Entrepreneurship is something which is related with starting a new business by an individual which wants to gain profits and sustainability. Entrepreneurship has been traditionally defined as to design, launch and start or also to running a business operation of a firm by which entrepreneur can earn profits and their desired goals. Entrepreneurship generally begins as a small business for an example start-up company, offering a product, process or service for sale or hire (Lee-Ross and Lashley, 2010). The people who start up their own business firm are called Entrepreneurs.in this present report it has been discussed that there are many forms of entrepreneurship which are now in very much form or hike. In addition to this it has also been discussed that there are many types of entrepreneurial ventures and their typologies. Also, there are similarities and differences between different entrepreneurial ventures. Furthermore, it has been reported that there are some characteristics of successful entrepreneurs which make them different from others in this industry. Also, micro and small industries also affect entrepreneurship as well as on the economy. It contributed to the growth of overall economy of country.
P1 Different types of entrepreneurship ventures and typologies
Entrepreneurship ventures means different forms of entrepreneurship which exist in current world. Entrepreneurship means starting up of business venture and putting efforts to run, operate their operations which will accomplish their desired and set goals and objectives of company. There are different forms of entrepreneurial ventures that are as follows:
Small business entrepreneurship: this is the foremost kind of entrepreneurial ventures in the market area of industries. Small scale business entrepreneurial ventures are those in which start-up is done at the small level (Storey and Greene,2010). It includes various small business entrepreneurs which includes hairdressers, consultants, travel agents, internet commerce start up etc. The main aim of small business are to feed the family.
- Large company ventures: large companies have infinite life cycles. Large companies are those business enterprises which aim to make profits and sustainability. The main focus of the owners of these companies are to build their image in the competitive world. They want to explore new things and innovations which can foster their performance in the market area.
- Social entrepreneurship: social entrepreneurship venture are those in which main focus is on the creation of those business products and services which are for the beneficial for the society. These are those social products which are formed to solve the social needs and wants of societal people.
P2 Similarities and differences in entrepreneurial ventures
There are many entrepreneurial ventures that are presented in the market industry. It is to be recorded that there are many similarities and dissimilarities between them. Entrepreneurial ventures are those which are related to each other in the context of business enterprises.
The various similarities between small business entrepreneurial ventures and large scale business enterprises are as:
Both are the types of business entrepreneurial ventures. These are related to start-up also, to run, operate and conducting its business creativities.
Small scale business enterprises and large scale business are formed to give an individual to use its own skills and capabilities by which they can complete their targets and tasks (Burns, 2010).
There are also many dissimilarities between them are as:
Small scale ventures
Large scale enterprises
M1 Diverse range of entrepreneurial ventures
Entrepreneurship is the process in which an individual buys a product at a certain prices to resell that particular product at an uncertain price and also there by taking the risk of profits and loss. Entrepreneurship is the art which has been used by an individual who has an exceptional insight into societal needs and the abilities to fulfil the needs and wants. There are many different range of entrepreneurial ventures that are as:
- Scalable start-up entrepreneurship ventures: these are the small business start-up by an individual which relates to their vision that they could change the whole world by exploring new things and services. They have a powerful source of investment from their venture capitalists.
Small business entrepreneurial ventures: it is that kind of ventures which are small business. They employ non-governmental ventures. And also they are formed with the mission to feed their families and to their wants and desires (Stokes, Wilson and Wilson, 2010).
- Social entrepreneurship ventures: social entrepreneurs are those innovators and producers of goods and services who aim to create the products and services that resolve the issues and problems of people living in the society.
- Large company entrepreneurship ventures: these have finite life cycles. These enterprises sustain and grow through bringing innovation, offers new products that are complimentary with their main products.
D1 Examine the scope development and growth of ventures
There is a huge scope, development and growth of business entrepreneurial ventures. These are very vital for the overall development of a particular country. Entrepreneurial venture can be defined as a business set up which has been formulated by the individuals for satisfaction of their desired goals and objectives. These are the activity form which involves the crucial contribution of the skills and development of an individuals as well as work for the betterment of the society.
Also these contributes in the total progress of a particular country. As, the small business enterprises employ the non-governmental employees. They make up of 99.7 percent of all the companies in UK. Small business enterprises accounts for 38% of the gross domestic product and also 47 % of the total business employment (Bridge and O'Neill, 2012). It is clearly clarifying that these entrepreneurial ventures are developing at a speedy rate. Small and medium business enterprises lay an important role in establishing development in any country.
Small business entrepreneurs and ventures also subsidise in the job creation and also helps in an analysis of their value to the economy. Also it has he great impact on the tax system of the company. These are considered to be an important and crucial because it enables the entrepreneur to enhance their skills and capabilities.
P3 Assess how SME impact on the economy
The small business enterprises impact the economy on the great extent. Entrepreneurship is the form which gives an individual an opportunity to be cultivated, motivated and remunerated to the greatest possible extent. Entrepreneurship can change the way of working and living. Small business enterprise can impact the economy of the country as well as also the other big institutions. Entrepreneurship can add value to national income of the country. The small business entrepreneurship can also affect the economy by offering improved products or technologies from entrepreneurs are able to enter new market to be developed and new wealth is also created
It has also been assessed that the small business enterprise contributes around 42% of the GDP. The GDP can be termed as overall sum of all the gods and services produced within the country. Also the small business enterprises also effect the political parties of the country.
Also it has been said that there are many other few things that are highly impacted by the government and other issues. Also, in today’s world, four out of five jobs are created by the small business enterprises. Small business creates jobs for unemployed people and also economic growth along with tax revenues that finance the welfare in the country. Small business enterprises employs large number of people and also diversify the scope of economy. They are flexible and ready to adapt each and every type of changes in their business operations (Mariotti and Glackin, 2014).
P.4 How SMEs will contribute to growth of social economy
Small business enterprises or small business start-up contributes to a much extent t the social growth of an economy. They produces the gods and services which are likely in the interest and benefits of individuals and society. The performance of the economy is highly affected by the Brexit n the UK. The GDP of country has shown an expansion of 0.5 % in the economy, 0.2 percent above the expectations (Schaper and et. al., 2014). The impact of Brexit on the UK economy as well as on the small business enterprises is wide ranging because they are the life line of UK. Also, falling GDP will record a huge impact on the economy of UK in terms of the overall activity of business and consumers buying their perspective regarding the products and services.
The 0.5 percent growth is only in the services sector lifting declines in constructing and manufacturing. Small business enterprises are also more susceptible to shocks since they generally have a lower field of operation. Small business enterprise are also very useful for the social growth of an economy. It impacts the economy in such a way that it creates benefits for all the people living there in (Hatten, 2015). The small business enterprise form strategies and policies and strategies to make the society more beneficial and happy. The main objective of enterprises is to change h world through their vision and mission.
M2 Effect of small, medium and large business on the economy
There are many forms of industries in the economy. These can be classified into small, medium and large business organizations. They impact the economy in their own way. These companies impact the business enterprises in their separate way.
Impact of small and medium business enterprises are as:
These are the focal point in shaping enterprise policy in the EU. The commission considers SME s and entrepreneurships as a key which ensures economic growth, job creation, and social integration in the EU. SMEs are in general can be determined as an organization in which there are employees who are less than 250 in number (Scarborough, 2012). SMWs are very important part of the economy as it offers around 99% of all the enterprises and employ on the increasing number of persons. SME s are mainly presented in manufacturing and to lesser degree in knowledge intensive business enterprise services. Also, SMEs are vital in terms of employment and gross value added, which is especially in smaller countries.
On the other hand large business enterprises also impact the economy in a great way. Large enterprises implements a higher number of GVA in high and medium or low technology manufacturing sector. Also, large enterprises can be more enhanced by trade integration, globalisation and industry consolidation and also explains business cycles even better.
D2 Critically examine how SMEs impact on levels of economy
Small business enterprises are generally do not generate high income as large business enterprises but then also they are important and critical component and also a major contributor to the strength of local business economies. They impact the different levels of economies in their own separate ways. These are the business enterprises which employs less than 250 employees in tier business enterprise. Since 1995. SMEs generated 64% of new jobs and pays 44% of the total United States private payroll. SMEs have an abilities to adapt the economic climate changes (Dennis Jr, 2011).This is due to the effect that small business entrepreneurship ate very small business oriented. Also, a flourishing local business will generate higher taxes, including local taxes also. This money is then contributed to the establishment of schools and colleges.
Also, small business enterprises affect the other levels of economy. Entrepreneurship also affect the local, regional and national level of an economy of a particular country. In this context, novel products, production, modalities, organizational schemes and product market combinations are created. Also, the entrepreneurship on economic growth also refers to the entry and exist which however appears to have minimal contributions to the growth of an economy in the short run. It also encourages self-employment in the country’s individual which positively affects the social economy of a country.
P.5 Characteristics and traits of successful entrepreneurs
To become a successful entrepreneurs, ne should have significant features and characteristics (Neck and Greene, 2011. ). They have their own skills and abilities which makes them different from others. In today’s world, there are two one of the most famous and popular entrepreneurs are namely; Mark Zuckerburg and Steve jobs. The skills and capabilities of these two are:
- Passionate: the two said entrepreneurs are very passionate about their work. It contributes a lot to the economic growth and also in accomplishment of their set goals and objectives.
- Resilient: it is one of the important trait of the business entrepreneurs. It means that the above said entrepreneurs are very determined t their work and career.
- Self –Possessed: for becoming a successful man, one should be self-possessed and also be true and confident to his work.
Difference between manager and entrepreneur are:
P.6 Entrepreneruial motivation and mind-set
In today’s world, people are very much influenced by the entrepreneurs and their capabilities. These are those people which are upcoming entrepreneurs in the market area. The successful entrepreneurs have those skills and capabilities which influence and impact the mind set of other people. They have a mind set to become like effective and compatible entrepreneurs which have accomplished their desired goals and objectives. In this context, characteristics of Mark Zuckerberg and Steve jobs have been discussed (Gorgievski, Ascalon and Stephan, 2011). The interest to become a successful entrepreneur has also been developed in the today’s world environment because it gives them an opportunity to use their skills, capabilities and other abilities to accomplish their desired goals and objectives. In addition to this, there are certain many other things that attracts a person to adopt the talents of successful entrepreneurs. Mark zuckerburg has changes the mind set of individuals as at very short age he has created a successful social site namely Facebook. It has created a positive mind-set that everything is possible if someone has the determination and will power to attain the set goals and aims. N the other hand, Steve jobs was the founder of Apple Company. He has influenced the perception of people by becoming self-confident and innovative. He proves that being confident and determined towards their work is been the mst wonderful thing.
M.3 different lines of arguments regarding characteristics of entrepreneurs
There are many characteristics of successful entrepreneurs that are as:
- When a person is set out to become an entrepreneur, it will need to set the objectives and goals along the way. To ensure the growth of the business, increasing the sales and hiring new employees and other micro goals require some determination in the entrepreneurships.
- Entrepreneurs are not afraid to take risks. Profit is the reward of risk taking.
Entrepreneurs ensure high level of confidence in themselves. They think that the job is properly done if it is done with great level of confidence (Raposo and Do Paço, 2011). They focus on the most challenging factor which makes them different from others and also they end up with the finish line with a reward.
A successful businessperson always tries to learn something new and innovative. Industries constantly change and evolve but only those will survive which constantly learn something different for their objectives (Sampaio, Thomas and Font, 2012).
- In addition to this entrepreneurs also understand that failure is the part of the game and accepts it with all their heart. It also provides some learning experiences which provides them an opportunity to learn from them and overcome of it.
- Entrepreneurs are also passionate about their business and abilities. It means that they have an opinion that one should love and respect their work.
D.3 characteristic traits, skills and motivational drivers of successful entrepreneurs
Entrepreneurs are the persons who have the skills and capabilities to take risks and gain profit as a reward. They have different traits and characteristics which make them different from other managers and people. Entrepreneurship can be defined as in which companies are set up on the basis of the short level as well as like start up business. These are the persons who run, operate and conduct its business operations in an amicable manner. There are many kills and traits as well as tactics of business entrepreneurs which motivates and guide other people as well. They make them as their ideal person (Ligthelm, 2010). For an example, Mark Zuckerberg has the ability to face the challenges and opportunities which made him one of the successful entrepreneurs among all in very short age. It is an inspiration to each and every upcoming entrepreneurs. Also, the traits of successful entrepreneurs motivate its employees too. These people set the standards till which they expect its employees or workers to perform.
For an example, Bill gates is the richest man in the world. His basic rule of success is to be focused on what is required and needed to fulfil the set goals and objectives. in addition to this, Steve jobs is also one of the famous and successful man in the world. He believed that one should love and respect his or her work, which will enable them to move forward in the direction of their goals and objectives.
P.7 Examine how background and experience can hinder or foster entrepreneurship.
Background and experiences play an important role and foster the entrepreneurship. These play an important role in developing the entrepreneur skills in the people. Background means that one’s family is also involved in the same business. If an upcoming entrepreneur will get a positive background then he will be able t learn all good and bad experiences from his family. That will also help them to learn the lessons whether it should have been one or not. Background is somehow interrelated to experience in any manner. Experiences can also hinder and foster the performances of the entrepreneurs (Fassin, Van Rossem and Buelens, 2011). If he is having god experience then he will let that increased so as to enhance its productivity and efficiency. On the other hand, if he does not have good experiences it will hinder the performance as well as lead him to again why he has started this business. Background is also very important because it gives a person an experience which can be good or bad. Good experiences can lead to better productiveness and efficiency and bad experiences can lead to decline in the rate of success of their enterprise
From the above report it has been analysed that the entrepreneurship is the most popular and upcoming highlighted thing in today’s era. This is concerned with the ability of the person to run and operate those enterprises which are under their control. It is an opportunity given to them for utilising their expertise and know- how so that they can fulfil their dreams and objectives for which their business enterprise has been established. This report also includes that there are many characteristics and traits of business entrepreneurs which make them different from the managers.
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