Analysis of Entrepreneurial Ventures and their Impact

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Entrepreneurship and Small Business Management
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Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................4
Introduction..................................................................................................................................4
a) Critically examining the scope, development and growth of entrepreneurial ventures
(various kinds of businesses) in your borough. You can develop you answer by considering
various kinds of entrepreneurial ventures within the private and public sector and examining
their similarities and differences..................................................................................................4
b) Critically examining how small businesses have impacted on the economy making
reference to relevant data and statistics. You must try to illustrate the importance of small
businesses to economy and the growth of the social economy using the data and statistics. This
can be achieved by drawing comparison to medium and large businesses.................................7
Conclusion...................................................................................................................................9
Task 2: Presentation.......................................................................................................................10
I. Analysing the characteristic traits, skills and motivational drivers of successful
entrepreneurs providing examples of well-known British entrepreneurs..................................10
II. Critically evaluating how their background and experience has influenced them both
positively and negatively using examples.................................................................................12
Conclusion.....................................................................................................................................14
Reference List................................................................................................................................15
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Introduction
The purpose of the study is to shed light on different entrepreneurial ventures, their similarities
and differences and, along with this, an in-depth analysis of impact of small and medium
business on the economies. Every fact and information explained in the study has been kept in
relation with the selected borough, which is Waltham Forest. Along with this, important
personality traits, skills and talents of an entrepreneur have also been mentioned in the study.
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Task 1
Introduction
This section of the assignment is a report that deals with the different types of entrepreneurial
ventures that could be used by the companies in London Borough of Waltham Forest so that they
are not exposed to failure in the market of operations. Besides this, the assignment also shows
the impact of small and medium sized companies on the overall economy of the country. The use
of relevant statistics have been used to gain a better understanding of the same.
a) Critically examining the scope, development and growth of entrepreneurial ventures
(various kinds of businesses) in your borough. You can develop you answer by considering
various kinds of entrepreneurial ventures within the private and public sector and
examining their similarities and differences.
Entrepreneurship is all about starting a new business that focuses on innovation and finding new
methods for carrying out routine tasks in a more enhanced and efficient manner (Scarborough,
2016). However, the term entrepreneurship is not just referred with companies or corporations
beginning in any sector, rather it can be associated with existing firms and corporations as well.
Entrepreneurs are those individuals are those individuals that aim to revolutionise the world
around them with their new ideas and methods, primarily targeting to solve problems or offer
new products and services to customers. Their sole purpose is to create wealth and serve ever-
growing population. Enterprise can be considered as a business that deals with products and
services and targets to generate huge capital.
Different kinds of entrepreneurial ventures, along with their similarities and differences are
explained below:
Entrepreneurial
ventures
Significance Risks involved Funding sources
Serial entrepreneurs These focus on
design, development
and enhancement of
business through new
In this case, the risk
involved is the
highest.
Funding sources for
these companies
include bank loans,
angel investors and
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technology and
innovation methods.
other businesses.
Intrapreneurs These businesses
generally involve
focus towards
development of
solutions to deal with
societal or
environmental
problems.
In the case of these
businesses, the risk is
medium to high.
Government grants
and bank loans are
usually the suitable
funding source.
Owner managers These businesses
focus on developing
sustainable products
and services, which
utilise minimum
inputs and generate
high output.
In the case of these
businesses, the risk is
low to medium.
Initial public
offerings,
bootstrapping and sale
of shares are best
sources for funding.
Table 1: Differences and similarities between different entrepreneurial ventures
(Source: Created by the Learner)
The term typology can be understood as a scheme or manner of classifying any subject or topic.
Typology of entrepreneurial ventures includes:
High growth firms
These firms are generally identified as firms that focus on developing new technological
innovations and implementing unique methods for manufacturing, production, delivery and
logistics of products and services (Cooper, and Folta, 2017). The business model of these firms is
centred around creating huge volumes of wealth for shareholders.
Lifestyle firms
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These firms are slightly different from the ones mentioned earlier in terms of their objectives and
fundamental goals that drive their business. In this case, the focus on firms is to develop strong
vision and mission statements and, in addition, target business segments with maximum growth
prospects and expansion opportunities.
Entrepreneurial ventures can also be divided into two sub-parts, which involve:
Corporate entrepreneurship
These primarily involve origination of new ideas and methods of carrying out business activities
in the existing company. This helps the business managers to uplift their business operation and
gain competitive advantage over their rivals. These firms take calculated risks for propelling
business towards new direction and exploring new markets.
Public sector entrepreneurship
Entrepreneurial ideas and methods can exist in public and government owned companies as well
(Dees, 2017). The purpose of these ideas in public sector entrepreneurial venture is to develop
enhanced methods and services for common public, such as in railways, infrastructure,
technology and communication fields.
Entrepreneurial ventures can also be classified based on their size, taking into account the
number of individuals employed and its annual turnover. Three different ventures based on their
size are:
Micro scale business
Micro businesses are found to be mostly owned and managed by an individual, dealing with
specific products and services, which do not have much demand in the market. The difficulty for
these firms includes the aspect to generate large funds and capital for funding business
operations. These firms generally employ less than 10 employees and have an annual turnover of
less than $1 million. At the Waltham Forest, North East London, several micro scale business
have been risen in the past few years, few examples include, Cabe Electrical Contractors Ltd,
Adult Education Centre and Apollo Dry Cleaners. Although, these firms comprise of tiny size,
however, they still have significant amount of impact over the economy.
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Small-scale business
These businesses are slightly larger than micro business, as they employ more than 10
employees, but less than 50 employees (Zhou, 2016). The annual turnover of these firms is more
than $1 million, but less than $10 million. The scale and scope of small businesses have risen
considerably in the Waltham Forest. The foremost advantage of these firms is that they have high
growth potential and usually deal with unique products and services. Other advantages of these
firms includes the fact that they are considered beneficial for the promotion of healthy
competition in the market that forces companies to enhance the quality of product and offer
better customer services. Few examples of small businesses in Waltham Forest are London
Glassworks and Jalwa Boutique.
Medium scale business
These businesses have the highest impact over the economy of the region, thereby, holding high
importance for the borough Waltham Forest. These firms have highly contributed to the
enhancement and development of the region by generating huge number of employment
opportunities (Brunswicker, and Vanhaverbeke, 2015). Medium scale businesses employ more
than 50 employees, but less than 250 employees, and in addition, their annual turnover generally
lies between $10 million and $50 million. At Waltham Forest, examples of medium scale
businesses include, Walthamstow Loan Company and Age UK London Trading (Walthamstow).
b) Critically examining how small businesses have impacted on the economy making
reference to relevant data and statistics. You must try to illustrate the importance of small
businesses to economy and the growth of the social economy using the data and statistics.
This can be achieved by drawing comparison to medium and large businesses.
Small businesses are considered highly important when it comes to the development of the
country’s economy. With the help of this, one can understand the impact that small business
organisations have on the employment rates and turnover for the country with a passage of one
calendar year. Based on some recent studies, it has been observed that such small-scale
companies are responsible for 33% of the overall employment in the country. Small businesses
are known as the backbone of the UK economy, as it allows the country to develop and open
new markets by providing frequent job opportunities to the unemployed. They have a huge
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impact on the growth of competition in the market. The annual turnover of the country increased
to 19% in the year 2017 (Leigh and Blakely, 2016). Such small and medium sized companies
need workforce labour in the market and they are able to increase their workplace by recruiting
people from different parts of the country. This allows companies to gather skilled and talented
workforce for their organisation and this in turn helps to increase the overall employment rates in
the workplace.
With the growth and development of such small and medium sized companies, new opportunities
are developed that could be used by them for enhancing their process of business operations in
the market. besides this, with the help of this, there is an obvious increase in the growth of the
country’s GDP. This allows them to encourage the growth and development of small and
medium sized companies in the market so that the condition of the UK economy can be
enhanced (Scarborough, 2016). Apart from this, SMEs are also able to increase the overall
income of the country. Due to increase in the employment level, the country can register
increased rates of income generation that also contributes to the growth and development of the
country’s economy.
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Conclusion
Selection of the appropriate entrepreneurial venture is considered important so that the
companies can function in a successful manner. With the help of this, entrepreneurs are able to
understand the risk associated with their business and can take measures in order to prevent the
risks. Knowing the impact of small businesses on the economy of the county will help them to
develop their business in accordance to the requirements of the market.
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Task 2: Presentation
I. Analysing the characteristic traits, skills and motivational drivers of successful
entrepreneurs providing examples of well-known British entrepreneurs
In order to make sure that companies are functioning in an appropriate manner, it is important for
the entrepreneurs to have all the required skills for achieving their business objectives easily.
They have to ensure that they are working in a unique manner so that it can be differentiated by
that of the managers. London Borough of Waltham Forest should look to analyse the skills and
traits of entrepreneurs. Some of the important skills and traits of the entrepreneurs have been
discussed below in a detailed manner:
Confidence
In order to overcome the issues and challenges faced in the process of business, the entrepreneurs
should be confident enough about their actions within the workplace of companies. With the help
of this, they can easily overcome the hurdles so their process of business operation can be
conducted in a hassle free manner (Burns, 2016). Their actions in the process of business
operations implied their confidence. As a result, it becomes easier for them to achieve the
business objectives.
Competitive Attitude
This is considered as the most important skill that is displayed by the entrepreneurs in the
workplace so that they are able to enhance their process of business operations. They have to
look for trends in the market for designing their products and services to meet with the
requirements of the customers in the market (Mariotti and Glackin, 2015). This allows them to
gain competitive advantage over the other companies operating in the same sector.
Motivation
Entrepreneurs play an important role of motivating the people in the workplace. This allows
them to perform their job roles and responsibilities in the right manner. Besides this, they should
look to solve the issues faced by the employees in the workplace. This helps the employees to
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avoid any mistakes or errors in their business process (Bridge and O'Neill, 2012). As a result, it
assists to increase the quality of services and products offered by companies in the market.
Self-discipline
It is important for the entrepreneurs to stay disciplined in the workplace and focus on their
business activities. Having a disciplined attitude prevents them from being distracted in the
workplace. They should look to develop business strategies and achieve them for the growth and
development of their business (Storey and Greene, 2010). Besides this, it is important for the
entrepreneurs so that they can move ahead towards achieving success in the process of business.
Besides this, entrepreneurs are able to perform their business activities in such a manner that it is
beneficial for the overall business operation.
Integrity
The entrepreneurs are expected to be honest in their business process. This is a clear indication
of their integrity that helps to increase the overall success rates of companies. They have to
ensure that they gain the trust of their employees and other associates of the business. They have
to understand that their business is based on trust of the employees and the customers in the
market.
Persistence
It is important for the entrepreneurs to stay persistent in their business. There are times, when
companies face issues in the market that has a negative impact on the overall success of the
company (Burns and Dewhurst, 2016). It is when the entrepreneurs should be able to make use
of their quality of persistence so that they can deal with difficult situations and overcome them in
the course of their business. This helps to increase the overall productivity of the company in the
market and they can function in a profitable manner.
These are some of the qualities and traits of successful entrepreneurs that are analysed by
London Borough of Waltham Forest so that they can understand the reasons for the downfall of
most companies. Presence of such qualities helps to differentiate an entrepreneur from a manager
in the workplace of the company. Some examples can be cited in this regards.
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David and Simon Reuben, are also known as self-made entrepreneurs who started their business
by buying old metal from England. Eventually after working for years, they were able to buy one
of England’s oldest carpet companies. At present, the brothers are on the top of the
entrepreneur’s list.
Philip Green is now the Chief Executive Officer of Arcadia Group and is on number two of the
entrepreneur’s list. He started his career by buying cloths and retail shops. This helped him to
earn billion dollars fortune.
II. Critically evaluating how their background and experience has influenced them both
positively and negatively using examples.
Background and experience are considered two of the most important factors that are responsible
for nurturing entrepreneurs in the management of their business. The ways in which background
and experience comes to play in positive and negative manner have been outlined below in a
brief manner:
Positive Impacts of Background
In most cases, people feel that entrepreneurial choices have been decided at an early stage of an
individuals’ life. However, this is not the case. Having entrepreneurial skills is considered a
matter of genetics. There are certain factors present in the environment that helps to develop
entrepreneurial skills within an individual. If the family of the individual is educated, it will help
them to gain knowledge and education as youngsters (Stokes et al., 2010). With the help of this,
they are able to know about the techniques and strategies that they should use, when it comes to
managing their business in the market. The education systems in schools prepare them in such a
way that they can take responsibilities and continue working in an authentic manner. They are
able to learn from their parents and family members about the business ethics that could be
applied in their workplace while conducting business.
Negative Impacts of Background
Having a proper background is considered highly significant for an individual so that they are
able to develop their skills and apply them in their own company. However, in some cases,
individuals do not receive help and guidance from their family members due to lack of education
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