Entrepreneurship consists of ability to develop, organise and manage a new business venture along with capacity to bear risk in order to make profits. People who are indulged in creating these businesses are known as entrepreneurs.
- Identification of various types of entrepreneurial venture.
- Examining similarities and difference between various ventures in context of roles, characteristics and objectives.
- Analysis of impact rendered by businesses over economy.
- Assessing entrepreneurial personality which is reflecting entrepreneurial mind-set and level of motivation.
- Examination of the background and past experience of entrepreneur which hindered or fostered them.
Entrepreneurship consists of ability to develop, organise and manage a new business venture along with capacity to bear risk in order to make profits. People who are indulged in creating these businesses are known as entrepreneurs. These people look for opportunities for managing and innovating products and services according to changing consumer requirements. Entrepreneurial opportunities may include organizing a business plan, hiring human resources, handling responsibility for ventures success or failure (Storey, 2017). Entrepreneurs are independent in their function but intrapreneurs are dependent upo
Report will include various types of entrepreneurial ventures and typology of entrepreneurship . It will also include similarities and differences between types of entrepreneurial ventures. Further, it will include data which will illustrate impact of micro and small business in economy. Report also consists of characteristics, traits and skills of successful entrepreneur and background or experiences that can hinder or foster growth of entrepreneurship (Sahut and Peris-Ortiz 2014)
P 1 Different types of entrepreneurial ventures and their relation to typology
Entrepreneurship includes how a new business can be developed as well as process of starting a new venture. An entrepreneur is a person who have creative ideas or who is engaged in creating innovative products to satisfy needs and demands of consumers, which would help an enterprise to build into successful organization. They can start any business whether it is of their interest, according to consumer’s needs or related to problems which needed to be solved.
Entrepreneurs and intrapreneurs are different from each other as enterpriser are individuals who built their own business and have full control over business whereas intra-priser are people who are employees of organization but are in charge of creating innovative and unique products. Entrepreneurs are creators of their own organization and uses resources that belongs to them whereas intra-entrepreneurs are workers who use company's resources (Lechner and Gudmundsson 2014). Entrepreneurs raised their own funds whereas other individuals like intrapreneurs are funded by organization.
Entrepreneurs tend to perform various activities which include planning of new product, introducing new item by creating market demand for it, discussing about next move. They also follow various strategies like creating products now and selling it when demand increases.
Different type of entrepreneurial ventures-
Micro enterprise: It can be defined as that business where less than 10 workers are appointed and turnover of company is less than £2 million. These enterprises consist of less amount of risk and also majority of owners are sole proprietors. They are indulged in running business like small grocery stores, electrician, plumbers, small beauty salons etc.
Small enterprise: They can be termed as those businesses where less than 50 employees are appointed and investment in plant and machinery is less than £10 million. Small business can be sole proprietorship, partnership, limited liability or close cooperation (Glaub and et.al., 2014).
Medium enterprise: These are those enterprises where less than 250 employees are appointed and organization can make investment under £50 million. Medium enterprise includes manufacturing, wholesale trade, commercial agents or retail service business.
Typology of entrepreneurship:
Small business entrepreneurship: Small business includes less risk, less investment in plant and machinery, new and innovative ideas which help in making a difference in market. Entrepreneurs have full control over organization. Individuals recruited by them are relatives or friends. Main aim is to create a basic earning for their family so they can feed them and make a reasonable amount of profit.
Scalable start-up entrepreneurship: These types of companies have started with a vision that one day they will change the world with their innovative products or techniques. Investment in these organizations is done by venture capitalist. Success for them is measured in terms when consumers are aware of their company, increase demand of products, huge amount of profit. Greater amount of risks are involved while launching start-ups (Birley and Stockley 2017).
Large company entrepreneurship: Large enterprise are type of companies which grow through creating and developing innovative items, offering new products or by utilizing resources effectively. These organizations try to understand consumer’s taste and preferences, culture and ethics, norms of government and product of competitors t . Large organization also tries to introduce old products in new market for enterprise growth and success.
Social entrepreneurship: Entrepreneurs of these enterprises create products and services that solve social and cultural needs of consumer. Main aim of this enterprise is to make world a better place . They try to make products, which are environment friendly and are socially accepted (Fayolle and Gailly 2015).
P 2 Similarities and differences between different types of ventures
These are those organizations in which less than 10 employees are being appointed
It can be referred to those companies, in which less than 50 workers are being appointed.
These are companies which less than 250 employees are appointed
Main aim of these companies are to create profit which can serve their family and relatives
Main objective is to create profit for business growth and expanding of their enterprise.
Main aim is to create huge amount of profit and craete a difference in market with their innovative product.
Various different sizes Firms are involved in these enterprises and also have easy access to enter market.
firms are of large size in these enterprises but entry in these organizations are very complex
Firms are limited in number but entry into these organizations can be easy.
It is usually small in size with less investment in plant and machinery
These enterprises are large in size in comparison to micro organisations
These companies are usually very large in size with more investment in plant and machinery.
Benefits of working
Good salary, incentives, monetary or non monetary rewards, benefits related with retirement, perquisites etc.
Job security, retirement benefits like pension, easy working hours, perquisites etc.
Job security, basic allowances to employees, monetary or non monetary rewards etc.
Scope of entrepreneurship development and growth
Entrepreneurs can develop their enterprise by offering products that people need. It can act as an opportunity for entrepreneurs by bringing new and innovative products . Enterprisers always seek opportunities which are available to them. Creating a new enterprise will also create employment opportunities for people who help in improving quality and standard of individual. It will also help in development of new organization. Efficient use of new technology can also result in economic growth of company, as by using updated techniques they can utilise resources effectively (Storey, 2017). Innovation and creating new products have also made these enterprises to create a difference in environment. Developing innovative products has helped them in building relationship and creating trust among consumers. It has also made them earn loyal consumers and expanding its market over country.
P 3 Data illustrating impact of micro and small business in economy
Micro and small enterprises have a huge contribution in growth and development of United Kingdom . It also shows an increase of 97000 since 2015. In addition, data provides us that employing businesses increased by 14000 since 2015 and there was also a high increase in number of non employing businesses by 84000. Data shows that small organizations accounted for 99.3% of all private sector businesses at the start of year 2016 and 99.9% was small and medium sized companies (BUSINESS POPULATION ESTIMATES FOR THE UK AND REGIONS 2016). These organizations developed a total employment of 15.7 million which was 60% of all private sector employment in UK. Records shows us that combine turnover of SMEs was £1.8 trillion which consists of 47% of all private sector turnover in UK.
In the year 2016, there was record of 1.3 billion employing businesses and 4.2 billion non-employing businesses; also it includes 76% of organizations that does not employ anyone aside from the owner. Overall, business population includes three main types of entrepreneurs 3.3 million sole proprietorship (60% of total), 1.8 million companies (32%) and 4, 21000 partnerships (8%). It also shows that of 5.5 million organizations, 45% (2.5 million) were registered for VAT or PAYE (Glaub and et.al., 2014).
Data also provides that there has been a growth in total business population with increment of 2.0 million since 2000 and 97000 since 2015. Population growth since 2000 has been due to non-employing business, which accounted for 89% of total increase. Number of organizations, which has increased in recent years are 1, 25000. SMEs accounts for 99% of business in every sector whether public or private. Data also consists of 7200 large businesses of UK make a major contribution in employing individuals as employment in small organization was 12.5 million and turnover £1.8 trillion(33%).
Similarly, employment in large enterprises was 10.5 million and turnover was £2.0 trillion (53%)(Birley and Stockley, 2017. ). Records show that 935000 companies were employers, 265000 sole proprietors and 125000 partnerships 14% of sole proprietors and 53% of partnerships were registered for VAT or PAYE.
P.4 Importance of small business and business start on growth of economy
Small business are essential for success of a economy. They are enrolled as a success stories for future and also help us in meeting our daily needs. It includes plumber, electrician, hairdresser, financial consultant, etc. To be a owner of a small business is a challenging task. Though small business are smaller but have their own importance and a huge impact on the economy. They may not generate large revenue like that of large corporations but are very essential for the growth of our economy. Basically, there are 3 ways in which they contribute to our economy.
Several studies show that for economic growth we require the participation of the startups and small businesses. More than 50% of jobs are created by the small businesses. They provide jobs to the people who are not employed in large corporation. They attract talent who tend to produce new products with new ideas for the business (Mamabolo, Kerrin and Kele 2017). They are the customer oriented market and they easily adapt the changing taste and preference of the customers. At the time of crisis, they have less to lose and they are the business with small investments. A small idea can change the world, almost all the companies start with small business first and then they grow as a large organization and become major players in the society.
In accordance with start-ups, it can be done at any place or time, only requirement is having innovative and creative idea. They are the small and initial entrepreneurial ventures for the people who are reading to work hard, have innovating ideas in mind and their and service have a huge market in the market.
They are designed to grow fast, are the house of innovations and provide ample opportunities of employment. Start-up helps to increase the economic level of a nation and are necessary for expansion and revenue generation (Mariotti and Glackin, 2014). Entrepreneurs are the driving force in the society as they are the innovating treasure of the economy. A good example of startup is the GREAT RECESSION, in US, where the economy was at a downfall and had lost jobs and only after that new start-up came in providing employment opportunities.
they introduce new entrepreneurs who brings innovative goods and services. they may remain confines in the market but have a huge amount of profit and contribute a large amount to the national income of the country and further the revenue is used by government. through their innovative offerings, they break away the obsolete technologies and system, with upbringing of new system, improved morale, providing quality life and greater economic freedom (Matchaba-Hove, Farrington and Sharp, 2015). However, government plays an important role in nurturing the new start-ups. They also invest for social cause, community development and also provide financial support.
P 5 Determine the make a successful entrepreneur and their characteristic, skills and traits.
To become a successful entrepreneur, you must have a strong passion and commitment. Its the one's inner drive that help to succeed. To become a winner, an entrepreneur must have strong sense of self -confidence, innovating ideas, and must be open to adopt changes.
- Never fear your failure. Always see failure as a positive experience and learn from that and bring changes (Klotz and Neubaum, 2016).
- Every great entrepreneur has a consultant or a mentor under which they have worked, and who shares his experience with you at which is a great way of learning.
- Keep on learning and adapting the new changes because the movement you stop learning some other competitor will come and acquire your positions.
- Nothing is permanent. Needs and requirements keeps on changing, so an entrepreneur should be flexible enough to adapt the changing environment and technologies. Always grab the new opportunities.
- Try to maintain long term business relationship and many entrepreneurs believes that it is easy to maintain the relation with old customers instead of investing time and money into new customers.
- An individual cannot be successful alone, but a team can be. So always work in a team of like-minded people and who have the same mission and vision as that of yours.
- Always listen to your inner voice (Liang and et.al., 2015).
Steve Jobs was not an ordinary personality, he was different possessing the gigantic creativity qualities and ideas. In spite of many failures and setbacks, he never gave up and kept moving. He had unmatchable will-power which gave consumers what they desired and also that they would desire in their future and what have never even thought about it.
Some traits possessed by him are:-
- His vision of simple user interface and different design for apple.
- His unique and unimaginable imagination
- He always believed in himself, his ideas, his creation and his products
- Passionate and was survivor of tough time, even at the time of weakness he used to attend launch meeting (Nguyen and Phan, 2014).
WHETHER ENTREPRENEUR ARE BORN OR MADE?
Many people hesitate to start their own business with a fear of loss and risk but how beautiful and rewarding it would be to become a boss. Some say that entrepreneur are born and some say they are made. It is a very debatable topic. If we consider entrepreneur are made, they are made right when they take birth, since their childhood, family and the circumstances happened during their life-time. The situations of failure in their life have made them successful. They are made out of the present and experiences. Whenever, we listen to a story of an entrepreneur he would always mention the external factors which have framed him into a successful entrepreneur. It can be taught by in classrooms and by creating similar business programs, it a subject which could be learned only by doing and performing experiments.
If we consider that they are born, they have intact to create their own business and start-ups, have innovating ideas, are passionate and ready to take risk. He is the one who is able to see the future and grab the opportunities to earn profits. He is able to spot what is right and what is wrong for his business. It's the inborn personality traits and learning skills which have made him successful (Liang and et.al., 2015).
Skills of Successful Entrepreneur:
For being a successful entrepreneur, there are different skills and ability, such as
Confidence: It is important to focusing on confidence for being successful entrepreneur. It is also focusing to increasing confidence level of employees in the workplace. The confidence level is to developing skills and knowledge in the organization.
Delegation: For being a successful entrepreneur, it is important to delegating for setting up the mission and vision in the organization. The delegation is more important for employees motivation in the workplace.
Initiative: The successful entrepreneur is to taking initiative in all activity and events in the organization.
P 6 Personality traits which reflect entrepreneur motivation and mind set
Entrepreneur: an entrepreneur is the person who run the businesses on its own and also take financial risk to run the businesses. So that he can earn profit and enjoy his work. Entrepreneur is the manager and oversee all the activity of the businesses. The entrepreneur is the person who look to all the areas of businesses and bring changes in the businesses according to the requirement. The traits of entrepreneur get motivated and mind set are as following.
Family upbringing: an individual grow up with some customs and value which they follow throughout there life in the all parses of there life, like that only an entrepreneur also follows some ethics in there organization which his has learned from his elders from the way there elders run there businesses. An individual also can be a predetermined entrepreneur, if his or her family belong to businesses class, so the traits of an individual could be genetic and an individual can be more effect entrepreneur but an individual involve in businesses and don't belong to businesses class has to work litter hard but also can be a good entrepreneur by working heard (Nguyen and Phan, 2014).
Lifestyle: the lifestyle is the way is which a particular person live they life by influences of their family member, by there surrounding and also by the society in which they live all this factors effects the life of an individual. Like that, an entrepreneur also get effected by his surrounding, if they get good working environment then they can focus on their work and can get good outcome and if the working environment is not good then there work also get effected and are not able to complete there work on time and this also impact there businesses. So good lifestyle is very importance for an entrepreneur.
Cultural differences: Cultural differences means an individual belong to different class of society, belong to different cast and has difference believes toward all thing but cultural different also means that in which field an individual has completed their studies. An entrepreneur also work according to there believe and apply all the knowledge that they have gain while studying to get good outcome and to improve their work style and through cultural difference their work also get effected, some time the impact is good and some time the impact is bad (Klotz and Neubaum, 2016).
Personal motivation: An entrepreneur get motivation if there work is appreciated by other, by this way an individual can work more efficiently and effectively for their businesses and can bring more creative and innovative idea for they businesses. Self motivation impact is always positive on an entrepreneur as by this they can encourage others also, can get good outcome for their organization. They can be motivated by setting their personal goals and working according to they objectives, to achieve there aim. Personal motivation is very importance for individual as well as for organization (Liang and et.al., 2015).
Personality Trait :
Passion: It is essential personality trait in the successful entrepreneur of the company. In this trait, entrepreneur is passionate for solving conflicts and situations in the organization.
Self Confident: The successful entrepreneur should self confident for facing all situations and conditions .
Flexibility: For adopting various challenges and changes, entrepreneur is making decision by flexibility.
P7 Examine the person's background and past experience can hinder and foster entrepreneurship
There are many entrepreneurs who come and go and then there are those who creates history among them is a name of Steve jobs, who is considered in the list of top entrepreneurs. Steve Jobs, computer designer and corporate executive is a co-founder of Apple.
HIS FAMILY BACKGROUND
Steven Jobs was born on February 24, 1955, in San Francisco, California. He was adopted by Paul and Clara Jobs. As a child, he used to swim but didn't show much interest in swimming but and other sports. He used to earn by himself at an early stage. He was more interested in working with gadgets and electronics. He used to spent is most of the time in working in a garage workshop of Hewlett-Packard, an electronics manufacturer. Jobs used to reconstruct electronics, which increased his interest in these jobs and even increased his confidence.
These factors have a direct influence on the life of an entrepreneur.
Economic factors include factors of production i.e., land, labour, capital and entrepreneurship. Capital, the most important factor of production that hinders an entrepreneur. A high capital investment may help to increase the profits and vice a versa. Easy availability of funds for investment also helps to grow a business. Right quantity and right quality of workers also help to increase the productivity in the work. Another important factor is market, only the person with the best knowledge of the market and the is aware of the latest technology will survive. Every business require easy transportation facilities for their inventions (Kerr, Kerr and Xu, 2018).
2. CULTURAL FACTORS
Every society has different cultural values and traits which affect an individual's action. Division of society on the basis of caste, rich and the poor. Some countries believe that more profit is unethical, this type of belief affect the growth of an entrepreneur. If the culture is money oriented and economical, entrepreneurship will be appreciated and wealth and health would be appraised. In some countries people are not motivated with their talents. Some families who are involved in service sector will encourage their children to find a secure job rather than doing their own business thus crushing out their dreams. Some cultures have a system of education where teachers motivate children to start an entrepreneurial business. Cultures where people does not believe in taking risk end up with doing jobs only.
A strong dedication, passion, creative mind, leadership abilities, mission, vision, and self confidence and self assessment would help an entrepreneur to grow. Whereas factors like tight security and restriction will deprive their growth. He should be a hard-working person, who never setbacks even in the worst conditions and always tries to minimise the risk (Kozubíková, and et.al., 2015).
Education helps an individual to come in contact with the outside world and what skills and knowledge is required to meet up with their surroundings. Some countries have a rigid education system where they consider it as waste of money to invest in education. Some believe that business is not a respectable occupation and working under someone in a job was given more respect. Some people teach the basic education and does not prepare their youths for standard jobs and not to start their own business with their innovative mind.
The society where the government policies and procedures are strict impact the entrepreneur in taking decisions of starting a business or not. In the countries where there is high tax deduction then it would not encourage the entrepreneurs and the country where less or no tax payment is there of start-ups and entrepreneur gets motivated. Policies of beneficial legislation by the government and few struggles and hurdles motivates an entrepreneur. Some countries have strict labour laws which may act as a hurdle for starting a new entrepreneurial business.
6. PURCHASING POWER
Countries where the purchasing power of the people is very low, a person will think twice before starting his business because who will buy if income would be very low. But if the income of the people is good enough, the will have a goof purchasing power and would prefer to buy the goods and services which are a symbol of luxury and status (Liang and et.al., 2015).
In this report, it can conclude different types of entrepreneurial ventures, types of entrepreneurship, defining its aims and scopes. It can conclude defining the similarities between different types of entrepreneurship, roles, characteristic and objectives of different types of ventures. It can also conclude impacts of micro and small business on the economy by considering local, regional and international economics impacts. It can conclude importance of small business and its start -ups on growth of social economy. It can determine the traits, characteristic and skills for successful entrepreneur and also determining entrepreneurship skills are using for learning. It can conclude different aspects of entrepreneurial personality which reflects their motivation and mindset from considering family upbringing, cultures difference and personal motivations. It can define using example relating person's background and experiences of entrepreneurship by considering factors such as types of education, national cultures and characteristic and also considering risk and rewards.
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