Role of Entrepreneurship in UK Economy and Social Development - Paper Example

Introduction

This report is established to critically analyse and evaluate entrepreneur, entrepreneurship, and its impact on UK economy and social development. Accordingly, the first section of the report defines entrepreneurship and entrepreneur, explains characteristics, behaviors, and motivations of entrepreneurs, elaborate Entrepreneurial activity, and enterprise, and examines different types of entrepreneurial ventures up to a merit level.

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The second hurdle of the report discusses similarities and differences between different types of enterprises such as survival, lifestyle, managed growth, and aggressive growth ventures up to a merit level. The report also discusses the economic contribution and role of small companies in the UK along with data and statistics up to a merit level.

This section of the report provides definitions, scope, and typology for entrepreneurs and entrepreneurship. It also examines different types of entrepreneurial ventures and explaining how they relate to the typology (various types) of entrepreneurship.

Definition of Entrepreneurship, Intrapreneurship, and the Differences between the Two Concepts

Definition of entrepreneurship

Creating novel activities of value by devoting necessary time and effort while knowing the risks, yet continuing until receiving rewards, monetary and personal satisfaction or the freedom required at the beginning of the process is defined as 'Entrepreneurship' (Lu and Beamish, 2001; Trompenaars and Asser, 2010).

Definition of intrepreneur

An intreprenuer is a person who behaves like an entrepreneur while being employed. The individual possesses the same skills as an entrepreneur but works within a company or an organization.

Differences between entrepreneurship and intraprenuership

According to Cadar and Badulescu (2015) in intrapreneurship the intrapreneur's activity has a restoring character while in entrepreneurship, the entrepreneur has a creative role. In intraprenurship, the company's culture can be the primary obstacle while in entrepreneurship; the market is the primary obstacle. Additionally, in intraprenurship, the company relies on its financial resources to fund its activities while in entrepreneurship; the owners depend on personal funding sources.

Characteristics, Behaviors, and Motivations of Entrepreneurs

Entrepreneur's Characteristics

Entrepreneurs have the drive to achieve, so they take calculated risks. They have internal local of control, and they thoroughly tolerate failures, seek feedback, integrity, and reliability are their core values (Young & William, 2005; Weiss and Legrand, 2011).

Entrepreneur's Competencies

Entrepreneurs are having distinctive competencies such as they take the initiative, sees opportunities and acts quick, persistence, seek information, have a concern for high quality and committed to working. Entrepreneurs are efficiency oriented, plan systematically, solve problems, have self-trust and self-confidence, assertive and able to persuade audiences effectively (Yoffie, 2008; Trompenaars and Asser, 2010).

Entrepreneur's Motivation

Entrepreneurs are motivated by three needs for achievement such as to achieve power, to gain affiliation or to gain money/achievement. For example, depending on entrepreneur's personal motivation towards the need for progress, need for control and need for association motivate entrepreneur to move forward (Lu and Beamish, 2001).

Entrepreneurial Activity and Enterprise

One of the entrepreneurial activities includes manufacturing of goods and services to fulfill human needs and wants. Exchange of products and services, trading across the borders, selling online, creating value, creating wealth, innovation and creativity, creating jobs, generating financial and social ROI, paying taxes for governments, contributing towards the economic growth of the countries, etc. They are immensely important for the world especially for the countries that have a free market economy (Yoffie, 2008; Hutt and Speh, 2013).

Different Types of Entrepreneurial Ventures

According to Morris et al. (2016), the various types of entrepreneurial ventures include survival, lifestyle, managed growth, and aggressive growth.

Definition of public entrepreneurial venture

Public ventures are government-owned or government-linked organizations that are established to provide products and services to the general public of the country. For example, the civil services, education, military services, health services, transportation, etc. are public entrepreneurial ventures and these organizations have distinctive objectives to achieve on behalf of the government and general public (Hutt and Speh, 2013).

Definition of private entrepreneurial venture

Private entrepreneurial ventures are owned independently, and these firms are built by individuals who have first identified the business opportunities, set up the business and put their effort in bringing the company into a certain extent, and they may sell it, harvest or divest it (Oviatt and McDougall, 2005).

Definition of social entrepreneurial venture

Social entrepreneurial ventures bring a set of unique resources to exploit an opportunity by working together to achieve higher social returns for a broader community (Brooks, 2009).

Example

For example, there will be an opportunity in the broader community such as underused human capital and a social entrepreneurial firm can endeavor a new business that focuses on finding jobs for young people in the society with a good faith so that this will create a safer neighborhood and young people will not return to jail. This business brings higher returns to the community and perceived by the society as a highly ethical faith-based setting (Lu and Beamish, 2006; Cateora et al., 2011).

Figure 1 Different types of entrepreneurship ventures (Source: Oviatt and McDougall, 2005)Different types of entrepreneurs

Entrepreneurs vs Intrapreneurs

Entrepreneurs are putting their thinking into practice through their business venture whereas; intrapreneurs do not need to establish their business to put forward their entrepreneurial thought (Palich and Bagby, 1995).

Entrepreneurs are driven by monetary benefits and goals when outing their ideas forward, whereas, intrapreneurs seek value, recognition, authority, self-satisfaction, etc. like non-monetary drives when putting their ideas into action for the successfulness of the company that they work for (Sarasvathy, 2001; Stokes and Wilson, 2006).

Examples of intrapreneurs are the CEOs, managing directors of larger organizations where these individuals take direct responsibility to achieve organizational objectives and profitability (Peters et al., 2009).

Survival Ventures

According to Morris et al. (2016), survival ventures are the type of business activities that provide basic subsistence for the entrepreneur and his family. The business only exists to provide for basic financial needs, and once the requirements are met, there lacks enough money to reinvest back to the organization. An example of a survival venture is a family-owned business.

Lifestyle Ventures

Lifestyle ventures offer a relatively stable income for the owners due to a workable business model and a maintenance perception to management (Morris et al., 2016). The owners try to make reinvestments into the business to sustain its survival in the local competitive market. An example of a lifestyle venture include blogging, consultancy, and the hotel industry.

Managed Growth Ventures

In this scenario, the venture has a workable business model. The investment is characterized by launching of new products, periodic entry into new markets, steady expansion of facilities including locatio...