Question Two
The above discussed four types of entrepreneurial ventures have several differences and similarities based on various factors like goals and objectives, risks involved, number of employees, structure, typology, investment, location, and working hours (Morris et al. 2018). The table below shows comparisons of entrepreneurial ventures.
factors
Family entrepreneurial ventures
Social entrepreneurial ventures
Established or large enterprises
High growth entrepreneurial ventures
Typology
Fall under survival and lifestyle firm’s typology as they are developed to perform activities liked by the owner and have to survive for a long time to meet the owner’s goals.
Fall under social enterprise typology
They are managed growth firms
They fall under aggressive growth firms
Goals and objectives
These firms goal may not be structured as they are formed to produce profits, which enables the owner to acquire basic needs for the family. They don’t focus on achieving growth
These organizations main objective is to make the world a better place to live in by providing quality products and services to people such as health care services.
These organizations main objective is to generate revenue for its shareholders and company through the development of new products and markets.
These organizations main objective is to generate revenue for the investors and founders by constantly proving innovative products.
Organizational structure
There is no proper organizational structure, and the business takes the form of sole proprietorship and sometimes partnership among family members.
The organizational structure is mainly that of trustee based organizations.
The organizational structure is mainly corporations and sometimes partnerships.
Have a complex organizational structure like that of a private and public company.
Risks involved
Low risks involved to start and run the business but competition is high because of the existence of similar firms.
The organizations gain support from the government; thus, the risks involved are not very high.
They develop new products and marketing strategies; thus, the risks encountered are medium because they manage to sell a large volume of the products produced.
The risks are very high as it constitutes substantial financial investments and a lot of pressure from investors to meet their return expectation.
Employee number
These organizations have not more than fifty employees
The number of employees depends on the size of the company
These organizations are large businesses and employee over five hundred employees.
Depends on the size and organizational structure
Working hours
No set working hours and can work for long hours
Work extra hours for some benefits but not money
Strictly followed working schedules but in case of extra hours, gain compensation in terms of money.
Work extra hours for financial benefits
Capital sources
Owner personal savings
Funded by government
Shareholders and company revenue
Investors
Question Three
Different data and statistics have shown that small and medium-sized businesses refer to any business with less than two hundred and fifty employees. Microenterprises are all businesses which have 0-9 employees. In all countries, micro and small businesses are very many and have a considerable contribution to the economy. Statistics have shown that in every one hundred enterprises in the UK, nighty nine are micro and small businesses because they have less than two hundred and fifty employees. Revenue contributed by micro, and small business enterprises promote UK gross domestic product (GDP). Micro and small businesses have various impacts on the UK economy such as job creation, unemployment creation, promoting GDP or value, diversification, linkages and foreign trade, and inflation reduction (Burns, 2016). Research and statistics have shown micro, and small businesses create a large percentage of new jobs in the UK. Though the employee fewer than 250 employees they are very many, thus creating a lot of job opportunities. These firms employ less-skilled and workers with no work experience. These employment practices are very significant to the economy because they hire individuals who may not have secured jobs in other organizations and raise workers productivity as they provide on-the-job training and work experience.
Micro and small businesses are in direct management of the owner who can observe and supervise workers to improve their productivity. Through job creation, micro and small businesses reduce unemployment rates of UK. Gross Domestic Product refers to the sum of value added by each sector in the economy for a given period. Micro and small business improves the GDP of the UK economy. Small firms make a significant contribution to the economy because they are very many and also because of the income raised in the form of wages and salaries to employees and profits to entrepreneurs. Micro and small businesses service localized markets and provide products and services to consumers. Micro and small businesses have diversification impacts on the economy. They offer job opportunities to workers blocked by established corporations and introduce new goods and services. These firms have different sub-sectors like food, processing and drinks sectors, and manufacturing sub-sectors. Micro and small businesses also diversify into distribution sub-sectors, which may encourage foreign trade. Micro and small businesses facilitate importation and supply of demanded products. They engage in more significant linkages which add value to the UK economy. Micro and small businesses can adjust their production levels to accommodate random and short term fluctuation in demand.they ack as demand shocks, thus reduce the economy inflation by satisfying temporary needs without a rise in prices. Small businesses promote competition across different sectors, which is significant in keeping inflation pressures depressed. Micro and small businesses, therefore, have positive impacts such as employment creation, economic growth, linkages establishment, economic diversification, and inflation control to the UK economy. The micro and small businesses in the UK add up to 96% and provide 33& employment and 22% turnover.
Question Four
Small businesses and start-ups have significant influences on the growth of the social economy. Small businesses and start-ups entrepreneurs are very innovative and come up with new products and services which fulfill consumers’ requirement. Start-ups capture markets very quickly and thus can generate revenue over a short period. Small businesses have diversification impacts and facilitate foreign trade, which improves the amount of income gained and facilitates social growth. Startups and small businesses reduce the unemployment rate in the economy through job creation. These businesses provide business tax which, when used promote growth of the social economy. Many startups and small companies adopt different types of corporate social responsibility to enhance their brand value. They engage in CSR activities which are related to social, environmental, and economic issues. Some of CSR activities involve the education of rural people with low financial status, which enhance economic growth later when those people are employed. Startups established in different sectors of the UK economy, which contribute to its GDP.
Small and startups have a high turnover rate, which is advantageous as by failing. The economy gets an opportunity to learn, recover, and rebuild an active organization which will survive for a long time, thus promoting economic growth. Small businesses are very flexible compared to large firms. Diversity enables an economy to endure rough conditions. Small companies and start-ups inject new competition in a stale market, enhancing growth. Small companies and startups can quickly adapt and respond to changing climates in the economy like consumer needs and economic crisis (Julien, 2018). In case of disaster, small businesses can rise again compared to large companies. With time small businesses and startups grow to large corporations which remain in their established location. Growth to large organizations is essential to the economy as large corporations will create more employment and promote the growth of the social economy by making a market that favors small businesses.
Question Five
In the UK economy, a large percentage of businesses consists of small and medium-sized companies as compared to large companies. Small and medium enterprises have a tremendous contribution to the UK economy as they have sub-sectors in every industry. Larger businesses generate high revenue because they have high brand value and provide quality products and services to consumers. In the UK economy, large enterprises are established in different countries and therefore promote foreign trade. Small and medium-sized businesses have diversified into many sectors like distribution which encourage linkages and international trade. Small businesses employ fewer than 250 employees, a small number when compared to medium and large enterprises. Large companies have many operational activities, therefore, hire a lot of employees to carry out all its operations. Large businesses promote the growth of the social economy as they spend more on CSR activities compared to small and medium-sized enterprises (Stuetzer et al. 2018). Medium and small companies also engage in CSR activities related to social, environmental, and economic problems which help enhance social-economic growth. These businesses create jobs at a different percentage, thus reduce unemployment rates in the UK economy.
Small businesses have diverse impacts on different levels of the UK economy that is global, regional, national, and international context. Small businesses fulfill demand requirements by producing and providing quality goods and services to consumers. At the local level, small businesses entrepreneurs research and analyze people’s demands and deficiencies available in the market and then produce products to meet those demands. Small businesses employ less qualified and no work expertise workers who might have had a hard time securing a job. They reduce unemployment and inflation rates in the economy. Small businesses have different sectors like manufacturing, processing, distribution, and construction sub-sectors, which extend to foreign trade at national levels (Kirzner, 2015). Revenue generated from the taxation of small businesses can be used to develop the country’s economy. At the international and global level, small businesses set up their branches. They export their innovative products and services to those countries. Through exportation, they earn foreign currencies, which contributes to economic growth.
Question Six
Vision, mission, and objectives of entrepreneurial ventures have an impact on their scope, development, and growth. Entrepreneurial ventures are significant in all level of companies. The range and development of entrepreneurial enterprises are rising in the UK economy because of reduction of recession as time passes. People prefer becoming entrepreneurs and starting their businesses instead of seeking employment, thus increasing entrepreneurial ventures scope. To attain survival goals, entrepreneurial ventures produce and develop new products and services to meet customers’ demands. By sell quality products, entrepreneurial ventures generate a lot of profits. Growth of entrepreneurial ventures is highly dependent on the quality and how the businesses fulfill customers’ needs through the adoption of affordable pricing and proper marketing strategies (Storey, 2016). Research and statistics have shown that a high percentage scope and development of entrepreneurial ventures consists of small and medium-sized enterprises.
References
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Julien, P.A., 2018. State of the art in small business and entrepreneurship. Routledge.
Kirzner, I.M., 2015. Competition and entrepreneurship. University of Chicago Press.
Morris, M.H., Neumeyer, X., Jang, Y. and Kuratko, D.F., 2018. Distinguishing Types of Entrepreneurial Ventures: An Identity‐Based Perspective. Journal of Small Business Management, 56(3), pp.453-474.
Storey, D.J. ed., 2016. Entrepreneurship and new firm. Routledge.
Stuetzer, M., Audretsch, D.B., Obschonka, M., Gosling, S.D., Rentfrow, P.J., and Potter, J., 2018. Entrepreneurship culture, knowledge spillovers, and the growth of regions. Regional Studies, 52(5), pp.608-618.