To grow a business in right direction, manger of the company needs to be recognize, predict the changes in both internal and external environment. The present research report is based on Small entrepreneurship management. Small business are privately owed corporations or sole proprietorship, that kind of business does not generate high sales of volume because few number of employees are working there. All enterprises makes some degree of contribution in the country economy. Every enterprise have different attributes and characteristics but all are working towards a common goal that is customer oriented product or services. This report describe the importance of small business venture for the country economy. Small businesses are much flexible compare to large organization because they can easy to adopt environmental changes and maintain sustainable image in the market place. All enterprises have some similarities and differences due to the different characteristics, traits and skill of entrepreneur. Background and experience of an entrepreneur also affects the business activities and growth of the
P1 Examining various entrepreneurial ventures and their typology
Small enterprises are different and unique to each other. The most common characteristic of any enterprise is to do work with freedom without any interference.
Small business entrepreneurship- That type of business enterprise are small in size, few no of employees along with less sales revenue. Small business can be of any type like grocery store, consultants, travel agent, carpenter etc. They are hardly profitable. They hire local employees and family person. Business fund can be arrange by the family and friends or any kind of small business loan.
Scalable startup entrepreneurship- They are not like a small business it is a startup of business venture. These type of entrepreneurs start a company with the vision to change the world. They hire best and brilliant employees for the innovation. That type of ventures attracts the investors to invest their money like venture capitalist and other financial investors which helps in to rapid expansion of business. They are exist in the world in small percentages because of their outsize return.
Large entrepreneurship- Large size of organization have finite life cycle after that product innovation and use of updated technology helps in to maintain sustainable competitive image in the market place. Changes in the customer taste, new technology and entering of new competitors creates the pressure for disruption innovation that companies serve their new product to new customers in to new market. Large companies sometimes acquire innovative company for building disruptive product which provides competitive advantages to capture wider market region.
Social entrepreneurship- They are the innovators for creating products and services which solves social needs and problems. Scalable start up company major goal is to make better world rather than to capture wider market share and create wealth of company. They may be a kind of non profit, for profit or hybrid.
Research entrepreneur- It is a type of entrepreneurs examining the every possible scenario and its outcome in order to evaluate the success of an organization. It helps in to start and expansion of any business enterprise because they efficiently detect the existing external environmental factors makes an greater impact on the organizational activities. It also provides an idea about the business how to proceed it and what key elements are necessary to adopt and gain competitive advantage.
Typology is the categorization of several entrepreneurial characteristices and their attributes which provide diversification in market. Typologies helps in to examining whole activities and their effective outcomes in order to gaain competitive advantage. Small and large organization capital requirement is varies according to the size. All enterprises have same motive to generate profit and become cost leadership of the product in market place.
P2 Similarities and differences between different entrepreneurial venture
Every enterprise have different characteristics and their norms and policies so that some similarities may be posiible there if thery serve same kind of services.
Goal- Every business organization main motive is to achieve financial and business goal which helps into maintain interest of company shareholders towards high profitability and growth of the business. On the other hand social entrepreneur believes into sustainable profit with social welfare of society.
Mind set- Mind set of various organization are different. Some of business enterprise pursuit towards to earn profit and some of pursuit towrds passion of work. Social organization main motive is to solve problems and create welfare in this market. That type of organization are non profit organization, they serve their product in a mnner to fullfill the customer needs.
Value creation- All the business venture creates and deliver value to a customer by providing competitive pricing and better product and services (Huggins, and Weir,2012). Societal type of organization main focuses on to create social values and deliver to their target communities. It serves both the value economic and social well fare.
Communication- Every business organization spent huge amount of money on the marketing of product and services . Various marketing strategy are to be used such as TV, print media and social media marketing tools for the purpose of conveying message and information regarding to the product and services. Social enterprises marketing philosophy is is to promote their product and services by organic sopcial media tactics and throgh word of mouth. All enterprises main motive is to cover large masses people and serve their product and services.
Similar characteristics of different business venture. They are profit oriented that can be achieve when the revenue is exceed over expenses and they are highly dedicated towards their set mission and set strategies according to the mission. They also proceed towards common sharing of goals like to solve market problems and provide solutions in order to improve the living standard of society along with the major contribution in the country economy. Value perception of all business holder is same they keep to maintain interest of shareholders by creating wealth and generating high profit margin. All type of entrepreneur are opportunistic and high risk taker. They are also innovative thinkers to bulid the unique product and serve to the market region. All entrepreneurs have an ability to think outside the box to solve their problems.
P3 Role of small and micro busnesses to the economy
After the collection of data it to be analyzed for the purpose of discremination of data which one is suitable or not for the purpose of ongoing research study. Data analysis and its interpretation is a statistical tool for research purpose. It cannot begun till the data have been collected and condensed into number. Small and micro businesses are the engine of job creation in the world (Mariotti, Glackin, 2015). They plays an important role in the country economy. According to the business standards 25 million small business entrepreneur are exist in UK. Small businesses does not generate large revenue compare to large business organization but they are the major contributor in the country economy. Micro businesses generate larger employment opportunity. Small businesses have an ability to adopt and respond quickly to changes in the economic climate. This kind of organization are generally customer oriented. Small businesses are very loyal in tough situation because they can afloat their operations in critical situation. Large business organization also dependent on the small business organization because they outsource their business function to small organization. Today's large corporations such as Ben and Nike started as small business but it grew with the time and become a major player in national and international market. Microsoft is a prime example how a small business idea can change the world.
Data analysis process have various steps which one is efficiently followed for the purpose of making effictive conclusion. Data analysis and interpretation is the process which assigns the meaning for the collected information. Small business ventures creates the high degree of employement and provides strengthen to the economy.
P4 Importance of small and start up of business in growth of social economy
Social economy is the third sector of economy ammong the various economies. It includes organizations such as cooperatives, non profit, and social enterprisees or charities. It maintains the relationship between the economy and social behavior of country. Social economy satified the needs and their expectations which one is ignored by the public or private sector firm. It plays a unique role in creating a strong, sustainable and prosperous society. Micro businesses plays a vital role to the success of the economy. It also influence the consumer behavior by moral, ethics and human philosophies. Small businesses are placed for building and maintaining personal relationship with customers, employees and their suppliers. They are more flexible and easily adopt various changes and accept the challenges due to the little hierarchy and chain of command. Small and start up business can take quick decision due the the changes in circumstances. Well estabilshed small businesses are in condition to introduce and develop new ideas and provide wide range of product and services that are environmentally friedly. Small businessess are able to make profit on much lower sales volume because they have larger switching capacity from one mode operation to other.
Start up company main focus on to sustainable position in market place rather than to make high profit. Start up company have an ability to introduce and develop create idea in order to fulfillment of market expectations. Many non givernmental organization working for the umployed person and develop the plan for grooming the personality of an individual person that makes a major contribution in economy. Societal growth is the key element for the well fare of country. It gives opportunity for self development as well as the enlargement in economy condition. All the business ventures are profit and growth oriented they also contribute some part of their money in well fare of society. Small and start up business generates more employment opportunities which creates awareness about the standard of living and they made economically more soundful. Start up business develop the unimaginary idea and working on it and provides services for the easyiest of life.
P5 Characteristics, traits and skill of successful entrepreneurship
Successful entrepreneurs are enthusiastic, optimistic and future oriented. They are willing to take high risk and pursuing towards extreme profitability.
Characteristics of a successful entrepreneurs
They have an ability to make strategic planning, money management and customer rention power. Successful entrepreneurs are passionate and self motivated towards their work. They can do work over and over again without getting bored and error they maintain their work efficiency. They have an ability to take risk about future uncertainity because its outcome may be favorable or unfavorable. Business owners are more confident and dedicated towards their work and very much competent towards the deadline of work. They are more flexible and have ability to adopt all kind of environmental changes and to develop the solution of a critical situation. Entrepreneurs take advice and accept suggestions for optimization or customization of product and services which helps in the enhancement of cusotomers satisfaction level. Money management is the core characteristics of an entrepreneurs to plan for present and future financial obligations. Effective allocation of fund and process management is the big tool for the success of an organization. Effective planning and sound implementation of activities generates better outcome. Successful entrepreneurs belives in to spread wide network towards approaching the mass group of people.
Traits of a successful entrepreneurs
Traits of an entrepreneurs are depends on their geographic location, income level and their social status so that their attitude and characteristics are varied from entrepreneur to entrepreneur. Business owner have an ability to find out their target market, along with effective evaluation of previous mistakes in order to achive future growth. One of the most key element is passion and dedication towards their product and services. Tolerance of ambiguity describes the control over the fear which one is arise from uncertainty about future outcome.
Skills of an entrepreneurship
Skills for doing a work is the key element for the succeess of any organization. Communication skill of a successful entrepreneurs always be strong. Entrepreneurs have effective handling capacity and use of different communication techniques like email, phone and videoconferencing (Scarborough, Jeffrey ,Cornwall, 2015). Entrepreneurs have an ability to make effective startegic planning for continuous ongoing process for better outcomes. They have an ability to raise money, to identify their strenghts and weaknesses and effectively manage the staff. Entrepreneurs also have ability to connect via social networking. Business owners doesnt get success every time sometimes they also faces failure situation that time they have an ability to handle the situation effectively and try to overcome the failure issues.
P6 Reflection of entrepreneurial motivation and mind set
Entrepreneurs characteristics and their skill set is vary among the set of entrepreneurs. Creative idea and imagination power of business owner makes the sound image in front of market. They are self motivated and confident for doing a work within the deadline of work. They have an ability to see future before it happens. They are mostly inspired by those things which are never be seen before yet it discovered. Competency level of a successful entrepreneurs is very high it is a necessary tool for maintaining the sustainable competitive advantage. Flexibility in today's scenerio is very complicated task because adopting ability of changes is not an easy for every person. Passion and motivation characteristics are reflects by the way of delivering the services which is sum of their dedication and competencis towards their work. Moral values and ethics are to be followed by the business owner for smooth functioning of business activities. Mind set is the perception of an entrepreneur towards any object. Changes in the environmental scenerio reflects the mind set an every individual personality. Expansion of business and development in the existing product line shows the high risk taking ability. Management of staff and their retention power sustainability to be manage by creating and offering the attractive schemes which one provide direct and indirect benefits to employees (Modarres, 20160. Certain characteristics and traits of an entrepreneur degrades the growth of an enterprise which also influence the the motivation and mind set of an owner. Positive characteristics helps in to self development and as well as growth of an organization. Negative characteristics and traits generate inflexibility to adopt certain environmental changes it leads the failure to fulfill the needs. Encouragement and motivation is key element for the success of an organization and helps in to maintain relationship with their competitors.
P7 Examining the background and experience which hinder or foster entrepreneurship
Background and past experience of an entrepreneur also plays an important role in the success of an organization. Background basically relates to their demographic region, education level and their cultural society. All these factors are varied among the group of entrepreneuurs. Past experience may be good and bad that affects the business productivityand growth. Every individual entrepreneur have different characteristics, intellectual skill and thinking power. Good experience promotes the business activity and encourage towards the new development of product and services. Both the things inspires to take risk about the uncertain future outcome. Lower background of an entrepreneur sometime resist to adopt environmental changes along with the acceptancy of challenges. Understanding level of technology gives positive outcomes like save of money and time along with the accuracy of work. Back ground and their experience promotes for doing reasearch and create new innovation in the product and services helps in to maintain sustainable position in market place. Positive experience inspires the entrepreneur to expand their existing product line in order to capture wider market region and generate high revenue which one is also helpful in the further expansion of product line.
Every organization spend some amount of money in research and development it will be effective when they have great past experience. Negative past experience demotivates the owners to take high risk and alternative course of action which makes an negative impact on the growth of a company. Regular updation with technology provides competitive advantage. Flexibility level of an entrepreneur directly depends on the past experience and their background, because acceptancy define the degree of flexibility level. Decision making ability also affect by these elements. Effective decision making capacity to capture the external opportunities from the market palce and have an ability to turn it into profitability while lower decision-making ability degrades the owner to take advantage of opportunities. Good past experience helps in to overcome the fear while taking the long term future decision, and ensure about the positive outcome. Marketing starategy of a product also influence the growth of an organization so that effective marketing channel to be developed for achieving the competitive advantage in the market and helps in maintain sustainable image (Gill, and Biger, 2012). Experience and background also helps in allocation of fund and resources in order to get optimum utilisation of resources along with use of standard tools and techniques for efficient functioning of activities.
From the stated report, it can be concluded that small and start up of business makes major contribution in country economy and provide strenghten in global market. They also provides employment opportunities to those unemployed people who have talent and can do something valuable. Business enterprises and social enterprises come up with different attributes because business enterprise are profit while social enterprises are well fare oriented of community. All business entrepreneurs have different characteristics, skills and traits to handle different and same kind of business. Social economy are also be influenced by the small business organization and start up company. It helps in to fill the gap between the serving of goods and needs of a customers which one is ignored by the public or private sector firms. Analysis and interpretation of data, gives valuable information about the research study. Skills, traits and characteristics influence and motivates the entrepreneur to take risk and effectively manage all the activities in order to get effective and measurable outcome. Past experience gives a brief idea about the planning and begining of new start up venture.
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