Entrepreneurial defines as the innovations and creativity to develop business. Small business enterprises are an independent authority. New or existing small business are supported by SBDC (small business development corporation). Present report is based on small business that carry to make development in further aspects (Burns, 2016). In addition to this, it covers different types of entrepreneurial ventures. Furthermore, roles, characteristic, differences of several entrepreneurs describes. Moreover, it helps to provide small business part to create growth and effective results. At last, there are different entrepreneurs describe who possess innovative characteristics. (Bu
P1 Types of entrepreneurial ventures
There are four types of entrepreneurial ventures like small business entrepreneurship, scalable start up entrepreneurship, large company entrepreneurship and social entrepreneurship.
- Entrepreneurship Of Small Business: In a small business entrepreneurship, they hire local employees or members of family. These types of businesses are barely profitable. Anyone who runs their own business, are entrepreneurs(Burns, 2016.). The main aim of these types of business is to fulfil the needs and requirements of the family and then make a profit, to take over any industry is not aim of these types of business because they don't provide the scale to attract capital of ventures . Related to the typology of small enterprises there are some kinds of benefits like : less time in solve the problems of customer, easy to handle client's concerns and questions immediately, ability to giving services to the customers. In small enterprises, they are able to send experts on a lesser cost. Overheads cost are lesser than other enterprises, it is more flexible because of accepting market conditions immediately(Schaper, And et.al., 2014).
- Entrepreneurship Of Scalable Start-Up: Where small business means risk and return is reasonable, whether scalable start-up means risk and return is unreasonable. The vision of the scalable start up business is to make a large or new market, they willing to make best of time and money(Lofstrom,, Bates, and Parker, 2014). In the order to related with typology of entrepreneurship, there are some benefits like independence to choice all aspects, entering cost is low, high quality of life, independence to ask question and so on.
- Entrepreneurship Of Large Company: There are requirements to create new products and to sold into new customers. In an entrepreneurship of large company there are changes in legislation, new technologies and taste of customers(Amato, And et.al., 2017). There are some benefits in according to related with typology of entrepreneurship like :
- Accessibility to finance
- Expansion and growth
- Higher capacity to take risk
- Talent of attracting customers
- Benefits from many types of advertisement
- Overhead cost will be lesser
- Labour division
- Social Entrepreneurship: These are innovators or entrepreneurs who focus on creating that products or services which can solve the social problems and needs. By using of other entrepreneurs and start up companies, they develop fund and investment to solve the problems of environmental issues. This entrepreneurship is applicable to different type of organization with variety of sizes and beliefs(Burns, 2016). Social entrepreneurship is facilitated by using of social networking sites or social media websites. Social entrepreneurship is not a new idea but in present time it has become a popular among academic research. Social entrepreneurship can be divided into different categories like community based, social responsibility based, society economic based or industry professionals based. These enterprises are the best way to raise capital of an organization by relating with typology of entrepreneurship. It is easy to promote and marketing of their product and service. It is cost effectiveness enterprise. (Burns, 2016)
P2 similarities and differences between different types of entrepreneurship ventures
Differences between private or public sector entrepreneurship ventures :
Structure of organisation
Structure of organization is easy to understand
Structure of public org. is complex with various tasks.
Performance related to return on investment
Performance is based on multiple indicators and targets.
Issues of management
Management includes issues related to shareholders and financial stringency.
Management includes issues related to private sectors
Private enterprises means an enterprise which is controlled and managed by private entrepreneurs.
Public enterprise means an enterprise which is controlled and managed by central government or any local authority
Objectives of private enterprises is to maximize profit, to maximize shareholders wealth and fulfil wants of the customers.
Objectives of public enterprises is to secure welfare of public, to reduce gape distinction of income distribution.
Forms of these enterprises can be sole proprietor, franchise and limited companies.
Forms of these enterprises can be divided into three parts like public corporation, governmental company and departmental undertakings.
Similarities between private or public sector entrepreneurship ventures :
- Common skills and techniques are used to handled both enterprises.
- Both enterprises concerned profit making.
- Private enterprises are influenced by public enterprises and public enterprises are also influenced by private enterprises.
- Lot of rules and regulations are exercising on both of the enterprises.
- Both enterprises adopt creativity and innovativeness to improve themselves.
Differences between micro, small and medium sizes enterprises :
- Micro Enterprises: Micro enterprise means a small sized enterprises like ice cream parlour or cafe. These enterprises are established with small size of capital and minimum numbers of employees(Lofstrom,, Bates, and Parker, 2014). It usually start with less than 10 members. Investment in these types enterprises is up to rupees 10 lakhs.
- Small Enterprises: Small enterprises means a small number of workers and small volume of sales. These types of enterprises are limited in size and it is freedom owned company. Investment in these types of enterprises is more than 10 lakhs rupees but less than 2 crore rupees(Dees, 2017.).
- Medium Enterprises: In this enterprise, there are employees fewer than 250 persons. Investment in medium enterprises is more than rupees 5 crore but less than rupees 10 crore.
Scope of Entrepreneurship:
Small scale enterprises gives good scope to the growth of activities. Entrepreneur has the best opportunity in selling service or a product(Amato, And et.al., 2017.). Entrepreneur can get better outcomes if the organization is in small size. Scope of entrepreneurial activities in small enterprises can be divided into three parts like :
- Service sector
- Industrial sector
- Agriculture sector
In industrial sector, small scale enterprises play an important role to get better outcomes and in reducing the gap distinction between distribution channel(Bruton, And et.al.., 2015.). An entrepreneur can get opportunity in the agriculture sectors like farming. Because of the rapid expansion of service sector, its important has also increased. Service sector provides great opportunities to entrepreneurs in business like in auto repair, welding repair and so on. Rural economy is also the best opportunity for the entrepreneurs to develop and increase their business. The scope of entrepreneurship is vital in India or in abroad(Dees, , 2017).
Characteristics Of Private, Public And Social Enterprises:
- Independence to produce more goods in private enterprise.
- Independence to sell products and goods
- Freedom in deciding price of a product
- Independence to make profit
- There is control of government in public enterprises
- It gives public service
- Monopoly factor in public enterprise
- Public enterprises are generally stable
- Social enterprises concerns about social problems
- Social enterprises are possessed by their innovative ideas.
Roles Of Private Enterprises:
- To develop the infrastructure and maintain services(Dees, 2017)
- To promote existing businesses
- Encourage development of community
- To promote small and micro businesses
- To attract investments
Role Of Public Enterprises:
- Public enterprises are responsible for maximization of welfare (human welfare )
- Public enterprises have to give maximum efforts to achieve social goals
- Public enterprises face the strong criticism by the politicians and public.
The main role of private enterprises is to give support to the economic growth and reduced poverty in region(Bruton, And et.al.., ). Not only private sector, even government has also played a key role in economic growth and to reduced poverty. The private sector generates 60% of the funds and 90% of jobs in developing countries. To support partners governments, it plays a main role in built better environment and culture, to provide goods and services to public. Many of the business and companies wants to partnering with the private sector. For this, companies do public private partnership. There are many benefits in the term of public private partnership. These type of partnership have designed to draw investment of private enterprises into public assets(Dees, 2017.).
In according to the entrepreneurship ventures, it is all about risk and success(Burns, 2016.). Entrepreneurship venture will explore and identify many contexts including start up, small, micro and large enterprises. Entrepreneurship can be explained as innovating and higher value of resources. Many different social aspects can create opportunities for entrepreneurs. Roles, responsibilities and their scopes are also included in entrepreneurship ventures.(Bruton, And et.al.., )
P3 Micro and small businesses impact on the economy
Micro and small businesses (SME) play important role in the economy, small enterprise are related to private sector, and also the source of innovation and diversification. Micro and small businesses are very crucial for successful economic growth. It involves growth, community, organisation, employment and skills (Liedholm, and Mead 2013). Small entities help in increasing employment opportunity in the nation and supports in improve GDP. SMEs help in reduction poverty by providing jobs. It contributes at the time of financial crises' situation when big organization fail to conduct their operations smoothly. SMEs is also providing funding through the financial institution retained profit, the financial market, use of bank and government monetary policy. Retained profit refers to these profit which are use in future for expand more businesses this profit is use only buy new plant, machinery, computer, etc to improve the conditions of the business as well economy.
The term of SME impact on economy development of the nations and exceeds their share,providing 40 percent to 80 percent total manufacturing employment . The over all shares of small businesses firms providing jobs and giving a lots of benefits to the society. Small scale businesses help to improve the living standard of the people and it creates variety if jobs and giving a great output to the economy. Small corporations build-up a relations with large scale enterprise because large businesses are also help increase their productivity and also help expand their businesses. Small scale businesses have always play a vital role in the economy development of the country.
New product manufacture by small scale industries and they produce number of consumer goods and the main motive to fulfil the need of consumers (Mano , and et.al 2012 ). These goods are produced by small scale industries in low rate to complete the need of poorer small scale enterprise also contribute 40 percent to the export of the nations. product such as handicraft, gems, sports goods, jewellery, woolen garments, food items, chemicals these are the good and services include in export business. They contribute both directly and directly export and earn more profit through foreign exchange. Small scale corporations provide more opportunities for entrepreneurs with limited resources and earning more profit.
P4 Importance of small scale business and business starts ups on the growth of social economy
The role played by small scale businesses has significant and great impact on the economy of the country. The total innovation comes in the social economy of the country is about 60-70%. Their are many companies which started their business from small scale businesses and nurtured their businesses into big businesses. SSI participates in the mainstreams economy which contribute to the output. SSI is a first step to elaborate the businesses. Small scale businesses contribute directly to the growth of the economy. SSI are very significant towards eradication of poverty, removing unemployment, rural development and creating regional balance in growth and development (Laukkanen and Tornikoski, 2018). It is estimated that in manufacturing sector, it contributing about 40-45% of gross value of output and to the large sector, small scale industries are contributing about more than five times of employment generation. There are many point which shows the importance of small scale industries which has directly impact on the economy of the countries but it very sad that government is not giving support to encourage the small scale businesses.
The following are the roles played by SSI which proves their importance in economic development:
Small scale industries are generating about more than five time to the large sectors. The techniques use by them is labour intensive, hence it provide employment opportunities to number of people. In rural sectors and in unorganized sectors the employment provided by SSI is adorable. It providing employment to the people engage in the traditional arts, specially Hand-craft works. SSI are not only for skilled workers, unskilled workers also have opportunities in small scale businesses.
Facilitates Female Growths
Small scale industries are providing employment to women who can go outside for work and also to them who cannot go outside for any work (Spence and et.al., 2018). They are leading great position in providing employment to women's. The tailoring works, preparing matchsticks, hand craft work and preparing carry bags, these all are the works which provide in-door employment by small scale industries.
Helps In Mobilization Of 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
Their is phenomenon growth registered by small scale industries in exports over the years. The exports recorded is 393 crores in 1973-74 has increased upto 71,244 crores in 2003-04. Small scale industries contributes about 35% of total exports. It also helps in increasing the country's foreign exchanges.
The contribution of SSI to economy of country globally cannot overplay but medium and large scale business globally make large contribution to the economy. The role in economical development of SSI to the economy (Durst and Roth, 2018). The capital structure of small business is less in compare to large scale businesses. SSI cannot build its own investment in infrastructure but large scale can manage all. The investment in SSI is limited to 25lakh and MSSI is upto 1Crore and LSI is upto 5Crore.
P5 Factors which makes a successful Entrepreneur
When in the hope of profit and to get success, a person set up a business and take a financial risk. To take benefits of opportunities, taking initiatives by organising a venture, and be a decision maker that what,how, when and where to do and what, how and how much to produce is a Entrepreneur (The Success Factors of an Entrepreneur, 2009). An entrepreneur has a high risk factor, controller and decision maker of a business. Entrepreneur is mainly Sole proprietor, partner and a person who has majority of shares in an incorporated sectors. A successful entrepreneur is one who proves him best by taking risk and using the opportunities and take the decision. Peter Jones, Simon Cowell and Duncan Bannatyne are the famous entrepreneur of United kingdom.
The most crucial elements and the factors that can make a successful Entrepreneur:
Willingness To Take Action: If a person who afraid to take a real action cannot be a successful entrepreneur, person should have power to take a immediate action. Action is something which led entrepreneur to Success. To be a successful entrepreneur, one should have capabilities to take action.
Patience: To be a successful entrepreneur, person should have quality of patience. When the business is start it takes around six months or an year or more to remain in the market and earn profit. Person should have patience when business is running in loss, entrepreneur journey is not an easy journey.
Entrepreneurial Intelligence: To be a successful entrepreneur, he must have entrepreneurial intelligence by making all the possible arrangements and taking toughest decision when needed. For bringing uniqueness in the business the entrepreneurial intelligence is very much important.
Ability of Team Work: To become successful entrepreneur, the ability to work in team and with the team is very necessary in the business (Hornsby and et.al., 2018). A single person cannot do everything and doesn't posses all the qualities, because there is no Superman in real life, every business needs a team of member to attain the target of the business.
Risk Taking: Entrepreneur is one who take a risk of starting a business. A successful entrepreneur has ability to calculate the risk factor promptly. To get success in the business entrepreneur should use Risk Management Principles which lead to success.
Self Confidence: To become a successfully entrepreneur, person should have capabilities of self confidence, as it is key to success. Entrepreneur should feel confidence on the decision which he takes, he should not loose his confidence in any manner.
Entrepreneur have many characteristics like entrepreneur have passion and motivated person and he does not afraid to take any risk in the business, he have patience, self belief, hard work and many other characteristics (Kuratko and Morris, 2018). But these all characteristics is not present in all the entrepreneur, as many entrepreneur does not take risk and close the business and does not have patience to run the business in loss.
P6 Personality of entrepreneur reflect on entrepreneurial motivations and mindset
Entrepreneur are all different personality and they have different mindset they contribute to their efforts in the businesses. The personality of businessperson have a great contributions his successful in their business. If entrepreneur has good quality and commanding personality, it reflect his skills, motivation and mindset. Today business is very complex every one cannot manage so the organisation needs to skilled persons to understand the complications and solving the problems of the businesses. A business man must be hand working habitual to concentrate on work for long time if entrepreneur are not hard working they cannot influences to their employees in this situation they are only suffer losses in their businesses. For example Mark Zuckerberg he is a great entrepreneur, like every other businessman he is also innovative and successful person.
When he stared working on his Facebook he giving full time his businesses and motivated his employees. According to his personality he is very intelligent, great team leader, build the right relations with the people, inspiring person. He proved to be a good foe company because he know the value, commitments and trust of the businesses. His main motive to faith his work and he motivating other team member for achieving the goal of the company. Mark Zuckerberg is very aggressive regarding his work but he is encouraging leader also. He is independently thinker and innovative person. Marks is always open mined giving suggestion his employees for increasing their work efficiency. He encourages his people to attempt his work do better. So every entrepreneur should try to develop their knowledge, skill creating a healthy environment in organisation. Entrepreneur personality effects his personal relationships and they easily find out the actual problems of the business and solve easily. Every successful businessman aim to increase their work efficiency and generating more profitability.
For example Sundar pichai is also the successful business man he is very intellectual and his personality reflect his motivation and mindset. This person is very hard worker and m
he take corrective actions and always motivate his employees. He is great leader at this time people use his google applications , softer also. Google is the relevant source of information all most people in this world using this app it is very useful gathering the informations. So Sundar focus on his work in very effective manner. So every entrepreneur should work hard like him and aim to achieve a success his work. Different culture is also effect on the entrepreneur personality as well as corporations also. Marks and Sunder pichai both are good leader and his lifestyle also effect on their businesses. Both of the Personal motivations also influences with other and they know how to maintain relationship with their employee as well customer. They are proactive personality and their target to not only earning they create their business good image in the world.
P7 How background and past experience can effect on foster entrepreneurship
Entrepreneur establish business and create a job they identity the problems of the businesses. So background and past experience help to finding a actual hurdles of the company. Through these aspect remove the problems of businesses and share a past experience with employee it help to improving the quality of work. Marks zuckerberg background and past experience he is very innovative person but when he was start his businesses he face many hurdles in their life. His family background was not good his financially conditions is not well so he face that problem but he never stop Marks concrete on his work. So his background effect on his businesses he faces hurdle in business like lack of finance, resources are limited. But his work experience are reflected his work. He is motivated person and his past experience is also effected his company. Entrepreneur focus on there business how to manage itself finding a creativity ways to assessing the finances. When Business man start his own business he need to maximum cash and support his family background.
Entrepreneurship has been face many hurdle and challenges in businesses the aim of company encouraging their employees. Richard Branson is also great business man his motive to improve your self and avoid negative things and do work hard. Background and past experience play a very important role in entrepreneur life. Both are hard worker and achieving the goal of the organisation. Every successful entrepreneur need to improve their skills, knowledge, motivating to others. Background and past experience is also increasing their ability to do work so is is very necessary for achieve the goal of the businesses. Entrepreneur are important for the economic they create lot of opportunities and growth of the individuals as wells employees. Entrepreneurship and economic development make new policies of the business, develop institute, and change his background as well personality also.
Entrepreneur are help to develop their business and expand their work in efficient manner (Marcucci , 2014 ). Entrepreneurship is the process of actions of business man who is a person always take a risk for high return and always searching a new and share their ideas also. They main motive to giving opportunities of the employees and increasing the productivity of the business. Their back ground and past experience is also help them for achieving the goal of the enterprise.
Entrepreneur should innovative and good decision maker like Marks zuckerberg and Sunder pichai both are famous and great leader (Kithae, and et.al2012 ). Both are motivated and they always concrete on their work and giving a lot of opportunities to other people. They build a relationship with people and risk taker.
Background and experiences are always influences entrepreneurs, both positively and negatively like Richard Branson is the real example of the successful business he was very positive thinker and he avoid negative point (Ghanem, 2013) . He is focused only positive point and work hard. His back ground also effect Richard also face many hurdles in his life but he was very motivated entrepreneur.
Entrepreneurial is very importance for growth of businesses they create innovations and creativity of the enterprises. The impact on the small businesses in economic grow very rapidly and providing various opportunities of the employees. According to this concept it is clearly defined the important of entrepreneur and role of the entrepreneurship. Both of the aspect are very important for the growth of the company. The main motive to every entrepreneur to increasing their profitability to the business and expand their resources. They also provide jobs, development in the economic. Entrepreneur play a very essential role in the businesses they main focus how to take right decision for long run business.
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