Entrepreneurship and Small Business Impact

This assignment delves into the world of entrepreneurship and its influence on the economy, focusing particularly on small businesses. Students will analyze academic research and literature to understand the theoretical foundations of entrepreneurship, examine the impact of small businesses on various economies (using the UK as a case study), and explore the key personality traits associated with successful entrepreneurs. The assignment encourages critical thinking and application of knowledge from diverse sources.

ENTREPRENEURSHIP

Table of Contents
INTRODUCTION .........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Different types of entrepreneurial ventures and relation with typology of entrepreneurship
.....................................................................................................................................................1
P2 Similarities and difference between entrepreneurial ventures...............................................3
TASK 2............................................................................................................................................4
P3 Small and micro business impact on the economy................................................................4
P4. Importance of firm start-up's and small business to growth of social economy...................7
TASK 3............................................................................................................................................8
P5. Skills, characteristic and traits of entrepreneurs...................................................................8
P6 Entrepreneurial personality reflect entrepreneurial mind-set and motivation.......................9
TASK 4..........................................................................................................................................11
P7 Experience and background of entrepreneur foster and finder entrepreneurship................11
CONCLUSION ............................................................................................................................11
REFERENCES..............................................................................................................................13
.......................................................................................................................................................14

INTRODUCTION
Entrepreneurship is identify as an effective process of running, planning, launching and
designing a new business operation in a systematic manner (What is Entrepreneurship?, 2017). It
has been determined as the willingness and capacity to create, manage and conduct a business
venture without any kind of risk or difficulty in order to make maximum turnover and profit. It is
a best activity undertaken or sized by an entrepreneur to develop and to establish a new
company. Entrepreneurship is an act of change over the ideas of starting a business into its
implementation. It is describe as an outcome of complex psychological, social-economic, legal,
technological and many other factors. In nature it is a risky and dynamic process which is
essential for the company to achieve desired goals and objectives in an effective manner (Acs,
Autio and Szerb, 2014). This report discussed about the different kind of entrepreneurial venture
and its connection with types of entrepreneurship. Difference and similarities between various
entrepreneurial ventures also shown in this project. Micro and small business effect on the
economy in direct and indirect way, it is described in this report. Entrepreneurs skills,
characteristic, personality and traits reflect its motivation and mindset which is also shown in this
study.
TASK 1
P1. Different types of entrepreneurial ventures and relation with typology of entrepreneurship
Entrepreneurship: It is identify as an essential process of running and developing new
business which is small in nature. It is design and plan by an entrepreneur who are capable in
order to achieve long term and desire objectives of them. They have creative and unique ideas
run new enterprise venture that motive towards fulfilling the desire and requirement of public in
a proper way. Essentially, an entrepreneur integrate three force of production including, natural
or land, capital and labour factors for venture.
There are some kind of entrepreneurial venture which are described as below:
Small-Business entrepreneurship: This kind of business is mainly established by an
entrepreneurial venture in a systematic manner. These are managed, owned and operated by an
individual proprietor (Awogbenle and Iwuamadi, 2010). Most of the start-up's are thoughtful as a
small business as they never take more human and financial resources as its opening step. In the
United kingdom, different start-up's are silent small-business with a motive of supporting their
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family or relatives instead of creating earning maximum profits. There are some small-business
are Grocery store, consultants, electricians, carpenter and many other.
Scalable Start-up entrepreneurship: These kind of entrepreneurs take higher creativity
and knowledge. They are alert regarding entire modification in the globe so they can change
these with the help of their new plan (Brandstätter, 2011). Main focus of this business is to
lookup for repeatable and scalable framework and when they search such model, they focuses on
attracting large number of venture capitalist.
Large company entrepreneurship: They mainly consider financial activities and
controlled-corporate enterprise at a large level. This kind of business has limited life-cycle which
is handled by sizeable corporates. They mainly develop and grow due to providing innovative
services and products to potential clients. They operate with a motive of earning maximum
profits or turnovers and capturing higher market share.
Social Entrepreneurship: They are mainly included as an originator that essentially
focuses on developing services and products that solve the issue or requirement of society. Main
aim of this business is to improve country economic situation in an effective way. These business
may be present for gaining maximum revenues (Bridge and O'Neill, 2012). They principally deal
with the difficulty such as illiteracy, health care, poverty and many other to encourage societal
welfare and interest.
Typologies of entrepreneurship and its relation with entrepreneurial venture, these are
described as below:
Survival Ventures: These are mainly refers a particular place which assist a person for
helping new business at the time period of living. In today's area, entrepreneur has batter chance
for promoting services and goods without creating any type of rivalry as well as provide services
which help the members to face hard condition.
Serial Entrepreneur: These type of entrepreneur who regularly come up with innovative
and creative plan to operate the start-up's. They transfer their duties and roles to another in order
to do all work in essential way.
Lifestyle Venture: They have capability to modify strategy and framework of enterprise
according to marketplace trends (Bruton, Ahlstrom and Li, 2010). These are person who develop
a business functions and operation with the objectives of modifying lifestyle of individual and
making more revenues for the few aim.
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Female Entrepreneur: These are person who organise and conduct entire force of
production, undertake uncertainty and give batter employment to others. Female entrepreneur as
monitoring and awing a business with having a more financial interest of 52% of the amount of
capital and providing atleast 52% of the job generated in the organisation to woman.
Male Entrepreneur: In each and every organisation, male entrepreneur is main and
foremost part of the enterprise growth and success (Carsrud and Brännback, 2011). They has
ability to create difficult judgements easily. They mainly focussed on achieving maximum
profits and revenues.
P2 Similarities and difference between entrepreneurial ventures
Difference and similarities between different types of entrepreneurial ventures, these are
determined as below:
Lifestyles Ventures and its similarities with
business
Serial Ventures and similarities with business
 This type of enterprise is established
with the motive of accomplishing
success and development of business.
 They only recruit knowledgable and
talented person who do all activities
and functions of business in an easy
manner.
 Laid emphasis on capturing maximum
number of market share and attracting
million audience towards business
innovation and its products.
 They mainly established and run start-
up's with new creativity or vision. They
emphasis on accomplishing desired
goals and objectives of enterprise.
 They also recruit talented and
knowledgable person who easily
complete all work in allotted time
period.
 Main aim of such business is to
achieving more revenues and profits as
compared to its competitors.
Difference Difference
 They are does not notifying their
financial venture or capitalist for their
developing stage.
 These kind of venture take
centralisation of ability and power.
 They maintain updating and modifying
finial venture regarding all things that
process place outside and inside the
organisation (Chittithaworn and et al.,
2011).
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 They can run their enterprise practices
in all over the world.
 They can establish their business in
certain nation.
 Decentralization of power as well as
authority.
Female entrepreneur and its similarities with
business
Male entrepreneur and its similarities with
business
 They principally emphasis on achieving
maximum development and capturing
higher market share (Chrisman and et.
al., 2012).
 They maintain on modifying their
goods as per the demand and
requirement of customers wants.
 Main motive of woman entrepreneur is
to acquire maximum competitive
benefits as compared to its challengers.
 They also focuses on achieving
maximum profits and growth of
company.
 They critically analysis the modifying
wants and requirement of potentials
clients and then aware their goods as
per that.
 Their enterprise aim is identical as
relation to woman entrepreneurs. They
also emphasis on accomplishing higher
competitive advantages.
Difference Difference
 Lack of confidence or capability as
relation to male entrepreneur.
 Slower judgements making procedures.
 Strong and good command in
leadership and communication power.
 They take maximum motivation level.
 Quickly take difficult decision of
business entity (Dacin, Dacin and
Tracey, 2011).
 Communication and leadership ability
are not batter as compared to woman
entrepreneur.
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TASK 2
P3 Small and micro business impact on the economy
Various kind of business venture or capabilities which is chiefly existence for an
entrepreneur in order to operate new enterprise. They are present in the way of micro, medium
and small, these are mainly depending on available resources and business owner.
Micro business: These type of business mainly managed and owned by an individual
with the motive of supporting the desire and requirement of their family or relatives. Sole-
proprietor operates such kind of venture to fulfil its basic wants and needs.
Small-Business: These kind of enterprise venture commonly running or operating in
local places. These are managed as well as owned by different number of person. In such
business, number of employees is minimum as compared to big organisation (Drucker, 2014). It
is an easier for them to determine dislikes and likes of target audience, so in this they can aware
regarding their services and goods as per their needs.
Medium Business: These types of enterprise establish on vest ground as relation to micro
and small companies (George and Bock, 2011). Main aim of this firm is to achieve maximum
ratio of profitability and grip agonistic position in marketplace. They provide different job
opportunities approx 300 to 500 to person who live in same country.
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Illustration 1: Micro and Small business Employment
(Source: Impacts on Various Areas, 2015)
Characteristic and Nature of Sole, Private and Partnership which are determined as below:
Private: These type of business established and operated by a single person. Shares of
this business are not issued among the public. They have about 50 stakeholder who mainly spend
their maximum amount of fund in the enterprise.
Sole-Proprietor: This business launched and operated by a single person who are
responsible for creating business operations and functions effectively (Grimaldi and et. al.,
2011). Main motive of this enterprise is to acquire maximum benefits and develop effective
framework in a systematic way. They needed decision making model and collect data about all
functions and activities of organisation.
Partnership: It is identify as connection between individuals who have united to share
profits, assets of enterprise bring on by each and every of them playing for entries. Characteristic
and nature of partnership includes some points such as agreement, Registration, number of
partners, Profit and Loss distribution, Business, Unlimited liability, entity, share in capital,
management, payment of tax, co-operation, No audit, partners are agent, transferability of shares,
dissolution and many other.
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There are chiefly four areas where affects of economy are described are as below:
Local Impact: Small-Business in specific country is directly affects on its economy
growth and development. In figure, there are about 92 percent small scale in the particular
nation. These area positively and directly effect on the economy which contributing more tax
excreting. It provides different changes of opportunities of job to unemployed person. So it is
essential because it reduce the unemployment rate in country. In each and every year, in the
country 64% job changes are available for the individual that are developing with the assist of
marketplace.
Regional Impact: Micro and small-business are effects on regional area in a positive way
within the nation. Both scales as well as various challenger are thoughtful in different elements
of marketing according to the superior in certain region (Kuratko, 2016). It will assist in reducing
unemployment rate at establishing level and developing new method for particular opinion. It is
directly impact on business situation and its activities effectively.
National & international effects: Small-Business and Start-up's ate plays an important
role in foreign and domestic ground which highly grow living standard of individual. In UK,
there are various number of facilities approx 25 million job opportunities are available for the
youth. There are about 1.6 million indirect jobs present for the persons. In a nation, approx 50
percent population of youth are working with private industry which finally increasing the
amount of corporate capital for a specific country. In the England, there are large number of the
person are working under private industry, that further support the legal authority in creating
policies and plans concentrated to that, it ultimately assists on business success and development
in a systematic manner.
P4. Importance of firm start-up's and small business to growth of social economy
Brexit: Both start-up's and small scale contributes vastly towards the development and
success of nation (Martin, McNally and Kay, 2013). In united Kingdom, Small-scale are growing
or increasing quickly which in move proves valuable for the growth of economy as Small,
Medium and large business are contributing about 30 percent in the entire development of
specific nation. Brexit has more and negative effect on the whole functioning and operations of
country SMEs. Approx 50 percent of the United Kingdom enterprise is generating maximum
revenue from start-up's and small-business. There are some significance of start-up's and small-
business on nation's development and success:
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Employment: SME's give various number of opportunities or changes to large number of
unemployed people on biggest level. They are also identify as a creators of job as they involved
in increasing the knowledge and skills of people by demonstrating them higher job changes.
More than twenty five million of people are functioning and working with start-up's and small-
scale.
Turnover: It identifies the whole sales series of the organisation throughout the time
period. Turnover ration of the specific Country is 1.8 trillion in which start-up's and SME's are
contributing approx 48 percent which is half of entire sales of nation.
Exports: In today's, each ad every company is commercialism their services and goods
outside the country. They are chiefly doing this for catching the maximum number of market
share of another nations as well (Naudé, 2014). Outputs of this is maximisation of sales and
profit of home country. Recently, Record of specific country export is 411 billion in which start-
up's and small-scale are involving approx 15 %.
Growth: Growth and development of the nation can be measured as various number of
employed or engaged people. It is mainly achievable when business renders huge job changes to
occupant of the nation. In United Kingdom, start-up's and small-scale are offering various
number of chance to different people, it is beneficial and valuable for its future success and
development.
Difference Between start-up's and small-business
Basis of difference Start-up's Small-business
Social and Economic
development
It is very beneficial for the
unemployed people because it
gives different changes to
them in order to improve
economic and social
development.
As compare to start-up's it was
less beneficial because it was
operates single persons. In this
less capital are require which
is essential for the economic
and social growth or
development.
Employment, Wealth
Distribution
Start-up's provide different
kind of job opportunities to the
unemployed people which
As comparison to start-up's,
small-business are give few
chances to person who are
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improve the living standard of
person (Santos, 2012).
living in specific country.
Enhance UK economic growth Large number of the job
opportunities improve the
economic growth and
development of United
Kingdom in an essential
manner.
Small-business are owned and
established by single person so
in this few opportunities are
available for the peoples. It is
also enhance growth and
success of United Kingdom in
a systematic manner.
TASK 3
P5. Skills, characteristic and traits of entrepreneurs
An entrepreneur can be determined as the person who has ability and knowledge to
establish new enterprise along with different kind of uncertainty (Storey, 2016). It is mainly
related with the motive of achieving maximum amount of revenues and provides in limited time
period. Bill Gates and Jeff Bezoz are two successful entrepreneurs in all over the world. Jeff
Bezoz is the founder of Amazon.com in 1994. Bill Gates is the co-founder of Microsoft
Corporation. There are various characteristic, skills and traits which are possess by both persons
are as below:
Knack for Innovation: Both entrepreneurs are well known as for its uniqueness and
innovation. It is very essential characteristic which is possess by Bill Gates and Jeff Bezoz in an
essential and effective way. With the help of this feature they easily increase their turnover and
sales as compared to another persons.
Hard worker: In regrades to attain development and progress of the business they require
to gain particular skills and quality (Welter, 2011). Both are hard worker in his industry so it is
very beneficial for them to accomplish long term objectives and targets.
Risk taker: Bill Gates and Jeff Bezoz are successful entrepreneurs who have capability in
order to deal with difficult situation effectively. They are work and function on uncertain
condition which impacts the entire operation and function of company in a positive as well as
negative way.
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Motivation: Both entrepreneurs are motivator which is beneficial for them to improve
profitability and productivity of employees in a systematic manner. One of the main
characteristic which is highly require in order to promote and encourage employees regarding its
work and performance.
Communication: In order to communicate easily with the all employees, it can help them
to increase their sales and turnover in limited time period. It is valuable in developing healthy
and friendly relationship with all workers.
Proactive: Both entrepreneur require to be proactive. In this trait they known that nothing
will become completed unless they set in the activity and take an effective action. This type of
skill can alter them to solve and foresee future issues.
P6 Entrepreneurial personality reflect entrepreneurial mind-set and motivation
Bill Gates and Jeff Bezoz is a successful entrepreneurs with their new plan in order to
develop innovative enterprise with a motive of making revenue. The qualities and traits of both
entrepreneurs is not same with together (Welter, 2011). When an individual establish innovative
business maximum ground of uncertainty established with it, it mainly lay on the individual
courage and determination in way of how deal with in an effective manner. In this Five factor
Framework are essential which is known as Big Five personality Traits are determined as below:
Openness top Experience: It depicts the creativity and curiosity of an individual.
Fundamentally, it determined the level to which an individual can be creativity as well as
imaginative (Bridge and O'Neill, 2012). This kind of power enable in order to deal with difficult
situation efficiently and effectively. High level of openness determined their creativeness or
imagination skills which get the cause for its huge competitive benefits in the marketplace as
compared to other challengers.
Conscientiousness: It describe how an entrepreneur in organised and well-developed in
the way of accomplishing goals of company in systematic and essential way. They deal or trade
with the critical condition systematically which instead of enactment spontaneously. An
individual with top ground of conscientiousness are very much demoralize, so it is not useful in
way of trading with different situations.
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Illustration 2: Big Five personality Traits
(Source: Big Five personality Traits of Entrepreneur, 2018)
Extraversion: It is mainly deals and trade with the information tendency of an individual
towards another things. In this they principally trade with the context in which they identifies its
view point towards various objectives (Brandstätter, 2011). High level of extraversion identifies
that an individual is care-seeker which is not essential for the goodwill of organisation.
Agreeableness: This analysis the person tendency towards getting co-ordinated and co-
operative among other employees or co-workers. This provides them advantages of acquiring
maximum competitive benefits as compared to other competitors. High level of agreeableness
often output in developing misunderstandings the individual get more dominant.
Neuroticism: It is identifies as the tendency of an individual in order to trade with
unpleasant emotions and feelings in ways of depression, anger, vulnerability etc.
TASK 4
P7 Experience and background of entrepreneur foster and finder entrepreneurship
Entrepreneurship is a best process and term which is mainly lay on capabilities and
knowledge of entrepreneurs (Awogbenle and Iwuamadi, 2010). They needs to know their
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background, education details and experience effectively. There are certain force that impacts on
individual power and skills that are described as below:
Family Background: It is essential and main factor of the entrepreneur success and
growth. Bill Gates and Jeff Bezoz family background is not match with entrepreneurship. It is
highly effects on its thinking and views which are not same from another factors.
Nationality: It is also important factor that assist in analysing culture of specific nation
effectively. Jeff Bezoz is mainly belong to New-York which pursue its passion and dreams level.
Bill Gates is a founder of Microsoft corporation in all over the world.
Social network: It is also known as an important and useful force that can effects on
whole community to communicate with them in direct way. Both entrepreneur are follows
different networking sites in order to provide essential information related to business operations
to the audience (Acs, Autio and Szerb, 2014). This source can hinder its personality as well mind
set in a negative and positive way.
Education: Bill Gates and Jeff Bezoz from their thoughts and ideas in order to
developing effective decision for the development and welfare of company. Education factor
also different with entrepreneurship which can hinder its mind set and personality in an effective
way.
CONCLUSION
As per the above mentioned report, it can be determined that entrepreneurship is an
essential process. Different kind of entrepreneurial venture and its relation with typologies of
entrepreneurship essential for the company in order to achieve long term goals and objectives.
Various kind of entrepreneurial ventures has similarities and difference to increase sales and
turnover. Small and micro business effects on the economy of country in different level such as
international, national, regional and many other. Both types of business are essential for the
unemployed person which enhance the economic growth and development of country. Big Five
personality Traits of Entrepreneur model is essential which define entrepreneurs skills, traits and
characteristic in an essential and systematic manner. Entrepreneurs power, traits, background and
experience highly effects on its mindset and personality in a negative and positive way.
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REFERENCES
Books and Journals
Acs, Z. J., Autio, E. and Szerb, L., 2014. National systems of entrepreneurship: Measurement
issues and policy implications. Research Policy. 43(3). pp.476-494.
Awogbenle, A. C. and Iwuamadi, K. C., 2010. Youth unemployment: Entrepreneurship
development programme as an intervention mechanism. African Journal of Business
Management. 4(6). p.831.
Brandstätter, H., 2011. Personality aspects of entrepreneurship: A look at five meta-analyses.
Personality and individual differences. 51(3). pp.222-230.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small
business. Palgrave Macmillan.
Bruton, G. D., Ahlstrom, D. and Li, H. L., 2010. Institutional theory and entrepreneurship: where
are we now and where do we need to move in the future?. Entrepreneurship theory and
practice. 34(3). pp.421-440.
Carsrud, A. and Brännback, M., 2011. Entrepreneurial motivations: what do we still need to
know?. Journal of Small Business Management. 49(1). pp.9-26.
Chittithaworn, C. and et al., 2011. Factors affecting business success of small & medium
enterprises (SMEs) in Thailand. Asian Social Science. 7(5). p.180.
Chrisman, J. J. and et. al., 2012. Family involvement, family influence, and family‐centered non‐
economic goals in small firms. Entrepreneurship theory and practice. 36(2). pp.267-
293.
Dacin, M.T., Dacin, P.A. and Tracey, P., 2011. Social entrepreneurship: A critique and future
directions. Organization science. 22(5). pp.1203-1213.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
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.
Grimaldi, R., Kenney, M., Siegel, D.S. and Wright, M., 2011. 30 years after Bayh–Dole:
Reassessing academic entrepreneurship. Research Policy. 40(8). pp.1045-1057.
Kuratko, D.F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Martin, B.C., McNally, J.J. and Kay, M.J., 2013. Examining the formation of human capital in
entrepreneurship: A meta-analysis of entrepreneurship education outcomes. Journal of
Business Venturing. 28(2). pp.211-224.
Naudé, W., 2014. Entrepreneurship and economic development. International Development.
Ideas, Experiences and Prospects.
Santos, F.M., 2012. A positive theory of social entrepreneurship. Journal of business ethics.
111(3). pp.335-351.
Storey, D. J. ed., 2016. Entrepreneurship and new firm. Routledge.
Welter, F., 2011. Contextualizing entrepreneurship—conceptual challenges and ways forward.
Entrepreneurship theory and practice. 35(1). pp.165-184.
Online
Impact of small-business in UK economy. 2017.[Online].Available
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through:<http://smallbusiness.chron.com/important-small-businesses-local-economies-
5251.html>
What is Entrepreneurship?. 2017. [Online]. Available through:
<http://www.businessnewsdaily.com/2642-entrepreneurship.html>.
Big Five Personality Traits of Entrepreneur. 2018. [Online]. Available through:
<https://catalog.flatworldknowledge.com/bookhub/5?e=carpenter-ch02_s01>.
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