Entrepreneurial Ventures and Typology: A London Case Study

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Entrepreneurship and Small Business Management
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Table of Contents
Introduction................................................................................................................. 2
LO1............................................................................................................................. 3
LO2............................................................................................................................. 6
LO3............................................................................................................................. 8
LO4........................................................................................................................... 11
Conclusion................................................................................................................ 13
Reference list............................................................................................................ 14
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Introduction
This assignment consists of analysis of small business enterprise in London. The
feasibility of operating a small business in London is discussed. London provides a
great opportunity to new start-ups and entrepreneurship. The different
entrepreneurial ventures are examined along with their connection with the
categorization of entrepreneurship. The similarity as well as dissimilarity of
entrepreneurial ventures is covered. Interpretation and accessibility of statistics as
well as relevant data are discussed to illustrate the effect of micro and macro
businesses in establishing a meagre business. The importance of start-ups business
as well as small business in context to the advancement of social economy is
explained. The skills and characteristic trait of successful start-ups that will help in
differentiating the business from other business are determined. The aspect of
entrepreneurial personality in reflection with entrepreneurial mindset as well as
motivation is assessed. With the help of relevant examples, the background as well
as experience that can hinder entrepreneurship are examined.
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LO1
P1 Examine different types of entrepreneurial ventures and explain how they
relate to the typology of entrepreneurship.
The report includes understanding of entrepreneur and entrepreneurship along with
their typology that divides all ventures of entrepreneurship. The various
entrepreneurial ventures are analysed. The relation between typology of
entrepreneurship as well as types of entrepreneurship is discussed.
Defining entrepreneurship and entrepreneur
Entrepreneurship is defined as capability as well as willingness to organise, establish
and managing a new venture by facing all the difficulties for the growth and
sustainability of the business. An Entrepreneuris the person who seeks challenges
by eliminating threat as well as risk in order to start a new venturein an effective and
efficient manner (Readet al., 2016).
Typology of Entrepreneurship
In order to discuss the typology of entrepreneurship there is a need to discuss the
different groups of entrepreneurial ventures.
Individual Entrepreneurship:This entrepreneurship is defined as independent as
well as initiative an activity that focuses on gaining a net income because of
individual properties and is carried on by the individual itself. The threat as well as
responsibility of the firm relies directly upon the individual. Other people are not
allowed to carry or operate individual entrepreneurship. Personal and Joint
entrepreneurship is the two different types of individual entrepreneurship
Corporate Entrepreneurship:This entrepreneurship is defined as a method that
helps in developing new enterprise, products as well as services. It is also termed as
a process within an existing firm to develop values and create profit as well as
growth with the help of both entrepreneurial plan and action. It gives the system
identification of resources, environment and methods to motivate as well as engage
the firm in entrepreneurial plan and action
Public Sector Entrepreneurship: The entrepreneurship of public sector is termed
as a method that exists inside the public sector firm. This is applied in order to
innovate the several activities like developing new as well as existing products and
services, advancement in technology, techniques of administration, risk bearing
capacity and productivity.
Types of entrepreneurship
The entrepreneurship is classified into several types. The different types of
entrepreneurship are explained below
Start-ups:AnOrganisation in its starting phase of operation as well as function is
called start-upsentrepreneurship. Their founders who possess the characteristics of
entrepreneurship control the company
Acquisition: Companies who seeks to grow with the help of acquiring other in order
to increase the shares of market, advancement in technology, achieving synergies,
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establishing appropriate distribution channel in order to control the fortune of
organisation
Franchise: The process in which franchisor offer a licence to control the business
and provide assistance for training, managing, organising and merchandising.
New development: New development refers to the improvement in the knowledge
as well as skills of entrepreneur with the help of different training and planning
programs.
Interrelationship between typology and types of entrepreneurship
The interrelation between typology and types of Entrepreneurship are both typology
and the types of entrepreneurship focus on same thing that includes growth and
expansion, sustainability, advancement in technology, maintaining distribution
channel and bearing risk for improving the efficiency of organisation. Both typology
and types of entrepreneurship focuses on establishing a new enterprise with the help
of creative and innovative ideas. Both typology and types of entrepreneurship also
concentrates on creating new plans and strategies in an existing business (Julien,
2018).
The report provides an understanding of entrepreneur as well as entrepreneurship.
The different typology of the entrepreneurship along with different types of
entrepreneurship is explained. An interrelation between the typology and types is
also provided for better understanding.
P2 Explore the similarities and differences between entrepreneurial ventures
The following section of the study illustrates various differences established between
entrepreneurial ventures. Apart from that, the study also includes a set of similarities
between different entrepreneurial venture.
The three main categories of entrepreneurial ventures are known as “Lifestyle
venture, High Growth venture and Smaller Profit Venture”. Lifestyle venture are
regarded to those ventures, which are created to maintain a certain lifestyle of the
entrepreneur. These types of venturesrequire less investment compared to that of
the other two and have a limited scope of growth. Sole practitioners or small groups
of husbands of wife are ideal to run these types of ventures. Whereas, Smaller
Profit ventures are referred to that type of ventures, which have a low amount of
annual turnover but cater to subsequent amount of needs of the customers. It is
almost similar to lifestyle venture but Smaller Profit venture have enough potential of
growth. However, High Growth venture are referred to those set of ventures, which
are intended to grow at a rapid pace and at the same time incur a certain amount of
profit. These types of ventures can be owned by a distinct number of people and
need a lump some amount of investment in the initial stages only.
Similarities between various entrepreneurial ventures are as follows:
 Being biased to new ideas: Any entrepreneur always remains inclined
towards innovative ideas. Every venture is a result of an innovative idea being
formulated by the entrepreneur. A successful entrepreneur never considers
any idea to be vague they try to bring out the best out of the worse ideas too.
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 Being Risky: Every venture is started by engulfing a certain amount of risk. It
is viable that no one can determine whether a venture will be successful or
not and this is the very reason that it is regarded as a risky process.
The ability of a person to behave and act like an entrepreneur while being employed
under an established company is regarded as intrapreneurship. It is generally
regarded as a practice of corporate management style. An entrepreneur setting up a
venture, which implement, fund and develop solutions to environmental, social or
cultural issue is regarded as a social entrepreneur.
The above study concentrates on exploring various discrepancy and similarities
between various entrepreneurial ventures. The later half od the study also consist of
brief information related to social entrepreneur and intrapreneurship.
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LO2
P3 Interpret and assess relevant data and statistics to illustrate how micro and
small business impact on the economy.
The following section of the study concentrates small and medium sized enterprises
of UK. Apart from that, the donation of micro and small business in the economy of
UK and the world economy is also portrayed in the study.
SME’s are flourishing their operations over the entire United Kingdom rapidly as
compared to that of United States and France. This the primary reason behind the
downfall of the unemployment rate in UK because SME’s are employing a certain
amount of the population every year. The unemployment rate of UK is recorded
4.0% in December,2018, which is much lower compared to that of United States (4
%) and France (8.9%) (Martin et al., 2018). SME’s are playing a big role behind the
development of the economy of UK.
Figure 1: Unemployment rate in UK
(Source: Møller., 2019)
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Figure 2: Unemployment rate in France
(Source: d’Albis et al., 2019)
In recent times, access to finance is acting as a major upheaval in the path of SME’s
to contribute to the economy of UK. Access to supply of credit is another challenge
faced by SME’s in UK. This could have a lingering result on the attitudes of the
entrepreneur’s borrowing policy. The results will be worse for United Kingdom if the
current condition prevails because it will close the entry point of many new ventures
and will eliminate numerous job opportunities and wealth generation.
SME’s also plays an effective role behind boosting world economy. They ignite the
competition among the competitors in a market, which act as beneficial for a
consumer. Apart from that, SME’s acts as a repellent against recession because
they bring into the idea of adaptation and innovation as per the circumstances. Asian
countries like Korea, Taiwan and Japan have encountered an immense economic
growth as approximately 99% of their total business ventures consists of SME’s
(Pradhan et al., 2015). In maximum of the developing and developed countries,
SME’s improved over 90% of the employment rate. In this dynamic business
scenario, when established and big industries are cutting down jobs to lower their
production cost, SME’s are developing and creating numerous job opportunities for
the unemployed population.
Therefore, it is pretty much visible that SME’s are quite beneficial for a country. They
help a country to maintain a healthy employment rate and stay away from the path of
recession. However, political instability and stringent rules and regulations by the
government of a nation can withheld the growth and development of SME’s.
P4 Explain the importance of small businesses and business starts-ups to the
growth of social economy
The following section of the study deals with ‘Social Economy’ and ‘Social
Enterprise’. It also introduces ‘Corporate Social Responsibilities’ and its
significance. The concern of SME’s in advancement of ‘Social Economy’ is also
bisected in the following section.
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Social Economy
The economy constructed by the rich diversity of various entities and companies,
such as mutual, foundations, praetorian institutions, cooperatives, associations and
social enterprises, carrying shared values and features are known as social
economy (Quarter et al., 2017). These features include:
 Spontaneous and open membership
 Combination of activity between members/users
 Certain protocols of solidarity and responsibility
 Independent public authorities and autonomous management
 Democratic governance
 Reinvestment of maximum amount of profits in R&D to attain sustainability or
to cater to the needs of the members of the organization
Social Enterprise
The organizations that applies distinct commercial strategies to enhance their social,
financial and environmental well-being are known as Social Enterprise. Social
enterprises can be divided into two parts based on the goal of the organization.
These are for profit and non-profit organizations and they can exist in the form of a
social business,mutual organization,a charity organization,a community interest
company, a cooperative,a benefit corporation, a disregarded entityor a company
bounded by guarantee (Ridley-Duff and Bull, 2015). A social enterprise consists of
two distinct set of goals, namely business goals and social goals.
Corporate Social Responsibility
The activity or responsibility of firm that relates to a type of international private
business self-regulation, is known as Corporate Social Responsibilities (Unit, 2015).
CSR can also be recognised as internal organizational policy and even a corporate
ethic strategy.
The importance of SME’s in growth of ‘Social Economy’
 SME’s heat up the competition among the peers in the market, which acts a
win-win situation for the buyer and the consumer.
 SME sector tends to generate employment at low capital expenditure.
 SME’s share an inter-personal relationship with the economic development of
a country because development in a nation’s economy initiate to the formation
of more SME’s, whereas, formation of more SME’s enhances the economic
development of a nation (Love and Roper, 2015).
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LO3
P5 Determine the characteristic traits and skills of successful entrepreneurs
that differentiate them from other business managers.
The following section of the study deals various characteristics traits that should be
incurred by an individual to be a fruitful entrepreneur. The efficient skills of becoming
successful entrepreneur are also discussed in the study. Apart from that, the
following section also states the difference between the traits of a successful
entrepreneur compared to that of other business managers.
The traits of an individual that forms the personality of that particular individual is
regarded as ‘personal characteristics’ of that individual. For instance, the primary
traits that recruiters look for in an efficient employee are dependability and patience
(Kozubíková et al., 2015). Whereas, the ability to carry out a particular task within a
stipulated amount of time and by investing a certain amount of allocated energy to
bring out the desired outcome, is recognised as a ‘skill’. Generally, skills can be
sub-divided into two parts these are domain-general skills and domain-specific skills
(Obschonka et al., 2017).
A successful entrepreneur posses’ various skill. The most common skills of an
entrepreneur are as follows:
 Motivation: The primary trait that should be possessed by a successful
entrepreneur is that he/she should be highly motivated. The primary key to
maintain a high order of motivation is to turn up to work every day and with a
positive attitude. This also act as a motivator in case of the employees of a
business.
 Persuasiveness: This is also regarded as one of the most important traits of
a successful entrepreneur. The trait of being persuasive allows a successful
entrepreneur to be a better negotiator. This acts as a competitive advantage
for the venture during a plum assignment or promotion (Chen and Thompson,
2016).
 Need for achievement: This refers to the desire of an individual to achieve a
particular accomplishment, control, mastering of skills or high standards
within a certain period. An entrepreneur should keep a constant focus upon
his/her goal to drive the entire workforce towards achieving it.
 Openness to change: In the current dynamic business scenario, every
entrepreneur should be adaptive in nature. The consumers needs are
becoming more and more customized and personalized in nature. Hence, it is
on the part of the entrepreneur to adapt with this situation and put much effort
on the Research and Development of their offering to make their customers
remain inclined towards their products or services (Kriegaret al., 2017.).
 Self-Confidence:The concept of an individual’s self-assurance on his/her
ability, personal judgement, power and others are regarded as self-
confidence of that person. A successful entrepreneur should always carry a
strong confidence skill and efficient argument about his/her thoughts in order
drive the entire workforce towards organisational goals.
The most common skills of a successful entrepreneur are as follows:
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 Communication Skills: This set of skill is regarded as the most common
skills that should be possessed by an individual to become a successful
entrepreneur. An effective set of communication skill allows an entrepreneur
to convey the goals of an organisation to the employees significantly (Singh
and Singh, 2018). This reduces the chances of any mishaps within the
business operation system of an organisation.
 Problem-Solving Skills: An organisation consist of several employees,
which means there is essential composition of several minds. Distinct minds
produce distinct thoughts and there arises the existence of conflicts. Hence,
it is on the part of the entrepreneur to solve these conflicts within a minimal
amount of time.
 Technical Skills:A successful entrepreneur should be adaptive in nature
to incur new technologies within the business operation to cater to the
refurbished needs of the customers. Hence, the entrepreneur should carry a
sufficient amount of technical skills in order to meet these needs (Elert et al.,
2017).
 Human Relation Skills: The human capital within an organisation is
regarded as the most important and vital capital. Therefore, a successful
manager should carry an efficient amount of skills related to man
management so that he/she can efficiently manage the employees in order
to bring the best out them.
When it comes to successful entrepreneurs, one of the most successful
entrepreneurs in the history of business scenario is Jamshetji Nusserwanji Tata
(Akita, 2018). He is still regarded as the “Father of Indian Industry”. Unlike other
industrialist of his time, he primarily believed in values, adapting new technologies
and research. Apart from that, the person has highly motivated towards his goal and
carried a never give up attitude. This acted as a pillar behind the formation of TATA
Group, which is still now running successfully all over the world (Tiwari, 2016).
The following section of the study includes various set of skills and characteristics
that should be incurred by aperson in order to be a fruitful entrepreneur. Apart from
that, the above section also consists of a brief discussion about the traits of
Jamshetji Tata, who led the foundation of TATA Group.
P6 Assess how aspects of the entrepreneurial aspect’s personality reflect
entrepreneurial motivation and mindset
The following section of the study lays much focus on mindset and situational
analysis of a successful entrepreneur. Apart from that, the assessment of various
factors affecting the mindset and situational decision of a successful entrepreneur is
also discussed in the study.
A mindset of a person is regarded as the collective set of notations, methods or
assumption of a that particular person. The overall view or the philosophy of that
particular person towards life is also recognised as the mind set of that particular
person.
The mindset of a successful entrepreneur consists of the following factors:
 Wanting more than money: The primary mindset of a successful
entrepreneur should not only be focusing on the annual turnover of the
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venture. A successful entrepreneur should lay much focus on catering to a
certain need of the population, which will earn the person an efficient amount
of respect and money both.
 Positive thought: A entrepreneur should always carry a positive attitude or a
positive thought on his/her mind about a newly set up venture. This acts as a
motivator for the employees of the firm and in turn boost the productivity of the
organisation.
 Not missing opportunities: A successful entrepreneur never misses out an
opportunity, which enable the individual to flourish his/her venture. This is
regarded as the primary mindset of a successful entrepreneur as it is directly
proportional to the sustainability of the venture (Necket al., 2016).
 Staying motivated: This allows a successful entrepreneur to gain confidence
about the decision taken by him/her. Moreover, staying motivated allows an
entrepreneur to successfully flourish the venture by taking bold steps. Apart
from that, staying motivated enables an entrepreneur to keep a steady focus
upon the venture.
The general situational factors affecting the mindset of a successful entrepreneur are
as follows:
 Unemployment: This is one of the primary factors behind opting for a
venture. It is viable that the number of graduates in UK are raising every year
but there is no increase in the availability of jobs. This is the primary reason
behind people opting for new ventures rather than getting into a boring job
life.
 Access to resources: It is sometimes seen that an entrepreneur belongs to
family, who have an access to an efficient amount of resource. Education
plays a big role in this scenario because it enables the particular person to
recognise the resource and use it subsequently in starting a new venture.
 Entrepreneurial Education: In modern times, there is presence of numerous
management institute in UK. These institute plays an immense role behind
curving the young minds full of ideas into an efficient mind of an
entrepreneur. The primary focus of these institutes is making their students
prepared for a new venture rather than placing them under any big brand
(Dellet al., 2017).
 Family Upbringing: This plays a very important role in curving the mindset
of a fruitful entrepreneur. An individual belonging to a business family tends
to have an interest in opting for a venture compared to that of the children
belonging to family of corporates.
The above section of the study bisected the mindset of a successful entrepreneur.
Moreover, situational factors affecting the mindset of a successful entrepreneur is
also discussed in the study.
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