Entrepreneurial Ventures and the UK Economy: A Report

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Entrepreneurship and small business management
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Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................4
A...................................................................................................................................................4
B...................................................................................................................................................8
Task 2.............................................................................................................................................12
Presentation................................................................................................................................12
Conclusion.....................................................................................................................................25
References......................................................................................................................................26
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Introduction
This report aims to understand the meaning of entrepreneurship for small businesses located in
the economy of the UK. In the below report the discussion on the range, description and the
various type of entrepreneurship would be explained. In the below report various abstracts and
barriers which affects the start-up business would be illustrated. The report also will analyze the
influence of small businesses on the economy of the UK. The influence of this small
entrepreneurship would be explained with the help of some beneficial statics. The entrepreneurs
need to involve some specific characteristics to become successful for the organization. Some
personal characteristics will also be explained in the below report. The impact of personal
entrepreneurship tendency could be seen in the report and how they affect the organizational
environment it can also understand by the help of the below-described report. The small
businesses play a very important role in a country’s economy and they are also helpful for
increasing the GDP of a country. A particular country needs to increase its small businesses for
improving the economic condition of their country.
In the below report some risk and rewards factors in the entrepreneur process will be analyzed.
These risk and reward programs could be introduced at the starting point of a new venture. The
report would become beneficial for understanding the different ventures of entrepreneurship.
How the entrepreneurial ventures can be managed it can also be understood by the help of the
below report. There will be some examples of successful entrepreneurs that can influence other
people to give their best in a particular process. In general, the below report would analyze the
role of small businesses for the economy of the UK and it will also demonstrate the different
characteristics of a successful entrepreneur.
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Task 1
A
Scope, development and growth of entrepreniual ventures
The small businesses provide greater scope to increase entrepreneurial activities. An
entrepreneur contains many possibilities for selling the products in comparison to manufacturing
them. The small entrepreneurs can achieve a better level of success by using their entrepreneurial
skills. The smaller firms contain more productivity than the bigger one. It also contains low labor
cost and excellent efficiency. The scopes of entrepreneurship are classified into three parts:
Industrial Sector:
• Small enterprises maintain an important place in a country’s economy. The role of small
enterprises is vital in the industrial sector. According to the report of 1998, the contribution of
small enterprises in industrial production was over 40%.
• The small scale industries enlarged the supply of manufactured products and it also increased
the promotions of information and the skills of entrepreneurship. The small industries provide a
great opportunity for the different personalities that want to become a great entrepreneur.
Entrepreneurs can use the latest technologies for making them better and beneficial products for
consumers.
• An entrepreneur can increase the profit by using different department available in the small
industry. The small industries are selling almost 384 different products for making better sales
revenue (Bae, et. al., 2014).
Agricultural and allied industrial sector
• There is a wide opportunity for the entrepreneur's activities in the sector of agriculture. By
managing a better relationship between the allied industry and agricultural sector the rustic
entrepreneurs can improve the opportunities in the part of farming, agricultural dispensation, and
marketing. The IRPD program was provided a priority from the government which makes
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provides the credit facilities to the small entrepreneurs. The re-financial facilities also could be
provided by this program.
• The trading activities can be seen in the wholesaling and retailing and it can be a domestic of
out of the country markets. The retailer entrepreneur always tries to make better products
available for their consumers. The environment of a business can be affected by trade policies.
The trade policies of a particular country always try to promote the export process. In return for
their exports, the entrepreneurs get effective incentives and facilities (Al-Atabi, 2014).
The entrepreneurial ventures can be made after thinking some innovative ideas or planning. The
important ventures of entrepreneur can be:
Survival ventures: The basic role of this kind of venture is to meet with the venture’s financial
responsibility. Many of start-up businesses ventures connects with the survival entrepreneurship
where their long term goals can get a stability in the business environment. The survival ventures
can be classified by:
 Cost cutting
 Laying off workers
 Employment freeze up
 A thinking of conservation of the present situation of issues
 A fear of connecting with the future strategies.
Lifestyle ventures: In this type of venture depends upon the skills of the founders, their energy,
contact, and founder develops them to increase the particular talent of their employees. These
kinds of business have a particular location of work. They don’t particularly focus on the growth
of their business. Mostly the amount of workers remains stable in this kind of venture.
Aggressive growth venture: These kinds of ventures are related to the technologies and these
ventures are having the stronger capabilities of better innovations which can increase the growth
of enterprises. These ventures can be helpful for entrepreneurs to search out the new
marketplaces. These kinds of ventures can be national and international both. The ventures can
provide growth to small enterprises at the national and international level (Mauchi,2014).
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Similarity of these ventures between each other
Basis of
Similarities
Survival venture Lifestyle venture Aggressive growth
venture
Investment In the survival
venture the
entrepreneur make
available them by
themselves.
The fund can be
arranged by the
members of family
Same with the other
ventures.
Ability The selling skills are
needed at this stage
In the lifestyle
venture the
operational and
selling skills both
are required.
All type of skills are
required at this
stage.
System of reward The weekly reward
system is used in the
survival venture
The reward program
are based upon the
salary criteria of
people
Te reward programs
are very fair at the
aggressive growth
ventures.
Differences amongst these ventures
Basis of Differences Survival venture Lifestyle venture Aggressive growth
venture
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Investment in the
technical area
The investment not
done in the
technical factors
In these venture
very small amount
of money can be
invested as the
technical investment
The investment in
technology is higher
than any others
which becomes a
cause of higher
development
Duration of Time There is a weekly
time for these kind
of ventures
The monthly time
period can be seen
in this kind of
ventures.
The time duration in
this kind of venture
is basically more
than 2 years.
Personality of
venture
There is a
temporary nature of
this kind of ventures
and they not so
much focuses on the
future development
of enterprises.
These venture
provides help to the
entrepreneurs to
tolerate the
expenses of their
family (Mpofu and
Sauti, 2014).
There is a big
importance of
products in this kind
of ventures. The
ventures can be
affected by the
current market
situations.
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B
Impact of small businesses on the economy of UK
The different kind of businesses provides their negative and positive impact on the national and
international economy of a particular country. The social economy can be affected by this kind
of business. The small business is essential for the growth of an economy and they play a vital
role in for the country’s economy. The impacts can be in a structure of social, political,
environmental and cultural. The importance of these kinds of small businesses in the economy of
the UK can be understood by the statics. In the year 2018, there were almost 5.6 million small
businesses started in the UK’s economy. The ratio was lower than the previous year and the level
of the private sector also decreased by 0.5%. The level of employment in the private sector also
increased by 2%. At a time almost 2000 small businesses were closed from the economy of the
UK but now a time there are almost 2.2 million small businesses that are successfully running in
the economy of the UK.
Impact of small business on the social and national economy
In the economy of the UK, there were almost 99.3% of businesses analyzed which also includes
99.9% small and large type of organizations. The rate of small business employment was 16.3
million and it was almost 60% of all private-sector employment. The overall turnover was
recorded almost £ 2.0 trillion which was 52% of all the private sector’s revenue. The national
economy of the UK highly affected by the small businesses of their country. The small
businesses of the UK are containing a responsibility to provide a better level of employment to
their population. The small businesses of UK are able t provide almost 15.2 million jobs to the
population. The micro-businesses of UK are improving their business with the help of small
organizations. At the recent time, almost 5 million jobs can be found at this format.
The other private business increased with small percentages in comparison to the other small
businesses. This the second age of small enterprises in the UK. According to a research it was
founded that almost 6% of small business in the UK can provide a higher economic growth to
the country. It will gain the employment rate between the year 2002 and 2008. The businesses
which are containing almost 10 people are increasing in the economy of the UK. They were
enlarged with a rate of 20%. There is also the critical influence of small businesses on the
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economy of the UK. The small enterprises can be critical in the activities of job creation,
supporting the community and to the entrepreneurship.
The small enterprises are not able a higher amount of revenue for the economy of the UK in
comparison to large enterprises. They are the internal part of the economy of the UK and they are
developing some inflammation which is not good for the economy of the UK. The corporate
sector could be affected by these kinds of tendencies. The TCG consultants can provide some
advice to the small and medium enterprises of the UK. Both negative and positive impact can be
received by a country by small enterprises (Royo, et. al., 2014).
Impact on the social economy
The small economy also affected the small enterprises of the UK. The importance of small
businesses can be seen in the small and rural areas of the UK. It provides economic benefit to the
country. In a small town the small businesses can survive limitedly and rather than in the big
cities they can broadly increase their services and a wide range of revenue can be earned by the
small enterprises. In broad areas, small business enterprises can achieve more customers and
unique experiences. The small business also provides better employment opportunities in the
community.
The small business provides help to the local economies and provides new ideas in which a
business can be established. Economic growth can be enthused by the help of small businesses.
The employment opportunities help to grow the economic growth on a better level. The
entrepreneurs of small businesses always try to attract people who are having innovative ideas
and having the willingness to produce and innovative products. The small business always tries
to adapt the different changes included in the country’s economy it is because they are more
customer-oriented rather than the large businesses. The small enterprises of the UK contribute to
the rate of tax to their respective government and it plays a vital role in their country’s growth.
How can the large and small enterprises contribute differently it can be understood by the help of
below table (Nie, 2016).
Different between the small and large organizations
Basic of different Small enterprises Large enterprises
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owner The impartiality mostly
detained by the founder or
family
These could be public investor
organization which held
impartiality.
Decision making process Mostly made by the owner of
the organization.
The decision making process
can be distributed amongst
organizational chain of
command
Customer base They have generally their
local customer base which
includes the local market of
economy
They have a global market
with miscellaneous
consumers.
Personal development
opportunities
They contains restricted
personal development
opportunities
They contain numerous
development ways and
different development
programs.
Employment options The small enterprises usually
have small amount of
vacancies in their job
environment
The large enterprises contain
different departments which
makes a great number of
vacancies for the employment.
Innovation The small enterprises contains
limited number of innovations
and new ideas because there is
no need of bigger innovation
according to their size
The large enterprises need
more innovative ideas and
planning because they have
many departments included in
their environment.
Working environment The founder or owner decided
all the rules and policies for
the organization which need to
be followed by their
employees
In the large organization the
policies and rules are well
defined and well organized.
They also contain different
type of corporate culture and
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values.
Risk and Rewards The small business makes
their reward policies according
to their sales revenues and
according to the share of
market. The reward policies of
small enterprises can be
unpredictable because their
grow can be decrease and
increase at various points.
The larger organization
contains higher level of risk
but the organization also
rewards for the contribution of
their employees. In the large
organization employees
always contain a fear of being
fired from the organization
(Legg, et.al., 2015).
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Task 2
Presentation
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