The concept of entrepreneurship has different meaning. Entrepreneurs is one who takes the innovative ideas from the expertise to start their business with the aim of gain profits. For the successful entrepreneurship they value the money and innovate the new technologies from time to time which will also good for the economy. Entrepreneurship starts their business with small amount and with small business, entrepreneur starts a new company or offer a new product or hire a employees (Andersson, 2011). It signifies the person ability to develop their capacities for attaining their targets. Entrepreneur is the one who takes risk which are emerging in the competitive market. The present report have discussed about different types of entrepreneurial ventures . Further, it also emphasizes on the differences and similarities between the entrepreneurship ventures Along with this, the characteristics of different entrepreneur have been discussed. This report also gives detail scenario about the impact of small business on the economy of UK.
P1 Different types of entrepreneurship ventures and typologies
Entrepreneurship ventures are those entrepreneur who carry the large amount of risk to start the new business in competitive market. They have to manage the risk to achieve profitability by eliminating all the barriers in the global competitive market. These risks can be related with finance, infrastructure facilities, and investment and so on. For the successful entrepreneur, it is essential to overcome all threats and weaknesses (Awogbenle and Iwuamadi, 2010). On the other side, to utilize their strengths and opportunities to start a new business and to get the desired goals within time period. It will help them to retain in the competitive market for a long period of time. These ventures are starting their new business and putting the efforts so that they can operate their activities to accomplish with the goals of the organisations. The following are different entrepreneurship ventures are described as below.
Small business ventures– There are numerous entrepreneurs who start their business with small work. These ventures establish their own business with a motive to gain more profits in competitive market. Here, entrepreneurs operates their business by taking loans from banks, families, friends and hire workers for offering products and services to the customers. (What Brexit means for the UK's small businesses,2017) As it includes many ventures which are doing the business at grocery stores, retail stores or they may be electricians also and many more (Blackburn, Hart and Wainwright, 2013). The objectives these types of ventures are to focus on basic needs such as foods, shelter and clothes. Their main is to build strong image in the minds of customers.
Scalable start-up ventures– These are the those ventures who are establishes by the entrepreneurs and well as they are educated and experience so that they can covered their opportunities to make the profits. These ventures have the ability to gather the resources which will help them to grow the business rapidly. Through this they will attain the special position in the market. These venture hires the specialist person and taking the advice for developing the new products and services which will enhance their sales and retain the customers for a long period of time. The funds are invested by the investor equity and they have confidence that they they gain the large amount of profits from the innovation of products and services.
Social ventures– These types of ventures focus on solving the issues which are faced by the society. They offer new products and services to them so that their issues can be resolved. Their objectives are not related with others that to make the profits but also to make the better place for the people (Burns, 2010).
Large Company ventures– They are the those venture who invest the large amount of funds for providing the new products and services to customers. Their main aim is to establish a brand name and they are required to conduct market research so that they can easily identify current needs of customers. These ventures have to keep eye on threats and have to identify the effective ways to enter into a new market sector without taking the risk.
P2 Similarities and Differences between entrepreneurial ventures
In market there are many entrepreneur who are doing the business in competitive market. Every entrepreneur has having their own similarities and differences which differs from other entrepreneur (The importance of small businesses in the economy,2017). Entrepreneur establishes their business by making profits in competitive market for a long period of time. The similarities and differences are as follows of different entrepreneurs.
Marketing communication– Scalable venture mainly focus on marketing strategies so these ventures can implement the proper strategies and can increase the market shares This enterprise uses different types of marketing components such as social media (Carraher and Paridon, 2015). Small business ventures do not spend huge amount on marketing communication because they mainly depend upon the oral marketing. On other side, large ventures spend huge amount on research so that they can identify the opportunities which are available in market and grab it as quickly to satisfy needs of customers. Moreover, it requires the strong more marketing communication so that they can invest the large amount of funds with the help of employees.
Goals– The goals of every entrepreneur is different from each other. As the goals of small ventures is to maximize the profits and their major objectives is to sustain in the market and to satisfy the basic needs of families. On the other hand, goals of social ventures are to resolve the issues which are faced by the societies (Chittithaworn and et. al., 2011). Normally, these ventures work for the betterment of society and can improve their life styles. Scalable ventures have the goal to increase their market shares in emerging markets by investing some amount of funds in research and to beat their competitors in the global competitive market. Large venture establish their business by offering new products and services to customers and to protect the organisation from the threats of emerging scalable ventures.
The similarities between the small scale ventures and social ventures are to satisfy the needs of customer. They have the skills and capabilities to provide products in good design. They invest short amount of funds at the initial stage because they does not take the huge risk. The primary objective of both the ventures is to accomplish the goals and targets of the firm to sustain in the competitive market. These both ventures are the owner of own enterprises.
The similarities between the small scale and large scale ventures are to start-up business in competitive market while taking the huge risk to operate their business in best manner (Dennis Jr, 2011). These both ventures are formed for the individuals so that they can use their skills and capabilities to attain success in the competitive market.
P3 Impact of micro and small business on the economy
Small business owners are not engage in the new and innovative practices to offer the new products and services to customers. These are the those person who operates their business with a capital less than 1.5 million and includes the machinery, working capital, land and building etc. Micro business have less than employees of small business and they invest the small amount of funds in their business activities (Duval‐Couetil, 2013). These both business enterprises does not contribute in the economic growth and their impact on the economy of the UK is have direct and indirect impact.
Impact of small and micro business enterprises on the economy are as describes below.
Job creation– Small business enterprise has plays a important role in providing the job opportunity to local people. For the economy they are providing the both employment and products and services to people. The jobs which are created by the small business enterprises give an numerous advantage to the economy and to manufacturing and retail sector also. The job creations which are provided by the small business enterprise are higher than the large firms. They are ready to reduce the amount of remuneration and returns when recession take place in the economy (Gabrielsson, Tell and Politis, 2010).
Diversification, linkage and foreign trade– Small business enterprises provides opportunities to those individuals who are blocked in establish a cooperation. Therefore, they provide the new products and services to them. The foreign trade market are providing the opportunities for small business enterprise.
Inflation– The small business enterprises have greater flexibility in adjusting their production of products and services. The products which are provided by the small business there prices are lower and substituted from each other. The business enterprises have important role in the reduction of inflation rate.
Increase in GDP or value added- These business are expected to make a important significant in the contribution to GDP. However, they are having large number of employees and income can affected by in the form of salaries and wages which are paid to employees (George and Bock, 2011). Thus small business enterprises plays a significant role in providing the service in local market.
There are indirect impact which are affect on the economy of UK and these are describe as below.
Change in the business ideas– There are many small business enterprises with a creative and innovative ideas. Through this they can generate a new products and services according to the needs of customers. These organisation retain in competitive market and gain the large amount of profits by attracting new customers.
Support the large organisation– the large organisation can not work and develop efficiently without the support of small business enterprises (Gorgievski, Ascalon and Stephan, 2011). These small organisations are act as supplementary because large organisation does not have this much capability to manufacture all the products which are required by the numerous customers.
These above points are support the economy but they directly and indirectly affect to the UK economy. The SBE's are providing the job opportunity to the people and through this they are decreasing the negative effect which are created by the external authorities.
P4 Importance of small business in the growth of social economy
Small business are vital for the success of the economy. The small business have to set their own enterprises to provide the various opportunities to local people. They are having capability to develop the right skills, initiatives and attitudes which make the growth in the social economy. In UK most of the business are run by the individuals (Hall, Daneke and Lenox, 2010). The employment are important source of these organisations. The following are the some advantages of small enterprises which gives the importance in the growth of the social economy.
Financial supporter – They provide the finance to those organisations who have started their business at low amount. These enterprises are important in terms of the finance. This gives an ability to retain in the competitive market and to explore their innovative and creative ideas so that they can provide the better products and services according to the needs of customers. The financial support are given by the banks for giving a loan for a particular period of time.
Developing personal relations– Small business organisation are making the strong relationship with customers, suppliers and employees. It will improve the social economy as they can ask their issues if the strong relation are there. For the growth of social economy it is important to maintain the strong the strong relations with them. Through this it will improve the skills and knowledge (Islam and et. al., 2011).
Providing the job opportunities– These organisation are are creating the job opportunities for local people. Small business organisation are mainly oriented with the job rather than capital. Small business enterprises recruit those people who supports the economy for increasing the GDP rate and through this per capita of income of the country will be increased. These organisation are using their own contacts to recruit and select the potential candidates which helps them for achieving the business targets and make contribution in the growth of social economy.
Innovations and inventiveness– Small business enterprises are introduce and develop the new ideas for the production of goods and services (Karlan and Valdivia, 2011). This is done because the owners have to not to take the approval from anyone to provide the new ideas. Through this the job opportunities will be created and people can improve their life styles. The managers of small business enterprises are providing the training to new and existing employees which will increase their knowledge and skills to perform the their task in appropriate manner.
P5 Characteristics, traits and skills of two successful entrepreneurs
The entrepreneur is the person who take the risk and invest the large amount of funds with the aim of making the profits at large amount. The entrepreneurs can be individuals or partners who takes all the decisions according to their for the establishing of their business in global competitive market. The entrepreneur have skills and abilities to make the proper business plans for succeed their business. These entrepreneur have the skills to manage all the risk which are associated with the enterprises (Lautenschläger and Haase, 2011). Thus they prefer to start a new business rather than to work somewhere as employees. In today's world, there are two famous entrepreneurs who had given the new name to technologies. These person are Mark Zuckerberg and Steve Jobs. Mark Zuckerberg has launched the famous application Facebook. In this application the people are connected with with a large number of people and they can share their posts, videos and many more. Through this application the people can share their views on different topics. On other side, Steve Jobs has launched the application IOS in which people can search anything. This application is same as the google. But IOS applications are used in IPhone only and introduced the tablet also. The skills, characteristics and traits of Steve Jobs and Mark Zuckerberg are as follows.
Be ambitious– The entrepreneurs does not make the changes by making the small actions. The successful entrepreneurs are are very ambitious about there targets. They know that what they want to achieve in life (Lee-Ross and Lashley, 2010). They set their targets and make the innovative actions and plan to accomplish them with in time period.
Take risk- The successful entrepreneurs are risk taker. They assess the situation in which handle the risk and designed how to maximize the success with the minimizing of risk. The main aim of taking the risk is to gain the large amount of profits. If they are not taking the risk then they can make the profits. Mark Zuckerberg and Steve jobs both are risk taker. They have introduce the new application which have given the new definition that how to use the internet facilities.
Never be satisfied– The successful entrepreneur are never be satisfied what they have achieve once in the life. They are innovating the ideas through and through the year for getting the more success in life (Ligthelm, 2010). They don't stop and take rest on their laurels. Their experiences gives the more success and take the new and innovative ideas for making the next projects better.
The difference between the entrepreneur and managers are as follows.
Basis of difference
They take the responsibility that how to perform the activities in organisation.
Entrepreneur is responsible for all the activities which are performing in the organisation.
The manager get the salary as a reward.
The gain the profits in the form of reward.
They does not take the risk (Naudé, 2010).
An entrepreneur person takes the risk to gain the large amount of profits.
The manager focus on the to manage the ongoing operations which are performing in organisation.
They focus on to start the new business in competitive market.
P6 Entrepreneurial motivation and mind-set
In modern era, the people are influenced by the skills and capabilities of entrepreneurs. They are the those person who takes the risk in competitive market and to make their strong position to beat the competitors. The different entrepreneurs are having difference characteristics which are unique from all entrepreneurs. There are many people who are inspired by the stories of Mark Zuckerberg and Steve Jobs. Through these stories people get motivated and improving their skills so that they can achieve their targets with in time period. Mark Zuckerberg is the person who takes the risk for providing the new and innovative ideas (Neck and Greene, 2011). This person has the opinion that what customers are needed from organisation to satisfy their needs. Mark Zuckerberg is the self motivated person who set the goals with their own. They have also ability to face the problems regarding which they are facing to operate their business in competitive market. On other side, Steve jobs is mind set person who has already innovate the iphone 8 but till now it is not introduces. The mind of this person is set and he his ambitious about their goals that what they have to achieve in life. The people are motivated by the skills and innovating new ideas and skills so that they can also become successful entrepreneur for upcoming the generations (Nga and Shamuganathan, 2010).
The successful entrepreneur have a passion to perform different task in competitive market and with the positive attitudes. If they get the positive results then they ultimately get self motivated. Through this the employees and stakeholders of the company also get motivated in performing their task in appropriate manner. The effective communication is also there where Mark Zuckerberg and Steve Jobs can achieve their targets by taking the feedbacks from the customers. The young generation of entrepreneurs are also get motivated in achieving their targets in best possible manner. Mark Zuckerberg don't miss those opportunities which gives him a huge advantage in his life (Olusegun, 2012). There are numerous people who are motivated by these two successful entrepreneurs and they are also innovating new technologies to get more success in their life.
P7 Examine the background and experience can hinder entrepreneurship
Both background and experience plays a vital role which can foster entrepreneurship. As it develop the skills and knowledge of the people to achieve so that they can achieve their targets with in time period. Generally the background means where the person belongs from the same business. In modern era, if upcoming an entrepreneur is belong from the strong family and face the positive experiences then they will get good or bad learning skills from them (Raposo and Do Paço, 2011). The entrepreneurs sometimes are affected by the new technologies which have to be apply in their business objectives and difficult for them to work in competitive market.
There are some entrepreneurs who are not financially strong but they have this much capabilities to build their own business. They research the market and find out those opportunities which gives them benefits to gain more profits. These entrepreneurs are positive thinkers and they work for the societies in order to fulfil their needs. Mark Zuckerberg think positive at every situations and he has a ability to the problems in appropriate manner. Along with this if the educational background is good then the entrepreneur will also get the family support in order to fulfil their dreams (Sampaio, Thomas and Font, 2012).
The experience of entrepreneur also establish the business in competitive market. If individual is not having the experience then will not able to perform their business functions properly. They have to take the advices from the specialist or expertise which help them to achieve the targets of the organisation. The person have to take the positive from the in bad situation so that he/she will get the good experience. For the successful entrepreneur they does not lose their hope in bad situations. At the different stages of life the entrepreneur faces the bad or good experience. The performance of the entrepreneurs are also get affected by their backgrounds and experiences. Further the success of entrepreneur is depend on their core competencies. If they are more capable to face the bad situation then they can generate the large amount of profits (Scarborough, 2012). The background of the entrepreneur must be good because it gives them a good experience to start the new business in competitive market. If there is good experience then it will lead in to give better productiveness of services. But the bad experience can decline their success and will not able to attain their objectives in appropriate manner.
From the above report it has been analysed in there many successful entrepreneurs and many people are inspired by them to achieve their targets with in time period. It is an opportunity for the upcoming entrepreneurs for taking the advices form the specialist so that they can fulfil their objectives with in time period. The successful entrepreneur have different skills, traits and characteristics which inspired the people.
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