Entrepreneurship is a process of designing through which a company launches and runs a new business that can be small during the initial years. Whereas in terms of entrepreneurs mostly develops new and innovative ideas so that services and facilities can be provided to their clients in a better manner. In this present report, different kinds of entrepreneurial ventures in included along with their relation with various typologies. Apart from this, similarities and differences of entrepreneurial ventures are mentioned so as to understand entrepreneurship in a better manner. Lastly, scope, development, and growth which are seen in entrepreneurial ventures are mentioned in this assignment.
P1 Different types of entrepreneurial ventures and explain how they relate to the typology of entrepreneurship
An entrepreneur are more like people who love to work alone with their innovative ideas instead of working under an organisation. Mostly, they open their small business and play a crucial role in enhancing the income or GDP of a nation. Thus, it can be said that entrepreneur so business in order to pursue their opportunities that are available in the market. There are different kinds of ventures that works in various sectors whether small, medium or large and some of them are explained below for better understanding:
Small business entrepreneurship: There is an increase in sole traders and SMEs in United Kingdom. Even large business are reducing its size of business and around 23 million companies has established in United Kingdom between April 2016 and April 2017, which is better than previous years. Small business entrepreneurship are owned by an individual independently and playing their crucial role in increasing nation's economy. According to a study it has been analysed that size of small business has increased to approximately 5.7 million. Majorly, these companies are operated so as to feed family members as their profit margin is relatively low.
Scalable Start-ups Entrepreneurship: People who are doing these kind of business have their own observation and perform their activity to change the world for a better living. Scalable entrepreneurs have different vision and through this, they try to attract a large number of investors who can provide them with funds in order to give better services and facilities to its clients. For them raising revenues is easier without even enhancing sky-high incremental costs.
Large Company Entrepreneurship: These companies grow by implementing innovative and new ideas. Other than this, they manufacture goods on a regular basis by providing more varieties revolving around the core component. Main motive of these firms is to gain large number of profits so that they can sustain in the market for a longer period of time. Henceforth, it is important that company make changes in their products according to the needs and wants of customers as it will assist organisation in delivering goods which are as per the choices and preferences of consumers.
Social Entrepreneurship: not all companies work for generating more and more money or becoming one of the leading firm some entrepreneurs so business activities for helping other persons who are needy. Social entrepreneurs perform their activities not for improving market share but fulfilling the needs and demands of citizens. Therefore, first social entrepreneur look out for the factors that are to be consider for making life more easier for them.
Henceforth, above mentioned are some of the different kinds of entrepreneurial ventures who are operating its business in United Kingdom and providing better services and facilities to its clients. Such two organisation are assist in maintaining and managing all entrepreneurial ventures which are used for analysing all business activities and functions.
Typologies of entrepreneurship
Serial entrepreneur: They first, establish their business with new and innovative ideas and successfully run its business for gaining benefits and also to generate more and more money. Later, serial entrepreneurs give their business to someone else for further operations and starts a different business with an innovative thought. Giles Palmer, is one of the best example of serial entrepreneur and he is the founder and CEO of BrandWatch. Basically, the company provides with different platforms for connecting various kinds of brands so that different market opportunities can be availed.
Social entrepreneur: They are the one who are potentially capable enough of resolving issues related to society or community. While solving issues social entrepreneurs show their willingness of making lives of people easier. Gravity Light is one of the organisation that is working for replacing harmful kerosene lamps which affect health of an individual who is using that with solar lamps. Martin Riddiford and Jim Reeves are the key founders of this organisation.
Female entrepreneur: They have same quality like male entrepreneurs and capable enough in resolving all the issues and problems which can hamper business activities. Basically. Female entrepreneurs work for a social cause so that standard of people can be lifted and they can be equal to other individuals. Clara Barton is the best example of this as she works for American Red Cross and performing her activities in making life even better for humans.
P2 Similarities and differences between entrepreneurial ventures
Major work of entrepreneurial venture is to provide advisory services to its clients and in order to do so they evaluate various kinds of aspects and manifests so that work can be done even better (Leitch, Hill and Neergaard, 2010). These includes companies of various segments such as start-ups, corporate, social, scalable etc., Therefore, with the help of this, they are tend to provide better services and facilities to its customers. Some of the similarities and differences are mentioned below for better understanding:
Male and female entrepreneurs
Small and Social entrepreneurial ventures
Scalable start-ups and large entrepreneurial ventures
Lifestyle and survival entrepreneurial venture
M1. Demonstrate an understanding of entrepreneurship in both public and corporate sector
Private corporate sector:- Their are several type of private corporate sector some of them are as followed:-
Survival firm:- The main objective of these firm is to survive and meet the financial obligations, their long term goal is to stay in business.
Lifestyle Firm:- The main aim of this firm is to survive and maintain the life. These ventures have high risk of failure.
Aggressive growth Firm:- The main focus of these firm is to growth with high initial investments or investors.
Social Firm:- objective of these ventures is to survive and solve social problems.
Public Sector Enterprise:- These firms are owned, manage and control by the government. Their main aim is to serve the society, they are welfare oriented. Present status of these firms, they are growing impressively and both central and state government interested in investment to their products and services .
D1. Examine the scope, development and growth of entrepreneurial venture
An entrepreneur is a person who start and run a business with the limitation of resource and planning and is responsible for the risks and achievements of the venture. The new entrepreneur must have new, unique and innovative ideas and they also need the support of the networks and connections to survive. The good and new idea and appropriate plan provides the scope for the growth of the entrepreneurial activities. An entrepreneur has wide opportunities and vast scope in selling sector rather than manufacturing sectors. If the venture is small and medium then it has wide scope in the market, because it have high productivity, greater efficiency and low labour turnover.
P3. Illustrate how micro and small business impact on economy
After the Brexit referendum, government of UK pay their maximum attention towards SME's. These organisations play a most important role in the economy growth and development practices. These enterprises are considered as Micro, small and medium enterprises which are different to each other on the basis of their turnover, number of employees as well as resources capabilities. In small and medium size businesses, there are around 250 employees who work for reaching with desired goals and targets. There are approximately 5.7 million small businesses are situated in United Kingdom in the year of 2018 which was over 99% of all businesses.
Micro scale organisation
Not Needs to be more than 10
Less than 2 million pound
Small scale organisation
Needs to be Less than 50
Not more than 10 million pound
Medium scale organisation
Needs to be Less than 250
Not more than 43 million pound
This organization has numerous impact on the economy of the UK such as -
Local Impact – SME's provide opportunities to individuals who are living in the local areas of the company. The also assist for the improvement of living standard of individual's in appropriate manner. These impacts can be -
- Employment – Small scale organisations employ approx over 24.3 million people in UK which accounts for 60% of all private-sector employment, and a massive 81% of the overall workforce (The importance of small businesses in the economy. 2018).
Regional impact - Micro and small firms basically provide quality services and products to their customers on the basis of their requirement as well as need. After this they, they set appropriate cost of products so that customer's can buy each them easily. Thus, this kind of practices provides benefits to government for the betterment of economy growth by enhancing customer's buying power.
Micro business – It is generally defined as small business employing and occupying with less than nine people and they have 2 million investment while start up the businesses.
Small business – Small company is the any company where lower than 500 employees nd fails beneath an industry particular annual reports. It is operated and regulated by small owners where they are work together for reach with desired goals and targets.
GDP Contribution – Small businesses are contribute around 99.3% in all private sector businesses at the beginning of 2018 and there are around 99.9% were small and medium sized. Total employment of small medium enterprise was 16.3 million in the United Kingdom.
Interpretation: It can be analysed that micro and small business impact on economy and it is directly affect on business operations at international level. There are around 88% companies are micro in nature, on the other hand there are approximately 75% are considered as small business and around 10% are determined as medium size businesses. Along with this, there are around more than 0.4% businesses are considered as large companies.
P4. Explain important small business and business start – ups will contribute of growth of social economy after ‘Brexit’
There are several businesses are ruining in the UK and all of them plays a significant role in the raising economy of the country. ‘Brexit’ referendum was happened in the year 2006, it was biggest political movement which shake entire world. Brexit stated as ‘Britain exit’ that means Britain exits from Europe. The UK and EU government appealed to the people to vote for Brexit in which England voted for 46.6%, Wales also voted to leave 52.5% (Definition of 'Brexit', 2018). After Brexit there UK business industry were gone in downfall. At that time UK government supports business firms for establishment. In meanwhile, there were lots of start-ups and small business developed because that was the only support to raise the economy of the country. After Brexit there are 5.7 million private sector organizations are recorded that is also providing 60% employment. These private sector organizations are account for 73% of all net private sector job creation across UK and it has generated approximately 2 million jobs since, 2010 (Brexit impact on small businesses, 2018). It also increased opportunities for businesses as capital is the life blood of SMEs which is required for struggle. Almost 30 percent of small businesses finds issues to start a business but UK government supports their business.
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There were some negative impacts of Brexit like approximately 130000 small business forced to pay VAT (Value Added Tax) on the goods which needs to be import from European Union. It means that UK entrepreneurs needs to pay extra tax that will generate an extra weigh on them. In order to run a business in an effective way they need to bare the laws that are imposed by the government. As there were already lack of capital investment and import duties also making weakening them. Therefore, UK small and medium business were need to boost up productivity that can increase their economic growth. The UK tech industry is also struggling to stay in the market and provide employment to their employees.
Hence, there Brexit impact a small and medium business in a most dramatically manner. It influences economic growth through dropping the capital investment but it is also encouraging private sectors that is providing employment opportunities to the people.
M2. Evaluate the differences that small, medium and large businesses make to the economy, applying relevant data and statistics
The micro entrepreneur are those venture those have up to 10 employment in firm. They are approx 5.4 million micro businesses in the UK in 2016 which contribute approximately 96% of all businesses.
Small and medium size enterprises are those who have less than 250 employees. There are approx 5.7 million SMEs in the UK in 2017, which was approx over 99% of all the businesses. The small organisation are impact on economy when they are contribute less amount of capital for gaining high growth and success.
Large entrepreneur ventures are those which has more than 250 employees which accounted for approx 0.1% of businesses but 40% of employment and approximately 49% of turnover. Economy changes which directly affect business includes changes and alterations in the interest rate, wages rate and inflation rate. Businesses are mainly motivated and encouraged in order to expand and take risks while economic situations are correct and accurate.
D2. Critically examine how small businesses have an impact on different levels of the economy in a local, regional, national and international context
Wealth creation and sharing:- By starting business entity, entrepreneur mobilizes the public wealth and provide opportunities to people to earn benefits from success of entrepreneur an growing business.
Create Jobs:- By establishing a new entrepreneurship venture a entrepreneur can create jobs for unemployed people which help in economic development. This is the reason why governments are now promoting entrepreneurship in wide range.
Balance regional development:- The entrepreneur helps in developing regional area by locating business in less developed and backward area. The establishment of industries and business in these areas leads to improvement in infrastructure like better roads, schools etc.
GDP and Per capita income:- The establishment of new entrepreneurship make use of resources like land, labour and capital for the development of products and services that added in national income, national product and per capital income which help in growth of GDP and per capital income of the country.
P5. Determine characteristics, traits and skills of two successful entrepreneurs which differentiate them from other business managers
Entrepreneurship can be defining as innovative thoughts that gives a fruitful result to an individual. A person generates several kinds of ideas from surroundings that motivates them to do something new that ca will be beneficial for them and their customers as well. These ideas give a new direction to the market that increases competitive advantage. Entrepreneurs have a vision and determination that makes their products unique and ultimate form others. As they have a vision that supports to attain objectives and goals with strategies. Therefore, there are two successful entrepreneurs who achieved their ambition after facing a lot of struggle. For an example, Jeff Bezos who is a founder of Amazon.com started a firm as book store. He had a visit to provide a books across the world. As he has a determination to establish Amazon as biggest company and he turned his thoughts and vision in to reality. That’s why Amazon is one of the leading organization across the globe. On the other hand, Larry Ellison is an American entrepreneur who is internationally known as co-founder and chairman of Oracle Corporation (Bridge and O'Neill, 2012)
In the year 2018, Ellison listed in the top five wealthiest business man in the United states of America. Both of these entrepreneurs has different skills, characteristics and traits that make them different from others that are mentioned below -
Jeff Bezos skills
- Knack or innovation - Jeff Bezos was hungry for innovation since his childhood. He has creative skills to develop alarm that protects his room by his siblings. This curiosity to develop something unique creates well – recognized retailing websites. Initially, this website was only selling books, but as it raised with time its innovation provides a large range of products and services on its websites. along with these retailing products it’s also innovates in artificial intelligence as Alexa to provide customer satisfaction (Burns, 2010)
- Hard-core realistic - Bezos has a habit that he thinks about all the possibilities that c=may effect a business. When he was launching Amazon at that time he assesses all the circumstances that can be beneficial for the venture. But he was aware about it there are some conditions that may fail become to a reason of failure. He accepts reality that take decision according to the present situations. This is the most unique trait of Jeff Bezos personality.
- Risk taker - It is essential for an entrepreneur that they should be able to take risks because without obstacles that cannot get anything. Jeff had a family when he quit his job to be an entrepreneur. He started his business as a book store and provide books to the entire world. He did not have money to start a business but he was courageous to for a business and he set up a business by knowing the fact of failure. But soon he became famous entrepreneurial personality. In the recent time, he also took a risk to launch Kindle against iPad that is also successful (Carland and Carland, 2015)
Larry Ellison skills
- Determination - Ellison never get retired from his position he works in the age of 70. He works with full determination. As he achieved everything in life but he continuous to be work to compete in the market environment. He aimed to constantly learn new things so that they can achieve new targets. This determination makes him different from other entrepreneurs. In fact, his determination towards the work is a reason to get 8th rank in Forbes magazine among international business.
- Vision – It is necessary for a businessman to be establish a vision where they want to reach. If a person does not a vision for their business, then they cannot run a business in an effective way. Ellison has a vision to make Oracle more successful as it is already giant in database tech companies. But he still wants to make more beneficial that’s why he purchased Sun Microsystems and PeopleSoft to expand its business. His made oracle a leading database company that conducts its business across the world (Dennis, 2011).
These are characteristics, skills and traits of entrepreneurs that makes them different from other business managers.
P6. Reflect entrepreneurial motivation and mindset.
Motivation is always required for everyone because it encourage them to step ahead towards their targets. Every person came through some experiences that inspires them to do something different and set a milestone in the world. There are several small businesses are running in the UK but they have some different and unique attributes that make them beneficial through appealing their customers. In order to be a successful business it is required to provide customer satisfaction. A person should have capability to stake risk and work with determination so that they can establish their firm in adverse situations (Down, 2010).
An entrepreneur should have some creative skills so that they can see the loopholes in present market to grab opportunities. There are several thing motivational things which can motivate a person to be an entrepreneur. Jeff Bezos suddenly decides to be an entrepreneur because as being a business man he will be free to shape his ideas without any restriction. While codifying his thought he will be on higher risk but there is a satisfaction to do something new that can provide benefit to customers (Gorgievski, Ascalon and Stephan, 2011).
A person should be as hard-working as Bezos when he was running a book store after that he started to sell books through online website. Drastically his business going to be spend so far but to attain this goal he worked so hard. He had a vision to establish a largest company. Due to this vision Amazon is the most successful business in the world. Along with hard work there his risk taking ability also inspires others. As there are so many retailer websites which are offering a huge range of products Bezos also take a risk to offer variety of products that can satisfy the customers. While conducting a business it is essential to handle conflicts in an appropriate manner such as social trends that can impact on a business. As changing trends can decrease profitability of a business because people choices are changed with time. Therefore, it is crucial for a firm to provide customer satisfaction.
M3. Explore and examine different lines of argument relating to entrepreneurial characteristics
An entrepreneur can be made or born, the succession of the business is depend on the skills and ability of a entrepreneur. An entrepreneur are born and made by some situation, an individual who have inherent knowledge and skill is called as born entrepreneur and a person who have develop skill and knowledge. In other word an entrepreneur is due to genetic make up, or whether the disposition come from environment, conditioning or other external influences. There are various characteristics of an entrepreneur some of them are describe below:-
Ability to take risks:- It is the first trait of the entrepreneurship business and this ability can be genetic or influence by external environment.
Innovation:- A person can be innovative by birth or get inspire by their surroundings . Innovation basically means creating a new ideas with which an individual can establish a business and sustain and earn profit.
Leadership:- The quality of leadership can be by birth or get generate after the birth by help of surrounding, environment and education.
D3. Analyse the characteristic traits, skills and motivational drivers of successful entrepreneurs, supported by specific examples
The characteristic treats like risk taking, innovative, leadership, hard core realistic etc. influences the behaviour of the entrepreneur which leads to successful enterprise. For example a person who has all the quality of an successful entrepreneur like leader, creative, risk taker etc. by birth, this will help him to run business in effective and efficient way and take business to another level by making profit and growth. Get the best nursing assignment help at the best price.
P7 Examine how background and experience can hinder or foster entrepreneurship.
There are several things through which a person observes and adopts in their personality. The foremost quality of an entrepreneur is an innovative they have an immense quality to create something new that is different from existing things. They also have a leadership that guides their team to attain their task. There are various things which fosters them to be an entrepreneur that depends on their background and it can define as follows -
Education and family - Education is necessary for everyone because it gives a mental strength to understand aspects in the surrounding environment. As whatever a kid observes in his atmosphere that inspires him to do something new (Hall, Daneke and Lenox, 2010). For example, Jeff Bezos motivated through his grandfathers who taught him to solve problems without depending on anyone. He also taught Bezos to innovate some new factors that will be beneficial for business and customers as well. By learning several things, he became able solve issues with different options.
Following passion – Bezos grandfather was a passionate towards his work and that’s why he always found some ideas that can give valuable results. For example, Jeff had a creative mind, due to an immense imagination and vision he was always busy in doing something new. His passion for creativity achieves his objectives and gaols. It results to build Amazon.com one of the leading retailer organization in the world (Leitch, Hill and Neergaard, 2010).
Such factors are directly or indirectly influences background and experience of an entrepreneur who are always work for reaching set goals and targets. An entrepreneur set objectives for others that can be helpful for them in achieving required goals and became successful person.
M4. Analyse the link between entrepreneurial characteristics and the influence of personal background and experience to specific successful entrepreneurs
The reason behind the successfulness of an entrepreneurship is based on the characteristics of an entrepreneur which is a personal background and its experiences. Some of these characteristic which help an individual are:-
Educational qualification:- A person's educational qualification helps them in establish and run a successful business. Like if a person done his higher education in management ,it will help them in managing the business in better way.
Family Support:- A person family support is most important factor for a successful venture because family support in every situation even if business is suffering from loss.
Financial status:- Financial status of a person who is establishing and running a business is important because only through it person can produce or manufacture goods and services.
D4. Critically evaluate how background and experience influences entrepreneurs, both positively and negatively, by comparing and contrasting examples
As per the views of Navid Ghannad, the small firm internationalisation has focuses on export strategies, little attention on understanding the process and consideration under which the entrepreneur identifies. This article suggests that a person's childhood and stories directly influence the behaviour of the entrepreneur. The entrepreneur background developed preference, skills and desires that affect the total behaviour of their future organisation.
From the above report it can be concluded that entrepreneurs support in country’s economy. As there are several small and medium business that support in raising the economy of the nation. There are several kinds of business ventures that relates with different types of entrepreneurial typology. These ventures are not established to gain profitability rather every firm has different objectives some of them are gaining profit whereas others are running to maintain their life. In addition, there are some similarities and differences in entrepreneurial ventures. Further, start – ups and micro business are also impact on economy and contributes in the growth of country.
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