Entrepreneurial Ventures and the UK Economy: A Comparative Analysis

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ENTREPRENEURSHIP AND SMALL
BUSINESS MANAGEMENT
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Table of Contents
INTRODUCTION............................................................................................................................. 4
TASK 1............................................................................................................................................ 5
1.1DIFFERENT TYPES OF ENTREPRENEURIAL VENTURES AND THEIR RELATION WITH THE
TYPOLOGY OF ENTREPRENEURSHIP...........................................................................................5
1.2THE SIMILARITIES AND DIFFERENCES BETWEEN ENTREPRENEURIAL VENTURES.................7
1.3INVESTIGATE A DIVERSE RANGE OF ENTREPRENEURIAL VENTURES TO DEMONSTRATE AN
UNDERSTANDING OF ENTREPRENEURSHIP IN BOTH PUBLIC AND CORPORATE SECTOR..........9
TASK 2.......................................................................................................................................... 10
2.1ASSESS RELEVANT DATA STATISTICS TO ILLUSTRATE HOW MICRO AND SMALL BUSINESSES
IMPACT ON ECONOMY............................................................................................................ 10
2.2THE IMPORTANCE OF SMALL BUSINESS AND STARTUP IN THE GROWTH OF THE ECONOMY
................................................................................................................................................. 12
2.3EVALUATE THE DIFFERENCES SMALL MEDIUM AND LARGE BUSINESSES MAKE TO THE
ECONOMY APPLYING RELEVANT DATA AND STATISTICS.........................................................13
TASK 3.......................................................................................................................................... 14
3.1THE CHARACTERISTIC TRAITS AND SKILLS OF SUCCESSFUL ENTREPRENEURS THAT
DIFFERENTIATE THEM FROM OTHER BUSINESS MANAGERS...................................................14
3.2HOW ASPECTS OF ENTREPRENEURIAL PERSONALITY REFLECT ENTREPRENEURIAL
MOTIVATION AND MINDSET................................................................................................... 16
3.3EXPLORE AND EXAMINE DIFFERENT LINES OF ARGUMENT RELATING TO
ENTREPRENEURIAL CHARACTERISTICS.................................................................................... 17
TASK 4.......................................................................................................................................... 18
4.1USING RELEVANT EXAMPLES EXPLAIN HOW BACKGROUND AND EXPERIENCE CAN HINDER
OR FOSTER ENTREPRENEURSHIP.............................................................................................18
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4.3ANALYZE THE LINK BETWEEN ENTREPRENEURIAL CHARACTERISTICS AND THE INFLUENCE
OF PERSONAL BACKGROUND AND EXPERIENCE TO SPECIFIC SUCCESSFUL ENTREPRENEURS.19
CONCLUSION............................................................................................................................... 20
REFERENCES.................................................................................................................................21
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INTRODUCTION
An entrepreneur can be defined as a person who was willing to set up a business with the
intention or purpose to earn a profit and achieve fair profit out of it. An entrepreneur takes
initiative, has innovative ideas and has certain skills to accomplish a task. In this world, there
are different countries and there are different people who are entrepreneurs. In the UK the
people are looking for different ways of investment or they want to become an entrepreneur
(Kantur, 2016).
In this report the different types of ventures are explained and how they are related to
typology. The report also gives information about the micro and small business and its impact
on the economy. The report includes different types of venture and startups and how these
startups help in the growth of the social economy. The report also discusses about the different
skills and traits that are required for a successful entrepreneur (Kantur, 2016).
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TASK 1
1.1DIFFERENT TYPES OF ENTREPRENEURIAL VENTURES AND THEIR
RELATION WITH THE TYPOLOGY OF ENTREPRENEURSHIP
The entrepreneurial venture can be of different types based on the choice and resources
available to start or take an initiative. The entrepreneurial ventures are of different types
mention below (Storey, 2016).
Small scale entrepreneurship: an enterprise or business which is carried by the 2-3 persons and
required less amount of capital is called a small scale business. This types of business usually
include a different shop, or service business, like a bakery, merchandise shop etc. the people
who do that usually manage their household from the savings of their business small scale
enterprises are usually managed and run by the entrepreneur who has little capital and
resources (Storey, 2016).
Scalable startups entrepreneurship: These types of business or entrepreneurship are
established with a motive to earn a profit and achieve business success. To have these types of
enterprise people arrange finance from different sources like finance corporations or investors
or person borrow money from someone. These types of ventures and scalable business require
different resources like finance, human resource, land etc. for this type of startup strategic and
tactical planning is done and different aspects have to be identified (Lande, et al., 2016).
Large scale enterprise: large scale enterprises are usually starting up from a small business and
then with their innovation and success, they grow into very large enterprises. These enterprises
have several thousand employees and these businesses corporate operated in different areas
of the world to earn a huge profit margin on its products and services. These large scale
industries can public or can be privates. These types of enterprises usually invest a large
amount of money is CSR activities and they also invest a large amount of finance in research
and development of their product and service in order to meet the needs of the customers.
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These types of enterprises usually have a complex business model and working style and these
types of business and organizations work at different levels (Lande, et al., 2016).
Social entrepreneurship: these types of enterprises are usually set up with the intentions to
help the community and solve their problems. These are nonprofit organizations which help
and provide different facilities to the society like hospitals, schools, education centre and they
provide different services like well in rural areas, medical aids at village areas. These
organizations work for the welfare of the community and society (Huda, et al., 2019).
Typology of entrepreneurship and its relation with a different entrepreneurial venture
Typology can be defined as a type or distribution of different types of entrepreneurship or
ventures. In this report, it is necessary to learn different types of typology in entrepreneurship
which is intrapreneurs and serial entrepreneurs (Rigtering, et al., 2019)
Intrapreneurs: intrapreneurs can be defined as a person that is hired by the company or by the
organization to provide creative ideas and innovation for the company in order to meet the
needs of the business or change in taste or preferences of the customers. Intrapreneur has
accesses to the organization's resources to use them in making different strategies and planning
for the growth (Rigtering, et al., 2019)
Serial entrepreneurs: a serial entrepreneur is a person who thinks creatively and innovatively
for the company or sells its idea and then moves on to another idea or innovation nowadays
companies are having a research and development department and companies are hiring
people with creative mind and ideas (Varaiya, 2017).
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1.2THE SIMILARITIES AND DIFFERENCES BETWEEN ENTREPRENEURIAL
VENTURES
There are different typologies and ventures as discussed earlier and what are their roles in the
growth of the organization. Now moving forward the report will discuss the similarities and
differences of the entrepreneurial ventures (Siqueira, et al., 2016).
Similarities associated with entrepreneurial ventures
Risk: risk is can be defined as negative aspects or unfavourable situation that occurs. A risk is
always associated with the entrepreneurs at a different level and at different situations of the
business (Siqueira, et al., 2016).
Aim: aim can be defined as an objective of a purpose toward which a company moves. All the
enterprises and startups whether small or large, are established for a particular aim. Aims are
usually the profit margins and growth of the company for a particular duration of time
(Siqueira, et al., 2016).
Understanding the market: the market can be defined as a place or group in which or for which
an enterprise operates a business. An understanding market is very important and very crucial
as it requires different skills and knowledge. A market can also be defined as a place where
buyers meet with the sellers (Siqueira, et al., 2016).
Innovation: innovation can be defined as an idea or creative thinking that can bring new
desired results. Now a day every company is investing and finding different new product and
services to meet the needs of the customer's innovation has become a very important part of
the business (Schmitz, et al., 2017).
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Differences in entrepreneurial ventures
Basis Small scale
entrepreneurship
Scalable startup
entrepreneurship
Large scale
entrepreneurship
In terms of
investments
Small scale
enterprises require
low investment and
earn low-profit
margins
It requires medium or
comparable large
finance and earns
profit accordingly
Large scale
organization needs a
large amount of
finance and capital
and earn a large profit
Scope Limited scope with no
innovation.
This types of
organizations usually
operate in a large
area
Enterprise operates in
different countries
objectives Organizations usually
concentrate on fair
profit margins to fulfil
day to day needs
This types of
organization bear
large risk to attain
large profit share that
can help in the
expansion
Large scale industries
take risks and
introduced different
product and services
to become a market
leader
Market share Small scale enterprise
works in a small area
(Schmitz, et al., 2017).
This types of an
organization have
more market share
These organizations
have different market
share in different
regions (Schmitz, et
al., 2017).
Economic
contribution
Very low contribution
to the development
of the economic
Contributes to the
economy in different
ways
High contribution of
with different CSR
activities
Provides
employment
These small scale
enterprises involve 2-
5 individuals
This types of
companies provide
employment to up to
300 people
These types of
organization are
usually generated
large employment
which could be more
than 1000 people
Risk involves Percentage of risk is
usually low as very
fewer resources are
used (Schmitz, et al.,
2017).
A high rate of risk
involves as high
because of the large
use of resources
Medium percentage
of risk involves as a
company is already
known and market
share is already high
(Schmitz, et al., 2017).
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1.3INVESTIGATE A DIVERSE RANGE OF ENTREPRENEURIAL VENTURES TO
DEMONSTRATE AN UNDERSTANDING OF ENTREPRENEURSHIP IN BOTH
PUBLIC AND CORPORATE SECTOR
There are different types of an entrepreneurial venture and all they are based on the size of the
business and resources. Entrepreneurship in different sectors is as follows
In the public sector: usually, the public sector organizations have to follow different norms of
the government as government-imposed different restrictions on their business. On the other
hand, the government also helps the public sector or large scale entrepreneurship in different
ways. Public sector organizations usually focus on profit earning and give less emphasis on
social welfare. Public sector organizations are usually large scale organisations and operate in
different regions and countries of the world. Public sectors organization also outsources their
works to private or small scale organization (Antony, et al., 2017).
In the corporate sector: corporate sectors organizations are usually run by private owner or
individuals. These types of organizations are also interfered by the government of a place.
These organizations usually share whole profits as do have stakeholders. At the corporate
level,, the entrepreneur set goal and objectives for the organization and prepare a guideline for
work. These corporate enterprises mainly focus on improving the quality of the product and
services in order to earn a profit. At the corporate level, several thousands of employees work
in different departments to achieve common goals. These corporate mainly includes large scale
organizations, scalable enterprises etc (Antony, et al., 2017).
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TASK 2
2.1ASSESS RELEVANT DATA STATISTICS TO ILLUSTRATE HOW MICRO AND
SMALL BUSINESSES IMPACT ON ECONOMY
Small and micro industries in the UK have dominated the market of the UK. As per analysis and
record, 95 % of the enterprises of the UK are privately owned business bodies. The continuously
growing ratio of the small scale industries in the UK has been the reason for the development
of the country. A growing ratio of the companies of the small business enterprise has raised the
per capita income and profit margins (Cowling, et al., 2015). It has been calculated that small
and medium scale business enterprises in the UK have registered in turnover of 2 trillion in
2018. Majority of the business holders in the UK are sole traders and entrepreneurs. The
government of the UK is also supporting a different individual who wants to become
entrepreneurs. The government of the UK is also providing different facilities and guidelines for
the business and its growth (Cowling, et al., 2015)
Figure 1: Growth of small and medium scale business
Source: (Cowling, et al., 2015)
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As it is observed from the data and statistics, that there is a growth in small and medium scale
business in the UK. The people of the UK have started their own business in the past few years.
As statistics show that in the year 2008 to 2011 the growth of the business was stable and very
slow but from 2012 to 2018 one can see the small and medium scale businesses grow rapidly.
The growth of the business has helped in the growth of the overall economy of the country
(Cowling, et al., 2015)
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2.2THE IMPORTANCE OF SMALL BUSINESS AND STARTUP IN THE GROWTH OF
THE ECONOMY
Small scale business has become a backbone for the UK and its economy. The small and
medium scale business has contributed much in the market of the UK and this has generated
thousands of jobs for the population. Earlier people of the UK were lacking the confidence to
starting up their own business but from recent years it is observed that the advancement in the
technology and availability of internet and smartphones has shown tremendous growth in the
small scale business. At present, there are over 16.3 million people who are indulging in small
scale business in the UK (Guerrero, et al., 2015).
The people of the UK are entrepreneurs and they are investing their resources in the innovation
process and doing research and development. The investors are finding different and feasible
business models that can give them sufficient profit margins. The growth of the small scale
businesses in the UK has improved the lives of the people of the country by providing them
different facilities and support like health care, finance and the businesses have improved the
living standards of the lower class people of the society. Small scale business can manufacture a
different product which are not required in the same country but can export them to in a
different country.The UK government is also supporting the people of the country in starting of
the business and generates opportunities for the people small enterprises or business if
operates effectively and gain proper profit margins than the same small business can grow into
large or corporate business (Guerrero, et al., 2015).
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