Entrepreneurship is an effective activity of setting a new business and taking on financial risks in the hope and purpose of profit (What is Entrepreneurship?, 2017). It is an important process to balance strong and long term vision with a willingness and desire to embrace change. An entrepreneur is an individual person who, rather than working and functioning as a worker, founds and establish a small business, assuming entire rewards and risks of the venture (Barringer, 2012). Therefore, entrepreneurship is identify as an effective procedures of designing, running and designing a new business. This report will be made of small-business which is Unicorn Grocery. It is a grocery store which is located in Chorliton-cum-Hardy, England. This report is based on different parts such as a various kind of entrepreneurial venture and their relations with entrepreneurship typologies. Impact of micro and small business and its significance in the growth of social economy. Entrepreneurial personality, traits, skills, experience and background reflects on its mind-set as well as motivation also.
P1. Different types of entrepreneurial ventures and different types of entrepreneurship typologies
Entrepreneurship: It is the capacity and desires to develop, manage and run a new business along with any kind of risks in order to make maximum amount of profit. According to Nathaniel H Left that define entrepreneurship is the willingness and capacity for investment, expansion and innovation in new techniques, products and markets.
Different types of entrepreneurial ventures: There are different number of ventures are existing at marketplace which is started and owned by a single person. All these business are mainly depends on risk taking capability of entrepreneurs (Baum, Frese and Baron, 2014). Therefore, all ventures are not similar for each other and not have common purpose which are needed to complete entire requirement and needs to launch new business activities appropriately. Below mentioned four types of ventures and they are not having similar features are explained:
- Scalable starts-up entrepreneurship: Under this venture, maximum profit and risk are highly involved. They needed to be capitalised by crazy capitalist which are always ready to take maximum amount of risk with motto to earn more profits. Main aim and objective of this entrepreneurial venture is to modify the globe with their new ides and opinions. In order to expand their business rapidly, such kind of venture needed maximum fund.
- Small business entrepreneurship: This venture involves all such activities and operations of business in which less than 50 employees are employ and having sales under 6.5 million. This type of venture needs sufficient amount of money to start and launch start-up's. This business yield maximum rate of employment in the people who ate living in United Kingdom (Bosma and Levie, 2010). There are some small-business which are main part of this kind of venture such as plumber, travel agents, electricians, consultants, etc.
- Social entrepreneurship: Under this, all such kind of entrepreneurial venture are involved which renders new services and products for the betterment of community and satisfying basic needs and requirement to the society. Main motive of this venture is to solve different issues which are arise in the society. They are not functioning for the development of stakeholders wealth and create world an effective place for them to live.
- Large entrepreneurship: In this entrepreneurship, large amount of the profit as well as risk is highly involved. In order to satisfy different and basic demands of clients, attainment of maximum market share, large entrepreneurship are needed to adopt advanced technology, innovation, legislation in their business operations.
Typologies of entrepreneurship: At marketplace, there are different number of entrepreneurs are available which are renders new products and services to the customers in the growth of economic (Bruton, Ahlstrom and Li, 2010). Their main motto is to satisfy basic needs and requirement of clients and yield their involvement in the betterment of society as well as economy also. Various types of entrepreneurs are explained as below:
Social Entrepreneur: Under this, an entrepreneur whose start business activities and functions with the motive to removal and charities of social reasons. In this profit organisation and non-profit organisation are main part because they are working and functioning for the welfare of society.
Serial entrepreneur: It includes, all entrepreneurs present with innovative opinion and launch their innovative business functions and activities systematically. They involve in the daily basis activities and functions of company. Main motto and objective of serial venture is to make profitable and allot duty to other people with functioning on another innovative idea.
Female entrepreneur: In this entire activities and functions of the company is only managed by the female entrepreneur. Main motive of this entrepreneur is to achieve maximum amount of the fund.
Male entrepreneur: Under this, all operation and functions of the enterprise is only handled and managed by only male entrepreneur. Main aim of such entrepreneur is to achieve competitive advantages.
Lifestyle venture: Main focus of such kind of venture is to seizure maximum number of share and utilise optimum resources in a proper manner (Dacin, Dacin and Matear, 2010). This type of business is run and set by its founders with motive of sustaining a specific level of income.
P2 Similarities and difference between entrepreneurial ventures
Above discussed all entrepreneurial ventures play essential and significant role in betterment of society as well as economy also. All these have some similarities and difference which are identified under this:
Lifestyle ventures similarities with business
Serial entrepreneurs venture and similarities with business
· Lifestyle venture renders flexibility in places, hours and attire.
· They mainly focuses on capturing market share and utilisation of optimum resources.
· In the grocer and retail store, lifestyle venture required well-educated people who can easily do business activities.
· Serial venture provide new ideas and opinions to the business with motto to attract customers.
· Main focus of serial venture is to utilise better and optimum resources of business.
· In the organisation, serial venture also needed to hire knowledgable employees who can easily deal with difficult situation.
· An individual who start and launch their business operations with the support of their own optimum resources.
· The entrepreneurs that do not have any kind of strategies and policies in order to operate business operations and activities with their passion.
· These type of entrepreneurial venture acquire maximum help from the capitalist in order to operate their business operations without lining any kind of lack of funds.
· They operates and launch their business activities and operations as per the policies and plans which is developed by them in earlier.
Female Entrepreneur similarities with business
Male Entrepreneur similarities with business
· In the organisation, all activities and functions of the business entity is only controlled and managed by the female with aim to accomplish their long term goals and objectives.
· Such entrepreneurs are more focused as well as creative in order to making their operations in successful manner.
· It is a part of business in which entire operations and activities are only managed and controlled by the male entrepreneur with motto to achieve predetermined objectives.
· This type of entrepreneurs are mainly targeted and focused with the assist of policies and plans which ensure business development and success at marketplace.
· Activities and functions of the business is only handled by Female entrepreneur.
· Main motive of this entrepreneur is to gain maximum amount of the capital.
· Business activities and functions are only managed and controlled by the male entrepreneur.
· Main objective and motto of such entrepreneur is to attract large number of customer towards business products and services.
P3 Impact of micro and small business on economy
In the United Kingdom, three types of business are recently work including small, micro and large. In the growth and development of economy those business are play vital role (Defourny and Nyssens, 2010). Functions and activities of those business support in the betterment of economy as well as society also. Due to the existence of United Kingdom from European union SME's has adverse and different impacts on economy. Further, government play important role in order to analysis better way to solve Brexit effects. Thus, it is important in order to encourage the activities and functions of SME's in country. As this will renders maximum opportunities of employment, removal of unemployment rate, creation of infrastructure, maximise cash flow in the economy. So achievement of long term growth and success in small business activities, government of the country plan linnet strategies as well as policies as well. All three business organisation are explained as below:
Micro: Under this business, employees number are less than 10 and their turnover is approx £ 2 million. In this business original investment in machinery and plan is does not overreach 2500000. As compare to small and medium business, micro firm functions are smaller (Delgado, Porter and Stern, 2010).
Small: Under this business, amount of original finance in plant and machinery is not high up to 20,00000. Number of workers whose are working in such kind of firm is less than 50. turnover of small organisation is belong under the £ 6.6 million.
Medium: It is an another business organisation which has less than 250 employees and turnover is not exceed of £ 25.9 million. Main motive of this enterprise is to accomplish long term goals and objectives in limited time period.
Characteristic of Partnership, private organisation and sole proprietorship:
Partnership: It is generally related with the practice of public accounting, medicine, law and many other professions. In simple word, it is an association and organisation of two or more persons in order to carry on, as a co-owners, a business for profit. The main of this firm is to accomplish predetermined objectives and targets in limited time. There are some characteristic of partnership which are shown as below:
- Limited life.
- Work to accomplish common goals and objectives
Private organisation: Under this all activities are handled by the individual and nongovernment company (George and Bock, 2011). Under this legal authority of the nation has less control over the functions and activities of business. Characteristic of this enterprise are mentioned below:
- To earn maximum amount of the capital.
- This business only managed by non-governmental enterprise.
Sole proprietorship: Such kind of business is managed by an individual. In this single person has entire liability and responsibility in order to overcome all losses in a systematic manner. Characteristic of sole proprietorship are explained as below:
- In this business owner have sufficient liability.
- Such kind of business is only controlled by single person.
Impact of economy on SMEs:
Local impact: The SMEs are emphasised on rendering better quality in their services and products at reasonable prices thus it create a positive effect on the national people of United Kingdom (Impact of small-business in UK economy, 2017). Pleading an impressive damage on quality products enhances the standard and quality people who are residing in community (Hall, Daneke and Lenox, 2010).
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Regional effect: The small and medium organisation is involving their impacts in distinguishing the preferences and choice of the clients which assist them in changing their present goods as per its needs which assist in increasing satisfaction level of them.
National effect: Small Businesses organisation provides more involvement in the processing of economy via rendering large number of employment opportunities to group. Apart from this, peoples purchasing power is also maximise due to which country economy is also rises.
P4 Importance of small businesses and starts-ups in growth of social economy
BREXIT – It is described as the abbreviation for the exit of Britishers. There was a decision taken by the economy of UK in the year 2016 on 23 June. This was related with leaving the European Union. This system was planned and effectively designed in system of general voting in order to avoid any types of conflicts (Herrington, Kew and Monitor, 2010). There was a situation arrived in which there was a fall in the operations of small and medium size business activities. The British pound was recorded at its very minimum level from the past 30 years and at that time the Prime Minister of UK was David Cameron. At that time it was very much difficult to identify the implication of Brixit on small business operations. The impact of Brixit was favourable in some areas but some had also faced negative impact because of Brexit.
Difference between small business and start up business
Start Up Business
These business are having their operations at smaller scales and their main purpose is to run their livelihood.
There are various kind of traditional products involved and services are offered at a smaller level.
The small business is not having higher market growth and shares as compared to start up business activities.
The small business is classified into various aspects such as corporate firms in which less then 300 employees are working, partnership firms
These business are mainly focused on starting a new venture in order to effectively perform business activities.
New innovative ideas are thoughts are mainly focused on start up business.
The business who have expanded their operations at larger scales are always the part of the market group. The services and products are offered in most effective manner.
The start up projects are reformulated by people in a group or single individual.
Contribution of and importance of small business on UK social economy
Social and Economic development: The start up and small business operations are providing large market shares to people of UK economy (Kirzner, 2015). According to the report which are generated by the small business there are 6 million people who are developing innovative ideas for small business in order to earn profits. This is the most vital factor which results in growth of the overall economy thus there will be higher profitability and the operations will be carried out in effective and planned manner.
Social security standards: This is the most vital factor in order to maintain healthy environment and social security standards within the whole nations across the globe. This results in gaining effective results for the overall business performance.
Contribution to taxes and revenues: This is the most important factor as the small business are beneficial in generating higher taxes and revenues by running their operations globally (Neck and Greene, 2011). The operations of small business are leading in the present time thus they are working for the welfare of the economy.
Providing employment: The small and start up business are providing employment to large group of people in the economy so they can easily earn their livelihood and fulfil all the basic necessities of their life.
P5 Traits and skills of two successful entrepreneurs
Entrepreneur is a main part of the business success and development. It is essential and beneficial for the new business inn order to maximise their sales and revenues in limited time period. Successful entrepreneurs have more skills and traits to accomplish long term objectives easily. Two successful entrepreneurs are Bills Gates and Mark Zuckerberg. Those are have more knowledge and skill to successfully set their business operations and activities at international level (Oosterbeek, Van Praag and Ijsselstein, 2010). There are some characteristic which are take by both entrepreneurs. These are determined as below:
Risk taking: It is main characteristic which is important and beneficial for the new business venture to increase their profitability and effectiveness. Under this both entrepreneurs are take risk which help them in future growth and success of business organisation.
Money management: Accurate amount of the money is major part of the business development and success. This type of characteristic take by both entrepreneurs which help them to do all activities and functions of company in limited time period.
Hard worker: It is another characteristic and quality which is essential and important for the entrepreneur. With the help of this quality they easily complete all work and activities in allotted time period.
Planning: Plaining is another significant characteristic which is beneficial for the all business to do their all functions and activities easily (Pott and Pott, 2012). Further, it support the enterprise to maximise their profit and sales. In this both entrepreneur plan an effective strategy which assist to manage all work in a systematic manner.
Traits of becoming an effective entrepreneur:
Confidence and Passion: Both entrepreneur will accomplish success and development in their new business entity when they have more confidence as well as passion also in their through and plan which support in developing in future. Under this, both required to emphasis on accepting difficult situation and make variation in their products and services in order to maintain customer loyalty in the business.
No afraid of taking risk: In the marketplace, there are lots of risk which take risk and challenges in the way of business operations. Therefore, it is essential for both entrepreneurs because in this they have risk taking quality which assist them in snatching chances to compete wit their challengers as well as accomplish long-lasting position in marketplace.
Product and Market Knowledge: Under this traits entrepreneurs must needed to aware regarding the basic requirement of customers and competitors strategies. Thus, it is important for the entrepreneur to introduce new products and services in marketplace. Therefore, it is essential for the organisation to attract various number of clients towards grocery products.
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P6. Entrepreneurial personality reflects entrepreneurial motivation and mind-set
Entrepreneurial venture is a type of business which is controlled and owned by an individual therefore, it is essential for them to have an effective personality, it make a better effects on society as well as community also (Santos, 2012). Beside this, Both entrepreneurs should have particular traits and skills which support them in making better decision for company. With the assist of effective personality, both entrepreneurs can attract capitalist to yield sufficient amount of the money in order to carry out all activities and functions in an appropriate manner. There are various kind of model and framework but Big Five Model is more valuable and useful for the company in analysing the entrepreneur traits.
Openness to experience: It is a first and main part of the Big five model which reflect the ideas and thought, it is highly needed to accomplish success and growth in marketplace. Each and every person must be having innovative and creative opinion which help to grab maximum chances to attain better position in market.
Conscientiousness: It is identify as a traits which communicates that a person should be focused and conscious an accomplishing predetermined objectives and goals so that they easily maximise their sales and profits.
Extraversion: Under this an entrepreneur that should be social as well as energetic. It will support an entrepreneur in order to sustaining in marketplace via rendering benefits to community as well as society also.
Agreeableness: It is another trait which show that business person must be cooperative as well as trustworthy also (Storey, 2016). Thus, it is important for them in sustaining healthy and strong relation with their employees whose are working and functioning in the enterprise.
Emotional stability: It is depict as a trait which identify that an entrepreneur or business person must be composed and calm which is essential while making effective decision and judgement for organisation. They require to implement and develop corrective policies and plans which should not harm anyone.
P7. Background and experience can hinder and foster entrepreneurship
There are different limitation as well as advantages which impacts on business operations and activities of entrepreneurship (Welter, 2011). Some rewards and drawbacks which are explained as below:
· Control and monitor: In this, entire obsessed and controlled by an individual thus they do whatever entrepreneur want and need to doing without any intervention.
· Excitement and joy: Introducing innovative product and services into marketplace that brings maximum joyousness among clients. An entrepreneur following innovative techniques and tools that will bring gain their excitation level as well.
· Flexibility: Under this, an entrepreneur is only manager of concern thus they can work and function at any time period as per their comfort.
· Exemption: The entrepreneur accomplish entire rights in order to make better decision and judgement hence they feel independent while playing their responsibility.
· Management: Under this entire decision and judgement are taken by manager themselves without asking with anyone because of the chances in acquiring positive effect will be fewer.
· Rivalry: It is identify as an essential part for an entrepreneur in order to innovate their new produces and services into marketplace which creates their business operations in different way. Competitors is another part of which highly effects on individual and organisational performance and productivity also.
· Work Agenda: Both entrepreneurs does not have proper work agenda due to which windup of work and activity on time period will be hard for them.
· No daily wages: The earnings attained by business organisation are kept by enterpriser themselves therefore they lining any financial loss that will also state by them also. Hence it becomes ambitious for them in order to pay reward to their employees as well.
From the above mentioned report, it can be concluded that entrepreneurship is essential part of the new business. It will provide different opportunities to the people who are living in United State. In the marketplace, there are different number of entrepreneurial venture are present that play vital and essential role while providing job opportunities to the people who are not employed. All these ventures has some difficulties and similarities which shown their importance at marketplace. Start-ups and small business both are important for the individual to maintain strong relation with them. Entrepreneurs have different traits, skills which highly effects on the their mindset as well as motivation in a direct way. Read about how small business management.
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