Entrepreneurial ventures' essay typology.

1. Examine different types of entrepreneurial ventures and explain how they relate to the typology of entrepreneurshipventures, including examples of each type.

2. Explore the similarities and differences between Social Entrepreneurship and Lifestyle Entrepreneurship, including two (2) existing or “real-life examples” of each.

Different Types of Entrepreneurial Ventures

According to Autio ,(2014) an entrepreneur is an individual who takes risks and creates an enterprise with the aim of making profit. Entrepreneurship refers to the activity of taking risk and coming up with a viable idea which eventually becomes a venture or business. The types of entrepreneurial enterprise or ventures always have a positive impact on the community and society by improving the economy.

There are different types of entrepreneurship in the business world which includes; small business entrepreneurship, scalable startups entrepreneurship, large company entrepreneurship and lastly social entrepreneurship. The number of entrepreneurs and startups in rapidly growing in most parts of the world. The small businesses involve entrepreneurs who sell groceries, do hairdressing, consultants, carpenters, electricians, plumbers and travel agents. In this type of entrepreneurship, they employ local employees or the family. In most cases they are not profitable and their aim is to feed the family and make little profit (Barringer,2010). The type of entrepreneurship is funded through friends and family through small business loans since they cannot access bank loans since they are small businesses. Examples of these businesses involves restaurants, retail stores, construction firms and agriculture.

Another type of entrepreneurship is scalable startups entrepreneurship in which big entrepreneurs like Silicon Valley and their venture invest in. These are the types of entrepreneurs who start a business knowing that the business will eventually change the business world in the future (Baum,2014 p.73). The business is able to attract investments from different risk takers investors or venture capitalists who are the best in their areas. The investors then focus on expansion of the business through innovation and creativity. This type of entrepreneurship attracts risk capital because of the high returns. Examples involves a company manufacturing medical devices or developing life-saving medicine; IT companies developing software or apps. Another type of entrepreneurship venture is large company entrepreneurship or ventures. These type of ventures are long lasting and do not fail. Most of the ventures grow through different innovations and offer variety of new products in the market. In the current market, other small businesses and companies require the large companies to create new products which suits the tastes of the customers, adheres to the changes in technology and new technologies. Lastly another entrepreneurship is social entrepreneurship in which the innovators create the products and services that are able to solve the social needs and problems. The goals of the social entrepreneurship is to make the lives of the individuals better through sustainability without the creation of wealth and or profits (Drucke,2014). This type of business aims at solving different specific problems in the society like health problems to create a social impact.

Similarities and Differences between Social and Lifestyle Entrepreneurship

According to Burns,(2016) social entrepreneurship is a type of entrepreneurship that focusses on sustainability of the society by creating a venture. It focusses on the communal health and well-being. Social entrepreneurs help solve the problems affecting the society by coming up with a solution. Social entrepreneurs do not focus on making profits but serving the needs and wants of the local community. Social entrepreneurship uses less financial help and hence bringing a great impact on the society. The areas which the social entrepreneurs focus on involves; economy, inequality and social life. On the other hand, leisure entrepreneurs focus on making profit for the business.

The main reason for creating the business is to satisfy the needs of the customers, increase the growth of the shareholders, expand their businesses and eventually increase revenue to continuously provide the products and services to the customers. Both social and leisure entrepreneurship aim at bringing sustainability by improving the economy through the creation of employment, innovation and creativity and lastly the provision of goods and services to the customers. While leisure or lifestyle entrepreneurs look for investors, social entrepreneurs do not, social entrepreneurs have an exit strategy while the lifestyle entrepreneurs do not have an exit strategy because of making profit. Lifestyle entrepreneurs focusses on life goals and enjoyment of life while the social entrepreneurs focus on social life (Mason,2014).

The economic growth of UK has been weak especially through the financial crisis with less output. Entrepreneurs both of small and large enterprises has played a major role in improving the economy of the UK. The enterprises have contributed to the economy through employment, innovation and economic growth.UK economy has really grown due to the tremendous progress of the enterprises due to their positive attitudes and abilities (Morris ,2010). According to studies UK economic ranking has improved because of the enterprises which have been able to provide products and services. UK is now ranked second in the world after US.UK government has helped to mentor entrepreneurs through networking, provision of mentoring support, financial resources. The government of UK has been able to provide business loans and advice to the startups businesses and they have been around 30,000 new businesses from 2005 in UK. It through creation of employment and improved innovation that the economy of UK has really grown through the small and large enterprises (Pott,2012). The government need to focus more on promoting enterprises in UK for greater performance.

SMEs Impact on UK Economy

Entrepreneurship has greatly improved the economy of a country through the following ways. First through innovation. Entrepreneurs always find a market niche and would want to get profit from the enterprise or the businesses. The entrepreneurs engage in creativity and innovation to generate income to satisfy their needs by generating income which is the driving factor in the economy. The biggest contributor to the economy is the innovation and creativity that is created by the entrepreneurs. Another contribution by the entrepreneurship to the economy is the creation of employment. Most of the entrepreneurs are unable to look for suitable jobs hence their focus is on entrepreneurship. They become enterprising by finding a market niche and they try to generate incomes as they also try to employ other employees in the business. One of the greatest contribution to the economy is the creation of employment and reduction of unemployment level.

In the developed countries40-50% of the workers are employed in the small and medium scale business enterprises set up by the entrepreneurs. This eventually reduces the poverty levels in the country and therefore it can be concluded that entrepreneurship can impact on the economy through creation of jobs and generation of income (Santos,2012). Entrepreneurship also contributes to the economy through increasing the level of competition as new entrepreneurs also able to join the market. The market may be filled by many enterprises but it is important because the enterprises will try to compete for the available resources by creating value, reduction of costs and becoming more efficient hence improving the economy. As the entrepreneurs try to compete in the market, they find ways of improving their activities and operations by using the available resources efficiently leading to increased productivity driving the economy forward by increasing the GDP (Read,2016).

Entrepreneurship helps to create new market in the existing industry because of the increased competition which causes saturation and the entrepreneurs are forced to develop new products and services hence providing new markets for the products. This can be considered to bring positive impact to the economy. Entrepreneurs therefore tend to play a big role in the improvement of the economy through employment creation, increasing competition, market expansion and penetration and coming up with new markets in the industry. Therefore, entrepreneurs can be considered to play a very important role in the economy.

There are a number of factors that motivates an individual to become a successful entrepreneur in the given industry. Some of these factors involves; the personality or the character traits of the individual, biological background of the individual and abilities, drivers and skills. Concerning the background of the entrepreneurs which entails gender, age, education, experience in the business and managerial skills (Drucker,2014). According to the case study Wang Jialin of Wanda Group came from a strict military background from the family in which he also joined the military. The family background helped him get a good network of doing business with the government and also have an iron discipline. While he was still a youth he was able to scramble and eat through hardship hence he found a way of becoming an entrepreneur. He was able to make connections in the job ridden development by becoming a manager in different companies. His family and job background prepared him to become a successful entrepreneur. On the other hand, Nandan Nilekani of Infosyst came from a family background in which the family was the manager of the company and gained knowledge and skills relating to the business that he developed. He wanted to become an independent entrepreneur since he had experience working as a manager possessing soft skills like working as a team, leading people and human interaction. Background of the individual can help him become a successful entrepreneur.

Importance of SMEs on Economic Growth of UK

The characteristics that an entrepreneur possesses help him become a successful entrepreneur in any business that he undertakes. One of the characteristics that the entrepreneur should possess is the leadership capacity characteristics in the business. In the case study examined Wang Jialin has good leadership qualities first as a military man having led employees as a manger to increase productivity of the company by being close to the government. On the other hand, Nandan had skills and worked for a company for 28 years having gained leadership skills of leading people and teams. An entrepreneur needs to delegate and form good teams just as was the case with Nandan who worked as a team and interacted well with the employees for productivity and Wang Jialin who networked with the government for the better good of the company. Both Nandan and Wang decided to be good risk takers by taking risks and looking for opportunities in their respective businesses. An entrepreneur needs to look for opportunities by taking risks and making decisions. Another characteristic that the entrepreneur should possess is that of being ambitious and confident about the business. Both the two entrepreneurs have shown great ambition about their businesses by expanding them and having the right drive to see the businesses grow. The entrepreneurs also have shown that they have good management and marketing skills as they have worked hard to change and grow their businesses through the changes in technology and different challenges.

They have been able to select the right employees and teams to run the business through greater experience, skills and knowledge of the products and market. Other qualities involve discipline, creativity, people skills, confidence, open minded and competiveness. Lastly as great entrepreneurs they have been able to have a high tolerant of ambiguity and persistent by ensuring that their businesses prosper and have a continuity despite of the challenges that they have faced in the market (Autio,2014 p.476).

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