Entrepreneurship in the UK: Exploring Ventures, Impacts, and Mindsets

Desklib provides past papers and solved assignments for students. This report analyzes entrepreneurship and small business in the UK.

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Entrepreneurship and Small Business Management
Student’s Name:
University Name:
Author’s Note:

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Table of Contents
Introduction......................................................................................................................................3
LO1: Range of ventures considered as entrepreneurial (P1 & P2)..................................................3
LO2: Impact of Small business on economy (P3 & P4)..................................................................7
LO3: Key aspects of an entrepreneurial mindset (P5 & P6).........................................................10
LO4: Different environments that foster or hinder entrepreneurship (P7)....................................12
Conclusion.....................................................................................................................................14
References......................................................................................................................................15

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Introduction
The report is concentrated on the range of entrepreneurial ventures and businesses that make an
impact on the economic growth. It persuades the exploration of the proposed business in national
and local economy. While working for a consultancy firm in UK that provides advice and market
intelligence to small entrepreneurs, it is been approached to run a small business in London. The
advice may help the client, which could be feasible for the business or not. The report would be
identified by illustrating the diverse entrepreneurial ventures, such that growth, development and
scope could be developed. Further, with data and statistics, small businesses would be analysed
on how small and micro business affect the economy. While the key aspects of entrepreneurial
ventures will be identified, so that personality reflects mindset and motivation. Moreover, a good
contrast can be analysed, which will help to foster entrepreneurship with background examples
of successful British entrepreneurs.
LO1: Range of ventures considered as entrepreneurial (P1 & P2)
Different types of entrepreneurial ventures
Entrepreneurship is regarded as the procedure to launch, design and run a new business while an
entrepreneur is a person that sets up the business by taking the financial risks in generating
profit. Entrepreneurial ventures in common could be public and private, but this may be
categorised in many sub-divisions (Blackburn et al. 2013). At first, the public venture is
considered as the business or enterprise that public, or often the government manages. As the
government is an agent of ownership, people and public in the form of democratic nation, each
citizen might have interest in the government owned company. According to Henrekson and
Sanandaji (2014), it may not be limited to federal government but are owned locally, like the
municipal companies, known as the public enterprises. Here, the government has final say on
directors of enterprises to make the policy decisions count. However, any decisive profits may be
invested back, or they can go to the government itself.
From the opinion of Sahut and Peris-Ortiz (2014), a private enterprise could be the one that are
controlled by private citizens. It could be either anything from the sole ownership made to the

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publicly traded firms. Other than government, the owners here tend to choose board of directors
of private enterprise and the profits distributed among shareholders and owners. However, the
government has no such large impact while running the enterprise. Lastly, there are joint
ventures that need a large start-up capital but this may show short-term income. It is where the
government could invest a major capital to the private firm, and in return would use technology
in government applications and military.
How they relate to the typology of entrepreneurship
To analyse the typology of entrepreneurship, there could be 4 types, which includes the survival,
lifestyle, managed growth and aggressive growth ventures. According to Bridge and O'Neill
(2012), survival venture may not be officially registered, and has not assets or premises, which
operates on a cash basis. The lifestyle whereas offers a stable income for owners on maintenance
and business model. Here, the employee number remains consistent, and quite hard to attain
economies in operations. In case of managed growth venture, it seeks stable growth when
reflected on an occasional launch of a product (Olusegun, 2012). Finally, the aggressive growth
venture is technologically based by having a strong capability of innovation to seek exponential
growth. Below table is made to analyse the typology of these firms.
Options Survival Lifestyle Managed growth Aggressive
growth
Focus on
management
Selling what they
have
Work maintenance Incremental
growth
Scalability
Entrepreneurial
orientation
Quite low Low Moderate High
Management skills Selling Operation skills Planning and
delegating
Planning,
innovation and
negotiation
Structure Little Simple Centralised Functional
Management style Reactive Tactical Strategic Proactive
Technology None Limited Moderate High

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investment
Table 1: Typology of entrepreneurship
(Source: Learner)
Similarities and differences between entrepreneurial ventures
Comparison in differences
Public sector Private sector
Objective It is done to serve country’s citizens To earn profit
Raise money Mostly from public revenue like tax,
penalty and duty
Issue debentures and shares, or by
taking loan
Benefits of
working
It has good job security, allowances,
retirement benefits and prerequisites.
Good salary packages, incentives and
competitive environment
Base of promotion Seniority In terms of Merit criteria
Job stability Yes No
Areas served Army, Police, health, Transport,
Agriculture, Banking, Insurance,
Electricity and manufacturing
Finance, IT, education, technology,
banking, construction,
Pharmaceuticals and mining
Similarities
Customer-service
oriented
Both are customer-oriented, as customer in a private company agrees to pay for the
services and that too for public sector. Besides, the customer base is quite different
in terms of operations since the value immensely works in ensuring higher level of
customer service (Cowling et al. 2012).
Open to change With workforce and technology, both the ventures have openness to change. It is
true that the changes relate to the technology with the changing sphere of business,
so that new possibilities can be explored easily.
Mentoring Whether it is done informally or formally, there is a willingness to spend extra time

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on sharing additional experiences regarding the relations in work environment.
Opportunities for
growth
It applies both for these ventures, as coordinated growth can be found in a formal or
informal fashion. Likewise, employees in public and private sector find a win-win
situation, as employees seek a good experience when an employer assigns a new
task (Kuratko et al. 2015).
Table 1: Differences and similarities of entrepreneurial ventures
(Source: Learner)
Entrepreneurial ventures in public and corporate sector
Classifying the entrepreneurial ventures in corporate and public sectors, there could be many
types. The first one could be the Start-ups, as this venture is set either by collaboration of several
entrepreneurs or an individual responsible for it. This is focused on a Small-scale, so that it can
look for expanding the business by earning profit. Next is the franchisee, where the individual
collaborates with the running authority or operating with another party. According to Fillis and
Rentschler (2010), the acquisition could be a pre-established business that is owned by other
entrepreneur, as it do not need initiating any kind of a new business. Further, Joint venture starts
with collaboration of two business or organisation. Lastly, the Public-private partnership is
established with collaboration of government or private organisation.
Scope, development and growth of entrepreneurial ventures
The scope of all these entrepreneurial ventures is to create new businesses, so that it can create
jobs, increase productivity and strengthen market competition. In order to drive growth and
development, it is important that these ventures invest in services and products that people need.
As reflected by Williams and Nadin (2010), this will enable access to the services and goods,
which would be productive in fostering economic growth. Another parameter could be providing
the viable opportunities for employment, as this can create jobs and increase quality in overall
standard of living. Towards the economic integration, it will increase in strengthening revenue
and remain interconnected with the global economy. With that, the young-tech firms and start-
ups play in job creation that is documented in the contribution of overall productivity (Read et al.

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2016). Moreover, the new technologies will help to promote efficiency into new services and
products, which people need to work with the help of creative applications.
LO2: Impact of Small business on economy (P3 & P4)
Relevant data and statistics how micro and small business impact on economy
Small and micro businesses always have a focal point on shaping the EU. In terms of the official
statistics, SMEs has been identified, less than 150 people being employed. To analyse business
population estimate for UK, 2018, it shows that around 5.6 million small businesses has started.
In contrast to 2017, the private sector business fell by 0.5% (around 27000 businesses) while the
private sector employment has increased by 2% (i.e. 304,000) (Fsb.org.uk, 2019). Now the
contrast is attributable to smaller non-employing business falling by 1% but the larger employing
business rise by 2% (Fsb.org.uk, 2019). It is being interpreted by SMEs and economy, which
accounts on small businesses by 99.3% of the private sector business in 2018 while 99.9% were
SMEs. Further, the total employment for the micro and SMEs were 16.3 million, which consisted
60% of private sector employment in parts of UK (Fsb.org.uk, 2019). Moreover, the combined
turnover of SMEs was about £2.0 trillion, which included 52% of the turnover in private sector.
Within the business population in 2018, around 1.4 million employing business and 4.3 million
non-employing were there. It decided that 75% of businesses did not employ anybody aside from
owners. Thus, it could be decided that the business population included legal forms where there
was 3.4 million sole proprietorships, 405,000 normal partnerships and 1.9 million companies
(Fsb.org.uk, 2019). In order to analyse the trends in population from 2000 to 2017, a sustained
growth in population was found every year. Recently, there also have been around 27000
businesses between the last two years (Fsb.org.uk, 2019). However, it was directed that
population majority expansion from 2000 is due to the non-employed business, accounting for
87% of major increase. From the period of 2017 to 2018, the employing businesses have also
increased by 23,000 while the non-employing businesses fell to 50,000, in decrease of over
27000 businesses (Fsb.org.uk, 2019). Hence, it could be prioritised that SMEs have already
accounted for 99.5% of businesses in the industry area. Below figure, shows that around 99.5%
of businesses were acquired by MSMEs during 2016 where micro accounted 89.63%, medium
with 0.44% and small with 9.5%.

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Figure 1: Distribution of establishments of MSMEs
(Source: Cucculelli and Bettinelli, 2015)
However, the below figure also gives an estimate of the value added for the SMEs, as of 2018. It
accounts that in UK, there has been high-rise of the index value to over 130.
Figure 2: Value added for SMEs

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(Source: Internal Market, Industry, Entrepreneurship and SMEs - European Commission, 2018)
Importance of small businesses and business starts-ups to the growth of social economy
According to Dacin et al. (2011), the level of growth and creation for the SMEs and business
start-ups has been a crucial barometer for social and economic well-being for countries. Such
kind of businesses has a pivotal role to play while sustaining a competitive economy. Rather, to
provide seedbeds for innovation, it provides potential for becoming a strategic player in national
and local economy. Due to this, the economic agencies have recognised good support for the
small and new business. Often, the small business owners tend to come from varied
backgrounds, so that they can pursue for self-employment. Despite this, small business can be
vital for the future of UK. From the discussion of Scarborough (2016), small businesses might be
overshadowed in news by conglomerates and the large corporations. In that case, they might not
generate that revenue, but can remain vital to the economic success.
Small businesses have three ways to contribute to the economy, as they tend to give people an
opportunity to encourage innovation, develop employment benefits and financial independence.
It is just, as like to find a freelance contractor economy. Sometimes, large companies like the HP,
Google, Disney, Apple, Microsoft and Amazon has found innovative idea to turn out, as a true
innovator. Since small businesses act as the engine of growth, it also allows government and the
citizen for acquiring services to grow (Chell et al. 2016). However, to analyse the differences of
small, medium and large businesses affecting the economy, businesses can adapt with value
added production or employment growth. It can be instigated that an expanding share of mid-
sized business could have a positive effect to the growth but it might bring higher income in EU
nations (Blackburn and Kovalainen, 2009). Likewise, the increase could also be seen in share of
the large businesses and micro-enterprises, having a negative impact to the economic growth
metric.
Small businesses affect local, regional, national and international economy
According to Fayolle (2013), small businesses are crucial in community support,
entrepreneurship and job creation. It may not generate, as like the large companies but they act as
integral in local or the regional economies. In fact, it acts as the building blocks to the corporate
giants existing today. From the opinion of Bennett (2014), economic growth works as a key

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measure for corporate empires like the Ben & Jerry, Wal-Mart, and Burt’s Bees, which are
formidable in the global market. This can also map the future by inducing growth and
innovation. It is instigated that they harbour spirit of entrepreneurial characteristics by attracting
individuals that invent new ideas and products to develop the pre-existing ones. Further, the
successful local businesses also support community by paying local taxes (Carlsson et al. 2013).
In fact, they possess ability for adapting to the climate changes due to the high customer
orientation level. It also tends to continue for supporting the business locally even finding
economic stress. Thus, at national and international level, small businesses catalyses the growth
factor in order to benefit the global economy.
LO3: Key aspects of an entrepreneurial mindset (P5 & P6)
Characteristic traits and skills of successful entrepreneurs differentiate from other business
managers
An entrepreneur lines up his idea into the improved service or the new product. He tends to
develop a vision, so that the firm can full new ideas in taking the vision for building a company.
Results have showed that successful entrepreneurs tend to be more innovative, creative and tend
to embrace new ideas. Their attribute towards personality could have ambitions, which matches
the manager personalities. According to Shaw and de Bruin (2013), successful entrepreneurs like
Richard Branson, James Dyson and Philip Green tends to be more resilient, self-confident and
conscientious than the personalities of manager. They could be even tougher, and more
demanding in bargaining more than other managers’ bargain. Likewise, entrepreneurs could act
as the creators of companies that embody traits of the parents. They tend to believe in value of
fresh ideas like, the parents believe in children (Bello, 2014). However, the best part associated
with them is to protect their companies and have willingness to expend long hours, ensuring that
their companies are funded well.
Likewise, there are other business mangers whose work is associated in company core functions.
They tend to analyse that organisational trains runs on time, deliver services and products at a
low cost to the company, by attaining higher profits. From the argument of Henrekson and
Sanandaji (2014), the business managers have to deal with personalities and details in order to
find organisational efficiency. Their role is to support entrepreneur’s vision, which will develop

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company’s reputation widely. For being effective, it is prudent that managers should act as
leaders, as they are optimistic, calm and dependable under huge pressure. Some other qualities
might be capability to communicate well, so that a corporate hierarchy of managing time can be
maintained well.
1. Different lines of argument of entrepreneurial characteristics
It can be argued that entrepreneurs possess characteristic where they are goal-oriented. They tend
to be strategic, so that game plans work in a clear way for benchmarking and executing it. It is
that phase where entrepreneurs are being committed in business, so that opportunity for future
success can be found more prevalent. Bridge and O'Neill (2012) have also argued that
entrepreneurs thrive on the area of uncertainty, as sometimes wrongdoings in business can go
either side. Thus, true entrepreneurs know this phase to grow wake in challenges they face. The
moderator is that entrepreneurs look for viable opportunities, so that event of the business will
increase innovative ideas. They would also have good capability to focus on their goals, so that
improvement in business can be found easily (Olusegun, 2012). At times, entrepreneurs do take
major risk, so that triumph in the business could be easily attained. It would strengthen them to
be inherently creative to turn profit into ideas.
2. with examples, characteristic traits, skills and motivational drivers of successful entrepreneurs
One cannot just deny what they want, but majority of entrepreneurs get into the game for making
money count. Mark Zuckerberg and Richard Branson made it possible for finding a good idea in
becoming overnight billionaire. It is not exactly true but the devoted entrepreneur sets up a great
timing to work with the traditional position. Flexibility is one such motivational driver, as the
demands are exceptional in working for long hours, or finding the same liability in the demands
of the job. Another aspect could be the desire for control that drives the successful entrepreneurs
to attain an effective leadership position. As opined by Cowling et al. (2012), to root in a
business, the entrepreneurs should have full control over the decision being made. This is where
one can find privilege of setting the business course work well. Further, teamwork will also
create environment of creative problem solving area, so that interactions made will be mutually
beneficial for those famous British entrepreneurs. According to Kuratko et al. (2015), their
teamwork paradox is analysed with a working guide with subsequent personalities and skill
traits. Lastly, legacy could be another motivational driver, which remains holistic towards

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business success. It is the path where the business will work effectively on future generation
guide, in order to achieve something inevitable.
Entrepreneurial personality reflect entrepreneurial motivation and mindset
Entrepreneurs can be different, according to their way of thinking and setting ideas to attain their
objectives. Their mindset might have to do with personality but will figure out experiences to
work on the exact approach (Fillis and Rentschler, 2010). It is important that entrepreneurs reach
customers first. As the product development may come first, Greg Gianforte, one of the master
bootstrapper insists on a wrong approach. He focused on tech sector where experience worked at
his will. Instead of starting a prototype for service or product, he started by getting on phone with
customers. This led to many conversations on what type of product they might buy. He spent
around 60 days in coding the product, and finally he is leading the frontier of Cloud-based
Software for many businesses of customers.
Another instance could be Jack Ma, who is known as the founder of Alibaba, a wholesale e-
Com site. Despite his recognition outside China, it was not that easy. As the company was going
public, it loomed a major challenge. Ma wanted to keep intact regarding the company’s control,
which was rather hard to do once the investors entered the picture. However, Ma believed that
the vision of the company with a sense of culture could get the work done. Further, some of the
other examples could be provided with power of the brand (Williams and Nadin, 2010). At that
instance, the string of some great films created a new market for fantasy and science fiction.
Filmmaker, George Lucas saw on a trilogy that his three additional movies became an
influential brand. It became the springboard for the profitable licensing deals from video games
to toys. Many entrepreneurs also tend to talk on importance of networking, and that was
followed by Jason Nazar. Nazar says that his success evoked from the growth of the company
where he used networking to raise about $4 million during the start-up funds. His measure was
mainly on return of investment that were getting from his networking efforts.
LO4: Different environments that foster or hinder entrepreneurship (P7)
Using relevant examples, how background experience can foster entrepreneurship positively and
negatively