Entrepreneurial Ventures: Types, Impacts, and Characteristics

Unit 9

Introduction

The report will be describing about different types of entrepreneurial ventures with their scope, development and growth in the market. Also the ventures in the different sectors viz. public and private sector will be defined in the report. Moving ahead, the report will be analysing the impact of small businesses in the economy as well as social economy. The contribution of small businesses in on the different level of economies will also be defined efficiently and effectively. Then the report will be including the characteristics and skills of successful entrepreneurs. In the last section of the report, role of background and experience along with their positive and negative influence on the entrepreneurs will be included in the report.

Entrepreneurial ventures

The term refers to the process when an individual, group of people, company, firm, organisation or any other entity tries to introduce a new form or centre business in the market related to any domain for making profit or any other cause. There can be many reasons for the entrepreneurial ventures. Similarly there can be many types of entrepreneurial ventures according to their size, type, domains and owning in the market.

The main types of entrepreneurial ventures are given below:

1. Small business: the majority of the entrepreneurship ventures comes in this category as the small business are the basics and easier to start. Small business refers to small company, retail store, restaurant, departmental store or any other shop or store. There is no motto of making the chain of the business or store in the other parts of the market. In small businesses, the entrepreneur generally invests their money in the business and then expects to make money and profit from that business (Adomako and Mole 2018).

Scope of small business: scope of small business is vast and carries great importance. Small business generates the business ideas and knowledge in the people and helps to create jobs and employment in the society. Also the small business helps in urban and rural growth of the company.

Development and growth of small businesses: small businesses in UK contributes almost 47% annual turnover of the total UK economy 2016 and has increased to 52% in the current year.

2. Scalable start-up: these businesses are less common than that of small business. These businesses tend to attract the attention of media. Scalable businesses start on very small scale just as a seed of an idea and then nurtured with further investment and ideas until it become a large corporation. For example, sometime the business starts from the room of a home and grow until it has headquarter in the capital city of the country. A lot of Silicon Valley tech companies come under this type of start-up businesses (Nielsen and Lund 2018).

Scope of scalable start-up: scalable businesses contribute majorly to the economies of the countries. Also the scalable business provides the employment on the large scale as they grow and employment in different kind of domain is provided by the companies.

Development and growth of scalable businesses: in the last 2 decades, a lot of scalable start-ups have marked their presence in the global market and the owners of these businesses are counted in the list of wealthiest personalities of the world.

3. Large companies: these are the entrepreneurship ventures when the entrepreneur is working in any large firm and then plan to establish a similar large company of same domain in the market. Example can be that the entrepreneur is working in an automobile company and has found that there is high demand of motorcycle. If the entrepreneur goes to their boss and tell them to provide the funding and support to start a motorcycle division and boss approves the request. Then it will be a kind of large company or business venture in the market (Dale et al. 2019).

Scope of large companies: large companies play the key role in fulfilling the demand and needs of customer by providing them the products and services relevant to their needs.

Development and growth of large business ventures: according to the data of 2020, there were nearly 6 million private sectors in the market of UK. The shares of large companies in UK hold 48% of the total market.

4. Social entrepreneurship: these types of entrepreneurial ventures are less like business and more like social work. In social entrepreneurship, the entrepreneur is willing to take the risks and put the efforts bring the positive changes in the society by introducing the new initiatives in the society. The social change may refer to the environmental conservation, philanthropic activity and racial justice (Rawhouser et al. 2019).

Scope of social entrepreneurship: the social enterprises in the company provide more than 5% of the total employment in the country.

Development and growth of social entrepreneurship: social enterprises in UK worth more than £60 billion in the economy of UK which is almost 3% of GDP of the country. It has been identified that top 5 cooperatives which are a form of social enterprise pay tax more than the Amazon, Apple, Facebook, Starbucks and eBay combined.

Terms/type of ventures	Small businesses	Scalable business	Large companies	Social entrepreneurship ventures
Similarities	All types of businesses promote the business knowledge and employment in the market and country.
Differences	Small business helps in majorly in the rural and urban development of the country (Morris et al. 2018).	Scalable business provides the new ideas of innovation to the society.	Large companies provide the employment to the different domains and to wide range of population.	Social entrepreneurship ventures contribute more toward the growth and development of society.

Entrepreneurship in public sector

Public sector entrepreneurship is kind of critical for the purpose of developing and implementing the policies as there is changes in the demand for the public services over the time (Hayter, Link and Scott 2018).

Entrepreneurship in private sector

Private sector entrepreneurship mainly goals on making the profit through the business. It is owned by a person, group of people or any private company or firm with low or very less interference of government in it (Bain 2017).

Impacts of small businesses on economy

Believe is that the whole economy of United Kingdom is supported by the small enterprises of the country. Small and medium enterprises of the country play the key role in for generating the values of the economy.

Considering the data and statistics, following information is enough to indicate the significance of small businesses in the economy of UK.

1. Creating jobs: jobs are the main key factor in the country which contributes toward the growth and development of the economy as well as the market. The problem of unemployment can lead the country toward slow economic growth. Small and medium enterprises of UK are responsible for creating almost 16.3 million jobs over the country. It accounts for almost 60% of the total jobs being provided by the private sector companies in the country (Ribeiro-Soriano 2017).

2. Contribution toward the GDP: it is obvious that such a major portion of employment is being provided by this sector then it will be providing the huge contribution in the GDP of the country as well. It has been recorded that the annual turnover small and medium businesses of UK is around £2.0 trillion which accounts for around 25% of the total GDP and around 52% of all the private sector turnover.

Importance of small business in growth of social economy

1. Inspiring the innovation: small and medium enterprises play the key role to contribute toward the growth of economy. Small and medium companies don’t have a lot of resources to fulfil their needs and requirement and thus they find the various innovation and techniques which can be effective and efficient for delivering those needs and requirements. Simple example can be that Akoni used the machine learning to create the digital treasury platform to the SMEs which give them the better access to the cash management solution (Turner and Endres 2017).

2. Boost to the local communities: most of the time, small businesses are established in the locality and employ from the vicinity. It provides the local people with the places to meet up and socialize. The simple example is local café and restaurants etc. where people can meet. Also the other small businesses like boutique, medicals etc. provide the local people with the everyday essential commodities.

3. Help in being more ethical: local business which provides the products and services helps to lower the carbon footprint. Also going for local helps to take the pressure from the country with industrial factories.

Differences between the small, medium and large business contribution in the economy

Businesses	Contribution
Small and medium businesses	The estimated turnover of small and medium enterprises in the economy of UK is around £2.3 trillion. It is approximately 52% of the total turnover in whole private sector turnover.
Large businesses	71% of the total turnover of the GDP of the country and 48% of the total turnover in the whole private sector turnover is generated by large businesses of country.

Contribution of small businesses on the different levels of economy

On local level economy: small business plays a vital role in keeping the money local as much as possible. It helps to generate even more local tax money which can be used for improving the condition of local schools, hospital and other services. At the same time, the small business provides the employability to small and local people and thus removing the problem of unemployment from the basic level of society.

On regional level: small businesses provide the self-employment chances to the individuals of regional areas. Also the small business contributes toward the development of regional areas as the profit generated by the small businesses circulates in the regional area. Also the small business generally contributes toward the tourism industries of the region where the monuments and other spots are present.

On national level: small business provides the majority job opportunity of the country and hence plays a major role in the economy of the country. Big part of the total GDP of the country comes from the different small businesses of the country. Also the small business comes with the diverse field and domain of businesses in the country which means small business provides the diversity in the business.

On international economy: it has been identified that the small and medium enterprise represents around 90 per cent of the total business population with around providing the 60-70% of the employment in the world. Also it contributes 55% of the GDP in the developed economies of the world.

Characteristics and skills of successful entrepreneurs

Manager of the company don’t need to have the specific skills and traits in order to run the business. The simple reason behind this is that the responsibility of the manager is just managing their department and team in the company and look upon the performance of the company. The performance of the business doesn’t bother the manager. Also the manager just manages a business which is already established (Vinikainen et al. 2017).

But in case of entrepreneurs, it is necessary that they pose specific traits and characteristics. The responsibility of the entrepreneurs is not limited to manage the business but it includes establishing the business with new ideas and then making the business successful by hard work and smart work. It is necessary that entrepreneur must pose some of the key qualities in them to perform and fulfil their all the roles & responsibilities toward the business. Here are some of the characteristics traits and skills of an entrepreneur:

1. Strong leadership qualities: entrepreneurs must have the good and strong leadership qualities in them. An entrepreneur is one who starts a business by own. If someone is putting their time, money and efforts with the entrepreneur, then they should be able to guide and lead them successfully. Also it will be the entrepreneur who will be leading all the employees and workforce of their business. If the entrepreneur is not having the good leadership skills, the business cannot succeed (Hastuti 2020).

2. Self-motivated: it needs courage to start a business by putting investment and time with a lot of efforts. It is not possible until the person is motivated toward their ideas and business. So the entrepreneur must be self-motivated about their goals and ideas because as long as they don’t are not self-motivated they cannot convince other to stand by them and invest their time and money into the business.

3. Sense of basic integrity and ethics: As the owner and founder of the business, it is important that the entrepreneur have the basic sense of ethics and integrity which makes the business sustainable and successful.

4. Competitive spirit: it is obvious that while establishing a business in the market, it will face competition from the businesses of market with the same domain. So the entrepreneurs must have the competitive spirit to sustain today’s market.

Aspects of entrepreneurial personality that reflects the entrepreneurial motivation and mind-set

1. Curious about the competitors: it can be observed clearly that Issas brother have been always curious about their competitors in the market. It is important to be curious about the competitors to maintain the position of the company in the market. If competitors are not being analysed and taken care of, there are chances that they can grab the opportunities of market.

2. Willing to learn: it is also clear in the scenario that the Issas brothers are always willing to learn. They believe that there is no age to learn the things. The new learning helps them to mark their presence in the new businesses of the market with an excellent experience.

3. Picking up new ideas: entrepreneurship is all about transforming the new ideas into the new business to earn the profit. Even Issas brother have this quality of entrepreneurship. Due to this idea, the brothers managed to add the retailing store to their petrol stations (Cuesta et al. 2018).

Strategies to improve competitive edge and market position

1. Corporate culture to attract the best talent: this is one of the most successful strategies. Company must create a culture that is capable of attracting the talent to the company for different positions. EG group is a good example as they hire the people who are genuinely interested in the job.

2. Clarifying the strengths: the EG group has always focused on their strengths and how the strengths can be used efficiently to improve the competitive edge.

3. Rewarding: there is punishment to the employees who work against for the company, similarly there should be reward for the employees who works good for the company. EG group reward their employees for their good performance which motivate them to work even better and hence improving the market position of the company in the market.

Role of background and experience in entrepreneurship

Experience in the business or entrepreneurship means that, the person have the knowledge about the business and sector of business, which will be helpful in the good and sustainable performance of the business. If a person is not having the relevant experience and background in the business then there are chances that the business will not be able to survive in the competitive environment of market. Also the experience and background is not just limited to mere knowledge of the sector, but the experience and background helps to generate the new ideas about the business which leads the company toward new innovation. As business is all about serving the customers with the product or service of their need before the competitors serve the customers. So the innovation and new ideas are too important for the business (Haeussler 2020).

Example given: the best example for defining the experience in the entrepreneurship will be EG group and owner Issas brothers. They both have the knowledge about their business and sector and hence are able to give the new innovation and thus expand the business rapidly and efficiently. It will not be wrong to say that the idea of providing the retail shopping experience to their customer along with the fuel filling station was nothing else than a production of their innovative mind.

Link between entrepreneurial characteristics and the influence of personal background and experience

There is strong linkage between the entrepreneurial characteristics and personal background and experience. It has been defined in the report that the Issas brothers have the characteristics like leadership qualities, sense of ethics, self-motivated and competitive spirit. All these qualities have been adopted by the brothers through long period of experience. The brothers started the business with a single petrol station in 2001. Along with the time and experience in their sector, the brother gained the knowledge about their business and made innovative steps. It can be clearly seen that all the qualities of successful entrepreneurs are acquired by the brother with the year of experience. Strong leadership qualities help them to manage their businesses of different sites whereas the sense of ethics helps to make the brand identity of the company (Pidduck et al. 2020).

In a nutshell, the background and experience is a must factor to develop the entrepreneurial characteristics in the entrepreneurs.

Critical analysis of influence of background and experience on entrepreneurs

Conclusion

The report has been defining about the different types of ventures. It has been identified that the entrepreneurial venture consist of four types viz. small, large, scalable and societal businesses. Also it has been identified that small businesses provide over 16.3 million jobs in the market of UK with turnover of around £2.0 trillion. The report concluded that the contribution of small businesses is not limited to local economy but the economy of whole country. Competitive spirit, sense of ethics has been identified as the characteristics of the entrepreneurs. In the end section of the report, it has been identified that experience is major factor for an entrepreneur that influence the business in both positive and negative way.

References

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