Entrepreneurship: Venture Types, Impact, Skills, and Factors Report

This report delves into the multifaceted world of entrepreneurship, providing a comprehensive analysis of various venture types, including small business entrepreneurship, large-scale entrepreneurship, scalable start-up entrepreneurship, and social entrepreneurship. It examines the similarities and differences between these ventures, focusing on profit-making, employment generation, and regional development. The report also assesses the impact of micro and small businesses on the economy, highlighting their local impact and contribution to economic growth. Furthermore, it explores the characteristics, traits, and skills essential for successful entrepreneurs, and the factors that either foster or hinder entrepreneurial endeavors within the UK context. The report covers aspects of entrepreneurial personality and its importance. The analysis covers the critical role of small businesses and start-ups in the social economy.

Entrepreneurship

Table of Contents
INTRODUCTION................................................................................................................................3
TASK 1.................................................................................................................................................3
P1 Types of entrepreneurial ventures and their relationship ...........................................................3
P2 Similarities and Difference between entrepreneurial ventures...................................................5
TASK 2.................................................................................................................................................6
P3 Micro and small businesses impact on the economy..................................................................6
TASK 3.................................................................................................................................................8
P4 Contribution of Small business and Business start-ups on social economy...............................8
P5 Characteristics, traits and skills of successful entrepreneurs......................................................9
P6 Aspects of Entrepreneurial Personality.....................................................................................10
TASK 4...............................................................................................................................................11
P7 Factors that foster or hinder entrepreneurship..........................................................................11
CONCLUSION...................................................................................................................................11
REFERENCES...................................................................................................................................11

INTRODUCTION
Entrepreneurship can be defined as a process of creating something new of value by
accepting all the risks associated with the process. It is also considered as a dynamic process in
which the individuals is taking huge risks for creating wealth in the business by increasing the4
investment, time and equity. The individuals who conduct this process is called Entrepreneurs. They
conduct the whole process of introducing a new product in the market or reintroducing the old
product in a new way (Blackburn, Hart and Wainwright, 2013). Another important topic that will be
discussed in this report is small-business management. It cab be defined as a management of small
business activities in an effective manner so that the companies can gain more and more profits .
Entrepreneurship is always considered beneficial for economic growth and development since it
brings so many changes in the company . Therefore, UK government is also trying to bring more
and more entrepreneurial ventures in their economy. This report will discuss about the range of
venture types, impact of small businesses in economy, key aspects of entrepreneurial mindset and
also the different environment that foster or hinder the entrepreneurship in UK.
TASK 1
P1 Types of entrepreneurial ventures and their relationship
Entrepreneurship is considered as one of the important activity that is conducted in the
companies in which the person who is given the responsibility to manage this process develops the
whole business through his creative ideas and runs the whole business successfully through his own
skills . These entrepreneurial ventures are having huge risks attached with it as it becomes really
difficult for a person who is having just an idea to go and start a new business again. The
entrepreneur is asked to adopt various techniques for conducting the activities in an effective
manner. The entrepreneur is also told to make several plans and policies which will help them in
maintaining the work environment efficiently (Bridge and O'Neill, 2012). The main aim of the
entrepreneur is to establish themselves in the market by conveyancing their idea to more and more
people and also making more profits as well. It is not easy to become an entrepreneur as there are
several traits that are required to be present in the person to become an entrepreneur. The
entrepreneur should behave like :-
 Opportunity seizer
 Opportunity screener
 Opportunity seeking
There are various types if entrepreneurial ventures that are present in the economy. It helps in
developing the services that are being run in an opening level. It depends on the person that which
type of entrepreneurship he wants to do in the society as every business idea does not suit every

venture type. The various types of entrepreneurial ventures are described as :-
 Small business entrepreneurship:- When a business is there at their opening level only and
are not having much staff and funds then it comes under small businesses. They are also
called as start ups (Carsrud and Brännback, 2011). According to the recent data, it is known
that there are approx 6 million small businesses that are currently running in UK. If there
will be more businesses running in the country then it will be good for the economy as it
will help in their development and growth. It creates more and more employment which
helps the people in living a good life . The various types of small-business are grocery
stores, electricians, consultants, travel agents etc. these people are responsible for generating
profits in their own way and arranging funds also from their means as well.
 Large scale entrepreneurship – These are the type of businesses tat is running in the society
from a very long period of time and they ate already established in the market and thus they
are considered as very important for the economy as they are helping the country by
generating large amount of employment and income which is beneficial for the countries
only this that is required to be noticed by the large scale entrepreneurs is the changes that are
happening in the economy and also in the taste and choices of the customers as their profits
are dependent on these customers only.
 Scalable start up entrepreneurship – These are the type of businesses in which the person
who is running the business is having a strong idea behind opening this new venture,. They
know very well that there ideas may bring strong changes in the market as well as economy.
They are having an aim to bring changes in the economy and for this they arrange funds
from those people who believe in this idea of the entrepreneur. These investors are also
called as venture capitalists.
 Social Entrepreneurship – The people who are given the responsibility to run these type of
business are doing their activities by keeping the benefits of the society in mind. They try
that none of their activity should cause any harm to the society and rather they should
always try to give something to the society. They try to make this society a better place to
live in and not earning much profits (Chittithaworn and et. al., 2011).
Various types of entrepreneurial typologies are:-
 Lifestyle Ventures – These are the types of ventures in which the entrepreneur thinks to
work alone and he does not want anyone to interfere in their work as well. These people try
to take out some time for being in the competition always otherwise they are not interested
as such.
 Survival Ventures – These types of businesses is generally started for earning the livelihood
for the family . Through this business only the individual is running their family. These

types of businesses is normally not registered and the entrepreneurs are also using Barter
and Cash system of accounting other than bank contracts (Chrisman and et. al., 2012).
 Managed Growth Ventures – These types of ventures are generally having an assurity that
they will eventually grow in the market by applying a certain strategy. The people who
invest in this type of business knows that there business will not go waste and they will
definitely make some money.
 Aggressive Growth - These type of business is run with new technologies and innovations in
method of operations. They are also not funded by the equity capital.
P2 Similarities and Difference between entrepreneurial ventures
There are various similarities and differences that are present in between the entrepreneurial
ventures . They are as follows:-
 Profit making – Every business that is being operated in the market is having a primary
motive of earning more and more profits but there are few companies that does not aim to
make profits primarily instead they are having a planning to do something for the society or
for other people . These type of businesses cone under social entrepreneurship. The
individuals who are having this kind of aim chooses social entrepreneurship as their venture.
These type of companies is very much required for the benefit of the society as they give
more emphasis to the development of society rather than developing the company. The
profits that are derived from these kinds of ventures are used in the growth of society and
not in growth of company. The similarities are there in small-business entrepreneurs, large
businesses entrepreneurs and scalable start- ups as they all aim to make profits primarily.
 Generation of Employment – It is not compulsory that all the businesses that is running in
the society will help in generating employment in the society. There are around 6 million
start ups that are present in the UK economy but all of them are not giving jobs to people .
Some of the entrepreneurs like to work alone but some require huge staff so it depends upon
the people who is conducting the whole business to decide that whether they ned anyone in
the business or not. Small-business entrepreneurs are helping the economy in generating
employment and thus developing the economy as well but on the other hand scalable
business people are not giving jobs to people as they like to work alone without taking
anybody's help (Dennis Jr, 2011). The similar type of entrepreneurial ventures in this factor
is Large scale entrepreneurship and small scale entrepreneurship as they are working for the
benefit of the company as well as the society .
 Regional development – There are so many start-ups that are being opening in the country
but not every business contributes in the development. In the current business environment,

it is noticed that every youngster is having a idea in their mind which they want to
implement and being change in the economy. If any business is even thinking about giving
benefits to the society but then also regional development is not easy. For developing the
regional area of the society , it is very important for them to set up their business in some
backward area and will conduct the whole business process from there itself (Drucker,
2014). This will not be considered as an innovative step for those companies who have just
been opened in the market. If any small business is opened in some backward area then it
will not be able to grow as their growth depends upon the customer and customer will not be
attracted ton business running in such areas.
 Identification of loss – It is always not considered as possible for the companies to
calculate the exact loss that has occurred to them . Only those types of ventures who are
following proper accounting procedures in their business can tell the exact amount of loss
that has occurred to them . So, it is always advised to people that they should record each
and every transaction of the business regularly so that if in case they need any information in
future then they can refer it. So, in case of entrepreneurial ventures , scalable and large scale
entrepreneurship is same but small and social entrepreneurs are different from other
entrepreneurial ventures.
TASK 2
P3 Micro and small businesses impact on the economy
Micro business can be defined as those type of business who are employing 9 or less than 9
employees in their company. These types of ventures are generally starting with less amount of
capital and they generally supply the goods and services in the local areas only. These type of
business is very helping in developing the economy and helps in improving the quality of life of
people who are living in that economy. Micro enterprises gets help from the micro finance who give
them small amount of capital as loans to set up the company.
Small business can be defined as those kinds of business who are employing less staff and is
started with few amount of capital only. There are various types of small businesses like privately
owned corporations or sole proprietorship. These businesses vary in their size and structure. It
depends on the functions of the business on the basis of which the type of small business is selected.
The small business entrepreneurs are also required to get license to run their business in the society
(Fassin, Van Rossem and Buelens, 2011).
The impact that Micro and Small sized businesses are having in the economy are:-
 Local Impact – Both of these businesses are having a strong impact in the local areas
because all their activities are having an affect in the opera' that are conducted in the local

areas. These business are like start-ups and thus if they want to grow they need to be near
the target customers. It is necessary because it will help them in knowing the customers
more well and the customers will also be happy to receive such personalise attention
(George and Bock, 2011e). The impact is also in the form of providing employment
because people living in the local areas are not much educated and thus they face problem in
getting job but these type of business is providing employment to more and more people and
is helping the society in an effective manner.
 Regional impact – These type of business is having both positive and negative impact in
the society. They are generally conducting all its operation from local or regional level only
therefore they are having the advantage of getting to know the customer closely and thus
making the products as per the trend that is going on in the market. It is considered as a
positive impact but the negative impact is related to the fixation of process that is done as
per the wish of the company as they get a competitive advantage in the market and is having
a liberty to fix the prices as per the people present around.
 National Impact – These are generally the small ventures and thus their impact in the
national economy is little less as they are not being promoted in the national level. These
companies are not having enough funds because of which they are nit promoted at such high
level. And thus they are also not targetting the people who are living all around the nation.
They are targetting people only of a particular areas. In spite of this the presence if sole
proprietorship companies are creating a much impact on the national level because they help
in creating more jobs for the people living in that country.
(Source: Micro and Small Business, 2017)
So, from the above mentioned graph it can be concluded that UK's economy is growing at a fast rate
and the micro and small business is also supporting them in this (Gorgievski, Ascalon and Stephan,
2011). There are certain limits that are set by the government of UK for doing investment in

companies like :-
Manufacturing Sector
Micro enterprises
Investment can be done till 25 Lacs
Small Enterprise
Investing in business are made between 25 Lacs
to 5 Crore.
Medium enterprise
Investment within limits of 5 to 10 Crore.
Service Sector
Micro enterprises
Investment limits to 10 Lac
Small Enterprise
Investment in between 10 lacs to 2 crore.
Medium Enterprise
Investment can be made up to 5 Lacs.
TASK 3
P4 Contribution of Small business and Business start-ups on social economy
Since it is well known that the economy of UK is currently filled with the no. of start-ups.
There are several types of small business ventures that are being opened in UK. Even now the
business are growing with each day as more and more people are having an ideas which they ae
applying and entering in the business world. With these increasing no. of start-ups the economy is
also growing at a very fast rate. The UK population is educated that they all are contributing in
getting the country developed. But since these ventures are giving benefits to the country so these
business must also think about the benefits of the society as they will have to provide the resources
that are demanded by the individual who are running the country (Goss, 2015). The government of
UK very well knows that their success is dependent on small and medium enterprises only and thus
it is necessary to take care of them.
The importance of small businesses in social economy are:-
 Turnover – If any company is having a good turnover then they are considered as very
important for the country as it is believed that if the turnover of the venture is good the they
will be growing in the market and thus they will be requiring more staff , more funds etc.
which will eventually bring growth .
 Employment – If any country wants to get developed then it is necessary for them to make
sure that the people who people present in the environment is employed. This will really
bring growth in the economy as these people are considered as the assets of the country and
if these people will get the job then there will not be any problem in the society as all their
resources will be utilised .
 Growth – If growth is discussed then micro and small business ventures are considered as

the highest contributors since they help the country by satisfying the employees and also
providing growth to people living in the local as well as regional level. The individuals who
are running these type of ventures are having more creative and innovative ideas which are
helping them in bringing freshness in the market (Jones and Rowley, 2011).
 Industry – It is believed that approximately 45% of the income of small businesses comes
from Retail,manufacturing and repair of motor vehicle only . These sectors falls under
small-business only . All these type of industries are having a huge impact in Britain so from
this only it can be assumed that how strong it is actually.
P5 Characteristics, traits and skills of successful entrepreneurs
Becoming an entrepreneur is not an easy task , there are various kinds of skills and qualities
that are to be presented in the person before they start their own company. The characteristics that
are required to be present in the entrepreneur are :-
 Self – Motivated – The individual who is thinking to start a new business so be confident
and self motivated in his own skin because if any such situation arise in which the person
has faced failure as it is normal to face failure once but if the entrepreneur is motivated then
he will not loose hope and will stand again.
 Know what to offer – The entrepreneur should always be aware about the offering that they
are offering to the customers and they should also be aware of the market that they have
chosen for their customers .
 Risk taker – It is not possible for country to make profits without taking risk. Risk is
considered as very important for growth . So, it is expected from the entrepreneur that they
take risk in their business in order to gain more and more profits. But since the entrepreneur
is smart so , they should take the risk in a duly calculated manner.
There are certain traits and kills also that a entrepreneur is required to have ;-
 Determined - It is very important for the entrepreneur to be determined in its work as they
are the main person in the company so they to be enough compassionate in theuir work.
 Passionate – If any entrepreneur wants to become successful in market then they will have
to be passionate enough to carry on all the activities. If they are passionate then they will
not fear from anything else and will continue doing all the activities that is considered good
for the companies (Karlan and Valdivia, 2011).
 Great Vision – It is considered as one of the most important trait which is required to be
present in the entrepreneur as it is very important to have a aim in life . These aims will only
help the person to achieve their actual goals and objectives.

P6 Aspects of Entrepreneurial Personality
There are various types of skills that are very essential to be presented in the entrepreneur if
they want to make profits and become successful as well. Few are like dynamic, confident, reliable,
courageous etc. they should also have good communication skills , interpersonal skills as it is very
important to be considered while designing the personality of the entrepreneur (Neck and Greene,
2011). The personality traits that are required to be present in the person in order to become a
successful entrepreneur are like personal strength, weaknesses etc.
There is always an idea that is behind setting up a whole new firm. If there is a good idea
then it is very important for the entrepreneur to execute the whole idea in an effective manner that
they give good results. If any company wants to analyse the traits of the individual then they can
make use of the Big Five model which is as follows:-
 Extraversion – these type of people are considered as very energetic and they are having all
the qualities of becoming a leader.
 Agreeableness – According to this, the entrepreneur must be trustworthy and good natured
person so that the people who will follow his footsteps believe in him and his ideas as well.
 Conscientiousness – here , it is considered that entrepreneur is efficient and dutiful and also
achievement driven.
 Emotional stability – It says that the entrepreneur should be calm and focussed in his work
and should not shout at the workers.
 Openness to experience – The individuals who are running business must be open minded
and should be ready to face new challenges as through this they will gain new experiences
as well.
TASK 4
P7 Factors that foster or hinder entrepreneurship
There are various types of factors that are responsible for fostering or hindering the
relationship present in the workplace. These are like education, traits, skills , cultures etc. it is
always believed that the if the people who are living in society is educated then they will be able to
conduct all of its operations in an effective manner. If the employees will not be educated then it
will foster the relationship present in the society (Schaper and et. al., 2014).
Experiences also matter a lot because if the entrepreneurs are having much experience in
their life and then they open their own business then it will be very beneficial for the companies as
this will help them in gaining success in the first attempt itself. So, it can be said that the past
experiences of the entrepreneur will also have an impact on fostering or hindering the relationship
as if the experiences are good then the person will do their new business with same enthusiasms but

if their past is bad then it may bring demotivation in the person and it can be very well seen in their
work.
CONCLUSION
From the above report, it can be concluded that entrepreneurship is a very important process
that is required to be present in the economy. It performs various functions that helps in the growth
and development of the country and also brings employment and finances. The entrepreneurs are
also taking huge risks while developing the plans and policies for the organisation which will help
them in achieving profits and the customers as well.

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Online
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