This will cover certain question which are like:
- Elaborate different range in ventures in entrepreneurial areas.
- Explain the impact of small business in economy.
- Elaborate different areas and environment with hindrance and foster of working.
In UK, small and medium sized organisations basically consist of approximate 95% businesses in numerous distinct countries. These established small sized businesses are called as entrepreneurial venture (Blackburn, Hart and Wainwright, 2013). In other term, entrepreneurship can be refer to the procedure of planning, designing, launching and operating a new idea i.e. often refer to small business. The individual who initiate or establish the business ideas are called entrepreneur. These ventures play significant role in the country’s economy as these provide employment opportunities and enhance overall GDP etc. This report will analyse numerous aspects of entrepreneurial ventures and distinct typologies associated with these. This will also demonstrate influence of micro, small and medium sized business in UK on the economy of nation as well as society. The decision making of an entrepreneur are highly influenced by some determinants such as family, experience and background of individual which will also be assessed in the report for a better understanding over this.
1. Different types of entrepreneurial ventures and explain how they relate to the typology of entrepreneurship
Entrepreneurship is the procedure of designing, running and launching the new business that is started at the initial level. An individual who create and develop those businesses are known as entrepreneurs. Entrepreneurial venture can be defined as the combination of failure, risk, success and ambiguity; embracing and learning from this (Bridge and O'Neill, 2012). There are numerous differences between a small business organisation and entrepreneurial venture that develop a key distinction between both of these terms. SMEs often are related with products and services that are already established whereas an entrepreneur is the person who sets their undertakings of business along with financial risks in order to make positive outcome of it. These ventures influence the economies and communities in significant way that creates cascading influence on the commercial sector and creation of employment opportunities. Initially, this is essential to understand the basic types of entrepreneurial venture before assessing the impact of it i.e. briefly discussed below:
Small-business Entrepreneurship: As per the current market scenario, numerous sort of small size ventures are being established within UK. Such companies approx. covers more than 6 million enterprises that are introduced in order to earn survival and small money (Carsrud and Brännback, 2011). This consists of ventures including internet cafe owner, barber, travel agents, electrician, grocery stores, carpenter etc. These entrepreneurs put their financial assets at stake to maximise their benefits.
Scalable Entrepreneurship: These are one of those ventures which are developed for investing in the innovative ideas of business. They create a specific goals and vision to make change in the existing structure or idea. For performing operation, this sort of enterprise manages funds from investors which are willing to invest in the business ideas.
Social Entrepreneurship: This sort of business enterprise seeks the social benefits and performs operation and delivers service to benefits their communities despite of maximising benefits. They create only those services and products which are helpful for people who need the improvement and are in miserable condition.
Large Scale Entrepreneurship: This sort of business are arranged or coordinated to gain benefits in competitive marketplace. Such kind of enterprises focus over benefits enhancement and creating broad market space.
Whole typologies of entrepreneurial venture are associated with the entrepreneur who determines the nature, purpose and mission of performing idea in market. Hence, here are discussed some of typologies that demonstrated different ventures and are associated with them:
Lifestyle Venture: These businesses render immediate business outcomes and profits. In this, entrepreneur often operates activities by their own (Chittithaworn and et. al., 2011).
Survival Venture: These ventures are structured with the aim of managing their living. Basically, these refer to the small scale enterprise including grocery stores, cafe, barber store etc.
Managed Growth: These are often created for the monetary benefits. These people invest in those ventures which ensure them benefits and free from risk.
Social Entrepreneur: Under this, individual perform the business practices for social benefits. Beside of aiming of maximisation of benefits, these focus on social welfare and services community to its betterment.
Serial Entrepreneur: These people are those who continuously established business and trade in market. In exchange of monetary assets, they trade their creative ideas to individual who invest in the same.
Female entrepreneur: These entrepreneurs work in context of empowerment of female in the competitive world and create change with their creative and innovative idea.
Male Entrepreneur: These entrepreneurs work to attain certain target allotted to them. These use better decision making and risk taking nature to prosper (Chrisman and et. al., 2012).
2. How micro and small businesses impact on economy
Business Categorises: In marketplace, there are different sort of functions and practices which are performed for attaining targets in UK marketplace (Storey, 2016). Hence, these companies, in order to easy identification are classified into different types on the basis of size in which few are mentioned as below:
- Micro Business: It can be define as companies that are owned by single owner along with 5 worker employed under it. Cause of the capability of mobility and flexibility, numerous individual of every age can function this sort of business. In United Kingdom, there are more than 5.15 million micro businesses which were established after 2015 i.e. increasing constantly. These influence the basic structure of market and help in creating opportunity to the economy.
- Small Organisation: These sorts of enterprise are independently established and operated for the benefits of individual or earn living. In UK, 95% organisations are small sized which consist of 5-500 worker depending on the manufactured industry and products. UK after recession has been benefited largely by SMEs as this aid in providing job opportunity to society thaat improves economical condition as well (Fassin, Van Rossem and Buelens, 2011).
- Medium-sized: Such sort of companies is often well introduced and has a better track which facilitate lender and investor create their decision related to finance. It includes 100-999 employees that majorly provide employment opportunities and contribute crucial role in the GDP of nation.
Local Impact: Small enterprises impacted strongly on the nation’s local enterprises and business as these are rendering core job opportunities to the UK people after Brexit. It has majorly assisted in improvement of standard of living of country. This has stimulated their trends and emphasise purchasing power which was affected due to Brexit.
Source 1: UK employment, 2018
The above graph represents that fall in the employment opportunities in United Kingdom which has drastically been improved after the emergence of small and medium sized business. This is expected to increase by 1.75% in 2019-2020 as per the professional (George and Bock, 2011). Hence, this can be seen coherently that these activities in economy not only enhance work opportunities but raised GDP indirectly.
Regional Impact: Small enterprises have great impact over commodities manufacturing along with cost shaping of their products and services. These often influence the choice of consumer, trends in market and structure of service deliveries.
National and International Impact: It affects the country significantly as SMEs and medium sized companies has created economy development by creating drastic evolution in the employment opportunities at local level. Through this, cash-inflow among market increased that has supported the market condition and shares sensex of organisation. These activities internationally influence the GDP of nation and created a unique recognition of enterprise at international market as well.
Therefore, this can affirm from numerous consequence analysis that United Kingdom’s growth overall has been supported by the emergence of small, medium and micro sized business. For promoting these, UK govt. even have provided special subsidies to people to create such venture or business as these shapes the growth of economy in indispensable way.
3. How important small businesses and business start –ups will contribute to the growth of the social economy after ‘Brexit’
Brexit: It is UK withdrawal prospective from the European Nation. This is considered as one of major agreement among economists and brand consensus in existing economic research in which Brexit is more likely to reduce per income capita of UK in medium and long term. The process begins from 29.03.17. By 23.06.16, in referendum, state of UK published article which was article 50: treaty on European Union. It was an arguable condition and carried out distinct judgments which were taking through their prime minister. Thus, the commercial industry of UK was majorly influenced through this contract.
Through the assistance of micro, small and medium sized business organisation, UK has supported its falling economy at vast level and managed its GDP within determined period of time. These enterprises not only influenced the economy of United Kingdom but also affected the social structure and procedure at wider level after Brexit. Here are discussed some of that major impact discussed as below:
Economic and Social Evolution: Small business organisation can be described as the economical strength of UK. It can be observed that after Brexit, when UK’s purchasing power of people fallen (Gorgievski, Ascalon and Stephan, 2011). The nation has established more than 5 million organisation which helped in increasing their per income capita and purchasing power of individual. These are also liable for developing approx. 15.2 million opportunities of employment in United Kingdom affecting the overall segment positively.
Social Security Improvement: It is another significant element which aid in stability in income promotion in United Kingdom’s economy. It has helped nation by delivering proper inflow of capital and preventing crisis. This has thus influenced the economy and increased the social economical security
Revenues and Taxes Influence: Start-ups and small businesses impact on the revenues and taxes in UK cause of economical employment as these help in generating major income source of the country. If there will be balanced and aggregate income in company, people of UK will more be able to pay taxes and revenues of overall economy will be increased. Hence, after Brexit more than 75% people are paying their taxes which have enhanced the economical condition of UK again in international market.
Influence on Poverty and Other Determinants: Emerging poverty line after Brexit has been demised by providing proper employment in country that becomes only possible due to new start-ups and small business organisation (Goss, 2015). This helped in demonstrating the issues among society and aid in managing economical condition of society through delivering alternative option of income.
Hence, this can comprehend that start-ups and small businesses not only have influenced the economy of UK in positive way but also affected nation’s social condition through supporting individuals of society.
4. Determine the characteristics, traits and skills of two successful entrepreneurs, which differentiate them from other business managers
An entrepreneur can be defined as the concept that excels to confinement of business management. The individual consist of numerous unique skills and characteristics that make them different than a common person and general manager. Not whole entrepreneur are developed from common blue-print. There is numerous business men who has performed their operation in effective manner but entrepreneur that have performed the action in significant manner will be known in entire world. In the chose report, Richard Branson and Mark Zukerberg have taken as example of two successful entrepreneurs whose traits and skills are mentioned as below:
Richard Branson: He is an English investor, business magnet, philanthropist and author who are founder of Virgin Group. Here are mentioned some traits and skills of him:
- Leadership Skills: Richard Branson was popular for his leadership skills and his attitude of Think Differently (Zott, Amit and Massa, 2011). This entrepreneur stimulated each and every individual working in the organisation to perform the operations in more significant manner. The leadership skill use by company manager in maintaining and leading their employees towards right direction.
- Positive Culture: Qualification and a positive culture which an entrepreneur provides to one’s workplace make them different from a manager. An organisation manager work is to develop and create positive environment where all workers are adjust easily and perform good work for reach their company goals. Richard Branson was popular for their positive personality and decision making skills which he have opted in negative consequences.
- Innovative: A company manager have innovate in nature which help firm in developing new and unique type of products which attract large number of customers. Richard Branson always believed in creative ideas and innovative skills in regard to carry out better outcome. Such as this, an entrepreneur is more likely innovative who come up with different and better ideas beside of already existing in marketplace.
- Visionary: The firm manager is visionary in character so this will assist them in follow the future goals and targets in better manner with the help of their employees. This is essential for an entrepreneur to be visionary as they provide vision to the organisation. Such as Richard Branson who initiated his business with nothing to Virgin group.
Mark Zukerberg: Known as the founder of Facebook, the individuals are changed the way people communicate by providing more convenient, interactive and sharing platform to communicate (Jones and Rowley, 2011). Here are mentioned some of his traits and skills:
- Team Working: It is analysed that company manager work is to motivate their workers to perform team working which assist them in getting desired goals in minimum time period. Mark Zuckerberg operates operations as a team and work for team and organisation which makes him a good leader and a better entrepreneur.
- Encouraging: An organisation manager always encourage their employees for reaching with potential targets and goals. Always encourage their worker to perform best and innovative relatively which makes him unique.
- Critical Thinking: A firm manager have creative thinking skill which assist them in implementing new ideas and thoughts for their welfare. Mark has give priorities to one’s thinking in order to understand the basic vision and best interest of the topic.
- Problem Solving: The company manager have problems solving skill which can be used by them in resolving major issue which create conflicts among employees. Zuckerberg always focused over issues and resolve them whether it is minor or major problem of enterprise.
Hence, this can affirm from the above notion that this is the traits and skills of an individual which makes them a good entrepreneur as like Richard Branson and Mark Zukerberg.
How different aspects of the entrepreneurial personality reflect entrepreneurial motivation and mind-set:
An entrepreneur is distinct from the business manager on the grounds of their roles, traits, and mindset and motivation level. It is the entrepreneur who come up with better ideas and plan for the country and makes the market more creative. This is essential for individual to have some certain personality to be a good entrepreneur as this shapes their decision making, their ideas and the way of working (Karlan and Valdivia, 2011). These unique qualities and traits make them different from general manager who work within an organisation. After studying the skills and traits of Richard Branson and Mark Zukerberg, this is coherent that a manager where avoid risky decision, entrepreneur always tries something new whether it is hazardous in order to create something innovative. Through using Big Five Model, one can understand the basic characteristics of entrepreneur which is mentioned as below:
- Openness: it is one of the fundamental characteristics that represent the imagination and direct to a broad interest range. These people are often more adventurous and innovative in nature.
- Conscientiousness: The following dimension include standard feature including thoughtfulness, high control level and target-oriented behaviour. Such individuals are basically focus on conscientiousness description and are more mindful.
- Extraversion: It is the traits which consist of excitability, sociability, assertiveness, higher expressive of emotion and talkativeness at high level.
- Agreeableness: These determinants consist of personality traits that include attributes like affection, trusts, altruism, kindness and numerous pro-social behaviour (Neck and Greene, 2011).
- Neuroticism: It can be traited by sadness, moodiness and emotional instability; people who are full of these characteristics consist of irritability, sadness, anxiety, mood swings and other negative attributes.
After studying Mark Zukerberg and Richard Branson’s traits and skills, this is confirmed that their experiences and abilities make them distinct from the manager of a business organisation. Where Richard Branson is conscientiousness in nature and open-minded, Mark Zukerberg is extraversion with agreeableness trait that has influenced their decision making to the extent due to which this are considered as one of the popular entrepreneurs.
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5. How background and experience can hinder or foster entrepreneurship.
Numerous factors affect the decision making and critical thinking of an entrepreneur on which basis they are different. Here are mentioned some of those factors with example of chosen entrepreneur:
Background: Background of individual shapes their thoughts and views in more significant manner. This frames their basic traits and helps them in taking suitable judgments in context of an organisation (Schaper and et. al., 2014). For example of Mark Zukerberg, he has done his mother was psychiatrist and father was dentist. Among the educated parents, Zukerberg become more educated and aware children that identified the opportunities and developed the application of interaction in his early colleges days which later become most effective social media site. Hence, this can be claimed that background affects their knowledge and decision making.
Knowledge and Experience: Life experience and working experience both aid an entrepreneur in being professional and help them in achieving their business objectives. Without proper experience, knowledge is just piece of information which never has been executed. But having proper knowledge is also another essential element. For example of Richard Branson lack at grades in higher schools but due to his supportive parents and his experience of different journeys which did in his life, he come up with Virgin Group idea that has more than 400 branches. On the other hand, Mark Zuckerberg is studied in psychology and computer science in the college years. His parents is support him in further studies and he has various experiences of life at the time of struggle.
This can be summarise that these elements contour an individual in the shape of entrepreneur hence these are essential to undertake as well.
This can summon from the above discussed report that an entrepreneur play crucial role in the economy and society by providing and delivering distinct innovation and idea to perform work in market. Entrepreneurial activities not only enable a company in refraining more competitive but also assist in creating more economic improvement and resolve the societal problems. There are different types of entrepreneurial ventures such as small-scale business, large, scalable entrepreneurial venture etc. which are related with different typologies. These are distinct on the grounds of their size and manner of performing a function.
There are several sort of business such as micro, medium or small size organisation which play vital role in the economy. UK has mainly supported by these businesses after the Brexit and recession which now have created a better economic and competitive market. Report also states that numerous factors influence the entrepreneur mind-set and their decision making such as the background of family, their experience and education. The term entrepreneur is vastly different from the business manager as the manager is only responsible for managing firm where an entrepreneur risks their resource and financial assets. Henceforth, these are indispensable part of a country that serves a lot to the economy and society in various ways.
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