Entrepreneurship: Ventures, Economic Impact, Traits, and Motivation

This report provides a comprehensive analysis of entrepreneurship, examining different types of entrepreneurial ventures and their relationship to the typology of entrepreneurship. It explores the similarities and differences between various ventures, demonstrating an understanding of entrepreneurship in both the public and private sectors. The report also examines relevant data and statistics to illustrate the impact of micro and small businesses on the UK economy, explaining the importance of small businesses and start-ups to the growth of the social economy. Furthermore, it evaluates the differences that small, medium, and large businesses make to the economy, applying relevant data and statistics. The report includes a mini-research to determine the characteristics, traits, and skills of successful entrepreneurs, assessing how these aspects reflect entrepreneurial motivation and mindset. Finally, it examines how background and experience can hinder or foster entrepreneurship, analyzing the link between entrepreneurial characteristics and the influence of personal background and experience.

Understanding entrepreneurship

TABLE OF CONTENTS
Introduction....................................................................................................................................1
Part 1...............................................................................................................................................2
P1 Examining different types of entrepreneurial ventures and explaining how they
relate to the typology (different types) of entrepreneurship...............................................2
P2 Explore the similarities and differences between different types of ventures...........5
M1 Demonstrate an understanding of entrepreneurship in both public and private
sector..........................................................................................................................................7
P3 Examination of relevant data and statistics to illustrate how micro and small
business impact UK economy.................................................................................................9
P4 Explain the importance of small businesses and business start-ups to the growth
of the social economy.............................................................................................................11
M2 Evaluate the differences that small, medium and large businesses make to the
economy, applying relevant data and statistics..................................................................12
Part 2.............................................................................................................................................14
P5 Carry out a mini-research to determine the characteristics, traits and skills of two
successful entrepreneurs, which differentiate them from other business managers...14
P6 Assess how aspects of the entrepreneurial personality as discussed in P5, reflect
entrepreneurial motivation and mindset..............................................................................16
M3 Explore and examine different arguments relating to entrepreneurial
characteristics..........................................................................................................................17
P7 With practical examples obtained through your mini-research, examine how
background and experience can hinder or foster entrepreneurship...............................18
M4 Analyze the link between entrepreneurial characteristics and the influence of
personal background and experience to specific successful entrepreneurs.................20
Conclusion....................................................................................................................................21
References...................................................................................................................................22

LIST OF FIGURES
Figure 1: Types of ventures...............................................................................................4
Figure 2: Economic growth................................................................................................6
Figure 3: Employment status.............................................................................................8

LIST OF TABLES
Table 1: Differences between different types of entrepreneurial ventures........................3

Introduction
Entrepreneurship is the quality of the person to own and manage the business and
activities with the aim of profits and welfare. There are many types of the business
which are operating in the economy but the size, function and the objective are different.
Entrepreneurship is the function to develop the business by adopting innovation
technique and contributing the same to the economic development. The current report
is based on the features and the qualities of the entrepreneurship and the different
types of the ventures in the economy. The report will evaluate the impact of the
business on the economy and the contribution of the business practices in the economic
development. The economy facilitates the platform for operations of different business
some of them are owned by the government and some are privately owned. However,
the role of the entrepreneurs is same in every business i.e. to develop and enhance the
business activities.
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Part 1
P1 Examining different types of entrepreneurial ventures and explaining how they relate
to the typology (different types) of entrepreneurship.
The successful business is dependent on the designing and launching of the new
business practices and this is known as entrepreneurship. Activities those enterprise
human actions in the motive of generation of value and other expansion of economic
activity are known as an entrepreneurial activity. The main aim is to identify and
exploit new products and process that will help in the expansion of the business.
Enterprise is generally a venture or the organisation that is managed and controlled by
individual or group to achieve different objectives. Different ventures related to the
suitable typology of entrepreneurship are explained below:
Basis of
difference
Lifestyle Venture Small profit
venture
High growth
venture
Significance Actual
independence is
offered to the
individuals by
giving proper
autonomy of
ownership
It is generally
formed for making
profits and is based
on proper utilisation
of resources.
The main purpose
of business to
make profits and
expand the
business into
international
markets. The
growth of the
venture is basically
based on efforts of
the organisation to
meet the needs of
the stakeholders.
Growth Effective to meet
the needs of the
stakeholders and
To have possible
opportunity to earn
small profits but to
The growth of these
ventures depends
on increasing
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also to provides
flexibility in terms of
hours, meetings,
places, etc
attain effective
market share.
extensive sales and
profits also to gain
suitable positioning
into markets.
Scope It generally falls into
the category of
micro or small
business and
mainly individual
aligns personal
interest and
hobbies that have
the desire to make
profits (Morris,
2015).
It is one small
sector business
that contributes to
the development of
the economy and
also helps in
serving standards
of the living to the
society.
Intrapreneur
generally works in
the workplace for
adding innovation
and creativity in the
business that will
add to higher and
higher growth of the
business.
Earnings Owners of the
entity are
responsible to
handle the entire
operations and
income level is
checked on the
daily basis of
weekly or monthly
income is
considered
It is responsible to
increase the sales
and revenues with
effective activities
of marketing and
income is observed
on the monthly or
quarterly basis.
Records and
accounts are
prepared for
measuring the
current
performances with
the past
performances
(Malmström et.al.
2015).
Example Small cafes,
bakery, car rental,
etc.
Leon restaurants Facebook, twitter,
etc.
Public Sector Entrepreneurship
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In public sector enterprises, the rules and the regulations are implemented by the
government of the state and the majority of the shareholding are owned and controlled
by the government authorities (Hsu et al, 2017). The activities of the public sector
consider the interest of the public at large.
Private Entrepreneurship
The business can be owned and managed by the group of persons in a partnership or
by the individual person. The decisions and the policies are owner’s responsibility and
there is no interference of the government agencies. The profits of the business are
owned by the proprietor and there are no circumstances of sharing the profit.
Corporate Entrepreneurship
The corporate business is operated as a large scale business and they open up the
employment opportunity for the new candidates to invite the fresh talent in the
organization. The profit of the business is maximised with the support of the talented
employees.
Social Entrepreneurship
The social entrepreneurship focuses on the growth and welfare of the people rather
than on the profits and revenue. Generally, the social business is owned and managed
by the trust and revenue is from donations and charity (Kontolaimou et al, 2016).
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P2 Explore the similarities and differences between different types of ventures
There are many differences in the working pattern of micro, small and medium-sized
business.
Serial entrepreneur
This entrepreneur takes the challenge in a different manner as if particular business
established, the individual is responsible to delegate the responsibility to a responsible
person and runs different operations. On another hand, individual move forwards
towards handling other operations for achieving new profits. The serial entrepreneur will
have the idea of formation of the business and have the capability to move towards
other venture. In other words, individual starts with unique ideas contribute to achieving
more in future.
Intrapreneur
It is one of the inside entrepreneurs within the large firm that uses entrepreneurial skills
without incurring any of the risks that is associated with the activities. It is also one of
the managers of the business that is responsible to bring regular innovation and
creativity of the business (Kuratko, 2016). It applies the start-up style of management
with applying innovation, flexibility, innovation and risk-taking that lead them towards a
successful business.
Owner managers
It is the person who is responsible to manage the business and have the ownership to
take decisions regarding operations of the business. Individual being owner-manager
has the separate identity of having the owned business.
Table 1: Differences between different types of entrepreneurial ventures
Basis Small business Medium sized
business
Large business
Meaning The venture focused
on the small activities
They try to increase
the profits through
Their main aim is to
maximize the profit by
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for earning less profit innovation and
technology
investing activities for
growth
Earnings Earning is basically by
wholesale and retail
business
The earning is mainly
from selling the
products and return on
investments
The earning is
maximized by investing
in shares and
commodities in large
scale with other trading
activities
Expansion Expansion of the
business is not
primarily considered
by the ventures
Expansion activity is
considered but profit
earning is the main
activity
Expansion of the
business is the main
motive of the business
and the owners
For
example
A small retail business
engaged in the selling
and distribution of the
goods.
Business who trade in
goods and invest in
shares
Ventures who trade in
the commodities and
shares or consultancy
services
However, there are many similarities in different types of the business. Every business
whether it is small, medium or large business concentrates on the growth and
development. Every venture analysis the scope and opportunities for developing the
business and they are responsible for creating the employment in the market scenario
(Maritzand Donovan,2015). The entrepreneur recognizes the economic values of the
assets and the resources available in the environment of the market.
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Figure 1: Types of ventures
(Source: Growth of different types of ventures in the economy, 2018)
M1 Demonstrate an understanding of entrepreneurship in both public and private sector
In the economy, the entrepreneurship is divided into two categories i.e. public and
private sector. In public and private sector there are different types of the business
which are classified according to their size and nature of small business, medium
business and large-scale business.
Public sector
The entrepreneurs in the public sector work according to the rules and the guideline of
the government of the state and the country (Kuratko et al, 2015). The ownership of the
business is basically in the hands of government authorities and the focus is on
improving the status and education of the people. The government of UK has appointed
various authorities who are responsible for the supervision of the activities of the
business and the entrepreneurs are required to submit the growth report. Public sector
and the businesses support the economy with public services and the trading of the
goods and services for the public services. Many of the public sector services are
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providing health services and education facilities for the development of the standard of
living of the people.
For example, The Child Support Agency in the UK is a public sector enterprise which
works for providing support to the children’s education and welfare.
Private sector
The private sector in the economy always focuses on the profit maximization. The
private sector is better known for the development and contribution to the economy in
terms of growth and GDP. The business is owned and controlled by the corporations
that are multi-talented and has capabilities to appoint and guide the employees. One of
the benefits to the private sector is that the activities are not controlled by the
government and therefore, this gives the way to the entrepreneurs to maximize the
profits (Kumar and Kumar, 2017).
For example, Iceland Ltd is one of the largest retail businesses operating in UK’s private
sector. The organization is maximizing profits by best services and customer
satisfaction.
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