Entrepreneurship and Small Business

This assignment explores the fascinating realm of entrepreneurship and its relationship with small businesses. It examines various theoretical frameworks, including cultural entrepreneurship and social entrepreneurship. The assignment analyzes the role of entrepreneurs in economic development and job creation, while also considering the challenges and opportunities faced by small businesses in today's dynamic market. The provided readings offer valuable insights into these concepts, enriching your understanding of this crucial aspect of the global economy.

ENTREPRENEURSHIP
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Table of contents:
Introduction:....................................................................................................................................3
Task 1: Exploring and illustrating a range of entrepreneurial types................................................3
The different types of entrepreneurial ventures:..........................................................................3
Exploring the differences and similarities between Lifestyle entrepreneurship and Social
entrepreneurship:..........................................................................................................................4
Investigating the different range of entrepreneurial ventures:.....................................................5
Examining the development, scope and growth of entrepreneurial ventures:.............................6
Task 2: Assessment of the impact of small businesses on the economy.........................................6
Interpreting and assessing the impact of micro small businesses in the economy:.....................6
Examining the impact of small businesses on the different levels in the UK economy:.............6
Task 3: Assessment of the key aspects of entrepreneurial mindset.................................................7
Determining the characteristic skills and traits of Elizabeth Gooch and Tom Mercer:...............7
Assessing the aspects of entrepreneurial personality of Elizabeth Gooch and Tom mercer:......7
Examining and explaining the different lines of argument: of characteristics of
entrepreneurship...........................................................................................................................7
Analyzing the characteristic skills, traits and motivational drivers of the two successful
entrepreneurs:...............................................................................................................................8
Task 4: Examining the different environments that foster or hinder the relationships...................8
Examining the personal experience and background to Elizabeth Gooch and Tom mercer:......8
Analyzing the link between entrepreneurial characteristics and the influence of personal
experience and background:.........................................................................................................9
Evaluation of personal background and experience which influences the entrepreneurs
positively and negatively:............................................................................................................9
Conclusion:....................................................................................................................................10
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References:....................................................................................................................................11
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Introduction:
The entrepreneur is a type of person who initiates or starts a business. Entrepreneurship has been
considered as the engine of growth in an economy. It is one of the key factors in increasing the
GDP of the country. The main aspect of the entrepreneurship is the ability to take risks. An
entrepreneur should able to convince the investors about the success of his business venture. The
entrepreneurship also requires thinking out of the box as entrepreneur is required to bring
innovative products in order to sustain in the competitive market. Risk taking, initiative,
creativity and independency are the factors that define the entrepreneurship. In this assignment
the researcher has illustrated and explored the range of entrepreneurial ventures along with the
assessment of entrepreneurship in the small economy. The researcher has also assessed and
determined the key aspect of entrepreneurship and examining the different environments that
hinder or foster the entrepreneurship.
Task 1: Exploring and illustrating a range of entrepreneurial types
The different types of entrepreneurial ventures:
The four types of ventures that are seen in entrepreneurship are:
Survival ventures:
The survival ventures are those ventures that provide basic needs to an entrepreneur as well as
his or her family. It allows a more than hand to mouth existence. The venture may be formally
registered and has no premises but very few assets. In addition there is no relationship of
business banking aspect and generally operates on barter or cash basis. Andersson et al. (2012,
p.16) stated that the aim of the business is to provide for the basic personal and financial needs
so once the costs or the needs are covered there is no interests and capacity to reinvest into the
business. The launch of the business is motivated by push factors of necessity-driven. It operates
in price based, largely competitive and highly differentiated markets.
Managing growth ventures:
This type of business is a workable model of business that seks for a stable growth for a specific
time as seen in the occasional launching of new products, periodic arrival of products in new
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markets, expanding the facilities, staff and locations steadily as well sa development of strong
regional and local brands. Cook (2012, p.20) described that there is an ongoing and continuous
reinvestment in the business but the growth is moderate in region with the ongoing and
continuous development of the business.
Lifestyle ventures:
The business gives a stable income stream for workable owners. In order to maintain the
competitiveness of the firm in the local and regional market the investments are relatively
modest as the firm is embedded. Curtis (2012, p.83) described that the business has premises like
employees and a single location but there is no meaningful growth or expansion of their
business. The number of employees is constant with no increase or decrease whatsoever. As this
venture has a limited capacity it is not easy for it to be successful in economies of operations.
The lifestyle ventures are driven by adventures.
Aggressive in growth ventures:
These are generally technological ventures with the capability of the strong and robust
innovation that generally seeks exponential growth and are funding done through the equity
capital. Dawson (2012, p.551) stated that this venture is driven by the opportunities as the
founder seeks to create in the markets. These entrepreneurs market focus is international or
national. They become the candidate for acquisition or initial public offerings.
Exploring the differences and similarities between Lifestyle entrepreneurship and Social
entrepreneurship:
Risk taking, initiative, creativity and independency are the similarities of Lifestyle
entrepreneurship and Social entrepreneurship. The main differences between social entrepreneurs
and lifestyle entrepreneurs are:
Social entrepreneurs seek investors whereas lifestyle investors do not:
The investors generally want their return in investment no matter what the business is about.
Lifestyle investors generally are not interested to answer the investors about the growth of their
business. Dees (2012, p.119) commented that this leads to starting of that business which has
almost no cost initially. The social investors are in constant wooing of potential investors and the
formation of business plans. The lifestyle investors are not interested in wooing the investors in
order to expand the business.
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Social entrepreneurs want to exit their business which the lifestyle businesses do not:
An exit strategy is the way of exiting the business once the business becomes a valuable venture.
Duval (2017, p.222) stated that lifestyle entrepreneurs have no aim to exit from the business as
they are in the process of creating something simpler in which they can find passion and live the
life just they want.
Lifestyle entrepreneurs are not confined to any location but the social entrepreneurs are:
Lifestyle entrepreneurs generally value their freedom and liberty so they want to run their
venture from any place in the world. However the socio entrepreneurs are limited to one location
as they generally prefer profitable ventures in that location. According to Gilad (2012, p.151),
lifestyle entrepreneurs devise marketing strategy as they prefer to travel all round the world and
hire assistants to do the other jobs.
Lifestyle entrepreneurs want adventure but the social entrepreneurs do not:
Social entrepreneurs want profits for their business as well as for their investors. This requires
freedom of location and sacrificing a huge amount of time to chase their financial freedom. As
per Hisrich (2012, p.53), lifestyle entrepreneurs just want to make money in order to travel
around the world just like playing in rock bands or plain lick back along the beach.
Entrepreneurs donate money in a charity whereas lifestyle entrepreneurs give their time:
Lifestyle entrepreneurs generally create a flexible schedule as that they achy devote their time to
those organizations they care and thought about. Korsgaard and Anderson (2012, p.135)
commented that the social entrepreneurs donate money in charitable institutions as they are
concerned with their social work. When the businesses are in initial stage the entrepreneurs
generally do not pay for themselves but as the business prospers they donate large amount of
money.
Investigating the different range of entrepreneurial ventures:
The different entrepreneurial ventures are characterized by the orientation of time nad the style
of management from the funding sources to the strategies of exit. The survey of the venture
shows that lifestyle and survival businesses constitute 85 % of the ventures in the developing
countries. Kuratko (2012, p.577) argued that however the aggressive growth in the firms and the
managed growth has created a disproportionate creation in the wealth and the amount of job. The
growth ventures is based on the growth is innovation or technology driven or are driven by the
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expansion of locations, markets and distribution. These ventures can embrace the actions of
initial stage of development and act of innovation and creation.
Examining the development, scope and growth of entrepreneurial ventures:
There is a development and growth in the entrepreneurial ventures in the economy. The
substantive growth capabilities give the opportunity to a firm to compete in the market daily. On
the other hand dynamic capabilities create, modify or extend new capabilities of growth. The UK
continues to face the turmoil of economies due to the effect of Brexit. The government is facing
the challenges of reduction in debt and shares in the public sector while increasing the growth in
the private sector. Lounsbury and Glynn (2012, p.545) stated that the levels of entrepreneurial
ventures has increased during the recession but the deterioration in the institutional positions
means that the potential of producing entrepreneurs to enhance productivity has fallen all over
the world. The adoption of legislation and policies as well as the public private entrepreneurship
has helped in the growth of the entrepreneurial ventures.
Task 2: Assessment of the impact of small businesses on the economy (Refer to PPT)
Interpreting and assessing the impact of micro small businesses in the economy:
The economic growth of a country increases with the growth of the micro businesses. The
increase in the micro small businesses lead to increase in the entrepreneurial ventured in the
economy. According to Mair and Marti (2012, p.36), the greater the growth of the micro
businesses the higher is the economic growth as it leads to the formation of businesses by the
entrepreneurs in the favorable business situations. The countries with higher shares of micro
enterprises have showed higher economic growth than those where there is minimum enterprise.
The entrepreneurial ventures facilitate employment and productivity in their business which adds
to the GDP of the country.
Examining the impact of small businesses on the different levels in the UK economy:
Small businesses are generally the backbone of the UK as it drives the growth in many sectors;
open new markets and create jobs. Marchant and Mottiar (2014, p.171) stated that they are the
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seedbeds of innovation as they encourage competition and bring out fresh and new ideas to
challenge the status quo. Small businesses constitute 99.9 % of the businesses and so they must
be encouraged to flourish. The positive economic outlook along with the ambition for growth
will trigger the growth prospects of small businesses. However small businesses needs support
from the government as the UK is stifling growth and its impact is hurting the growth prospects
of the businesses.
Explaining importance of business start ups and small businesses leading to the social
growth of UK economy
A large amount of people on these days is aware of that particular fact the SMEs are recently
rising rapidly in UK. According to Storey (2016, p.45), both 2014 and 2013 a huge number of
start-up business has been growing and this increasing trend shows only one attitude that it is
very difficult to slow down the graph. The basic importance of small and start up business are
employment, industry, turnover and growth, which are helping for the growth of UK economy.
Employment: Usually the small or micro businesses are not proper employers but apart from that small
business continues a huge number involvement of people. Almost 24.3 million that means 60% of
employers are connected to the small business (Atkinson and Storey, 2016, p.60).
Industry: The biggest industries in UK are manufacturing, repair of motors and the retail business. The
small business is directly connected to this thing (Rossini et al. 2015, pp.100).
Turnover: the start-up and small business combined turnover rate almost 1.6 trillion euro in the year
2014, which is a whopping amount. Compared to the private sector, it is approximately 47% same of the
annual turnover.
Evaluating differences between small, large and medium businesses that adds to UK
economy
In UK economy micro, small, medium, large all the business chain play a major role for
upgrading the economic growth and social growth. Especially small and medium businesses are
the supreme for establishing the well economic growth. In business there is every possibility to
gain or loss money in uk many small business could not make a stand rather than that still all
this business are the backbone for the uk economic system.
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Micro business is a business where less than 10 employees are present and the yearly turnover
rate is almost 2 million pound.
As commented by Williams and Martinez (2014, pp.10), small business is a business where less
than 50 peoples are employers and the yearly turnover ratio is almost 10 million pound. This
type of business play most prominent role in flourishing the base of UK economy. In 2016 there
is a huge amount almost 5.5 million private sector job has started up. The increase ratio is almost
97000 with compare to 2015.
Task 3: Assessment of the key aspects of entrepreneurial mindset
Determining the characteristic skills and traits of Elizabeth Gooch and Tom Mercer:
The determination and the creative ability of Elizabeth Gooch help her entrepreneurial venture.
She has the strategic business plan which has helped in the flourishing of her businesses. She has
also able to attract investors and are open mindedness to the technology has helped her to attain
success. Quadrini (2012, p.1) stated that her business has recorded huge margins of profit over
the years. It has also helped in earning the confidence of the investors. Her determination,
independent thinking and attitude has helped her businesses to grow. On the other hand Tom
Mercer is an innovative thinker that has helped his venture to grow. He aims to grow his business
and expand it regionally and internationally. His determination and willpower has helped him to
run the business successfully.
Assessing the aspects of entrepreneurial personality of Elizabeth Gooch and Tom mercer:
Both Tom Mercer and Elizabeth Gooch have entrepreneurial skills and abilities in order to
success in their business. They are driven by the profits and are open to innovation and
creativity. They are technology driven and visionary who can meet the demands of the emerging
markets. The positive feedback helps in the expansion of their businesses.
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Examining and explaining the different lines of argument: of characteristics of
entrepreneurship
The characteristics of both the entrepreneurs are required for the success of their business
ventures. Ridley-Duff (2012, p.291) described that their goals are to provide maximum
satisfaction to the customers by providing innovative and new products as per the needs of the
customers. Though their businesses face challenges in the market but their constant perseveration
proves to be a success in their businesses. They help in creation of new products and to give
facilities to the consumers.
Analyzing the characteristic skills, traits and motivational drivers of the two successful
entrepreneurs:
The latest among the successful entrepreneurs are Mark Zuckerberg and Steve Jobs. Both these
entrepreneurs are characterized by unique motivational and driven factors which have helped
them to be successful in their venture. They possess the aspect of versatility are driven by the
thirst of innovation. Skokic and Morrison (2013, p.157) sated that with the use of their business
skills and visionary business plan they are able to generate huge profits. Steve jobs Apple has
able to remain in the top market position over the years due to its user friendly and innovative
features. Mark Zuckerberg has also innovated the face book features by providing the user
friendly communication features which the customers can enjoy. Their risk tolerance attitudes
and flexibility have helped in the successful running of their ventures. They are also involved in
the charitable donations and all sorts of philanthropic activities.
Task 4: Examining the different environments that foster or hinder the relationships
Examining the personal experience and background to Elizabeth Gooch and Tom mercer:
Elizabeth Gooch is an entrepreneur who has all the required entrepreneurial skills that help in the
flourishing of business. Her open-mindedness and creativity along with versatility in the field of
business has helped in the flourishing of business. Her innovation in the development of website
enables her company to monitor the production process of her company. Her focus on the
innovation of software has helped to earn the confidence of the investors. However her
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stubbornness in approaching venture capitalists has dwindled her reputation among the
shareholders which may affect her business in the long run.
Tom Mercer has the determination to start the new business venture. His constant innovation to
maximize customer satisfaction in view of feedback off the customers has helped his business to
grow. His creativity and visionary plan in order to achieve his dream has helped in earning a
name in the market. His innovation in the creation of website has helped his business to reach
more people who become aware of its benefits of the food.
Analyzing the link between entrepreneurial characteristics and the influence of personal
experience and background:
Risk taking, initiative, creativity and independency are the factors that define na
entrepreneurship. The personal experience of both these entrepreneurs shows that they possess
all the skills of entrepreneurship. They are constant innovation driven and do not hesitate to take
risks. Their independent thought and freedom of choices help them to survive in these highly
competitive markets. They are visionary entrepreneurs who are constantly innovating their
products according to the feedback of the customers and the demand of their customers. Tom
preferred different location for the selling of his products whereas Elizabeth focuses on the
creation of websites to provide consultancy to her customers. Though the ventures of both the
entrepreneurs are different their motivational factors are same that is the constant innovation of
their businesses. Whiting (2012, p.178) stated that these entrepreneurs have a positive effect on
the economy as they contribute to the GDP of the country and are a source of inspiration to other
entrepreneurs. They are the seedbeds of innovation as they encourage competition and bring out
fresh and new ideas to challenge the status quo. They are generally technological ventures with
the capability of the strong and robust innovation that generally seeks exponential growth.
Evaluation of personal background and experience which influences the entrepreneurs
positively and negatively:
The entrepreneurial skills of Elizabeth and Tom have helped them in the flourishing of their
businesses. They are driven by the process of innovation and skill development though they are
profit making ventures. Elizabeth’s stubbornness may affect the business. Elizabeth need to be
open minded to the aspect of innovation. Zhao et al. (2012, p.1570) stated that on the other hand
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the inability of Tom to be visionary may affect the confidence of the investors. Tom needs to
find more location for the spread of his business. They need to be customer friendly in order to
grow their businesses. Tom preferred different location for the selling of his products whereas
Elizabeth focuses on the creation of websites to provide consultancy to her customers.
Conclusion:
This has been concluded that different entrepreneurial skills help in running of business
successfully. The visionary entrepreneurs are constantly innovating their products according to
the feedback of the customers and the demand of their customers. This helps in providing a good
feedback. Risk taking, initiative, creativity and independency are the factors that define the
entrepreneurship and help the business.
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References:
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Mair, J. and Marti, I., (2012). Social entrepreneurship research: A source of explanation,
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