Entrepreneurial Ventures of Small Businesses: A Comprehensive Analysis

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ENTREPRENEURSHIP AND SMALL BUSINESS
MANAGEMENT C1

Executive Summary
The following report is based on entrepreneurial ventures of small business, which has
considered the aspects of entrepreneurial ventures. This has presented an understanding with
respect to different entrepreneurial typology and the relevant typology. In addition to that, this
study evaluated the attributes of entrepreneurial small-scale ventures in the economies as well as
social economies of national, regional, and local levels. It has been known that growth of the
venture and an extended level of opportunities are the motivational drivers for the entrepreneurs,
which lead the persons to reach entrepreneurial success. Economic growths in terms of
employment rate, GDP, rate of interest have been enhanced with the assistance of small-scale
business. Different characters, behavioural traits, patterns of thinking, and skill sets of the
entrepreneurs have been evaluated in this report. This study has analysed that entrepreneurial
mindset and level of motivation of the entrepreneurs may have helped the entrepreneurs in
receiving higher level of success.
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Table of Contents
Introduction......................................................................................................................................5
LO1: Exploring the range of different ventures..............................................................................5
P1: Examining different types of ventures of entrepreneurship and relative typology...............5
P2: Similarities and differentiation among entrepreneurial ventures..........................................8
M1: Investigating diverse range of ventures of entrepreneurship for public and corporate
sectors..........................................................................................................................................9
D1: Critical evaluation of entrepreneurial scope, growth, and development............................10
LO2: Assessing effects of small businesses on economy..............................................................10
P3: Identifying and interpreting statistical data of impacts on economy...................................10
P4: Illustrating Significance of small businesses and start-up businesses to socio-economic
growth........................................................................................................................................12
M2: Differences among small, medium, and large-scale businesses relevant to the economy.13
D2: Impacts of small business on economy on local, regional and international levels...........15
LO3: Determining the key aspects of an entrepreneurial mindset................................................15
P5: Addressing characteristic traits and skills for entrepreneurial success...............................15
P6: Effects of entrepreneurial aspects to motivation and mindset of entrepreneurship............17
M3: Examining argument with respect to entrepreneurial characteristics................................18
D3: Analysis of characteristic traits, motivational drivers, and skills for entrepreneurial
success.......................................................................................................................................19
LO4: Different environments of fostering and hindering entrepreneurship..................................19
P7: Background and experiences to foster and hinder entrepreneurship...................................19
M4: Linking influence of personal experiences and background and entrepreneurial
characteristics............................................................................................................................20
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D4: Critical evaluation of influences of experiences and background on entrepreneurs..........21
Conclusion and recommendations.................................................................................................21
Reference.......................................................................................................................................23
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Introduction
Entrepreneurs have the aims of creating a new venture or new business, managing growth, and
taking risks in order to generate financial profit. This means that entrepreneurs have the purpose
of growth within a certain period. With the assistance of that, the entrepreneurs may have created
a value proposition for own business and/or the existing business organisation. In that case, it has
been known that small businesses are considered under start-up ventures. Entrepreneurs of the
small business majorly have the aim of increasing growth provisions. In addition to that, it has
been known that entrepreneurial ventures can be divided into different types. These have been
known as public sector entrepreneurship, corporate entrepreneurship, and individual
entrepreneurship. The current report is aiming at presenting the understanding with respect to
different entrepreneurial typology and the relevant typology. Apart from that, this study is going
to determine the impacts of entrepreneurial small-scale businesses in the economies as well as
social economies of national, regional, and local levels.
LO1: Exploring the range of different ventures
P1: Examining different types of ventures of entrepreneurship and relative typology
Entrepreneurship can be defined as the willingness of developing, organising, and managing
business venture and generating profit by taking risks. Along with that, Saebi et al. (2019) have
stated that entrepreneurship can be demonstrated as the transformation of the world by solving
critical issues.
On the other hand, an entrepreneur is the person, who has been aiming at creating a new business
venture with some innovative concepts and further manages the business and organises every
task and activity. On a brief, Saebi et al. (2019) have opined that an individual, who is aiming to
start a new business and further willing to take loss risks for making money. Therefore, it can be
said that the establishment of the entrepreneur’s ideas in terms of ventures is known as
entrepreneurship.
Typology of Entrepreneurship
Typology of entrepreneurship divides entrepreneurial ventures into different categories that
represent the types of business ventures. In this context, it has been known that commonly,
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entrepreneurial organisations can be segregated to four types. These have been identified as
follows:
● Small-scale business such as small stores
● Large-scale organisations are the multinational companies such as IBM
● Scalable start-ups such as cafe with medium-large funds in the aim of transforming the
business into a large organisation
● Social entrepreneurs are willing to change the lifestyles of people with low economies,
such as non-profit organisations
Entrepreneurship Sizes Financial Objectives Individual Risk Levels
Small-scale Businesses To meet the psychological
needs of own family
Higher risks
Large-scale Organisations ● To meet the
psychological needs of
the family
● To improve the social
standards of the
family
Lower risks
Scalable Start-ups To implement the vision
statement with a rich concept
Higher risks
Social Entrepreneurs ● To save the world
● To enhance the
standard of living of
Moderate risks
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every social
community
Table 1: Financial Objectives and Risk Levels of different Entrepreneurship Sizes
(Source: As Influenced by Bruhn et al. 2018)
At the other side, entrepreneurial ventures can be divided into three groups, which are known as
follows:
● Individual Entrepreneurship
● Public Sector Entrepreneurship
● Corporate Entrepreneurship
Individual entrepreneurship reflects that the entrepreneurship is carried by a person single-
handedly. In that case, the business venture may be continued independently based on the
individual’s property on ownership right. Furthermore, with this virtue of right is to provide
permission for using as well as disposal of the property.
Public sector entrepreneurship encompasses a whole combination of measures, which is adopted
and implemented by the national, regional, and local authorities for supporting the self-employed
entrepreneurs. With the assistance of that, the concerned entrepreneur may have started their own
business and supporting them through a developed network.
Corporate entrepreneurship has been known as the process of developing a new venture,
processes, services, or products inside an established business organisation. In accordance with
the statements of Janssen et al. (2018), it has been known that corporate entrepreneurship can
create a value proposition for the organisation and helps in enhancing the provision for
generating revenue for the respective company.
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In accordance with the types of entrepreneurial ventures, it can be said that the small scale
businesses are found in the forms of start-ups and new developments. Apart from that, individual
entrepreneurship can be presented in terms of small-scale businesses.
P2: Similarities and differentiation among entrepreneurial ventures
Entrepreneurial ventures have been found with three major types, which are as follows:
● Smaller Profit Venture
● Lifestyle Venture
● High Growth Venture
Similarities
Every type of entrepreneurial venture is willing to develop a new concept for business ventures.
In addition, at all levels, these ventures are willing to create a value proposition for the respective
person and/or the organisation. In that case, it can be said that the main aims of the
entrepreneurial ventures are to generate higher level of profit margin. New ideas, inventiveness,
openness, taking risks, and achieving greater success are the common aspects of every
entrepreneur, irrespective of the types.
Differences
Start-up ventures usually have higher growth, as these businesses have been known as fast-
paced ventures. As per the words of Pandey et al. (2017), it has been known that start-up
ventures focus on projects oriented to growth, rather than focusing on developing the sources of
employment income. An entrepreneur creates a start-up with the aim of fostering the growth for
the respective venture as fast as possible. In that case, it has been known that the entrepreneurs of
the start-up venture focus on the purpose of meeting the expectations of going public and selling
that venture within 3 to 7 years. The capitalisation of the venture is the major part of the
entrepreneurial plans. With the assistance of that, the entrepreneurs may have met the expected
profit margin for the business.
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Lifestyle ventures are focused on turning the corner as well as achieving higher level of
profitability as fast as possible. This reflects that lifestyle ventures are not focused so much on
the growth-oriented project as the start-up venture. Therefore, it can be said that financial
integration is the main aim of the lifestyle venture. In accordance with the words of The et al.
(2017), it has been known that the lifestyle entrepreneurs expect to generate a fair return amount
with respect to their investment.
In accordance with the above findings, it can be stated that entrepreneurial ventures are aiming at
creating an innovative business proposition. These analyses have helped to conclude that risk
levels and financial objectives of each entrepreneurial objectives are different. These have
assisted in understanding the fields of work, market exit process, and operation practices for the
respective business. In that case, it can be said that improvement in entrepreneurial research has
been inhibited in the lack of agreement about the aspects that help to continue with
entrepreneurial ventures. These ventures may have been shaped in accordance with managing
growth, survival, lifestyle, aggressive growth.
M1: Investigating diverse range of ventures of entrepreneurship for public and corporate
sectors
It has been known that the public sectors can be enlisted as properties of the regulating
government. In relation to this, Pandey et al. (2017) have stated that the public sectors provide
services oriented to the respective government. Therefore, it can be said that the public sectors
are enlisted in the stock market of the respective region. On the other hand, Corporate
entrepreneurship may have been demonstrated as the business, which is a division of economy.
This reflects that the corporate sectors are aiming at earning an extended level of profit margin.
In addition to that, corporate sectors are not occupied by the respective government, unlike the
public sectors.
In the case of public or corporate sectors, it has been seen that intrapreneurship exits, which leads
to creating a joint venture of a department of the respective organisation and outsourced
investors. This is because intrapreneurship creates opportunities for the outsourced shareholders
to be the parts of that concerned organisation. This is creating the provisions of increasing
financial infrastructure of the business along with financial independence of the shareholders. In
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relation to that, it can be said that intrapreneurship opportunities can help both the organisation
and the shareholder in increasing growth of them.
D1: Critical evaluation of entrepreneurial scope, growth, and development
Scope
Small-scale entrepreneurship provides adequate scope of growth for the entrepreneurial
activities. This means an entrepreneur may have achieved sufficient opportunities as well as and
vast scope for selling the services instead of products. In case of small businesses, it can be seen
that the entrepreneur may have helped the respective entrepreneurs to generate better results, as
the rate of hazards is low for small businesses.
Growth
In case of entrepreneurial ventures, it has been known that the ventures use to provide a larger
scale of impacts on the economic growth at local, national, and regional levels. It has been
known that the small business comes under the start-up entrepreneurship, which has the aim of
creating growth-related projects. Therefore, it can be said that the opportunities of growth for
entrepreneurial ventures, is higher.
Development
The whole concept of entrepreneurship development is oriented to enhance the number of
entrepreneurs and relative ventures. In that case, Davis et al. (2016) have stated that by
increasing numbers of entrepreneurs, the pace of new businesses can be made better. Therefore,
on a wider prospect, this may have created a room for improvement and employment for the
economy of respective business ventures and the country, as a whole.
LO2: Assessing effects of small businesses on economy
P3: Identifying and interpreting statistical data of impacts on economy
Micro business is a small scale business with almost $35,000 capital. This generally does not
have any facilities in any general avenues of business funds, such as, credit accounts of corporate
sectors or services of commercial banks. Small business is those that consist with five or less
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than that amount, employees. Small and micro scale business mainly serves in its local
community and thus it generates enough amounts of profits, for owner of company. As assessed
by Janssen et al. (2018), 76% of business are operated by single persons in UK and become the
cause of growth of economy in last 10 years. This also increases employment that includes self
employment as entrepreneur of small and micro business and also being employed in this several
small businesses. This provides UK with almost 4.0 % to 8% employment growth and almost
1.5% GDP growth rate in past 10 years (Pandey et al., 2017).
SMEs generally received comparatively lower level of revenue and also profit flow is also low,
as their market area is also very small. The business organisations that are corporate in nature are
not well suited with these small scale operations. Micro or small scale business mainly prefers to
do business on its own or in partnership with other. These benefice them by providing highest
form of managerial maintenance for their owner of company and it also minimizes expense in
business for registration. Therefore, SMEs have quite vital impact on economy of UK. That
includes:
● Most of the business employer (less than 10) is providing 33% employment, with 19%
turnover and this it provides almost 15.2 million jobs. These SMEs are increased up to 5
million compared to other scale of business. This help to produce huge amount of growth
in economy (He, Standen and Coetzer, 2017).
● Start- up business arte becoming a movement in society and this can be understand by the
increase rate of entrepreneurship all over the world (Janssen et al., 2018). Advanced
technology such as use of smart phone lasso make this possible in reality. This increases
percentage of home worker in UK.
● SMEs allow globalization in their business through internet. As stated by Saebi et al.
(2019), this enhances export and import business of UK and also of world. This is
because technology allow them to specialized their business and reduction in operational
cost. That does not create pressure on SMEs small amount of capital.
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Figure 1: SMEs effect on employment of UK
(Source: smallbusiness.co.uk, 2019)
P4: Illustrating Significance of small businesses and start-up businesses to socio-economic
growth
Social economy and Social enterprise, both are the component of social economy. This includes
co-operative sectors, credit unions, many small scale enterprises and low profit organisation.
Social economy implies a gathering for social meeting based on economic activities for
economic needs. Social economy of UK includes mainly four types of organisation that includes
co-operatives, mutual and voluntary organisations and the last one is foundation. In addition to
this social enterprises are the commercial level organisation with significant social activities. As
opined by Bruhn, Karlan and Schoar (2018), they are responsible for maximizing benefits to
their society with maximizing their profits. In other word it can be said that they are responsible
for corporate social responsibility (CSR). It is a business model that is regulated by individual
business that helps the company to be socially accountable. This helps them to be conscious
about their activity that should create positive impacts on society including its society social,
economic and environment. Therefore, all small scale business and start-up are responsible to
maintain CSR.
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