Analysis of Entrepreneurial Ventures, Economic Impact, and Skills

This report provides a comprehensive analysis of entrepreneurship and small business management, covering various types of entrepreneurial ventures and their relationship to the typology of entrepreneurship, including small businesses, large enterprises, social enterprises, and scalable enterprises. It highlights the similarities and differences between these ventures, focusing on their objectives, capital requirements, and operational scales. The report also interprets data and statistics to define the impact of micro and small businesses on the economy, emphasizing their role in job creation and economic growth, especially in the context of Brexit. Furthermore, it discusses the characteristics, traits, and skills of successful entrepreneurs, examining how background and experience can either foster or hinder entrepreneurship. The report concludes by underscoring the importance of supporting entrepreneurial ideas to boost a country's economy.

ENTREPRENEURSHIP AND
SMALL BUSINESS
MANAGEMENT
1

Contents
TASK 1............................................................................................................................................3
P1 Different type of entrepreneurial ventures and their relation to the typology of
entrepreneurship..........................................................................................................................3
P2 Similarities and difference between entrepreneurial ventures...............................................6
TASK 2............................................................................................................................................7
Interpretation of relevant data and statistics to define how micro and small businesses impact
on economy.................................................................................................................................7
P4 Importance of SME to growth of social economy.................................................................9
TASK 3..........................................................................................................................................10
P5. Characteristics, traits and skills of successful entrepreneurs..............................................10
P6. Aspects of entrepreneurial personality depict motivation..................................................10
TASK 4..........................................................................................................................................11
P7: Background and Experience can hinder or foster Entrepreneurship..................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Entrepreneurship includes a concept of taking risk and innovate new things as to attract
large base of customers and gain profitability on simultaneous manner. An entrepreneur is
mainly a person who initiates new business idea with the risk element in order to gain different
types of developmental opportunities. Entrepreneurs act as a one of the strongest element in a
country economic segment as they are the major source of revenue generation within small
medium and large scale. Thus, it becomes essential for a country to support entrepreneurial ideas
in order to increase country economy at great base. In this report formative discussions have
been made on, concept of entrepreneurship along with different types of entrepreneurial ventures
in public-private segment. In addition, this report covers impact of entrepreneurs on a country
economy along with different types of traits and skills which is required to be a successful
entrepreneur.
TASK 1
P1 Different type of entrepreneurial ventures and their relation to the typology of
entrepreneurship
Entrepreneurship acts as one of the most important segment in a country overall economic
development, as entrepreneur effectively contributes their contribution in growth of a country by
offering contribution in social development. An individual who initiate new ideas and generate
new products and services with risk element are termed as an entrepreneur. Their main motive is
to accomplish goals and objectives in a well-defined manner by putting various efforts mention
below there are different forms of entrepreneurs are defined:
Basic Entrepreneur Intrapreneur Manager
Meaning An individual who
initiate new ideas and
lead towards setting up
own business unit in
order to satisfy
customers and generate
profit.
It is related with an
employee within a business
enterprise who is required
to introduce new services
and products.
A manager is an
individual who engage in
the functions of operating
management activities
which is related to
planning,organizing
directing and controlling.
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Arrangement
of capital
Major source of capital
for entrepreneur is from
family, friends and
owned capital.
As to introduce new
services and products there
is a requirement to allocate
funds from employer.
As to conduct activities
and functions, capital are
arranged from internal
and external sources that
can be employees,
creditors, issuing of share
and shareholders.
Organisation They are mainly a
newly formed
organisation.
It is mainly in the form of
already established
organization.
This organization can be
newly formed and
existing.
Dependency Dependency of an
entrepreneur is
independent person.
Dependency of an
Intraprenuer is a dependent
person.
Dependency of a
manager is an
independent person.
In this modern world there are numbers of entrepreneur who initiate new business idea
with risk factor as to gain more advancements against competitors thus, it is recommended to an
entrepreneur to always take advantage of new innovations in order to contribute in economic
development. Mentioned below there are numerous form of Ventures:
Small business in this form of business segment there is a requirement of small amount
of capital to initiate business activities. Small business is mainly established by a sole individual
with an motive to generate profit by providing satisfactory products and services to customers.
Major motive that has been hold by small business segment is to gain large base of profitability
for livelihood. This form of business organizations includes less than 50 employees along with 2
million Euros of net worth. For example, Orion electrotech Limited. Small business
organizations are not having much wider scope as they only operate their business for profit
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motive. Major contribution of small business sector is in manufacturing and construction
services.
Large Enterprise in order to initiate this form of enterprise there is a requirement of
huge amount of funds which helps them to expand their services in different market regions.
Major motive that has been hold by large Enterprises is to expand their area of their business
services while taking risk in order to earn more and more profit. Large business organizations
have at least up to 5000 employees along with 1.5 million Euros of annual turnover. This form of
organizations mainly has much wider scope as they perform their business with an aim to expand
their market segment along with generating more profit. For example, Tesco and Mark and
Spencer’s, these organizations perform their business on large scale with a motive to serve those
areas which are still untouched. Major development of large Enterprises is in operating the
business in different geographical locations as to generate more amount of foreign currency ratio.
Social Enterprisesorganization within this segment operate the functions with the motive
to provide social welfare and development. This Enterprises are mainly run by trustees and group
of persons who are willingly combined to provide contribution for society. In this arrangement of
funds are from large private organizations, as theseorganizations effectively want to increase
their goodwill. Examples of organizations in social Enterprises are save the children and Oxfam
Scalable Enterprises individuals who do not want to operate their business in small
business segment initiate their own scalable business. In this they are mainly tend towards
offering qualitative goods and services in order to maximize profit with an increase in overall
sales volume. For instance, partnership and automate solution. Scalable enterprise mainly has
limited scope as in this business operates with concern of all partner’s. Main focus of this
business is to develop business growth.
Types of entrepreneurship
There are different types of typologies in entrepreneurship that perform their business
with the motive to increase business growth by making profit. Mentioned below there are some
certain typologies are defined:
Lifestyle enterprises in this type organization are mainly concerned towards living
standards of individuals along with lifestyles. Major motive of Organization in this is to
effectively improve living standards of individuals by giving them best business. In the segment
organization provide different types of job opportunities to individuals and local peoples.
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Growth firm in this type of business organization, major motive is to gain maximum
amount of profit and revenues. In addition, with this growth firm entrepreneurs initiate new
business ideas as to effectively increase profitability and productivity. Entrepreneur pledgee new
idea with the motive to satisfy customers’ needs and demands in best effective manner with an
aim to simultaneous increase in productivity and sustainability.
All these typologies are mainly interrelated with each other as they operate their
functions with a motive to increase market stability and business growth. Along with this,
common objective of all these organizations is to effectively contribute and develop a country
economy by performing the business operations in different scale.
P2 Similarities and difference between entrepreneurial ventures
There is different form of entrepreneurs who perform their operations in small, large
scalable and social segment. All these segments performed their business with innovative ideas
in order to gain more stability in Marketplace. Mentioned below there are some differences and
similarities in between these ventures are:-
Similarities between small, large, scalable and social entrepreneurs
 All entrepreneurs effectively perform their operations with the common motive to
develop business while taking risk as lead towards more growth prospective.
 Formative aim of all the entrepreneurs is to increase profit maximization rates by
performing business activities in well effective manner.
 They take advantage of new and innovative ideas and implement the same on their
organizational functions in order to compete with competitors and gain more competitive
advantages.
 All the entrepreneur is mainly performing their business with the motive to effectively
satisfy needs and demands of customers in best effective way as to generate their loyalty
against organizations in order to ensure long-term sustainability.
 Entrepreneurs are mainly tending towards maintaining sustainable business model by
providing business facilities to customers in best effective way.
Difference between small, large, scalable and social entrepreneurs
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Basis Small size Large size Social Scalable
Meaning This types of
business are
operates at small
level.
It operates
business at large
level by focusing
on location.
It operates
business business
for society at
wider opportunity.
This type of
entrepreneurs run
a business at scale
level which means
precise area or
location
Objects Its main object is
to earn profits by
performing
operating function
of business
industry.
Its aim is to
expand the
business or
effectiveness by
operating function
at different places.
Its aim is to work
for society and
satisfy them by
providing them
best products and
services.
The main goal is
to improve the
profits by
increasing the
operating
activities.
Capital It requires small
amount as capital
to operate the
business.
It requires huge
amount as capital
to set the business
or further
activities.
It requires to
arrange funds
from society who
works for social
welfare.
It does not
necessitate huge
amount to start up
their busienss.
TASK 2
Interpretation of relevant data and statistics to define how micro and small businesses impact on
economy
There are different types of small and micro business Enterprises those who are operate
functions in a market place. These Enterprises mainly have quite small sizes and are not having
more than 50 number of employees within their organizational working place structure. These
organizations are mainly run by sole proprietors and partners. Small and micro level business
organizations effectively provide job opportunities to local individuals that effectively helps a
country to increase per capita income while decreasing poverty ratio. Thus, it is required for a
country to effectively support entrepreneurs those who are performing their operation in micro
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and small business segments. As with the help of this country can effectively able to increase
skills and capabilities of these entrepreneurs and lead them towards coming up with more
successful business ideas. Major motive that has been hold by entrepreneurs in this segment is to
generate profit as to effectively improve lifestyle. In addition, with this it can be said that major
motive of entrepreneurs is to provide satisfaction of their basic needs along with Livelihood.
Further one of the main aim that has been hold by these entrepreneurs is to grow Nation
economy as they know the fact that if a country grows then they can able to gain more
developmental opportunities. These entrepreneurs mainly take advantage of new business ideas
and provide products and services in best effective manner as to provide satisfaction to large
base of customers.
Source: Impact on small businesses, 2017
It has been evaluated that situation of brexit effectively impact of on business
performance of small and micro level business segment this lead towards decrease in economic
growth of nation. Thus, it has been advised to government to effectively support small and micro
level business sector as they are the base of all business segments, as they provide raw material
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and Essential elements to large organizations. With the help of this UK Government can
effectively able to generate employment opportunities and can further increase per capita income
of individual. It has been evaluated that overall contribution of small and micro business segment
is up to 14.8% in overall economy of United Kingdom. Apart from this employment opportunity
that has been offered by this segment is up to 23.4 person that can effectively lead UK
strengthening their Global Position.
P4 Importance of SME to growth of social economy
Small and medium sized enterprises as well as ventures have a massive contribution in
the growth of an economy and also it directly contributes in wholesome development. In this
regard, growth of economy of UK largely owes to the introduction of SME’s in the nation. This
country is ascertained to be a home to several small business and ventures which aid the country
to attain stability and inflate the economic growth rates year by year. Such business entities
contribute to growth of UK as follows:-
 Standard of living: The primary significance of SMEs is that they upgrade the living
standards of people of a country by giving them employment opportunities and
encouraging them to work in local country rather than leaving the nation to work
somewhere else. By provision of such work opportunities, small businesses and ventures
ensure the growth of economy of United Kingdom.
 Innovation: SMEs are found to be the biggest innovators. Such entities make
use of innovative and unique practices or processes or come up with such offerings that
are exceptional. This provides aid to them in giving a push to the economic status of UK
owing to the fact that customers possess likelihood towards innovation and work towards
ensuring that large number of people intends to purchase such offerings of SMEs.
 Low overhead: SMEs operate at small scale which results in decline in the
amount of overheads of company. Further this amount is low because of their low scale
of operations which decreases the cost of lightning, rent and heating. Consequently cost
of production decreases and profit increases. Enhanced amount of profits give a boost to
the economy of United Kingdom.
 Provision of employment to local people: One of the most significant
contributions of small businesses to the economy of Britain is by way of rendering
employment to local individuals who otherwise seek to move to other place in search of
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potential job. SMEs give job to semi skilled or unskilled workers and then render them
training to upgrade their skills and expertise. Such individuals if not hired by SMEs
otherwise generally do not get recruited and selected by large companies of UK.
TASK 3
P5. Characteristics, traits and skills of successful entrepreneurs
The person who has the ability to take risk to pursue their passion is referred to as an
entrepreneur. In this regard, the traits, skills and characteristics of Richard Branson and J. K.
Rowling are as follows:-
 Characteristics
 Belief: One of the most important characteristics found within the most successful
entrepreneurs is found to be self belief in one’s abilities, skills and performance. It is
considered as a motivating factor for the individuals as they develop a positive mindset
regarding their capabilities. In this regard, JK Rowling as well as Richard Branson has
been renowned for possessing high extent of self belief and tackle failure and anxiety
with positivity and zeal.
 Traits
 Creativity: This demonstrates the extent to which the entrepreneurs have a unique and
innovative mindset in order to display creativity at times of executing tasks and activities
of business. JK Rowling as well as Richard Branson was renowned for their creativity.
Both of them indulged in projects that showcased it. JK Rowling's 'Harry Potter' still
gains popularity among kids while Richard has also been linked to projects varying from
entertainment to humanitarian schemes.
 Skills
 Learning Skills: It is usually seen that entrepreneurs are keen learners who always seek
to gain knowledge from every phase of life. They learn from their environment,
observation, analysis, friends, family, acquaintances and acquire a huge knowledge base.
This can also be seen in the lives of JK Rowling and Richard Branson who looked upon
their mistakes as stepping stones and learn from them so as not to repeat them in future
course of time.
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P6. Aspects of entrepreneurial personality depict motivation
The personality of an entrepreneur consists of a number of characteristics, traits and
skills. This includes motivation, self belief, cognition, values etc. In this regard it is essential for
an entrepreneur to stay motivated and keep a positive mindset. Ocean model of Personality is
used below to demonstrate the manner in which aspects of entrepreneurial personality depict
entrepreneurial motivation and mindset.
Openness: Entrepreneurs are found to be highly energetic and zealous personalities who
constantly seek to gain knowledge about new things. Such personnel possess great extent of
openness to undertake new projects and thus illustrate their motivated mindset.
Conscientiousness: This illustrates that entrepreneurs are highly self-disciplined and
ambitious so as to ensure the goals and objectives stipulated by them are achieved in a timely
manner.
Extraversion: This depicts that entrepreneurs are truly energetic, assertive and
emotionally reactive towards environment. This illustrates their motivation level and the manner
in which their mindset seeks to be positive at all times.
Agreeableness: This defines the extent to which entrepreneurs are willing to cooperate,
demonstrate empathy and have a healthy personality which has a nature of agreeableness
towards others. This reflects positivity and inflated levels of morale.
Neuroticism: This is the factor that demonstrates the extent to which entrepreneurs
are successful in having a control over their emotions. They stay stable which reflects that they
are highly motivated and do not let anger or frustration out-power their general sense.
TASK 4
P7: Background and Experience can hinder or foster Entrepreneurship
A number of events and situations unfold in the lives of individuals which posses a large
scale influence upon personality in an affirmative and adverse way. All such types of events tend
to drive a force of motivation as well as encouragement within personnel to achieve something
big in life. On the contrary, opposite can also take place. Two entrepreneurs are selected in this
report, namely, Richard Branson and JK Rowling. The level of education and family background
acts as facilitating as well as restricting factors for them. This is described as follows:-
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Level of Education: It has a crucial role to play in the lives of individuals and fosters
them to attain rapid growth as well as development. Further, education is aimed at enhancement
of skills, expertise, knowledge base and capabilities of personnel so that they can carry out the
activities within corporate world easily. It becomes easy for an entrepreneur to run a business in
any specific field of work if they possess certain level of knowledge and skill about that in hand
before the initiation of work. In this regard, education played a massive and significant role in
shaping entrepreneurship in the life of J.K. Rowling. It was found out that she took an entrance
exam to gain entry into a renowned and famous college but somehow failed to clear it in order to
get admitted in it. In latter stage of her life, she pursued the course of BA in French language. It
can be said that gaining knowledgebase of a specific subject transforms the work into an easier
phenomenon. Further, she carried out work in the form of a researcher which helped her in
shaping her life as an entrepreneur and thereby coming up with a large number of novels which
assisted in gaining success and career growth. In addition to this, Richard Branson had a very
poor background in terms of education. While he was pursuing education, he was told by his
principal and teacher that either he would end his life in a jail or he will turn into a successful
millionaire. In this relation, it was noticed that he later became one of the most well renowned
and established entrepreneurs.
Family backgrounds as well as experience: Family background of an individual also
has a great role to play in shaping the life of personnel in a better or worse manner. If a person
has his/her family members, acquaintances and friends as entrepreneurs, he/she will either get
fostered or hindered by the utterings of their corporate experience. An instance where such
people communicate the successes of their business in past or present fosters a person to become
entrepreneur in future. On the contrary, the failure of acquaintances or family members and their
narration of failed stories would discourage the individual and hinder him/her from becoming
entrepreneur. With respect to JK Rowling, she is ascertained to be the girl who wrote fantasy
story and then read them out for her sibling (sister). She had a tough living as her mother was
told to be having multiple sclerosis. Further, the terms and relations she shared with her father
were also not found to be very good. Besides all of these complications of life, she began
scribbling stories and novels. Her success owed to the introduction of a well renowned and
market leading novel series based upon Harry Potter. Further, in the case of Richard Branson, the
background of his family encouraged him to become an entrepreneur as his parents were found
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to be very supportive and facilitating the concept of entrepreneurship. Her mother herself being
an entrepreneur fostered her son to also become one by making use of his skills and capabilities
just as she did while carrying out sale of wooden tissue box as well as waste paper bin.
CONCLUSION
It has been concluded that a number of typologies of entrepreneurs exist who operate by
utilising their skills, creativity, innovative mindset, passion in order to pursue success and
growth. They are the ones who when accumulated together gives a boost to the overall economy
of a country. Further, it has been acknowledged that entrepreneurs have various types of
characteristics, skills and traits such as risk taking, bringing up innovative offerings, passion,
zeal etc. to develop solutions to the problems being faced by people within the society. With the
help of such traits and skills, these people can easily attain rapid success and growth in long term
as they are highly motivate and directed individuals who work hard for the timely
accomplishment of goals and objectives. Further, statistical data presented above demonstrates
that SME’s contribute largely to the economic development of the respective nation. In addition
to this, it has been observed that family background, education and experiences shape the lives of
individual and foster or hinder them to pursue or restrain entrepreneurship.
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