Entrepreneurship: A Catalyst for Job Creation and Economic Growth
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Entrepreneurship is crucial in generating employment which aids in developing an economy and reducing unemployment rates. It not only creates job opportunities but also fosters economic growth by promoting innovation, creativity, and productivity.
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Table of Contents Introduction.....................................................................................................................................3 TASK 1.................................................................................................................................................3 P1Explain different types of entrepreneurial venture...................................................................3 P2Similarities and difference between entrepreneurial ventures..................................................4 TASK 2.................................................................................................................................................5 P 3 Impact of micro and small business on economy.....................................................................5 P4 Importance of small businesses and business start-ups will contribute to growth of social economy after Brexit......................................................................................................................6 TASK 3.................................................................................................................................................7 P5 Characteristics , traits and skills of successful entrepreneurs and business managers..............7 P6 Entrepreneur personality reflect the entrepreneurial motivation..............................................8 TASK 4...............................................................................................................................................10 P7 Background experience is create a positive and negative impact on entrepreneurship..........10 CONCLUSION...................................................................................................................................11 References...........................................................................................................................................11
Introduction Entrepreneurship is process to starts a new business firm. Where as entrepreneur is a person who start up new business in current marketplace with some new creativity. Entrepreneur or entrepreneurship both are term is interrelated to each other. He is a risk taker in the hope of gen rating profit.(Baum,FreseandBaron,2014.)He is the person who take initiative to introduce their product in current market place. The term entrepreneurship is beneficial for economic growth and development. He is an individual person who identify market opportunities. Along with that he is responsible for the performance of the organisation. In this report discussion about the scope of entrepreneurship and different types of venture. In this report will learn about role and importance of small business and impact of small business on the economy. Further, in this report has been discovered entrepreneur skills, characteristics and traits differ from the other business managers. ( BridgeandO'Neill,2012) TASK 1 P1Explain different types of entrepreneurial venture Entrepreneurship is process to starts a new business firm. Where asentrepreneur is a person who start up new business in current marketplace with some new creativity. It is a initially being a small business. There are 4 types of entrepreneurial venture:
1.Small business ventures: Small-business means the business which are owned and run by small entrepreneurs. They basically includes grocery stores, hairdressers, consultants, travel agents internet commerce store fronts etc. in this, local people or family members are hired by them for working operations. The main motive of small business ventures is to make profitonly.Theseentrepreneurialventurearecontrolledbythe( Defourny,andNyssens,2010.) 2.Scalable start up ventures : They have a motive behind starting a new venture is that they have a belief that their vision can change the world. They hire the brightest and the best employees in their venture. They start the entrepreneurship so as to change the vision of world regarding scalable start up ventures. (Baum,FreseandBaron,2014.) 3.Large company ventures:large company ventures are those which has established with comparatively higher capital. Large companies have finite life cycles. It has innovations, offers new products that are additional to their new products . It can be more affected by changes in customer satisfaction, new technologies, legislations and also its competitors etc. they can create pressure for more disruptive innovation. 4.Social ventures: These are the form of ventures which have the motive to serve society in context of their needs and wants. It focuses on creating new products and substances that meet the requirements of society. It mainly focuses on to make world a better place ( Bruton,Ahlstrom,andLi,2010.) Furthermore, they are related to typology of entrepreneurship, it means that the various types of entrepreneurship ventures are connected with its typologies. Small business ventures are those which involves small entrepreneur whose main motive is to make profit by starting up small business. They manage it through their family and known workers. On the other hand large scale business are related to more capital investment. Their main motive is to maximise the profits of business. They mainly aim to get higher returns on the products and service 4s that has been offered by them to public .(Dacin,DacinandMatear,2010.) P2Similarities and difference between entrepreneurial ventures. There are various similarities and difference between all above sated entrepreneurial ventures. There are so many similarities in there new entrepreneurial, such as all have wants to generate employment for their firm. Area allocation, effective plan establishment, strategies making , time management, human resource management , directing and controlling all these type of activities are same in various firms.Allocation of manpowerhelps to attain high profitand
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organisational goal. . Resources allocation is also same in different ventures where as some of basic resources which are needed for business associates. Also necessary to basic needs and requirements of existing employees which are beneficial for organisation growth. In new business establishment every one has to need capital investment for their concerning firm. One thing in capital investment for small business capital investment is low or for some big enterprise is high, but in both case capital investment is mandatory for all those ventures. All enterprise want to get their effective promotional acclivities which are introduce their product in current market. So in all these ventures firmspromotionalactivitiesarecreatesimilaritiesbetweenallabovesatedventures.( Defourny,andNyssens,2010.) on the other handthere is some differences in these ventures, on the basis of time all of these venture are work in different times. There is different time schedule for each and every venture. There is also difference in working methods which are aid to create a uniqueness. Entrepreneurhas build a new innovative and creativity in their new business . All those ventures are also established their own working methods and practices to generating high productivity. So in that case working practices will create a differentiation over the other ones. In that situation they plan for a unique strategies and business creativity to develop their new products. Thy ensure that product is totally different from the other market product. Along with that these is differentiation in policies and regulations which make healthy environment. On the other hand one main thing is strategy which are totally different from the other ventures. Whereas, strategies are create a differentiation and it will aid to established a competitive advantages over the other business firms. Moreover, difference in organisation culture and employee behaviours. There is a major difference in ventures is fund raising where social companies make fund from government and other private companiesaregeneratingfundfromfinancialinstitutesandconsultants.( DefournyandNyssens,2010.) TASK 2 P 3 Impact of micro and small business on economy Micro business is generally define as a small-business which help to economy development. There are various tools and techniques which are used in small bushiness and they will create a effective economy development. Small and micro business are plays a vital role for the whole economywhereastheyhelptoimprovingeconomyconditions.(Oosterbeek,VanPraag andIjsselstein,2010.) In small business growth is effective factor which are create a render impact on the economic. With the help of bushiness growth is direct connected to the economic conditions. According to
their small business enterprise entrepreneur has develop their new business and established business growth. So in that situation business growth is laid impact on economy development . Growth aid to increasing their market GDP rate which help to develop their economy condition. (Defourny,andNyssens,2010.) With the help of market growth increasing their brand image of business concern. Brand image is help to create a productivity in marketplace which may affect to economy development. Where as successful business image is laid on economic condition. On the other hand creativity and innovation is also help to economy development. In an organisation improving product effectiveness with some new creativity is aid to develop market growth. In that situation large number of customers will attract those innovative products. Innovation and creativity in business concern is help to develop their economy situations.( Baum,FreseandBaron,2014.) Small business enterprise is hire average skilled people . Which are largely impact on the economy development. In that situation small-business generate large number of employment in their workforce. Those employees are help to creating high productivity and profitability. Which may affect the whole economy of the country. Where as increasing employment is best thing about their concerning country. With the help of hiring procedure in country every one has to equal chance to get their job . So small-business are provide equal opportunities to average skilled people which may help to improving unemployment condition and aid to develop their economy condition. P4 Importance of small businesses and business start-ups will contribute to growth of social economy after Brexit. After Brexit most of the companies are grow rapidly for example companies are able to enhance the volume of their sales and profits . Which means most of the enterprise has enhance their productivity and profitability towards their organisation. It is all because of Brexit where as EU union has separated and but own union which are laid more beneficial for the companies growth and economy growths. After Brexit companies are set their own polices and regulations to under concerning organisation. It will help to create a huge benefits to their business growth. In the initial stage Brexit have also resulted in affected the overall economic growth of UK innegative ways, whereas, it was also predicted by the financial economy expert . (Leutnerand et.al.,2014.) They already concluded all these situation which are facing by the companies.This may includes slow rate of growth, cost of investments in down which are highly affected to the whole organisation growth and economy of UK. Moreover, it is the effort and effective contribution of small business and business start ups. It has been help to the nation easily to reduce all negative
outcomes produced after exit of EU. These micro business starts ups continue carrying out innovations in products and services and directly resulted in maintain the demand in marketplace. Which means companies are able to develop their quality and product range with the help of some market demand and need. In that situation companies are generate all customer informations and needs which can be affected to the organisationbusiness. Along with that investors are enable to provide investments new business enterprise because there is huge risk factor where enterprise only hoping for making profits. Small business are laid to affected economic development. Which can provide a high employment.Small business enterprise is hire average skilled people . Which are largely impact on the economy development. In that situation small-business generate large number of employment in their workforce. Those employees are help to creating high productivity and profitability. Which may affect the whole economy of the country. Where as increasing employment is best thing about their concerning country. With the help of hiring procedure in country every one has to equal chance to get their job . So small-business are provide equal opportunities to average skilled people which may help to improving unemployment condition and aid to develop their economy condition. So in that situation small business have been higher growth and development for the economic growth.Theinnovationinnewproductsandqualitywhichwouldbeaidtoimproving organisational performance and economic performance. (Djankov,andet.al.,2010.) TASK 3 P5 Characteristics , traits and skills of successful entrepreneurs and business managers. The successful entrepreneurhas various new skills and characteristics which are different from the other business managers. Entrepreneur is a person who established a new enterprise along with taking some financial risks . Which means entrepreneur is one who person who set their own business and take risk from hoping of profits. He is innovative and creative towards their working practices. Creativity in strategies are create a render impact on the the whole organisation. It may improving high productivity and create a competitive business environment. It is a informal approach where entrepreneur is take own strategic decision for their concerning team. There are two successful entrepreneur who take initiativeand develop new business enterprise. Ever successful person has their own skills and knowledge which are help to create a differentiation and aid to become a competitiveness. Mark Zuckerberg is one of the youngest entrepreneur who get famous for their creativity. He is more creative and innovate towards their thinking . He has a various quality , such as he is self motivated and daring also. He is a risk taker. A successful innovator is
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seek information from the current marketplace. Mark Zuckerberg also focus on quality of work towards their working practices. He is very hard worker . On the other side Steve jobs is also think innovative and creative . He has a positive attitude towards their work. He is passionate also and he take risk and ready to embrace failure. One big quality of Steve jobs is, he never satisfy with their workingmethodstheyalwaysdevelopmoreandmorefeatureinproducts.Botharethe entrepreneurissuccessfulintheirrespectivefieldanddeterminatetowardstheirworks.( Drucker,2014.) There are the basic difference in entrepreneur and business manager: EntrepreneurBusiness manager In an enterprise entrepreneur has create own rules and responsibilities. Entrepreneur not focus on higher education qualification. He is a risk taker. He always think creative and innovative. Entrepreneur has own income. But some time they face loses. He is the owner of the whole enterprise. They always work for himself. It is a informal approach. Entrepreneuralwaysfocusonrunning activities. (George,andBock,2011.) Business manager who take responsibilities to controlling whole organisation. Manager'smainfocusonongoing operational activities. It is a formal approach. Manager'shavetheirsalarywhichare payable in every month. In an organisation managers keep focus on enterprise objective and goals. Managers have to willingness fulfil their objectives and all responsibilities. Most of the managers are follow the top managementdirections.( Herrington,andet.al.,2010.) Managers are preserving in nature. Managers keep managed whole organisation process and activities. P6 Entrepreneur personality reflect the entrepreneurial motivation. The above successful entrepreneur have a various skills and ability to perform in effective workplace. They all have various characteristicssuch as like self motivation, effective learning skills, effective communication,competitive spirit and passionate towards their working practices. These skills, characteristics and traits are gives the entrepreneurial motivation. Which means these entrepreneur skills are beneficial for whole organisation whereas,in an organisationmost of the
employees are get motivated towards these entrepreneur skills. Those skills are provide effective working environment which are helpful to attain high profit and productivity. In an organisation entrepreneur characteristics are develop their individual moral and working efficiency. In that situation people are motivated from entrepreneur working practices. Individual develop their thing capabilities where they also think out of the basket and do something new for their organisation. ( Leutnerand et.al.,2014.) On the other hand in the organisation get develop vision and social value towards their customers. In that case in an organisation with the help of entrepreneur visionary power, other employees are get more motivative towards their organisation vision and also focus on customer services where they build a healthy relationship. Because customer is a key assets for their organisations , customers has to develop their productivity and aid increasing profitability of whole organisation. Entrepreneur has develop their innovations and creativity in their working methods which are help to create a competitive advantages . And raise maximum profit. In that situation other organisation employees are get inspire from all these working skills and they also do same thing in their concerning workplace. It is also build a strong relationship with the inside and outside the organisation. Whereas, the successful entrepreneur have create a competitive advantage to their workplace environment. So in that situation nobody can beat their uniqueness and competitiveness. This will ad to increasing maximum profitability and productivity. On the same side rest of the employees are doing same thing and they also help to create a competitiveness for the organisation. One more best thing about entrepreneur is an ability to take the risk as well as face big challenges so, they make that mindset and motivate themselves. They take the responsibilities to take some action initially and do something new for concerning organisation. So with the help of this ability otheremployeesare getmotivativeandthey take initiative and dosomething new.In an organisation people are doing some new innovationsin their working practices. This is help to increasing performance efficiency and organisational effectiveness. It will make higher profit and generate maximum revenue. (Leutnerand et.al.,2014.) On the other hand entrepreneur is very friendly and cooperative with other employees. In an organisation, company success is render on organisation staff and management where they all are raising healthy and friendly relationship with each of them. Moreover a successful entrepreneur try to develop a high level of understanding other one's behaviour which are useful for the whole organisation. Healthy relationship with other employees is good thing about the enterprise with the help of that organisation management is very effective and manageable.Whereas every one has understand their other one's opinions and values. They all are respect and coordinate with each one