Entrepreneurship refers as an important process through which a person run their business by taking risk and converting into larger profitability. It is a dynamic process to create the chances of attaining wealth which may leads in improving the economic growth. In addition of this, entrepreneurs also define new and innovative ideas to set their business and at the same time also deliver quality products and services (Blackburn, Hart and Wainwright, 2013). For attaining higher growth level in market, entrepreneur should make innovative products to invite larger number of customers towards its products. In addition of this, small business management is also play important role in managing as well as developing process in an effective manner for attaining positive outcomes. The main aim of this is to generate profitability level at market place. Current report is discussed about venture types with typologies. Along with this, impact of small business also defined in this report to improve the economic growth. Furthermore, key aspects of entrepreneurial aspects also mentioned in this project which foster on hinder the entrepreneurship.
P1 Types of entrepreneurial ventures and their relationship with typologies
It is refer to smaller venture which is operate with the aim of attaining day to day profit. Along with this, it is that type of business which make as well as run by individual with new and innovative way to attain number of opportunities. This will directly contribute in developing economic growth. Along with this, entrepreneurial venture are contribute in developing economic condition and creating wealth by taking huge risk. This will aid in producing creative goods and services.
An individual who run their business with limited resources and huge risk as well. Along with this they are only one person who make new and creative goods, take risk with the purpose of generating larger profitability (Bridge and O'Neill, 2012).
Types of Entrepreneurs: There are some entrepreneurs who operate their business with their specific goals and objectives. All these can be understood by following points:
- Serial Entrepreneurs: These type of people are start their business with new and innovative ideas and also implement on continuous basis. They having enough funds to operate their business in appropriate way (Carsrud and Brännback, 2011).
- Social Entrepreneurs: These type of people who operate their business for resolving society problems not generate profits. Along with this, they are capable for handling issues of society in order to provide them solution. This will lead in improving development of economic growth.
- Female Entrepreneurs: These type of entrepreneurs are mostly women who start entire business activities with effective way. These type of companies ate owed by female entrepreneurs as they are highly responsible for determining 51% employment.
Concept of Entrepreneurship:
It is consider as an important process of designing, preparing for launching new and innovative business with the purpose of attaining profitability level. In this they take huge risk to convert into profit. Along with this, it is an effective and creative process which take lots of time and energy to run business for grabbing customers attention towards attractive products.
Key Ventures of Entrepreneurs:
- Small business entrepreneurship: In current scenario, various small business are operate in UK market. Mainly, approx 6 million operate their business at small level with the aim of improving the economic growth (Micro and small-business ventures, 2017). This type of business includes various firm such as travel agents, carpenters, electricians, cafe owner and many more. IN addition of this, all these type of business operate in their risk which the aim of attaining larger profitability at market place.
- Scalable entrepreneurship: These type of venture are define new and ideas with the purpose of change the world. In addition of this, they also manager as well as arrange funds for market to improving the overall performance level.
- Social entrepreneurship: These type of business are operate with the purpose of providing benefits to society by providing them quality products (Chittithaworn and et. al., 2011). They also set their process for improving their living standard which contribute developing economic growth of the nation. One of the main aim of this type of business organization is to provide solution to the society in order to improve their living standard.
Relation of Venture With Entrepreneur Typolog:
Under this all types of entrepreneurial ventures are largely connect with typologies as scalable entrepreneurship is relate with lifestyle ventures. Thus, there are some typologies which is relate with types of venture which operate in market place.
Types of Typology: It includes various type of typologies are as follows:
- Lifestyle Ventures: These type of business are start with the purpose of attaining immediate profits at market place (Chrisman and et. al., 2012).
- Survival Ventures: Under this, business are start for earning profits for the family. Along with this they operate their business for generating profits for improving their living standard. Grocery stores, internet cafe, barber stores and many are comes under this business.
- Managed Growth Ventures: These types of business run their business with smart man who effectively understand that how to make money. In addition of this, the people invest in those business for attaining profitability level. The main aim of this business is to manage their growth level at market place.
P2 Similarities and Difference between entrepreneurial ventures
Various types of entrepreneurial ventures are run their business in society for developing the economic growth of the nation. All these are totally different from each other and also having some similarities. This can be understood by following similarities and differences between entrepreneurial venture are as follows:
P3 Assessing and interpreting the impact of micro and small businesses in economy
Various types of business are operate their activities in society as they directly contribute in developing economic growth. All these can be understood by following types:
Micro Business: This type of businesses are operate by single person as no of workers are 0-10. Along with this, various types of micro business which operate by the women and youngsters. In this owner of the business perform all the activities according to their skills which may provide support to enhance the chances of attaining higher profit (Fassin, Van Rossem and Buelens, 2011).
Small Business: These type of business are refer to those people who operate their business with the aim of generating profits. Under this the workers number of 0 to 500. Under this, number of small business run in UK market. Along with this, this type of business offer number of job opportunities to local people to enhance their living standard.
Medium Size Business: These type of companies are divided in small and large business. Under this no of workers is 250 to 500. As they operate their business for reducing the employment within the economy.
Nature of Small Business:
- Manufacturing Firms: These type of business are having 250 workers as they produce as well as manufacture raw materials to convert into finished goods.
- Services: In this, annual income is approx 2 million in which business serve its quality services to customers as per their needs and wants.
- Wholesaling: Under this, they provide goods and services to consumers which may leads in satisfying customers needs (George and Bock, 2011).
- Consulting: These type of business are provide sources of management in order to to managing all the finance sources in effective manner.
Characteristics of Small Businesses:
- Small business operate as well as manage by single person in which all the risk and losses are manage by owner because there is no delegation of authority.
- Along with this, family are runs this type of business with hired workers.
- This type of business make short term planning to attain better results.
Impact of Economy of SME'S: Under this there are some impact of small business on economic condition. Which can be understood by following points:
- Local Impact: SME'S having huge impact on local companies as it provide employment to people for improving their living standard. It positively impact on local business which deliver quality products and services to larger number of customers.
- Regional Impact: In this, SME'S largely impact on region by delivering innovative and creative products and services as per customers needs and wants. As it helps in understanding customers needs and wants in most effective manner.
- National Impact: Under this, SME'S directly impact on nation as it helps in developing the economic growth of the nation. As it create various opportunities to local people by providing them job. With the help of this, they easily generate money for improving growth level.
P4 Contribution of small businesses and start-ups in growth of social economy
BREXIT - This was a British term and it was arrived from the Greek word “British Exit”. This was the most popular term used in order to make discussion about the withdraw of UK from the European Union nations. This process started in March 2017 and the people were voting for the Exist of Britishers but on the other way the Chairman was not in favour finally when the results were announced at that time Prime Minister resigned from his seat (Gorgievski, Ascalon and Stephan, 2011). This was the emerging factor as the new PM was now trying to break the chain of EU negotiation.
Difference Between Start-Ups and Small-Business - The major difference between small business and start-ups are evaluated below as:
Impact of Small-Business on Social Economy of UK are Described Below as:
Economic and Social Development: The small business operations are valuable for the social development of the nation (Goss, 2015). The small business operations have provided employment to more then 5 million people in UK and this is the most valuable factor which results in overall economic development.
- Improvement On Social Security: This is the most important factor as it results in promotion of economic development in UK by stabilising the income factor. This result in providing income to the family members if any person has loss their life, retirement and disability. This is having implications in economy and this results in establishing Balance of Payment in Economy.
- Effect On Revenue And Taxes: As they are more employment opportunity in UK economy so people are earning money and this results in economic development of nation. If there is employment then people had to pay compulsory taxes so more amount of cash will be collected which helps in growth and development of firms. There is an effective relation between taxes and revenue because if the income factor will be maximised then it will result in maximising the income factor (Jones and Rowley, 2011).
- Effect On Poverty And Other Factors: This is the most effective factor for the growth and development of the economy because poverty results in slow growth in the economy. The small business operations are valuable in order to provide income to people so they can easily fulfil their needs and wants in the economy.
P5 Characteristics, traits and skills of successful entrepreneurs
The development of new and innovative ideas are easy but it is very difficult task in order to become an entrepreneur. If person wants to start up their own business operations then they should posses some skill and capabilities in order to achieve growth and success in their business operation's. The skill and capabilities of enterprise and mangers are evaluated below as:
If a person wants to achieve growth and success in their operations then development of business idea is not sufficient. They have to plan and develop strategies in order to effectively carry out all their business activities (Karlan and Valdivia, 2011).
The mangers should set vision which are beneficial for all the employees in order to carry out their assigned business operations effectively.
The communication skills plays an important role in order to successfully carry out all the business activities by their employees.
This is the most important skill that is present in Managers and this is the most beneficial factor in order to gain trust and confidence of employees.
The persons who wants to gain success in their ventures should focus on team working in order to carry out the whole business operations effectively.
The Manager should divide all their working equally among the employees in order to complete all their operations in desired time frames.
The entrepreneurs are deeply focusing on the assigned task that are allotted to them. All the actions are taken according to their desired needs and wants.
The managers are taking deep inside in order to know about all the plans and policies effectually.
The Skills and traits of an enterprise are evaluated below as:
The enterprise should focus on their assigned business goals and objectives in order achieve their target in desired time frames that have been allotted to them. For this entrepreneurs needs to provide better support to workers as they effectively implement all the activities in appropriate manner. This will aid in improving desirable results in appropriate way.
The entrepreneurs should not be afraid to take risk because this is the major factor which help them to fight with all the difficulties and they will achieve growth and success in their ventures. As they easily increase the chances of attaining higher profitability level. Which directly contribute in improving the performance level of an enterprise (Zott, Amit and Massa, 2011).
The entrepreneurs should have confidence among themselves so they can easily face all the difficult situations which come across their life. This will leads in determining the ways to resolve issues and conflicts situation which may leads in enhancing the performance level.
They should able keep their foot forward and ready to accept challenges in order to achieve growth and success in their business activities.
P6 Assessment of aspects of entrepreneurial personality in reflecting entrepreneurial motivation and mind-set
Entrepreneurial personality is play important role in developing business and economy as well. Thus, it is necessary for owner to having good personality so that they easily set their mind set and motivation as well. Along with this, personality, traits, skills and having good personality individuals easily attain better success within their business. With the help of this traits, entrepreneur easily make their strong personality as they easily carried out their activities in an appropriate manner. In addition of this, it is also said that entrepreneurial personality largely affect the motivation and mind set of people. In this context, the Big Five model helps in examining traits of people:
Openness To Experience: It shows creativity, innovation and creative thinking as well. In this entrepreneur should be open minded which helps in improving the performance level of business.
Conscientiousness: This factor relate that the entrepreneurs should be appropriate and effective so that they easily achieve their set goals and objectives by performing their task with high efficiency. With the help of this they easily generate larger profitability.
Extraversion: It is also an vital factors in which entrepreneur is energetic as they easily perform their work which may leads in becoming a leader.
Agreeableness: It is important for entrepreneur should be make good in nature as they effectively work with their workers. This will helps in increasing the trust of the staff members in them.
Emotional Stability: For effectively complete the entire work, entrepreneurs should be calm and focus at the time of implementing their activities. This will helps in improving their abilities and knowledge as well.
P7 Factors That Foster or Hinder Entrepreneurship
Number of factors are directly affect the entrepreneurship as it is important for entrepreneurs have to effectively control in their practice in order to increase the chances of improving their strength level. In this context, past background, living standard, family background and many more are largely affect the entrepreneurs activities. If an entrepreneurs belong form good family background as they easily take right decision and make their business activities effectively. With the help of this they easily run their business and attain better success at market place.
In addition of this, education level also affect the behaviour and attitude as they easily handle as well as manage any kind situation in appropriate manner. With the help of this they easily perform their business activities in appropriate way (Aspects of Entrepreneurial personality, 2017). Along with this, a qualified person easily manage their work and practices which may aid in attaining set goals and objectives in appropriate time frame. By having better education, entrepreneurs easily take decision and also implement innovative ways to operate their business activities with the purpose of attaining desirable goals and objectives. This will make them capable to enhance their skills and knowledge.
Thus, positive and negative attributes are also hinder on entrepreneurs which is create due to former knowledge and experiences. Entrepreneurship play vital role in improving the performance level of the company and its activities as well. By this entrepreneurs can increase the chances of attaining desirable goals and objectives in appropriate period of time. For example, Travis Kalanick motivate their workers at workplace as all these are easily perform their duties for attaining set goals and objectives in an effective way. It directly contribute in becoming as successful entrepreneur at market place.
From the above mentioned report, it can be concluded that entrepreneurship is one of the important activity for executing as well as developing a new business. Under this, individual runs business with the purpose of attaining higher growth is known by entrepreneur. Mainly, they start their business at small level in order to attain higher profitability level. Along with this, various type of entrepreneurial ventures are also there in society in which entire decision is based on entrepreneur that what king of business they want to do in market. Furthermore, various type of entrepreneurial ventures with typologies is also discussed in this which may leads in enhancing the economic condition in most effective manner. It also define the main different between small business and start-ups which play vital role in growth the economic growth of the nation. Skills and traits are also required for person to become a successful entrepreneur.
- Blackburn, R. A., Hart, M. and Wainwright, T., 2013. Small business performance: business, strategy and owner-manager characteristics. Journal of small business and enterprise development. 20(1). pp.8-27.
- Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small business. Palgrave Macmillan.
- Carsrud, A. and Brännback, M., 2011. Entrepreneurial motivations: what do we still need to know?. Journal of Small Business Management. 49(1). pp.9-26.
- Chittithaworn, C. and et. al., 2011. Factors affecting business success of small & medium enterprises (SMEs) in Thailand. Asian Social Science. 7(5). p.180.