Unit 9: Entrepreneurial Ventures

Sample Answer of Unit 9

LO1 Examine what it takes to be an entrepreneur and the scope of entrepreneurial ventures

P1 Investigate the scope of entrepreneurial ventures, using a variety of examples

Enterprise analysts observe that entrepreneurial ventures have a vast scope in different sectors of development, i.e. social, political and economic. An entrepreneurial venture refers to an organisation that fundamentally develops innovation and creates opportunities to ensure social values and economic values in any business. The scope of entrepreneurial ventures ranges from the establishment of different sizes of organisations to the promotion of new policies and contributions to national income. Entrepreneurial ventures are categorised into three types: small, large and social. Each serves differently. Small Entrepreneurial ventures are generally operated by an individual to enhance their living standards. It aims to provide a better life for the family by securing all benefits for the family. Such start-ups often succeed because of limited funds and innovative factors. However, large companies are more innovative. They have more funding options. Both small and large entrepreneurial ventures ensure employment opportunities for people. People`s living standards and spending are enhanced. Furthermore, large companies manufacture all those products which have a greater demand and are equipped with modern technological features in nature. Additionally, these companies are supported by potential foreign aid and funding. Large and small entrepreneurial ventures contribute to the economic development of the state because products are exported to other nations, which earn the state huge amounts of dollars. Moreover, potential investors are aided by certain policies like tax incentives, etc. In addition, the growth of entrepreneurial ventures in any state ensures more employment, increases the purchasing power of people and alleviates poverty. Additionally, there are many other forms of Entrepreneurial ventures, like social enterprise. Social enterprises are aimed at devising solutions for different problems in society. For instance, environment protection-based enterprises are aimed at saving the environment and reducing ecological damage. Such ventures bring enormous social changes (Tripathi et al., 2022). Each Entrepreneurial venture has a different scope and aims to attain the highest position within the defined scope.               

Examples:

Recover Mania is a micro-level clothing brand that is working on sustainability ideas and the reduction of pollution by promoting sustainable clothing. Currently, its turnover is 1.5 million pounds per annum. Furthermore, it wants to expand and attain the top clothing retailer position in the United Kingdom by 2050.

Pact Prosper is a small entrepreneurial venture that comprises 49 employees. Pact Prosper is one of the leading textile companies that produces eco-friendly and sustainable clothing, including Ladies` wear, babywear, children’s wear, Socks, and hygiene products (GOTS, 2023).

P2 Examine the traits and characteristics associated with entrepreneurship

Research academicians have identified different traits and characteristics associated with entrepreneurship. Salmony, et al., (2022) conducted a research study over 95 systematic studies to trace and identify entrepreneurship traits and characteristics that differentiate entrepreneurs from other common people. Salmony et al., (2022) identified traits like innovation (Kerr et al. 2018), entrepreneurial self-efficacy (Newman et al. 2019), locus of control, risk attitudes and need for achievement.

Traits and characteristics associated with entrepreneurship

Innovation:

Innovation is the way by which any service or product is renewed and designed according to today’s needs. It may apply various techniques, processes and successful ideas. Innovative ideas lead to the establishment of big entrepreneurial ventures. For instance, Recover Mania is working on innovative ideas like introducing organic cotton and bamboo fibre in clothing to reduce carbon footprint on the environment.

Entrepreneurial self-efficacy

Entrepreneurial self-efficacy refers to the degree of confidence that entrepreneurs have in their skills to accomplish a project (Newman et al. 2019).

Locus of control:

Locus of control measures the extent to which one feels in control of happenings in his life that ultimately influence him. An entrepreneur believes he controls all happenings and events that occur in his life (Salmony, et al., 2022).

Risk attitudes;

Risk attitude is defined as people’s perception related to uncertainties while making a decision (Salmony, et al., 2022). Many clothing retailing businesses are running on traditional models, and they have achieved success in their pattern. Adapting sustainable practices in clothing is challenging and risky. Companies, like Recover Mania and Pact Prosper, are taking this risk and plan to exceed the retailing business by 2050.

Need for achievement:

National and international players have been focusing on sustainable development owing to rapid climate change and global warming. The promotion of sustainability in every field has created the need for sustainable businesses. The clothing industry is also shifting to sustainable practices like using organic cotton in clothes to minimise the emission of carbon dioxide.

M1 Evaluate the similarities and differences between entrepreneurial ventures and the traits and characteristics of entrepreneurs in those ventures.

Similarities

There are numerous similarities between different ventures. Some important and evident similarities are discussed below:

1. Value creation: All entrepreneurial ventures are aimed at creating value. It is the core purpose of every entrepreneurial venture. A hairdresser in an area of London provides hair-cutting services of hair cutting and ensures his value. eBay, an online retailing business, ensures to provide value by developing an online market for different products for people of all ages. Similarly, Recover Mania can ensure its value creation by providing access to customers to its sustainable clothing.
2. Innovation: Innovation is another similarity in entrepreneurial ventures. Business develops new ideas to ensure their growth rate and survival in the market. Successful entrepreneurial ventures emerge and exponentially grow due to their innovative strategies and products.  For instance, Boston Computer Exchange was the first online market that started selling things online in 1984 (Washington University, 2023). Today, hundreds of online retailing businesses facilitate customers to sell and purchase things from all across the world. Currently, there are very limited companies that are using organic cotton; however, recycled polyester is another option that can assist in the manufacturing of sustainable clothes. Recycled polyester can be an innovative stance for Recover Mania.
3. Profit-earning Approach: All entrepreneurial ventures are dedicated to earning money from the market through their start-ups (GBR, 2021).

Differences:

Entrepreneurial ventures are widely different and means of operating their business setups. They are different in terms of scale, risk factors, and revenue model. Each of them is discussed under:

1. Difference based on scale: Entrepreneurial ventures vary significantly following types. A small business operates at a small scale that caters to the local needs of the market. On the other hand, large start-ups are designed for rapid expansion; they target national and international markets. Social enterprises depend upon the scope of their objectives and resources (GBR, 2021).
2. Differences in Terms of Risk: Small ventures have lower risks because they often have small investments and funding. High-growth ventures are subjected to higher risks owing to reliance on external funding and a competitive market. Social enterprises encounter risks like failure in missions, lack of funding and operational possibilities (GBR, 2021).
3. Revenue Model: Small ventures generate small revenues via traditional and online platforms; high-growth start-ups depend upon investors for funding to leverage market and technology to generate more revenue. Social enterprises rely on donations and grants (GBR, 2021).

Similarities and Differences in Characteristics and traits of entrepreneurs

An enterprise analyst realises that some characteristics and traits are required in entrepreneurs.  Enterprise analysts identify the 10 most important characteristics of entrepreneurs Curiosity, risk tolerance, persistence, innovative thinking, long-term focus, decisiveness, self-awareness, adaptability willingness to experiment and comfort with failure, Self-awareness, decisiveness and adaptability. They are commonly traced in all entrepreneurs.

The figure represents important characteristics and traits of entrepreneurs

(Source: Miller, 2020)

Entrepreneurial ventures like Recover Mania should attempt to develop these characteristics when they aim to expand and achieve the number 1 position in the United Kingdom. A successful entrepreneur of large firms possesses all the above characteristics and traits that pave his way to achieving a larger goal.