Analysis of Entrepreneurial Ventures in the UK Economy

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ENTREPRENEURSHIP AND SMALL
BUSINESS MANAGEMENT
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Table of Contents
LIST OF FIGURES.......................................................................................................................3
INTRODUCTION........................................................................................................................4
Part 1........................................................................................................................................5
LO1 WRITTEN REPORT..............................................................................................................5
1. Various types of Entrepreneurial Ventures in context with the Entrepreneurship
typologies............................................................................................................................. 5
2. To determine the differences and similarities between serial entrepreneurs,
intrapreneurs and owner managers.....................................................................................6
3. To demonstrate various entrepreneurial ventures in context with public and
corporate sectors................................................................................................................. 8
4. The scope and growth of entrepreneurial ventures......................................................9
Part 2...................................................................................................................................... 11
LO2......................................................................................................................................... 11
1. The impact of small and micro business in the UK economy and to interpret the
relevant data for the same.................................................................................................11
2. The contribution from small business and business start-ups in the growth and
development of social economy........................................................................................ 12
3. The evaluation and analysis of the difference between small, medium, and large
business with reference to the local, regional and national level of the economy............13
Part 3...................................................................................................................................... 15
LO3 & LO4.............................................................................................................................. 15
1. The Features traits and skills of Alan Sugar.................................................................15
2. The analysis of the entrepreneurial personality of Richard Branson that reflects the
entrepreneurial motivation and mindset with the help of his entrepreneurial Features...16
3. The analysis of traits, skills and motivational drivers of successful entrepreneurs.....17
4. The evaluation of different environments that foster or hinder entrepreneurship....18
CONCLUSION.......................................................................................................................... 20
REFERENCES........................................................................................................................... 21
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LIST OF FIGURES
Figure 1 Growth of Private Sector Business in the UK............................................................13
Figure 2 Business share according to Business Size in the UK................................................14
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INTRODUCTION
In this report, it describes the in-depth understanding of entrepreneurship and
management of the small business which will help in contributing to building the
entrepreneurial abilities and the related skills. The most important person of every business
is the one who manages the activities of business i.e. the entrepreneur. The skills of the
entrepreneur impact the decision of managers in different types of business ventures is also
being discussed. In the further segments of this report, the emphasis will be laid upon the
differences and similarities, the growth and scope of such entrepreneurial ventures. Along
with this there will be a discussion on the impact of small business in the economy and the
small business start-ups developed the economy.
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Part 1
LO1 (WRITTEN REPORT)
Introduction
In this segment of the report, the investigation is being carried out on different venture
types that will affect the whole global economy.
1. Various types of Entrepreneurial Ventures in context with the
Entrepreneurship typologies
An individual who has some knowledge and abilities of leadership is termed as an
entrepreneur and also focuses on innovation to develop the new concepts in the business
operations. An entrepreneur holds the plan and executes the plan by taking all the risks of
capital investment for promoting the business operations in the competitive market so as to
generate the demand of products or services (Kirzner, 2015).
Entrepreneurship is the approach of generating ideas for the newly established business and
to manage the people in the business organization and make them understand the goals of
the business. It is the concept which drives the development in the business enterprise in a
positive manner (Kirzner, 2015).
Today, in every organization sector, entrepreneurs and related skills are the basic
requirements. An entrepreneur who has effective skills does not bind the business but also
influences the economy as a whole (Morris et al., 2018).
The typologies of entrepreneurship in the organization are described below:
Large business corporations: It consists of a continuous cycle which involves the growth and
development of the organization continues with the innovation of new products. Such
corporations always tend to have competitors and therefore to produce the innovative
products to merge in the on-going trends is very important for the organization, which is
carried by the efficient entrepreneurs (DeSantola and Gulati, 2017).
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Small Corporations: Startups in the UK has set the remarkable growth in the economy. This
has also generated 19.8% of employment opportunities. This corporation includes the
demographic superstores, consultancy firms, automobiles, etc. this is successfully operated
and managed by the entrepreneurs of the company (DeSantola and Gulati, 2017).
Scalable startups: This business has the objective to alter the existing business plan into the
innovating plan. Scalable is the term that deals with expanding the business capital and
investment through innovations (Morris et al., 2018).
Lifestyle Entrepreneurs: This entrepreneur is passionate and focuses on dealing with the
work they seek to do rather than focusing on generating the business profit (Morris et al.,
2018).
Social Entrepreneurs: Such entrepreneur aims to provide the solutions of the problems to
the local communities and the profits that are earned from such business are again invested
in the business organization for benefitting the people in the society (Morris et al., 2018).
Independent Entrepreneurs: Self-motivation is the primary key of these entrepreneurs i.e.
the business management and the business operations are controlled and monitored by the
entrepreneurs only. The decisions taken by the independent entrepreneurs can improve the
tasks that are performed by assigning the work to the workers available at the organization
(Morris et al., 2018).
2. To determine the differences and similarities between serial
entrepreneurs, intrapreneurs and owner managers
In the below table the differences among Intrapreneurs, serial entrepreneurs and owner-
managers are represented (Adachi and Hisada, 2017).
Serial Entrepreneurs Intrapreneurs Owner Managers
Definition They are the creator
of an enterprise who
takes the risk of
earning the profit.
They are the
employee of an
organization who is
authorized to
participate in taking
They are the
responsible
individual of an
enterprise who
controls and
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decisions for
developing
innovative products
and services.
manages the
business.
Risk Self-taken The organization
takes the risk
Involved as the risk
taker
Motive Earning profit by
developing
opportunities.
Earning rewards
based on skills and
abilities.
Promotion and
provide rewards to
the employees.
Status Business owner Employee Employee
Reward Earns profit Salary as well as
rewards.
Salary
Driving force Innovative and
creative ideas.
Helps in changing the
organizational
business structure.
Protects the
current situation.
In the following table the similarities of serial entrepreneurs, Intrapreneurs, as well as
Owner managers, are explained (Adachi and Hisada, 2017).
Intrapreneur and Entrepreneur Manager and Entrepreneur
Both require the strategy/objectives and
vision.
Both have the decision taking power.
Both have leadership skills. Both are well aware of the business plans.
They have the same process of strategizing
the plans, developing, evaluating, and
launching.
They are aware of the internal and
external environment that affects business
decisions.
Innovative opportunities are created. Managerial abilities.
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3. To demonstrate the various types of entrepreneurial ventures in context
with public and corporate sectors
Public sector enterprise is managed by the government thus the government has the
entrepreneurial skills. The required changes to be done in the organization the ideas of
government are required which are required to be executed. The people working in the
public sector enterprises are not entitled to the profit sharing of the business (Malerba et
al., 2015).
While in the corporate sector, the new ventures established with various innovations and
new product development changes the already developed business structure of the
organization. The entrepreneurial skills are required in every department of the organization
(Malerba et al., 2015).
On the basis of size, gender and ownership, the entrepreneurial ventures are classified
which is explained below:
On the basis of Ownership:
Private: The entrepreneurs along with individual or group of individuals establish a business
to earn the profit and manage the same. The main motive of this venture is to earn the
profit and improve the products or services which will help the business to attain the growth
(Malerba et al., 2015).
Public: The entrepreneurs of public ventures are government and thus the management
and control are in the hands of the government. The main aim of such a venture is to
benefit society and to avoid riskier activities (Malerba et al., 2015).
Voluntary: The entrepreneurs of such ventures are individuals or group of individuals who
voluntarily establish an organization for benefitting the public by providing the basic
facilities without aiming to earn the profit (Malerba et al., 2015).
On the basis of the size of the enterprise:
Small-Scale Business Enterprise: The business enterprises that employ less 10 employees
for generating the turnover is not more than £2 million are said to be the micro-enterprises.
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The small business enterprises have employees around 50 and tend to generate a turnover
of less than £10 million (Malerba et al., 2015).
Medium-Scale Enterprise: The medium-sized enterprise has 250 employees and they
generate a turnover of less than £50 million (Malerba et al., 2015).
Large-Scale Business Enterprise: large business enterprises employ more than 250
employees and generate a revenue of £50 million or more (Malerba et al., 2015).
On the basis of gender:
Men: In the men enterprises, the authority of controlling and managing lies in the hand of
male members who are also the entrepreneurs of the entity (Malerba et al., 2015).
Women: In the women enterprises, women hold either overall or 51% shares, so that the
authority of managing and directing the business activities lies in the hand of women
(Malerba et al., 2015).
All the classification made in the above segment clearly states that the enterprises that
belong to the public sector are not flexible towards the changes as the involvement of
government is there. But the corporate sector's enterprises as due to no involvement of
political factors take advantage of the changes and generate effective management cultures
(Malerba et al., 2015).
4. The scope and growth of entrepreneurial ventures
The skills of the entrepreneur are most required in every business. Due to the recent
recession, the objectives of such sectors have increased due to the new start-ups. The
investment is being done in new business and the youngsters are emphasizing on
entrepreneurial skills rather than focusing on the job (DeSantola and Gulati, 2017).
Entrepreneurship, managerial entrepreneur and intrapreneurship are the most important
element of every venture that is focused towards the innovation. As per the statistical
figures, the growth and scope of developing entrepreneurial ventures have increased. More
than 95% of small businesses were established during financial crises in the UK and let the
economy to attain the financial stability back. So it is expected that the enterprises of small
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scale will acquire the whole market by taking a competitive advantage (DeSantola and
Gulati, 2017).
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Part 2
LO2
1. The impact of small and micro business in the UK economy and to
interpret the relevant data for the same
After the recession in the economy of the UK, there is an increment of micro as well as small
scale business enterprises. Such companies require funds either at the time of business
newly established or in the mid-journey of the business. Small businesses can get around
50%-60% of the funds that are to be invested from the third party as loans for new startups
from the past 3 years. The reasons for taking funds are different like to establish or to
expand the business, to issue the capital or to acquire the assets (FSB, 2019).
During the recession in 2008, there were many technological changes and various financial
institutions lost their power of trustworthiness. So the banks started to provide mortgaged
loans to business enterprises. The loans were accessible easily online by the business start-
ups. So small enterprises business it became almost easier to acquire the loans for the
startups through online platforms.
Small business enterprises have generated many job opportunities which have increased
economic growth. Recently, 5.7 million private sectors are there which are categorized
under small business enterprises in the UK as per the report of 2018 and according to the
year 2000 report; it was only 3.5 million. Thus in precise, there is almost an increase of 63%
in the small business organizations (FSB, 2019).
Small business enterprises generate employment results in 60%. The total turnover of small
business enterprises was £2 million which includes private sector contribution is around
52% (FSB, 2019).
It has been disclosed that £195 billion was contributed by the small business in the growth
of the economy and it will increase by 11% till 2020. The growth of the UK economy will
enhance to £215 billion by the small scale business by the year 2020 (FSB, 2019).
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Figure 1 Growth of Private Sector Business in the UK
(Source: FSB, 2019)
There are some small business enterprises that have generated market competition in the
economy of the UK. London is said to be the main centre for establishing the small
enterprises and the contribution from these enterprises in the economic growth will
increase by the year 2020 to £164 billion which is about 76% in the economy of the UK(FSB,
2019).
Thus, small business enterprises contributed to economic growth by generating revenue
from the turnover of £2 trillion in the previous year. Microbusiness enterprises also
developed new innovations and skilled entrepreneurs and became an important part of the
UK (FSB, 2019).
2. The contribution from small business and business start-ups for
developing the social economy
Small business has played a vital role in the development of the social economy. The success
of such enterprises depends upon catering the needs of the demographic area such as cater
services, cyber cafes, stationeries, advisory firms, etc. in this way, the social economy
components made the development of private sector and public sector (Inspector, 2019).
Simon Woodroffe started the restaurant and became a well-known business entrepreneur
by rendering the eatable services. Henry John Heinz has become a famous entrepreneur by
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