Entrepreneurship refers to the planning, organizing, directing, and controlling of the business activities of one's own business. For economic and social growth, entrepreneurship can be one of the fundamental components. It facilitates national development along with regional and local development too. Entrepreneurship is dynamic and a complex activity. Along with this, different entrepreneurial skills are found in different individuals (Ács, Autio, and Szerb, 2014). These skills are an overall outcome of the knowledge and experience they acquire in their lives. The following assignment is based on various aspects of entrepreneurship with a focus on different types of entrepreneurial ventures and their similarities and differences. It also includes the impact of small businesses on the economy of the country. In addition to this, the emphasis has been given to the contribution of small and medium-sized enterprises in the growth of the social economy after Brexit. Lastly, the characteristics, traits and skills of two successful entrepreneurs are briefly discussed.
P1. Different types of entrepreneurial ventures and their relationship with the typology of entrepreneurship
Entrepreneurship is a skillful approach to organise, manage, control, and lead individuals within a firm towards organisational objectives. It is necessary for the development of the organisation. It expands organizations function by producing and enacting materials in an innovative way and by proper utilization of techniques used in the production of these materials.
Different types of entrepreneurial ventures are described below:
- Scalable Business Start-ups: Focus of these businesses is completely towards the creative points of the business. The persisting model is dynamically changed by these ventures. They target employing efficient personnel in their workforce to achieve this objective. They rely on venture capital funds and financial investments for their expansion (Blackburn, Hart, and Wainwright, 2013).
- Small Businesses: These are the businesses that are mostly independently owned and are very limited in size, for instance, cafes, auto-mobile retailers, etc. The revenue generated from these businesses is also limited. Currently, UK is experiencing a boost in these businesses. These businesses are also helping the country in increasing its overall employment level.
- Large Corporations: These are those businesses that operate on a large scale. They tend to generate immense revenue for their stakeholders to acquire and the number of people associated with these companies are also huge. They aim towards sustainability as well as growth by employing new products and services, along with the business of existing services and commodities (Bosma and et. al., 2012). This is the reason for them having a specific life cycle. The competition level in these businesses is very high. It is required of them to continuously formulate their strategy along with modifications in their products and services according to market needs.
- Social Entrepreneurship: This type of entrepreneurship aim towards the development of services and products for societal progress and the betterment of people. The main agenda is to provide social services by implementing the firm's products and services towards the betterment of the population as well as to increase the effectiveness of the society.
Typologies of entrepreneurship ventures:
Typology can be described as the classification of a group or a class, having characteristics in common, on the basis of general type, structure, form, style, plan, etc. The four types of typologies found in entrepreneurship are mentioned below:
- Survival Ventures: These ventures are limited to providing basic subsistence to entrepreneurs and their families. They are usually not formally registered and don't operate on any premises (Bridge and O'Neill, 2012). These ventures have no banking relationships and just operate with few basic assets. Reinvestment in these ventures is usually not a suitable option as they exist to satisfy the basic financial needs of its owners. Micro-businesses are covered in this type of topology.
- Lifestyle Ventures: These type of ventures provide a stable income for their entrepreneurs. These ventures adopt a maintenance approach and a workable business model. These ventures are subjected to competition in local markets. These ventures usually have few employees and operate in single premises. Businesses in lifestyle ventures do not aim at growth or expansions. Number of employees in these ventures remain comparatively constant. All kinds of small businesses are covered in this segment.
- Managed Growth Ventures: Over time, these ventures aim at stable business growth and consist of a workable business model (Carsrud and Brännback, 2011). These ventures aim at steadily expanding their facilities, innovative product launches, entry in new markets, shifting their locations, employing new staff, etc. Reinvestments in the ventures are ongoing. All the medium-sized enterprises are included in this typology.
- Aggressive Growth ventures: These ventures are technology-based in nature and possess strong innovative potential. These businesses seek exponential growth overtime and rely on equity capital for their funds. Such ventures operate nationally as well as internationally with aim to enter new markets over time. This topology covers all the large businesses and enterprises.
P2. Similarities and differences between entrepreneurial ventures
There are certain elements which makes one another different or similar while performing any kind of activities or task. So, to understand the concept in a better manner both similarities and differences are explained below:
Types of Enterprise
Small v/s large business enterprise
·Large and small both the enterprise works for their own benefits and for this they try to give better services and facilities according to the needs and wants of customers. As a result, it assist firm in improving its sales and profitability in a given time frame.
·Financial condition is the biggest factor that makes small business different from large enterprise because latter one comparatively has huge amount of money for operating its business or executing the plan in an effective manner (Luiz, 2011).
·Whereas in relation with small business because they perform their activities within local areas and earn just to fulfil the needs of its own family members.
Social v/s Scalable Enterprise
·Scalable and social ventures generally work with the motive of providing better services to people who are living in the society.
·For this, they develop new ideas which can be beneficial for people in order to make their lives easier.
·Entrepreneurs who are working in this field have the tendency of taking risks so as to get better outcomes and results in return. In order to do the same new and latest technologies are being adopted.
·Social is all about to deal with society so that lives of people can be enhanced. This will help them in improving their standards.
·Whereas in relation with scalable entrepreneurial ventures works with the motive of changing the world for a better living and in order to do the same they implement new and innovative ideas and thoughts (Lee-Ross, and Lashley, 2010).
Lifestyle and survival entrepreneurial venture
·Both lifestyle and survival ventures work with the purpose of earning more money for survival and establishing a good image in front of people.
·Lifestyle entrepreneurial ventures basically to do with following passion and work which an individual loves to do. For example: a travel bloggers who travel to different places just to follow his/her passion.
Entrepreneurship in public sector: Entrepreneurship in public sector is an innovative initiative which results in generation of great economic prosperity. So it is essential for government, to support self employed entrepreneurs in order to effectively develop their networks and provide them ways of action to promote collaboration in order to encourage sustainable development. Entrepreneur in public sector mainly perform their act within government consideration.
The Development and growth of entrepreneurial ventures.
Entrepreneurial ventures contribute various development and growth factors which cannot be ignored. Some of these factors include providing various employment opportunities which aids in uplifting communities by enhancing their quality of life and overall living standards. Entrepreneurial ventures also leads towards expanding commerce and regional economic integration which strengthens economy and promotes welfare. Entrepreneur is mainly defined as ability to change innovative ideas into products and services through which new technologies promote efficiently. Entrepreneurial ventures innovates formative business practices and innovation which impacts on socio economic objectives and practices.
P3. Interpret relevant data and statistics in your mini-research, to illustrate how micro and small businesses impact on the economy
Micro and small business organisations are the backbone of a country’s economy. These enterprises drive economic development of country by delivering goods and services and creating job opportunities (Chittithaworn and et. al., 2011).Over the years, quantum of micro and small business entities has gradually increased. Some of the major impacts that these businesses have on the economy of a country are explained below:-
Job Creation:It is important to realize that micro and small businesses play a major role in providing both employment opportunities. These organisations are more likely to employ potentially less skilled and knowledgeable workers and individuals which have no or negligent work experience. This type of employee hiring practice has two fold benefits. At first, it results in creating job opportunities for incompetent people who would otherwise have had difficulty in securing jobs. Second merit is the increase in productivity of these individuals by giving them induction and training.
High worker productivity: Micro and small enterprises have typically less-diffused ownership and owners are themselves involved in management. This means that their organisational structure is simpler than that of large enterprises. Thus, leaders or managers can establish direct networking with personnel to take feedbacks from employee in terms of issues faced by them while conducting operations (Choi and Majumdar, 2014). Also this helps the leaders in ascertaining the performance of individuals closely and work towards improvement in their productivity levels. Improvement in individual productivity of workforce will lead to overall productivity raise of organisation.
Contribution to innovation: Innovative ideas are more likely to develop in small and micro businesses when compared to large business enterprises. They bring innovation and development in their products and services to increase their stake in market and also to build a brand position. Along with that, in context of service industry, there are constant fluctuations in demand levels of customers which create opportunities for these enterprises.
Product Competiveness: Micro and small business entities are the major players of creation of competition among businesses in terms of their products or services (Chrisman and et. al., 2012). These enterprises promote product competiveness through their low cost products due to less overhead cost, and their cost effective solutions to problems. Their products and services require less time for procurement or manufacturing due to simpler organisational structure and methods or processes of conducting operations.
Inflation:Micro and small firms have greater flexibility than large enterprises in terms of adjustment of their levels of production. Thus, they are able to adapt to short term fluctuations in demands of customers. These enterprises provide greater flexibility to businesses within the industry to tackle with the challenges arising due to inflation. Such firms can engage themselves in industry cooperatives which is a process of pooling resources and funds with an existing business within the same industry to do savings.
Development into larger enterprises: Small and micro business enterprises do not always stay small. With evolution of time, improvement in technology of their operations and rapid innovation in the products and services offered by them to the community, they grow in terms of scale of operations and number of employees (Decker and et. al., 2014). Consistent growth in terms of size of these small and micro level enterprises aid them in expanding their operations to a larger level and evolve into a large scale business organisation. These large scale enterprises that initially started their business as small enterprise recognise the need for promotion and development of more such small and micro level business enterprise. Also these conduct operations in a way that encourage the evolution of more of new small and micro enterprises.
P4. Explain how important small businesses and business start –ups will contribute to the growth of the social economy after ‘Brexit’
The word “Brexit” comes from the term British exit which refers to the dissociation of United Kingdom from European Union. The voting took place in June 2016 where a majority of 52% people voted in favour of referendum stating that Britain should leave European Union. While England and Wales voted to leave, Northern Island and Scotland wanted to stay a part of European Union. In March, 2017 the UK government invoked the Article 50 of treaty on European Union. Thus still the negotiation process is going on and only after 2019 can the exit of Britain from European Union be called definite unless an extension is agreed upon by UK and EU. The result of voting process had a great impact on the economy of country (Dennis Jr, 2011). Increase in inflation and collapse of currency were some of the impacts. The agreement that will be made between Britain and EU is not definite yet many speculations have been made in this context like decline in foreign trade.
The idea of small businesses and start-ups can largely help the economy in overcoming the crisis by reducing employment levels. Small businesses contribute towards the development of economy by bringing growth and innovation in the products and services they offer to the community in market. Small businesses and start ups also aid in stimulation of economic growth of country by providing employment opportunities to people who may otherwise not be hired in larger corporations. These enterprises aim at hiring those individuals and talented people who perceive the importance of development in existing products or implementing innovation in new products and services (Drucker, 2014). Large business corporations also emphasize upon development of small businesses and start ups within the same local community as many large scale enterprises depend upon small businesses for the completion of various business functions of their operations through the process of outsourcing. Thus, government of such nation also promote the growth of small businesses and start-ups.
Medium and large business and their impact on economy
Organisations which employees less than 250 workers are considered as medium sized business. Whereas, company having more than 500 employees are known as large business. Both of these medium and large business organisations play key essential and different roles in economy. Medium sized enterprises are mainly independent firms which generally employ less number of employees. Firms in medium sized sectors having not more than turnover of 50 million euro are also included in this sector. Revenue earn by firms are used in equipments, buildings and bridging gap in their organisations, In large business organisations formal structure and process is followed and they have wide source of funding and diverse market. Outcome of medium and large business results in contributing in national GDP in effective way. Wages and salaries provided to employees and indirect taxes will aid government to increase their revenue. Medium and large business helps country to increase their overall production level and effectively results in country import and export base. Another way of contribution of these business sector in economy is by the way of various other operating surplus and tax return.
P5. Characteristics, traits and skills of two successful entrepreneurs
It is essential for every business owner to keep enhancing their capabilities and furnish their skills overtime for their businesses to sustain in an uncertain environment with tough competition (Fassin, Van Rossem and Buelens, 2011). There are two successful employees whose characteristics, traits and skills distinguishes them from the average entrepreneurs. These elements of their personalities are mentioned below:
Characteristic of Richard Branson
- Innovative Thinking: Richard Branson is known to be innovative. All the outstanding strategies of Virgin Group are the result of this thinking of its entrepreneur. With being an innovative thinker himself, he promotes this trait in its employees to and encourage them to bring innovative ideas that could contribute to the success of the firm.
- Decision Making: The success of Virgin Group is the outcome of the effective and strong decision making power of Richard Branson. At times when strong leadership is required, Richard Branson aims at taking decisions best for the firm.
Skills of Richard Branson
- Leadership: Richard Branson adopts collaborative and democratic leadership styles which helps to motivate his employees and facilitates a healthy working environment. His leadership strategies are acknowledged and respected all around the world (Fisher, 2012).
- Attention to detail: According to Richard Branson, it is necessary to get the little things right in order to make the whole plan successful. A close attention to tiny details from the very beginning of any business activity can be a strong success factor for achieving business purposes. He promotes this culture in his organisation and motivates his employees to work with precision.
Characteristics of Peter Jones
- Passionate: While working for passion it is important that the person maintains the same zeal throughout the life as it will assist him//her in giving best from business. In relation with Peter Jones, he is a passionate person because even after failures he kept on trying new things just to follow his passion of becoming a television presenter. Thus, working with passion will definitely motivate the person in achieving and doing things even better in life.
- Optimistic: Winning or losing is a part and parcel of business thus; changing negativity in positive is an important thing which matters a lot. Even after having his own business of manufacturing computer Peter Jones found a job of commercialising products online. Although this was a small job but because he was optimistic hence, this helped him out to become one of leading entrepreneur in United Kingdom (George and Bock, 2011).
Skills of Peter Jones
- Confident:Every person who is working in any field must possess this quality i.e. confidence as it will encourage an individual in adopting things or performing any activity differently. This is the quality which made Peter Jones a very confident person as a television presenter because job of television presenter is not easy as they have to face many cameras at a single point of time.
- Time Management: This quality is very helpful in accomplishing the entire task in time frame and as a television presenter there might be a possibility that Peter Jones has to manage two activities. So, this skill is assisting him in finishing the entire task in a given time frame without any much complexity (Gorgievski, Ascalon and Stephan, 2011).
P6. Aspects entrepreneurial personality
Every individual has traits which are different from one another and these are the skills that assist a person in pushing their limits so that targets or set objectives can be achieved. Possessed skills and knowledge helps a person in shaping its personality which can further assist him/her in attaining its goals in a limited time frame (Islam and et. al., 2011). According to above two entrepreneurs some of the personality which reflects entrepreneurial motivation and mindsets are explained below for better understanding:
Extraversion: In order to accomplish the task a person should be passionate and must have a positive sight of seeing things as a result, it will assist him/her in becoming optimistic in every outcome whether positive or negative. In addition to this, it will assist the individual in encouraging its fellow members and subordinates. In terms of their mind set these people are different and always look out for chances of trying different activities in a better manner.
Agreeableness: Every person whether running a business or not he/she should have a nature of agreeableness and along with they must have a tendency of convincing other person with their thoughts and ideas. For this, influencing power should be very good and in relation to this, entrepreneurs must use effective communication skills so that they can be able to deliver what they wanted to get from others.
Conscientiousness: In order to run a business it is crucial that a person has a presence of mind because it will aid him/her in implementing new and innovative ideas (Kirzner, 2015). According to the current market scenario, where world is changing in a rapid speed an individual have perseverance of accepting changes and modifications as it will assist in operating business in a better way without any complications.
With help of above mentioned skills can able to shape their personality and traits in more effective way and accomplish their goals and objectives in formative time frame. Agreeableness benefits person to convince other individuals and influence them towards their targets. Whereas, conscientiousness will aid an individual in implementing and adopting new and innovative ideas in order to accept change and modify self to operate business in more efficient way.
P7. Different ways by which background and experience can hamper the performance of entrepreneurship
In terms of performance, skills and knowledge background & past experience always plays an important role because it sets the base for an individual and determines how the future will be. For shaping personality traits both external and internal factors are essential thus, a person should try to build and incorporate all the skills since childhood and it all starts from education which is being received (Kiss, Danis and Cavusgil, 2012). Therefore, it can be said that the performance of an entrepreneurship can depends upon what kind of education he/she has attained. Henceforth, teachings, given in school, college or knowledge gained by family are important because they are the primary source who helps an individual in developing personality attributes and these further makes them eligible in attaining goals and objectives in a limited time frame. There are some factors that affect background and experiences influences entrepreneurs negatively like, financial factor in this case and entrepreneur can face numerous difficulties while raising its start-up if they are having less capital. They need to seek financial support from others. In addition to this, if an entrepreneur was not boost up effectively and are not much experienced or they did not have a proper mentor then it is a little hard for them to balance and manage their business in sound manner. There is one of the major factor that negatively affects entrepreneurship that is gender stereotypes in this being a woman there is various set of assumption has been made by a community that is man are more better in business than women, it negatively affects women entrepreneur to make their own long-lingering perceptions.
In addition to this, peer groups or people with whom the person lives also put a great impact on an individual’s mind. This is the stage where a person tries to build trust and an entrepreneur should develop this quality because they tend to meet new people who are important for giving some directions to a business run by an entrepreneur (Kuratko, 2016). This develops a sense of mutual understanding and faith element amongst one another. Henceforth, making a connection with a lot many people will foster the business of the entrepreneur
Therefore, in the life of an entrepreneur or any other background and past experience plays a crucial role because it always provides better knowledge and information which he/she can apply in future activities. From past experience, a person can know about the flaws which can be avoided in future proceedings. Henceforth, all these assist an individual in enhancing its skills and knowledge for performing activities in an effective manner.
From the above, it has been concluded that there are various kinds of entrepreneurs and all of them are different from one another. All these entrepreneurial ventures are different from one another and perform their activities according to the needs for instance: large enterprises work with the motive of gaining benefits but social enterprise provides services with the motive of making other lives better and easier. Moreover, to run these businesses it is important that a person has skills and knowledge. Along with this, they should have certain qualities like confidence, decision making, etc., this will aid them in achieving their targets in a limited time frame. All these qualities not only influence other individuals but also encourages them to opting something new which is different and unique. Other than this, background and past experience also play a crucial role as it assists an entrepreneur in shaping its business or ideas so that better outcomes can be gained. If you need any type of help to achieve your goals then assignment help experts are available.
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