Analysis of Entrepreneurial Ventures in the UK Economy

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ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT

Table of Contents
INTRODUCTION........................................................................................................................2
LO1........................................................................................................................................... 3
LO2........................................................................................................................................... 7
LO3......................................................................................................................................... 10
LO4......................................................................................................................................... 14
CONCLUSION.......................................................................................................................... 17
REFERENCES........................................................................................................................... 18
1

INTRODUCTION
The report analyzed the definition of entrepreneurship and its related concept in the
business environment. Different types of entrepreneurial ventures which can be considered
by an entrepreneur are discussed in the report. Related similarities and differences between
different entrepreneurial ventures are examined in the report. Both public and private
sectors are analyzed for discussing the entrepreneurial ventures in these sectors. The report
analyzed the concept of micro, small and large enterprises of the United Kingdom. The
impact of small businesses is described in the report according to the data and statistics
available. The effect of small businesses on the social economy of the United Kingdom is
considered in the report. The personality analysis of an entrepreneur is made in the report
by discussing the characteristics of traits and motivational drivers. Various lines of
arguments related to the entrepreneurs are examined in the report. The impact of
experiences and background on the success or failure of an entrepreneur is discussed.
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LO1
DIFFERENT ENTREPRENEUR VENTURES WITH THEIR RELATION TO THE TOPOLOGY OF
ENTREPRENEURSHIP
An entrepreneur is an individual who starts the process of entrepreneurship by allocating
resources in new startup. He takes a substantial risk and enjoys rewards of the business
which are the result of the success of the business (Business Dictionary, 2019).
Entrepreneurship is the process of combining various resources, organize business venture
and take the risk in order to earn profits in the business (Business Dictionary, 2019). Various
entrepreneurship ventures that can be opted by an entrepreneur is discussed below:
Lifestyle venture
A lifestyle business venture is started with the purpose of improving and adding to the
lifestyle of the entrepreneur. The focus of the business is to enhance the current position of
the entrepreneur which work to create and sustain the particular level of income of the
entrepreneur. This type of business venture is generally started after the retirement of the
entrepreneur to earn extra profit from a business (Clark, 2018).
Small business venture
The small business venture is a business which aims to earn basic profit to survive in the
market which has a small number of employees working for it. Some of the examples of
small business ventures are as a sole proprietorship, partnership or privately owned
corporations (Payton, 2013).
High growth venture
The main aim of a high growth venture is to earn a maximum profit and high growth in a
minimum period of time. Products are developed, promotional and business strategies are
made in order to achieve profit and growth objectives. The small business which is designed
for the purpose of high growth and rapid profits are also known as high growth ventures
(Business Dictionary, 2019).
TOPOLOGY OF ENTREPRENEURSHIP
Independent entrepreneurship
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Independent entrepreneurship is a business where the entrepreneur face the success or
failure of the company independently. The purpose of starting Independent
entrepreneurship is to enjoy personal Independence in decision making, profits and other
activities of the business.
Corporate Entrepreneurship
Corporate Entrepreneurship is an activity of creating or adding more value to the products
and services of the company by making new innovations. The purpose of a corporate
entrepreneur is to generate new sources of income and profit for the business by providing
advanced products and services to the customers (May, 2019).
Public entrepreneurship
Public entrepreneurship is a business venture which is started by the local, regional and
national government with a purpose to serve the general public. These business venture
does not operate for making profits but to promote the general interest of the public.
SIMILARITIES AND DIFFERENCES BETWEEN ENTREPRENEURIAL VENTURES
Lifestyle venture Small business venture High growth venture
Similarities A lifestyle venture is
started with the
purpose of earning
profits and rewards
for the business.
Growth and
development is
another reason for
the business of a
lifestyle venture.
Small business ventures
have a purpose to earn
basic and normal
profits for ensuring its
survival in the market.
Success and
development is another
motive of a small
business venture which
will help in the business
to grow.
A high growth venture is
started by an
entrepreneur with a
motive to earn high
growth and profits
within a short period of
time.
The business of a high
growth venture aims at
achieving success which
operates by employing a
large number of
resources and capital.
Differences The lifestyle venture A small business A high growth firm is
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is the business
which has the main
purpose of achieving
a particular lifestyle
for its owner.
It expects to earn
profits and growth
within a short period
of time.
venture has a motive to
earn basic profits for
survival and employs a
relatively small number
of employees in its
business enterprise.
Unlike other business
venture, these small
businesses generally
allocate a small amount
of capital in their firm.
started mostly at the
retirement stage which
employs a huge amount
of capital and resources
in its business.
The main aim to earn
high growth and profits
within a short period of
time.
MULTIPLE RANGE OF ENTREPRENEURIAL VENTURES IN BOTH PUBLIC AND CORPORATE
SECTOR
Entrepreneurship in Public sector
The entrepreneurship which is started by one or the combining efforts of local, regional or
national government with a motive to serve the general public is known as Public sector
entrepreneurship. When the public and private sector enterprises join together with a non-
profit motive it is called entrepreneurship in the Public sector. Lifestyle and social ventures
are included in the public sector entrepreneurship because they do not have profit earning
as their main motive. Public roads, electricity department, water supply,
telecommunications, etc. are some of the examples of operations undertaken by a public
sector enterprise (Dhilwayo, 2017).
Entrepreneurship in the Corporate Sector
Corporate entrepreneurship is generally started with a motive to generate new
development and ideas in the form of products, services, and processes of the company.
This improvement in the method of production, products or services directly results in
increasing the company's profitability. Innovation and growth are achieved by the
entrepreneur with the help of corporate entrepreneurship (May, 2019). Small businesses
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and high growth venture are the examples of the corporate entrepreneurship which have
profit earning as their main motive by delivering quality products to the customers.
SCOPE, GROWTH, AND DEVELOPMENT OF ENTREPRENEURIAL VENTURES
There are many areas of business ventures that can be out by an entrepreneur for starting
his business. These options include the public sector, the private sector, service sector,
agricultural and allied industrial sector. Each area has its own scope and growth perspective
when compared with the other options. Entrepreneurship is very important for the growth
and development of the economy of a country. And the entrepreneurs are the main players
of the economy which promote various business ventures and help in the growth and
development of an economy.
Generally, a business firm is started as a small business venture with a motive to earn
normal and basic profit to ensure its survival. This firm has many growth options after
becoming successful. However, in a country like the United Kingdom, there are many
opportunities for growth and development of business ventures.
The development of various marketable innovations attracts many customers for the
company both in national and international markets. This has widened the scope of the
entrepreneurial ventures for their further growth and development. UK government
understands the importance of entrepreneurial ventures for the economy and thus it has
started many loan schemes for funding new business start-ups.
The modernization of society has increased many scopes and opened various opportunities
for entrepreneurs. These opportunities can be in the form of a new market, new customers,
new production methods or processes which reduces the company's cost of manufacturing
and maximizes the profits.
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LO2
ASSESSING RELEVANT DATA AND STATISTICS TO ILLUSTRATE IMPACT OF SMALL
BUSINESSES ON THE ECONOMY
The economy of the UK is developed with the help of its Small and micro businesses which
are considered as the backbone of the economy. In the year 2014, there were around 5.2
million businesses in the United Kingdom out of which 99 percent of businesses are small
and medium enterprises. This data of the number of SMEs in the UK was increased in the
year 2018, where the total number of businesses was increased from 5.2 million to 5.7
million whose 99 percent is still covered by the small and medium enterprises of UK.
A large part of the UK's economy is affected directly or indirectly by the small and medium
enterprises. The SMEs promotes growth in the economy by providing employment
opportunities to a large number of unemployed citizens of the country. According to the
Forum of Private Businesses, the SMEs of the UK is responsible for providing 15.2 million
jobs to the people of the United Kingdom. Small and medium enterprises have generated
half of the jobs of United Kingdom in a period between the year 2002 and 2008 according to
the Research by National Endowment for Science, Technology and the Arts published in
2009. This also found that around 6 percent of the small and medium enterprises of the UK
has earned high growth rates (Taylor, 2015).
The government of UK has spent around £725m in research and development for the small
and medium enterprises of the country because it understands the importance and need of
SMEs in the economy which promotes its overall growth and development.
DIFFERENCES BETWEEN SMALL, MEDIUM AND LARGE BUSINESSES TO THE ECONOMY
ACCORDING TO RELEVANT DATA AND STATISTICS
Small and medium enterprises of the UK are the enterprises which employ not more than
250 employees in their business. The small, micro and large enterprises of UK are defined in
the following para:
Micro-Businesses are the businesses which have not more than 10 employees in its
enterprises (Rhodes, 2018). The micro businesses contribute 21 percent of the turnover in
the economy of the UK. Also, the employment generated by such business enterprises is
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estimated at around 33 percent. They are considered as 76 percent of the total businesses
of the UK as per the estimate made for the year 2019.
Small Businesses employs not less than 10 employees and not more than 50 employees in
business enterprises. The small businesses of the UK have a turnover of not less than
€2million but below €10million annually.
Large Businesses are the businesses with more than 250 employees working for it and the
businesses which contribute 48 percent in the turnover and 40 percent in the employment
of the nation annually. There are around 8000 large businesses which have more than 250
employees in the year 2018. The annual turnover of such enterprises is not less than
€10million but less than €50million.
CRITICALLY EXAMINING IMPACT OF SMALL BUSINESSES IN LOCAL, REGIONAL AND
NATIONAL LEVEL
The small businesses of the UK largely affect its economy at local, regional and national level
which affect it both positively and negatively. With the increase in small business in the local
economy, there comes an increase in the number of jobs for local people. Generating new
job opportunities in the economy helps in decreasing the unemployment rate. The revenue
that the small businesses generate by earning profits helps the local government in earning
tax revenue which is again channelized into the economy to create a better business within
the community (Ingram, 2019). The taxes paid to the local government by small business
help it to make subsequent developments in society.
At the regional level, the government of the UK undertakes many regional programmes for
promoting small and medium-sized businesses. These programs help SMEs by providing
financial assistant which depend on their annual performances. In the year 2018, the small
businesses of UK employ around 239000 employees which help n eradication
unemployment issue at both local and regional level. Every year, the small and medium
enterprises of the UK provide around 63 percent of new jobs at the local, regional and
national level.
The government of the UK understands the importance of small businesses for the
economic growth of the country. Thus, different loan and pension schemes are introduced
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by the government to promote small and micro businesses of UK. The SMEs of the UK
played a vital role in bringing the economy out of recession by providing a job, promoting
prosperity and contributing to the growth and development of the society.
IMPORTANCE OF SMALL BUSINESSES AND BUSINESS START-UPS TO THE GROWTH OF
SOCIAL ECONOMY
Social economy of UK consists of non-profit organizations, corporate organizations, and
voluntary organizations which has the purpose of achieving mutual economic or social goals.
They are the combination of public and private businesses which has social objectives or the
motive of serving the society. Services associations and community enterprises, credit
unions, non-profit organizations, charity and foundations, Co-operatives, etc. are some of
the examples of organizations of a social economy. The importance of small businesses on
the social economy of the UK is explained as follows:
 Small businesses are considered a major source of innovation and inventiveness
which introduce new ideas for product development, improving services and create
new methods of production that also reduces the cost of the company.
 Employment is generated at large number by small businesses and new business
start-ups of the UK which help in eradicating the problem of unemployment in the
country.
 Small business encourages new entrepreneurs and builds up entrepreneurship
qualities which help in the growth and development of social economy.
 Small businesses resolve various community issues and adopt different philanthropic
activities to serve the social community of the country.
 The healthy competition generated by these businesses helps in boosting products
value and services offered to the customers which enhance the overall growth and
development of the social economy of the UK.
 Small business combine employees from different culture and religion which brings
harmony at the workplace as well as promote the feeling of togetherness and
brotherhood in the social economy of the country.
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LO3
THE CHARACTERISTICS TRAITS AND SKILLS OF SUCCESSFUL ENTREPRENEURS THAT
DIFFERENTIATE THEM FROM OTHER BUSINESS MANAGERS
There are various characteristics which define an entrepreneur out of which following are
some of the characteristics traits of a successful entrepreneur:
Passion
A successful entrepreneur pursues his passion forward in the form of his business which
helps to achieve success and growth in the business. Passion is something which does not
let the entrepreneur sleep and he works continuously for achieving his goals.
Independent thinking
A successful entrepreneur follows his own decisions and his belief in his own thinking. He,
not somebody who gets influenced by the thinking of others. Rather he makes people work
for him by following his thoughts and objectives (Duemyer, 2018).
Optimism
Even after facing failure in life, a successful entrepreneur never stops hoping for good in his
business. He is a dreamer and works hard to achieve unattainable goals and objectives to
become successful.
SKILLS OF SUCCESSFUL ENTREPRENEURS
Self-confidence
It is an essential skill of an entrepreneur who works confidently by motivating his followers
to work for him. Confidence is a very important skill of an entrepreneur which is reflected in
his decisions and decides his success or failure.
Vision
It is another skill of an entrepreneur where the vision act as a fuel for entrepreneurship
which drives him to get succeed. An entrepreneur knows his end goals and objective when
he starts his business along with the means of achieving that goal.
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Focus
The focus is a skill which differentiates between an entrepreneur and a successful
entrepreneur. The focus is very necessary for an entrepreneur to achieve success in his
business especially at the stage of start-up. A focused entrepreneur is responsible for the
success and growth of his business.
ASSESSING HOW ASPECTS OF THE ENTREPRENEURIAL PERSONALITY REFLECT
ENTREPRENEURIAL MOTIVATION AND MINDSET
Family background
Family background of an entrepreneur affects the mindset and motivation level which
determines his success or failure in the future. The family background of an entrepreneur
includes culture, status, mindset, and support of the family. There are relatively more
chances of becoming successful for an individual with a rich background because of the
resources available to him than with an individual who comes from a poor family. Hardships
and work level become easier for such a person with a richer family background which
relevantly affect his motivation level. A person who comes a family where the members are
broad mind will employ people according to their capabilities irrespective of their caste,
religion, and background.
Education
Education is a very essential element which effects the motivation level and mindset of an
entrepreneur in a various manner. A well-qualified entrepreneur can work more efficiently
than an unqualified and uneducated entrepreneur. However, it is not necessary that only
educated entrepreneur can achieve success in their life. For example, Richard Branson was
an average student who had faced a very hard time with educational institutions. But after
dropping out at the age of 16, he managed to become successful by launching Virgin records
(Brown, 2014). On the other hand, there are examples of entrepreneurs who managed to
get success with the help of their education. For example, Philips Green went to school at
Caramel College in Oxfordshire which helps him in making his business successful.
EXPLORING AND EXAMINING DIFFERENT LINES OF ARGUMENT RELATING TO
ENTREPRENEURIAL CHARACTERISTICS
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