-Action.
Hornsby, J.S and et.al., 2018. Entrepreneurship everywhere: Across campus, across
communities, and across borders. Journal of Small Business Management. 56(1). pp.4-10.
Kunaka, C. and Moos, M.N., 2019. Evaluating mentoring outcomes from the perspective of
entrepreneurs and small business owners. The Southern African Journal of
Entrepreneurship and Small Business Management. 11(1). pp.1-11.
Kuratko, D.F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.