Entrepreneurship: Venture Types, Economic Impact & Traits Analysis

This report examines different types of entrepreneurial ventures and their relationship to the typology of entrepreneurship, exploring similarities and differences between ventures. It interprets statistics on the impact of micro and small businesses on the economy, explaining the importance of startups. The report analyzes the characteristics, traits, and skills of successful entrepreneurs, differentiating them from business managers, and assesses how entrepreneurial personality reflects motivation and mindset. Finally, it examines how background and experience can either hinder or foster entrepreneurship, providing a comprehensive overview of the entrepreneurial landscape.

Entrepreneurship and
small business
management

Table of Contents
Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P1) Examine different type of entrepreneurial ventures and relationship with to the typology
of entrepreneurship.....................................................................................................................1
P2) Explore the difference and similarities between entrepreneurial ventures...........................3
Task 2...............................................................................................................................................5
P3) Interpret the statistics of micro and small business impact on the economy........................5
P4) Explain the importance of small businesses and start-up's...................................................8
Task 3.............................................................................................................................................10
P5)Analyse the characteristics traits and skills of successful entrepreneur that differentiate
from business managers............................................................................................................10
P6) Assess the aspect of entrepreneurial personality reflect motivation and mindset..............11
Task 4.............................................................................................................................................12
P7) Examine how background and experience can hinder and foster entrepreneurship...........12
CONCLUSION .............................................................................................................................12
References......................................................................................................................................13

INTRODUCTION
Entrepreneurship is the start-up of small business that is started by an entrepreneur who
has some creative ideas and plan to launch the new business in the market. Whereas, small
business management is the procedure that has been follows by entrepreneur to manager there
business. It is needed for the entrepreneurs to manage the new start-up in terms of decision-
making, managing of employee, financial funds, manage the assets etc. This reports includes the
different type of entrepreneurial ventures and the relationship with the typology of
entrepreneurship. Furthermore, report consist of different statistics that show the impact of
entrepreneurship and small business on the economy of the country (Ahn, 2019). With that
defines the similarities and difference between the entrepreneurial venture also illustrate the
impact of small and micro business in terms of economy. Also includes the personality of
entrepreneurial in terms of motivation and mind set. At the last of the report it covers and
introduces how the background and experience can hinder and foster the entrepreneurship.
Task 1
P1) Examine different type of entrepreneurial ventures and relationship with to the typology of
entrepreneurship.
Entrepreneurial venture is the new business that is started by an entrepreneur with the
high financial risk and innovation in terms of increment of economic and social values. This
business is basically started to generate the entrepreneurs as entrepreneur have there own small
business while it is not mandatory that every small business has the entrepreneur. For example
ventures of mobile phone games, television, real estate etc. Where typology of entrepreneurship
are the different forms by which business will developed more and performed in an effective
manner that enhance the productivity of the business. As it emphasis the living standard and
lifestyle of the people that enhance the growth and development of the economy.
There are different types of entrepreneurial ventures that have diverse growth, scope and
development these are as defined as:
 Social entrepreneurial venture: It is an venture that is developed to enhance the society
in terms of growth and development. This business attains the opportunities of the market
by which the living standard of the public will increased. Social venture works to
enhance the economy of the country in terms of public awareness, skills advancement. It
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is an approach with that funds will be collected to resolve different issues that is
generated in the surrounds by environmental, social, cultural (Atnafu, 2018). This is
formed for a wider prospects as in size, scope, belief for example providing educational
and qualification, provides banking facilities to low reserved areas, provides the funds to
resolve the health issues etc. It relates to the typology of lifestyle enterprise as it provide
the job opportunities to the people and works for the welfare of society with that society
also appreciates the work of business. There are some examples of this venture as like
Nesta, student hubs, The platforms and many others as well. These ventures works as the
social entrepreneur as they enhance the development of the society. These organisation
also works to spread more awareness in the society about the different ongoing changes
in the environment.
 Scalable entrepreneurial venture: It is a venture that is generated for the huge prospects
and it is a model of business in which business measure the growth in terms of repetitive
innovations. Firstly the business will be introduced and expand in horizontal format
where business try to stabilise in the market after that it expand in vertical format by
repetitive changes according to the requirements. It is a model of venture in which
business work to maximise the profit from the angle investors and the capitalists of the
venture and with that economy will be enhanced. They attains all the risk for to get the
profit and they know that there vision and aim could present something different and
unique in the worlds. For example Facebook, google, Instagram, whatsapp, flip-cart, and
many of the online medium of transportation. It work with the typology of structuralist as
maintains the proper structure and then work to improvise the structure with further
advancement. There are some examples as like hussle, sendmybag, cocoon and mant
other as well and they always imparts changes and continuous development in their
business by imparting innovation in their business.
 Large company entrepreneurial venture: It is a venture that has the largest size, scope,
values, aim and doesn't have any limits. It is a business that is expanded globally and
supply there products and services on bigger level and have a huge fund and capital that
helps to operate the business in effective manner. These are the ventures that changes
there product and services according to the need and demand of the market. Also attracts
the large customers base in terms of new and creative innovation by applying
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technological advancement (Cornwall, 2019). And as it is an expanded business thus
fulfil the need of every market, works with technology, balance with the legislation rule
and regulation, and face the high competition. For example Tesco, Marks and Spencer,
Aston martin, Tesla etc. It include the typology of growth firms as business work for the
betterment of the market and induce new strategies and innovation through they
improvise the growth and development of the business. There are some examples of that
are as follow as digital detox, American sports, microblading and many other as well.
That always imparts more and more technological advancement within the business on
continuous basis.
 Small business entrepreneurial venture: It is a venture that has the major importance in
the economic growth as it have the appropriate amount of employees that are working
there with that has small size, scale, capital. It is a business that need the generation of
fund to get start-off as like family help, loans, loan from friends etc. These are the
business that gain the profit in term of providing the product and services to the
customers in niche market. It is a business that is operated with maximum 50-60
employees with the net profit of around €3.5 million and it can be formed by partnerships
or sole proprietorship and have limited amount of resources as compared to medium and
large size ventures. It includes the business of cosmetics, food and juices, groceries,
consultancy, technicians, electricians etc. For example Digital Detox, Micro-blading,
Personal health apps. Clarasys etc. It also work with the typology of growth firm as to
measure the success and growth they work with more creativity and advancement that
grabs the market consideration. There are some examples as like website consultancy,
car cleaning, voice over, babysitting, Brightstar financial and many other that will
generate their profit within the small venture.
P2) Explore the difference and similarities between entrepreneurial ventures.
Similarities between entrepreneurial venture:
Similarities Social enterprise Scalable
Entrepreneurial
Venture
Large company
entrepreneurial
venture
Fulfils the needs These could work for It also works for to These will also formed
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the society and resolve
the basic need of the
society as like student
hubs.
manages the basic
need of the peoples
and there growth
depends upon the
satisfaction of
customers as like
sendmybag.
to satisfy the need and
want of the customers
and according to that
manage there own
product and services as
like American sports.
Society betterment It works for the vanish
the issues of the
society and provides
the better ways to live
in a society.
It also works for the
upliftment of the
society by providing
the basic advantages to
the customers.
It provide the job
opportunities in the
market and provides
employment that
develops the economy
of the country.
Economic
development
If the society is more
developed and free
from health, financial
issues then it turn to be
the more developed
country.
It has the huge
customer base and
with that provides the
best advancement and
provides job to the
people that all helps to
the development of
economy.
As it provides a lot of
job at all the levels and
provides employment
and applies all the
advancement in the
business that lead the
economic
development.
Examples It includes some
examples as like
student hubs.
It includes some
examples as like
sendmybag.
It includes some
examples as like
American sports.
Differences between entrepreneurial venture:
Difference Social enterprise Scalable
Entrepreneurial
Venture
Large company
entrepreneurial
venture
Purpose This business is The major purpose is The major purpose it
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basically works for the
advancement of the
society and to
improvise the living
standard and lifestyle
of the people as like
student hubs.
to expand there
business as much as
they can by applying
several techniques and
also enhance the
livelihood of the
people (Dana, 2018) as
like sendmybag.
to gain to competitive
advantage and earn
maximum profit by
applying different
innovative strategies
and creative ideas as
like American sports.
Scale It works on local level
to resolve the basic
issues of the people
and satisfy the need of
the society.
This business operates
on high scale as covers
a wide market and
constantly supply there
products and services.
This business works on
larger scale and need a
lot of sources to
expand there product
and services.
Characteristic They needs a lot of
money to generate
there services thus
they collect the funds
from the public and
from the government
as well.
They have the strong
vision and works to
accomplish that vision
and have a better flow
of good and funds thus
manages all the
functions in effective
manner.
They need a lot of
sources to work and
also need a lot of
employees to operated
there business and
government also
interferes in there
business as they
operate there business
on large scale.
examples It includes some
examples as like
student hubs.
It includes some
examples as like
sendmybag.
It includes some
examples as like
American sports
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Task 2
P3) Interpret the statistics of micro and small business impact on the economy.
There are some various type of businesses that plays a very important role in the
economic development (Wallmeroth, 2018). These have the impact on the economy of the
country and defined below as:
Micro Business: It is a small business that consist of 0-8 employees including the owner
and have the revenue of around £1 million. There are 96% business of UK are micro and have
5.6 million business and imparts employment of 33% and turnover of 22%. It includes the
business like catering, electricians. Cleaning, photography etc. There are some examples of
micro business in UK are as Proviz, Issoria etc.
Small Business: It is a business that consist of approx 25-50 employees and have the
revenue of around £6million. As it is a small business thus generated on low scale and with that
helps the country to improves its economy. There are some examples as Brightstar Financial,
LMA recruitment etc.
Contribution on micro business in UK economy:
Impacts: Micro business provides the local economy that enhance the growth and
development of the business. Also helps to increase the economic growth by providing the job
opportunities to the people that might not get the job in other small business. Also foster the
economy and keep circulate the money in neighbours and family.
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(Source: Statistics on small and medium-sized enterprises, 2018)
As per the above statistics it is clears that SMEs have different impact on the growth of
the economy as there are different states of UK in which all the states provides the job to the
people and that positively impacts the growth and development of the economy of the UK ( How
to small businesses affect the economy, 2019).
Contribution on Tax: Micro business get the reduction in tax that increase the demand
and emphasis the business to invest more and hire the employees (Parker, 2018). That provides
the easiness in the business thus company conduct all the activities without any burden or
pressure. Tax reduction allows the business to expand thus they can hire the employees with that
induce more creative and attractive changes in the business. The basic interest on income tax is
approx 20% as if the income is in between £12,501 and £50,000. and 40% tax if the income is in
between £50,001 and £150,000 and additional interest rate of 45% when the income is in more
then £150,000.
Contribution in reducing unemployment: As micro business has the less amount of
employees in there business as they operates with only 0-8 number of employees. Thus it doesn't
affect more but still it governs some of the jobs that helps the UK to attains the employment rate.
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Company reduces the unemployment by providing accuracy in the production of jobs. SME
prevents 70% employment growth to private sector that is 50% of entire population of UK.
Bring innovation and growth: Micro business comes with the creative and attractive
ideas by which it brings the innovation and growth in the UK market. The new and creative idea
bring different product in the market thus that will induce the advancement in the economic
growth of the UK.
Contribution on small business in UK economy:
Impacts: Small business is the major source of UK economy in terms of growth,
development, creation of job. As there are a lot of small business in UK thus they all phase a lot
of competition that creates the challenge for all by which every business try to comes with new
innovations. Thus provides the employment opportunities for the people and that enhance the
economy of UK.
(Source: Role of SME in UK, 2019)
As it is clearly shows from the above statistics that small business have the largest growth
and development in the economy of UK as they insert 99.3% of the employment as compare to
the market analysis. That shows that it has the positive impact on the economic growth of the
company.
Contribution on Tax: Limited of the small company are free from tax payments and
insurance. But they contribute a part of there profit as a corporation tax and currently it is of
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19%. And UK has the quarterly tax pay scheme where small business pay the tax accords to
income generation. The interest rate in 20% on the profit and tax will impart in between £12,501
and £50,000. 40% interest rate implies when income is in between £50,001 and £150,000 ( SME
Growth and contribution in the UK's economy, 2018).
Contribution in reducing unemployment: Small business imparts 2500 jobs to the
people by 2021. and that adds the £1.2 billion in the economy of the UK. With that drive 70%
growth in private sector and has the positive impact on growth of economy. Fiscal policy of UK
reduces the unemployment by increases the rate of economic growth of the country.
Bring innovation and growth: Small business include several business like machine
repairing, healthcare, educational services, food and beverages etc. and as they have a large
competition thus brings all the creative innovation by which growth has been measured. But
Brexit somehow affects the growth of the economy as export value falls down.
P4) Explain the importance of small businesses and start-up's.
Small businesses and start-up's are the major importance to growth of social-economy.
Social-economy: It is a relationship between the economic and social behaviours and
includes that how social factors like belief, ethics, values of customers influenced by the
economy factors like interest rate, inflations rate, deficit rate etc. It is formed by the
diversification of the enterprises as institutions, cooperative and foundation where all the
entrepreneurs shares same belief and values (Frederick, 2018). There are different pillars of
social-economy are as:
Mutuals: These are the enterprise that provides both type of insurance as life and non-
life, provides different schemes of social-security and services of social nature as human needs
and aspirations. The main aspect of mutuals is to work for non-profit term as they are worked for
the people and fulfil the common needs of the peoples. Around 70% insurance company are
work as Mutuals.
Foundation: It is an analysis of business that creates the values to the product and
services that enhance the productivity of the business that turns to measure the growth-oriented
approach of social-economy. With that also analyse the cost that business creates by social value
and benefits in terms of profit.
Charities: It is the form of social-economy that is performed under voluntary sectors as
entrepreneur will governs some of there profit in terms of charity for the betterment of the
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society. It is non-governmental activity in which government doesn't participate in between that
charity and it performed by both the sector as public as well as private.
Associations: As social-economy is an importance of the small business and start-up,
they grant the funds to the society as to be self-sustained and that can be done by NGOs
company, and cooperatives (Hallam, 2018). It is managed by the self interest of the business as
per there profit and turnover. As there is an equal understanding of all the subordinates thus it is
a mutual decision-making of all to perform as consideration of social and economic aspect.
Small and start-up's business supports the foundations and charities in the society as it is
good to revert back something to the community. These business make strong connections with
the people and then try to change and develops the society in an effective manner.
Small business as like Brightstar financial that provides the helps and support to the
peoples and it is the most bright company of UK and they manage their business with the help of
50 employees. They support the mental health of the citizens as recently they organised the event
named as “ mental health awareness day” thus they support the foundation. They also works for
the charity to prevent the country from different issues related to mental health also brings the
positive change in the society.
Start-up's business as like Igloo energy they create energy to the new generation as in
today's scenario business keep on changing on continuous basis thus it is typical and important to
keep conserve the energy and power for future. Thus Igloo works for that as to develop the
society and brings the positive change in the society. They also works as the charity and the
foundation like they £310 kilowatt energy in a year.
There are difference and various importance of start-up's and small businesses on the
growth of the social-economy that are as defined below as:
Importance of start-up's on growth of social-economy
Start-up's are the new business of the entrepreneur as they have the new idea and creative
form to open the new business that is completely different from the other ongoing business in the
market. Start-up's plays the important role in the charities and foundation as they works for the
betterment of the company and with that generalise the profit. Thus to gain the growth they
works for the society and try to attains the attention of the market. They also generates the job
opportunities in the market and gives the job to all who need that and contains all the educational
background people. Also improves the lifestyle of the people as they are always focused about
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