Entrepreneurship means the capacity to develop, organize and manage a business taking risk in order to make profit. Starting of new business is the best example of entrepreneurship. Innovation, ability to succeed and risk taking is the main characteristics of Entrepreneurship. The assessment is about understanding the skills and qualities of entrepreneurship. In this report we are introducing the different types of entrepreneurial ventures and how they relate to different types of entrepreneurship. The assessment is also get to know about the different types of ventures: public, private and social enterprises and also different size of ventures: micro, small, medium and illustrating the impact on economy. The report is critically examining the scope, development and growth of entrepreneurship and how small businesses have impact on different level of economy (Certo,2018).
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P1: Different types of entrepreneurial ventures and explaining how they relate to the typology (different types) of entrepreneurship.
Entrepreneurial ventures is the activity or a business start with taking a risk to achieve a profit .In entrepreneurship an owner of the enterprises are willingly to do something innovative and business operations are doing with their own risk . Entrepreneurs serves new product into the market and attract the customers through their new product . An entrepreneurial venture organizes , manages and assumes the risk of enterprises. They earn a long term goal , residual income through their own directed business. They set their goals with the taking a chance of risk and dedicate to business with their effort to achieve a goal. Planning and preparation for business is also part of work of entrepreneurial ventures. They can help to GDP and increase national economy.
Types of an entrepreneurial ventures
1. Small business Entrepreneurship
Small business are privately owned corporations, partnerships, or sole proprietorships that have fewer employees and/or less annual revenue than a regular-sized business or corporation. Businesses are defined as "small" in terms of being able government support also apply in it and qualify for preferential tax policy varies(David and et.al., 2018).
2. Scalable start up entrepreneurship
Scalable start-up is that type of entrepreneurship in which entrepreneurs looks for best and brightest. Scalable business model and repeatable are search by them. When they find it for the rapid expansion they focus on the scale that requires even more venture capital.
3. Large company entrepreneurship
This is also a type of entrepreneurship with finite life cycles. It involves sustaining innovation, offering new products that are different from their core product. Its change the customers taste, launched new technologies, legislation, new competitors, etc. can be pressuring for disruptive innovations. It requires large companies to make new products sold into the new consumers in new market. Innovative company is not doing better to the existing company ,it is tough task for the large company entrepreneurship . It is difficult to existing in competitive environment for an entrepreneurs so it cannot be success of new ventures in a market.
4. Social entrepreneurship
Social entrepreneurs are innovators who focus on society and create the products according to taste of society and make the product according to need of society. They try to solve the customers problems by their product and serves the product with their wants. But unlike the scalable start up their motive to make the world a better place , not to take a share of market. And they create to wealth for the founders. They may be non-profit(Farooq, 2018).
5. Micro-enterprise ventures
Basic subsistence venture for the entrepreneur with less capacity to reinvest. It’s easy to enter in market with low investment capital. It's a small business employing 9 people or fewer numbers of people.
P2: Similarities and differences between different entrepreneurial ventures.
The difference between large company entrepreneurship ,small business entrepreneurship and social entrepreneurship are :-
1. Business Size Basics
A business size measured by the numbers of workers works in the organization that works for it or by total sales within the defined time ,In large business enterprises the size of the company structure are large then the small business while small business less numbers of worker are worked because the structure is to short than big and in social business the number of workers. social enterprises branding the employees ,the employees brand reflects well on the corporate brand
2. Business Legal Structure
Business legal structure determines how the enterprises is managed,taxes and whether owner are liable for business. In small business ,the company start as sole proprietorship or partnership, and they are only responsible for all operations and complete control over the business and owner is sole proprietor of business so they pay a taxes for business profit on their personal income tax returns and are legally liable for business debt. Large companies owners are shareholders and thy legal engaged in legal activities because they select the board of directors by voting. In social business, it is financially self-sustainable and it is non-profit organization business.
In large business the salary of employees is higher than the small business ,in large organization, incentives are also gives to their employees and scale is large than small organization but in social entrepreneur the organization is work for overcomes to poverty.
In large company entrepreneurial the politics can play a major role in success because the myriad layers management and the generally long standing age of larger, organization, politics tends to play lesser role , while in small business entrepreneurial it is less than big organization because it is also a family business and in social entrepreneurial it is work for society so there less chances for politics(Harley and et.al., 2018).
In social entrepreneurial the market is not a department because there are n need to do ,society play this activities of marketing this is the public company so there are less investment is required while large company invest their capital on marketing ,they invest on the promotion of the product and small entrepreneurial they do there marketing by the personal relation.
Similarities Of Micro Enterprises And Small Business Enterprises
Small business and micro enterprises characteristics are mostly same because both both can be starts at low budget and short term planning. Less resources are used in both . Less numbers of Employees are worked in both organization. Risk is factor is same in both the business. Small business and micro enterprises are provides employment and contribute to economic growth. In both business the profit is the income of proprietors.both business can easily entered in market and making a profit in definite time period so they are similar to each other. both are operate at small scale.
P3: Impacts of micro business and small business on economy.
Micro business is generally known as small business, in that nine people or fewer people are worked, it having a balance sheet or turnover less than a certain amount. Mostly family business are known as micro business where one or two people are worked. Micro-enterprises owners are mostly earn for the living support themselves and their families.
Mostly family business are known as micro business where one or two people are worked. Micro-enterprises owners are mostly earn for the living support themselves and their families.
Small business are independently owned by the sole proprietors and partners. it is limited in size. There fewer employees are worked. Small business are related to the grocery, hairdressers, consultants and those business are small business which are not need to invest more amount of capital , any one can starts this type of small business(Haskins,2018) .
Impacts of the micro business and small business on an economy
Are it can helps to grow our economy and reduction of poverty. there are three primary way that small business contribute to our nation. They gives opportunities to people for achieving a financial independence, encourage innovation and opportunities for employment which can increase the living standard of peoples of our country. They are growth engine to government and citizen both to acquire goods and services they need to grow. At same time it offers an opportunities to real people with good ideas to act upon them and make their business reality. small business and micro business helps to economy by giving the money back to the community. It helps to increase financial stability to economy overall its positive impacts can increase the economic growth of our country.
From the statistics we observed that the micro business which is indicated by the blue line are less grow than the small business which is shown as red lines. In this interpretation we can find both businesses are increase from 2008 to till now but micro business is less growth to the small business. In 2008 both stand at same place but after some period both declined to their growth. Micro business declined more than small business . Both the business are grow with the periodically which is shown in this graph and observation. We can find this growth by this interpretation and analysis that at the present year both are at high pick but micro business is less achieved than the small business .both business are moved upward but the small business scale moving upward with the increasing stage while micro business also moving upward but it is grow with the constant speed .so both are not equally grow small business are more than achieve their goals than micro. In 2010 both business are at equal stage but in 2011 its can different to achieve their goals and growth. In 2018 both are highly indifferent to each other because the small get more success than micro business so both businesses achieve their success at different scale.
P4: Explain the importance that small businesses and business start-ups on the growth of the social economy.
Small scale business has great impact on the growth of social economy. Small businesses may not earn so much money as much as large businesses but they are a quibbling component of and major contributor to the strength of social economies. Employment opportunities is presented by small scale business, as they are serving building blocks of many countries. SSI are large contributor to economic growth of social economy. SSI has generated 64% new job to the economy according to SBA (Ismail, Sawang and Zolin, 2018).
The techniques use by Small scale businesses is labour intensive, which provide grate opportunities to large number of people. SSI help to reduce the unemployment in grate extent in the economy. Artisans, hand-craft workers, technically qualified person and people doing traditional arts are much employed by SSI. SSI provides employment in remote areas and remote areas. SSI gives employment to both skilled and unskilled people.
Facilitates Women's growth
SSI is providing employment to females, which is the best advantages of SSI. SSI provides both indoor and outdoor employment. SSI gives employment to women's how cannot go outside like tailoring, cooking food, preparing polythene bags and many other indoor works. SSI also make available job opportunities to women's who can do work outside the home.
Mobilization of local resources
Small scale businesses helps in mobilizing the local resource. It can utilize good amount of talent, saving and entrepreneurial skills and qualities in rural sectors. The knowledge, skills, talent and qualities which remain unutilized and which remain idle is used by Small scale industries in efficiently.
Helps in promoting exports
There is phenomenon growth registered by small scale industries in exports over the years. The exports recorded is â‚¹393 Crores in 1973-74 has increased upto â‚¹71,244 Crores in 2003-04. Small scale industries contributes about 35% of total exports. It also helps in increasing the country's foreign exchanges(Omorede and Axelsson, 2018).
Complements large Scale industries
SSI plays a antonymous roles to large scale sector and supports the large scale industries. Various spare parts, accessories, tools and equipment’s are provided to large scale industries and meet the demands of large industries by establishing units near large scale industries. SSI function as ancillaries to large scale industries.
Fulfils the demands of consumer
SSI manufactures wide range of products demanded by consumers. SSI meets the demands without making shortage of goods and services. SSI function as an anti-inflationary force by providing goods and services.
Ensures Social Advantages
SSI helps in the growth and development of the society by reducing density of income and wealth in few hands. It provides employment opportunities which is the best reason for economic development. Democracy and self-governing is encourage by SSI. SSI also participates in developing the rural and backward sector. It provides employment to both skill and unskilled people which reduces the rate of unemployment in the economy.
P5: The characteristic traits and skills of an Entrepreneur.
Strong leadership quality
An entrepreneur has a strong leadership skills where a leader means a person who is able to leadership subordinates in a single direction for the accomplishment of particular objective. A leader has the best convincing, influencing and motivating power that helps to lead their followers. Similarly an entrepreneur is able to provide the right guidance to his employees so that they can move towards the particular direction which would help them to achieve their vision which ultimately results in completing their goals and objective of a company.
An entrepreneur has the immense level of motivation as they are very intense personality. They have an attitude of enjoying every challenges and has the capacity to face every obstacles, even the failure occurs they never get demotivate and take it as a learning and move forward in the same direction which provides the better result which they expect. Their working cycle is very continuous and tired less which also motivates the other employees to work hard and contribute more for the organisation. They have the ability of adapting efficiently with the changes and one has to cope up with the changes happening around the world(Parker, 2018).
They have the quality of thinking out of the box criteria which enables them to become more creative and innovative which lead them to be different from others and introduces new concept in the market. They are so involved in introducing new concepts and provide improvement to existing processing to make the working structure highly advance. They are the successful people which energetically welcomes every change regarding anything and tries to depend on it so that it can improve their aspects of leadership which results in providing success to their business.
Entrepreneur loves challenges and they have a positive spirit to win every challenges they got in th3 area of their business. They have to keep this spirit as every business runs successfully on the basis of challenges they face from the external as well as internal environment. One has to compete with the competitors to sustain themselves in the market and earn a good recognition among customers.
P6: Aspects of the entrepreneurial personality reflect entrepreneurial motivation and mind-set.
There are various factors which has a contribution in the creation of a successful entrepreneur. It comprises of many aspects such as ability to innovate those ordinary things, taking risk, developing and implementing new business idea and also acquirement of leadership has a nature of being dynamic and other management skills. Understanding these various aspects makes clear that entrepreneur is a person who has the ability to reinvent with the passage of time period so that they can effectively become competitive. There is an immense correlation of personality of an entrepreneur towards the entrepreneurial motivation and also its mindset. It has been said that personality of entrepreneur is formed since his childhood and the environment which is external has a greater influence on his/ her personality. Those individuals who are actually bought up in a surrounding which is very creative and has a freedom have shown the traits of management and also a great leadership. It is important that these people should understand their fellows or employees which would result in contribution to the overall mind-set and apart from this entrepreneurial motivation. These people know the cultural differences and try to overcome it very gracefully so that no individual gets demotivated on such grounds and can work with a great mind-set. Their family upbringing is very lenient as they are provided complete freedom and are provided equal rights to take decision for them and face the consequences and provide the appropriate solution for the problem(Purohit and Kumar, 2018).
P7: Person’s background and past experiences can hinder or foster entrepreneurship.
Every entrepreneur has a different approach when it comes to regarding business or any process that includes decision making. These differences can occur due to personality traits which are mainly acquired with the time and experiences of life. Education as well as the experience of life has been prove as a catalyst which facilitate the process of the formation of individual's personality and the same applies to the entrepreneur also. Factors such as self-motivation, self-management and further coordination is very crucial for every entrepreneur and they are derived from the aspects such ad education and experiences of life and these are the facts that makes every individual capable of facing challenges that comes in a way(Reyad, Badawi and Hamdan, 2018).
For example Mark Zuckerberg who is an entrepreneur and made social media platform known as Facebook has the risk taking abilities which are made from his past experiences, due to which he is able to introduce new features which can be successful or not. As he believes that with each challenge there comes an opportunity and related knowledge which helps him to grow with various aspects and become an improved version every time. He is known to be a great innovator that is why he came with a new concept and introduced a social platform that became a huge hit. He is known to be a good leader who has effectively handled so many employees and operating such huge business across the world with a great ease(Warrier Light,2018).
It has been concluded that the concept regarding entrepreneur is an important aspect as it includes all the qualities which are necessary for becoming a successful entrepreneur and other factors that influence their mind-set.
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- David, K. and et.al., 2018. Embedding Entrepreneurial Skills Development in Teacher Education. InEntrepreneurial Learning City Regions.(pp. 319-340). Springer, Cham.
- Farooq, M.S., 2018. Modelling the significance of social support and entrepreneurial skills for determining entrepreneurial behaviour of individuals: A structural equation modelling approach.World Journal of Entrepreneurship, Management and Sustainable Development.
- Harley, D. and et.al., 2018. Perceptions of Success and Self-Sustainability Among Women Participating in an Entrepreneurial Skills Development and Empowerment Program Through Photovoice.Journal of Ethnic & Cultural Diversity in Social Work. pp.1-19.