The scenario of this report determines required possible changes by analyzing feedback comments over the project. This report is going to consider:
- Different types of entrepreneurial ventures and their influence over the economy.
- Analyze the influence of macro and small business organisation over economy development practices.
- Discuss entrepreneurial mindset and background that may affect their working practices.
Entrepreneurship is considered as the capacity and willingness of the person to organise and develop new business venture to earn large number of profits. The persons who took risk and start such new business functions called entrepreneur. Large number of qualities and skills are required to become successful entrepreneur. Such entrepreneurial activities provide large number of benefits in development of economy and society of country (Barringer, 2012).
In the present report explain about, different types of entrepreneurial ventures and their relation to the typologies of entrepreneurship, similarities and differences between entrepreneurial ventures. Also, contribution of small and micro business activities on economy and importance of small-business and starts-ups in the growth of social economy. Also, as appendix down below, you will read about a well-known entrepreneur, James CAAN. His history will allow us to examine, explore and investigate the range of venture types that might be consider entrepreneurial. And a small local business
P1. Different types of entrepreneurial ventures and different types of entrepreneurship typologies
Entrepreneurship: This includes the starting of new business activities by using their innovative ideas to earn large number of profits. It can also be said as combination of various resources like land, labour, capital to establish new venture. To make the venture successful depends upon the qualities and skills possess by entrepreneur.
Different types of entrepreneurial ventures
Large number of options are available in front of the individuals regarding opening of the different types of ventures. It depends upon the skills of entrepreneur that which venture they select to start. So, such different types of ventures are define below:
- Scalable starts-ups entrepreneurship: Such kind of ventures are start by such persons which are having the vision from day one to change the world. The amount of risk involved in these business ventures is high. To provide finance to such ventures needs to find out crazy investors which are ready to take risks.
- Small-business entrepreneurship: All such ventures which are having employees less than 50 and having the turnover of less then 6.5 million are considered as small business. The major small business which are operating in UK are travel agents, hairdressers etc.
- Social entrepreneurship: The main aim of these kind of ventures is to create such kind of products and services which helps in removal of the social needs. They provide their functions to make the world better place to live.
- Large company entrepreneurship: These kind of venture requires large number of capital and risk to start their business activities. To make these kind of ventures successful need to adopt innovative technologies, ideas, legislations etc.
Typologies of entrepreneurship
- Serial entrepreneur: Such kind of entrepreneurs have new and innovative ideas to start their business operations. They take part in all the activities of organisation which are done on regular basis.
- Female entrepreneur: All the business ventures which are controlled by females are called female entrepreneurs.
P2 Similarities and difference between entrepreneurial ventures
It is observed that large number of entrepreneurial ventures are provide their business functions in UK. This will represent many similarities and difference among different entrepreneurial ventures which are mentioned below:
Life style entrepreneurs and serial entrepreneurs: The major similarities between both the entrepreneurs is that they provide their full emphasis on improvement of productivity and profitability. Another similarity between both the entrepreneurs that having same kind of skills and traits. The major difference between two entrepreneurs is that serial entrepreneurs have innovative ideas ideas to start their new business activities. They have full belief on their assumptions that their ideas will helps in accomplishment of their targets. On other hand, Lifestyle entrepreneur use their actual efforts to develop their products in market (Baum, Frese and Baron, 2014).
Small and large entrepreneurs: The major similarity between both these entrepreneurs is that they are working for the satisfaction of their personal and customers needs which helps in development of society. But there are large number of difference are present in both these entrepreneurial ventures. The risk involved in small business venture is very less in comparison to large business ventures. There is huge difference also present in the amount of capital required in the operation of business activities of both the ventures.
Female and male entrepreneurs: The similarities which are present in both kind of entrepreneurs is having equal skills and qualities which makes them successful in market. The only difference which is present between both these entrepreneurs is among their market share. Female entrepreneurs hold 51% of market share and male entrepreneurs hold 49% of market share.
Private and joint entrepreneurs: The similarities between both the entrepreneurs is that large number of individuals join each other to accomplish their common objectives and targets. The difference which is exist between both these entrepreneurs is mentioned below:
Private entrepreneur includes the agreement between two or more person to run their business activities to earn large number of profits. Joint entrepreneur means the joining of hand of different parties to accomplish some common objectives by exchange of technologies, personnel and know how.
Entrepreneur ventures are used in both public and private sector. It is a state of starting a new business entity, planning and resourcing to develop the structure of business. Risk factor can distinguish between public and private entrepreneur. In public sector risk remain associated in the hands of government and in private sector risk remain associated in the hands of owner (Bosma and Levie, 2010).
Also, The Public Sector is usually comprised of organizations that are owned and operated by the government and exist to provide services for its citizens. Similar to the voluntary sector, organizations in the public sector do not seek to generate a profit.
In UK, the Public Sector has been shrinking a lot compared to Private Sector in the last decades. This trend is typically an English specificity. Compared to France for instance, the level of public spending for the state is of 44 % of the GDP in UK versus. 57 % in France. The average for Europe is 48 %.
Some notable employers among the public ventures :
- Bank of England
- British Broadcasting Corporation (BBC)
- British Museum
- Chartered Institute of Public Finance and Accountancy (CIPFA)
- Financial Conduct Authority (FCA)
- National Audit Office
- National Probation Service
The Private Sector is usually comprised of organizations run by individuals and groups who seek to generate and return a profit back to its owners.
Small, privately owned business form the greater part of the private sector. Despite this fact, this sector boasts a rich diversity of individuals, partnerships, and groups — from small mom and pop stores to multi-national conglomerates.
Examples of organizations in the private sector include:
- Sole Proprietors: Designers, Developers, Plumbers, Repairmen
- Partnerships: Dentistry, Legal, Accounting, Tax
- Small and Medium-sized Businesses: Retail, Hospitality, Food, Leisure, Legal Services
- Large Multinationals: Apple, Tesla, Disney, Procter & Gamble, PepsiCo
There are huge chances of growth and development found in small business enterprise.
Entrepreneurship is the prerequisite for economic growth and a decline in the level of unemployment. It's an economic issue. It means business creation, development and takeover of existing businesses, and does not concern the only exemple of the entrepreneur, but all stakeholders of the company.
Today, with massive unemployment rates, entrepreneurial ventures seems to be a way that will get us moving back up the social ladder.
We need to support the creation, development and transformation of businesses because they create wealth that can be redistributed and meet the needs of the community.
The issue is to promote entrepreneurship in our society. The public authorities have to play their parts in this matter. It is possible to draw a distinction between three major aspects of a proactive approach for entrepreneurship:
- Adopt measures to support new businesses (ex : reduce some taxes the first year of activity,…).
- Develop and increase apprenticeship (ex : encourage better salaries for apprentice, facilitate tutorship,…..).
- Promote the idea of entrepreneurship throughout the society, specifically through the youngsters.
P3 Impact of micro and small business on economy
Micro: In Micro business the number of employees are required to be less than 10 and also having the turnover under £ 2 million. The business activities are much smaller in comparison to small and medium.
Small: In small business the number of employees are required to be less than 50 and having the turnover which is not exceed £ 6.5 million.
Medium: In medium-sized business the number of employees are required to be less than 250 and the turnover should be less than £ 25.9 million.
Difference between private, sole proprietorship and partnership
Private enterprise: It includes such enterprises which are owned and controlled by private person. On the business activities of such enterprises government has no control. The main aim of such enterprise is to earn large number of profits. The basic features are mentioned below:
- Separate legal entity
- They are prohibited to invite public to subscribe their share
- Main objective is to earn profit
- Owned and managed by private individuals
Sole proprietorship: On such kind of businesses only single person has full control (Bruton, Ahlstrom and Li, 2010). This person has unlimited liability. Features are mentioned below:
- Having unlimited liability
- Owned by single person
- Not separate legal entity
Partnership firm: These kind of firms are formed by the agreement between the two or more parties to achieve common objectives and earn large number of profits. Features are mentioned below:
- All partners have unlimited liability
- Equal profit and loss sharing ratio
- Common objectives
- Agreement between the parties
Impact of micro and small-business on growth of economy
- There were record 5.7 million private sector businesses at the start of 2017.
- This is an increase of 197,000 since 2016, and 2.2 million more than in 2000.