Entrepreneurship: Theory and Practice

The assignment delves into the multifaceted world of entrepreneurship by examining various theoretical frameworks and practical applications. It draws upon prominent scholars like Drucker, Kirzner, Baum, and Kuratko, exploring concepts such as entrepreneurial intentions, financing alternatives (microfinance, crowdfunding), the impact of education on entrepreneurial attitudes, and the relationship between entrepreneurship and urban growth. The assignment also touches upon the historical evolution of trade and entrepreneurship in Indonesia.

Entrepreneurship

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P 1.Types of entrepreneurship ventures their relation with entrepreneurship typology.........1
P 2. Differences and similarities between entrepreneurial ventures.......................................2
Task 2...............................................................................................................................................3
P 3. Assessment of the impacts of micro and small business on UK economy.....................3
P 4.Importance of small business and start ups in the social growth of economy after Brexit4
Task 3...............................................................................................................................................6
P 5.Characteristics, traits and skills of two successful entrepreneurs....................................6
P 6.Aspects of entrepreneurial personality that reflects entrepreneurial motivation and mindset
................................................................................................................................................7
P 7.How background and experience can hinder entrepreneurship.......................................8
CONCLUSION................................................................................................................................9
REFERENCES ...............................................................................................................................9

INTRODUCTION
This assignment will discuss about small business and entrepreneurs. An economy can
grow by tiny entities and organisations. These enterprises provide job opportunities and generate
more revenues for countries. There are numerous sectors like hospitality, IT, innovation are
available that provide employment and support to economy of any nation. Various factors are
there to affect small firms and its business. The present report is based on small business units
and its significance in UK (Bae and et. al. 2014). Further, its main purpose is to determine
factors that can affect a small start up and its growth. Moreover, the role of an entrepreneur in
small medium enterprises (SME) will also be described.
Task 1
P 1.Types of entrepreneurship ventures their relation with entrepreneurship typology
Entrepreneur is the person who start and run small units with limited available resources
and plans to take every risk and reward for his venture (Baum, Frese and Baron, 2014).
Entrepreneur ventures is considered as a business that can be run by individuals or any group
who serves quality services to people. Key projects are ventures in which administrators engage
in local and global enterprises. There are various types of entrepreneurial projects which can be
started by individuals or group of persons. These are as follows:
Small business entrepreneurship: This kind of start up is the most common to start a new
business. It includes tiny grocery stores, travel agents, car painters, store fronts etc. these are
units that are opened to earn some revenue and feed families. The small ventures can easily be
seen UK. They merely earn anything and it is hard for them to even feed their families. The
objective of its entrepreneurs is to not earn high profits and market shares. Initially. They take
funds from their family and other relatives to start a firm and hire local workers to serve
customers. In this type of business, owners personally conduct surveys to identify needs of
people and serve them accordingly. Its typology is to get profits to run family (Bruton and et. al.
2015).
Scalable start up entrepreneurship: This type of entrepreneurialism attracts investors for funds
and it is about projecting new ideas towards them. The scalable start up is related to innovation.
Its vision to give something new to people and change world by this. It hires best and
experienced professionals due to have foresighted vision of serving the world. Its chances of
growth is also very high. Furthermore, Silicon Valley entrepreneurs programs has to be carried
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out to give such administrators a platform to share their ideas. The typology of such enterprises
is to provide different and innovative products to consumers. In UK various business set ups has
been witnessed regarding new ideas and technology.
Large company entrepreneurship: This is the typical kind of venture which mainly focuses on
growth of organisation. For this, the entrepreneurs of companies offer high quality products and
services to buyers. Through it they want to earn profits and revenues for their firms as much as
possible. Moreover, this venture concerns about market competition and work continuously to be
competitive all the time. To obtain this, they acquire new organisations and develop new product
strategy to attract more customers. Its typology is to establish as a large company in target
market.
Social entrepreneurship: As the name indicates, its objective is to give innovative products for
social welfare. It does not operate to earn personal profits. The main aim for this venture to serve
society and work for it. These firms render the services that can resolve social matters. It can be
categorised as non profit organisation as it is not based on generating profits. These can be seen
in various parts of UK
P 2. Differences and similarities between entrepreneurial ventures
There are many differences between ventures discussed above. Some of them are as
follows: Structure and size: In case of small units, they are to very tiny and aim to earn profits for
their own and family needs. Whereas, large firms are made to generate huge revenues
and shares. They are also responsible to create employment possibilities. It can also be
said that these organisations are the contributors to provide jobs and economic growth.
For instance, Tesco and Lidl are large companies that helps to stable the economy of UK.
The size of such big enterprises is also big (Nguyen Na Mi, 2013). If talk about small
entities, all operations and functions are performed at one shop only. On the other hand,
big firms have multiple chains across country. Sometimes they operate internationally. In
scalable start ups, size does not matter, here ideas and innovations take place. Aims and objectives: This is the biggest difference between ventures. Each type of entity
runs with a different motive and aim. In social entrepreneurialism, administrators pay
focus to work for social needs and public welfare. On the other hand, the scalable start
ups pay attention to market profits and revenues with new ideas to change world. The
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small units are very simple in this context, they are there to earn some profits for survival
of family by providing and serving customer needs. The last style of entrepreneurship is
for large organisations that serve country by offering high job opportunities and fulfil
buyers needs as well as get robust growth and profits in terms of market shares. Thus, it
helps to grow economy of country.
 Financial sources:It is the another difference in terms of finances of different
entrepreneurial ventures. The large organisations get funds by bank loans, financial
institutes and sponsorships (Burns, 2016). On the other hand, small firms take financial
helps from their friends and family to start business as they are not as famous as big
entrepreneurs. In case of social entrepreneurship, the funds are organised by taking
donations from big entities. In this scenario, large enterprises are the source of finance to
serve society.
Similarities: Apart from so many differences, there are few similarities between entrepreneurial
ventures which are described below:
 All the enterprises whether it is small or large have one common objective is to earn
some profit. However, social ventures can be called an exception in this context.
 The main goal of all entrepreneurship styles is to serve people by offer quality products
and services to them.
 To create market image and reputation through their business and innovations.
 By the time, creating values for companies is also a similarity between aims of different
entrepreneurial styles.
 Initiation of providing services, new products to customers by developing various
strategies for their enhancement.
Task 2
P 3. Assessment of the impacts of micro and small business on UK economy
The impact of small entities on the economic growth of UK is huge. Problem is that the
impacts of large enterprises on economy easily witnessed but small firm's contribution is hardly
noticed. After Brexit, financial condition of UK had been declined and that time, small units had
contributed to make it stable. These are major contributions of tiny firms to UK economy:
By providing employment: The small entities are liable to give jobs to citizens of UK. Instead of
having 250 or fewer employees in each tiny firm, it contributes to provide employment to people
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of UK. There are millions or such small enterprises which generate job requirements that is more
frequent than large organisations (Drucker, 2014). According to statistics, there were 5.2 million
small and medium-sized firms in 2014 that have given employment to needed persons. By this
survey, it can be easily seen the contribution of small sized enterprises to UK economy.
Economic impact: The SMEs are also responsible for financial growth of country through
innovation. This is because it attracts thousands of people who have enough talent and
innovative ideas to help in growth of firms. Furthermore, many functions of big entities are
carried out by small or medium-sized organisations so these companies have contribution to their
growth also and eventually, it gives financial stability to country as well. This task is known as
outsourcing. Through this, there have been many times when SMEs were grown as a helping
hand for UK economy. At the time of recession, it were these companies that raised to stable
country's economy and took it out from recession phase. So it can be easily seen that small
entrepreneurialism is very helpful for development and economic growth of UK.
Flexible with time: By high competitive market and innovations in technologies, the
environmental conditions are changing rapidly which is responsible for financial stability of
nation. SMEs alters itself in accordance with needs and requirements of consumers. They can
even gain profits by providing products with less potential for sold out. Thus, they can earn
money in tough times too which helps to give economic stability to country. On the contrast,
large firms can take time to respond such market changes due to high investments in products.
Hence, at the time of financial crises, tiny entities are able to earn small profits and make
economy stable. So importance of small firms can be witnessed in times of recession.
By generating revenues: The tiny entrepreneurial ventures contribute to generate market shares
and revenues for country (Hatten, 2015). As per the survey, UK economy had contribution of
small business firms that was 46%. This was revenue generated by small entities in UK.
Therefore, this is clear that UK economy is highly dependent on these small start ups and
businesses in terms of financial growth.
Hence, it can be stated that small organisations have a huge contribution for economy of
UK in all the times whether in recession or inflation.
P 4.Importance of small business and start ups in the social growth of economy after Brexit
Brexit was an economic decision taken by UK. However, it was a very shocking thing to
the country. This was about backing out from EU. Due to this, the UK business and economy
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had in financial crises. By applying Brexit, SMEs were not able to operate in different nations.
They were only allowed to trade in various cities of UK (Fayolle and Gailly, 2015). This had
negatively affected the business and economy of country. By implementation of such rules the
profitability of enterprises reduced drastically and economy of the nation had fallen badly. But
with tiny entities and start ups it had started gaining pace and moving towards stability. It was
due to job opportunities provided by small entities to UK citizens. So they were getting out of
the phase of recession. It directly helped the social economy of country. This was contributing to
people to livelihood and affordability of daily needs of them. For some people it had become a
reason for survival due to get job in small start ups. In addition, this also helped to charitable
trusts and social organisations to get funds. By use of these funds they supported poor people
and made them able to fulfil their basic needs. It indicates social development at the time of
Brexit.
Apart from the Brexit problem, next one was the issue of funding in UK economy.
Because EU used to give funds for various business operations in the country. EU was one of the
reasons due to which organisational activities in entities took place. After quitting from it, UK
was in financial crises at that time. But it had little impacts on small business enterprises as these
firms need very few amounts of funding to carry out functions. Hence, for tiny start ups it was
easy to perform business operations in their enterprises. On witnessing this, UK economy
decided to focus on start small scaled entities. Due to which, it was seen that half of the nation's
economy came on the shoulders of SMEs. As discussed earlier, SMEs have advantage to be
changed according to the needs which was requirement at the time of Brexit. Just because of
this, small entrepreneurial styles had able to contribute for growth of UK economy and also
responsible for its social development. By small scale enterprises, people got job opportunities
and this increased their living standards. Furthermore, due to it, many people were able to
survive with getting employment in small firms. Hence, it resulted in social stability and growth.
On the other hand, large organisations took so much time to get that stability because of Brexit.
So, those businesses had fallen down badly (Glaeser, Kerr and Kerr, 2015). In addition, UK
government supported to SMEs by seeing economic growth due to them and made investments
to provide funds to these entities. By implementing these strategies UK economy had shown a
rapid hype in financial context and so in small business enterprises too. Therefore, SMEs had
helped in social growth of UK in every aspect.
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Task 3
P 5.Characteristics, traits and skills of two successful entrepreneurs
Every entrepreneur has different skills that differentiates him with others. Many
entrepreneurs are there to serve people and nation with their new and innovative ideas to make
life better and increase living standard of customers. One of them is Richard Branson who have
his own Virgin company (Entrepreneurial skills, 2017). His talent and ideas made his business
grow to a great extent. Whereas, other entrepreneur is Mark Zuckerberg who had connected
world by Facebook application. Both of them have different abilities and characteristics to gain
profits for their organisations which are given below:
Characteristics and traits:
Planning in advance: One of the major characteristics of these administrators was to plan
everything before. As per the case of Richard Branson, it is seen that he had started his business
with just a small magazine, but by the time, he became an owner of Virgin Group. It happened
because of his planning regarding his enterprise (Kirzner, 2015). He took small steps and reach
at the level where he is today. But in the managerial concern, they do not pre plan any activity
what they get to accomplish. The planning process of managers is limited but vast in case of
entrepreneurs.
Create competitive advantage: With the innovative ideas administrators create competitive
advantages. But managers do not look upon other activities that are beyond their given task.
They only focus to accomplish given tasks. In short, they do not possess the quality of
foresightedness. As far as Mark Zuckerberg is concerned, he developed a huge market by his
innovation which cannot be defeated by other applications till date.
Skills
Risk taking: Both of the entrepreneurs have ability to take risk. There are fewer chances of any
business to be successful in first time as this requires patience and risk taking quality. It is a fact
that to get a booming enterprise, individuals have to be risk takers. But this is not the case for
managers. They are not allowed to take risks. Managers play on safe side and adapt the things
that will prove to be profitable in future for sure.
Innovation: It is a skill due to which an entrepreneur can taste fruit of success. For this, they do
not have to set any regulations and rules. It needs a new idea to be implemented strategically. By
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this, administrators bring things that are new for customers. For example Facebook was very
new and innovative app for people that is used to connect persons of whole world. This had also
needed more than one individual. In case of managers, they do not tend to bring new ideas for
companies (Kuratko, 2016). They just walk on the old path and follow set rules to achieve
targets.
Skill of sales: As the case of Richard Branson it is said that he is able to sell his ideas to public
through his magazines with new thoughts and innovations. Same can be said for Mark
Zuckerberg, he sold his innovative application to world and got huge recognition and profits. But
this cannot be said for business managers as they do not have to sell products and they just
manage company activities.
P 6.Aspects of entrepreneurial personality that reflects entrepreneurial motivation and mindset
Entrepreneurs have abilities to influence and motivate others through their skill, actions
and characteristics. They possess quality of motivating individuals to their work. People get
motivated by success stories of big entrepreneurs. They feel encouraged by achievements of
administrators. Same can be stated for both Mark Zuckerberg and Richard Branson. They had
started their business at a very low scale (Naudé, 2014). With the time and their patience, both
have been reached at top levels now. Their quality of risk taking and dedication towards work
motivate people for small business start ups. In case of Mark Zuckerberg, many big
organisations have neglected his innovative idea, but with his dedication to bring this new
application in market, he created his own empire where he is generating huge revenues and
profits that is unbelievable. This motivating path inspires people to be walked. As, once he used
to walk on it. This helped both the entrepreneurs to become famous personalities and through it
many individuals get motivated and want to start their own business based on refreshing ideas.
There is another major quality which makes both of them stand out from the crowd is
risk taking. People have capabilities to conquer world by innovative business ideas but they are
frightened of being failure. Furthermore, after facing few failures, individuals feel demotivated
and stop trying something new. This restricts them to become a successful entrepreneur. In case
of Richard Branson, failure occurred several times for him but he stood up over and over again,
finally he became able to overcome all his losses and find success in his enterprise. It gives
inspiration to people to not stop till they get success. In addition, entrepreneurial skills also help
to change mindset of persons (Schaper, 2016). This provides people the quality of
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foresightedness to plan their future and anticipate that alterations. It positively affects people and
help to change their mindset regarding business development. The entrepreneurs play role of
ideals for individuals and motivate them to a great extent. Another important skill of them is
they know ways how to earn profits. As per the case of Richard, he knew various methods to
gain maximum profits. Same can be said for Mark Zuckerberg, he also earned huge profits.
Thus, the personality traits and skills of administrators helps to encourage people on high level.
P 7.How background and experience can hinder entrepreneurship
Background and experience play important roles to impact entrepreneurialism. It can
happen that both aspects may not support innovative skills of people. The administration is not
that easy as there are various factors which can affect business success. Some times entrepreneur
come with an idea that do not match with experience he has related to his field. So there can be
chances of failure of that idea. The enterprises can be impacted by this thought process and it
may restrict the individual to carry out plans and work on it further. Growth of any entity can be
hindered by this threat. There are many times when the entrepreneur has less knowledge about
what is planning to implement. For instance, Richard Branson had been suffered from dyslexia
and this was the obstacle in his success. Due to this mental disease he was not able to read and
write properly. It became an issue in the way of his business. But he fought with this disability
and made it turn to an advantage from disadvantage. The another hurdle can be face by people is
lack of funds. Due to poor family background, many individuals cannot hire skilled employees
which results in slow start up of business and fewer profits.
This case can be linked with Mark Zuckerberg, as he had not sufficient financial support
to start his Facebook application. Furthermore, the investors were also less interested to provide
him funds. This made difficult for him to start his desired project. Apart from all this, cultural
diversity and personality attitudes also play important roles to hinder entrepreneurship skills.
Cultural diversity also creates problems as sometimes people are judged by their culture and not
skills and talents (Storey, 2016). Due to these obstacles administrators are less likely to grow
their entity. Personal experience is also a hurdle in success as sometimes individuals fails so
many times and finally they give up due to numerous failures. By experiencing such set backs
people loose their confidence and it impacts negatively on their firms. On the other hand if the
experience of individual is good in the past, then he will be enthusiastically take part in various
business activities and bring new and refreshing ideas that can help to grow company
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dramatically. Hence, background and experience play crucial roles for entrepreneurs; both can
hinder or foster a business in a long run.
CONCLUSION
From the above assignment it can be concluded that entrepreneurs are the most skilled
individuals and possess enough talent to take their business to a huge level. After further analysis
it can also be said that small and medium enterprises have also the potential to help in growth of
any country's economy as seen in UK. Due to these SMEs the UK economy had seen stability
especially at the time of Brexit (White, 2016). In addition, small entities also contributed to
boost financial status of UK in times of recession and brought it back from that phase. It also
helped to develop social economy of UK.
Furthermore, it can also be articulated that to be a good entrepreneur there are various
skills and traits are needed to run a small and large business. In this report, examples of
successful entrepreneurs Richard Branson and Mark Zuckerberg has been given to understand
administrative qualities of entrepreneurs and what are the hurdles they can face in the way of
successful business.
REFERENCES
Books and journals
Bae, T.J. and et. al. 2014. The relationship between entrepreneurship education and
entrepreneurial intentions: A meta‐analytic review. Entrepreneurship theory and
practice. 38(2). pp.217-254.
Baum, J.R., Frese, M. and Baron, R.A. eds., 2014. The psychology of entrepreneurship.
Psychology Press.
Bruton, G. and et. al. 2015. New financial alternatives in seeding entrepreneurship:
Microfinance, crowdfunding, and peer‐to‐peer innovations. Entrepreneurship Theory and
Practice. 39(1). pp.9-26.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
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Fayolle, A. and Gailly, B., 2015. The impact of entrepreneurship education on entrepreneurial
attitudes and intention: Hysteresis and persistence. Journal of Small Business
Management. 53(1). pp.75-93.
Glaeser, E.L., Kerr, S.P. and Kerr, W.R., 2015. Entrepreneurship and urban growth: An
empirical assessment with historical mines. Review of Economics and Statistics. 97(2).
pp.498-520.
Hatten, T.S., 2015. Small business management: Entrepreneurship and beyond. Nelson
Education.
Kirzner, I.M., 2015. Competition and entrepreneurship. University of Chicago press.
Kuratko, D.F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Kuratko, D.F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Naudé, W., 2014. Entrepreneurship and economic development. International Development.
Ideas, Experiences and Prospects.
Schaper, M. ed., 2016. Making ecopreneurs: developing sustainable entrepreneurship. CRC
Press.
Storey, D.J. ed., 2016. Entrepreneurship and new firm. Routledge.
White, N.J., 2016. Promises and Predicaments. Trade and Entrepreneurship in Colonial and
Independent Indonesia in the 19th and 20th Centuries.
Online
Entrepreneurial skills, 2017. [Online]. Available through
<https://www.mindtools.com/pages/article/newCDV_76.htm>
Nguyen Na Mi, 2013. Differences and similarities in the entrepreneurial process of independent
new ventures and corporate new ventures. [Online]. Available through
<http://essay.utwente.nl/63158/1/Nguyen_UniversiteitTwente_MasterThesis.pdf>
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