Entrepreneurial Ventures and their Impact on the UK Economy

Desklib provides past papers and solved assignments for students. This report analyzes entrepreneurial ventures and their impact on the UK economy.

[ Entrepreneurship and small business management]

Contents
INTRODUCTION............................................................................................................................. 2
LO1.................................................................................................................................................3
P1 DIFFERENT TYPES OF ENTREPRENEUR VENTURE AND THEIR TYPOLOGY..............................3
P2 EXPLAIN SIMILARITIES AND DIFFERENCES BETWEEN DIFFERENT TYPES OF ENTERPRISES....6
LO2.................................................................................................................................................8
P3 INTERPRET AND ASSESS RELEVANT DATA AND STATISTICS TO ILLUSTRATE HOW MICRO
AND SMALL BUSINESSES IMPACT ON THE UK ECONOMY..........................................................8
P4 EXPLAIN THE IMPORTANCE OF SMALL BUSINESSES AND BUSINESS START-UPS TO THE
GROWTH OF THE SOCIAL ECONOMY.......................................................................................11
LO3 & LO4.................................................................................................................................... 13
CONCLUSION............................................................................................................................... 27
REFERENCES.................................................................................................................................28

INTRODUCTION
Entrepreneurship refers to the process of setting up the business in order to earn a potential
profit and considering a significant amount of risk. The report highlights the scope of
entrepreneurship and demonstrates set-up of different business ventures. It also throws light
on different types of entrepreneurship venture and explores the business impact of small
business on the economy. It also considers the entrepreneurship skills or traits to foster growth
and assess strategies in order to gain success in the market (Kabiri, 2014).
The report throws light on the conduct of business activities with respect to London Boroughs.
It consists of 32 local district or authorities that support the strategic reorganization of the
country. It is a collective organization that provides services on behalf of its authorities. The
strategic goal of the council is to provide services and handles responsibility related to
legislation and funding (Elmer and Denings, 2016).
The purpose of this report is to provide a recommendation to the council and initiate an action
plan in order to encourage existing business activities. It also provides an understanding of
different barriers to start up and reflect the development of growth of entrepreneur venture in
the context of London Boroughs.

LO1
Entrepreneurship refers to the capability of organizing and developing a business venture along
with the associated risk so as to earn a potential profit. In other words, we can say that starting
a new business is called entrepreneurship (Blanker et al., 2015).
Entrepreneur: An entrepreneur is an individual other than an employee who takes the
initiatives to run a small business and also assumes risk and profit associated with the business
(Audretsch, 2012).
Intrapreneurs: An Intrapreneurs being a manager in the company takes initiative for the
development of innovative product and marketing. Intrapreneurs are the internal employee of
the company.
P1 DIFFERENT TYPES OF ENTREPRENEUR VENTURE AND THEIR TYPOLOGY
Entrepreneurship venture: this refers to the initiation of the predetermined business run by an
entrepreneur with limited resource and planning. The business venture is capable of generating
more wealth and thus contributing significant growth to the economy (Barringer, 2015). The
different types of the venture of the entrepreneurship are as follows:
Independent venture
An independent venture is free from the structure of the economy. The employees are free to
involve in the decision-making process and also provide suggestions with regard to
improvement in the existing business. Furthermore, the action plan and other activities are
decided independently under this type of venture. The council committee of London takes a
decision on behalf of all member authorities in the city of London.
Lifestyle venture
The venture firm focuses on making people's lives better by providing them with reasonable
living standards. The lifestyle firms have the capability to compete with the other organization.
Also, they undertake the risk in order to prospect growth by managing the business operations

successfully. Moreover, the lifestyle venture supported the council like London Boroughs to
provide a better life for the patients in the UK (Wright, 2014).
Small business entrepreneurship
These enterprises are very small in size and generally, operate the family business. The
enterprises employ over a small number of people to earn profits. The small business generally
includes grocery stores, travel agent, plumber, electrician, consultant and other similar
business. The business ventures receive funding through family, friends and other small loans.
Also, the maximum investment in the plant and machinery can be up to 1crore. The London
Boroughs council receives its core funding from the local government so as to spend on local
services and other capital programs.
Corporate venture
The strategies policies of the corporate venture help to reach the new market and achieve
success in the industry. Also, the entrepreneur supports the concept of innovation in order to
achieve a competitive advantage in the market. The London Boroughs council delivers a range
of corporate services to the Londoners in order to achieve the strategic goals of the council
(Chemmanur, 2014).
Growth venture
The growth ventures are generally big in size and focus on expansion and development of the
enterprise. These firms plan strategies to achieve growth in the next 5-10 years. They arrange
their capital through equity finance, business angels and venture capitalist. Thus, it will help
London Boroughs to achieve sustainable growth in the market (Elmer and Denings, 2016).
Innovative venture
The main motto of the entrepreneur is to introduce new goods and methods of production in
order to discover the new market. Such type of entrepreneur always looks for change and
development in business activities.

The London venture also runs an innovative program with the purpose of driving sustainable
change and transformation across London. They take the initiative to produce private and third
sector solutions to the public sector.

P2 EXPLAIN SIMILARITIES AND DIFFERENCES BETWEEN DIFFERENT TYPES OF
ENTERPRISES
Basis Public Enterprises Private Enterprises Social Enterprises
Roles The public
enterprises comprise
of government
authorities and
responsibilities to
provide services to
the customer at an
affordable price.
The private
corporations made
their own policies in
order to gain
potential profit from
prospective
customers (Means,
2017).
The sole aim of the
enterprise is to work
for the social
development and
better wellbeing of
the people in the
country.
characteristics The government
authorities provide
grants and financial
assistance to the
start-up companies so
as to ultimately
contribute to the
economic growth of
the nation.
The main
characteristic of the
private organization
is to earn huge
amount of profit by
devising competitive
strategies to attain
the goals.
These enterprises are
in the form of a non-
profit organization
that facilitates social
practices in the
economy (Means,
2017).

Some of the similarities discussed below:
o Customer service oriented
All of the sectors are customer oriented and believes to provide satisfactory services to
the customer base. The operations of public, private and social are customer driven in
order to ensure efforts in an effective manner (Hopkins, 2012).
o Open to change
All of the sectors are taking initiatives to adopt the dynamic changes including the
technological advancement in the industry. Thus, the willingness to change is the true
force for improving business operation.
o Opportunities for growth
The public, private and social sector provides immense opportunities for career growth
and development. The can ultimately lead to the employee's retention and
improvement in all the sectors. This will create a win-win situation from the end of
employer and employee (Hopkins, 2012).

LO2
P3 INTERPRET AND ASSESS RELEVANT DATA AND STATISTICS TO
ILLUSTRATE HOW MICRO AND SMALL BUSINESSES IMPACT ON THE UK
ECONOMY.
The UK economy consists 99% of small and medium enterprises that employ over 60 million
people. The SME can employ a number of employees less than 250 and thus contributing to the
economy of the nation in a significant manner. Also, small and medium enterprises generate
good revenue in the UK market. The enterprises are responsible to create a gross job in the UK
economy and act as a driving force for wealth creation and productivity in the economy (Ward
and Rhodes, 2014).
There are 60% of SME business that seeks fund through external funding by way of bank loan,
government grants and others. These firms tend to manage their working capital and purchase
assets in order to grow the business.

Figure: Role of SME in the UK
[Source: Brammer et al., 2012]
The UK economy is majorly dominated by small and medium business. Also, the small business
and startup positively contribute to the economic growth by encouraging innovation in the
industry. The best example of digital innovation can be like Uber, Funding circles and another
group that set a competing base for the other business.
Also, new solutions and ideas bring more opportunities in the financial sector. The financial
sector in the UK economy is flourishing and providing funds to every sector of the economy.
Moreover, the government plays a major supportive role to flourish the concept of
entrepreneurship. The design of tax structure and climate can provide the right climate to start
up the business.
The turnover of SME’s in the UK Constitutes around £1.8 trillion in the private sector. The SME's
receives financial support from UK government in order to facilitate progress and growth in the
economy.
Figure: Share of enterprises in the UK

[Source: Syed et al., 2012]
Thus, the supportive financial environment and better funding to the SME’s can provide ways to
operate in the economy. Furthermore, innovative ways of business funding’s can provide
advantages and opportunities to the owners of small business in the UK economy.

P4 EXPLAIN THE IMPORTANCE OF SMALL BUSINESSES AND BUSINESS START-
UPS TO THE GROWTH OF THE SOCIAL ECONOMY.
A social economy comprises the entrepreneur that works for the development and well-being
of the society. The SME’s plays a vital role in the development of the social economy. The main
purpose of the entrepreneur is solving various social issues and improves the standard of living
for the community (Dees, 2017).
The economic growth is driven by the collective efforts of different enterprises. The social
ventures contribute to the economy by improving the quality of delivered services so as to
maximize customer satisfaction. The mission of SME’s is to improve the productivity by the
combined efforts of small business houses. Also, these firms provide employment opportunities
to the UK people and provide benefits in terms of huge contribution to society.
The SME’s can personify the data which requires commercial opportunities to the marketable
product or services. The major services that are provided to the startups can direct on the
governmental goals. This can be attained with help of the growth and development of the
business with the effective measures (Burn, 2016).