This sample will guide you through:
- Introduction on Entrepreneurship & Small Business
- Difference between Start-up's and small business
- How background and experience can foster entrepreneurship
Entrepreneurship is a process of starting new venture by taking risk with the help of yielding high profits. It refers to an activity where an individual is willing to operate and manage business by using their skills and resources so that enough profits can earn (Altman, Sabato and Wilson, 2010). Entrepreneurs are innovators and they have ability to determine opportunities from market and exploit them on time. They convert the resources with low productivity into higher one. This assignment covers different entrepreneurial ventures and its similarities and differences. Apart from this, report includes skills, traits and characteristics of successful entrepreneurs.
P1 Different types of entrepreneurial ventures and their relation to its typologies
Entrepreneurship is determined as a process of converting an idea into innovation that helps in growth and sustainability of venture. By successful conversion of idea into valuable goods and services, firm enables to yield high profits (What is Entrepreneurship?. 2018). By combining resources, capital, land and labour in business opportunities, high profits are earned by entrepreneurs. It completely depend on the ability and potential of individual to take risk, examine market and execute plan with the aim of delivering high quality products and services to target customers.
Different entrepreneurial ventures:
Small business entrepreneurship: These are small firms which are owned and managed by single individual. There is a single owner which handles the functioning of entire business. These are considered as small size firms as for starting it, high amount of capital as well as manpower is not required. These ventures are established with the aim of satisfying basic needs of people and earning enough profits. Main objectives behind operating these businesses is feed members of family rather than earning profits. Electricians, carpenters, consultants and grocery stores are some example of small business entrepreneurship.
Scalable start up entrepreneurship: These are skilled and creative entrepreneurs and have high ability & potential to change the world by their skills, competencies as well as innovative ideas (Audretsch and Link, 2012). They mainly emphasize on searching out repeatable and scalable business model. Once the found such structure or frame, their next step is to start focusing on getting attention venture capitalist. These individuals establish, develop and expand their business by their creative & innovative ideas.
Social entrepreneurship: These are the innovators that mainly focus on developing such goods which facilitates in resolving problems and needs of society. Main aim behind starting this venture is to enhance country's economic condition. Its existence is not only for the purpose to earn enough profits but to give their high contribution in welfare and development of society. These entrepreneurial ventures deals with several issues like poverty, health care and illiteracy (Barringer, 2012).
Serial entrepreneurship: These are individuals who come up with new ideas on continuous basis to establish a venture. They are somewhat different from other entrepreneur as others establish their business with own ideas and play significant role in managing routine operations of business. But in case of serial entrepreneurs, they come up their unique ideas, start a business and handover it to others after its successful running then again start a venture with different idea. These entrepreneurs are known by the name of founder of businesses.
Large scale entrepreneurship: It includes multinational firms which start up their businesses with high investment. Such organisations mainly focuses on creativity and innovation and operates with the major aim of yielding profits as well as working for social welfare. They are engaged in CSR activities and run their business ethically. For gaining high profitability and competitive edge in market, their main focus is to improve quality of products and satisfy needs of customers.
Female entrepreneur: These are women entrepreneurs who start their business actively with innovation and creativity. Female participation in employment and equity of firm is the basis of female entrepreneurship. In this, organisation is successfully run and managed by females and have minimum 51% of stake in company (Baum, Frese and Baron, 2014).
Serial entrepreneur: These individuals continuously come up with innovative idea to start business. They take challenges, establish business properly, assigning responsibilities to perform operations and then move to another venture.
Male entrepreneur: Organisations are rely on ability and potential of men & an entire business is operated and managed by males only. Minimum 49% shares of company are hold by male entrepreneur.
P2 Similarities & differences between entrepreneurial ventures
There are several features associated with each business enterprise which differentiates it with others. Simultaneously, there are some similarities among them. Some differences and similarities are defined below:
Lifestyle venturers or business
· These firms are operates with the aim of yielding high profits to enjoy luxury lifestyle (Bosma and Levie, 2010).
· For earning high profits and revenues, it is required to recruit skilled and competent manpower.
· These ventures are mainly emphasize on acquiring high market share and make proper use of resources so that targets and objectives can be achieved effectively and efficiently.
Serial entrepreneurs ventures
· These ventures focus on acquiring good market position and yield high profits which allows them to get lavish lifestyle.
· Highly skilled and competent manpower is hired by these ventures so that objectives will accomplish.
· One of the major similarity is optimum utilization of funds and other resources as well as is customer centric.
· In these ventures, information is not communicated to financial capitalist regarding growing stage of firm.
· These businesses are started from own earnings & livelihood.
· Power is concentrated or centralized in few hands in such ventures.
· All the information regarding internal and external situation of company is communicated to financial investors on constant basis (Bruton, Ahlstrom and Li, 2010).
· These ventures are run for the purpose of earning profits only. Entrepreneurs just want to be rich, they do not care about their own and family members.
· There is decentralization of power.
Female entrepreneur business
Male entrepreneur business
· Business is run for the purpose of earning high growth and acquire high market shares.
· Preferences and needs of consumers are taken into consideration by these ventures and products are made accordingly (Dacin, Dacin and Matear, 2010).
· To get high competitive edge in market is the main purpose of this venture.
· Female entrepreneur have less capability & confidence then males.
· In the process of decision making, females takes more time.
· Communication and team management skills of female entrepreneur is excellent.
· Purpose of these ventures is also similar to female entrepreneurship as it also operates to yield high revenues & growth.
· Changing consumers needs are identified and alterations are made accordingly in goods and services.
· Gaining competitive edge in market is purpose of firm.
· Male entrepreneurs have high capability and confidence level than females.
· Quick decisions are taken by male entr