Entrepreneurship is the process who individually starts their own enterprise along with that they bear all losses and risks by themselves (Blackburn, Hart and Wainwright, 2013). It consider as an dynamic process in order to create wealth by taking higher level of risk in their businesses. It should be in any form such as equity, time, cost etc. Entrepreneurs are having new and innovative ideas which aid them in manufacturing a new goods within the market. Along with this, it is necessary of entrepreneur to be innovative and creative for attracting large numbers of customers. Small enterprise management is the process of managing activities and operations which is organised within the small enterprises for controlling and maintaining it in an proper way. In this report it involve the different types of ventures and its related typologies. Along with this it also analyse the background and experience of entrepreneur which hinder or foster the entrepreneurship.
P1 Different types of entrepreneurial ventures and its related typology
It is similar like a regular enterprise but it is not so. It is an business that is operated by an innovative person as well as they know it effectively that how they can grab the opportunities to produce social and economic value within the business. It is fast in creating wealth with higher level of risk for manufacturing goods and services.
In this, persons starts their own enterprise and operate their business activities with the limited resources. They are only responsible for making new and innovative products by taking all losses and risks by themselves (Bridge and O'Neill, 2012).
- Serial entrepreneurs: In this, person starts their own enterprise in an continuous way and sell it off at the later stage. They are having different kinds of innovative and new ideas with them and funds as well.
- Social entrepreneurs: In this, person mainly concentrate on resolving issues of society rather than gaining profits. Entrepreneurs are very much ambitious as well as capable in handling important social problem which are faced by the members of society.
- Female entrepreneurs: This kinds of entrepreneurs operate entire business which mainly consists of women. These businesses are regulated and owned by female itself. Along with this they are responsible in order to create 51% employment.
It refers as the willingness and capabilities to develop, manage and organise a enterprise venture with taking higher level of risk for earning profits. It is the person who develop and run all the activities of business by themselves.
Types of Entrepreneurial ventures
- Small business entrepreneurship: According to present scenario, there are 6 million small enterprises which are operating currently in the market within United Kingdom. It involve different kinds of enterprises such as travel agents, grocery stores, consultants, electricians and so on. These all are operating their own enterprise with their own profits and risks by themselves.
- Social Entrepreneurship: In this kind of enterprises are operating to give advantages to society by providing them products as per their requirements. They manufacture a healthy goods which cannot give harm to peoples in an negative manner. For example: Ayurvedic products, Patanjali goods are giving healthy items to their customers at cheap rates (Carsrud and Brännback, 2011).
- Scalable Entrepreneurship: These are the business which are created through their strong ideas. This kinds of entrepreneurship are having the vision of changing the world through their ideas. They manage finance from the market along with this they have to convince persons for investing on their ideas.
Relationship of ventures with its typologies
All these ventures are related with the typologies in some or other way such as scaleable entrepreneurship is linked with social and lifestyle entrepreneurship which is linked with managing the growth of venture typology. Their are various kinds of typologies which are connected in an effective way with the ventures which are running within the market.
Types of Topology
- Lifestyle ventures: In this kind of enterprises provide immediate profits to business. They mainly like to work alone.
- Survival ventures: In this kinds of enterprise are started for accomplishing basic requirements of the family. It is a type of small enterprise which are barber store, grocery store, internet cafe and many more.
- Managed growth ventures: these kinds of enterprise are operated by an smart businessman as they know how to earn lots of money. These peoples invest only on those businesses in which they know that their money will not go waste and they will definitely earn profits.TASK 2
P3 Assess and interpret how micro & small business influence on economy
Their are several kinds of enterprises which are organised within the society. It is classified in three different parts which are as follows:
- Micro Business: In this, enterprise are mainly having their one owner. The total numbers of workers are working there are 0 to 9 involving owner. Their are several kinds of micro enterprises which are started the women or youngster. It is a flexible kind of enterprise in which owner work according to its capabilities and skills. In United Kingdom, there are around 5.3 million micro enterprises are operating (Micro and small-business ventures, 2017).
- Small Business: It is a kind of enterprise which is started by an particular person whose purpose is to earn higher level of profits. In this workers range is 0 to 500 only. Each new business is started are involved in small firms. It is a reason that United Kingdom is having more than 6 million small enterprises. These enterprises are responsible for creating 64% of new vacancies of jobs within the last 20 years.
- Medium Size Business: These organisation are categorised in large and small businesses. Medium sized enterprises are somewhere in between there is no official definition is provided for it (Fassin, Y., Rossem and Buelens, 2011). But in some organisations where numbers of workers ranges are from 250 -500.
Influence of economy on small and micro enterprises
Management of micro and small businesses are used to organise a effective research for finding out present trends within the market. It will aid in determining customers requirements and manufacturing goods. Basically, these kind of businesses are categorised on the basis of small and micro according to their numbers of workers, structure and size. Major influence lie within small and micro sized enterprises which are as follows:
Local impact: Organisation within this sector influence on local areas in a large way as they concentrate much on accomplishing citizen demands only. In this, they mainly target the local buyers only at the time of running and establishing their enterprises (George and Bock, 2011). As they provide employment to local peoples which will help in declining the rate of unemployment.
(Source: Local impact on micro and small enterprises, 2017)
Interpretation: In this data, it is interpret that through increasing of small enterprises it will help in declining the rate of unemployment. Micro level enterprises provide employment to 18.9%, small business give job to 23.4% population and medium organisation give 29.2% of employment.
Regional impact: Both the sector of organisation gave a huge influence over societies in an negative and positive way. In this they are accomplishing local persons demands which reflects its positive side of micro enterprises. It will gave negative part while selling goods and services at fixed rate.
(Source:Regional impact on micro and small enterprises, 2016)
Interpretation: According to above graph, it shows that comparison of 2001 to till, micro enterprises economy is increasing at higher level.
National impact: In this, business within small sector are increasing with very fast rate. So, power of earning of them also gave impact on countries economy (Gorgievski, Ascalon and Stephan, 2011).
(Source: National impact on micro and small enterprises, 2016)
Interpretation: According to above data, it shows that GDP rate of United Kingdom increase from 1% to 3.9% from the year 2010-2015.
P4 Importance of small business will contribute to the growth of social economy after 'Brexit'
It is British Team which is also known as British Exit. It is very famous team which is used to discuss the prospective withdrawal of United Kingdom from EU. It was began from 29th march 2017. Here, British people voted for British Exit as well as its chairman was not within the favour of it. At the time of final discussion, Prime Minister gave resign from the post. After the new PM they try to break stereotype within European Union negotiation after the Brussels.
Impact of small enterprises on social economy of United Kingdom
According to present situation of United Kingdom market, it seems that there are thousands of organisations are operating the business in micro and small sector. They give several advantages to UK government for increasing their economy which are as follows:
- Social and economic development: Small enterprises are termed as a powerhouse of economy of the nation. It is analysed that there are 5 Million of small and micro enterprises within UK. They create the vacancies to more than 15.2 millions jobs within UK. It gave a positive impact on United Kingdom.
- Effects on taxes and revenue: It gave a very strong impact on UK by creating job vacancies within the economy. As it generate income within the nation due to that they have to pay taxes. Hence, nation will able to collect higher amount of taxes. It is having a direct relationship with taxes and revenues. If revenue increases then it will gave rise to level of income (Karlan and Valdivia, 2011).
- Improvements on social economy: It is the factor that aid in enhancing stability of income within the UK economy. It will aid in giving them regular income which is lost because of disability, death or retirement. It gave impact on economy at high rate and it still not in BOP.
- Effect on poverty and many others factors: It gave a very huge impact on economy. As if poverty take place within economy then it will gave slow growth of economy. Small firms will aid in declining of poverty rate from the economy by making higher level of wealth and employment within the economy.
P5 Characteristics, skills and traits of two successful entrepreneurs
Starting up of an business is a very easy task but for becoming a entrepreneur is not an easy job. In order to become a entrepreneur they must have some characteristics and skills which are utilized at the time of operating business. Joe Woods and Elisa Mianka are the two successful entrepreneurs and their characteristics & traits of entrepreneur and manager are as follows:
Manager must have a strong vision which aid in guiding workers in an effective way (Neck and Greene, 2011).
Entrepreneur have to make a business successful as well as only having a better idea of business is not enough. It will also require a vision and strategy which are used at the time of organising the activities of enterprise.
It is very essential skills of communication which should be their within every managers. It will aid in gaining trust of workers and their problems.
This skills of communication play a very main role for making a successful business. As they have to communicate the actions and ideas with their workers.
They sometimes delegated their work to its employees. It will assist in accomplishing all the business activities within the limited period of time.
Entrepreneurs have to divide their work among the entire team members. As they do not accomplish the whole work by his own (Schaper and et. al., 2014).
They have to think deeply for understanding the policies and plans which are applied within the market.
They have to do deep thinking about the work they have to perform within the organisation. All their actions and ideas are based on their thinking.
Some of traits of successful entrepreneur like as Joe Woods and Steph Croft-Simon are as follows:
- Joe Woods is very much dedicated for accomplishing their set targets along with this they have to work hard for it.
- Entrepreneur have to be a risk taker due to that only they can able to earn higher level of profits as risk and entrepreneur both are interrelated with one another.
- They must have a higher confidence level within themselves. With this they will able to face any kind of situation within their life (Storey, 2016).
- Entrepreneur should be always ready to grab new things for making a business successful and apply their new learning within their enterprise activities.
P6 Entrepreneurial personality reflect entrepreneurial motivation & mindset
Its importance of entrepreneurial personality within the developing enterprises in an economy. As it is very crucial for every owner to have their personality for organising all the business activities. So, it is necessary to have a better personality for giving a better influence on society. For having a better personality their should have a several skills, traits and personality must be their for becoming a entrepreneur. Their personality aid them in accomplishing all the activities of business in an proper manner. Along with this peoples who are working with them also get effected on their personality (Aspects of Entrepreneurial personality, 2017). For examine the traits, it involve the 5 types of personality which should be their within every successful entrepreneur which are as follows:
(Source: Five types of personality)
- Openness to experience – It indicate the intellectual thinking, degree of creativity and innovation within the person. Along with this it also describes the stage to which a people thought must be dependent and imaginative. So , it is rightly said the entrepreneur should be open minded for learning something new and innovative as well.
- Conscientiousness – In this personality, entrepreneur must be efficient and effective within the work as well as it is also self-conscious about meeting the targets. It will aid in meeting their purpose within the given time (Unger and et. al., 2011).
- Extraversion – In this factor, which show that entrepreneur should be social and energetic on their work. It possess all the qualities for becoming a successful entrepreneur. .
- Agreeableness – It shows that entrepreneur must be good in its nature along with that it should be trustworthy and cooperative also. So that their employees should believe on him.
- Neuroticism – This personality shows that the person have to be focussed and calm. Along with this it will aid in accomplishing their work within the time period.
Entrepreneur's mindset – For a person it is required to willing for desired success. Therefore they needs to make changes in their risk taking approaches that assist them to attain new success for described targets. In this procedure their responsibility always reflect what they thinking for. Through this they can attain higher success because it defined their skills and working capabilities.
P7 Examine experience and background can foster or hinder entrepreneurship
Entrepreneurship is an main components that fully depends on capabilities and skills of an entrepreneur. It will aid in achieving personal experiences, educational details, background etc. Their are certain components which gave influence on abilities and power of individual which are as follows:
- Family Background: It is very important factor as it give effect on entrepreneur thinking which is very different from others. It will gave high impact on decision making of an person. Both Joe Woods and Steph Croft-Simon are from different family background.
- Nationality: In this, it shows UK culture. Joe Woods is from North Vandergrift, pennsylvania. It is a successful Information Technology business and Elisa Mianka is a founder of online shopping websites from Africa.
- Social Network: It is very main factor as it gave directly impact on communication and community system. These social networks are used by Joe Woods and Elisa Mianka life in proper manner (Welter, 2011). It consists acquaintances, friends, family members etc. that shape the style of taking decisions by entrepreneur.
- Education: An individual is influence highly with their opinions and thoughts at the time of pursuing educational life as it form persons personality. Education help entrepreneur in enhancing their knowledge according to their studies which aid in making innovation or new goods and services in a very different way.
Hence, it rely on the education, family background, social network and style that how an person will take decisions as per grabbing proper use of opportunities. Therefore, entrepreneur is having a positive family background it will help in taking effective decisions. On other side, the negative and worst background of friends & family will lead to bad decision making for an business which will demotivate their employees.
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As per above report it has been concluded that small enterprises play a very main role within the economy by supporting status of economical with taxes. An entrepreneur's personalities re basically defined on the basis of their mindset and working tactics. This report described understanding of differences and similarities within all the ventures. In this there are various types of entrepreneurship ventures which are Small business, Social and Scalable Entrepreneurship and its relation which different typologies as well. Brexit is an important decisions for UK that inspired from several enterprise opportunity of their work within the nation. Individual person are performing their methods, ideas and concepts which is not introduced before. Instead of taking stress over failure and success probability they should learn with their motivation and experience gained by themselves. By managing effective structure, informations and plans which achieve the desired results as well as success. In this also understand five types of personality which should be their within the entrepreneur and also their characteristics, traits and skills.