Unit 3 Entrepreneurship Level 5 GSM London College

TASK 1

P1 Different types of entrepreneurial ventures and its interrelation typology of entrepreneurship

An entrepreneurial venture is a combination of risk, failure, success and ambiguity: learning and embracing it. There is a fine different between both terms small business and entrepreneurial venture which creates a major difference both of them. Small business is often associated with services and products establishment already whereas entrepreneurial venture aims over the innovative and more productive offerings that tend to risk. An entrepreneur refer to the individual who determines a business undertaking the financial hazards expecting profits as an outcome out of it. An entrepreneurial venture often influence the communities and economies in more ideal way that also create a cascading impact on job creation and other commercial sector (Bridge and O'Neill, 2012). There are several different types of entrepreneurial venture and typologies that are interrelated with each other. Here are mentioned some of the venture types of entrepreneur:

• Small-business Entrepreneurship: According to the recent scenario, there are several different sort of entrepreneurial venture which are functioning in United Kingdom. Approximately more than 6 million of business organisation are recently operating their business. Such types of business venture consist of travel agents, internet owner of cafe, grocery stores, electricians, carpenters and many other. These individuals are operating their ventures at risk in the hole of maximising their benefits in the marketplace.
• Scalable Entrepreneurship: These are considered as the venture that are being created by investing a strong business idea. They formulate a certain vision to carry out change in the existing idea or framework. In order to operate their business, they arrange funds different investors are market to sponsor their business (Carsrud and Brännback, 2011).
• Social Entrepreneurship: Such sort of business organisation are those who functions in regard of providing benefits to their communities and society through delivering their products. They manufacture only those products and service type which are effective and can assist existing miserable condition in more better manner.
• Large Scale Entrepreneurship: These types of business are often organised and arranged to maximise the benefits in the competitive business. These aims over the increasing the profit amount and wide market space.

Entire venture typologies are interrelated with the ventures of entrepreneur which set their mission, nature and purpose of performing their journey shaping in significant manner. So, there are several typologies of business which are presents and are interlinked very well with these types of venture. Here are mentioned some of those typologies:

• Lifestyle Venture: such business types deliver immediate benefits of business. The entrepreneur often like to work by their own.
• Survival venture: Such entrepreneurial venture are formed with the purpose of earning livelihood. Often, these refer to the small business organisations such as internet cafe, grocery store, barber store etc.
• Managed development venture: such businesses are generally formed to create monetary promotion of organisation. The individuals who invest in such entrepreneurial venture are considered will always make certain that their investment is not at stake and benefits in business is definite (Chittithaworn and et. al., 2011).

Hence, it can be claimed that there are various different entrepreneur types which are mentioned in the below discussed report:

• Serial Entrepreneur: These individuals are stated as the entrepreneur type who initiate their business constantly and merchandise it as next phase. They have various new services along with creative working ideas along with enough funds.
• Social Entrepreneur: These entrepreneur types who light over on the solution of society issues beside than earning benefits from this. They have several handling and ambitious which handles the issues which are prevailed in communities or society (Chrisman and et. al., 2012).
• Female entrepreneur: Such types of entrepreneur who perform as an entire enterprise that include majorly women. These entrepreneurs are often more dedicated and committed to their performing it with more dedication and creativity. These companies are majorly controlled and owned through women themselves and are liable for creating more than 51% job opportunities in United Kingdom.

P2 Similarities and Difference between entrepreneurial ventures

Entrepreneurship can be defined as the willingness and capacity to organise, develop and manage a venture of business with the risk and benefits probability equally. Such people are often more risk taking and innovative that are considered as one of the major and more indispensable part of society assisting in increasing competitive international marketplace (Wheelen and Hunger, 2011). Here are mentioned some of the major similarities and differences between different types of entrepreneurial ventures discussed in the previous questions:

TASK 2

P3 Assessing and interpreting the impact of micro and small businesses in economy

Business Classification: Business organisation functions various types of operations and practices in order to achieve their purpose and provided goals within a working organisation. There are numerous business types which is being conducted with the society. Here are classified some of those:

Micro Business: micro business can be defined as the organisations or business which are owned by single owner along with sum of five worker involving employer. Due to its flexibility and mobility, several people of each age are operating their micro business (Dennis Jr, 2011). There are approximate 5.15 million micro business organisation in United Kingdom in the beginning of 2015 which is increasing rapidly. 95% of micro businesses are operated in United Kingdom.

Small Business: Small business enterprise refer to business for benefit which is independently operated and owned but less dominant in this region. This typically consist of 5-500 worker relying on the produced product and industry (Welter, 20111). More than half of the business are directing their small business enterprise in the commercial sector of UK.

Medium Size Business: Medium sized business organisation are generally well formed and have a noticeable track that facilitates investors and lenders do their financing decision. A business organisation with minimum 100 to 999 worker are considered under the range of medium sized of organisation (Drucker, 2014). Adverse productivity hinder growth in economic as well as delivering productivity is indispensable, certain as the country prepare to exit from EU.

SMALL BUSINESSES NATURE

Here are classified the major nature of small business which are discussed here:

• Shoestring budget: A small people group or sole proprietor function the small businesses. These organisation often functioning on shoestring budget dealing that functions of SME on limited monetary asset.
• Intensive Labour: Majorly labour are intensive. Several different small business types hugely depend on the functioning of labour. The primary small businesses nature are more engagement of physical work despite of intellectual work.
• Indigenous technology: Cause of small business being society focused as well as labour focused, SME generally thrive upon the native operations methods (Storey, 2016).

After the Brexit, United Kingdom has majorly supported the small business organisation in the competitive business environment of UK. Struggling through the economical crisis, the country has managed to develop their economical growth and light over the small businesses and start-ups which impact on the different levels of country as mentioned as below:

• Local Impact: Small business organisations are having a strong influence on the country's local businesses as these are providing major employment opportunities to the individual of UK in post Brexit period. These have positive influence to carry out the improvement in standard of living of people of United Kingdom.
• National Impact: The influence of small business in country is vital in country as this assist in economy development through creating more and more business evolution opportunities along with creating employment. By this, more monetary support has been generated in country and their economy which will become rich (Fassin, Van Rossem and Buelens, 2011).
• Regional Impact: Small business has wide influence over the services and products manufacturing along with shaping the cost of their services and products. These are generally considered as consumer's chaise and hence make the services according it only.

Henceforth, it can affirm that several difference and consequences are faced by an country after the evolution and inclusion of small, medium or start-up business which shapes the final outcome and economical condition of organisation significantly (George and Bock, 2011).

P4 Contribution of small businesses and start-ups in growth of social economy

Brexit: this is the withdrawal prospective of UK from the EU nations. It is considered as one of the strong agreement among brand consensus and economists in the existing research of economic which Brexit is likely to decrease in United Kingdom real income per capita in the long and medium term. The procedure started from 29 march 2017. On 23 June 2016, in a referendum, government of United Kingdom invoked new article i.e. article 50 of treaty on EU. This was a debatable issues within the United Kingdom that has drastically impacted the country's economical condition and led to carry out different decision which has been taken by PM (Unger and et. al., 2011). Hence, the business industry of United Kingdom was largely affected by this agreement which has influenced the small business and start-ups of United Kingdom in more significant manner.

Different between start-ups and small business:

Here are mentioned some major difference and main contribution of such entities in the economical growth of UK:

Small Business Impact on social economy of United Kingdom:

Social and economic evolution: small companies can be defined as the economical power of the United Kingdom. This can be observed within the small business enterprise as in UK there are more than 5 million companies. These are accountable for creating approximate 15.2 million and more employment opportunities in UK impacting positively the whole segment.

Development on social security: This is another essential components which assist in income stability promotion in UK economy. This has assisted through the country's economy through delivering them a proper income that they deprive due to the death disability and retirement. This influence the economy (Gorgievski, Ascalon and Stephan, 2011).

Effect on taxes and revenues: Small business and start-ups influence the taxes and revenues in United Kingdom due to their economical employment as these entities generate wide income part of a nation. If the income of company will be aggregate and balanced, people of nation will be able to accumulate information and taxes amount. There is straight relationship between taxes and revenues as with the revenues increment, the income of country will automatically increase.

Impact on poverty and other elements: This factor is having very strong influence on the business economy as the present poverty of nation as well as its growth is adverse then expected. This assist in decreasing the economical poverty through creating more opportunities of employment and wealth in economy.

TASK 3

P5 Characteristics, traits and skills of successful entrepreneurs

Entrepreneurship or an entrepreneur can be termed as the concept which excel the business management confinement. When this carried out the entrepreneur success in the recent scenario, one should surpass the more easiest manner of managing and starting a business organisation as well as reach to the level where business and innovation go more hand in hand (Goss, 2015). This is fundamental for a business entrepreneur to evolve concepts in the consequences with the varying environment of business and executing those ideas of business in strategic form in relation of business. Thus, a mere qualities or abilities is not enough as an entrepreneur, it rather need desire and more passion too (Zott, Amit and Massa, 2011).

For example, Richard Branson, also co-founder of Virgin group proclaimed that there are several elements which influence an entrepreneur. One of major declaration he stated was on the risk taking practices, since the entrepreneurs should always stay prepared to undertake the hazards comes while operating a business. Beside this, this is paramount for an entrepreneur to be more active and adaptive while handling a condition when this comes to the style of leadership (Jones and Rowley, 2011).

Though the statement “Whether leaders are made or born” is still debatable as this lead to various facts and statics where individual say they are merely born and various facts presents that they are not born but made. This moulds and support the intrinsic aspects of a person, where entrepreneurship is considered as a combine element of management and leadership trait which is majorly formed by stimulation of external factors and mindset of an individual.

P6 Aspects of entrepreneurial personality in reflecting entrepreneurial motivation and mind-set

This is the entrepreneurial personality which is essential to develop the economy and business which is very crucial as entire practices in business are conducted through owner. Hence, this is require to have a proper personality in order to create an influence on society. An entrepreneur is unique from the other individuals on the grounds of their traits, personality and skills which makes them more successful among other. These traits of entrepreneur makes them more unique helping in carry out the adventures practices in more significant manner (Karlan and Valdivia, 2011). This is stated that individual who are performing with entrepreneur has a different personality impact which is mentioned beneath through the assistance of big five model discussed here:

Openness: The feature traits like the insight or imagination and those high trait also lead to have a wide interest range. These individuals are more creative and adventurous.

Conscientiousness: This dimension consist of more standard feature such as high level of control, thoughtfulness and goal-oriented behaviour. This is mindful and full of conscientiousness details.

Extraversion: This is characterised through sociability, excitability, assertiveness, talkativeness and higher emotional expressiveness at high amount.

Agreeableness: this dimension include the personality which consist of the attribute such as altruism, trust, affection, kindness and other pro-social attributes.

Neuroticism: this can be characterised through moodiness, sadness and instability in emotions. Individual who are highly involved this trait are often full of sadness, irritability, mood swings and anxiety etc.

Richard Branson claims himself high risk taking which is majorly formed from his previous abilities and experiences believing that each challenges leads an individual to new skill and knowledge. This become more clear through the education and knowledge that received by life experience of an individual (Neck and Greene, 2011).

TASK 4

P7 Factors that foster or hinder entrepreneurship

The major reward as well as drawbacks of entrepreneurial venture are mentioned as below:

Hence, this mentioned report claims that the concept of entrepreneur are born. Each negative and positive attribute that an entrepreneur has, this has because of the former experience and knowledge as one accumulate b that experience. Since this aspects has been declared that the entrepreneur are not made but born, this become a clear components which collect experiences in life, entrepreneurship play very vital role within the working organisation (Schaper and et. al., 2014). In example of Richard Branson, one himself would make certain this notion, as he has risk taking ability which majorly stated as an acquired quality or skill in which one have already dealt with the specific condition affirm their experience in business.

CONCLUSION

The above stated report summarise the aspect of an entrepreneur and entrepreneurial ventures in more significant manner through evaluating in-depth analysis of its various aspects in more significant manner. Entrepreneurial practices enable an organisation to refrain more competitive as well as can build economic development as well as solve the societal issues. An entrepreneurial venture is an person who begin and function a business with planning and definite resources as well as is liable for entire rewards and risks of their ventures. There are several different types of entrepreneurial venture and typologies that are interrelated with each other. Entrepreneurship can be defined as the willingness and capacity to organise, develop and manage a venture of business with the risk and benefits probability equally. There are numerous business types which is being conducted with the society such as micro Business, small business, medium size business etc. United Kingdom has majorly supported the small business organisation in the competitive business environment of UK. This is fundamental for a business entrepreneur to evolve concepts in the consequences with the varying environment of business and executing those ideas of business in strategic form in relation of business. It is stated that individual who are performing with entrepreneur has a different personality impact which is mentioned beneath through the assistance of big five model.

REFERENCES

• Blackburn, R. A., Hart, M. and Wainwright, T., 2013. Small business performance: business, strategy and owner-manager characteristics. Journal of small business and enterprise development. 20(1). pp.8-27.
• Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small business. Palgrave Macmillan.
• Carsrud, A. and Brännback, M., 2011. Entrepreneurial motivations: what do we still need to know?. Journal of Small Business Management. 49(1). pp.9-26.
• Chittithaworn, C. and et. al., 2011. Factors affecting business success of small & medium enterprises (SMEs) in Thailand. Asian Social Science. 7(5). p.180.
• Chrisman, J. J. and et. al., 2012. Family involvement, family influence, and familycentered noneconomic goals in small firms. Entrepreneurship theory and practice. 36(2). pp.267-293.
• Dennis Jr, W. J., 2011. Entrepreneurship, small business and public policy levers. Journal of Small Business Management. 49(1). pp.92-106.
• Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
• Fassin, Y., Van Rossem, A. and Buelens, M., 2011. Small-business owner-managers’ perceptions of business ethics and CSR-related concepts. Journal of Business ethics. 98(3). pp.425-453.
• George, G. and Bock, A. J., 2011. The business model in practice and its implications for entrepreneurship research. Entrepreneurship theory and practice. 35(1). pp.83-111.
• Gorgievski, M. J., Ascalon, M. E. and Stephan, U., 2011. Small business owners' success criteria, a values approach to personal differences. Journal of Small Business Management. 49(2), pp.207-232.
• Goss, D., 2015. Small Business and Society (Routledge Revivals). Routledge.
• Jones, R. and Rowley, J., 2011. Entrepreneurial marketing in small businesses: A conceptual exploration. International Small Business Journal. 29(1), pp.25-36.
• Karlan, D. and Valdivia, M., 2011. Teaching entrepreneurship: Impact of business training on microfinance clients and institutions. Review of Economics and statistics. 93(2). pp.510-527.

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