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    Various Kinds of Entrepreneurial Ventures

    University: St. Patrick’s International College

    • Unit No: 9
    • Level: Undergraduate/College
    • Pages: 21 / Words 5300
    • Paper Type: Essay
    • Course Code: MNGT2002
    • Downloads: 300
    Question :

    This assessment will cover the following questions :

    • Discuss the differences small, medium, and large businesses make to the UK economy, applying relevant data and statistics.
    • Generate the impact of small businesses on the economy.
    • Explain the similarities and differences between the entrepreneurial ventures.
    • Determine the impact of small businesses on the local, regional, national and international economies.
    Answer :

    INTRODUCTION

    Entrepreneur is a person who focuses on manging, organizes and assumes different kinds of risk in order to run a business or enterprise. An entrepreneur plays a vital role in the process of entrepreneurship by creating, designing as well as launching a new business with limited number of resources in order to gain profit (Margiono, Zolin and Chang, 2018). Entrepreneurial ventures can be defined as type of organizations that focuses on opportunities and innovation simultaneously in order to create or enhance social and economic values. These ventures focus on resolving high number of uncertainties in order to gain high returns. Entrepreneurs are the one who create these entrepreneurial ventures. There are various kinds of entrepreneurial ventures that further consist of various kinds of organizations that operates in different sectors.

    This assignment will lay emphasis on various kinds of entrepreneurial ventures, different types of topologies and ways in which these topologies of entrepreneurship relate to entrepreneurial ventures, development scope and growth of entrepreneurial ventures, differences and similarities between entrepreneurial ventures, impact of small and micro business on economy and growth of social economy, characteristics traits and skills of successful entrepreneurs and ways in which they differ from business managers, ways in which entrepreneurial mind-set and motivation is directly or indirectly reflected by their personality and lastly it will also lay emphasis on ways in which experience and background of entrepreneurs foster or hinder entrepreneurship.

    TASK 1

    LO1

    P 1

    Entrepreneurship

    It can be defined as a process through which launching, designing and running of a new business is done (Najafian and et.al., 2018). It can also be defined as an activity in which entrepreneurs take financial risk in order to make profit or run a successful business. a person who creates business is known as an entrepreneur.

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    Different types of Entrepreneurial ventures

    Small Business Entrepreneurship: Small business entrepreneurial ventures focuses on innovative and new ideas and offering. These kind of ventures faces various kinds of risks in order to increase profitability, customer base by bringing various kinds of changes within their business.

    High Tech Firms: These are kind of ventures that focuses on securing revenue and growth in the sector they operate in by adapting new, advance and rapidly changing technology. There are various kinds of technologies that are being used by various organizations in such a manner that such organizations regard it as their unique industrial feature.

    High Growth Firms: These are kind of ventures that uses a contrast method as compared to traditional concept. Organizations that have growth rate larger than 20 percent per annum over a three-year period comes under High growth firms.

    Social Entrepreneurship: these kinds of ventures mainly focuses on social problems or issues that are required to be resolved with the help of services or products that they provide to the customers (Margiono, Zolin and Chang, 2018). These kinds of firms can come be both profitable and non-profitable.

    Start-up Entrepreneurship: these are kind of ventures that are founded by entrepreneurs in order to develop and bring unique and new services and products into the market. Such entrepreneurs continuously think of new and innovative ideas in order to run their own business successfully.

    Large Company Entrepreneurship: Entrepreneurs running this kind of business continuously focuses on bringing sustainability within their business in order to increase their profitability and customer base.

    Topologies of Different types of Entrepreneurial ventures

    Survival Firms: In last few years firm survival has come into picture and is focused a lot. It is mostly focusing on saving cost, employee laying off I order to remain in growth mode.

    Lifestyle Firms: These are kind of firms that provides their owners with opportunities to focus on a particular kind of lifestyle with a single aim of sustaining a particular income level.

    Aggressive growth firms: These are a kind of firms that focuses on returning highest capital gains for rapid growth of the company.

    Public sector entrepreneurship: These are innovative public policy initiatives that generates high economy prosperity (Neumeyer and Santos, 2018). These are kind of organizations that that operates traditionally on public domains.

    Social enterprise: This topology focuses on exploring ways in which social values and goals are mixed with business practises.

    P2. Similarities and Differences between Entrepreneurial Venture

    Entrepreneurial ventures carry various similarities and differences based on the various aspects that are as follows.

    Similarities in Entrepreneurial Venture

    Various similarities are assumed between entrepreneurial venture that consist the following.

    Strong-willed Entrepreneur: The major similarity has witnessed among all the entrepreneurs across the world is all the entrepreneurs carry strong will to make the own identity with the success of business (Bosma and et.al., 2016). Entrepreneurship is more like a passion and determination for conducting various business operations.

    Funding: All entrepreneurs depends on various venture capitalist and investor to meet the funding requirements. Funding is among the tough task for all the entrepreneurs as investors don't take much interest for investment. All the entrepreneurs are majorly depends on bank loan, venture capitalist, angel investors and government grant and subsidiaries.

    Innovation: Innovation is one of the most mutual aspect of entrepreneurship. Entrepreneurs carry the passion to turn the vision into reality and in such a process entrepreneurs try to use various innovative ideas and make a successful business out of it. Entrepreneurs carry the shortage of funds and resources and to run the operations effectively they always try to pursue innovative and unique ideas to conduct several operations in the lesser investment of funds.

    Creating a brand name: All entrepreneurs carry the vision to create the own brand name or image (Stubbs, 2017). Creating the own brand name or image with the business idea is among the mutual ambition of all the entrepreneurs.

    Sustain against large business: Entrepreneurship is a tough task as various obstacles entrepreneurs need to face in process to conduct all the business operations successfully. The major challenge among all other challenges entrepreneurs face is to keep sustain against the large business organisation.

    Differences in Entrepreneurial Venture

    Major differences between all the entrepreneurs can be summarised as follows.

    Annual growth rate: Growth of the business depends upon various aspects of the business such as product quality, market performance, profitability and market acceptance. All such aspects work differently for all the entrepreneurs and it also reflect in the growth rate of entrepreneurs as all the entrepreneurs witness different growth rates even in the same business sector.

    Time Horizon: All entrepreneurs carry different time horizons based on the nature of the business model and also the investment capacity of entrepreneurs (Liang, Wang and Lazear, 2018). Most of the times various investors also get involve in the businesses and that also play the crucial factors in deciding the time horizon for entrepreneurs.

    Managerial Focus: Many aspects such as business idea, strategies, product, investment potential and market growth create huge influence over managerial focus in entrepreneurship. Majorly the business strategies carry the huge impact over managerial focus in entrepreneurship and all entrepreneurs carry the unique business style that also reflect in the business strategies.

    Managerial Style: All entrepreneurs carry the unique style of business and that also impact over the style of management. Managerial style also depends upon the individual character and personality of entrepreneurs so all entrepreneurs sustain the different managerial style to conduct the business operations.

    Entrepreneur orientation: All entrepreneurs carry different strategies and policies to frame the business strategies (Bylund and McCaffrey, 2017). Philosophies of management also depends upon personal and professional experiences of entrepreneurs that also reflect in the entrepreneur behaviour.

    Managerial skill: Individual personality and characteristic of entrepreneurs also reflect the management skills of entrepreneurs. All entrepreneurs conducts business operations in different styles that mostly depends upon nature of business, resources and organization structure.

    Technology Investment: Technology play the crucial role in today's entrepreneurship. Based on the business ideas entrepreneurs carry the different technological needs. After identifying the need of the business entrepreneurs take decisions in regards to the investment in technologies.

    Exit approach: Depends on the convenience entrepreneurs use exit approaches. Based on the nature, investment, type and resources involved in business entrepreneurs use various exit approaches for business wound up.

    Source of finance: After analysing the needs and demand of the business entrepreneurs take decisions to use various sources of funds based on the investment needs. Most common finance sores are personal investment, venture capitalist, business angels, government grants and assistance, bank loan, financial bootstrapping and buyout. Based on the need and requirements different entrepreneurs take different decisions for using sources of funds.

    Organisation structure: Various factors and aspects of business such as scale of business operations, financial and other associated resources, leadership style and experience of entrepreneurs play the big role in setting functional structure of the business (Aghion, 2017). To feel the best need of business all the entrepreneurs use different structure for organization hierarchy. The most commonly use organization structures are divisional, functional, matrix and flatarchy.

    Economic motives: Economic motives specifies the approach of entrepreneurs for contributing the the economy. All such aspects of entrepreneur such as motivation, goal, ambition and business structure differentiate the economic motives of entrepreneurs.

    Reward: Rewards are more like an individual task. Profitability and job satisfaction play the big role in setting rewards for the employee base of the organization. All entrepreneurs set different rewards for the employee's in the company.

    LO2

    P3. Impact of Micro and Small Business over economy

    Business is specifies as the organization or an entity engages in various operations to generate the profitability. Based on the scale of the business organization businesses are separated in micro business and small business.

    Micro Business: Micro business is more like a small business. Usually if the business organization carry the turnover of less then € 2 million then it is identifies as the micro business. Micro business also consist the number of employee's to be lesser then 10.

    Small Business: According the the Uk company act 2006 businesses are considered to be the small business if the turnover of the business is less then £ 6.5 million. Small businesses also cosnist the number of employee's to be lesser then 50.

    Impact over economy

    Micro and small businesses create a huge impact over the economy of UK as the small and macro size businesses consist 47 % of UK economy that significantly impact various aspect of the economy.

    Shape the economy: Turnover of the businesses enables the economy to entertain growth. Small and micro businesses carry the huge share in the economy of UK as the combined combination of small and micro businesses in UK economy is more then 50%. With the effective contribution in the economy small and micro businesses provided major growth and development opportunities to the UK government. The recent figure of economy has shown the development of small and micro businesses in UK as the businesses could generate the turnover of more then £2.0 trillion. GDP of UK witnessing the growth rate of almost 2% per annum and with the support of such businesses the UK government could expand the economy with the same rate. Growth of small and micro businesses provided the immense opportunities to the UK government to support various initiatives to cope up the future need of the country. As the government is working on various new technologies that also require the heavy investment and small and micro businesses provided such basis to the government.

    Employment creation: SMEs in UK are contributing 99% of total business turnover that created a huge employment in UK. With the support of small and micro businesses the UK government could address the major employment need of professionals and young graduates. The recent figures has shown the employment provided by small and micro scale businesses is more then 16.3 million that could cope up with the huge employment needs in UK. The huge development of small and micro businesses in UK also provided employment opportunities to people from other part of the world. Employment creation also improve the development opportunities for the country as the government get more revenues in the form of taxation income. The employment figures of small and micro businesses is almost 60% of total employment figure of private sector in UK.

    Overcome the financial crisis: The contribution of small and micro businesses in the economy of UK could enable the government to cope up with the financial crisis. The small and micro businesses contributed not just in the form of business turnover but huge employment opportunities also enable the government to deal with crisis. Financial stability play the huge role in various aspects of economy such as inflation and other associated aspects and SMEs layed the huge contribution with the business models.

    Stability in economy: UK economy is among the stable economy in the world wide and the small and micro businesses play a big role in making the economy stable as the economy of UK could effectively grow at the rate of 2% every year. Growth of the small and micro businesses in the UK could enable the government to deal with economic crisis. UK business sector mainly depends over SMEs as the major part of the business in UK Is covered by small and micro business that not only improve the overall business turnover of UK but also improve employment opportunities. All such aspects in context of SMEs in UK could effectively stable the economy.

    STRIP- NEW4

    P4. Importance of small businesses and business start up in growth of social economy

    Social economy is associated with the rich diversity or enterprises and organisations such as association, foundation and social enterprises that share the same goal or objectives. Social economy enable the general interest and democratic governance out of the economic aspect. Small businesses and start up carry the huge importance in the social economic of UK. Various improtance are summarised as follows. 

    Employment creation: Small businesses and start up play the effective role in creating several employment opportunities in UK not just for the people of UK but it also provide employment to people come from other part of the world. More then 70% of employment in private sector enterprises are created by the small businesses and start up in UK. Today the world is facing the employment crisis as the major developed economies are facing downfall in GDP and in such a situation to create new employment opportunities is among the major tasks governments across the globe is facing. The development of small businesses and start up has provided the major relief to the UK government with the contribution in employment creation for all professionals. Many young graduates and professionals has been very much foond towards crating own business start up under the entrepreneurship culture that also supported financially to many job seeker across the UK. Concept of social economy is more keen towards improving the standard of living of normal people by providing employment and career opportunities and small businesses and start up could enable the UK government to achieve the aspects of social economy with the support of small businesses and business start up.

    Innovation: Innovation played the crucial aspects in recent business practices. To improve the operational efficiencies the corporate organizations looked vary keen towards investing in innovations. Innovation played immense role not just fr the big corporate houses but also for the small businesses and start up. Small businesses and start up face various problems and lack of resources is among the major problem small businesses and start up face. To improve the operational efficiencies small businesses and start up utilised new and innovative techniques that enable the such SMEs to improve the operational efficiencies even with the small operational budgets. Innovation also played the huge role in the growth of the society. As all corporate houses becomes very much focused towards dealing in eco friendly products and innovation and new technologies could help the corporate organizations to achieve such social economic aspect.

    Leading the way on diversity: Small businesses and start up impacted the economy of UK in many ways and to create new employment opportunities is among the major contribution. Such small businesses and start could provide various job opportunities to all kinds of professionals across the globe that created a huge diversity in corporate culture of UK as people from different cultures and traditions come together and frame a team to work. Management in SMEs give a lot of attention towards providing a healthy work culture in the organizational structure and that also involve well diversified work culture as employee's from different cultures come together to work. Improved entrepreneurial culture in UK has also attracted to young professionals across the globe as the work culture of such new businesses and start up focus over using the new and unique business techniques that enable the young professionals to experiment with the new operational ideas they posses. All such aspects created a well diversified work culture in UK and fulfilled the need of social economy effectively.

    Meeting social purpose: Small businesses and start up played the important role in meeting various social purposes such as employment creation, healthy work culture, innovation and technological development and many other that improved the effectiveness of social economy in UK. Among all other aspects of social economy the major contribution small businesses and start up created in form of environment friendly products and business practicess that also improved the effectiveness of corporate social responsibility in UK. To improve the market presence small businesses and start up also initiate and contribute in various social issues to earn the trust of consumer's that also contributed for the small businesses and start up in meeting the need of social economy in UK.

    Local improvement: Small businesses and start up has also contributed in the various improvement in the society at the local level. SMEs in UK has taken various social initiatives based on the problems related to the society to improve the standard of living of people. Improved employment and growth opportunities for the professionals in UK could effectively meet the employment related requirements with the effective salary packages that also enable the young professionals to improve the standard of living and it also polished the knowledge and skills of young professionals that also resulted into improved work efficiencies of such professionals.

    LO3

    P5 Characteristic traits and skills of successful entrepreneurs.

    Entrepreneur is a person who creates his own business with innovation and creativity to develop business at a large scale (Ferreira, Fernandes and Ratten, 2017). Entrepreneur help business to get new ideas according to market demand. Entrepreneur help to develop an economy at a large scale. They are able to analyse opportunity and develop plans to grab opportunity.

    Richard Branson

    Branson is a British entrepreneur and founded virgin group. Effective skill and abilities of Richard help them to achieve goals easily. Some characteristics of Branson that help in their overall success are as follows

    Characteristic Traits

    Self motivation

    Entrepreneurs need to be self motivated and able to solve their problems on their own. Richard is self motivated and take decision on his own without answerable to anyone(Khosla and Gupta, 2017.) . Self motivation help to dedicated towards plan and keep moving for success of business at a large scale and improve effectiveness of product and services.

    Take risk

    One of the most important characteristics to become an successful entrepreneur is to take risk. Richard Branson take calculated risk that help them to get positive return in near future. Risk to develop business in different sectors and economies help to Branson to develop business at a large scale.

    Believes innovation

    Entrepreneurs duty is to keep on innovation for growth of business in long run. Innovation help to face competition in market easily and effectively(Higgins, Schroeter and Wright, 2018.) . To get innovative results Branson analyse market in six months to develop new venture to gain a market share for their business.

    Flexibility

    An entrepreneur need to flexible and ready to changes with requirement of market and develop plan according to those changes. Richard have flexible thinking to find a unique and effective solution for every problem in business. Richard aim to adopt changes to stay on top of business.

    Skills

    Ability to listen

    Entrepreneur able to develop positive communication with employees. Communication in effective manner help to make employees work effectively(Mersha and Sriram, 2019.) . Richard give their employees priority as well as chance to showcase their opinion to get creative and innovative idea.

    Ability to think differently

    Unique quality of product and business help to attract customers easily. Branson able to think in different way that help them in overall success of business. Skills to be innovative help to develop unique and creative services for their customers. Richard maintain effectiveness of business as well as services provided by them to customers. Managers think with data available to them and entrepreneurs able to think in an innovative way.

    Make decision

    Skills to take important decision that help to expand business is one of the most effective way for an entrepreneur success. Richard have ability to take important decision on time that other business managers are not able to take required decision.

    Ability to delegate

    Richard delegate employees on basis of their skills and abilities to attract customers easily and improve effectiveness of product(Newell, 2017.) . Entrepreneur is able to analyze employees skills and provide them responsibility according to that analysis.

    Philip green

    Philip green is a British businessman and founded Arcadia group. Skills and abilities to develop unique product help Philip to achieve goals easily.

    Characteristics

    Believer of Mentorship

    Philip believes in proper mentor ship to guide employees effectively for organizations success. Philip believes to learn new thing and not even shy to ask for assistance to someone.

    Work beyond limits

    Philip believes in to get out of comfort zone to achieve their goals easily. Main reason for Philip success is to get out of comfort zone and think differently for organization success(Duchek, 2018.). Learn to work in uncomfortable zone help to succeed and see bigger picture for development of business.

    Ask questions

    Philip ask too many question to learn new things easily. Asking question help to get new ideas to bring changes and for overall development of company. Asking questions help Richard to prepare plan for their success at a large scale.

    Skills

    Ambition

    Entrepreneur success largely depends on their ambition to become successful and to achieve goals and objectives easily. Philip green is committed towards work it help to get positive results for their work and to maintain effectiveness of product and services. Ambitious nature of Green help him to work hard for success.

    Creativity

    Philip is an leading entrepreneur in market and ability to be creative and develop products with innovation help them in their success at large scale. With increasing experience of Green able to analyse new opportunities and achieve goals and objectives easily(Raine and Pandya, 2019.) . Creativity help to get best for business.

    Curiosity

    Entrepreneurs need to be able to learn new things, problems and their solution. Being passionate to know about something help to prepare new plans and effective policies. Philip green is passionate about new things and try to expand in different fields.

    P6. Aspects of entrepreneurial personality reflect entrepreneurial motivation and mindset

    Entrepreneurial personality is specifies with the approach and attitude of an entrepreneur towards the associated challenges with the entrepreneurship business.

    Motivation drivers of successful entrepreneur

    Various aspects that work behind the motivation of sucesful entrepreneur's that can be summarised as follows.

    Openness: Openness is among the important aspects of the personality of successful entrepreneurs. Entrepreneurs use creative and dynamic approaches to conduct business operations as the resources are only minimum in numbers for entrepreneurs so its important for the entrepreneurs to be open for the surrounding atmosphere and activities. Open nature enable the entrepreneurs to think more creatively and dynamically as it helps entrepreneur to accept various new aspects associated with the changes in business culture. Openness also motivate the entrepreneurs to take risk in conducting business operations. With the support of openness entrepreneurs bring new technologies, practices, products and services in the world that enable the entrepreneurs to create the own image and brand. Various examples of success entrepreneurs the corporate world has witnessed that was a huge result of openness and examples like mark Zuckerberg that invented Facebook is among the top example of successful entrepreneurship because of the openness in bringing the change in the society.

    Conscientiousness: One of the major aspects that work behind the success of entrepreneurs is the entrepreneurs are conscientious. Entrepreneurs are goal oriented persons as they put multiple efforts in achieving the set goal or target. Entrepreneurs set goals for the business and make short targets that enable the entrepreneurs to achieve the ultimate goal of running the whole business. To achieve the goal successfully entrepreneurs work very hard on a consistent basis that make the entrepreneur to create a successful business organisation. The major factor that work behind the success of entrepreneurs as the entrepreneurs don't feel bad in taking the risk for conducting business operations. Risk taking abilities of entrepreneurs also causes to introduce new operational practices which also contribute in social economy.

    Extraversion: The another major aspect of the personality of successful entrepreneurs is they are extrovert in nature. Entrepreneurs needs to express the new idea and models in front of the corporate world that enable the successful entrepreneur to get proper investors in time that also support the entrepreneurs to achieve the success in a very shorter period of time. Extraversion also enable the entrepreneurs to accept the mistake as the entrepreneurship is more like taking the risk at various stages of business as they always prefer to use new techniques that involve risk element and in case of failure of operations entrepreneurs not feel bad to accept the mistake and based on the analysis entrepreneurs try to remove the mistake by taking effective actions. All such aspect of the entrepreneur's personality make them the successful business person.

    Agreeableness: Entrepreneurs carry the personality of agreeableness as the entrepreneurs always look keen to suport other's bu fulfilling the various needs of others. This aspect of the personality of entrepreneurs enable them to recognise the emerging need and demand of the society. Entrepreneurship is more like a solving issues connected with the society and the agreeable nature enable the entrepreneurs to understand such issues and also think to address such issues with the innovative idea. Because the entrepreneurs are capable to meet the need of the society this aspect make the entrepreneurs successful in a shorter period of time as they can effectively address the presence by meeting the society need. Merits of this factor make the entrepreneurs a huge success in the society.

    Neuroticism: Neuroticism is an aspect of the personality of the successful entrepreneurs. The nature of neuroticism motivate the entrepreneurs to solve various issues attached with the society as the person carry such a nature get irritate vary easily out of such issue and also think to solve such a problem. This nature of entrepreneurs helps them to address the various problem's with the business idea. Solving the society problems with the business products or services easily enable entrepreneurs to get recognised in the society very easily and it also make them successful in the society.

    LO4

    P7. Background and experience hinder entrepreneurship

    Various aspects that hinder the entrepreneurship is deeply attached with the background and experience of entrepreneurs.

    Background Hinder Entrepreneurship: Background of the entrepreneurs is among the major challenges entrepreneurs. Background of entrepreneurs involve various aspects such as friands and family support, motivation, financial background and other associated aspects that deeply connected with the background of entrepreneurs. Entrepreneurship is not an old concept of business so many times people don't get connected with entrepreneurship business and if the family and firneds are not supportive enough it will create a huge hinder over entrepreneurship. For example entrepreneurs many times use innovative and new idea's for business and many times people in surrounding criticise such new idea's in case of absence of proper understanding of business idea and that becomes a huge obstacle for doing business or initiating the business. If the background is educated and open-minded it becomes a huge support for entrepreneurs for doing business actions.

    Experience Hinder Entrepreneurship: Experience involve the experiences of conducting business and if the past has seen a failure in business it will be a huge obstacle for entrepreneur for conducting business operation as it works cytologically. Experience also create huge impact over confidence of entrepreneurs. Entrepreneurship is more like a tasting the business idea and many times the entrepreneurs needs to face failure in absence of proper strategies and resources and it will also affect the future decision making of entrepreneur's. For example if the entrepreneurs has witnessed the failure in past it will create a huge obstacle for the entrepreneur in doing any future business as the entrepreneur will be demotivated because of the experience and it will also work over the confidence of entrepreneur in doing the new business.

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    CONCLUSION

    This report conclude about the different type of entrepreneurship venture. Various aspects that create a difference between entrepreneurial ventures based on the success and failure has concluded in this report. Impact of micro and small business over economy has concluded in this report. Importance of small businesses and start up in growth of social economy has concluded in this report. Various aspects of successful entrepreneurs has concluded in this report. Aspect related to the entrepreneurial personality reflect the motivation of entrepreneur has also concluded in this report. This report also concludes how different aspects of background and experience foster the entrepreneurship.

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