Unit 9 ESB Report: Entrepreneurship, Ventures, and Economy Impact

This report provides a comprehensive overview of entrepreneurship, focusing on various types of ventures including local, global, and social entrepreneurship, and the differences and similarities between them. It explores the impact of small businesses on the UK economy, emphasizing their contributions to job creation, innovation, and economic growth. The report also examines the significance of micro and small businesses, their adaptability to dynamic economic conditions, and their role in contributing to local government revenue and social well-being. Furthermore, it highlights the potential for small businesses to evolve into larger corporations. The report utilizes statistical data to illustrate the trends and impacts of small businesses in the UK, offering insights into their importance within the economic landscape.

Unit 9
ESB

Table of Contents

INTRODUCTION
Entrepreneurship is considered as one of the key indicator that is significant for a
country's economic development. An individual must have some specific knowledge, skills and
characteristics to become a successful entrepreneur. The person with entrepreneur spirit have the
temperament to identify the possibilities and also have the capabilities to use those opportunities.
Entrepreneurship is basically a mindset which is more than a method to earn money. (Omorede,
Thorgren and Wincent, 2015).
The organization which have been chosen by the inter of McKinsey & co. is Alcove care-
tech company which is developed by new entrepreneur Hellen Bowey in 2104. This article
concentrates on the central concepts and their significance on the entrepreneurship. It also
involves the relationship between entrepreneurship and various business ventures, differences
and similarities between various enterprising ventures are placed in the assignment.
The following report puts efforts to find out different entrepreneurial skills, characteristics
and factors which influence an individual to build a career in entrepreneurship.
TASK 1
P1 Entrepreneurial ventures
Type of Entrepreneurial Ventures:
Local entrepreneurship: Local entrepreneurial venture is the idea of providing goods or
services to the local customers. Local entrepreneurship helps in developing a enterprise which
derive its business from a local region or area which cover locations less than a country. For
instance, the co-founder and CEO of Alcove Care-tech Company is a local entrepreneur who
uses advance technology and software to provide security and safety to the local population of
London at their homes.
Global entrepreneurship: Global entrepreneurship is the set of characteristics and traits
that provide courage to an entrepreneur to promote and derive its business on a global platform.
Global entrepreneurs are capable to provide a huge growth to the economy by conducting their
business on a large level such as Amazon Inc. which has been developed by Jeff Bezos, is the
largest E-commerce company and creating huge impact over the economy.
Social entrepreneurship: Social entrepreneur are those courageous risk takers who
develop new business ideas to solve the societal or global problems and issues or to serve a
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quality life to the community or society. The social entrepreneurship is a rising trend nowadays
because it is developed to create a better and peaceful world (Jain, Jain and Jain, 2017). This
type of enterprises are non-profit generating organizations such as Gravity Light Organization
which designs lanterns to replace harmful kerosene lamps. It uses law of gravity to produce
power to lit lamps.
Typology of Entrepreneurship:
Craftsman Entrepreneurship: Craftsman entrepreneurship represents the characterised
and traits of an entrepreneur that the person have good professional and technical skills and
experience but communication or team management skills of the person are weak. A craftsman
entrepreneur don't feel comfortable in working with others and feels uneasy in communicating
his/her ideas and creativities.
Opportunists Entrepreneurship: Opportunist entrepreneurship as its name shows,
express the quality of the entrepreneur that the person knows very well that how to grab the
opportunities and utilise them for business growth. The entrepreneur is able to identify the
possibilities and implement the ideas within the business before anyone else to take the benefit of
chances (Nabi and others, 2017).
P2 Difference and similarities between various entrepreneurial ventures
Similarities among different ventures:
 All the entrepreneurs social, local and global, majorly concentrate on making earnings
whether for the social or organization welfare. The main and primary duty is to profit the
multitudes either outside or inside the establishment.
 Global, local and social entrepreneurs are creative and innovative, focused, determined,
assured, positive and fearless, take and endeavour risks, have a go-getter and can-do
attitude. They have personal skills and strong workplace ethics and are self-motivated.
 The organizational venture can be big or small, whether in a rural or urbanized area,
intangible or tangible, pertaining any quantity of assets and investment, its provides an
chance to make the changes and growth in the guild to the group or person bringing forth
the idea and that is the best part of both the business establishments.
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 The businesspersons in all three types lean to commence a organizational speculation so
that to make modification in their routine & lifestyle, and incline to encourage economic
and societal status growth. Entrepreneurship is creating an enterprise, managing and
moving a new entity and holding it for a long period of time.
 The local, global and social entrepreneurship need integration of the apparently hostile
activities of stimulating change through innovation and protecting the existing business
(Lortie and Castogiovanni, 2015).
Differences between entrepreneurial ventures:
Local Entrepreneurship Global Entrepreneurship Social Entrepreneurship
The motive of the
entrepreneurs to increase the
growth of the business and
survive in the industry.
The entrepreneur is passionate
for achievement of the goal
and stays strong in 'need for
achievement'.
The entrepreneur is strong in
'need for extension motivation'
and passionate for achieving
social mission.
These are innovative thinkers
with less resources to loss
hence huge risk takers.
The entrepreneurs are
innovators and catalysts
behind economic growth.
These kind of entrepreneurs
are engaged in creating social
values essentially reducing
social impurities.
The market share available for
these entrepreneurs is limited
and resources are also limited
for them.
These entrepreneurs have
created large markets and also
created resources for the same
(Saebi, Foss and Linder,
2019).
These entrepreneur serves into
a large market with limited
resources to stimulate global
improvement.
Investments and capital
requirements of these
enterprises are low therefore
the profit margin is also less.
These entrepreneurial
organizations run their
business to increase their
capital and earn huge profits.
This entrepreneurship has a
leading objective of social
well-being & awareness and
profit earning is minor goal.
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Impacts of small businesses on economy
The business ventures are eventually significant for the each level of an organization. The
development and scope of growth section is accelerating as the economic deflation is coming
down continuously in United Kingdom. Investors and people are nowadays investing their
resources in new enterprises and business ideas apart from this the young contemporaries are
more convergent to derive their own organizations or establishments rather than having
employment under others. In this sense, the extent of the entrepreneurial growth are increasing.
On the other side, any establishment can not operate smoothly without following these
entrepreneurial concepts. The individuals with creative ideas and innovative business plans are
trying to develop a lot of ventures in the growing economy. But one thing that can be intelligibly
seen in the data and statistics that 99.03% business market is covered by the small, micro and
medium size organizations so all the small and medium establishments will adapt entrepreneurial
strategies in order to survive in the competitive market (Afshar Jahanshahi, Nawaser and Brem,
2018).
TASK 2
P3 Impact of micro and small business on economy
Small and medium enterprises are the keystone of the economy of UK as they are driving
growth, creating jobs and opening new markets therefore their efforts are vital. As inspiring for
creativity, they promote competition and convey fresh thought and content that try to change the
status quo. This stimulation incentivise others to alter. Confidence in a rising frugality is being
felt more powerfully across British enterprises and a optimistic profitable mindset sees
burgeoning scope for growth, both at overseas and domestic (Nasiru, Keat and Bhatti, 2015).
However, it is essential to countenance at the broader scenery and perceive that the
leading way has its own challenges, such as access to finance, red-tape and prohibitive
regulation. The data and statistics that represent the overall impact of micro and small business
on UK economy is mentioned below:
Summary:
 There were 5.6 million registered small businesses actively working in the UK at the start
of 2018.
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 In comparison to the year 2017, the private sector enterprises' aggregation decrease by
0.5% (-27,000 businesses) while oppositely private sector employment rate increased by
2% (+304,000).
 This opposition is ascribable to the figure of smaller non-employing establishments
diminishing by 1% (-50,000) but the amount of bigger employing entities increasing by
2% (+23,000).
 The fall in the commercial enterprises' population is the first slip in the order, which
begun in 2000. However, there are still 63% (+2.2 million) more enterprises than in 2000.
SMEs and the Economy:
 The conjunctive yearly turnover of Small and Medium Enterprises were £2.0 trillion,
52% of overall private sector turnover.
 Total employment in SMEs is 16.3 million that is 60% of all private sector employment
in the UK.
 Small enterprises are liable for 99.3% of overall private sector establishments at the
beginning of 2018 and 99.9% were small or medium businesses.
Composition of the business population:
 The overall entities population involves three primary licit forms: there are 59% of the
total sole proprietorships (3.4 million), 34% companies (1.9 million) and 7% ordinary
partnerships (405,000).
 In 2018 there were 4.3 million non-employing businesses and 1.4 million employing
businesses. Therefore, 75% of establishments did not employ anyone aside from the
owner(s).
 45% (2.6 million) establishments were certified for Value Added Tax or Pay-As-You-
Earn (PAYE) out of the 5.7 million businesses.
Trends in the business population
 From 2000 to 2017, a continuous growth was recorded in the enterprises aggregation
every year which has been noted as drop down currently by 27,000 (-0.5%) organizations
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between 2017 and 2018. Nonetheless, there were still 2.2m (+63%) more businesses than
in 2000.
 A bulk of entrepreneurial development which contributed for 87% of the entire rising
since the year 2000 has been because of the non-employing establishments.
 Figure of non-employing enterprises fell by 50,000 while employing establishments have
increased by 23,000 which is resulting as an whole drop-off of 27,000 organizations
between 2017 and 2018 (UK small business statistics, 2019).
 The figure of ordinary partnerships and sole proprietorships got down by 9,000 (-2%) and
49,000 (-1%) respectively while the amount of large organizations has enhanced by
31,000 (+2%) in the last year.
P4 Importance of small businesses & business start up growth to social economy
The significance of micro and small size enterprises can not be overlooked within the
economic system of any nation. These business undertakings are known for their contribution
toward a large extend as a source of entrepreneurial skills and innovation as well as the source of
employment. Statistics and researches also show that 99% jobs of European Union are provided
by micro, small and medium size organizations. These micro and small enterprises have
significance in the economic efficiency of United Kingdom because of their contributions that
are explained as under:
Employment: All the micro and small enterprises provide help in developing social
lifestyle and status by bringing innovation and growth in the society. These business concerns
provides employment to those individuals who may not get hired in ample organizations. Small
establishments are tend to invent and find out talented and skilled individuals who are valuable
resources for an economy.
Adapting to Dynamic Condition: Most of the micro and small enterprises also have the
quality to reply and accommodate rapidly to dynamic economical climates because small
organizations are generally customer-focused and realise the requirements of the society. Small
business concerns also compile less income than larger business firms that means they have less
resources to lose at the time of economic crisis (Hemme and others, 2017).
Contributing to Local Government: A flourishing micro and small business will create
advanced levels of income that means the organization will have to pay high taxes regarding
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general property taxation. A flourishing small entity also may increase assets prices throughout a
locality, rising up each individuals lowermost base while creating more property revenue
enhancement for local authorities.
Growing a Small Enterprises to a Corporation: Micro and small businesses have the
potential to transform into large organizations with the help of skilled entrepreneur. Ben and
Jerry's are the example of this statement. These small business often remain in the same locality
after growing into large corporations with their headquarters and provide jobs and occupations
and stimulate the local financial status.
TASK 3
P5 Traits, Characteristics and Skills of prospering entrepreneurs
Characteristic of booming entrepreneurs:
Flexibility: A successful business personality is very flexible and adaptive in nature and
always be ready for making changes in environment so that he/she can grab the opportunities to
enhance the business.
Creativity: All the business entrepreneurs are innovative thinkers and include creativity
in their ideas and working that help them solving modern problems in an effective and efficient
manner.
Self-motivation: The persons with entrepreneurial characteristics always get ready for
new learnings and learn from the failures too. They have the ability to manage the failures and
get motivated by themselves (Mouselli and Khalifa, 2017).
Skills of successful entrepreneurs:
Risk Management: Risk management is the most effective and crucial skill that
entrepreneurs have which inspire them to begin an organization and take the risks to achieve the
success in organizational activities.
Leadership: Entrepreneurs have the ability to influence their followers and guide them in
such a manner that they get motivated and provide their full support and efforts to achieve the
goals decided by the entrepreneur.
Networking: The successful entrepreneurs have impressive communication skills and
excellent in developing relations with effective and related persons that helps them creating a
huge network to grow their business.
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OCEAN model of Personality traits:
OCEAN model is a method to examine the attitude and traits of a business personality. It
defines big five personality attributes of the enterprisers that prove them assorted from other
normal people. These five personality traits are presented below:
Openness: Learning and adapting is the most important features of openness traits. The
personal who have entrepreneurial motivation and mindset have unique ideas and thoughts which
help the person in being creative and open for new things.
Conscientiousness: People with entrepreneurial mindset have prodigious pulse control
and thoughtfulness with goal-orientation. They are tremendously conscientious people with
detailed and exceptional organizational abilities (Whitehurst and Richter, 2018).
Extraversion: An essential personality trait of entrepreneurs is that they are extravert by
nature. They never feel uncomfortable, shy or get hesitated in sharing their ideas, are very
talkative, social, energetic and enthusiastic.
Agreeableness: Entrepreneurial personalities always stay positive, cheerful and try to
avoid the negativity. They are very kind, generous, full of empathy, considerate, extremely
trustable and affectionate by their nature.
Neuroticism: Neuroticism is the tendency or degree of mental stableness. The people
who have entrepreneurial skills are very calm and mentally stable, have less mood swings and
control their behaviour in the worst conditions.
P6 How features of business personality indicate mind set and motivation
Numerous components are there in the characteristics of an enterprises which are liable to
represent the success of an entrepreneur which include the risk taking and management, ability to
initiate, execution and improvement of new commercial enterprise contents and even getting
impulsive leadership and management skills. Through the apprehension of these features, it is
clear that a business owner is a person who furnish the skills and knowledge on a regular basis
by learning process so that the person can be more agonistic.
There is a larger integration between enterprising motivation & mindset and
businessman's personality. The enterprise driven attribute is majorly established from the very
beginning stage of childhood itself along with the extrinsic environment in which the person
risen up have a huge influence on the personality. The persons whose up bringing has taken
place within the surroundings full of freedom and creativity, have shown more prominent
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attitude and attributes of management and leadership than the people who has been bought up in
a strict and bounded surroundings(Shirokova, Osiyevskyy and Bogatyreva, 2016).
This is also notable that the individuals who have all these positive and good personality
attributes, possess more potential to understand their followers, co-workers or employees that is
helpful in setting overall business mindset and contributes towards the entrepreneurial
motivation.
Difference between entrepreneur and business managers:
 The entrepreneurial personality is that which focuses on establishment of the business
and further expansion and growth of the organization while business managers have to
concentrate on smoothness of daily operations and functions.
 An entrepreneur is the founder of the business hence liable for all risks, losses and profit
as well. On the other hand, business managers are the employees who work for the
organization and do not bear any risk (Zahra, 2015).
 The entrepreneur gets motivated by achievements and profit in the business is the reward
for his/her efforts whereas business managers get salary for their work and get motivated
by the powers and authorities that they gain from their position.
TASK 4
P7 Influence of background on entrepreneurship venture performance
The formulation, working methods and mindset of every business personality vary from
others when it comes to decision making and business procedure. These variation is usually due
to skills and personality traits that they acquire through their life experiences and duration of
time. The life experience and the education is greater accelerator in the designing and shaping
process of an individual attribute and this thing also applies on an entrepreneur. Attributes and
characteristics like self-management, self-motivation, co-ordination and self-esteem are
significant in a business minded person and these factors are derived from lifestyle, education
and life experience of that enterpriser (Łobacz and Głodek, 2015). Situational factors that have a
huge impact over the performance of the CEO and Co-founder of Alcove care-tech company,
Hellen Bowey are mentioned below:
Personal background: Hellen Bowey is known as one of the most revolutionary and
creative entrepreneurs who is a progressive thinker and utilise the advance technology for the
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betterment of disabled and dependent population of overall society for which she got inspired by
her disabled sister.
Social environment: Environment refer to the surrounding that need to be taken care
while conducting the performance of an organization. An incident in which the technology
developed by the enterprise saved the life of a lady within three months of establishment of the
company inspired Hellen to take the business on new heights.
Experience: Hellen Bowey has a sister who is suffering from microcephaly due to which
Hellen experienced the challenges that those individuals have to face. This experience evolved
her interest in technical knowledge and she completed the studies in her interest areas. Hence the
experience enhanced the knowledge of the entrepreneur and assisted them to make sound
decision.
CONCLUSION
With the help of above article, it can be concluded that in the contemporary economic
world, people can't anticipate large organizations to assure them for lifetime jobs. Individuals are
progressively foreseen to look for their own possibilities, actively develop values and react
ethically instead of dependably precede routines and rules decide by others. The young
generation specifically nowadays require to acquire the knowledge to be industrious for both
when setting up their own businesses and when working for others. To be industry ready pertains
taking provinces for making decisions, becoming more and more self dependent, adventurous,
pioneering, daring, ambitious, progressive, dynamic, opportunist and holding ethical values and
being capable to initiate ideas as well.
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REFERENCES
Books & Journals:
Afshar Jahanshahi, A., Nawaser, K. and Brem, A., 2018. Corporate entrepreneurship strategy: an
analysis of top management teams in SMEs. Baltic Journal of Management. 13(4).
pp.528-543.
Hemme, F. and et.al, 2017. Extending sport-based entrepreneurship theory through
phenomenological inquiry. Sport management review. 20(1). pp.92-104.
Jain, R., Jain, C. and Jain, P., 2017. Management of Education for Entrepreneurship: Conceptual
Foundation for Practice & Research. Indian Journal of Industrial Relations. 52(4).
Łobacz, K. and Głodek, P., 2015. Development of Competitive Advantage of Small Innovative
Firm–How to Model Business Advice Influence within the Process?. Procedia
economics and finance. 23. pp.487-494.
Lortie, J. and Castogiovanni, G., 2015. The theory of planned behavior in entrepreneurship
research: what we know and future directions. International Entrepreneurship and
Management Journal. 11(4). pp.935-957.
Mouselli, S. and Khalifa, B., 2017. Entrepreneurship in crisis: the determinants of syrian
students’ entrepreneurial intentions. Business, Management and Education. 15(2).
pp.159-173.
Nabi, G. and et.al, 2017. The impact of entrepreneurship education in higher education: A
systematic review and research agenda. Academy of Management Learning &
Education. 16(2). pp.277-299.
Nasiru, A., Keat, O. Y. and Bhatti, M. A., 2015. Moderating Role of the Perception of University
Support on the Relationship between Perceived Effective Entrepreneurship Education
and Perceived Creativity Disposition on Entrepreneurial Intention. International
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Omorede, A., Thorgren, S. and Wincent, J., 2015. Entrepreneurship psychology: a
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Saebi, T., Foss, N. J. and Linder, S., 2019. Social entrepreneurship research: Past achievements
and future promises. Journal of Management. 45(1). pp.70-95.
Shirokova, G., Osiyevskyy, O. and Bogatyreva, K., 2016. Exploring the intention–behavior link
in student entrepreneurship: Moderating effects of individual and environmental
characteristics. European Management Journal. 34(4). pp.386-399.
Whitehurst, F. and Richter, P., 2018. Engaged scholarship in small firm and entrepreneurship
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practice. International Small Business Journal. 36(4). pp.380-399.
Zahra, S. A., 2015. Corporate entrepreneurship as knowledge creation and conversion: The role
of entrepreneurial hubs. Small Business Economics. 44(4). pp.727-735.
Online
UK small business statistics, 2019. [Online] Available through
<https://www.fsb.org.uk/media-centre/small-business-statistics>
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