Entrepreneurial Ventures: Small Businesses' Economic Impact

This report, prepared by a consultancy firm for Deliciously Ella and The Big Issue, explores different entrepreneurial venture types and their impact on the UK economy. It compares and contrasts the approaches of Deliciously Ella (health food and fitness) and The Big Issue (media), highlighting their entrepreneurial styles and the challenges they face. The report assesses the role of small businesses in the UK economy, noting their contribution to employment and innovation, and discusses the impact of globalization and events like Brexit on SMEs. It concludes that small businesses are crucial for economic growth, despite the challenges they encounter in competitive markets.

Running head: ENTREPRENEURIAL VENTURE TYPES AND THE IMPACT OF SMALL
BUSINESSES ON THE ECONOMY
ENTREPRENEURIAL VENTURE TYPES AND THE IMPACT
OF SMALL BUSINESSES ON THE ECONOMY
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ENTREPRENEURIAL VENTURE TYPES AND THE IMPACT OF SMALL BUSINESSES
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Executive Summary
The report is written by giving of market information from a consultancy firm while asking from
the CEO of the companies named Deliciously Ella and The Big Issue. Both are small businesses
from different sectors like healthy food and fitness and media/ magazine sector and follows
different entrepreneurial types and styles. The report described some facts about the
entrepreneurship and compared and contrasts by given organisations. Additionally, the below
writing also describes some related facts about the small businesses and its impact on the nation's
economy.

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Table of contents
Introduction......................................................................................................................................3
Illustrating and exploring the types of the entrepreneurial ventures (LO1: P1, P2, M1, D1).........3
Assessing of the impact of the small businesses on the economy (LO2: P3, P4, M2, D2).............7
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

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Introduction
After the phenomena called Globalisation, world business markets are shifting their
direction towards the small businesses or startup endeavours. Though they are not able to make
money as big as their large counterparts, the economy could not avoid their contribution towards
growth and development. The main of this assignment is to gain some complete understandings
of the scopes and definition of the entrepreneurship, related deliverables and barriers of the
businesses in starting up. Being a worker in a consultancy firm that provides market intelligence
and advice to the entrepreneurs, here I have investigated different types of ventures and impact
on the economy after being asked by the CEO of Deliciously Ella and The Big Issue. The
assignment describes various kinds of the entrepreneurial endeavours, private and public sectors
through the comparing and contrasting between two examples. Moreover, it also illustrates the
importance of the small businesses and businesses start-ups and their importance on the
economic system.
Illustrating and exploring the types of the entrepreneurial ventures (LO1: P1, P2, M1, D1)
Here the discussions are all about two small businesses named Deliciously Ella and The
Big Issue both are based in London, United Kingdom. Deliciously Ella deals with health food
and fitness services to its targeted customers like fitness freak whereas, and The Big Issue deals
with the media sector. Both are recently started their operations, products and services and want
to spread their services in all over the U.K one day. Deliciously Ella mainly follows the research
entrepreneur type, which loves to learn from every outcomes and scenario of the strategies for
growing the businesses. As described by Bertoni et al. (2016), though, learning is the most
effective while development of any business, many entrepreneurs fall victimised due to the
overloading of the information. On the other hand, The Big Issue follows the style of determined
entrepreneurship that values the art of entrepreneurship and believes in hard work and patience.
Growing after starting a business is hard, but followers of this style believe in the determination
of their will. Both of the small businesses are traditionally entrepreneurial at the time of their
birth as they have to face various challenges in their respective dynamic environment. As
justified by Grilli and Murtinu (2014), traditional entrepreneurs focus on in controlling,

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undertaking and assuming the risks of the businesses in the competitive marketplace. Both the
listed companies are innovator and developer of the new ideas, and they seize the opportunities
and converts into the commercial entities.
Both the companies Deliciously Ella and The Big Issue are situated in London and have
started their businesses in some days back. Though there are some similarities regarding the
issues those, every startup has to be faced while initiated their business, and there are some
significant differences between them. Deliciously Ella based on the health food and fitness
market whereas; The Big Issue started its operations in the media sector. As justified by
Cumming et al. (2017), fitness and health industry of United Kingdom are rising day by day as
per the report of State of the UK Fitness Industry, 2017.
Figure 1: Turnover of Fitness industry in the United Kingdom
(Source: Cumming et al. 2017)
The above statics is existing fitness facilities in the UK from 2008 to 2016, in which year
the industry generated near about 1.54 British Pounds. Though there are various threats from the
notable entries like Runtastic, Food52, Strava and Foodily that provides innovative healthy food
ideas, recent market expansion of this sector can motivate the business management. On the
other hand, The Big Issue has some greater barriers like enormous costs, some social and
political links, and efficient personnel from this field as there are some big houses like Sky
News, The Guardian Media Group, ITV those who are already established in this sector.

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Figure 2: Usage of Social Media by the industries
(Source: Colombo et al. 2016)
The above graph shows the importance of media sector in the sectors in the United
Kingdom and 2016; it was seen nearly 81.7% of the penetration of the social media in the
information and communication sector. As justified by Colombo et al. (2016), it can be said that
Media and entertainment market of United Kingdom is expected to grow at the compound rate of
3% per annum over the five years estimated to nearly £72 billion by 2021.
Public and private ventures both are different in case of their offerings, ownership and
profits and deliveries of the products and services. As here, Deliciously Ella is an individual or
corporate venture owned by a sole proprietorship whereas, The Big Issue is owned by the
government that fosters the government provided media services. As described by Bertoni et al.
(2015), both the public and private entrepreneurship are different regarding their goals, employee
hiring processes, procurements processes etc. Public or government organisations are often

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having to face some types of scrutiny and maintain some standards, regulation to operate its
businesses but the corporate organisations have the own set of rules based upon the situations,
competencies and competitions. Various barriers prevent the entry in both public and corporate
sector. As commented by Drover et al. (2017), lacking the coordination of the resources needs to
be appropriately understood by the management of the company for getting a harsh competition
free entry in the respective market. In the corporate sector, the barriers like government
regulations like requirements of restrictive licensing, for obtaining the raw materials might
impact the businesses of the new project. The Big Issue may free from following such stringent
rules as being a government the company already have to develop based on the regulations
prepared by the government. However, being a corporate sector, Deliciously Ella needs to
maintain the appropriate standards like technology, costs, product differentiations, scaling of
economies for an active entry in the respective market.
Deliciously Ella and The Big Issue are from two separate backgrounds owned by private
and private ventures and also follow different types of the entrepreneurship. Both of them have
different scopes, growth and development in their respective fields. As justified by Goffee and
Scase (2015), the UK market of Media and Entertainment is forecasted of reaching towards $160
billion by the year 2019, growing of the slow but steady 3% CAGR, from the $93 billion in
2015. Despite the vigorous competition from the big houses, the company The Big Issue has a
greater scope of development due to its governmental shares and increasing numbers of the
media users. On the other hand, though the Food and Fitness Market in the UK shows the
sluggish growth, the year 2016 can be benchmarked as the returning of the people to the fitness
trends. As described by Guerini and Quas (2016), it can be estimated that British people, who are
interested in maintaining their health can grow by 20% and next five years it can be forecasted to
6.5 million by the year 2020. Consumers are now a day more interested in making choices about
their daily intake of foods and drinks, which will improve their lifestyles and health. The
company can use the ongoing trends of the wellness and health trends of the people for
developing and spreading its businesses, products and services.

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Assessing of the impact of the small businesses on the economy (LO2: P3, P4, M2, D2)
Both the companies described above are small businesses in the different domain of the
market of United Kingdom. As described by Storey (2016), the economic position of this area is
proved as the favourite for the startups but the main point is that every startup organisations
needs a healthy economy for sustaining its businesses. SME's are considered as the most
substantial part of Britain's Businesses as 99% of the same thought as the medium or small.
Figure 3: Small markets in UK’s Economy
(Source: Hillary 2017)
As justified by Hillary (2017), small businesses like media and food provide a massive
amount of employment in the local areas that affect the county's economy directly. Small
industries are the heart of the core parts of the significant sectors like retail, manufacturing and
motor vehicles those shares the maximum percentages of the UK's economy. Furthermore, small
businesses also show the growth likewise of their big counterparts as based on their innovation
and readily adopted procedures.
As commented by Atkinson and Storey (2016), entrepreneurs are the experienced and
hardworking personnel, who are interested in engaging the people in money making procedures
by building a business that can make them proud. The above two discussed two organisations

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named Deliciously Ella and The Big Issue are small companies deal with the health food and
fitness and media respectively. There are various reasons behind like motivations, potential
profitability, tremendous market share, opportunities that provoke an individual in opening up of
the small businesses. As justified by Porter and Kramer (2018), innovation plays an essential role
in the growth of the small businesses by preventing the stagnant, unproductive or dormant
situations by becoming it passively. Additionally, the sector of small businesses provides the fair
shares of combined turnover of £1.6 trillion starting off 2014 in the UK.
As commented by Crépon et al. (2015), small businesses in the United Kingdom are
responsible in providing 15.2 million jobs as there are near about 5 million small businesses in
the UK from 3.5 million in 2000. On the other hand, large industries show some negligible
amounts of growth or fall of the numbers of employees in their workforces. Despite a few SME's
most of the small organisations show this strong growth in this year.
Figure 4: Large industries in the UK
(Source: Glover and Kusterer 2016)
As justified by Glover and Kusterer (2016), governments are also loosening the tax
protocols for encouraging the research, development and employment in the small entities that
make it more popular among the business market. On the other hand, globalisation also feasible

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for the small enterprises due to the technological advancements and other related facilities that
help them in expanding their services in new continents and countries.
As discussed by Köhler (2015), after the movement called Brexit, the SME's in the UK
faces some massive changes as the more innovative, hi-tech and more export-oriented the SME
is the more it has the concern. After this movement, the lowering levels of the investments in
capitals, reducing access to the external finance, reduction in innovative activities and lowers
levels of growth are showing in the concepts of SME’s. Companies based on the locations are
also facing various problems regarding government regulations, export, importing situations due
to this happenings. Though Brexit induces some behavioural expectations of the managers of
SME's and entrepreneurs it is expected to solve the position within a few months. The above-
described companies Deliciously Ella and The Big Issue both are the small business and trying to
spread their businesses with ways and means. As justified by Burns (2016), the companies with
innovation and high exporting qualities are expected to become "superstars" in future. Thus, it
can be said that despite such adversities, boosting the productivity and economic growth is the
only answer to the Brexit in future growth for the companies.
Conclusion
On a conclusion, small businesses are the critical component or the major contributor to
the local economies along with development. Additionally, the small business opens up new
businesses opportunities to the local people and serves as the building blocks of the local
infrastructure. It also can be said that small companies those are growing into big one often
remain into the same community in which they were started and having quartered of a famous
house also help the community in future employment and stimulation of the economy. The above
report describes some market intelligence, and advice from a market consultancy firm on the
request of the CEO's from Deliciously Ella and The Big Issue those are health food and fitness
and media or magazine sector respectively. The assignment described various typologies of the
entrepreneurship through the contrast and comparing of two ventures. Furthermore, it also
differentiated the shares of the large as well as small industries in the economy of United
Kingdom. Lastly, it described the impacts of the small businesses in the local, national and
international forum on the context of given organisations.

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References
Atkinson, J. and Storey, D.J. eds., 2016. Employment, the small firm and the labour market.
Routledge.
Bertoni, F., Colombo, M.G. and Quas, A., 2015. The patterns of venture capital investment in
Europe. Small Business Economics, 45(3), pp.543-560.
Bertoni, F., D’Adda, D. and Grilli, L., 2016. Cherry-picking or frog-kissing? A theoretical
analysis of how investors select entrepreneurial ventures in thin venture capital markets. Small
Business Economics, 46(3), pp.391-405.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Colombo, M.G., Cumming, D.J. and Vismara, S., 2016. Governmental venture capital for
innovative young firms. The Journal of Technology Transfer, 41(1), pp.10-24.
Crépon, B., Devoto, F., Duflo, E. and Parienté, W., 2015. Estimating the impact of microcredit
on those who take it up: Evidence from a randomized experiment in Morocco. American
Economic Journal: Applied Economics, 7(1), pp.123-50.
Cumming, D.J., Grilli, L. and Murtinu, S., 2017. Governmental and independent venture capital
investments in Europe: A firm-level performance analysis. Journal of Corporate Finance, 42,
pp.439-459.
Drover, W., Busenitz, L., Matusik, S., Townsend, D., Anglin, A. and Dushnitsky, G., 2017. A
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Glover, D. and Kusterer, K., 2016. Small farmers, big business: contract farming and rural
development. Springer.
Goffee, R. and Scase, R., 2015. Entrepreneurship in Europe (routledge Revivals): The Social
Processes. Routledge.

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Grilli, L. and Murtinu, S., 2014. Government, venture capital and the growth of European high-
tech entrepreneurial firms. Research Policy, 43(9), pp.1523-1543.
Guerini, M. and Quas, A., 2016. Governmental venture capital in Europe: Screening and
certification. Journal of Business Venturing, 31(2), pp.175-195.
Hillary, R. ed., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Köhler, M., 2015. Which banks are more risky? The impact of business models on bank
stability. Journal of Financial Stability, 16, pp.195-212.
Porter, M.E. and Kramer, M.R., 2018. Creating shared value. In Managing Sustainable
Business (pp. 327-350). Springer, Dordrecht.
Storey, D.J., 2016. Understanding the small business sector. Routledge.