The Role of Entrepreneurship in Economic Development

This assignment delves into the role of entrepreneurship in economic development, highlighting the importance of various factors such as economic and political institutions, university technology transfer, innovation, and social entrepreneurship. It also discusses the prevalence and determinants of social entrepreneurship at the macro level and its implications for regional growth.

ENTREPRENEURSHIP

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P 1 Different types of entrepreneurial ventures and their inter- relation to the typology of
entrepreneurship..........................................................................................................................1
P 2 Similarities and difference between entrepreneurial ventures..............................................3
TASK 3............................................................................................................................................4
P 3 Impact of micro and small business on economy.................................................................4
P 4 Importance of Start-up's and small business on the social economy....................................6
P 5 Characteristics, traits and skills of successful entrepreneurs................................................6
P 6 Personality that reflects entrepreneurial motivation and mindset.........................................8
TASK 4............................................................................................................................................9
P 7 How background and experience can hinder of foster entrepreneurship..............................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneurs are the one person who start as well as execute new business for getting
best success at market place. They take more risk for converting into financial gain. In this
entrepreneurship is an effective engine which directly contribute in developing economic growth
by providing quality services to their customers as per their requirements (Entrepreneurship,
2017). Mainly it is an effective process of launching, designing and executing new business in
market place. All the entrepreneurs take financial risk for achieving profitability in appropriate
manner. For establishing new business government provide better support to the entrepreneurs so
that hey easily develop their business and provide new and innovative products to their
customers. They also provide better job opportunities to their local peoples which leads in
enhancing the economic condition in most effective manner. Present report discussed about
different entrepreneurial ventures and typologies. It also include similarities and difference
among entrepreneurial ventures which largely affect the overall economic growth of the country.
Along with this, impact of micro and small business on country is also mentioned in this project.
It also include traits, skills and characteristics of entrepreneurs.
TASK 1
P 1 Different types of entrepreneurial ventures and their inter- relation to the typology of
entrepreneurship
Entrepreneur are those person who start a new business and run it on their own risk. The
profits generated from their business are also enjoyed by them only (Autio and Fu, 2015).
Entrepreneurship is nothing but the study of both how new businesses are started and actual
steps or procedures of starting an organization. The common dream of such business visionaries
is to huge amount of profits by employing correct measures.
There are different types of entrepreneurs ventures which play a vital role in improving
the economic condition their country. Some of them are listed below:
 Life style venture: These are those individuals who are probable to invest in those
domains where there is more competition. Such ventures work according to the taste of
common masses and used to manufacture those products or services which are useful for
citizens of their country. It also supply stability in the income of businessman and assists
in maintaining business operations in appropriate way. There is a disadvantage of this
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venture as often a single location is selected for the intention of doing commercial
activities and the number of personnels are also invariant or fixed. Apart from this, they
do not try to expand and thus has limited growth. It is also very hard to attain good
economic dealing or growing up its branches at international level.
 Managed growth venture: These type of ventures aspect for being stable in terms of its
business growth by utilising proper models of business. In this case, current reinvestment
would happen as launching of new goods and services, employees, location, expansion of
facilities (Barringer, 2012). This would occur for a famous local brand which are
formulated recently. These ventures try as require to continue alteration or modifications
in their offering products as this helps in enlarging their business activities.
 Serial entrepreneurs : This type of person takes on challenges repeatedly. They also
come up with new opinions and business ideas and set up firm and examines its
functioning. But after that they give this responsibility to some one else and move on to a
new idea.
 Male entrepreneurs : This type of ventures consist of only male people. Females are not
included in this category (Mariotti and Glackin, 2014). They are having the best abilities
and run business in most effectual manner. In addition to this, they easily take financial
risks and manage operations effectively in relation to female entrepreneurs.
 Female entrepreneurs : This is a special category of ventures which only involves
females. They manages their personal as well as professional lives so are very confident
in nature. They come with new ideas of business and establish vast companies. They
mainly focuses on the development of females and try to improve their life styles.
Types of different entrepreneurial typologies are mentioned below:
 Research entrepreneur: Those individuals who conduct a lot of researches and surveys
before starting any business is commonly known as research entrepreneur (Boh, De-
Haan and Strom, 2016). Such type of people love to learn new conceptions and ideas.
 Copycat entrepreneur: This can be understand by their name that these kind of person
analyses the ideas given by different successful entrepreneurs and copy the identical ideas
for setting up their firms and attain success in their lives.
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 Social business enterprises : This includes profit or non-profit organisations . The main
aim of this kind of enterprises is to offer best quality products or services in market in
order to satisfy customer's needs and desires. Such ventures are not having the motto of
earning extra income or profit and focus on social welfare (Kirzner, 2015). In this case,
entrepreneur commonly formulate programmes for poor citizens so that they can also
improve their living standards. For doing the same, they sell their products at very cheap
rates so that they can purchase it and enjoys the facilities.
P 2 Similarities and difference between entrepreneurial ventures
All entrepreneurs play significant role in developing the economic growth by providing
better opportunities to their local people. They take risk to achieve more success in market place.
For better understanding of the entrepreneur ventures there are some similarities and difference
between them are as follows:
Social venture of business similarities Serial entrepreneur ventures similarities
The main aim of social entrepreneurs is to
make quality services to their customers in
order to get their higher satisfaction.
They focus on resolving all the issues of
society by providing better solution (Yang,
2016).
The main purpose of serial entrepreneurs is to
get higher satisfaction to the customers by
providing quality services.
They execute their business activities for
achieving profitability and inviting large
number of customers.
Difference Difference
This type of entrepreneur find solution to the
customers in order to resolve their issues.
This entrepreneurs based in improving
economic growth. This can be profitable and
non profitable.
But on the other hand serial entrepreneurs
focus on generating larger market share by
delivering quality services (Siegel and Wright,
2015).
This organization based ion the profitability.
Male entrepreneurs business similarities Female entrepreneurs business similarities
Male entrepreneurs have best capabilities to
executing operational activities in most
Female entrepreneurs easily operate their
business activities in order to achieve higher
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effective manner.
Male entrepreneurs take financial risk in order
to convert into financial gain.
success.
They are more confident with their business
activities so that they easily manage their
activities.
Difference Difference
Male entrepreneurs easily take financial risk
and also manage it effectively.
They are more aggressive as well as short
tempers as compare to female entrepreneurs.
Female entrepreneurs easily manage their
workforce and also motivate them towards the
work.
Female entrepreneurs are more careful and
sensitive for their staff members in which they
easily completed all the task in effective
manner.
TASK 3
P 3 Impact of micro and small business on economy
In the modern business context there has been a wide change in the amount of influence
that small and medium sized farms have on the economy of the nation. In the past few decades
there ave been a larger amount of small firms that ave came up due to entrepreneurial ventures
(Mariotti and Glackin, 2014). They are playing an decisive role in transforming the economy of
the UK. They provide most valuable contributions to the GDP of the country. In the nations that
are facing the problem of economic instability there role becomes more significant. Various stats
have shown over the years that economy of UK will be highly dependent on the small business
firms which can be understood by these points:
 They are supporting the economy of the UK by becoming the backbone. They are
contributing in the large amount to the GDP of the nation. They are creating new markets
which other entrepreneurs can also follow and start their own business.
 When compared to the employment opportunity more number of people are employed in
the smaller scale firm as compared to that of bigger firms. They have the capability of
generating new kinds of job opportunities.
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 They are the promoters of innovation and hence fulfilling the demands of larger sections
of the society. They are increasing competition which has direct effect on the economy of
the nation.
In current market, determination of business is more complicated so that, for evaluating all these
requirements are as follow:
Micro Business: It define as a very small business which owned privately. In this fewer
workers are work with less revenue to operate their activities. These type of business
organization does not required lots of investment. Along with this, these type of business are
changing the dynamics. They operate their business for surviving in competitive market place.
Small Business: These type of business operate their business with various employees for
producing quality products and services to their customers. It also contribute in developing
economic growth by providing employment to local people. Approx 22 million small business
are exist in the US. In this they offer new and innovative jobs for improving living standard of
local people.
Medium Business: Under this company, approx 50-250 workers working for attaining
best results. Basically these companies operate their business with partnership. Along with this,
the main aim of these companies is to generate larger profitability by delivering quality products
and services. Further, CSR activities also contribute in this companies to develop quality of
people in society.
P 4 Importance of Start-up's and small business on the social economy
Small business enterprises and start-up's not only have a greater impact on the economy
of the nation but it has a serious impact on the social economy. Relationship between society and
economy is considered as social economy. These small firms have impact on the local markets
which is essential for lifting many society (What is an Entrepreneur? - Definition, Characteristics
& Example, 2017). They ensure that there is capital flow in the society where it is operational
which is essential for the development of many weaker sections of the society. Post Brexit here
will be requirement of more funds from the development of many society which can provided by
SME. This is due the fact that the support for such societies fro the EU will get minimised and
hence UK have to become self-capable to do so. The support that is provided by the SME can be
utilised by the government of UK for providing subsidy for economically weak sections of the
society. Some of the points regarding their impact on the society is as follows:
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 They assist government reducing unemployment ratio as they provide jobs for many
people.
 They generally produces products at cheaper cost which lowers down the inflation in the
market.
 They give support to the rural economy where the larger firms are unable to reach. This
boosts up the rural infrastructure.
 SME and start-up's provides a large support to the cultural businesses especially in the
tourism industry since it is promoter of paintings and the business that is operated at the
local levels.
 They give jobs to such people who either would have unable to get employment under
bigger firm due to lack of high quality degree with them (Welter, 2011).
 They also give jobs to the women section of the society and hence empowering them to
become financially capable for their livelihood.
 Small business enterprise is providing job to around 99.3% all the private sector firms
which is actually employing around 6 million people and this is expected to get increased
post Brexit.
 Number of Employees that are working in such firms is approx 15.7 million which is
60% of the total employment in private sector (Barringer, 2012).
 Aggregated annual turnover of SME is calculated to be approx 1.8 trillion pounds which
is 47% of the turnover of UK's private sector.
 Total number of SME which are registered for VAT and PAYE is approx 2.5 million.
P 5 Characteristics, traits and skills of successful entrepreneurs
Traits and skills of a person relate with their characteristic which make them different and
unique from others. It is important for a entrepreneurs to achieve advantage in their life and
business (Roth, 2017). It provide short and long term benefits to successful entrepreneurs. With
the help of this they easily attain their target in effective manner and also improve their overall
performance at market place. In this main traits of Mark Zuckerberg and Bill Gates which helps
in achieving best growth in most effective manner. All are as follows: Full of determination: It is one of the important for the entrepreneurs to achieve better
success. With the help of this they execute their business activities and take risk to attain
positive results. If entrepreneurs having lack of determination than they fails in operating
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their business activities (Huggins and Thompson, 2015). Bill Gates and Mark Zuckerberg
having these type of skills which helps them in achieving better success at market place. Better understanding about money management: It is also important for the
entrepreneurs to understand how to manager money within their organization. With the
help of this they spend their money syntagmatically and get positive results. If they fails
in money management within their business than they can not able to achieve financial
profits. Strategy: Formulating effective strategy within the business is more important for the
entrepreneurs. With the help of this both successful business man reach their target and
achieve positive success in most effective manner. Passion about business: It is one of the important traits for the successful entrepreneurs
because it helps in evaluating the positive work environment at the workplace (Leyden
and Link, 2015). If they have less passion than they feel more stressed and reduce their
profitability level. Flexibility: For adopting all the changes easily is one of the important aspect for the
successful entrepreneurs. With the help of this company easily produce quality services
to their customers as per their demand so that they easily satisfied their needs. Risk taking ability: Without taking risk no body can achieve positive success. So hat it is
more important for the entrepreneurs to take risk in order to convert into financial
profitability. Bill Gates and Mark Zuckerberg both are take risk to achieve better success.
 Vision: It is also important for the entrepreneur to set their future activities and define the
place where they want to see itself in upcoming time period. With the help of this
entrepreneurs easily provide better path to their employees so that they achieve their
target in most effective manner.
All these traits and skills define the better performance of the entrepreneurs and also
make them successful business man in market place. Mark Zuckerberg and Bill Gates both
having all these traits to achieve success at market place (Lima and et. al., 2015).
Characteristics Skeptical entrepreneurs: These type of entrepreneurs fine the better reason through
various research. With the help of this they easily implement their business and achieve
positive results in appropriate manner.
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 Copycat entrepreneurs: These type of entrepreneurs thinks that success can be achieved
by copying others ideas so that they implement those ideas for achieving maximum
results in positive manner (Hoogendoorn, 2016). Research entrepreneurs: These type of entrepreneurs undertake research before
executing their activities in which they learn new innovation and things and after that
start their business. They lie to lean new things and achieve success on the basis of their
research in effective manner.
 Determined entrepreneurs: These are that kind of people who think that success is
achieve without copying other ideas and opinions so that they execute their own activities
to get positive outcomes in effective manner.
P 6 Personality that reflects entrepreneurial motivation and mindset
Entrepreneurs differs from larger section of the society in terms of qualities and
personalities they have. There intrinsic motivational level assists in achieving their targets. Bill
gates and Mark Zuckerberg is having such characteristic that helped their firms in capturing the
wider section of the society. Positive approach and mindset helps company in managing
decisions that has a higher risk content (George and Bock, 2011). Some of the factors that
reflects entrepreneurial mindset is as follows:
 Family Upbringing: It plays an decisive role in shaping the mindset of entrepreneurs. A
man reflects the motivational level what he has gathered the family upbringing. Family
values are reflected in their passion.
 Life style: The life style they are managing shapes their motivational level and have
flavours of their passion. Both the above mentioned entrepreneurs leads a simple and
focused life style from the early phase of their life. There lifestyle also decides how much
time they could give to their work which is essential on the longer run.
 Cultural difference: Both these personalities comes from the different sections of the
society. Their idea of entrepreneurship has also been developed from their understanding
about the requirements of society. Cultural variances always helps in developing positive
mindset in them. These cultural differences helps in bringing many kinds of qualities that
is helpful in managing business.
 Personal motivation: It is one of the most important part of their entrepreneurial
mindset. Their self believe in themselves helps in boosting up their personal motivational
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level which is necessary for their success (Santos, 2012). It is also essential for bringing
positivity at the workplace.
 Background: The background they come from plays and decisive role in shaping their
mindset as well as motivation. The need they have seen in their life helps in developing
the idea for their business. They always try hard for understand the requirement of the
society and shape their idea in the same manner.
TASK 4
P 7 How background and experience can hinder of foster entrepreneurship
Various elements affect the entrepreneurship process which covers background,
experience of the entrepreneurs (Erken, Donselaar and Thurik, 2016). All these are directly
impact on the entrepreneurs and its business. If individual has positive experience than they
easily implement their future activities without any circumstances. With the help of this they
achieve positive outcomes and foster the entrepreneurship process. It also aid in enhancing their
self confidence in which they effectively manager their business activities to achieve their target
in appropriate manner. At the same time if they has negative past experiences than they decrease
their motivation as well as morale which directly impact on the business activities. So that it is
more important to the entrepreneurs to effectively understand that failure and success is just a
part of business so in this situation, they do not loose their confidence level and lean from their
past mistake. With the help of this they easily improve their future activities (Boh, De-Haan and
Strom, 2016).
Along with this, some characteristics of person which is related with their ritual which
also impact on their entrepreneurship process. In this, personal traits, financial condition,
upbringing, education, family background and many more affect the individuals attitude. All
these are largely contribute in making whole personality of the person and also make them
capable to execute their activities. It also impact on decision making process of the individuals.
In this context, positive experience helps in improving performance of the entrepreneur and on
the other hand negative experience reduce their self confidence. All the efforts must be
considered by the entrepreneurs to become a successful. In this if entrepreneurs face negative
results than they learn and tries to improve their performance (Autio and Fu, 2015). All these
ways help to the entrepreneurs to achieve best success at market place.
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CONCLUSION
From the above mentioned report, it can be concluded that entrepreneurs are one of the
important part of the business who start their operational activities to achieve financial gain.
Entrepreneurship is also play significant role in developing the economic growth by introducing
better job opportunities to the people so that they enhance as well as improve their living
standard in most effective manner. Along with this, various type of entrepreneurs define the
personality of the business men in which they take risk for achieving better benefits. For setting
new business, government provide support to them in order to improve their performance. Along
with this micro and small business also contribute in developing overall economic growth. With
the help of this entrepreneurs provide quality as well as new services to their customers as per
their requirements to attain their higher satisfaction. Furthermore past experience and
background is also affect the mind set of the entrepreneurs. It helps in improving the positive
performance and get better success at market place.
REFERENCES
Books and journals
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Autio, E. and Fu, K., 2015. Economic and political institutions and entry into formal and
informal entrepreneurship. Asia Pacific Journal of Management. 32(1). pp.67-94.
Barringer, B., 2012. Entrepreneurship: Successfully Launching New Ventures, (2012).
Boh, W. F., De-Haan, U. and Strom, R., 2016. University technology transfer through
entrepreneurship: faculty and students in spinoffs. The Journal of Technology Transfer.
41(4). pp.661-669.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Erken, H., Donselaar, P. and Thurik, R., 2016. Total factor productivity and the role of
entrepreneurship. The Journal of Technology Transfer. pp.1-29.
George, G. and Bock, A.J., 2011. The business model in practice and its implications for
entrepreneurship research. Entrepreneurship theory and practice. 35(1). pp. 83-111.
Hoogendoorn, B., 2016. The prevalence and determinants of social entrepreneurship at the
macro level. Journal of Small Business Management. 54(S1). pp.278-296.
Huggins, R. and Thompson, P., 2015. Entrepreneurship, innovation and regional growth: a
network theory. Small Business Economics. 45(1). pp.103-128.
Kirzner, I.M., 2015. Competition and entrepreneurship. University of Chicago press.
Leyden, D. P. and Link, A. N., 2015. Public sector entrepreneurship: US technology and
innovation policy. OUP Us.
Lima, E. and et. al., 2015. Opportunities to improve entrepreneurship education: Contributions
considering brazilian challenges. Journal of Small Business Management. 53(4).
pp.1033-1051.
Mariotti, S. and Glackin, C., 2014. Entrepreneurship and small business management. Pearson
Higher Ed.
Roth, G. ed., 2017. Street smart: competition, entrepreneurship and the future of roads.
Routledge.
Santos, F.M., 2012. A positive theory of social entrepreneurship. Journal of business ethics.
111(3). pp. 335-351.
Siegel, D. S. and Wright, M., 2015. Academic entrepreneurship: time for a rethink?. British
Journal of Management. 26(4). pp.582-595.
Welter, F., 2011. Contextualizing entrepreneurship—conceptual challenges and ways forward.
Entrepreneurship theory and Practice. 35(1). pp. 165-184.
Yang, K., 2016.Entrepreneurship in China. Routledge.
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Entrepreneurship. 2017. [Online]. Available
through.<https://www.inc.com/magazine/201309/jessica-bruder/psychological-price-of-
entrepreneurship.html>.
What is an Entrepreneur? - Definition, Characteristics & Example. 2017. [online]. Available
through: <http://study.com/academy/lesson/what-is-an-entrepreneur-definition-characteristics-
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