Entrepreneurial Ventures, Typology, and Economic Impact: A UK Focus

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Entrepreneurship and Small Business
Management
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Table of Contents
Introduction......................................................................................................................................3
LO1..................................................................................................................................................4
1. Examine various types of entrepreneurial ventures and also give a comprehensive
explanation of how these relate to the typology of entrepreneurship..........................................4
2. Explore the key differences between serial entrepreneurs, intrapreneurs and owner-
managers......................................................................................................................................7
3. Define public and corporate sectors demonstrate and investigate a variety of
Entrepreneurial ventures within the context of the public and corporate industry......................8
4. Examine the scope, development, and growth of entrepreneurial ventures you considered
above. Your work should be critical and consider your own opinion as well.............................9
LO2................................................................................................................................................10
1. Interpret relevant data and statistics on scenario 2 to assess how micro and small businesses
have a significant impact on the UK's economy. You may use specific examples to back your
analysis......................................................................................................................................10
2. Define social economy with one example. Explain how small business and business start-
ups are vital and significant in growth and development to the social economy of the UK.....12
3. Evaluate the differences small, medium and large businesses make to the economy at
different levels of the economy, such as local, regional, national, etc. by using relevant
statistics......................................................................................................................................13
4. Critically examine how small businesses have an impact on different levels of the economy
in a local, regional, national and international context..............................................................14
LO3 and LO4.................................................................................................................................15
1. Determine the characteristic traits and skills of successful entrepreneurs (Alan Sugar) that
differentiate or distinguish them from other business managers...............................................15
2. Assess how aspects of the entrepreneurial (such as Alan Sugar, Richard Branson, etc)
personality reflect his entrepreneurial motivation and mindset by exploring and examining
different lines of argument relating to entrepreneurial characteristics......................................17
3. Analyze the characteristic traits, skills and motivational drivers of successful entrepreneurs,
supported by specific examples.................................................................................................19
4. Examine and evaluate the different environments (background and experience) that foster or
hinder entrepreneurship.............................................................................................................20
Conclusion.....................................................................................................................................21
References......................................................................................................................................22
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Introduction
Entrepreneurship is the process of planning, designing and launching the idea of new business. It
includes the financial risk about the particular business and the idea of creating a new business
and as well as the actual process of starting a new business. This report is focused to identify the
different types of entrepreneurial ventures and its relation with the typologies. The difference
between the entrepreneurs, intrapreneurs and owners managers will also be analyzed in this
report. Effect of SME and micro business will also be analyzed in this report. The last of this
report will focus on the traits, characteristics and skills of the employees.
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LO1
1. Examine various types of entrepreneurial ventures and also give a comprehensive
explanation of how these relate to the typology of entrepreneurship
Entrepreneurial ventures – Those ventures that start and runs by an individual with very
limited resources and a high rate of risk. It often includes new business ideas about any product
or services. All entrepreneurial ventures are not the same (Bascini & Durucan, 2017). Ventures
are classified into four different categories which are the following:
1. Small business entrepreneurship – Small scale businesses often fund their business
from friends, family, savings and small business loans. Grocery stores, travel agents,
carpenters, plumbers, and storefronts etc. The idea of their success is to just make enough
profit. They don't want to take over the industry because they are just enough profitable.
2. Scalable startup entrepreneurship – Scalable startups are those businesses where they
have a vision about their business idea. They attract investors to invest in their business
idea, it called venture capitalists. Like startups in silicon valley, Shanghai, New York,
Bangalore etc.
3. Large company entrepreneurship – Large companies offer new products or service
according to the taste of customers, new competitors, legislation etc. they launch variants
around their core products.
4. Social entrepreneurship – These could be non-profit or hybrid types of companies.
Their core focus is on creating new products or services according to social needs and
problems (Morris, et. al., 2016).
Typology of entrepreneurship – In the field of entrepreneurship, typology explains the
classification of types of entrepreneurship. The following are the four types of new
entrepreneurs:
1. Craftsman – Craftsman entrepreneurs are those who have good professional technical
experiences or skills but they often don’t have any kind of good communication
capabilities.
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2. Risk-Oriented – Those entrepreneurs who buy goods at production cost to complete the
order and then sell in on an uncertain price in future. That uncertainty creates risk in
those particular businesses.
3. Family – Oriented – A business that own by a family or one person from the same
family. It managed by more than one generation of the family. It could be small scale or
large scale but often small scale.
4. Managerial – Managerial business are those where planning, running and designing are
not handled by owners but managers handle their businesses.
Entrepreneur ventures interrelates with entrepreneur typology
Ventures Typology Interrelation
Small scale ventures Craftsman  Less capital
 Professional skills
required
 No communication
skills
 No investment
Scalable startups Social enterprises  Big investment
required
 Uncertainty for
profitability
Large company Risk-Oriented  Uncertainty about the
reaction of the new
version of products or
services
 A lot of investment in
projects
 Very risk-oriented
Family oriented Managerial  Often managers
handle family
businesses
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 Every generation is
not that great into
running a family
business
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2. Explore the key differences between serial entrepreneurs, intrapreneurs and
owner-managers.
Similarities Differences
Definition Remuneration
 All are highly innovative with their
businesses
 Entrepreneurs and owner-
manager get profit but
intrapreneurs get remuneration
from the organization.
Risk factors Establishment
 All three are likely risky.  Entrepreneurs have newly
established business but
intrapreneurs and owner
managers often have old
established businesses.
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3. Define public and corporate sectors demonstrate and investigate a variety of
Entrepreneurial ventures within the context of the public and corporate industry.
Public sectors – Public sectors include those enterprises which are self-financing enterprises that
are under public ownership. It includes public goods and services like military, law, and
infrastructure etc.
Corporate sectors – It includes manufacturing and tertiary services. It plays a huge part in the
domestic economy. It could be a bunch of companies with the same industries (Lee, 2014).
NHS (Public sector) – NHS was launched in 1948. The core idea of these ventures is that
healthcare is available for all on every requires time. Earning profit is not the prime motive of
NHS like other public sector ventures. It includes health care services, emergency services,
health checkups, transplant and end of life care.
Greenergy International Ltd (corporate sector) – It is a UK based petrol and diesel company.
It sells more than 20 million litres of fuels in a day. Greenergy produces and sells biofuel. It is
one of the largest fuel producing and selling companies and one of the largest companies by its
earning revenue.
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4. Examine the scope, development, and growth of entrepreneurial ventures you
considered above. Your work should be critical and consider your own opinion as
well.
NHS is one of the most popular and biggest ventures in the public sector in the UK. Services
which are considered to be in scope are improving the quality of services of heart disease and
care and support for those families suffering from negative or poor outcomes from any surgery.
But these things are in the scope of the organization and will have a good plan of development in
the future. NHS spends a lot of budget on drugs, health care services, and treatments. Growth
and providing health care services to everybody is the prime motive for the future (Mcintosh, et.
al., 2018).
Greenergy international Ltd is one of the biggest suppliers of fuels. They have a good
infrastructure and service capability. To grow internationally, the company has to improve its
services and will provide their services on more new places. The company co-founded with new
oil and the chemical store called navigator which shows that the company is making some
serious plans for their businesses.
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LO2
1. Interpret relevant data and statistics on scenario 2 to assess how micro and small
businesses have a significant impact on the UK's economy. You may use specific
examples to back your analysis.
Micro and small businesses play an important role in the UK's economy. According to recent
researches, it shows that these small scale companies have a high growth rate. In 2017, 36
percents of SME employers reported growth in small business survey. It shows vital growth in
these sectors and helps to boost up the economy of the UK. The image below explains the
turnover of small and medium entrepreneurs in the UK. This shows significant growth in the
turnover of these companies (Stephen &
Hart, 2018)
Figure 1: Mean turnover by micro-business: by region
Source: Micro-Business Britain Survey, (2018).
Not just SMEs high turnover helps to boost up the economy but it also helps to create more
export opportunities. SME businesses help GDP to grow by increasing the export rate. Below
mentioned will explain this:
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Figure 2: Percentage of micro-businesses exporting: by region
Source: Micro-Business Britain Survey, 2018.
SME organization like Unicorn grocery store, UK is one of the successful models of small,
medium entrepreneurs who help to make a significant boost into GDP of UK by providing full
time, part time jobs and increasing GDP.
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2. Define social economy with one example. Explain how small business and
business start-ups are vital and significant in growth and development to the social
economy of the UK.
The social economy is taken as a third party from the private and public sectors. It is mostly non-
profit, not for profit and voluntary organizations. Many social organizations just provide services
to their customers but not for profit. Governance typically operates through one member, one
vote basis. It includes credit unions, trade unions, sports associations, and school and hospitals
organizations like British Biathlon (sports union of UK – a governance body)(Cowling, et. al.,
2015).
Small business and business start-ups are an important part of the economy. HGSB are just a
fraction of total small scale companies in the UK. 20% of growth in the social economy in the
UK was from goods and services produced by HGSB. It helped to create new jobs in the UK.
Employment was earlier a big issue for the country. Then startups were on its boom which
helped the country to come up with this problem. Now, the UK is all about the scalable startups
in the market. It brings overall growth in the country and helped to attract tourists and import-
export business and all which helped the country to make a boost in the social economy of the
UK.
It has a significant growth rate in all the small scale industries. They increase their turnover
every year. Within the last 5 years, they prove that these industries are one of the most growing
industries worldwide (Brammer, et. al., 2012). Especially in the UK, it helped to create a balance
within all the small scale business and microscale businesses. It helped to find out talented and
skilled persons with specific degrees and skills. So it is helping them overall like giving a boost
in social economy and providing them jobs and, increases business and achieves significant
growth in the national and social economy in the UK (Rotimi, et. al., 2017).
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