A Review of UK Entrepreneurial Ventures: Typology, Economy, and Traits

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ENTREPRENEURSHIP AND SMALL BUSINESS
MANAGEMENT
Name of the Student
Name of the University
Author Note

Executive Summary:
An attempt has been made to review various entrepreneurial venture that are carried
out in UK through this report. The report has been divided and categorised into seven broad
segments. Each segment consists of unique topic and each of them are described briefly. In
the report, it is discussed about the various types of entrepreneurship and differences and
similarities among them. The typology, impacts on economy and their characteristics has also
been discussed in the report. Apart from these, discussion has also been made regarding small
and microbusiness and their impacts in the economy of UK. The impacts and needs of small
and micro business firms, and how they are essential to the economy has also been discussed.
After going through the entire report, it can be hope that one can get substantial knowledge
about the entrepreneurship business, their work flow, the mind set of an entrepreneur and also
several other things that impacts entrepreneurial venture and business in the economy.
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Table of Contents
P1. Examine different types of entrepreneurial ventures and explain how they re-late to the
typology of entrepreneurship.....................................................................................................3
P2.Explore the similarities and differences between entrepreneurial ventures..........................5
P3. Interpret and assess relevant data and statistics to illustrate how micro and small
businesses impact on the economy............................................................................................6
P4.Explain the importance of small businesses and business start-ups to the growth of the
social economy...........................................................................................................................7
P5. Determine and analyse the characteristic traits, skills and motivational drivers of
successful entrepreneurs that differentiate them from other business managers, supported by
specific examples.....................................................................................................................8
P6.Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mind-set.............................................................................................................................10
P7. Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship.......................................................................................................................11
Conclusion................................................................................................................................12
References:...............................................................................................................................14
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Introduction:
The term Entrepreneur refers to those people or individual who usually starts and runs
his own business with the help of proper planning and very limited resources and also takes
the opportunities and risks of making profit and loss from the business respectively on their
own (Amato et al. 2017, p.27). The idea of any entrepreneur is to deal with or to create new
products and services by making a new business model rather than working on existing ones.
In these entrepreneurial ventures, the risk and opportunity of getting loss and returns
respectively are very high and uncertain. In this project, focus is given over various types of
entrepreneurial ventures and their impacts over the economy as a whole. It is also discussed
the needs and importance of entrepreneurs in the economy and society as a whole and how it
impacts in the overall growth of a country.
P1. Examine different types of entrepreneurial ventures and explain how they re-late to
the typology of entrepreneurship
Every entrepreneur and their ventures are not the same. According to Steve Blank the
entrepreneurship and their ventures can be classified broadly into four major categories.
These are described below.
Small Business Entrepreneurship: These can be defined as those entrepreneurs runs their
business on their own by borrowing funds from their family, friends or very small business
loan. The main objective of these types of entrepreneurial ventures is to cater the needs of a
society by providing them essential products and services for their day to day life such as
grocery products, consultation services, e-commerce services, electricians, plumbers,
carpenter services, etc (Volery and Mazzarol 2015, p.374). The objective of these
entrepreneurs is to make nominal profit for feeding their family and neither have they looked
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forward to take over an industry. Thus these entrepreneurial ventures are barely profitable. In
UK, 99% of the companies are small business entrepreneurship and the employs about 50%
of the non-governmental employees.
Scalable Start-up Entrepreneurship: A Scalable start-up is such a business where
entrepreneurs search for a new idea and also a business model that it repetitive in nature. This
in future turns into a growing and highly profitable company. The vision of these
entrepreneurs is to change the world and to take over an industry. As stated by Picken (2017,
p.587), the investors of these types of venture are required to bring huge capital and they
search for business model which are of scalable and repetitive in nature to invest into.
Large Company Entrepreneurship: This is a type of entrepreneurship which develops new
opportunities and ideas within a large business or company already established. This in turn
directly leads to the profit of the company or business. They always have a certain life cycle
and almost every entrepreneurial venture of this type grows by serving new products and
services and sustainable innovations (Kuratko and Morris 2018, p.42). Various external
factors like laws, consumer’s choice, technologies, etc. creates pressure over these business
and which forces them to produce new and unique products in the market for their survival.
Social Entrepreneurship: From the name it can be realised that the entrepreneurship which
focuses on creating products and services to cater the needs of a person’s social needs and
issues are called social entrepreneurship (Dees 2017, p.34). These entrepreneurships aim to
make the world a better place and not to earn profit or to take over an industry. These may be
profitable, non-profitable or hybrid businesses.
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P2.Explore the similarities and differences between entrepreneurial ventures
Although the similarities among the various types of entrepreneurs and their ventures
are almost same but there exist various differences in the types of entrepreneurial ventures
discussed above. Taking the similarities into consideration, it can be said that each of the
entrepreneurial ventures are aimed to make profit and to grow their business over the period
of time. Business expansion and market penetration is the most common similarity applicable
to each and every entrepreneurship style and type (Drover et al. 2017, p.1820). Now
considering the differences amongst them it can be said that there exist several differences in
between them. Firstly taking the ownership into consideration, it can be said that in start-up
business the proprietor is the sole owner. Similarly in scalable business, the promoter is the
owner. But in case of companies and social entrepreneurship, ownership lies with the
shareholders of the company and trust respectively. Secondly, the amount of capital required
is very small in small businesses and can be funded by the proprietor itself. Similarly, in
scalable start-ups, the promoter borrows loans from banks. On the other hand in case of large
companies, fund is raised through share capital of the shareholders and for the social
entrepreneurship; it is funded by various charities and also by the governments.
Economicmotive is another factor to be considered under the difference among the various
types of entrepreneurial ventures. For small business, their motive is to cater the need of their
family; scalable start-up business initially starts to operate in local area but gradually expands
their business and thereby contributes towards the overall economic growth to some extent
(Brown et al. 2018, p.169). Large companies on the other hand plays crucial role towards the
economic growth of the country. Similarly social entrepreneurs develop the society by
serving the social needs of the people and hence help to maintain a good environment in the
economy.
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P3. Interpret and assess relevant data and statistics to illustrate how micro and small
businesses impact on the economy
Micro businesses are those businesses that are very small in nature and operatewithin
a certain area. These business have very few employees in operation of around 7-8 or even
less and are self-financed and generates a very low turnover during the year of around
$250,000 or less than that. In micro businesses it can be found that being a sub-category of a
small business, sometimes it can develop and expand itself leading to a variety of industry
which is larger than its original foundation (Bruhn et al. 2018, p.635). These businesses
includes catering services, service providers, child healthcare, photography services, event
management in small scale, cleaning services, etc. On the other hand, small businesses are
those that are a bit larger in term of both scale and profitability or turnover than a micro
enterprise or business. These business are owned individually and independently and requires
a small capital of around $1,00,000. The numbers of employees working in these business
lies around 20-25 and their sales turnover in not more than $5,00,000. These business
includes medical shops, grocery stores, small bakeries and small unit of manufacturing
products. As per Testa et al. (2016, p.373), it can be found that around 95% of all the
business comprises of small business.
The impacts of the small and micro businesses on the economy:
 The first and foremost point that surprises is that in UK the micro and small business
have generated a turnover of £2.0 trillion in the year 2018 collectively (Flynn et al.
2015, p.443). These businesses are producing high revenue and contributing largely to
the overall growth of the economy.
 The SMEs are also creating large numbers of employment opportunities for the
people of UK. As new business is opening, it is creating employment opportunities
and in turn a healthy competition is created in the market. These leads to innovation
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of new products and services and that to in an affordable and reasonable price. 60% of
all the private sector employees are employed in SMEs. Thus this is ensuring
employment generation the economy and thereby reducing the poverty rate in the
country.
 SMEs are now expanding their business and searching for business growth in the
market. Innovation in new products and technologies are supporting them and rate of
production has also been increased (Cowling et al. 2015, p.488). The manufacturing
concerns in UK have been reported as the most rapid growers in the market with a
growth rate of around 32%. This in turn is helping the overall economy of the country
to grow and expand leading to establishment of more and more large industries
generating larger revenues.
P4.Explain the importance of small businesses and business start-ups to the growth of
the social economy
Small business and start-up businesses help the society and the economy by bringing
in innovation and growth in the community or area where they are set up. It provides
employment opportunities for the local people and helps them earn for feeding their family
and hence helping the society to develop. New business or start-ups are always very
important for the society as it provide them an opportunity to get employment in the
production of goods and services in the local area and hence help them to grow (Kulikova et
al. 2016, p.74). In rural areas, small business and start-ups helps in lifting the economy
upwards by the production of necessary goods and services and thus generating revenues
which in turn develops the standard of living of the place and also contributes towards the
economy of the country as a whole. Secondly, a new business or a start-up business always
has an idea of creating something new. Thus new innovation of some unique products not
only helps the business to grow but also helps in the uplifting of the society. Again,
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establishment of a new business or start-up in a society ensure engagement of worker and as
the people of backward classes or of disadvantaged group are also employed in such firms or
organization. As per Lindh and Thorgren 2016, p.313), thus it creates a healthy social
environment among the workers and in the business as well. Moreover, as new innovation
takes place, it also at the same time ensures a number of diversified and substituent products.
Thus if the production of any products is stopped due to any reason, the society will not
suffer. Product diversification ensures long term employment and reduction of lean period for
the workers. A feeling of employment security can be created amongst the employees.
Therefore, it can be observed that through establishment of new businesses and start-ups in a
society, the overall improvement of the society along with overall economic growth of the
country can be achieved.
P5. Determine and analyse the characteristic traits, skills and motivational drivers of
successful entrepreneurs that differentiate them from other business managers,
supported by specific examples
Any type of mind set which orients the thinking and conducts of an individual
towards the activities that are related to entrepreneurship or any entrepreneurial outcomes can
be termed as Entrepreneurial Mind-set. This type of individuals or persons always tries to
find new opportunities and tends to innovate something new or unique (Farhangmehr et al.
2016, p.868). Creation of new values and innovating new products and services for the
consumers is their passion and they do not look out for repetitive jobs which make them
difference from others. They take the risk factors into consideration and often get rewarded
for that in terms of success. There are certain characteristic which an entrepreneur should
possess which makes him different from others.
Ownership: An entrepreneur is the owner of his business and the internal locus of an
entrepreneur must be high. This ensures their self-confidence and faith in determining the
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path to success. For example, an entrepreneur must treat the employees as family members
and must spend time with them in understanding their needs and problems.
Leadership: A quality entrepreneur must possess leadership qualities in order to guide,
motivate and to support his team in the right path and in an appropriate way. It is also very
much essential for an entrepreneur to share his vision and mission with his co-workers or
subordinates so that objective can be clear to all. As per Cardon and Kirk (2015, p.1027), this
in turn will help in reaching the desired goal in time and as planned.
Curiosity: One of the common characters found in almost every entrepreneur is curiosity to
know or to do something. The mind of a successful entrepreneur is always active and eager to
gain knowledge.
Commitment: An entrepreneur must keep his commitment each time. As he shall have
passion for his business for doing something unique, at the same time it is also very essential
to keep commitments and being committed to work for an entrepreneur. This will help an
entrepreneur to withstand every rejections and failures as it is the part of every business and
start-ups.
Optimistic: A successful entrepreneur must be optimistic in nature. He must hold his nerves
and calm despite of facing rejections, challenges and failures (Maresch et al. 2016, p.172).
Every rejections and failure must be takes as an opportunity to learn something new that is
when an entrepreneur becomes successful.
There are various points on the basis of which an entrepreneur can be distinguished from
a manager, they are:
 An entrepreneurs works for himself and for the society or economy at the same time
and has to take financial risks whereas a manager works for the remuneration and
does not be a part of financial risk or loss
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 The primary focus of an entrepreneur is expansion of the business where as a manager
aims to run the daily business activities smoothly and do not bear the sense of
ownership.
 The entrepreneur gets his motivation from his success and achievements whereas a
manager gets motivated to work more on getting powers and promotions or positions.
 A manager is always formal in approaching any issues where as a entrepreneur can be
casual or formal in his approach to address an issue.
 An entrepreneur’s reward is the revenue earned from the organization whereas for a
manager it’s the salary or remuneration that he draws every month.
These are the few things that make a huge difference among an entrepreneur and a
manger and the reason of success for every entrepreneur.
P6.Assess how aspects of the entrepreneurial personality reflect entrepreneurial
motivation and mind-set
Passion is the most important and a must have characteristics for every successful
entrepreneurs. The mind set of an entrepreneur is always to search for new opportunity, gain
knowledge, explore, etc. An entrepreneur always hasexceptional strong needs for achieving
something. He must always be committed to his work and shall not give up in the half way
mark on facing challenges or rejections (Obschonka et al. 2017, p.487). This ensures better
understanding by the customers and hence improves the business to grow well. Apart from
these, an entrepreneur must also maintain good, cooperative and cheerful relation with his
employees and customers. These ensure a strong bonding amongst them.
The theory of OCEAN model is also very similar to the characteristics of a successful
entrepreneur. It states the following:
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OCEAN stands for Openness, Conscientiousness, Extraversion, Agreeableness and
Neuroticism. Openness features insight and high imagination levels. Entrepreneurs have high
openness that ensures them to be creative, trying out new opportunities, handling challenges,
etc. Conscientiousness means objective oriented, thoughtfulness, good control over impulse,
etc. High conscientiousness ensures a good indication for an entrepreneur. Extraversion
stands for excitements, sociability, talkative, aggressiveness, etc. People having high level of
extraversion have high possibilities of an entrepreneur (Amato et al. 2017). A successful
entrepreneur has high levels of extraversion. Another important factor that all entrepreneurs
shall possess is agreeableness which implies trust, kindness, affection, etc. This makes an
entrepreneur to care about others peoples, helping or assisting others, etc. Neuroticism is the
last character for an entrepreneur to possess. Unlike all the other characters, the neuroticism
is the one character whose intensity in an entrepreneur must be low (Christmann et al. 2016,
p.137). Low neuroticism indicated stable emotional mind, do not feel sad or depressed, keep
calm and deals with stress and pressure easily and well.
P7. Examine, using relevant examples, how background and experience can hinder or
foster entrepreneurship
In this segment an entrepreneur has been categorised into 3 types Local, international
and social entrepreneurs. Local Entrepreneurs are those who runs their business in a small
locality and cater the needs of the customer residing at that particular place. For example
grocery shops, medicine shops, electricians, etc. International Entrepreneursare the ones
who deals in the international markets and they trade internationally. The goods and services
of these entrepreneurial ventures are not limited to a particular place or society they are
traded worldwide. According to Neville et al. (2018, p.424), Big Firms, MNCs are few
examples of international entrepreneurs. While Social Entrepreneurs are the ones who take
care of the people’s social needs and solve their issues. Social entrepreneurs do not operate
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