Any individual who creates and comes up with new ideas and transforms for all the economic benefits along with related risk is known as Entrepreneur. Any individual who is associated with new activities, generation and ensures that all acts are done or not. Basically the process for discovering many ideas and ways for combining resources to get the market value. It involves the undertaking of a business activity which gives monetary and non-monetary advantage to all industrialist. Generally entrepreneurship produces opportunities for employment. Every entrepreneur requires time to pass on or share the workload so how will employ many new talent for his organisation. Whenever he gets satisfied with his investment then he will start the business and that business will requires more employees so this will create more employment opportunities. In the present report, the types of entrepreneurial ventures and its relation with topology of entrepreneurship is explained. The differences and similarities between each entrepreneurial venture has been described. The statistic related to small medium and micro enterprise which contributes to the economy has been stated in the following report with the importance of small businesses and start-ups in the growth of economy. Qualities of successful entrepreneur are been illustrated with their personal traits. And brief description about the entrepreneurs are made not born with the justification. The aspects of Entrepreneurial personality reflect the entrepreneur mindset. The success story of Laurence Graff has been explained in the report.
P1. Types of Entrepreneurial ventures and typology of entrepreneurship
Entrepreneurship is a capacity and willingness to develop a new business in the market to earn profit. The person who create this type of businesses are called enterprises. Entrepreneurial venture is an organization where the innovation can establish into an opportunity and its produce economic or social value. Their re four types entrepreneurial venture that are:-
- Small business entrepreneurship
- Scalable startup entrepreneurship
- Large company entrepreneurship
- Social entrepreneurship
In small business entrepreneurship include grocery stores, general stores, hairdressers, consultants, electrician etc. And they are those who run their own business. In this type entrepreneurship the entrepreneur collect the funds by their family, friends or small business loans. In this venture they hire local employees or their family members. In salable startup entrepreneurship the entrepreneurs start business knowing from day one and their vision for earn profit could change the world. In this venture they hire best and brightest employees for their business.
In large company entrepreneurship they use new techniques in already exist business. They offering new products to their customer. It requiring large companies to introduce new products to the new customer in a new market. Social entrepreneurship are focuses on creating products and services according to customer need and their taste. Their goals not to take market share. This type of venture goal is to create wealth for the customer.
There are four typology of entrepreneurship these are:
1) Independent entrepreneurship
2) Grassroots social entrepreneurship
3) Corporate entrepreneurship
4) Social entrepreneurship.
In independent entrepreneurship the entrepreneur free from any organizational foundation. They set their own rule and work on it. The second type is grassroots social entrepreneurship includes social values which is undertaken by individuals. It includes community leaders to implementing initiatives efforts to provide better services. In corporate entrepreneurship the entrepreneurial activities working in a corporate environment. In this transforming the ideas and renew the strategies to build the organization. And the last social entrepreneurship the organization not to be corporate structure it may also be include government agencies and universities.
Entrepreneurship venture is related to different types of entrepreneurship. The main scope of entrepreneurship is for small business it provides good scope and opportunity for selling their services in the market. The entrepreneurial main characteristics is they achieve their goals by their innovation and the use of new techniques. Any small business entrepreneur can achieve better results in terms of earn more profit. There is a wide scope in agriculture for an entrepreneur. The government also give priority to agriculture programmer.
These are analyzed as individuals which are working in organization and provided charge of undertaking various innovations in products, service and processes,
Entrepreneur are analyzed as those individuals who established their own business on the basis of new and unique idea.
They perform their task by using organization resources
They always establish their business on the basis of their own capital.
They are usually dependent on organization.
P2. Similarities and differences between entrepreneurial ventures
Entrepreneurship is capacity and willingness to organize and manage the business venture along with the market risk and to earn more profit. Entrepreneurial is characterized by risk taking and innovation and it is the part of changing the world through new ideas and innovative techniques to run a business. A business emphasis on idea involving a product, service, process, or new technology to earn maximum profit. Entrepreneurial venture have 4 types. They all have some similarities and differences between each other. Small business entrepreneurship is related to small business it includes general store, hairdresser, tours and travels, grocery store, food vendor. Their main role is to run his own business in market and to earn maximum profit and scalable startup entrepreneurship vision is to change the world and by their innovative ideas. They run their business on social media and earn maximum profits.
Large company entrepreneurship include new technologies in existing company. In social entrepreneurship focuses on fulfilling social needs. Small scale entrepreneurship main objective is to earn profits by making on its own rules and scalable startup entrepreneurship objective is to earn more returns to expand their business worldwide. In large company entrepreneurship uses innovative idea to run the business. It creates competing environment to other large company. Social entrepreneurship main aim is to make world a better place. Entrepreneurship venture is differed by its characteristics. In small business entrepreneurship, there are no restrictions for entrepreneur. In scalable business, entrepreneurship has restrictions like social, political. In a large business entrepreneurship the organization expand their business small to large level. In Social entrepreneurship the entrepreneur depends on social fulfillment.
Small business entrepreneurship hire their family members to run their business. Scalable business entrepreneurship hire only brightest and best employees. Scalable entrepreneurship based on business which is done on social media like Facebook, twitter and Instagram. This type of entrepreneurship have more risk rather than small business enterprises. This type of entrepreneurship increase their revenue without addition of any cost. Large company entrepreneurship evolving consumer needs and new ideas. Social entrepreneurship are non-profit companies. In this entrepreneurship entrepreneur extend their business depends on impact of society by enriching their tools and resources. So the main similarities between these ventures is to earn maximum profit by their businesses.
P3. Statistics related to SME in economy
The people of small business world are aware about the fact that micro and small business have huge impact on the economy. The record of start-up has been setup by UK in previous year and the increasing trend is not giving any signs of slowing. Many people's attitude about UK that there is not any better time to do business but in actual country needs small business to thrive or sustain in the healthy economy. Small medium enterprises are most important part of UK's economy. In Organisation of economic Co-operating and development, Small medium enterprises plays huge role in economic growth and it is also the origin of new jobs. In The enterprises of OECD are mostly SMEs, over 95%. 60% - 70% of employment are created in many countries. The big firms always tries to make them small and functions are mostly outsourced, proportion of SMEs is increasing day by day. Along with this, economic and productive growth is highly influenced by competition as the characteristic attribute in death and birth, smaller firm's exit or entry. It leads to huge turnover and it churns the labour market that is structural change and competitive process. In regional economy, there is requirement of proper business environment and support and services which helps them to attract networks, human capital, financing and markets.
SMEs are vital in employment and Gross value added, in countries like Norway, Denmark and Finland. 43% of Gross value added in Germany is created and in aggregate it gives employment to 34% of total number of persons by SMEs. Huge proportion of the aggregate growth is made by small medium enterprises can be characterised to some SMEs which are dependent. SME's adds high proportion in service sector. In 2009 and 2013, there is rise of 47% small business and that is correlated to UK's economy growth. When UK was in recession, small medium enterprises gives it major significance for lifting up. 46% of revenue of SME comes from retail, manufacturing and maintenance of motor vehicles and many small start-ups fall in these three category. SME of UK had a great relationship with the economy of the country, SME also gives it contribution to economic health and facilitator for small and micro start-up business growth is been given by current financial climate of UK. Small businesses are very important especially in UK's economy. SME has most essential role for regional, local and international economy.
P4. Importance of small businesses and start-ups in economy
Small businesses and start-ups keeps our economy growing. SMEs has a major role in national economy all around the world, which generates employment and value added and gives huge contribution to innovation and these gives efforts to sustain in environment and for more growth. SMEs create job opportunities in all sectors and gives employment in broad segments like labour force which includes workers who are low skilled and gives opportunities for developing skills. They give morale support to their employees like gives access to health care and many social services. SME which generates jobs and add value are an important medium for poverty reduction and inclusion but usually not in emerging and low income economies. In the same series, small business get its productivity in a large population which includes informal economy and traditional segments and also helps in achieving a good growth in economic and social growth objectives. The quality of jobs are improved for less skilled workers. For example; In 2014 France’s social economy is accounted for 10% of GDP. Belgium, from 2008-20014, employment of social enterprises got rise by 12%, in 2015, 17% of aggregate total private employment. In 2015 in UK, 41% of social enterprises had provided jobs compared to 22% of SME. Small businesses creates competition, it gives preference to local people and even also migrants. They have more flexibility and can be started by anyone who has talent which creates diversity and many start-ups fail for turnover concept but if they pass on this concept then they will be extraordinary stable and contribute to the economy.
Corporate social responsibility is also viewed as businesses in many countries that also includes SMEs, to give its contribution to societal goals. Entrepreneurial opportunities can also signifies the important medium for social participation and creating upward mobility, by marginalised groups who includes women, young generation, migrants and seniors. Disabled and ethnic minorities to create their own path or opportunity to be a part of economy. Start-ups and small business are thriving the economy and they are very important for the economy. If they will not create the opportunities then the yearly growth of employment will be negative. In the period of recession, many people start their own companies because at that time they cannot do anything else and many start-ups are actually at extraordinary level. Small businesses gives contribution to local economy also as they bring creativity and growth to the place or community they serve. Workers who are not employed by large corporations are also taken to SME.
P5. Successful Entrepreneur with examples
Entrepreneurs must be able to understand that traditional and modern businesses are much more similar to each other. They should give proper focus on profitability and revenue on the context of business. They should have ability to think about long term plans as well as short term plans with the focus of failing fast and growing rapidly. Things should not be contradictory to vision for growth perspective. They should plan the strategies of business in very innovative manner. For example: J. K. Rowling received the award Order of the British Empire. The characteristic strait which made her successful are goal oriented, dreamer, resilient in the sense that she always managed to grow and move forward along with many difficulties in her life. Another example of successful entrepreneur can be James Dyson whose traits is he used to focus and concentration, he was always stuck with the huge ideas and always tries to overcome obstacles. Every entrepreneur should have the basic quality that is great salesmanship, as sales is the lifeblood of every business and must have the willingness to take risk.
Entrepreneur are made not born, the main characteristic of an entrepreneurship is innovation which cannot be obtained by birth. It comes from the opportunities, whenever problem is occurred and opportunity is raised. Many years ago, there were no software in the computers and Bill Gates started his entrepreneurship from building first software i.e. window. The next quality which is required by an entrepreneurship is experience, which also does not come naturally. Knowledge is also required and it is also not inborn but it is gained from education. The best education is experience which every entrepreneur have. Good sense of dealing with communication and people is mandatory for an entrepreneur. Apart from communication, knowledge, experience and innovation many more qualities like passion, integrity, teamwork and leadership are also necessity. Everything is needed to learn, nothing is inborn so proper training, practice and concentration is required.
P6. The way personality reflects entrepreneurial motivation
Entrepreneurial mindset is very high dose medicine for curing the danger of getting bankrupt. Many families don't pay perfect attention to the dynamic of human as there is need to pass communication and openness towards change in the own families.
Family upbringing- The leader of the family must have the idea that how it can prepare its future generation to how to hold the stick very skillfully. Entrepreneurship helps to keep the human capital of family very strong by developing very strong relationships with family. The benefit of the mindset is willingness to identify the possibilities in others idea rather than the barriers or obstacles. Solving own problem is very valuable skill of life.
Cultural- Social factors, religious factors and cultural factors influence the individual by going with the career of entrepreneur. It is the origin for creating exclusive in business enterprise. It gives support and tries to deal with issues which every entrepreneur faces day to day. Culture is the only way of thinking of mental programming which refers to an idea which are properly attached with societal values and norms.
Lifestyle and peer group- The main source for social interaction to develop entrepreneurial intention is peer group and lifestyle. The main intention of this interaction is to develop new ideas and to help in finding some new opportunity or to create some opportunity. Peers helps in sharing the knowledge, experience and some creative ideas.
Personal motivation – In personal motivation, you should always have the ability to think or to motivate from inner capabilities like positive actions are required for success. Opportunities should be grabbed on time and overestimation of yourself should be avoided. Being accountable for each and everything and willingness to acknowledge it. The reason for starting business should be always kept in mind to motivate yourself.
P7. The way background and experience can foster or hinder entrepreneurship
Entrepreneurship could be fostered through different business skills, economic development, culture, type of education and technological development. The areas which had huge presence of these factors then it would be transforming strong and consistent growth. There are various cultural values and practices with reference to each society helps in influencing individual's action. In the same series, if background is similar then it would be creating innovative ideas by observing expertise. Further, education enables for understanding the outside world with appropriate skill and knowledge for dealing with regular problems. Entrepreneurial growth has basic need for appropriate motive such as profit making, accomplishing social status and prestige acquisition.
For example: Laurence Graff is known as King of Diamonds
His birth is from Jewish family in which his mother was from Romania and his father was from Russia. His background was from Jewish family only so he expanded his own family business, so his entry in this sector was not so difficult. As he was having a complete knowledge of the market and the skills which were appropriate for running the whole organization. At the age of 15, he left school for working as an apprentice jeweler. After that he left that job as soon as possible and began apprenticeship with some other jeweler. With this he got an exposure to diamond market that helped him to understand the requirement of market. At that time he learned about cleaning and repairing the jewelry, crafted small pieces and after this completion of his apprenticeship. His lifestyle was completely different from other normal adolescent as he was focusing on innovative ideas to introduce in that particular market. He was already focused upon conducting business and got a family support that motivated him a lot for becoming an entrepreneur. His upbringing was very unique as he was allowed for getting an exposure to work in early age only. This made him to become more practical and analytical for taking different kinds of decision. Economic status of his family was not so high. Therefore, his family supported him for working and later starting a business in same field. As being a creative mind and quality conscious person, with the support of society and his customer he became one of the famous diamond merchant. declared that he had improved and modified the quality, color and polishing it again. Net worth of $5 billion is owned by the wealthiest Jewelers in the world and even in England. In this way Laurence Graff became one of the most successful Entrepreneur of United Kingdom and world. Apart from that, he was a far visionary which helped him to make effective decision regarding business and helped him to formulate strategies in order to successfully compete in market. Economic circumstances at that time was very supportive for a diamond merchant therefore it helped its commercial trade to foster tremendously in the time span of his business and also provided the trade a significant maturity.
To achieve great success in business practices, it always requires entrepreneurship and most essential one is innovation. This report has given an overview of innovation, knowledge, skills and entrepreneurship relevant to any business, whether it is small, micro or medium enterprise or it may be a start-up. It discusses about the reflection of entrepreneurship in the growing economy and how it is creating opportunities or employment in the economy. Innovation and entrepreneurship are used for nonprofit or any profit ventures. It can be also recognized as change, responsibility and better use of resources. Though entrepreneurship is a mindset, attitude and how it takes any approach for doing things. Successful entrepreneurship always requires innovation and creativity for addressing any new opportunity in other way.
- Gars, J., 2011.Moving ahead. Fores.
- Savlovschi, L.I. and Robu, N.R., 2011. The role of SMEs in modern economy.Economia, Seria Management,14(1), pp.277-281.
- Doh, S. and Kim, B., 2014. Government support for SME innovations in the regional industries: The case of government financial support program in South Korea.Research Policy,43(9), pp.1557-1569.
- Lesakova, L., 2012. The role of business incubators in supporting the SME start-up.Acta Polytechnica Hungarica,9(3), pp.85-95.
- Altinay, L. and et.al., 2012. The influence of family tradition and psychological traits on entrepreneurial intention.International Journal of Hospitality Management,31(2), pp.489-499.