Introduction to Entrepreneurship
Entrepreneurship is maintain and regulating and organisation activities to start and establish a successful business. These businesses are involved in producing a profitable result for the organisation in order to implementing new innovative ideas in practice targeting a new niche market. Entrepreneurship is ability to bear risk and converting this risk into profitable business. Entrepreneurship is having great scope in the countries. The market is continuously growing with developing new trends and needs that are accomplished by the implementation of new ideas in the market with help f new technological development in the countries. The small and medium size business is showing tremendous growth and largely contributes in the economy of the country. This will enhance the employment in country and ultimately increases the spending capacity of the customer to buy new products existing in the market. This cycle keep in going and continuously helps in overall development of the organisation.
The contribution of entrepreneurship and the development of small businesses in the organisation in the local economy and national economy as well are also described in this report. The reader will able to conclude his knowledge about the types of entrepreneurial venture and the typology of entrepreneurship in the following report.
Types of entrepreneurial venture and typology of entrepreneurship
The entrepreneurial venture is the organisation which is developed by the innovating new idea in armlet leading to development of and successful business. The entrepreneurial business is having great exponential growth as compare to other small star-ups. These entrepreneurial businesses are divided in the different category depending upon the various typology of the entrepreneurship. The venture can be small, medium or large depending upon the size of the business. The ventures are also divided on the other factors also like motivation behind the start-up, the type of ownership etc. Some of the entrepreneurial ventures types are described below:
Survival ventures: These are the locally established small business to fulfil the basic survival needs of the entrepreneur and his family. These businesses are having limited production hence owner profitability. These survival ventures are working in highly competitive market as the other companies are large enough and having god technological implementation in the organisation. The small businesses are having competitive advantage of a large customer base with respect to other companies. The customers for the organisation are local society people and builds good relationship with consumers with the word of mouth selling. These companies utilises the personal relationship with the society members in selling their product. These companies are not divided into various department and dealing with single small locality only. These small businesses are having lower no. of employee and the assets.
Lifestyle ventures: The lifestyle business venture is developed by entrepreneur to gain more profitability in the business to maintain better lifestyle of the family and social life in the community. The lifestyle entrepreneurial venture is also connected with the implementation of the new innovative ideas in relation to the individual hobby, interest and creativity skills to attract a new niche market by recreation of his interests. This venture is having a structured system of operations and the well-defined organisation structure that helps the owner to regulate and maintain the business growth efficiently and effectively to achieve a continuous profitability from the business. This business is also involved in serving their services to the local area and nearby Ares only. The no. of employee in this venture is also low and mainly regulated and controlled by the owner and partners of the firm.
Managed growth Ventures: These businesses are managed according to the change in demand of the employee and market needs, environmental factors. These organisations are following opportunity driven entrepreneurship. As they grab various opportunities of growth available to the entrepreneur like occasion, changing technology, market needs. The managed growth ventures are continuously regulated and maintained by growing the business occasionally in different markets and region depending upon the opportunity available. This organisation shows continuous growth with goods management skills and risk bearing ability with the time.
Aggressive growth ventures: These ventures are showing exponential profitability in the market and are depended upon the opportunity driven entrepreneurship. This venture deals with the implementation of various upgraded technology to carryout successful development of the innovative idea in the organisational culture. This aggressive growth ventures is having largest impact on the growth and development of the economy and the country both.
Small size entrepreneurial venture: The no of employee of these venture are less than 10 and the turnover is 2 million euro. These are small scale organisation operating in local area based on basically survival entrepreneurship.
Medium sized entrepreneurial venture: The venture is having 50 million euro turnover and employee count less than 250.
Large sized entrepreneurial venture: These organisations is having larger no. of employee and higher turnover rate dealing in national and international markets.
Different type of entrepreneurship:
Opportunity entrepreneurship: The opportunity based entrepreneurship is development of successful business to grab opportunity viable to the entrepreneur.
Necessity driven entrepreneurship: This is defined as development of the business because necessity of survival or some due to some other financial problem etc.
Women entrepreneurship: Development of a successful business with new ideas implementation in market by the women or group of women with risk bearing capabilities and good managing and planning skills.
Social entrepreneurship: This is defined as the development of a successful venture to resolve the issues of the society and help in development of society.
Venture financing entrepreneurship: This entrepreneurship deals with successful and efficiently development of venture which mages its financial funds independently.
Corporate entrepreneurship: This deals with managing the large enterprise that is group of different business working together.
Global entrepreneurship: The entrepreneurial venture that is a profitably working in the global market between the boundaries of different countries.
Public sector entrepreneurship: The public sector entrepreneurship is regulated by the government authority and working for the welfare and providing new technological facilities to the citizens of the country.
Impact of different size of venture on economic development
The small, medium and the larger ventures is having their own different capabilities of revenue generation and profitability margin. All these ventures affects differently in the growth and development of n country economy. The larger enterprise is involved in various kind of technological up gradation and bringing growth in the organisation in huge no. This contributes in 18% of the growth of the country economy. While the small enterprise is having lower profit margin but the no. of small enterprises are much more in the organisation as compared to other this contributes largely in the development of economy collectively. It was reported that in 2008-2012 micro businesses shown growth approximately to 172%. The small and medium sized organisation are involved in various industrial and manufacturing unit which provides higher employment and contributes in the growth of the economy.
The small businesses cater their activities in small area and develop the economy f that particular this creates job opportunities, new facilities and healthy completion and builds a base per new investors. All these will ultimately contributes in the growth of the overall economy of UK.
The larger enterprise contributes differently in the economy of the country by involving them development of the business at national and international level. That enhance the technological advancement in the country and built competitive advantage over other investors and contributes in the economic growth of the company. While the small and medium enterprise cater heir services at regional level and affects the community and society at that level. This builds basic facilities to the people and the motivate them to spend luxurious life and enhance the capability of person to earn more. Hence all these firm enhance the economic growth to the large extent in UK.
Importance of small business in growth of social economy
The micro business also most constitutes the 96% of the businesses established in the UK according the report generated in 2013. The organisation is having about less than 10 employees working with the company but the no. of such firm in UK market is up to 4.6 Million in total. So, from this huge no. The large contribution of the small business in the growth of employment rate of the country can be calculated. The economy of the country is influenced largely by the small and micro business firm and this contributes in the 32% of the employment in the country. The revenue generated by the overall small businesses in the Britain market is about 18% is of the total revenue generation by the whole country.Some of the importance of the small business firms in growth of the social economy are as follows:
Contribution: The small business is having large contribution in the social growth of the country. As it contributes in the employment rate that will enhance the spending capabilities of the person and able to live them a standard life with accomplishing their basic as well as the esteemed needs. The small business introduce new technology and new strategy in the market to develop their business in highly competitive environment with availability of lower budget. This reduces the cost of the organisation and is having more earning hence the society is benefited with the higher income and new products that facilitates their social lives. The small businesses contributes in welfare of the society also as they are directly connected with the members of society. The new product with new innovation increases sales to 10 % and the due to this the employment rate is increased about to 0.7% in the country.
Competition: Such a large no. of the small business firm in the country contributes in huge completion in the market This will leads to healthy competitive environment and affects the strategies, pricing and quality of the businesses to the large extent to builds competitive advantage in the market this ultimately a positive sign for the growth of society. The good healthy competitive environment attracts the investors from other region and foreign investors also. That bring new technology up gradation in the market and enhance the competition extensively the benefit of this can be utilised by the society people of that area and country.
Employment: Small business is having major contribution in the employment of the local society people. And all the society is benefited by such small businesses ad contributing in increases employment rate in overall country. The UK government reported in 1998 to 2010 that the small business is involved in increases the job opportunity for the social people to the large extent i.e. approximately created 870,000 jobs out of 2.61 million total job created in UK country in that period of time.
Adaptability: The small business is highly adaptive and flexible in nature. They are adapts for the various changes that cannot be controlled by them bringing new flexible changes in the organisation. The small business easily adapt the new technology and any other external environment change and changes their company operation according to the changes to growth with the technological development. this brings flexibility, adaptability and freshness in the business system. This nature of adaptability also helps in increasing adaptability in the society people with the new technology and products provided by the small business to enhance their satisfaction level. After the financial crisis f 2007 the small business adapts new technology and strategies to country the financial problem in the organisation leading to helping society people to faster recovery from this crisis.
Economic Growth: The small business contributes in economic growth of the society with the growth of their own business. The profitability of the business increases the supply of the raw material from the supplier and this will contribute n higher production and supply the goods to customers effectively. This cycle ultimately contributes in development f suppliers, vendors, distributors, competitor economically with the growth of small business itself.
Traits of an successful entrepreneur
The entrepreneurship can be defined as various skills and capabilities of the individual that helps him to bring his innovative idea in practice and establish a successful business in the organisation. The traits of the entrepreneur will help them in managing the business successfully and planning the growth opportunities of the company. The traits of the entrepreneur can be for his birth or it can also be developed with the time by person also by working on his skills specifically. The characteristics of the entrepreneur varies from person to person and also affected by upbringing, social class, financial condition of family, origin of the entrepreneur, educational qualification and some other traits that contributes in the success of the person and business too. The traits and characteristics of the successful entrepreneur are as follows:
- Higher determination
- Risk taking ability
- Failure is part of life
- Management skills
- Ability to sell and promote
From this report it can be concluded that entrepreneurship is having great impact of the economic development of the company. Various types of entrepreneurs whether it is women entrepreneur or men, lifestyle or social all are having some common characteristics like risk bearing capability, consistent to their work, confident and also motivated for the success of the new idea. The entrepreneurial traits can be enhanced in the individual by building creativity skills, innovative thinking, decision making skills by situational analysis and some of the traits are with the great entrepreneurs. The trait and the characteristics of the entrepreneur are influenced by the various factors like personality, past experience, social and economic environment of the country.