Entrepreneurship and small business management plays a vital role in establishing stability in society and promoting economic development. These are the ventures who works for different purposes but are beneficial in making easy availability of products and services. The report will evaluate types of entrepreneurial ventures and their typology which will assist in defining their pattern of working. Besides, it will demonstrate data and statistic which will reflect impact of micro and small business on the economy. In addition, it will derive traits and skills which is required for entrepreneur to manage successful business functions. Thus, it will identify example which will determine effects of background and experience on entrepreneurship.
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P1 Types of entrepreneurial ventures and their relation to typology.
Entrepreneurial ventures are key to societal development and therefore the country promotes the growth of different ventures and start up plans. Growth of small business firms helps the society by enabling easy availability of products and services. However, entrepreneur is an individual who is focused on serving customers satisfaction a by making innovation in services on the basis of changing trends. Generally, there are four types of with significant typology which is described under:
- Small Enterprises: These are generally the star ups and initial business plans which came into existence with increasing needs of society. These business are run by single person or group of people which can be either family, friends etc. the venture is started by person with the motive of earning money and establishing own existence in society. It is based on individual efficiency in capital investment and is considered risky process, because attracting consumers to star up is long term process (Amato, Baron and Pierro, 2017). It is an enterprise which own very few workers and have limited sales. Thus, small ventures are operated under partnership or sole proprietorship.
- Scalable Start-Up Enterprise: This is the new ventures which has emerged with new products and services to establishing competition. Theses are the ventures which aims at grabbing market place just after existence. However, to develop strong image in the establishes use of model before entering into market. The models are used by organisation are generally consumer centric and innovative. These entrepreneurs start up plan with complete market research which assist the person in managing successful star-up in competitive industry. Thus, these ventures are based known as innovation cluster, small percentage, risk capital and generally sole proprietorship.
- Large Enterprise: These are the companies who already have strong market existence a share. The concept of large enterprises is focused on increasing consumer based by making highly creative products by keeping a check of changing market trends and consumer requirement. Apparently, the organisation already holds competitive position and therefore, it is important for these enterprises to just maintain leading position by serving satisfaction to key stakeholders which comprise, suppliers, shareholders, employee and customers.
- Social Enterprise: Theses organisation are also known as non profit business because the ultimate motive by theses ventures is to serve social welfare and well-being. The firm creates their services keeping in mind the needs and wants of society (Saleem, 2017). Nevertheless, the funding social firm are based on sponsors, charity, donation etc. It involves no risk because it does not own capital investment.
P2 Similarities and dissimilarities between entrepreneurial ventures.
Social entrepreneurship ventures measures their success with response of society on specific idea whereas the other enterprises analyses their success by calculating profits. The planing and innovation by social ventures are focused on societal benefits and changes with no concern of making profits. Apparently, large scale and small scale organisation develops their plan and idea more feasible with the motive of services consumer satisfaction and generating profitable returns. Profits is secondary of social firm whereas it a priority of scalable start-ups and small scale business. Similarly, the major different in social ventures and small and large scale enterprise is the calculation of success where social firm evaluates their achievement by analysing people who are actually supported ad are supporting social services (Nabi, Liñán, and Walmsley, 2017). Nevertheless, other entrepreneurial ventures denotes accomplishment by measuring returns and revenues. In addition, decision making styles of social and private enterprises are completely different because the decision of social firm are based on volunteers, interest of society and sponsors where decision of private organisation are based on interest of stakeholders and generating returns. The pricing strategies of enterprises ensures companies returns with consumer satisfaction.
The foremost similarity between organisations is use of sustainable model where the focus of ventures is to innovate something new and creative for society. The ultimate focus of enterprises is based targeting maximum consumers. According to venture buyer are their asset and their services needs to be based on their neds and wants therefore every firm evaluates the costumer requirement and changing trends of market. Similarly, the ultimate goals of management of social, large, scale and small business is to maximize business in and increase market share to maximize returns where returns can be different for every venture. The firm the focused on competing with each other in accordance to market realities. Every enterprise is focused on attaining competitive advantage in order to managing successful business operations. Apart from this, marketing strategies used by entrepreneurial ventures are almost same like social firm implements the use of social media advertising to promote their social welfare plans in which the focus of organisation is to seek for volunteers and to serve needy people. Whereas focus of other organisation during marketing is to increase costumer base by creating awareness about their products and services. The management style of enterprises are relatively same like recruitment and selection process, innovation models, business strategic analysis and determination of consumer response.
P3 Impact of micro and small organisation on economy.
Managing functions of small business is quite challenging for an owner because the management needs to focus on various factors such as consumer, profits, risk of capital investment, competition, market trends etc. UK governments supports the growth of small and micro enterprises because according to economic condition the increasing SME's have increased contribution in economic development. The increasing small organisation in creating employment opportunities which has assisted in enabling employment opportunities for various skilled unemployed labourers. As per (Taylor, 2015), it has been derived that in 2014 there were 5.2 million small firms. In accordance to economic power house there are numerous organisation who are employed with 10 people which has accounted for 19 % turnover and 33 % employment. As per forum of private businesses sit has been derived that small business has created 15.2 million jobs which has developed opportunity for various people. In addition, SME's with 10 employed people are growing immensely and it has grown to 5 million enterprises till 2000. However, as per society star ups are core for business plans for people above 40 years who can not work for some other firm due to age. The increasing opportunity and support by government has motivated society of managing their firms regardless of any differences. Thus, it can be said that support from government has created boom for small micro enterprise. Nevertheless, as per business population estimation it has been derived that:
- Approximately 5.2 million private ownership firm has started their business in 2014 and its is still growing and has crossed 5 million.
- 76 % of organisation are non employers.
- The overall population of SME comprise 1.5 million firms, 46000 self employed partnership and approximately 3.3 million emerged as sole proprietorship (BUSINESS POPULATION ESTIMATES FOR THE UK AND REGIONS 2014, 2014).
- 2 million enterprise created 48 percent employment opportunities which makes it figures of 12.1 million people.
- The overall turnover of small firm was recorded as 1.2 trillion pound in which 33 percent was of private small organisation.
- The growth has led to 31000 medium size organisation who had overall turnover of 480 pounds. Further, it created employment opportunities for 3.1 million individuals.
Thus, the ration and percentage of statistics by business population estimation and contribution to economy of UK, has been determined that SME's have boomed the growth and the firms emerged as successful entrepreneurial ventures who have become huge support to economic development by their contribution.
P4 Explain the importance of small businesses and business starts-ups to the growth of social economy.
A SME or a business start up plays a very crucial and deep role in management of the operations on the social balance in a society and growth of economy of a nation. This helps in better growth of the wellness in society. The major advantage of having a good number of SME's and start ups ventures in a country is beneficial for it economy. They are the largest employers and thus cover a good amount of work force that help in effective revenue generation. On the post Brexit phase, there was a turmoil that has created a disturbance on economic and social front of the nation (Mariotti and Glackin, 2014). The separation from EU was a major decision that impacted the economic operations of the SME's and other businesses. But this condition created a big opportunity for the new trades and gave a chance of getting necessary foreign investments that impacted the operation of company in a better way. This small businesses and start ups will be the biggest employer to local as well as international work force, providing UK a chance to get sustainability on global market level.
They are also beneficial because the revenue generated is been distributed in form of profit, taxes imposed by government and other expenses that will impact the operational capability of company in a very significant manner. This firms will take the necessary socio economic decisions that will help in suitable rise in satisfaction level of the customer and will help the organisation to get the suitable support from government to grow and develop. The tart ups will attract the investors from local stage a well as global level which will increase the currency reserve of the company, and help UK to gain a good economic stability. Other than this, the adoption of latest and global culture and working with work force with different social and cultural background improves the quality of work environment and hence increase the operational capabilities and cultural acceptance within the firm. It will support a good growth of company and will support a better success for a SME's or a business start ups (Schaper And et.al., 2014). Thus, this firms have made UK a major destination for setting up of start ups and businesses. Also, it will provide a vital support to the falling economy of the nation and improve its performance.
P5 Determine the characteristic traits and skills of successful entrepreneurs that differentiate them from other business managers.
The successful entrepreneur's possesses certain qualities and traits that differentiate them from rest of business managers. These traits and attributes help them to et up a successful enterprise and have a financial stability in market. The major entrepreneur's like Steve Jobs, Richard Branson, Jack Maa and Mark Zuckerberg etc have these traits in common which make them, stand out and high than rest of others (Burns, 2016). Some major traits that makers this entrepreneur's a higher success are as follows:
- Values The Time: The successful business makers have the quality to value the time, not only of themselves, but of others too. They will follow the time saving approaches to get their work done and will set a time table to follow for performing on regular period or intervals. This helps them to achieve the targeted goals in more effective way.
- Effective Planning: Entrepreneurs plan their work and work their plan in a very effective manner. This planning helps them to identify their work and also aid them to get a hierarchy of importance of tasks. This helps in better handling of operation and support a good meeting of targeted goals and operations.
- Keen Listeners: All the entrepreneurs are a very good listeners and hear the guidance and suggestions they get over the product or service with deep interest and attention. This help them to rectify the problems and come up with an innovative idea to mitigate the problem faced by people and develop it as a profitable business (Hatten, 2015).
- Adaptable To Changes: Entrepreneurs are the most adaptable group that help in suitable handling of operations that support a good rise in compatibility of the operations and gaining a good hare of market that will help them to meet the targeted goals and make necessary alterations or modifications in their product and services as per the requirements of the company.
These traits and qualities will help in suitable rise in compatibility that will help in suitable rise in functional ability of operation's this helps in suitable rise in their effectiveness and help them to gain an effective customer satisfaction level by meeting the needs and requirements of their customer's. Other than this, it will look after the better handling of business operation's that will support a better setting up of enterprise and gaining a good market share and revenue generation. Also, a good leadership will also help in the better development of company's production capacity and will support it to develop in good pace.
P6 Assess how aspects of the entrepreneurial aspect's personality reflect entrepreneurial motivation and mindset.
The entrepreneurial attributes and aspects play a very deep and crucial role in the management of operations performed by an enterprise. An entrepreneur is motivated by his target goals and surrounding that will help in suitable rise in capability to perform well in market. The skills and traits, that are been possessed by an individual entrepreneur will help in suitable increase in effectiveness of a business organisation. This will also help in better management of business actions that will support a good management of their customer's needs and demands. The determination and good behaviour is a motivating trait that help in developing a positive vibe. The valuation of time and developing a strategic plan will help in suitable rise in effectiveness of the operation's. Other than this, the adaptability towards ongoing changes in market will help in better growth and development of enterprise and is a motivating aspect that help in suitable growth and development of a business firm (Mamabolo, Kerrin and Kele, 2017).
An effective entrepreneur will always look after the present as well as upcoming market trends and will plan accordingly to the traits and the condition which are prevailing in the market. Apart from this, being firm on one decision and valuing the opinions and suggestion provided by others is also the major trait that help in suitable rise in operational capability of organisation. This will also help in suitable management of operations which will support an entrepreneur to mitigate the competition in market and gain a long going success. The adamant behaviour toward one's ethics and beliefs is also an inspiring trait, that will cause the good rise operational capability of an organisation in a better way.
P7 Examine, using relevant examples, how background and experience can hinder or foster entrepreneurship.
The experience and background related to education and business will play a very deep role in handling of operation that will help in suitable rise in compatibility of operations that will support a good growth and development of a business firm. A good knowledge and experience to carry out operations that will catalyse the development and setting of a good and strong enterprise. Other than this, having a better financial and technical background also act as the advantage while setting up of a good a better goals that will help in effective management of business operations and meeting of targeted goals. This factors help in effective fostering of traits that have created a good handling of operation and has provided an enterprise with a good growth and development.
However, it is not quite necessary for an organisation or an entrepreneur to have a good knowledge and background of respective field. One must possess the suitable traits and qualities that will help in setting up of a good and strong enterprise. For example, Steve Jobs had no background knowledge of computers and IT and had never written a single line of code. Yet, he managed to create one of the world's biggest IT companies, Apple Inc. his explicit communication skill, marketing tactics, intuition of understanding the customer's need and demands have helped him a lot to gain a good control over the operations that had helped him in setting up Apple Inc. Similarly, the founder of KFC, Col. Harland Sanders had no economic resources when he started his venture. But with his strong determination, skills set and better communication skills, he was able to create one of the most loved fast food brand. Thus, it can be said that it all depends on the perception and attitude of a person or an entrepreneur toward the quality of services and products it offers to its customers (Matchaba-Hove, Farrington and Sharp, 2015). Other than this, a good developing of interpersonal relationship, adaptability to up coming changes and accepting the innovation helps and entrepreneur to establish a successful business venture in market.
The report concluded with analyses of enterprises and small business management which has become a crucial part of society and economic development. From the report it has been determined that there are generally four types of entrepreneurial ventures which work differently that is scaleable start-up, social, small scale and large enterprises. In addition, analysis of typology of firms derived similarities and dissimilarities between ventures. Besides, the report outlined impact of SME's on UK economy which reflected that that growth small organisation is supporting economic development by creating employment opportunities and by making sufficient contribution. Thus, the report concluded with skills and traits of entrepreneur which are core necessity for managing successful entrepreneurial ventures and functions.
- Amato, C., Baron, R.A. and Pierro, A., 2017. Regulatory modes and entrepreneurship: the mediational role of alertness in small business success. Journal of Small Business Management. 55(S1). pp.27-42.
- Burns, P., 2016.Entrepreneurship and small business. Palgrave Macmillan Limited.
- Hatten, T.S., 2015.Small business management: Entrepreneurship and beyond. Nelson Education.
- Mamabolo, M.A., Kerrin, M. and Kele, T., 2017. Entrepreneurship management skills requirements in an emerging economy: A South African outlook.The Southern African Journal of Entrepreneurship and Small Business Management.9(1). pp.1-10.