Entrepreneurship is a person who systematize and supervise a commercial activity called business. He presume risk for the purpose of profit and the person who begin and run a business is referred as entrepreneur. Normally entrepreneurship is an activity of starting a new small business with a creative idea(Kirzner, 2015). An innovation in the existing or newly developed product and services are the key to success of an enterprise. Federation of Small Business(FSB) is a organization in UK representing small size businesses. The aim of the organization is to promote entrepreneurial activity through developing an environment for new start-ups.
P1. Different types of Entrepreneurial ventures and their relation to the typology of it.
When a product or service comes in market, people have a dilemma that they should adopt it or not. If the product has some new features or has something which could change market trends people easily adopt it. It is the entrepreneur who comes with that idea of renovating the business. Entrepreneurship is the procedure of developing new which has some value by giving the time and attempts. There are four types of entrepreneurial ventures which are listed below:-
- Scalable Start-up business:- They are dynamic and young in nature and target oriented with aim to develop a new business through their services. Focus of them is on the scale they has setup.
- Social Organizations:- These firms are known for there humanitarian work for the society. They innovate or comes out with products and services which could serve the people and help them develop in any aspects.
- Small businesses:- Small businesses recruit a very limited number of workers and they does not have much high sales. These firms are privately or individually owned.
- Large companies:- Normally these companies have large turnover and invest into a lots of products and services(Drucker, 2014). They admits employees at a large level and their aim is to earn profits and revenues for themself and their shareholders.
Entrepreneurial ventures and types of entrepreneurship that is also known as typology of it share a relation between them. In the entrepreneurial ventures the firms are classified on what type of it and what is their role and on the other side types of entrepreneurship is there that what kind of activity entrepreneurial activity it is. It can be categorized on the basis of businesses, motivation, technology, ownership, area and gender. Entrepreneurial activity work is decided on what kind of venture it is.
P2. Similarities and Difference between entrepreneurial ventures.
Differences(Small and Large Entrepreneurial businesses):- A certain hierarchy in the management of the company is key difference. Small businesses company does not much levels of management. But in the large ventures there is pyramid in the organizational structure(Baum, Frese and Baron, 2014). They does not have much labours so the work is not distributed equally as small scale cannot afford recruiting much employees. In the large companies there is a pool of employees and everyone of them is assigned with a particular duty. At the decision making authority in the small scale is restricted to a fewer people or only to the single person, large firms have a number of people of managers who takes decision because it is difficult for a single person to take all the decision of such vast and big organization.
Similarities:- Aim of these is to create products and services and earn profit. Both has to set a certain goals and targets for the employees.
Differences(Social and Scalable start-ups):- Social entrepreneurial firms are created to serve the society without much thinking of the profits. They change the way certain work is done and tells people how they can solve existing problem by using their idea(Morris, Kuratko and Covin, 2010). These types of companies have aim of maximizing the impact in a sustainable way so that the resources can be preserved. Scalable start-ups are created to get the scalable goal and has aim of growing at a rapid speed. These start-ups have the possibility of creating jobs and employment for the people so that they could impact the economy of the country.
Similarities:- These types of ventures are funded by the government by providing subsidy to them. Both the companies create or influence the economy internally. Such types of enterprises are privately owned.
P3. Impact of Small businesses on the Economy.
Small businesses are the power source of creating employment in UK. There is time when usefulness and the role they play in the economy is underrated as people think they are small and would not create much impact. According to business statistics of federation of small businesses there are about 5.4 million small and medium sized enterprises in UK in the year 2016. These enterprise may create impact on different levels of economy like local, regional, national and international. Increase of large capital firms like retail supermarkets had adversely affected the local businesses and are closed down and some are on the way of closing. Through local businesses there are lots of benefits to the economy at the place they exist. It requires a staff which could perform a range of work as there is much technology used at that level(Bosma and Levie, 2010). Small businesses produce or can provide much locally made goods than the big businesses. There might be some products which are not available in the big market but you can access or could buy those items at local level. Money spent in the local and regional area will flow in the that areas only and the availability of the money will not be effected. At regional level it helps in training the local artisans and the labour and train them in certain skills which would create employment. Small businesses can be handy in growing economy of a country it gives financial freedom and would promotes innovation and would create opportunities for the nation people as its hard for the government to give provide employment in the public sector for all as the scope is limited. This would help governing body in this issue. All over the world young entrepreneur are coming with their small start-ups but they need some platform at which they could implement or set that enterprise. As the technology as improved one could communicate from one country to another this will grow relation between the countries and a business environment will be set up.
P4. Importance of Small Businesses on the growth of Social Economy.
Social Economy is the economic sector which falls between private that is business and public sectors that is government. Normally these companies are the non-profit organization, cooperatives or the charitable trusts. It emphasis on the connection between social behaviour and economies(Dacin, Dacin and Matear 2010). It tests how social standards, laws and philosophies impacts customer behaviour help an economy through using politics, history and social sciences to inspect the results which has power to impact the economy. Companies or the firms which fall in the category of the social economy start or work at ground level normally in the rural areas and at these places there are abundance of small businesses running so these business helps this sector in making people aware about the importance of social factors of the society. In a background areas where lots of resources are present but due to lack of knowledge of social behaviour that area would not be developed so different organization comes there to support people through running some small business and giving them training, skills and promoting their art and providing them employment. Through this activity there will be contribution in the economy of that area or region(Defourny and Nyssens, 2010). A entrepreneur searches opportunities and resources and work on them to create or come out with a innovation which would grow the economy and helping people financially. There might be lots of stakeholder with different vision promoting their art and providing them employment. Through this activity there will be contribution in the economy of that area or region. A entrepreneur searches opportunities and resources and work on them to create or come out with a innovation which would grow the economy and helping people financially. They can teach them certain aspects of managing a business in a limited capital.
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M1. Scope of Entrepreneurship in Private and Public Sector.
Public and private are the areas where business or entrepreneurial activities are carried out. Private sector are the independent on which the direct control of the government is limited and public sector is the place where industries or organization are under control in other words they are government run. Both the sector know the importance of small business entrepreneurship as a single idea of someone could make a large difference but due to lack of funds these ideas are overlooked. So the government should provide certain subsidy and the training of developing skill management to small businesses(Welter, 2011). Private sector has no rules or regulations so the they could go above the limits and this would help small businesses think out of box.
M2. Difference that Small, Medium and Large business make to the Economy.
A business can be small, medium or large all of them create a difference to the economy and every one of them has value in the economy. Small businesses which has less capital and labour would create a less impact on the total economy but as the time progress it expands and become large. Medium business are established ventures which has knowledge of market trends and the variations in it would influence the economy. Large business are the key players on which all economy of the country depends upon, they provide employments to the people in large number and produce goods and services in a big amount.
Every entrepreneurial ventures has roles and functions pre-defined. A small venture might have limited number of set goals whereas large firms would consider big targets. Social entrepreneurial ventures would more focus on developing social skills and will try to solve the issues prevailing in the community those adopting various ideas and techniques. Scalable start-ups in the initial stage pen down the target and according to the strategy they try to scale up that target(Neck and Greene, 2013). All the ventures need to make sure that through their ideas and innovation people could be benefited and have learning experience with them.
Any country depends upon its entrepreneurial activities existing in it. A developing country might lack the natural resources but if they have people or citizens with entrepreneurial skills or mindset they can use those limited or available resources in sustainable way. Entrepreneurial activities will have effect on the economy of the country it would add value to the GDP or the national income of it. At local or regional level small businesses develop new opportunities and provide employment to the people working living there.
P5. Entrepreneur: Characteristic, Traits and Skills.
Entrepreneur is a person who carry out activities of enterprise. He creates the ideas and innovation, and the enterprise is a business firm that is created by entrepreneur to provide goods and services and contribute in economic development(George and Bock, 2011). There are certain qualities combing characteristics,traits and skills a entrepreneur should posses in him. Following are the qualities as follows:-
- Innovator:- He should have skills of doing things differently at regular intervals.
- Dreamer:- An idea which could change the way of thinking of people he should have.
- Passionate:- Person with full of energy and his confidence and moral should be boosted up.
- Risk Taker:- Some goals cannot be achieved without taking risk so they should not fear from taking any risks.
- Learner:- Entrepreneur are advised to constantly keep learning about there business.
- Risk Bearer:- They should be flexible in handling the situation and any risk can results into uneven outcomes.
- Feedback:- Entrepreneur should consult with the people to check or to know how they are performing.
Steve Jobs, Co. founder of Apple company is know as the world's most successful entrepreneur. He came out with a technology which made revolution in the world. The brand value of Apple has highest that the other brands existing in the world(Dacin, and Tracey, 2011). He had qualities which makes him different from other. A entrepreneur does not born with the above listed quality but he has to develop those through his experiencing and learning. Entrepreneurs have a art of observing surrounding minutely and comes out with the ideas and implement that idea as a business plan.
P6. Entrepreneurial Personality and Entrepreneurial Motivation & Mindset.
Personality is defined as the qualities that make certain person's character. There can be various aspects of it like the mental, emotional, physical, spiritual and social. These aspects comes from the mind of the person, it is the mindset of that person which effects those things. Mindset is the thinking of a individual or the belief related to specific thing. A positive mindset brings motivation in the entrepreneur which automatically boosts his confidence and his moral goes high and ask him to do more work. Results of motivation can be seen through the above listed aspects which combine to form a personality of entrepreneur. Other thing which makes or effects his personality is the family upbringing which include his childhood. Parents of the person influence his personality, if he has brought up in the environment where his parents use to fight so this will make him cruel and a hatred will be developed in his mind(Schaltegger and Wagner, 2011). Lifestyle and culture of a entrepreneur is the surrounding he is living in and what beliefs and myths he practices. His likes and dislike or how he respond to the coming situation show his personality. Whenever they has to say something they should be expressive and avoid his introvert nature. He can adopt various tools to improve his personality or to motivate himself and setting a positive mindset. Personal motivation is important as if he will be motivated his enterprise will also be in profit. Entrepreneurs needs to be calm down during the difficult situation and think about what steps further can be taken to overcome that moment.
P7. Importance of Past experience of the Entrepreneur.
A entrepreneur starting a business would firstly plan everything related to the start-up he is initiating, he would first make plans that where he want to setup his business, what goals he is targeted, from where he will get funds and how he will manage it. Before starting any enterprise little bit knowledge of the work they should have. Experience is the ladder for success. A experienced person can easily carry out entrepreneurial activity and they can track all the work easily. Types of education they has attained in the past would increase entrepreneurial experience because if person has education background of marketing, finance or any other he would easily handle the customers need(Martin, McNally and Kay, 2013). The economic circumstances are also play a role any entrepreneur who is financially not that strong would face difficulty in setting up his business and would not easily found the investors who will fund him. Entrepreneur will try to focus on the characteristics and the traits of entrepreneur and if he lacks those qualities he should train himself to get those traits. Entrepreneur should be aware about the risks and rewards of starting a enterprise, through this certain assumption of the future can be made. There might be the chances that he might loose his money or would not get successful so they should be ready with the next plan which can be executed if plan first fails.
M3. Examining the Entrepreneurial Characteristics.
Everybody has some qualities which differ them from one another. But there are some characteristics which is are requirement for a successful entrepreneur. Various theories are give by the social scientists which tell that a entrepreneurship is born with those quality and some says that these qualities, traits and characteristics can be developed or learned(Acs, Audretsch and Lehmann, 2013). Some aspects of the personality are inherited from the birth and a few can be learned through experiences of life. Aim of these characteristics are to get success in the business entrepreneurial activities.
M4. Link between the Entrepreneurial Characteristic and Impact of Personal Background.
These two share a relation with each other as certain characteristics and background are needed for successful entrepreneurship activity. Both the factors are equally important as anyone lagging characteristics but have a strong personal background or experience would not be going too far because those characteristics are must for the success. Economy of the country are influenced with every business happening in the country and has equal importance in the development of it. Small business has a potential to grow faster than the other business because this has reach to every person(Acs, Audretsch and Lehmann, 2013). Other business will impact on the parameter of growth and development of the country.
A motivated person work more efficiently and properly than a demotivated person. He has to adopt certain ways through which he can be motivated and those techniques are achieved through some motivational drivers. These drivers can be in any forms like doing physical activity, listening music, giving incentives, promoting the staff if he has work hard and achieved the task given to him. Characteristics like learner, risk bearer, feedback, passionate are some of these which would assist him in every activity. A entrepreneur might be physical strong but he is mentally weak and are going from depression due to loss in his start up. So to start again he needs motivation for that he regular joins meditation classes and listen music.
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Background and experiences effects entrepreneurs and entrepreneurship, those things can impact both negatively and positively. Person having good background of doing business with the foreign clients will help him in the enterprise he is starting of import and exporting. A entrepreneur recently started with a business of retail stores in which he has kept only organic for sell but people came to know that in past he was involved in drugs scam so this would effect his newly opened store. Because at one side he is selling organic food and on the other side he is playing with the help of the youths.
This is to conclude that the above report of entrepreneurship and small business has focused on various aspects of entrepreneurship like types of ventures based on the area and the social responsibility of the enterprise and similarities and differences between them. In the same task characteristics, skills and traits are discussed. Impact of the small businesses on the economy of the different levels that are local, regional, cultural, nation and globally. Entrepreneurial characteristics, motivation and mindset are mentioned that what motivational drivers are to be used for this purpose.
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- Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
- Baum, J.R., Frese, M. and Baron, R.A., 2014. The psychology of entrepreneurship. Psychology Press.
- Morris, M.H., Kuratko, D.F. and Covin, J.G., 2010. Corporate entrepreneurship & innovation. Cengage Learning.
- Bosma, N.S. and Levie, J., 2010. Global Entrepreneurship Monitor 2009 Executive Report.
- Dacin, P.A., Dacin, M.T. and Matear, M., 2010. Social entrepreneurship: Why we don't need a new theory and how we move forward from here. The academy of management perspectives.24(3).pp.37-57.
- Defourny, J. and Nyssens, M., 2010. Conceptions of social enterprise and social entrepreneurship in Europe and the United States: Convergences and divergences. Journal of social entrepreneurship.1(1). pp.32-53.