Exploring the Dynamics of Entrepreneurial Ventures in the UK Economy

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Running Head: ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT

ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
Table of Contents
Introduction......................................................................................................................................3
LO1 – Exploring and illustrating the range of venture types that can be considered
entrepreneurial.................................................................................................................................3
Examining different types of entrepreneurial ventures and their relationship with the topology
of entrepreneurship [P1]...............................................................................................................3
Exploring the similarities and differences between entrepreneurial ventures [P2].....................4
Investigating a diverse range of entrepreneurial ventures to demonstrate an understanding of
entrepreneurship in both public and corporate sector [M1].........................................................5
Critical examination of the scope, development and growth of entrepreneurial ventures [D1]. .5
LO2 – Assessing the impact of small businesses on the economy..................................................6
Integrating and accessing relevant data and Statistics to illustrate the impact of micro and
small businesses on an economy [P3]..........................................................................................6
Evaluating the differences made by small, medium and large businesses to the economy, using
relevant data and statistics [M2]..................................................................................................6
Importance of small businesses and business startups to the growth of social economy [P4]....7
Critical examination of the impact of small business on different levels including local,
regional, national and international context [D2]........................................................................7
LO3 – Determining the key aspects of an entrepreneurial mindset.................................................8
Determining the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers [P5].....................................................................................8
Assessing how the aspects of entrepreneurial personality reflect entrepreneurial motivation and
mindset [P6].................................................................................................................................8
Exploring and examining different lines of argument relating to entrepreneurial characteristics
[M3].............................................................................................................................................9

ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
Analyzing the characteristic traits, skills and motivational drivers of successful entrepreneurs,
supported by specific examples [D1]...........................................................................................9
LO4 – Examining the different environments that can foster or hinder entrepreneurship............10
Examining, using relevant examples the impact of background and experience in fostering or
hindering entrepreneurship [P7].................................................................................................10
Analyzing the links between entrepreneurial characteristics and the influence of personal
background and experience to specific successful entrepreneurs [M4].....................................10
Critical evaluation of the positive and negative influence of background and experience by
comparing and contrasting examples [D4]................................................................................11
Conclusion.....................................................................................................................................11
Reference List................................................................................................................................13

ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
Introduction
The recent few decades have witnessed a huge growth in entrepreneurial sectors due to the ease
of Business and accessibility of communication systems and internet. Moreover, the increase in
different types of sectors has also contributed towards the enhancement in entrepreneurship
among common people. Entrepreneurial factors play a significant role in boosting the economy
because they are usually present in huge numbers despite being small in individual size. This
sector is also very helpful because it increases employment at local and regional levels that
reduces financial burden on the government to support the medical facilities and other subsidies
of people. There are different types of entrepreneurial ventures with their own respective
significances and specialties. The following report includes the description about different types
of entrepreneurial Ventures and their contribution to the economic ecosystem of a country. It has
also explained the qualities and characteristics of some successful entrepreneurs and how the
background and experience possessed by an individual can impact the entrepreneurial mindset of
that person. The report has also discussed some statistical data regarding the condition of
entrepreneurship and its influence on the economy of United Kingdom.
LO1 – Exploring and illustrating the range of venture types that can be
considered entrepreneurial
Examining different types of entrepreneurial ventures and their relationship with
the topology of entrepreneurship [P1]
The term entrepreneurship stands for establishing a business independently by investing the
necessary amount of funding and conducting a required research and development procedure.
There are four different types of entrepreneurial ventures that exist in the economic ecosystem of
United Kingdom. They are small scale business setup, scalable startup organisations, large scale
organisation entrepreneurship programs, and Social entrepreneurship. The small scale business
setup is about establishing a small shop for business focusing in one domain by an individual or
a group of few individuals. The scalable startup organisations comprises of a research and
development facility with an objective of developing and introducing a Revolutionary product in
the market. The large scale organisation entrepreneurship programs are the programs conducted
by large scale companies to develop a new product to be sold in the market by the company with

ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
an objective to stay ahead of its competitors. The Social entrepreneurship programs organisations
have the objective of serving the society and people and even environment without focusing too
much on the profit to be earned (Welter et al. 2017).
Exploring the similarities and differences between entrepreneurial ventures [P2]
The most important similarity between all the different types of entrepreneurial ventures is that
the founders of any organisation need to put in strong and determined efforts in order to succeed.
The qualities like time management and resource management are common for all different types
of ventures. Considering the technical details about the ventures, the small scale business setup
does not require a highly creative mind to be operated because it includes establishing a small
shop for a person's livelihood. This might include a grocery store, General Store, plumber shops,
carpenter shop, electrical fitting shop, barber shop, or any other similar shop. The scalable
startup businesses include the research and development of any unique service or product that
can revolutionize the entire market system. This can include working upon a new way of
stitching for doing any other household work. The invention of electronic stitching machine and
equipments like combined juicer mixer grinder or best examples of the outcomes of a scalable
Startup. This requires a high level of Creative and visionary mind. The large scale organisations
entrepreneurship programs are usually funded by the company itself so that the creative minds
present within the organisation can work towards the betterment of any existing product or to
invent an entirely new product. An important Common Factor between all the three above-
mentioned entrepreneurial ventures is that they focus on earning profit for the expansion of the
company and establish a strong foothold in the competitive market (Vismara, 2016).
However, there are several differences among all different types of ventures. The biggest
difference is that the Social entrepreneurship does not focusing on earning profit for its future
endeavors and is mainly concerned about the society and environment. The entrepreneurial
ventures like scalable startups, Social entrepreneurship, and large-scale organisations
entrepreneurship programs require highly creative mind set which is not very important in case
of small scale business organisations. Moreover, the funding for Social entrepreneurship comes
from Charity sources and corporate social responsibility donations from last organisations. On
the other hand, the funding for large scale organisation entrepreneurship program is entirely done
by the organisation itself whereas the same for a scalable Startup entrepreneurship initiative is

ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
either founded by the owner or founder or comes from a sponsored source. The small scale
businesses are usually funded by the founder from his own savings or are funded by the banks
through business loans (Ram et al. 2017).
Investigating a diverse range of entrepreneurial ventures to demonstrate an
understanding of entrepreneurship in both public and corporate sector [M1]
The trend of entrepreneurship is majorly observed in corporate sector because there is a high
probability of the corporate organisations of being in competition with its competitors. The
public sector on the other hand is mainly owned by the governments of different countries due to
which it lacks competition as there are no competitors. The corporate sectors need to keep
improving their products to sustain their customer base which is important for increasing their
monetary reservoirs to be used in the future for expansion and other purposes. The government
owned companies receive their findings directly from the government and therefore need not
worry about any monetary reservoir. The public sector organisations also include military, police
and health departments operated directly under the supervision of the governments and therefore
they do not need any creative research in order to function internally. The entrepreneurial
ventures in corporate sectors on the other hand have a diverse range of activities. The creative
experiments are consistently done in private sector due to which the companies are able to
enhance their products and services for the customers. Entrepreneurial activities in corporate
sector might range from inventing a new product to replace any order product in the market to
discovering a new way to reduce the transportation cost (Cowling et al. 2015).
Critical examination of the scope, development and growth of entrepreneurial
ventures [D1]
Entrepreneurial business ventures have tremendous scopes for development and growth because
it is important to implement creative methods to do business to stay ahead in the competition.
There are manufacturing companies established in United Kingdom that operate in different
sectors like food processing and producing automobiles. The organisations must reduce the
manpower and invest the same in other sectors by using automation Technology. Moreover,
producing a highly commendable product or service in the market is also a positive consequence
or outcome of a successful entrepreneurial program (Terjesen et al. 2016). Considering the
example of Amazon, it is a large scale organisation based entrepreneurship program which has

ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
established a strong market in the field of e-commerce all over the world. However, a separate
organisation named Blue Origin owned by the owner of Amazon Jeff Bezos is also dealing with
launching satellites in the space using its own rockets. There are many organisations that are
expanding their businesses in new sectors. The “Beyond Meat” company has introduced some
Revolutionary meat products that are made up of vegetarian products. The organisation had the
objective to produce tasty and healthy meat items without killing animals.
LO2 – Assessing the impact of small businesses on the economy
Integrating and accessing relevant data and Statistics to illustrate the impact of
micro and small businesses on an economy [P3]
The small and medium scale business companies have a significant impact on the economy of
any country. This is because the small scale businesses employ many people because they are
present in large quantities in any region. According to the statistical reports of financial year
2018, more than 99% of the corporate companies are small and medium scale business
organisations operating in United Kingdom. The total contribution of small and medium sector
businesses in the overall Gross Domestic Product or GDP of Britain is approximately 47%.
These organisations contributed almost 1.8 trillion Great Britain Pounds in the financial year
2017-18. It is believed that the micro, small and medium sector is likely to expand in the near
future with a much wider variety of businesses employing thousands of people (Liu et al. 2015).
Evaluating the differences made by small, medium and large businesses to the
economy, using relevant data and statistics [M2]
More than 65% of the working population in United Kingdom works in small and medium scale
business organisations. It has been revealed in the statistical details that the last few years have
witnessed a significant rise in small and micro scale entrepreneurship related businesses. The
primary reason for this is the easy access ability to high speed internet due to which the people
are able to connect with each other from different parts of the world. Hence, the online and
software related services are on the rise since the last few years. Due to the emergence of small
and medium scale businesses in United Kingdom, the unemployment rate has significantly gone
down which is a positive contribution towards the economic development of the country. This is
because the small scale sector businesses are usually spread in a wide range of areas of expertise

ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
and therefore it is easy to find capable workforce for the job. The large scale businesses on the
other hand contribute significantly towards the economic development and recognition of the
country at an international level. The large scale business organisations usually have large
monetary reservoirs due to which they can easily found CSR related activities and several other
small scale startup companies. In addition to this, due to the huge annual revenue generation, the
large scale companies pay a huge amount of tax which makes the Government of the country
economically strong (McKenny et al. 2017).
Importance of small businesses and business startups to the growth of social
economy [P4]
The small businesses and startups are essentially required for the social and economic growth of
a country because it employs a huge population and make them self dependent. Hence, the
people are capable of paying more taxes and depend less on the subsidized facilities of
government. Considering the social perspective, entrepreneurship introduces new and unique
products as well as services in the market and society. As a result of this, the competition
increases which further encourages people to enhance product quality which is beneficial for the
society and the country. The business startups also provide and international recognition to the
country in terms of talent encouragement and investment in research and development sectors
(Burchardt et al. 2016).
Critical examination of the impact of small business on different levels including
local, regional, national and international context [D2]
The local level faces the maximum impact of small businesses because it employs people on a
scale. The people who establish a small scale business usually employee many other individuals
does reducing the unemployment ratio. The small scale businesses turn into medium scale
company after operating system for a particular period and affect the regional level of any
country in a positive way. The establishment of a business chain by opening multiple outlets at
different locations in a region employs many people and earns huge revenue due to which it can
pay taxes. The national level of any country receives benefit by receiving taxes from the small in
businesses and startup companies that are performing well. As a result of this, subsidize
educational and medical facilities for the people of the country (Arshed and Carter, 2016).

ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
LO3 – Determining the key aspects of an entrepreneurial mindset
Determining the characteristic traits and skills of successful entrepreneurs that
differentiate them from other business managers [P5]
Successful entrepreneurs have some unique characteristics and traits that are not commonly
found in other business managers. A prominent characteristic of a successful entrepreneur and
businessman is that he is capable of managing every resource like time, money, people,
materials, and other similar resources. The people who are very confident about their efforts are
more likely to succeed. In addition to this, the successful entrepreneurs also have a unique vision
of pursuing any objective or goal. They are very good at networking with people of different
skills and also able to identify the people having some special characteristics. Moreover, they
always think for long-term success and are very patient about their short term consequences.
They do not get distressed or disappointed because of their failures and have an attitude towards
learning from their mistakes for a better future. The successful entrepreneurs can influence
people and turn out to be great leaders who can make their subordinates willingly do any task.
Other business managers can perform their designated roles and responsibilities very well
according to the specified rules. However, successful entrepreneurs can find a creative technique
to conduct any activity.
Assessing how the aspects of entrepreneurial personality reflect entrepreneurial
motivation and mindset [P6]
The entrepreneurial personality present in an individual reflects the motivation and mindset of
the person in a prominent way. It can be observed that at a person that processes entrepreneurial
personality is very confident about his vision and plan for the future. Moreover, that person
always has a never give up attitude and looks forward towards learning and developing new
skills. A person with entrepreneurial personality is highly motivated and optimistic about his
success due to his actions. However, he is also confident enough to have an alternative plan in
case of a failure. Out of the box thinking is also reflected in the mindset of an entrepreneur as he
always looks for some new methods to enhance any existing item or process. A person with
entrepreneurial characteristic is highly influential and capable of influencing and motivating
people while acting as a leader (Cowling et al. 2016).

ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
Exploring and examining different lines of argument relating to entrepreneurial
characteristics [M3]
There have been multiple arguments raised about the characteristics of different entrepreneurs by
many experts. There are people who believe that entrepreneurs are highly optimist and do not
think about the possibility of negative consequences. The main rationale behind this argument is
that the entrepreneurs are more likely to be successful if they think more about the positive
consequences and work towards the same. However, there are many other experts who believe
the contrary concept that the entrepreneurs usually think about the negative consequences and
prepare their master plans and actions accordingly. Similarly, there have been arguments
regarding the risk taking capability of an entrepreneur. It is believed that the entrepreneurs can
take risks in order to conduct their operations and can invest money and other resources with an
open mind. However, many other experts have the contrary believe that the entrepreneurs usually
have the characteristics of managing their resources and money due to which they do not take
risks in every direction. They believe that risks need to be taken in a calculated way without
going beyond a particular extent. Another important characteristic about entrepreneurs where
contrary arguments can be seen is that the entrepreneurs are highly social and interactive with
people according to some experts. On the other hand, some have stated their arguments that
entrepreneurs generally work alone (Bradley and Klein, 2016).
Analyzing the characteristic traits, skills and motivational drivers of successful
entrepreneurs, supported by specific examples [D1]
The primary source of motivation for any entrepreneur is his or her determination to do
something unique and creative. Apart from this, there are several other sources of motivation for
different entrepreneurs including an attitude towards developing environment friendly methods
of disposing inorganic materials. For entrepreneurs, the main motivational source is to earn
money to become economically strong and contribute towards the economic stability and
strength of the nation by paying hefty amount of taxes. Therefore, the entrepreneurs develop
some special sets of skills and traits like time and money management. They are capable of
finding the shortest way of accomplishing any work using the least amount of items in order to
save time and resources. Moreover, the entrepreneurs can also motivate other people to work as a
team for a better future of the company and their personal benefits (Jones, 2015).

ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
LO4 – Examining the different environments that can foster or hinder
entrepreneurship
Examining, using relevant examples the impact of background and experience in
fostering or hindering entrepreneurship [P7]
The entrepreneurship related qualities are developed in an individual depending on several
factors starting from his childhood backgrounds to the experience that he has received while
growing up and working in different organisations. It has been observed that majority of the
entrepreneurs belong to a humble background who have faced poverty during their childhood.
This condition can be justified because many people are capable of inventing new ways of
livelihood while being in a condition of poverty. However, it is also been observed that many
poor people are not able to show their creative skills and talents due to the lack of opportunities
and financial capacity. On the other hand, the people who have experienced their childhood and
teenage in a financially stable or strong background receive more opportunity to test their
creative skills in different sectors. Hence, they are capable of becoming great entrepreneurs and
leaders. Jeff Bezos is a prominent example of a common person belonging to a humble
background to grow up to become the owner of world's biggest e-commerce organisation,
Amazon. On contrary to this, Mark Zuckerberg who is also among the youngest billionaires and
entrepreneurs belongs to a financially strong background.
Analyzing the links between entrepreneurial characteristics and the influence of
personal background and experience to specific successful entrepreneurs [M4]
And individual that has spent his life in poor state it has to find new ways to manage his
everyday activities. Hence, the quality of Material Management which is a strong characteristic
of a successful entrepreneur is developed inside the person from poor background. In addition to
this, a person coming from a background that lacks basic opportunities and facilities is capable of
utilizing any resources to its maximum potential. However, a person belonging to a rich
background and financially strong family is more likely to have interaction with many people.
Therefore, that person is likely to be very influential and interactive with other people of
different mindsets. Hence, the quality of convincing other people and motivating or influencing
them is mainly caused by a person that possesses experience in working and meeting with many
different people. A person who has received education in the best schools is more likely to

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develop leadership skills give the opportunities of leading people. On contrary to this, a person
that did not receive education in a great school is more likely to have practical experiences due to
his Individual efforts while struggling through poverty and other challenges in life (Bruton et al.
2015). Hence, it can be said that different types of backgrounds have different types of
influences on the personality traits of an entrepreneur. Bill Gates is a person who comes from
humble background but was superbly intelligent and developed interactive and leadership skills
through his experience while interacting with people.
Critical evaluation of the positive and negative influence of background and
experience by comparing and contrasting examples [D4]
The two major categories of backgrounds that are financially strong and weak background have
their own positive and negative effects on the entrepreneurial qualities of an individual. A person
that belongs to poor background is capable of accomplishing a work in less monetary expense.
Moreover, the same person can also found instant solution to a problem because of his
experiences of dealing with such situations while being in a poverty ridden environment. On the
other hand, being from a poor background also has some negative influences like not being able
to gel with people due to lack of interaction with other people. An entrepreneur belonging to rich
family background is likely to have several opportunities and high quality education to test his
practical knowledge and skills. Hence, a positive impact is that they can be very creative and
make use of multiple resources to deliver a superb outcome. On the other hand, a negative
influence on a person belonging to a rich background is that there are chances that the person
may get spoiled as he does not need to work hard and struggle due to the availability of every
item for his rich background (Pinch and Sunley, 2015).
Conclusion
After completing the research about Entrepreneurship and its impact on UK economy, it can be
said that the government needs to encourage entrepreneurship so that people can become self
dependent instead of depending on large scale organisations for employment. Moreover,
entrepreneurship also results into the proper harness of talents and different areas of expertise
held by people. Entrepreneurial ventures contribute a significantly portion of the revenue
towards the nation and therefore becomes an important block for the economic development of