The Role of Entrepreneurship in Economic Development

The provided assignment delves into the significance of entrepreneurship in driving economic growth and development, encompassing both theoretical frameworks and practical implications. It discusses the differences between entrepreneurial ventures and small business owners, as well as the impact of Small Medium Enterprises (SMEs) on local communities and national economies, including the UK's economy in the context of Brexit. The assignment also touches upon the skills required for successful entrepreneurship and presents various academic sources and real-world applications to support its arguments.

Entrepreneurship

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types of entrepreneurial ventures and its relation with typology.......................1
P2: Similarities and differences between entrepreneurial ventures........................................3
TASK 2............................................................................................................................................4
P3 Interpret data to define the impact of small businesses on an economy...........................4
P4 Importance of small businesses to the growth of social economy....................................6
TASK 3............................................................................................................................................7
P5 Characteristic, traits as well as skills of successful entrepreneurs....................................7
P6 How entrepreneurial personality reflect their motivation as well as mindset...................8
TASK 4............................................................................................................................................9
P7 Using relevant examples, how background and experience can hinder or foster
entrepreneurship.....................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneurship is a very important part of any economy. The term business enterprise
assumes a powerful part in development and accomplishment of an economy and enhancing
expectation for everyday comforts of the nation. As a start-up Entrepreneur it is basic for
individuals to improve their business. Alongside this business enterprise additionally includes
constant pursuit of different thoughts which depend on creating new and imaginative items and
administrations. To set up an entrepreneurial wander it is basic to view three perspectives, for
example, – the entrepreneurial activity, tasks and promotion. The present contextual analysis is
appraised to Joe woods who is an effective business visionary and has been working together
from most recent couple of years effectively, He has possessed the capacity to deal with his IT
business Successfully. An appropriate discourse will happen with respect to his capacities and
the sort of qualities that he forces, which helped him in making the level of progress that he has
achieved. Various entrepreneurship and their typologies are discussed in this report, also various
factors that fosters or hinders entrepreneurship is discussed (Barringer, 2012).
TASK 1
P1 Different types of entrepreneurial ventures and its relation with typology
For the purpose of conducting a business, there are various entrepreneurial ventures that
can be pursued by an individual entrepreneur. Enterprise comprises with the idea of advancing
and dealing with a business venture for the purpose of making profits and growing business in
the longer run. Alongside this, by executing a business element business visionaries contribute
their cash and draw in speculators through their new thoughts. It assemble open riches and
enables people to get profits by developing organizations, Powerful running of independent
ventures is absolutely rely on the risk taking capacity of a person here they have chosen. In this
manner, it is fundamental for people to recognize the Gaps in the market and create items which
can fulfil needs and needs of individuals and improve their lives (Baum, Frese and Baron Eds.,
2014). It will assist them with attaining high market development and imperativeness. Following
is characterized a few sorts of entrepreneurial Ventures, such are expressed as under: -
Scalable start ups entrepreneurship - These organizations, for the most part recently
made, are in a period of advancement and research for business sectors. The principle intention
of versatile new companies is to decide new innovations and instruments for making simpler
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individual life. These organizations are built up keeping in mind the end goal to create and
approve a versatile plan of action. Albeit, the greater part of the versatile new companies get
disappointment however a couple those get succeed have turned out to be extensive and
powerful.
` Small business entrepreneurship – These undertakings likewise give advertise
development to the economy of the country and lessening joblessness and different issues from
social orders. Entrepreneurs have good thoughts which likewise helps in enhancing expectation
for everyday comforts of individuals. It includes, small stores, offices and so on. An individual
opens these sort of undertakings just to satisfy keep up budgetary strength of his or her family by
earning necessary maintenance earnings for the same. These business people additionally don't
confront high dangers and vulnerabilities by operating at commercial level. (Bosma and Levie,
2010).
Social entrepreneurship – For this reason, social business visionaries makes different
projects so as to bring constructive change inside social orders and furthermore enabling them in
order to expand the entries and develop its effect over local networks and lives of individuals by
advancing compelling devices and assets. These entrepreneurs helps in accumulating capital for
the founders in an effective as well as efficient way.
Large entrepreneurship – It is a process of advancing new thoughts and deciding
business openings in a previous firm and afterwards prompt new business ventures in order to
upgrade benefit of a business association. Hence, it builds rivalry position of the organization at
commercial centre. Because of radical needs of clients, new innovation and new contestants over
market make weight upon business organizations which tend towards corporate entrepreneurship
(Bruton, Ahlstrom and Li, 2010)
Typology of Entrepreneurship
Serial entrepreneur – It incorporates those business people who dependably come in
showcase with new and creative thoughts keeping in mind the end goal to begin their business
exercises. They take activities to take part in everyday operational exercises of the firm.
Furthermore, the fundamental goal of serial business visionary is to make a high produced
beneficial Venture in a less period of time and furthermore gives duties as well as responsibilities
to other people's who have ability to work on these ideas in an effective as well as efficient
manner.
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The copycat entrepreneur – A copycat business person entrepreneur tries to duplicate
another business visionaries as the individual embraces techniques and strategies of fruitful
business people and actualize them in their business. In this technological world, it is anything
but difficult to take somebody's plan of action and make it claim in order to increase high market
development and achievement. Copycat business visionaries imagine that by securing others' key
achievement they additionally will develop their business in market and accomplish their
objectives and goals also (Dacin, Dacin and Matear, 2010).
The researcher entrepreneur – These are the general population who cherishes to learn
and examine new things constantly. So as to enhance their intensity in advertise, Researcher
entrepreneurs people accepts to acquire and more learning and see all parts of business exercises.
After this, they execute any idea in their business by guaranteeing that it will give high
development to their start up. Learning encourages individuals to accomplish their vision and
mission in a specific time period in an effective manner.
The determined entrepreneur – These business people are exceedingly devoted towards
their work and willing to do any conceivable task as well as action in the most ideal way. The
concerned entrepreneur Venture sees that it is possible to achieve without replicating anything
from anyone; Own thoughts as well as ideas will give high market development. They are
prepared to do each and everything to develop and differentiate their business from the rest
(Defourny and Nyssens, 2010).
P2: Similarities and differences between entrepreneurial ventures
There are huge number of small enterprises exist in UK market in order to achieve their
different objectives and aims. All such entrepreneurial ventures have some similarities and
differences which are given as below:
Basic Similarities Differences
Lifestyle and serial
entrepreneurs
The common similarity
between such two are they
both hit the overall target of
customers on exact time
through having number of new
ideas and concepts which
The differences among two are
based on their objectives. For
example, Lifestyle
entrepreneur has objective to
enhance their lifestyles
whereas serial entrepreneur
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easily attracts people. has main objective to survive
in market for longer period of
time.
Males and female
entrepreneurs
Both such entrepreneur has
common objectives which are
earning huge revenues through
achieving greater customer
strengths.
In society, mostly people make
believe that make entrepreneur
are more in confidence and
motivation as compared to
female entrepreneurs.
Small and large scale
entrepreneurs
Both have common goal to
achieve huge market share and
viability through offering new
and better quality products to
maximum number of
customers.
Small scale entrepreneur are
mainly focusing on earning
huge profits whereas large
scale entrepreneur mainly
focuses on sustaining in
market for longer period of
time.
Social scaleable and
entrepreneurs
Both such entrepreneurs are
established with an objective
of changing scenario of overall
worlds through developing
new tools and techniques that
increasing the standard of
living.
Social scaleable entrepreneurs
are mainly focuses on
maximising the loyalty and
customer satisfaction instead
of earning profits whereas
entrepreneur mainly focuses
on earning profits.
Venture Similarities Difference
Small and social
entrepreneurial venture
In the both small and social
venture, business person
implements innovative ideas
and creative business ideas in
firm.
Small venture aims to develop
and maintain their effective
position in the market and
build brand value.
Scalable start-ups and wide Both types of venture used to Scalable start-ups are venture
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entrepreneurial venture delivery various items and
services in accordance to
demands and need of people.
Business individual make
changes and implement
innovative technologies in
system to deliver creative
products and service to the
customers.
that are needed to use
resources effectively for the
purpose of expending their
business and earnings.
While, large venture have
resources in sufficient amount
which define that firm can
have large market reach and
client base.
Lifestyle and survival
entrepreneurial venture
Both venture need to generate
appropriate amount of profits
for maintaining their market
share and position in near
future time.
Lifestyle venture are operated
by individual for
accomplishing their passion
and market money for their
livelihood (Differences
between entrepreneurial
ventures, 2018).
TASK 2
P3 Interpret data to define the impact of small businesses on an economy
It has been sketched out in these couple of past years that, private companies undertaking
expects a key part concerning judicious condition of a country (Delgado, Porter and Stern, 2010).
Three sort of associations are generally working in UK which are Small, medium and substantial.
Each and every such kind of business has far reaching impact on economy of UK. Their business
work also helps in production of society. Beside this, UK government additionally reinforces
these small firms in various ways like diminishing duties etc. as they understand that these small
ventures have offered openings for work to the greater part individuals in United Kingdom. With
respect to developing economy of nation, these autonomous ventures can put influence in both
ways insistently or conflictingly. In this way, it is vital for government to proceed with
promotion lobbing admission and import rates, Gross Domestic Product rates etc.
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These undertakings for the most part offer activity to jobless people who have basic
needs. In view of the exit of UK from European Union broad number of threatening impacts are
showed up on their economy. The organization finds the best way to deal with vanquish from the
effect of BREXIT is to propel pretty much nothing and littler scale business practices in nation.
As this will gives broad number of business openings, headway of establishment, departure of
joblessness, increase stream of exchange out an economy etc. Thusly, with respect to
improvement and progression of privately owned business works out, UK government design
different methodologies as well as systems (George and Bock, 2011).
Micro as well as Small businesses and their Contribution within the growth of UK
Particular Number of Employees Assets Total Annual Sales
Micro-Enterprises <10 ≤ £2 m ≤ £2 m
Small Enterprises <50 ≤ £10 m ≤ £10 m
Medium sized
Enterprises.
<250 ≤ £50 m ≤ £43 m
Employment Creation – In UK, over half of the population is employed with private
organisations; more than 30% individuals are giving their administrations in private venture
associations which are small. Every one of these exercises helps with enhancing expectation for
everyday comforts of individuals in regard of raising level of income which additionally create
money related strength of individuals.
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(Source: Local impact, 2016)
Interpretation: According to the above chart, it can be determining that small firms can
reduces unemployment rates of UK. From 2009 to 2015, there is increase in jobs from 30 lacs to
60 lac because of SMEs growth (The impact of small businesses on an economy, 2018).
Infrastructural Development – In past decades, independent venture additionally
contributed in creating framework of the country in immature or underdeveloped regions.
Because of satisfying corporate social obligations, these organisations are having a tendency to
enhance foundation of a particular zone; they likewise give fundamental facilities to individuals,
such as – correspondence facilities, transportation and and so on (Hall, Daneke and Lenox,
2010).
Decrease in Unemployment – After Brexit, UK economy has confronted joblessness,
thus a few limited time exercises are presented by government regrading expulsion of
unemployment and Poverty from the region. Government Supports make an individual more
confident as well as autonomous. It additionally creates standards of local society as well as local
networks.
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Illustration 1: Local impact

(Source: Impact of SME's on economy of UK, 2017)
Analysis: From the above graphs, it has been analysing that small firm employment rate is
48% which is more than a medium 12% and large 40%. Besides this, turnover of small is 37%
and medium is 15% which is lower than large that is 49%.
P4 Importance of small businesses to the growth of social economy
Brexit and Its Impact on Economy
The term which is attempted by government in 2016 is Brexit; under this section UK
withdrew from European Union. Also, the example has contemplated on 23rd June when nearly
individuals had voted UK rather than Europe. Since before Brexit huge number of affiliations are
influenced by government choices; it would likewise have diminished per capita salary of the
country. Though various were likewise introduced, i.e. exchange boundaries while leaving EU.
Pay created from government sources get likewise lessened. For instance, destruction of fares
from different nations into EU.
Threats of Brexit on UK: Because of this incident, economic growth and trade of UK
was affected. This tactic would have negative impacts on nation that is export were growing at
slower rate. Beside of this, EU economic confidence was declining which is primarily effect on
the condition of developing countries (Threats of Brexit on UK, 2018).
Although, independent company assumes a compelling part in development and growth
of an economy as far as expanding openings for work, Reduction in poverty Level,
Unemployment, improvement of trade exercises in UK and equivalent disbursement of wealth
and so forth. These enhancements in various regions vastly affects society and UK' economy.
The following is characterized significance of private companies is expressed as under: -
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Illustration 2: Impact of SME's on UK's
economy

Monetary help – While UK exit from EU, businesses confronted the circumstance of
melancholy as after this they can't manage European Unions. In this manner, to advance
corporate affiliations, government bodies arranged different procedures and strategies which
bolsters business people to build up their business wanders. It renders money related help to new
business new companies and additionally decreases charge rates, permits remote speculations
that is extremely valuable for facilitate development and advancement of the country (Kirzner,
2015).
Producing work openings – As private companies are building up at wide range and
developing quickly. Hence, with a specific end goal to perform working exercises and
undertakings SMEs require large workforce which expands business opportunities for
individuals. All these openings for work exceptionally contribute in development and
improvement of social orders, i.e. raises expectation for standards of livings of individuals,
lessening impoverishment and so on.
Improvement of UK universal exchanging – Before Brexit, trading area of United
Kingdom was absolutely depending upon European Unions, yet after this reliance get
diminished. Along these lines, government bodies have built up specific strategies which
advances worldwide exchange and enables outside financial specialists or foreign investors to
put resources within the nation. Because of raising rate of new pursuits, fares will likewise
increase that backings in prospering business sector position of UK over the globe (Kuratko,
2016).
Difference among small and start-ups:
Basis Small Start-ups
Definition Small firm are incorporated by
individual to generated income from
their living standards. like this,
products as well as services are
delivered in respect to fulfil demand
of various customers.
An entrepreneurs set up new business
for overall implementation of new and
innovative aspects to the market
situations.
Rate of
growth
Small firms would have low growth
rate because of large number rivals.
Start-ups growth rate is higher than
small as operations are executed in
creative and unique manner to assist
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the entrepreneurs.
TASK 3
P5 Characteristic, traits as well as skills of successful entrepreneurs
Steph Croft-Simon is an organizer of Nom Foods which was established in 2015; the
speciality unit is concerned towards people's and inventing proper arrangement by creating sort
out items, i.e. popcorn. It was a first natural popcorn of UK. She says, “I know there was an
abundant scope of popcorns are accessible in market yet every one of them are made up with
counterfeit or artificial flavours; along these lines the idea of natural or organic popcorn backings
to draw in vast number of people. Since in this cutting edge time, individuals are getting more
wellbeing conscious.
Alongside this, further characteristics for Steph are – enthusiastic, risk taking capacities,
exceptionally energetic, diligent employee, self-devotee, solid commitment level, versatility and
adaptability in nature, critical thinking attitude and so on encourages the woman to begin another
business venture. Then again, principle abilities of Steph are – solid relational abilities, great
instructive foundation, inventiveness, great organizer, timeliness; all these identity characteristics
causes a person to end up living a successful life. Having such capacities, Steph empowers to
manufacture positive market generosity of her organization, i.e. Nom Foods (Martin, McNally
and Kay, 2013).
Hard working and dedicated: This is one of the essential attribute which would assist
an individual to conduct activities and timely attainment of aims and objectives. Steph and joe
are more hard worker with full dedication that can aid them in making business more successful.
Flexible: This is another trait which an entrepreneur wants to accomplish firm to endure
its position in market. It is essential that they have nerve to supports accept unforeseen situations
which occur due to presence of enterprise into a dynamic environment (Skills of successful
entrepreneurs, 2018).
The comparison of Steph can be made from Joe woods, He is also an individual who
started an IT business on his own and has led it successfully over period of time. He was
graduated from a local UK university and he has been regarded as one of the most influential
personality of his university because of the entrepreneurial skills that he possessed. Joe Woods
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has raised up from a middle class background and has been able to show up his capabilities to the
world through the success of his IT Business within the market.
P6 How entrepreneurial personality reflect their motivation as well as mind-set
Business visionaries' identity is as same as a director of the organization. According to
the contextual investigation, Joe Woods has an administration identity which mirrors his working
nature also. He sorted out various preparing programs so as to improve between individual
abilities and expert aptitudes of individuals; it comes about they are empower to work in a more
creative as well as effective way. UK Government likewise helps in promotion of abilities of
business visionaries as they can begin their own business. In any case, in this advanced period,
every person has their own identity which is hard to comprehend; the conduct of business
visionaries can be comprehend by OCEAN hypothesis; it’s a major five model which influences
a person's identity, for example, -
Openness – It portrays that how an individual express their inclination and feeling before
others. By utilizing this characteristic, Entrepreneurs can without much of a stretch pass on their
messages to others; it will construct certainty and vanity among them, along these lines business
choices can be taken in a proper as well as effective way. As indicated by the contextual
investigation, Joe Woods is a man who centres around finding different opportunities (Neck and
Greene, 2011).
Conscientiousness: This perspective includes different features like goal oriented,
thinking about others, innovative, focus etc. these are signs of a successful entrepreneur. These
features allow them to attain overall objectives in an effective as well as efficient manner.
Extraversion – Person with extraversion nature effortlessly share their thoughts with
everybody; they have fearlessness which underpins them to accomplish authoritative objectives
and destinations. Some extraversion identities are garrulous, exceptionally enthusiastic,
Excitability, friendliness in nature.
Agreeableness - In this, individuals have highlights like – trust, love, benevolence, star
social and consideration and so forth. Joe Woods isn't pleasantness characteristic as he can't
impact individuals and take vital choices at own level (Sarasvathy and Venkataraman, 2011).
Neuroticism – Sadness, shakiness, low feeling, tension, temperament swings, irritation
and so forth are the fundamental characteristics for neuroticism individual. A few people have
this sort of nature however their engaged nature causes them to achieve career development.
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According to the contextual analysis, Joe Woods has Neuroticism nature which constrain him to
do new things while passionate soundness bolsters him to work successfully without mind-set or
mood swings.
TASK 4
P7 Using relevant examples, how background and experience can hinder or foster
entrepreneurship
There are various factors that either foster or hinder entrepreneurship of an individual,
thus it is essential that those factors are analysed in a proper manner so that a proper learning
regarding the same can be made in an effective as well as efficient manner. These factors can be
the background from which an individual belong like the family situation, upbringing, education
gained over period of time etc.
Individual foundation has affected business visionary reasoning, conduct, mentality,
recognition and some more. So that, its specifically identified with business part and obligations
results. Joe Woods has made due with some medical problems and its Ventures in their working
social for instance, they are work for advancement of solid nourishment for give great sustenance
to their customers.
Business person foundation and also their experience from their life may affected their reasoning
capacity and impacted it by both courses constructive and also pessimistic. So that, managers are
recognize their objective fragment appropriately deliver and effectively fulfilling client needs
and wants effectively (Schaper and et. al., 2014).
The business person that has been talked about in the present case is Joe woods, his
experience was very unassuming still he has possessed the capacity to think past box and has
done fundamental diligent work to accomplish what he did today. He has likewise experienced a
portion of the different legitimate clashes which has thwarted his development in the IT Business
and additionally area. These contentions were identified with legitimate issues looked by his
Venture and different controls and so on (Landes, Mokyr and Baumol eds., 2012).
CONCLUSION
According to the previously mentioned report, it gets presumed that business enterprise is
an interdisciplinary and in addition multidimensional field which is very contributing in
development and advancement of a country. In UK, there are a few entrepreneurial wander
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building up keeping in mind the end goal to increase high benefits edges and deals incomes. In
any case, because of imperative reverberation of extensive organizations, it is very troublesome
for private companies to develop and expand; for this they require a remarkable or clever
thought. The report has portrayed distinctive sorts of entrepreneurial Ventures, for example,
social business people, saleable new companies and so forth. Independent companies have vast
effect on monetary position of the country as far as creating incomes and lessening destitution
also.
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