Analysis of Entrepreneurial Ventures in the UK Economy (2023)

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ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT

Table of Contents
INTRODUCTION........................................................................................................................2
LO1........................................................................................................................................... 3
P1 VARIOUS ENTREPRENEUR VENTURES AND THEIR RELATION TO THE TOPOLOGY OF
ENTREPRENEURSHIP............................................................................................................ 3
P2 SIMILARITIES AND DIFFERENCES BETWEEN ENTREPRENEURIAL VENTURES...................4
M1 MULTIPLE RANGE OF ENTREPRENEURIAL VENTURES IN BOTH PUBLIC AND
CORPORATE SECTOR............................................................................................................5
D1 SCOPE, GROWTH, AND DEVELOPMENT OF ENTREPRENEURIAL VENTURES...................5
LO2........................................................................................................................................... 7
P3 ASSESSING RELEVANT DATA AND STATISTICS TO ILLUSTRATE IMPACT OF SMALL
BUSINESSES ON THE ECONOMY...........................................................................................7
M2 DIFFERENCES BETWEEN SMALL, MEDIUM AND LARGE BUSINESSES TO THE ECONOMY
ACCORDING TO RELEVANT DATA AND STATISTICS..............................................................7
D2 CRITICALLY EXAMINING IMPACT OF SMALL BUSINESSES IN LOCAL, REGIONAL AND
NATIONAL LEVEL.................................................................................................................. 8
P4 IMPORTANCE OF SMALL BUSINESSES AND BUSINESS START-UPS TO THE GROWTH OF
SOCIAL ECONOMY................................................................................................................9
LO3 & 4...................................................................................................................................10
CONCLUSION.......................................................................................................................... 21
REFERENCES........................................................................................................................... 22

INTRODUCTION
The report explains the concept of entrepreneurship in relation to various options available
in both the public and private sector. The similarities and differences between public and
private sector entrepreneurial ventures are examined in this report. Various diversified
sector of entrepreneurship is discussed in the report. Small business plays an equally
important role in the economy. The impact of small and micro businesses on the economy
of the UK is explained in the report with the help relevant statistics and data. Small business
start-ups play an essential role in the growth and development of the social economy. These
impact of small business start-ups on the economy is analyzed at different levels such as a
local, regional and national level.

LO1
P1 VARIOUS ENTREPRENEUR VENTURES AND THEIR
RELATION TO THE TOPOLOGY OF ENTREPRENEURSHIP
Entrepreneurship is an activity of analyzing and taking the risk in order to get success in the
competitive marketplace. It is the capacity to organize a business venture by taking the risk
with a motive to make a profit (Business Dictionary, 2019). Various types of entrepreneur
ventures are discussed below:
Lifestyle venture
Lifestyle venture is a business where the entrepreneur aimed at earning income which can
improve his living standard and can give him his desired lifestyle. The end goal of such a
venture is to reach to the level of flexibility and sustaining a particular income level. A
lifestyle entrepreneur is a person who starts a business frim with an aim to attain a
particular lifestyle and motive people by life rewards (Business Dictionary, 2019).
Small business venture
The small business venture is an enterprise started with a motive to earn a basic living and
not to make huge profits. These ventures have a small amount of capital employed with a
few employees working in it.
High growth venture
A business model which is designed to be repeatable and scalable with a high large amount
of capital investment is known as a high growth venture. There are several source s of
capital funding is available for a high growth venture (Acheatel, 2015).
TOPOLOGY OF ENTREPRENEURSHIP
Independent entrepreneurship
Independent entrepreneur is a self-employed small business owner who bears his own risks
and rewards. He starts a business venture in his area of interest and expertise and has no fix
working hours (Mote, 2017).
Corporate Entrepreneurship

The corporate entrepreneurship aimed at developing new products, services or business
processes through innovation and generate revenue with the help of continuous growth
(Kennedy, 2018).
Public entrepreneurship
Public entrepreneurship is a business venture which is started with the purpose of serving
the general public. Public entrepreneurship combines the resources of both private and
public for the benefit of society.
P2 SIMILARITIES AND DIFFERENCES BETWEEN
ENTREPRENEURIAL VENTURES
Lifestyle venture Small business
venture
High growth
venture
Similarities The main motive is
the growth and
development of the
business.
Lifestyle business
aimed at earning
profits so that it can
achieve the desired
lifestyle for its
owner and
entrepreneur.
Small business
ventures aims at
providing quality
services to its
customers.
It also work for
achieving success by
continuous growth
and development of
its business venture.
High growth
business venture
focused mainly on
achieving growth in
its business.
The activities are
carried on at large
scale in high growth
firm which have the
motive of earning
profits and success.
Differences The aim of a lifestyle
venture is to earn a
level of lifestyle for
the entrepreneur.
Lifestyle firm
employs medium or
large amount of
capital in its
The aim of a small
business enterprise
is to earn suitable
profits for its
survival.
The capital of small
businesses are
limited.
The aim of a high
growth firm is to
achieve continuous
growth in its
business.
Huge amount of
capital is employed
in a high growth

business. business firm.
M1 MULTIPLE RANGE OF ENTREPRENEURIAL VENTURES
IN BOTH PUBLIC AND CORPORATE SECTOR
Entrepreneurship in Public sector
Public sector entrepreneurship is started by the government with a motive to support the
general public or to accomplish a social objective (Dhilwayo, 2017). The public sector is a
combination of public services and public enterprises who are the working of government
such as public roads, electricity department, water supply, telecommunications, etc. The
organizations or the enterprises which are the public organization or a part of the public
sector are either voluntary sector or private sector. Lifestyle and social ventures are
examples of public sector entrepreneurship.
Entrepreneurship in the Corporate Sector
Profit earning is the main objective of an enterprise in the corporate sector by increasing
efficiency and work performance. It undertakes different innovative activities and works in a
highly competitive marketplace (May, 2019). Activities like the development of new
product, services, and technologies by altering organizational processes are undertaken by a
corporate entrepreneur. Small and high growth venture are examples of corporate sector
who work with a profit motive.
D1 SCOPE, GROWTH, AND DEVELOPMENT OF
ENTREPRENEURIAL VENTURES
Entrepreneurial ventures have vast scope in all the sectors of the economy of a country
including public sector, the private sector, service sector, agricultural and allied industrial
sector. Most of the new entrepreneurial ventures start as small businesses whose existence
depend on the amount of profit it earns.
Entrepreneurship involves the development of new products and conducting continuous
research programmes. With research, an entrepreneur brings something new in the market
in the form of product, service, technology or process. The resources are efficiently utilized
with the help of new technologies in the production process.

The growth and development of an entrepreneurial venture are related to each other in a
way that resolving the issues arises for the development of a venture will lead to its success
and growth. Entrepreneurs play a salient role in the success and profitability of a venture
after its start-up. The growth of an entrepreneurial venture is dependent on various factors
such as strategic alliances, new product, joint ventures, innovative activities, employees, etc.
(Domurath, 2011). With the continuous growth and development in its entrepreneurial
sector, UK has become a great entrepreneurial economy which is placed at fourth number
in the world with the support of UK government by various schemes such as UK
Government's start-up loan scheme (Myers, 2014).

LO2
P3 ASSESSING RELEVANT DATA AND STATISTICS TO
ILLUSTRATE IMPACT OF SMALL BUSINESSES ON THE
ECONOMY
In the economy of the UK country, small businesses play an important role which is
considered to be the backbone of the economy. The small businesses in the UK total up to
99% of all the businesses which is 5.2 million in number. They encourage innovation and
brings healthy competition in the market. Every year there is around 55% of growth in the
small business enterprise in terms of sales growth and profitability. Small businesses of UK
create as many jobs as the large businesses which again contribute to the economy by
utilizing human resources efficiently. According to statistics and data report, small
businesses in the UK provide around 16.3 million jobs for local people which covers 60% of
all private sector of UK (Hardon, 2015). The contribution made by small businesses in the UK
economy can be seen in all sector that is from innovation, employment, sales, profit in
national markets to international markets. In the year 2018, the combined turnover of small
and medium business enterprise is estimated as £2.0 trillion.
The London Borough of Redbridge Council is a data controller which provides information
about Employment and businesses of UK. This borough works under the UK Data Protection
law and take the services from the Work Redbridge Team of UK. According to Redbridge
council, there were 655 employees work in Redbridge small business which constitutes 5.7
percent of total businesses employment in the year 2015. The micro businesses provides
employment to 10825 number of employees and constitute around 93.5 percent of total
businesses employment in 2015. Redbridge Council has estimated in the year 2012 that only
36.3% of businesses that started up between 2003 and 2008 had survived. The borough has
taken many steps for promoting new start-ups and other SMEs (London Borough of
Redbridge, 2016).

M2 DIFFERENCES BETWEEN SMALL, MEDIUM AND LARGE
BUSINESSES TO THE ECONOMY ACCORDING TO
RELEVANT DATA AND STATISTICS
The enterprises of the UK with less than 250 employees working in it is known as small and
medium enterprise. There is around 5.2 million small and medium enterprises in the UK
which increases to 5.7 million in the year 2018 (Hall, 2018).
Micro-Businesses of UK covers 96% of total businesses of the economy according to current
data in the year 2018. Such enterprises give employment to not more than 10 employees in
its business which contributes 33% of employment generation in the UK. These enterprise
has contributed to the turnover of the economy by 21% of rate (Rhodes, 2018).
Small Businesses employs less than 50 employees in its enterprise and not less than 10
employees with £10 million turnovers. The annual profit made by these small businesses is
estimated at 1.5 million pounds (Gov.UK, 2012).
Large Businesses covers 0.1% of the total businesses of the UK which are around 8000 in
number. They are the enterprises with not more than 250 employees which contributes
40% of employment generation in the UK. These enterprise has contributed to the turnover
of the economy by 48% of rate (Rhodes, 2018).
D2 CRITICALLY EXAMINING IMPACT OF SMALL
BUSINESSES IN LOCAL, REGIONAL AND NATIONAL LEVEL
The small and medium enterprise of UK plays a crucial role in the economy and contribute
at the local, regional and national level. There are around 1.1 million businesses in London
which employs around 239000 employees in the year 2018. The southeast of the UK covers
874000 businesses of the UK which saw 6% downfall in its number of businesses in the year
2018. London and England cover the largest number of small and medium enterprise in their
region. London has 1.1 million SMEs and England has around 5 million of SMEs in its area. A
small and medium enterprise of the UK has a crucial part in the growth and development of
the regional sector of the country. The merits of smaller scale and greater flexibility is
combined with economies of scale with the help of networking by small and medium
enterprises at regional, global and national level.

Small businesses of the UK generated a large number of employment opportunities for local
people. It is observed in the data and statistics that SMEs provides 53% of jobs each year
which covers 99% of businesses in the UK.
P4 IMPORTANCE OF SMALL BUSINESSES AND BUSINESS
START-UPS TO THE GROWTH OF SOCIAL ECONOMY
The combination of various enterprises of the economy which has a social objective is
known as social economy. The social economy includes enterprises such as co-operatives,
credit unions, non-profit organizations and other types of enterprise. A social entrepreneur
is a person who works for the betterment of society without a motive to earn a profit. When
an enterprise is established with a motive to address a social cause, it is known as a social
enterprise (Gowan, 2015). Various importance of SMEs in the social economy of the United
Kingdom which are explained below:
 One of the greatest impacts of SMEs can be seen in the number of employees that is
generated by SMEs. In 2015, 15.6 million jobs created by SMEs which solves the
employment issues of UK (Balderson, 2016).
 The balance of payment is very important for an economy which is achieved with the
help of SMEs in the UK. The small and medium enterprise of the UK contributes in
around 54% of exports of the country by selling goods and services internationally.
 SMEs bring stability in the economy by connecting resources with growth which
ultimately resolve social issues and brings sustainability.
 SMEs promotes healthy competition in the economy which thrives the efficiency of
other large businesses which help in the growth and development of the overall
economy.

LO3 & 4
SLIDE 1
SLIDE 2

SLIDE 3
SLIDE 4
Entrepreneurs do not only work for earning a profit, but they have other motives as well.
They love what they do and are passionate about their work. They are not afraid of putting
extra efforts or working for more number of work hours.