Entrepreneurship Report on Ventures, Economy, and Post-Brexit UK

This report delves into the multifaceted world of entrepreneurship, examining various entrepreneurial ventures like sole proprietorships, partnerships, and corporations, highlighting their similarities and differences. It assesses the significant impact of micro and small businesses on the UK economy, emphasizing their contributions to GDP, employment, trade, and social development. Furthermore, the report explores the importance of small-scale industries in the growth of the social economy in the UK, particularly in the context of Brexit, analyzing both challenges and opportunities. It also identifies the key characteristics, traits, and skills that differentiate successful entrepreneurs from traditional business managers and assesses how entrepreneurial personality aspects reflect motivation and mindset. Finally, it explains how background and experience can foster entrepreneurship, providing a comprehensive overview of the entrepreneurial landscape.

Unit 9
Entrepreneurship

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types of entrepreneurial ventures and typologies of entrepreneurship...................1
P2 Exploring the similarities and dissimilarities between entrepreneurial ventures...................3
TASK 2............................................................................................................................................5
P3 Assessing the relevant data on how micro and small business impact on economy.............5
P4 Explaining the importance of small-scale industries in growth of social economy in the UK
after Brexit. ................................................................................................................................6
TASK 3............................................................................................................................................8
P5 Determining the characteristics, traits and skills of two successful entrepreneurs which
differentiate them from other business managers.......................................................................8
P6 Assessing how entrepreneurial personality aspects reflect entrepreneurial motivation and
mindset........................................................................................................................................9
P7 Explaining how background and experience can foster entrepreneurship...........................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
An entrepreneur is basically an individual who performs to organise and manage,
which help to grow the entire organisation. It is the process which designs and help to
run the business successfully. Entrepreneurship is that individual personality which
provides the good business environment to their employees and helps to increase the
working abilities of them.
In this report about entrepreneurship, there will be different entrepreneur ventures
working in an economy and small-scale business is having a big impact on the
economy. Small businesses and business start-ups will contribute to the growth of
social economy just after Brexit in the UK. A successful entrepreneur has some different
characteristic, traits and skills which differentiate them from the other business
managers. Entrepreneurial personalities always reflect the entrepreneurial motivation
and the mindset. An entrepreneurs background and his experience also hinder and
foster entrepreneurship to a great extent. Post-Brexit there are many opportunities
towards small business in the UK and they just need to explore them all.
TASK 1
P1 Different types of entrepreneurial ventures and typologies of entrepreneurship
Entrepreneurship define as a capable personality which organise, manage and
have ability to perform well in the business organisation. It is based on the relation
between the capital, labour and land with the natural resources in a discriminative way
which has the aim to maximize profits (Bah, De-Hana and Strom, 2016.). Entrepreneur
ventures are those personalities which perform their task with the aim of achievement of
goals and maximizing the profits in long run. There are various kinds of ventures, but
based on economic term it is classified in four essential types:
 Sole proprietorship: These kinds of ventures are referring to those business
personalities which perform the operating activities in small-business
organisations. This is basically a survival for small scale business personalities.
In this type of business, the owner makes all the decisions and not obligates to

anyone when it comes to deciding the location of the business, what to sell, who
to hire or anything else. The entrepreneur is a recipient of all the profits
generated by business as is not legally bound to share the profits with anyone
else.
 Partnership- it is that type of venture which is owned by two or by more persons
at the same time they all in the said ratio distribute all profits and losses. All
partners help in the setting up of the business, financing, and the ongoing
business expenses (Chatterjee, Glaser and Kerr, 2014). The profit percentage
depends upon the ratio in which they have done the investment at the time of set
up in the venture and apply when business is sued in the court of law and each
partner is liable to it.
 Corporation- it is a more complex form of an entrepreneur venture as it has
certain rights, privileges and liabilities beyond that of an individual. Corporation is
mainly run by thousands of shareholders who own 100% of the corporation each
defined by their percentage of investment in the company. Corporation has a
separate legal entity from its owners and the owners or the shareholders have a
limited liability to that of the percentage of share.
 Non-profit corporation- is a legal entity which is typically runner to achieve an
ideal goal like the social motive rather than just for profit making. They work
together for the betterment of the section of society of for what they have formed.
Profit making is not as per their part but any profit is gained then it is again
invested in the social motive only.
 Social enterprise- they are those type of enterprise which are set up to work for
the betterment of society and they help the people who are in requirement of
financial or moral support. They are mainly set up for social motive rather than
just to earn profits.

Illustration 1: Entrepreneurship
[Source: Entrepreneurship. 2017]
§
P2 Exploring the similarities and dissimilarities between entrepreneurial ventures.
The various types of entrepreneur ventures are having many similarities and
differences between them but the most common thing about all of them, is the profit
motive as they all are set up to earn profit whether in terms of money or social cause.
They all need to follow the rules and regulation which are governed by the laws of the
country and all need to pay the penalties if not followed the rules. Sole proprietorship,
corporation, partnership and non-profit corporation all have they corporate social

responsibilities towards the environment and the country they all need to follow some
ethics if they want to operate in the community (Chill, et.nl 2016). They all need a
successful entrepreneur to run the business in a correct way and grab the opportunities
in the market to grow and develop. Besides the similarities' corporation, sole
proprietorship, partnership and non-profit corporation are having differences also
between them all.
Bases Sole
proprietorship
Corporation Partnership Non-profit
corporation
Ownership The ownership
lies with the
single owner as
he starts the
business with
his own.
Shareholders
are the real
owner of
business as
they hold the
shares of the
company in a
percentage.
Ownership
remains with the
partners of the
firm which is
written in the
partnership
deed according
to the profit
sharing ratio.
Normally the
ownership is the
single person
who starts the
organisation but
it can be in
partnership or
on the bases of
shareholding as
well.
Motive The sole
proprietor has
the motive of
self-earning and
taking the profits
earned.
For the profit
motive of the
shareholders to
make them
profitable.
Motive of
partnership is to
earn profit but
for the partners
only.
The objective is
to earn social
motive and for
the betterment
of the society
and its people.
Liability The whole legal
liability is that of
the owner as he
is the sole
The liability is
that of the
shareholders in
that too in
Liability is that
of the partners
in their profit
sharing ratio
Liability is that
of the owner of
the non-profit

proprietor of the
business.
accordance with
the shares they
have
only. organisation.
Decision
making
The power is
that of the sole
proprietor he
can only make
the rules.
Shareholders
can make the
decision the
corporation as
they are the real
owner.
The decision-
making power is
that of the
partners in their
profit sharing
ratio.
In non-profit
organisation, all
the owners have
the right to
make decision
regarding all
things.
TASK 2
P3 Assessing the relevant data on how micro and small business impact on economy.
Small business is that type of organisation which run on a very small scale with
generally having only one or two owners. The operation is on a small basis and the
profits earned are also limited risks involved are also few. But still, the small-scale
industries in all economy are a critical component and major contributor to the strengths
of the economy. The large companies get much attention by media in economy but the
small and medium-sized enterprise (SMEs) and entrepreneur are the backbone of UK
economy. According to the Department for innovation Business and skills in 2014, there
were about 5.2 million small-scale enterprises in the UK. These small scaled industries
contribute in huge amount in the overall development and growth of the economy. The
impact of small scaled business on economy is on GDP, employment, trade and
finance, social development and giving a tough competition to the large-scale industries.
 On GDP- the gross domestic product of any economy depicts the aggregate
number of product produced in the economy over a particular financial year
(Dana, Gradient and Mason, 2016.). Small-scale industries are having many

shares on the GDP of the economy as they produce over 58% (UK economy and
Brexit, 2017) of the total goods and services produced in year 2015 in the UK.
 On employment- the small-scale business provide employment to a huge
section of society and majority of them are from poor and weaker section of
society. The employment percentage is about 67% in UK's economy (UK
economy growth and the impact on small businesses after Brexit, 2017). They provide
a broad variety of new employment opportunities and give them employment to
the needy. By this employment not only the employee gets the benefit but
employee's family as well.
 Trade and finance- as they are the major contributor to the economic
development of the economy so they also give their contribution in the trade and
finance of the country. They are involved in the export of the goods produced by
them thus contributing to the GDP.
 Social development- because of small-scale industries society is also
developed as by giving employment to the public (Davidson, 2015). It helps the
society to develop and maintain their living standard as income is generated by
this.
 Competition- the small-scale industries create tough competition to large
industries in terms of income and profit. About 99% of the total industries of UK
are small-scale contributing 67% of the employment and 5.2 million small-scale
industries.
P4 Explaining the importance of small-scale industries in growth of social economy in
the UK after Brexit.
In the Referendum held on 23rd June, 2016 UK voted to leave the European
Union (EU) by 2019 this ultimately lead to decline in the rate of UK economy. The GDP
of UK also declined which meant the smaller business would struggle to keep afloat as
the rate of Pound Sterling came down after the vote. The weak pound has also push up

inflation in UK which would mean increase in the price of the goods in the UK. This will
have a big impact on the small-scale industries as customer will be feeling a pinch on
their pockets. In 2017 and afterwards there will be many hurdles for economy of UK t o
overcome from this, small businesses should be planning for this time and somehow
need to manage the uncertain situations (Fayolle and Gailly, 2015). About 21% that is
more than one million small scale businesses currently employ EU nationals but there is
no clear indication of the future legal status of this workforce. The smaller companies
are less exposed to the international markets of Britain 5.2 million small scale industries
it is estimated to only 11% export. There are 3 million VAT registered business which is
about 110000 traded with companies in EU in 2014-15.
Illustration 2: UK economy and Brexit
[Source: UK economy and Brexit, 2017]
Before Brexit UK was regarded as one of the best countries to start a business
but all this changed with the implication of Brexit. After Brexit vote, the British Pound fell
to its lowest level in the last 31 years which is €1= $1.2273 and the inflation rise about
1% after 2016 which is likely to rise to 2% in early 2017 and 3% at the end. In 2015
before Brexit UK small businesses exported about €133 billion worth goods to rest of
the EU which almost half of global goods exports. It is predicted that this export will
experience a loss of at least €4.5 billion every year if UK leave EU without negotiating
the new trade agreement with EU. The new trade agreements with EU will consist of
free trade agreement with EU and rest of the world. This also has affected the small
business unemployment rate which will increase to 6.5% due to recession in the UK

which equals to the loss of 500000 jobs. OF about half the UK's FDI in small-scale
industries comes from EU which is €1 trillion and will certainly increase the trade cost
and tariffs and decrease investments in UK about 22%. Before Brexit UK's government
was contributing about €13 billion to the European Union budget in 2015 and around
€8.5 billion each year (Fayolle, 2013.). After the decision of leaving the EU the Britain's
government will save this money which will be helping it to contribute the small-scale
businesses development.
TASK 3
P5 Determining the characteristics, traits and skills of two successful entrepreneurs
which differentiate them from other business managers.
All the successful entrepreneurs possess some common and important
characteristic and skills, which make them capable of running a business all alone. To
be successful in the business one must be very determined, risk-taking, confident and
hard working then only can become successful in the business. Like the two most
successful entrepreneurs of UK are Sir Richard Branson CEO of the Virgin Group and
J.K Rowling the most famous author. Sir Richard Branson is the CEO and the founder
of Virgin group which hold more than 200 companies under it and having a net worth of
about €2.58 billion ranks 254 in the global list of billionaires and 5th richest person in the
UK. Some of the leadership qualities of Sir Richard Branson are:
Democratic- Richard Branson always listen to the people working around him
and he is very humble with his employees which makes them feel important to
the organisation.
Visionary- Branson's vision of embarking on novel and stimulating prospects led
him to expand the Virgin name worldwide (Fayolle, et.nl 2016.). Always with a
vision to bring some new and devastating changes in the hospitality industry is
the reason of Richard Branson's success.

Team building- he always loves with working with his team members and thus
creating fun and confidence in the working environment. The most important part
of being a good team leader is not just leading the team or followers but to adopt
relationship and always showing interest in their needs. In hospitality industry,
one does not have to work with just the team members but also with other
industry partner, guests etc.
Confident, determined and persistent- they are all fundamental skills to strive
in the competition in hospitality industry. Branson at the age of 8 suffered from
Dyslexia which made it difficult for him to read and write but this not stopped him
and he fought with this disease and ultimately overcome it. Virgin Airlines was
sold because it was unprofitable but all these does not stop him from searching
other possibilities as he is very determined in his work.
J.K Rowling is a British novelist and writer of the famous book series, film
producer and screenwriter of Harry Potter (Hogenson, 2016). This fantasy series gained
worldwide attention, won many awards, sold about 400 million copies and become the
best-selling book series in history.
Entrepreneurial and progressive- Rowling become the first ever billionaire from
writing books and is heading for the top. Rowling is very passionate about her
work and always in a way to do better than before.
Confident and hard working- Rowling is very hard-working as an author writes
her literary work at night at very initial times of her publishing of Harry Potter
series she was rejected many times but this did not bother her much.
Determined- as an author and a film-maker she is very much determined for her
work and proved that to be a successful entrepreneur all it needs a good idea
and lot of determination.

P6 Assessing how entrepreneurial personality aspects reflect entrepreneurial motivation
and mindset.
The personality of entrepreneur will always reflect and effect the entrepreneurial
motivation and the mindset. But they have a different mindset from each other as their
objectives are different from each other’s their mindset contribute to the success.
Motivation is that force that drives a person either from inside or from outside to do
something bigger and better in life to achieve the goal and be successful. Personalities
include human characteristic like abilities, motives, attitudes and value which shape the
individual person his experience and action (McKeever et.al, 2015.). So, the
personalities of successful businessmen also effect the motivational level of the
entrepreneur. The different types of entrepreneurs like the managing entrepreneur
whose chief motive is that of security, then are the innovation entrepreneur who is
always interested in the excitements and ready to take risk all the time and then the
controlling entrepreneur who above all the motive only wants the power and authority in
the organisation.
Abilities- the willingness or the strength of the entrepreneur to do something and
to achieve the motive will tell the ability of the entrepreneur and the motivation
level as well.
Motives- objectives of the person for which he is setting up the entrepreneurship
also effect the entrepreneur motivation. As it tells the entrepreneur what to do
and how to perform at the best level in the worst situations as well.
Values- the set belief of an individual which guides entrepreneur throughout the
life about what is wrong and what is correct can also affect the way in which he
can work in his life.
Education- the qualification of an entrepreneur affects his way of managing the
people and the business in a good way (Parvathy, et-al 2014). Education and
knowledge of a person very important to be successful in business.