Understanding Entrepreneurship: Venture Types and Economic Impact

This report delves into the multifaceted world of entrepreneurship, examining various venture types including small businesses, lifestyle businesses, social enterprises, large enterprises, scalable businesses, and second-stage businesses. It provides a detailed comparison of these ventures, highlighting their similarities and differences in terms of goals, operations, and growth potential. The report further analyzes the significant influence of micro and small enterprises (SMEs) on the UK economy, discussing their impact at local, regional, national, and international levels. It emphasizes the crucial role of SMEs in job creation, GDP contribution, and overall economic stability. Moreover, the report explores the need for small businesses and start-ups in driving economic growth, emphasizing their importance in fostering innovation and providing opportunities. The report also touches upon the traits and skills of successful entrepreneurs, including their motivations and the influence of their backgrounds and past experiences on their entrepreneurial journeys. Overall, the report provides a comprehensive overview of the entrepreneurial landscape, highlighting key aspects of different venture types, their economic impact, and the essential qualities of successful entrepreneurs.

UNDERSTANDING
ENTREPRENEURSHIP

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Different kinds of entrepreneurial ventures and their topologies.........................................1
P2. Comparison of different types of entrepreneurial ventures..................................................2
P3. Influence of Micro and small enterprise on economy of UK...............................................4
P4. Need of small business and start-up's for economic growth.................................................6
TASK 2............................................................................................................................................7
P5. Traits and skills a successful entrepreneur inculcates...........................................................7
P6. Entrepreneurial personality influences due to motivation....................................................8
P7. Background and Past Experience can affect Entrepreneurship. ..........................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Entrepreneur is actually a person who can generate something from nothing. He has a
thinking capacity which is beyond any ones imagination and bring so many innovative ideas
which would benefit the society in many aspects. They are the people who work for themselves
rather than working under some one. They can run a business and ready to take any kind of risks
which will come in their way, this provides them with lot of rewards, fame, money and even
sometimes when the idea does not click or work well in the real scenario then there would be big
setbacks also which an entrepreneur has to be ready for. This report discusses about various
types of entrepreneurs present in the world and their unique topologies. There can be so many
factors which affect entrepreneurship either positively or negatively, those factors are local,
regional, national as well as international factors. Background of the person is also a big reason
which may foster or hinder for the person to become an entrepreneur.
TASK 1
P1. Different kinds of entrepreneurial ventures and their topologies.
Entrepreneurship is basically referred to method which includes designing, implementing
as well as executing those plans which are made by them. They start with some enterprise which
is initially small and then offers many products and services in return of money. Individuals
running such type of firms with unique ideas in their head are called entrepreneurs. According to
research which has been carried out on entrepreneurs it was found that they are people who have
willingness and ability to make, manage and motivate others to open up any venture and take any
kind of risk which may come in future. Usually this concept seems to very encouraging as well
as attractive to see someone opening their own business but at times they have to shut down their
business due to many reasons that might include lack of funds, poor business strategy and bad
economic status. It is not that easy to become an entrepreneur without a proper set up and also
support by other sources, else there should also be a backup plan. There are many types of
entrepreneurial venture which includes the following:
Small business: These are known as private corporation which basically consists of few
members in the company and also whose annual income is so less as compared with any regular
size business. According to the government policies any business which is considered as small is
not accustomed to pay any taxes, as they have some preferential policies for such firms.
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Lifestyles business: This business is set up for meeting personal needs of the people and
maintaining their lifestyles and status in the society. They are not formed to bring any difference
in the world with their brightest ideas but they are developed to earn their living to such an extent
that they can enjoy their life to the fullest. They can be investing small amount or large amount
according to their economic status. This is totally a personal type of entrepreneurship which is
done for individual's wish and enjoyment.
Social enterprise: This type of organisation is made for the public of the country. They
need to apply some strategies to improving the condition of the society and provide amenities
which would help in progress of them. These types of firms are formed for the upliftment of
people. But also at times these firms strive for earning money, thus we can say that this type of
firm can be both profit making as well as non-profit organisation.
Big business: This consist of those ventures or companies which have large capital
investment, large number of employees, large labour force with costly equipment and complex
strategies. These are usually firms which carry out huge investments with general instructions
given to the large work force.
Scalable business: These ventures consists of people which tends to start their enterprise
as a small business by carefully measuring all the risks that may come their way and analysing
them and taking steps in forward direction very carefully. They are not risk taker but they
organise their process in such a way that risk factor reduces to minimum. They are those who
improve the profit margin while sales can be increasing at their own level.
Second stage business: This entrepreneur is the one who is creating their own business
starts with a small start which is called primary stage of business, prior to that when the idea gets
clicked and appreciated by the audience then entrepreneur try to expand their business with large
investment and more workforce then that is considered as second stage business.
P2. Comparison of different types of entrepreneurial ventures.
There are similarities as well as differences between various types of entrepreneurial
firms which needs to be discussed. One thing which is common in all types of business is depend
on basic points which include innovation, new idea and risk-taking factor. All these factors need
to be analysed to become a good entrepreneur and properly execute the business well for long
run. Basically, all individual differs from each other in terms of thoughts, financial status and
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capacity to take risks. These are the factors which may differentiate an entrepreneur from
another.
Comparison between small scale and lifestyles business.
Basic Small scale business Lifestyles businesses
Definition These are enterprise with very
small investment and known
as a starting stage of business
planning.
These enterprise may have
small investment or large
according to wish of the
individual who has started this
firm.
Goal To make their own identity
with their idea.
To live a comfortable life with
sufficient amount of money
and make no difference in the
world.
Kind of business Can be seen in any type of
business like construction
firms, retail sector etc.
Can be seen in family business
like shops, restaurants, grocery
stores etc.
Level of growth This can grow high only if the
idea striped the audience and
also if it is scalable in nature.
This firm do not bother much
about growth until and unless
they are leading a happy life.
Comparison between social and large enterprise.
Basic Social business Large enterprise
Definition This are business ventures
which are made for the general
public and provide measures to
provide amenities to them.
This enterprise is made only
for earning money and not
benefiting any section of
people.
Goal Their main aim is to provide
effective methods so that
condition of the people
Their main focus is to expand
their business to a large extent
and get as much success
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improve and support them. possible with least investment.
Kind of business This business includes
working as NGOs or noble
cause organisation which
provide items and services for
benefit of society.
This can run any kind of
business which includes big
showrooms, large industry of
equipment, electricity power
plan etc.
Level of growth This does not need much
growth but wants a better
society around them.
This firm requires large
improvement which can occur
through expansion or by
joining hands with other firms.
Comparison between Scalable start up and second stage company.
Basic Scalable start up Second stage company
Definition These are firms which keeps
an organised manner of
improving quality irrespective
of the success or failure.
This enterprise consist of large
number of people with large
capital and expanded business
strategies.
Goal To improve their performance
by continuous making changes
in the firm and not cared about
success or failure.
This is expanded version of
any small business whose
main focus is to establish with
proper strategies for long term
goals.
Kind of business Can be seen in communication
sector, social media fields etc.
Can be seen in any business
that arise from small scale.
Level of growth This can grow if this venture
put their efforts in right
direction for business.
This firm needs powerful
revenue and equipment for
improving the business.
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P3. Influence of Micro and small enterprise on economy of UK.
Since last decade the craze of entrepreneurship is rapidly growing. Due to
administration's efforts and accomplishments of so many businesses by the middle class people
in the western society which has led to rise in the entrepreneurial actions. There can be various
agencies which are being highlighted which were stated as micro, small and medium but later
became a great pillar to support various other ventures to rise, this agency name is OECD. This
became the pillar of whole economic activity in the world. These types of small enterprise are
occupying maximum number of business in British economic scale. According to the
confederation of British industry all small-scale enterprises are allowed to form their own
potential which will help in contributing to the company as well as country's economy.
SME 's are perfect example of being a transmitter of cultures which would assist in
boosting their trade at local, national, regional and international level. They are the people who
take risk in various situations and contribute a lot in economy of the country. These firms are
also put their hard work in providing many opportunities, that will cause the people to uplift their
standard of living. There is so many effects of micro, small and medium size enterprise on
context that is local, regional, national and international levels. All these are stated below.
Local level
 Providing new jobs.
 Getting income.
 Improving standard of living.
 Support to the local communities existing.
National level
 They add large income and influence in the national GDP.
 Increasing per capita income.
 Stabilising the country’s economy.
Regional level
 This act as means of financial growth.
 Regional improvement of the culture.
 Augmentation in revenue generation.
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International level.
 Global reduction in poverty due to this.
 Reducing gap between poor and rich.
 Required for faster growth of global economy.
In current scenario SME 's are playing vital role in growth of the economy. This basically
accounts for 99% of almost all the activities which are taking place in private sector. They
basically provide employment to more than 15 million people which makes up to 60% of the
total employment in the private sector. The combined annual turnover of SME was calculated to
be approximately 1.9 trillion which was almost 48% of the total private sector in UK.
BPE statistical release, 2016
The number of registrations for VAT and PAYE are also rising, at the office of National
Statistics that records a rise of 2.5 million business which will make it approx. to 45% of overall
private sector. There would be 3 million enterprise which are non-registered with office. Out of
these there would be 2.5 million businesses which are registered and 14% sole proprietorship
including 53% of partnership.
P4. Need of small business and start-ups for economic growth.
Entrepreneurship is basically a concept which thinks of changing the whole business
environment. In the beginning, there is very difficult for any individual to start the business and
easily run it profitable with high impact of globalisation over them and less amount of
government control. This has made it very easy and convenient today to start business of their
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own as everything has become possible, even governments are trying to promote and support
such people who want to start something on their own and there are various organisations which
helps entrepreneurs, so that more ventures could be started and promoted in the country.
Earlier it was such a big deal, only people from strong background and having huge
financial resources could think of starting a business but now things are becoming easy and
advance. Now days these upcoming industries are playing a vital role in growth of the economy
of the country.
In UK, there are almost 90% business activities which are carried out by small and
medium enterprises. They provide stability to the economy and also support in bringing them
out of crises or at times of recession. There are also some policies which are enacted by the
government for ensuring and encouraging micro and small organisation which will cause them to
grow to their fullest potential. Various benefits of MSE are:
 It creates job and more opportunities in the market.
 It helps in generating revenue and income for the country.
 Economic development causes society living condition to be uplifted.
 Reduction of poverty ratio can be achieved.
 Reducing the economic gap between the rich and poor.
TASK 2
P5. Traits and skills a successful entrepreneur inculcates.
There are different skills and qualities which needs to be present in a person for
becoming a successful entrepreneur. In seminars and halls there has been various speakers
which tell us the real factors that a good entrepreneur should have. These traits are mentioned
below.
Passion: This factor makes the person to enjoy whatever he is doing and he could
innovate and bring more and better ideas to improve the business thus success would be for sure
and the work would be up to the mark.
Vision: A true entrepreneur should have a powerful vision who should have a clear idea
about where he sees himself in future. More the surety more will be the efficiency in working
plans.
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Self-Belief: An Entrepreneur is a person who believe in his ideas only then can they
convince others in their strategies and plans. If they would be confident enough for their
planning then only they could give their 100% on that task.
Flexibility: A person needs to be adaptive in nature and should be aware of the latest
trends to make any changes in the business to update it according to current scenario.
Rule Breaking: A successful entrepreneur are basically rule breaker because they do not
work on the fix patterns which are existing from years. They set trends and work accordingly.
Risk taker: For establishing a business the most important thing is risk factor which is
obvious enough to arise that is why a person should have that sort of mind to take risk and
should not panic in case of downfall or tough situation that may rise every now and then.
Craves for learning: Entrepreneurs should have the habit of learning in every aspect
which comes their way. They need to be focuses and aware of whatever they see around
themselves.
P6. Entrepreneurial personality influences due to motivation.
Personality of every individual consist of different amount of motivation requirement
which differs in their attitude and mind set. An entrepreneur contains different types of traits ,
skills and abilities which would differentiate them from others. There can be various methods
which are used for motivating a person's personality on individual level. There are various
aspects in which the entrepreneur personality would reflect for increased motivation level and
also improving the mindset. Those factors are stated below.
Upbringing: If the person is from a family who has a strong background then he would
think of adopting various entrepreneurial values and aspects very easily in comparison to other
people. Since parents are very strong influence to any one for learning basic instincts from them
that is why if parents would play an important role in either supporting of entrepreneurship
values or not supporting it.
Lifestyles: People come from different background and lifestyles which develops their
brain to build unique perception about the entrepreneurship and its aspects.
Experience: People who have experience in their life could help in better understanding
of the situation and analysing the problem which arises in their way..
Culture: This can be a major factor which would totally change the mindset of the
person and he will change his thinking according to his ethics, values and mindsets.
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P7. Background and Past Experience can affect Entrepreneurship.
Entrepreneurial quality and capabilities would be developed in short period of time. This
would rather take a lot of time, efforts and environment to improve their skills and talent.
Basically, person's perception, passion, motivation, background and past experience would
basically play major role in building up such quality or not. There can be many ways in which
entrepreneur approach to solve any issue. For an individual, his background consists of
upbringing, cultural values, environment and lifestyles as well as experience he had in past. If a
person had a past that would be supportive and in favour of entrepreneurship then automatically
it would foster him to think of becoming an entrepreneur. These factors would be encouraging
and motivating for a person to adopt entrepreneurship.
There are different people who come from various background and also who have
excelled in their field to become world's successful entrepreneur. For example, if we can take
then there was a boy from small town who always dreamt of becoming a successful entrepreneur
and now he has worked towards it and became world's richest person, his name is Bill gates. He
had passion for his work, had belief in his idea and had strong mindset to withstand any kind of
risk that may come his way as he was determined to do something big in life, so he succeeded.
There are few qualities which would foster entrepreneurial quality in a person, those are:
 Education.
 Family support.
 Environment.

 Experience.
CONCLUSION
From the above report, it has been concluded that entrepreneurship is very important
activity that would assist in stabilising the economy of the market shocks for aiding in the
development in the communities. There are various methods which can be adopted by the
government for boosting such activities. In later parts of report there are traits mentioned which
defines a successful entrepreneur. Their upliftment and past experience help in improving their
qualities overtime.
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