Explaining Entrepreneurship and Its Characteristics

This assignment provides an in-depth analysis of entrepreneurship, including its definition, characteristics, and importance to the economy. It also discusses how background and experience can affect entrepreneurial success, citing examples of successful entrepreneurs who have overcome obstacles to achieve their goals.

ENTREPRENEURSHIP

INTRODUCTION
The word “Entrepreneurship” can be describe as a process of launching, planning and
running a brand new business in the market place. The person who come up with an idea of
establishing it is known as “Entrepreneur'. In simple words, it can be define as an activity of
opening a new company and taking financial risk in the hope of making higher profits as well
(Abu-Saifan, 2012). According to Schumpeter, “an entrepreneur is a person who has the
potential to convert an idea into successful innovation that ultimately provide benefit to society
and its members”. In-fact they are significantly contributing towards country's growth and
development
The primary objective of given report is to determine how different range of
entrepreneurial venture assist in maximising GDP of respective country. It also covers the
influence of SME's on overall UK's economic growth, skills and traits of successful
entrepreneurs and lastly discuss how background of successful entrepreneur foster
entrepreneurship.
P1 Illustrate different range of entrepreneurial venture
Entrepreneurship can be describe as the process of establishing and running a brand-new
business enterprise which is principally small at its initial phase in terms of size (Welter, 2011).
Basically it define the willingness and potential of an entrepreneur who develop, manage and
organize a venture along with any sort of risk associated with it in order to make a profit. It
combine key factor of production namely land, capital, resources and labor and convert it into
business opportunity that results in generating higher profitability ratio. Discussed below are
various range of entrepreneurial venture:-
 Small-Business Entrepreneurship: Today large number of start-ups and entrepreneur
(approx 5.7 million) in United Kingdom are still small scale business. They constitute
99.7% of all businesses and provide employment opportunity to near about 50% of all
non-governmental workers. Some of its example include hairdressers, grocery store,
travel agents, plumbers, electricians etc. They are the one who runs his/her own business
and involve family member or local employee for further assistance (Barringer, 2012).
Their meaning of success is to earn sufficient amount of profit to feed its family
members. Such types of venture are usually funded by family members or by taking
small business loans.
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 Scalable Start-up Entrepreneurship: In this type of entrepreneurial venture,
entrepreneur launch a new business venture considering the fact that their vision has the
potential to change the world (Abu-Saifan, 2012). It means they come up with an unique
idea and searches for repeatable and scalable business model that turn company into
profitable one. They attract investment from pool of venture capitalists which are equally
crazy as they are.
 Social Entrepreneurship: They are the one who focus on producing such goods and
services that solve various problems and needs prevailing in a society in an effective
manner (Baum, Frese and Baron, 2014). Their main objective is to make the nation a
better and good place to live rather than attaining high market share. They mainly deals
with issues such as illiteracy, poverty, health care that possess direct impact on economic
condition of the country.
 Serial Entrepreneurship: Such types of entrepreneur takes challenges on frequent basis.
Constantly, they come up with an innovative idea for starting a new business venture and
play key role in managing its day to day function and operations (Wiklund and et. al.,
2011). Once the idea is actually executed, they give responsibility to someone else and
move on to generate new idea or venture. Mostly, they referred as founder of the
company.
 Female Entrepreneurship: In this type of entrepreneurial venture, a new business is
created by female entrepreneur (Barringer, 2012). In-fact they organize all factors of
production, provide employment to others and undertake risk. However the definition of
this can not be differentiated on the ground of sex rather it allude how a brand new
organization is set by female with its potential and skills.
P2 Explain the similarities and difference between entrepreneurial ventures
Each business enterprise possess some distinct characteristic which makes them unique
from others rivalry firm but at the same time there have certain traits which makes them identical
in respect to other organization (Dacin, Dacin and Tracey, 2011). Discussed below are some of
the key similarities and differences that between different entrepreneurial venture:-
Lifestyle Business venture
Similarities
 Their aim is to generate higher profits
Serial Business Venture
Similarities
 Main objective of serial entrepreneur is
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so that they can enjoy rich and luxury
lifestyle.
 They believe in hiring skilled and
competent personnel who contributes
significantly towards achieving
business goals and objectives.
 Focus on capturing high market share.
to attain high competitive edge in the
market place and yield higher profits.
 As both business venture is having
identical objective, it is also equally
important for them to recruit and select
most talented and suitable candidate for
the venture (Dacin, Dacin and Tracey,
2011).
 Laid stress on expanding its
maximising customer and market base.
Differences
 Not updating venture capitalist
regarding growing stage.
 Centralisation of power
 Practice business operation all across
the globe
Differences
 Every single detail is share with
financial investors
 Decentralization of power
 They can practice their business
operation in certain countries
Female Entrepreneurs
Similarities
 Mainly emphasize on attaining high
market share and profitability ratio. Alter product or services as per
consumer requirement or needs.
Male Entrepreneurs
Similarities
 Focus on generating higher profits and
revenue
 Critically examine the needs of target
consumer and offer goods and services
accordingly.
Differences
 Decision making process is slow
 More conservative when it comes to
take financial risk
Differences
 Quickly takes business decision
 Willing to take financial risk
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TASK 2
P3 Impact of small business on economy
Various types of business venture in the form of small, micro and medium exist in the
market that help an entrepreneur to set up or begin new business venture. In UK, majority of
business are still small scale business that are contribution effectively towards economic growth
and development. Following are the influence of these enterprises on UK economy:-
Micro Business: Such type of enterprises are overseen by single individual with a point of
sustaining the necessities and want of their relatives (Drucker, 2014). Sole-Proprietor build up
such sorts of business with a motive to fulfil its fundamental needs and desire. Such firms require
less capital and its authoritative structure is additionally adaptable due to low inclusion of
individuals.
Small-Business:- These kinds of business venture generally operate in local economies. These
are possessed and overseen by either single individual or by accomplices. Their manpower is
lesser when contrasted with large scale organizations. It is comparatively much easier for them
to distinguish the preferences of target populace with the goal that they can modify goods and
services according to their necessity (Baum, Frese and Baron, 2014). It is somewhat troublesome
for a solitary individual to run the firm exclusively, thus it is preferable to run such enterprises in
partnership. Their principle objective is to acquire huge incomes and benefits keeping in mind
the end goal to complete its everyday task in an adequate way.
Medium Business: These kind of business concern works on immense level when contrasted
with small or micro enterprises. Their fundamental target is to yield higher gainfulness
proportion and holds focused position in the commercial center when contrasted with its
opponents. They employ manpower close around 300-500. All partners have parallel rights on
organization's benefit and on loss consistently. Equal consent of all partners is taken into account
while formulating company's decision and strategies.
Following are some economic area that is highly affect these enterprises:-
 Employment: Small & medium scale enterprises provide large number of job
opportunity to individuals who have less learning and capability (Drucker, 2014). Their
primary goal is to employ people of rural areas which leads to improve its standard of
living. In-fact they recruit personnel on the ground of competency and skill instead of
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educational qualifications (George and Bock, 2011). Undoubtedly, SME's is contributing
near around 40% in the overall growth and development of country.
 Foreign Direct Investment(FDI): Under this, firms of home country welcomes
different nations with the goal that they can set up their business activity in their nation of
origin. Their min motive is to create large benefits for the nation that ultimately leads
enhancing its economic situation and standard of living.
 Rural Areas: By giving various employment opportunities to population of rural areas,
SME's posses strong market share in market of both rural and urban area. In addition to
that they also arrange adequate training and development session with an aim of
improving their skills and efficiency (George and Bock, 2011).
 Enhancing Adaptability: In today's competitive world, needs and wants of clients are
changing often-times which empowers SME's to alter their item and administrations
according to the changing needs and prerequisite of target client (Grimaldi and et. al.,
2011)
P4 Contribution of small business and start-ups towards growth of economy
Both small scale and start-ups contributes tremendously in the development &
advancement of nation. In United Kingdom, small enterprises are developing quickly which
comes out to be helpful for the economic system as these companies are primarily accord 40% in
overall economic growth & development of nation. Brexit negatively affects the whole working
of SME's exist in United Kingdom. Just about half of the UK business is producing benefit from
majority of start-ups and small scale. Some of its significance on nation's development & growth
are as follows:-
 Employment: Start-ups and small companies give ample employment opportunities to
vast number of individuals. They are known as Job Creators who creates immense job
opportunities for rural and urban people and contributes in improving the efficiency and
skills of these individuals (Grimaldi and et. al., 2011). In excess of 25 million of UK
individuals are currently employed under start-ups and small-scale enterprises.
 Turnover: It characterizes total sales cycle of the organization over a period of time. The
aggregate sales proportion of the country is 1.8 trillion euros in which small firm & start-
up are colossally gives close around 48% which is nearly half of aggregate turnover of
country.
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 Exports: Today each and every industry is trading or exporting their goods in market of
other country. They are for the most part doing this for attaining high market of other
country as well. As a result, overall revenue of home country increases. Presently, the
number of total United Kingdom trade is 408.9 billion in which both start-ups and small-
scale are contributing close around 15% (Kuratko, 2016)
 Growth & Development: It can be computed as number of employed work force under
these companies. This is just conceivable when organizations renders immense openings
for work to nation's occupant. In United Kingdom, both start-up and small-scale are
giving expansive number of chances to huge individuals which is helpful for its
forthcoming growth & development.
TASK 3
P5 Characteristic, traits and skills of successful entrepreneurs
An “Entrepreneur” is an individual who with his/her imaginative abilities and learning
build up an entire new company alongside different sorts of risks associated with it, in the
expectation of returning higher benefits and incomes. For making business idea successful, they
are working with strong determination (Martin, McNally, and Kay, 2013). Such kinds of
business person have a solid internal drive which is consistently motivating & stimulating them
in terms of accomplishing their goals adequately. Bill Gates and Jeff Bezoz are two famous
example successful entrepreneurs who have made history with its special and imaginative
abilities. Both have diverse qualities & attributes which make them the person they are today.
Jeff Bezoz: He is the creator, CEO and director of driving internet shopping retailer of the world
known as Amazon.com. He established this association in the year of 1994. The company has at
first began as an Internet shipper of selling online books and extended to a vast assortment of
products and ventures. In late 90s, utilization of Internet has developed enormously. Taking the
benefit of this situation, Jeff left his well-paying job (Kuratko, 2016). Today he comes in the
category of richest man of the world. Starting from garage and then changing it into broadly
famous or demanded online platform that fulfils every last need of target client in an effective
way. Some of its skills, attributes and characteristics are discussed below:-
1. Talent for Innovation: He has been famously famed with respect to its uniqueness and
innovation from his youth days. In his initial days, he had made sound alarm that protects his
room against its disturbing siblings. From his childhood days, he posses hunger for creating of
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something new influences him become most successful entrepreneur. At first he composed an
online stage which gives books to its clients (Naudé, 2014). His imaginative ability additionally
extend the online gateway which currently provides anything or everything that a man is
searching and looking or want for.
2. Hardcore Realistic: He claims the fundamental attribute or characteristics that is important for
any effective business owner. Ahead propelling Amazon he consider and thinks all chances and
potential outcomes accompanying with it. He even acknowledged the way that there may be
odds in context of failure of his venture. He basically assess and evaluate every last factor
identified with its venture.
3. Risk Taking: Jeff owns the traits of taking challenges and risks as he left his gainful
employment occupation for achieving his desire and dream. Before introducing Amazon, he
figured all assertable risk exist in the form of financial, human or capital (Santos, 2012). At first
he doesn't have plentiful measure of cash, the main cash he had was from this small sparing and
from his parents. He knew about the way that, there are 70% possibilities that his business
thought may fail however his assurance and convictions did not disappoint him. Presently, he
falls in list of world's richest and successful man.
Bill Gates: He is a co-founder of Microsoft Corporation. He is surely the best and most
successful drop-out of Harvard University who creates an example for the entire world in context
of following his passion & dreams. He trusts that if individual have faith in something , then one
or the other he wind up with achieving it, not matter how much time it will take to; the only thing
that matters is just his courage and potential. In-fact he become millionaire at age of 30 only.
Some of its traits and characteristic are discussed below:-
1. He is a Philanthropist: It is constantly effective to consider future related activities ahead in
the current circumstance (Martin, McNally and Kay, 2013). Bill Gates along with its spouse has
created Bill and Melinda Gates Foundation. He took retirement from his job and become chief
software engineer of its home foundation. After taking retirement from Microsoft, he is ready
with his future plans. In-fact with its efforts he focus on improving U.S education system.
2. He is a Voracious Reader: He trusts that one can enhance his skills and knowledge by
continuous reading (Storey, 2016). He likes to read hard books instead of reading through e-
books. Besides, he believes that with the assistance of reading, any person can acquire wide
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knowledge of broad areas which help in their growth and development both personally and
professionally.
3. He knows how to prioritize: Success and Failure of an individual is distinguished by its habits
and prioritization. Bill Gates value his time and perfectly knows how to spend each and every
second in an effective and efficient manner. There are sure things exist in the globe and you can't
turn into a piece of every, in this manner it is essential to distinguish your needs and figure out
how to state no to various other things (Storey, 2016)
P6 Aspects of entrepreneurial personality reflect entrepreneurial mindset and motivation
An entrepreneur is the person who creates a new venture with their imaginative thought
and idea with the hope of making high profits. The qualities and characteristics of every
entrepreneur is unique in relation to others (Martin, McNally and Kay, 2013). At the point when
an individual begins new business, some kind of hazard or high risk is related with it, it relies on
the individual assurance and bravery that how viably they manage it. Five variables demonstrate
is for the most part promoted as Big Five Personality Traits that chiefly discusses how the
identity of an individual help them in achieving their objectives and want. There are five
elements identified with it which are principally depict as openness to experience, extraversion,
neuroticism, conscientiousness & agreeableness. This is called as OCEAN Model. Every one of
its factor is between connected with each other. Said underneath is the detailed clarification of
these variables as takes after:
1. Openness to Experience: Openness portrays the interest and imagination of a man. Essentially,
it depicts the degree to which a man can be innovative or inventive. This abilities empowers
them to manage any vulnerability in a successful and effective way. High transparency depicts
their creative energy control which turns into the explanation behind its high aggressive edge in
the market when contrasted with its rivals. Be that as it may, now and again extraordinary
development and creative ability brings about negative way. As it empower them to continue
changing their business task and practices on visit premise (Naudé, 2014).
2. Conscientiousness: It depicts how well an individual is significantly contributing towards
achieving business goals and objectives in an effective manner. They respond or manage the
circumstance methodically as opposed to responding immediately. Individual with abnormal
state of principles are more obstinate which isn't advantageous in setting of managing different
circumstances.
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3. Extraversion: This is basically manages the incitement inclination of a man towards different
things. This principally manages the manner by which it characterizes its point of view region
towards various things. High extraversion implies that the individual is consideration searcher
and which isn't useful for the picture of organization (Naudé, 2014)
4. Agreeableness: This characterizes the propensity of an individual towards getting to be co-
agent and co-ordinated among other collaborator. This gives them advantages of increasing
higher focused edge when contrasted with its opponents. High suitability regularly brings about
making clashes as the individual turns out to be more predominant (Santos, 2012).
5. Neuroticism: It essentially depicts how an individual manages unpleasant sentiments or
feelings regarding outrage, helplessness, outrage and despondency.
TASK 4
P7 Explain how background and experience can hinder entrepreneurship
Business people are the person who with their one of a kind and imaginative thought
makes another business wander in the expectation of producing incomes, knowing the way that
hazard is related with it. The achievement of business person relies on their imaginative and
inventive thoughts that makes them not the same as their opponents (Welter, 2011). In this
aggressive world, there are different elements that cultivate the enterprise in critical way. For
example; if a man has a place with the family in which each one is business visionary, at that
point this is common that they may forces different imaginative and innovative thoughts. Their
creative energy starts from its youth days that predominantly portrays their enthusiasm towards
specific thing. Both Jeff Bezoz and Bill Gates aren't begin their vocation as business person.
They both have confronted different obstacles towards coming to the position where they are
today. Jeff Bezoz has left its well-paying occupation of New-York keeping in mind the end goal
to seek after its fantasy or enthusiasm.
Bill Gates is another successful entrepreneur who actually a college drop-out, who today
falls in the list of world's most richest and powerful man. He exited his school since he needs to
seek after his fantasy and enthusiasm (Wiklund and et. al., 2011) Their prosperity travel was
difficult as they the two goes through different obstacles to accomplish the situation of effective
business person. They have set a case for the populace as far as how a man can satisfy his/her
fantasy on the off chance that he groups the potential and boldness to do it.
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CONCLUSION
From the above mentioned information, it can be concluded that, entrepreneurship is
essential process for the start-up business. This will provide job opportunities to the unemployed
people and also help to improve their performance. There are different number of entrepreneurial
venture that play vital role in the growth and development of economy. Small business has more
impact on economy and contribute more in the success and growth of economy. Along with this,
there are successful entrepreneur that has different characteristic, traits which help them to
maintain better reputation in marketplace. Some time background, nationality and many other
aspects are also effect on their mindset and motivation while running their own business. Beside
this, OCEAN Model is also effective that identify entrepreneurial personality and highly effects
on its mindset and motivation while launching a new business.
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REFERENCES
Books and Journal
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