Entrepreneurial Ventures and the UK Economy: A Comprehensive Analysis

Desklib provides past papers and solved assignments for students. This report analyzes entrepreneurship and its impact on the UK economy.

ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT

Table of Contents
INTRODUCTION........................................................................................................................3
LO1........................................................................................................................................... 4
P1 VARIOUS ENTREPRENEUR VENTURES AND THEIR RELATION TO THE TOPOLOGY OF
ENTREPRENEURSHIP............................................................................................................ 4
P2 SIMILARITIES AND DIFFERENCES BETWEEN ENTREPRENEURIAL VENTURES...................5
M1 MULTIPLE RANGE OF ENTREPRENEURIAL VENTURES IN BOTH PUBLIC AND
CORPORATE SECTOR............................................................................................................6
D1 SCOPE, GROWTH, AND DEVELOPMENT OF ENTREPRENEURIAL VENTURES...................7
LO2........................................................................................................................................... 8
P3 ASSESSING RELEVANT DATA AND STATISTICS TO ILLUSTRATE IMPACT OF SMALL
BUSINESSES ON THE ECONOMY...........................................................................................8
M2 DIFFERENCES BETWEEN SMALL, MEDIUM AND LARGE BUSINESSES TO THE ECONOMY
ACCORDING TO RELEVANT DATA AND STATISTICS..............................................................8
D2 CRITICALLY EXAMINING IMPACT OF SMALL BUSINESSES IN LOCAL, REGIONAL AND
NATIONAL LEVEL.................................................................................................................. 9
P4 IMPORTANCE OF SMALL BUSINESSES AND BUSINESS START-UPS TO THE GROWTH OF
SOCIAL ECONOMY..............................................................................................................10
LO3......................................................................................................................................... 11
P5 THE CHARACTERISTICS TRAITS AND SKILLS OF SUCCESSFUL ENTREPRENEURS THAT
DIFFERENTIATE THEM FROM OTHER BUSINESS MANAGERS.............................................11
P6 ASSESSING HOW ASPECTS OF THE ENTREPRENEURIAL PERSONALITY REFLECT
ENTREPRENEURIAL MOTIVATION AND MINDSET...............................................................12
M3 EXPLORING AND EXAMINING DIFFERENT LINES OF ARGUMENT RELATING TO
ENTREPRENEURIAL CHARACTERISTICS...............................................................................12
D3 ANALYSING THE CHARACTERISTICS TRAITS, SKILLS AND MOTIVATIONAL DRIVERS OF
SUCCESSFUL ENTREPRENEURS, SUPPORTED BY SPECIFIC EXAMPLES................................13
LO4......................................................................................................................................... 15
1

P7 EXAMINING HOW BACKGROUND AND EXPERIENCE CAN HINDER OR FOSTER
ENTREPRENEURSHIP.......................................................................................................... 15
M4 ANALYSING THE LINK BETWEEN ENTREPRENEURIAL CHARACTERISTICS AND THE
INFLUENCE OF PERSONAL BACKGROUND AND EXPERIENCE TO SPECIFIC SUCCESSFUL
ENTREPRENEURS................................................................................................................15
D4 CRITICALLY EVALUATING HOW BACKGROUND AND EXPERIENCE INFLUENCE
ENTREPRENEURS, BOTH POSITIVELY AND NEGATIVELY, BY COMPARING AND
CONTRASTING EXAMPLES..................................................................................................16
CONCLUSION.......................................................................................................................... 18
REFERENCES........................................................................................................................... 19
2

INTRODUCTION
The report discussed the concept of entrepreneurship along with the various types of
entrepreneurial ventures that can be considered by an entrepreneur. The different activities
involved in the entrepreneurship of an enterprise are discussed in the report. The
differences and similarities in a number of entrepreneurial ventures are discussed in the
report. Further, the entrepreneurial ventures of both public and corporate sectors are
analyzed in detail. The impact of small enterprise on the economy of the UK is identified in
the relevance with data and statistics. The importance of small and micro businesses on the
social economy of the United Kingdom is determined. Further, the characteristics of traits
and motivational drivers of an entrepreneur are analyzed in the report. The different lines of
arguments related to the characteristics of an entrepreneur are examined. The report
evaluated the background and experience of an entrepreneur which can foster or hinder
entrepreneurship which includes the culture, education, personal background, character
traits, and other circumstances of the entrepreneurs.
3

LO1
P1 VARIOUS ENTREPRENEUR VENTURES AND THEIR
RELATION TO THE TOPOLOGY OF ENTREPRENEURSHIP
Entrepreneurship is a process of purchase of a company, starting a business and having
committed to all the challenges and failures of the business (Fernandes, 2018). An
entrepreneur is an individual who starts a business or a company with an objective to earn
profits (Ferreira, 2018). There are different entrepreneurial ventures which can be out by
the entrepreneurs which are discussed below:
Lifestyle venture
Lifestyle venture is a business venture in which the main aim of an entrepreneur is to
improve his current lifestyle and standard of living. The activities and business of these types
of entrepreneurship are based on the motive of creating a sustainable and pleasant work
and life balance. It is a business which is selected by the entrepreneur to fulfill his personal
motives which can give him a luxurious lifestyle which is normally considered as an
alternative to retirement (Rouse, 2013).
Small business venture
Small business ventures are the businesses such as sole proprietorship, partnership or
privately owned corporations which are started with a motive of earning basic or normal
profits and have the small number of employees working in it (Business Dictionary, 2019).
High growth venture
A high growth business venture works on a motive to achieve more and more in its business
and to earn rapid profits. Various business strategies are made these firms for increasing the
market position by different promotional strategies and by organizing working capital from
its investors (Business Dictionary, 2019).
4

TOPOLOGY OF ENTREPRENEURSHIP
Independent entrepreneurship
Independent entrepreneurship is the business where the entrepreneur started his own fir
without any support and bears all the risks and rewards of the business. The results and
consequences of decisions made by the entrepreneur are faced by him independently.
Corporate Entrepreneurship
Corporate entrepreneurship is a process which is used to develop new products, services
and processes of the business with a motive to generate new revenue and provide greater
value to the customers of the company (Kennedy, 2018).
Public entrepreneurship
Public entrepreneurship is the whole set of activities and processes undertaken by the local,
regional and national governmental authorities for promoting various activities to serve the
public in general by generating innovative ideas (Dhliwayo, 2017).
P2 SIMILARITIES AND DIFFERENCES BETWEEN
ENTREPRENEURIAL VENTURES
Lifestyle venture Small business
venture
High growth
venture
Similarities A lifestyle venture
aims at earning
maximum profits for
the business by
generating new
business ideas.
Growth and
development are
two main aspects of
the business in the
lifestyle venture.
Small business
ventures aimed at
earning basic profits
for the business so
that it can ensure its
survival.
Achieving success is
another motive for
the small business
venture which can
be ensured by
continuous growth
Achieving growth
and development is
the main motive of a
high growth venture
which is achieved by
different business
strategies.
The business of a
high growth venture
is carried on a large
scale which helps in
earning its success
5

and development of
its business venture.
and growth.
Differences The lifestyle venture
is started with an
aim to provide a
high standard
lifestyle to its
entrepreneur.
It is generally
started after the
retirement by the
entrepreneur.
Lifestyle firm hopes
to earn a large sum
of profits in a short
period of time.
The small business
enterprise aimed at
earning suitable
profits for its
survival.
The small business
allocates a small
amount of capital
and hope for
earning basic profits
in a normal period
of time.
The high growth
firm has a motive to
achieve continuous
growth and
development in its
business.
A huge amount of
capital is employed
in a high growth
business firm.
M1 MULTIPLE RANGE OF ENTREPRENEURIAL VENTURES
IN BOTH PUBLIC AND CORPORATE SECTOR
Entrepreneurship in Public sector
Public sector entrepreneurship is started by the local, regional or national government
which aims at providing facilities and support to the general public of the nation (Dhilwayo,
2017). It is a combination of public and private enterprises who have a social objective to be
accomplished. Public roads, electricity department, water supply, telecommunications, etc.
are some of the work undertaken by the public sector entrepreneurs. Innovation, social
environment, economic environment, and uncertainty are the main components of public
sector entrepreneurship. The main examples of public sector entrepreneurship include
Lifestyle and social ventures.
6

Entrepreneurship in the Corporate Sector
Corporate entrepreneurship is a medium through which new and innovative ideas are
generated by the enterprises which help in introducing new products, services, and
processes in the market. It aimed at earning profit and revenues by creating value to the
customers with the help of entrepreneurial thought and action. Profit is the main goal of
such entrepreneurship which works in a highly competitive marketplace. The examples of
the corporate sector who work with a profit motive are small businesses and high growth
venture.
D1 SCOPE, GROWTH, AND DEVELOPMENT OF
ENTREPRENEURIAL VENTURES
The entrepreneurship of an economy plays an important role in the growth and
development of the country. The public sector, the private sector, service sector,
agricultural and allied industrial sector are some of the areas of entrepreneurship ventures.
Entrepreneurs play a vital role in the growth and development of an entrepreneurship
venture.
Research and development are carried out in entrepreneurship which involves the task of
sensing opportunities and innovating products and services. The scope of entrepreneurship
is tremendous in a country like the United Kingdom which promote a large number of
businesses irrespective of their size and nature. Due to decreasing recession in the United
Kingdom, the scope and development of entrepreneurial ventures are increasing.
Innovation has evolved entrepreneurial ventures over the years which help them in earning
more profits and thus lead to their growth and development. Due to continuous growth and
development, UK entrepreneurial economy was positioned at the fourth number in the
world with the support of UK government who has introduced many loan scheme for new
start-ups of the country (Myers, 2014).
Thus it can be said that the government of the UK is continually taking steps for improving
the conditions of various entrepreneurial ventures of the UK. Also, the government needs to
focus on to further improve the UK's already strong performance by promoting its growth
and development.
7

8

LO2
P3 ASSESSING RELEVANT DATA AND STATISTICS TO
ILLUSTRATE IMPACT OF SMALL BUSINESSES ON THE
ECONOMY
Small and micro businesses of UK are considered as the backbone of the economy of the
United Kingdom which help in promoting growth and development of the economy. Small
and medium-sized enterprises (SMEs) play an important role in boosting the productivity of
the economy of the UK. Small and medium-sized enterprises contribute 47 percent of
revenue in the economy of the United Kingdom. The SMEs covers a large part of the UK
economy which affects directly or indirectly the growth of the economy. The small
businesses in the UK cover around 60 percent of all the private sector of the UK which
provides employment to around 1.3 million local people of the country. In every main
sector, the small and micro businesses of UK account for 99.5 percent of businesses. The
contributions of SMEs are vital in the economic health of the nation which shares a mutually
beneficial relationship with the economy of the UK.
UK government understand the importance of small and micro businesses in the economy
and hence it is investing £725m in research and development for their industrial strategy.
According to the relevant data and statistics, in the year 2014, there were around 5.2 million
businesses in the UK whose 99 percent is covered by small and micro enterprises (Hardon,
2015). But according to a survey, it has been found out that around 55 percent of a small
and medium enterprise does not survive for more than five years. So in order to ensure
growth and success of SMEs various steps are taken by the government of the UK. Over past
years, around 60 percent of small and medium businesses of the UK sought some form of
external funding which includes business startup loans or government-backed business
loans.
9

M2 DIFFERENCES BETWEEN SMALL, MEDIUM AND LARGE
BUSINESSES TO THE ECONOMY ACCORDING TO
RELEVANT DATA AND STATISTICS
Small and medium enterprises of the UK are the businesses which employ less than 250
employees in its business. In the year 2014, there were 5.2 million SMEs in the UK which
cover over 99 percent of the total businesses of UK (Ward and Rhodes, 2014).
Micro-Businesses are the business which employs not more than ten employees in its
enterprises. In the year 2019, they cover 76 percent of the total businesses of the UK which
are the main growth areas of the UK economy (Peter, 2019). The turnover contributed by
these businesses are estimated at 21 percent in the economy. Also, around 33 percent of
employment is generated by such an enterprise in the UK.
Small Businesses are the businesses which do not employ more than 50 employees in the
economy of the UK (Ward and Rhodes, 2014). The annual turnover of small-sized businesses
are estimated at above €2million but below €10million.
Large Businesses are the businesses who employ more than 50 employees but less than 250
employees in their enterprise. The annual turnover of a large business is more than
€10million but below €50million. They contribute 40 percent to the employment generation
in the economy of the UK. With its turnover, the large businesses contributed around 48
percent in the economy of the United Kingdom.
D2 CRITICALLY EXAMINING IMPACT OF SMALL
BUSINESSES IN LOCAL, REGIONAL AND NATIONAL LEVEL
The small and medium enterprise of UK has a positive and negative impact on the economy
of the UK at local. Regional and national level. A large number of small business are funded
through local and national government. More than £1.4 billion are invested in over 15000
UK businesses by a large range of investors which include around 50,000 people, local and
national government, and financial institutions such as pension funds. These small
businesses established near the local community which help in providing support for
economic prosperity. Successful businesses pay regular taxes to the government of the UK
and these taxes support local people and government, schools, government departments
such as police and fire departments (Brown, 2018).
10

Small business help in shaping local and regional cities and areas of the United Kingdom
which employs a large number of population. A positive relationship between regional and
local areas of the UK with small business help in employment growth which employs around
239000 employees in the year 2018. Small and medium businesses generate around 63
percent job opportunities at the local, regional as well as national level each year.
Small businesses in the UK are around 99 percent of the total 5.2 million businesses in the
UK which plays an active role in bringing the economy out of recession by providing jobs,
growth, and prosperity (Longworth, 2014).
P4 IMPORTANCE OF SMALL BUSINESSES AND BUSINESS
START-UPS TO THE GROWTH OF SOCIAL ECONOMY
Co-operatives, credit unions, non-profit organizations and other types of charity and
foundations, services associations and community enterprises are included in the social
economy. The social economy is defined as a combination of collectively owned enterprises
which include public and private sector economies. They are the enterprise which sells
products and services to the customers and works for a social mission. Following are the
importance of small and medium enterprise on the social economy of the United Kingdom:
 SMEs help in promoting healthy competition in the market among the entrepreneurs
which help in increasing overall growth and development of the economy of the
United Kingdom.
 Small businesses of UK act as a driving force for millions of people in the economy of
the UK by generating employment opportunities and billions of pounds in turnover.
 Research and development made by SMEs help in bringing significant changes in the
society by addressing many community issues facing by the country presently and in
future (Peak b, 2018).
 Small businesses integrate people of different cultures increasing support for mental
health, supporting the disabled, re-integrating people that have fallen out of the
community which helps in bringing social change and improvement.
11