Entrepreneurship: Theory and Practice

This assignment delves into the core concepts of entrepreneurship, examining various theoretical perspectives and practical applications. It analyzes the role of entrepreneurship in job creation and economic growth, while also exploring the influence of education on entrepreneurial attitudes and intentions. The assignment further investigates different types of entrepreneurship and provides insights into the emergence and discovery of entrepreneurial opportunities.

ENTREPRENEURSHIP

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Types of entrepreneurial ventures and its typologies...........................................................1
P2. Similarities and differences between entrepreneurial ventures............................................2
TASK 2............................................................................................................................................4
P3. Effect of micro and small businesses nation's economy.......................................................4
P4. Value of contribution by SME towards the society and economy of the country................6
TASK 3............................................................................................................................................7
P5 Traits and skills of successful entrepreneurs.........................................................................7
P6 Aspects of Entrepreneurial Personality..................................................................................9
TASK 4..........................................................................................................................................10
P7 Ways in which background and experience hinder and foster entrepreneurship.................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
An individual who have a unique idea for starting and running a business entity is defined
as Entrepreneur and venture that he runs is called as enterprise. Entrepreneur is a person whom is
responsible for all decisions and strategies formulation in his venture. Entrepreneurship is a
process of running a business house by a single person who is states as entrepreneur and the
venture he is running is an enterprise. An individual is a person who have a different sort of ideas
that make him distinct from his rivals. By producing goods or services with a divergent idea is
able in gaining competitive advantages at marketplace. In United Kingdom, Austin Fraser is an
enterprise which is conducting there operational activities very efficiently. This small
corporation is a consultancy service provider in area that serves those people who want some
guidance in their carrier and personnel development(Kirzner, 2015).
TASK 1
P1. Types of entrepreneurial ventures and its typologies
To run business in a successful manner it is mandatory for management to have sufficient
employees who helps them in finishing up all operational activities (The Four Types of
Entrepreneurship. 2011). This helps them in hitting targets in both effective and efficient
manner. In this context, four entrepreneurial ventures that has been made by governmental
agencies are mentioned below:
Small business entrepreneurship: People starts business like small departmental stores,
plumbers, carpenters and etc can come under this sector. In this, entrepreneurs do not form much
revenue and profit is also being earned in a diminutive amount only. Away from this, main
reason to form these organisation is to give security to their family members which are related to
shelter, funds and etc. This type of firm can come under survival typology where entrepreneurs
aims is to become financially strong by which regular needs and wants of his/her families can get
fulfilled. Apart from this, they also have to put efforts for staying at marketplace for a long
period of time. This can be done in many ways like, delivering quality goods and services to
consumers or making modifications in operations if needed. High risk stay involved under this as
mostly these entrepreneurs takes loan from banks (Drucker, 2014).
Scalable start up entrepreneurship: Under this type, organisations gets raises at
marketplace by time. Investors provide funds to entrepreneur whenever it is required. Scalable
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business contains high risk and by this most of people cannot sustain at marketplace for a long
period of time. It is mandatory for making changes in operations which are related to quality of
products and services for maintaining the relations for a long period of time with consumers.
Entrepreneurs who are aggressive in nature come under this type of entrepreneurial venture. In
this context, aggression means to form policies by which employees stay happy while working in
organisation and apart from this, these ventures also apply ample number of innovative ideas that
dissent them from its competitors. High profiled quality products gives opportunity to attract
consumers in a huge amount.
Large corporation entrepreneurship: In modern era, this can also be understand as
corporate entrepreneurship. It is mandatory for these organisations to keep on maintaining all the
operational activities from time to time (Kuratko, 2016). Innovative products and services which
has been delivered by them in all over world gives opportunity in improvising sustainability at
marketplace. Under this, analyst pulls up all details which are related to consumers and also
about market. This helps them in making modifications in products and services to boost the sale
of them. This process can lead them in improving both productivity and profitability.
Social entrepreneurship: Objective of this type of venture is to improve social people.
Under this, entrepreneurs keep on looking towards needs and wants of people who are in need
and after that forms or manufactures products or gives services to them in free. This lead them
towards enhancing standardisation of citizen of nation. Governmental agencies also provide
funds to these firms in betterment of organisation.
Male entrepreneurship: In modern era, it has been examined that most of organisation
have male entrepreneurs. These business person have same objectives and that is making profit
by delivering quality goods to consumers as per their needs and wants.
Female entrepreneurship: It has been summarised that a female entrepreneur has also
same sort of goals and objectives just like male entrepreneurs. But, it can get differentiated when
owner of an organisation who is a female makes products that fulfil needs and wants of females
(Burns, 2016). These entrepreneur can easily empower women.
P2. Similarities and differences between entrepreneurial ventures
Organisations that has been mentioned above have some differences and few similarities. Both of
these have mentioned beneath:
Lifestyle Ventures Serial ventures
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Similarities
 Under this, ventures mainly aims to
motivate its employees by which
organisation can hit targets for a long
period of time.
 Hiring talented staff members can
improvise productivity of firms.
 Improving standardisation of social
people is the main another objective of
this type of ventures (Storey, 2016).
Similarities
 These organisations also have same sort
of aims and objectives like achieving
targets in a short period of time so that
sustainability can get improvised for
long term.
 Selecting members so that firm can
improvise quality of its products by
many innovative ideas.
 Attracting consumers from both
domestic and international level by
delivering commodities to them as per
their needs.
Differences
 Improvising standardisation of people
of society is the main motto and along
with this, they provide quality goods
and services to need people.
 Government provide funds to these
ventures for betterment of citizens of
United Kingdom.
Differences
 Improving brand image is an essential
part of these organisation by providing
consumers products as per their needs
which also helps them in sustaining at
marketplace.
 They modify their products by which
they can keep interest of consumers in
their commodities.
Female Entrepreneur Business
Similarities
 Main objective of this type of
entrepreneur is to make profit by
selling their products and services.
 Manufacturing goods with innovative
Male Entrepreneur Business
Similarities
 Similarly, these also have same sort of
aims and objectives to make revenue
and earns profit (Schaper and et. al.,
2014).
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ideas lead organisation to a huge level
where advantages can be gained in
competitive world.
 Giving satisfaction to consumers by
delivering of quality products and
services. This also aid them in giving
rivalry to competitors at marketplace.
Differences
 It has been found that females make
much effective decisions that gives
them better opportunities at
marketplace then men.
 These entrepreneurs have innovative
set of mind that gives them ideas of
making unique products and delivers
them to consumers.
Differences
 They uses ample number of traditional
styles and do not tends to apply mind in
making new and innovative
commodities so that sale of products
can get increases (Bruton and et. al.,
2015).
 Influencing investors to provide funds
for executing plans became essential in
modern era. But, it becomes hard for
these type of entrepreneurs to grab
attentions of capitalists.
TASK 2
P3. Effect of micro and small businesses nation's economy
Being an owner of small business is challenging but empowering also. Each owner has its
own reason for pursuing self-employment. Small businesses play an important role when it
comes with economical conditions of a country. Since these businesses are not generating much
revenue individually as compared to larger ones but instead of this, they perform vital role to the
success of economy (Bhachu, 2017). Following are some premium ways that small businesses
contributes in their country:-
 These companies provide opportunities in achieving financial independence.
 They encourage innovations also.
 They are creating much employment opportunities.
Due to these reasons, Government of the UK, supports these companies by providing
funds, tax relaxation and etc. It has also observed that small firms put impacts on economical
conditions. For an example: In 2017, approximately 7.8 million people engage in a these firms
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ran their businesses in a desired way. Apart from these, 80% has affected much on growth and
development of economy. At current level at-least 5 million small enterprises that mentioned just
double of it that was in last decade. SME is intended for small and medium sized companies with
high potential and growth.
In today's competitive world, identification of companies are becoming much complex.
Therefore, in order to classify them on the basis of their normal requirements these can be
distinguished as below:
Micro Business: It is generally defined as a small business that give employment to fever
people. These companies are having 2 or 3 million pounds turnover which is much less than a
certain amount. These companies are being classified by government agencies which includes
stores, carpenters departmental and grocery stores etc. These type of companies need not much
investment so, they either introduce capital of their own or by taking loan from banks (Glaeser,
Kerr and Kerr, 2015).
Small Business: These companies are just like micro level, differ in the manner that they
are not big but not so small also. These firms include less or near about 50 members having
turnover more than 5 million but less from 10 million pounds. They are always engages in
innovating new ideas and try to implement it in their businesses. This would help them in their
business expansion that helps in increasing more revenues also.
Medium Business: These companies include more than 50 but less to 250 workers in
their business. Their turnover also exceed more than 250 million pounds. These companies
mostly run their businesses through partnerships. In this partners do agreements on taking share
in profit or loss according to their contribution in business. These companies run their businesses
mostly by focusing on to earn money. They are also provide their contribution in CSR activities
which helps in developing quality of life of societies.
The areas where small and medium sized companies i.e. SME impact are mentioned as below:
Employment: Since these companies are mostly do their business on two fundamentals
for reducing poverty via job creation and economic growth. On surveying in different areas of
UK, it has been calculated that most employees are engages in SME. These companies demand
not much experience or qualifications from persons (Bae and et. al., 2014). This proves
beneficial for many persons to gain experiences over there.
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Foreign Direct Investment: FDI is an investment made by companies or individual ones
are mostly work on gaining much profit.
P4. Value of contribution by SME towards the society and economy of the country
Brexit took place in the year of 2016, The decision which was taken under this term, was
that United Kingdom has been separated from European Union. On 23 June 2016, 51.9% of
voters elected UK out of EU.
Distinction betwixt SME and start ups mentioned beneath:
Basis Start ups Small Business
Expectation and Rate of
growth
Entrepreneur forms business
with ample number of
innovative ideas. Then ample
number of consumers attention
can be grabbed (Fayolle and
Gailly, 2015).
These businesses are smaller
than start ups. Apart from this,
they make profit but not in a
huge amount for surviving in
worlds.
Finance Funds plays an important role
in every organisation while
forming out a plan and
executing it. Under this, most
of investors keeps an eye on
start-up's and easily gets ready
if his/her aims are same as of
an entrepreneur.
Under this scenario, small
business enterprises do not
need much funds in doing
daily operational activities.
These business persons
generate revenue in small
amount. Funds can be raised
from banks and from home as
well.
Nature of the Idea New and innovative ideas keep
on building up interest in
talented people to form out a
brand new enterprise.
Under this, management of
small business industries keep
on following traditional
structures that have learnt from
others.
These start ups and small businesses, have same sort of objectives like earning profit by
delivering goods and services to consumers as per their needs but works in different ways
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(Davidsson, 2015). Apart from this, they both focuses on enhancing their business at
marketplace.
TASK 3
P5 Traits and skills of successful entrepreneurs
An entrepreneur is required that he must possess some skills and trait because these
virtues are necessary in order to perform all task and duties in most efficient manner that could
generate more profits for association. This action is helpful in personnel and professional
development as an enterpriser. There are various type of salient features that an entrepreneurial
person must assist and these are described as beneath:
Passionate: This is an attribute which is necessarily be possessed by business owner in
order to make his enterprise successful at marketplace. This type of personality trait is helpful in
hitting all targets in shorter span of time. Remarkable position of corporate entity in marketplace
depends upon activities which are done by full passion and enthusiasm. Passion shows devotion
of entrepreneur towards their enterprise's operational task performance (Decker and et. al., 2014).
Optimistic: A person who started or is about to start a business entity then he must keep
his eyes open in order to see and observe all opportunities that are available in market. An
optimistic individual must be enthusiastic and positive so that he can attain all growth chances to
develop association's operation. This kind of enterprisers are always positive and look for his
employees growth and motivates them to complete all task in allotted time.
Confidence: If a person who is not confident then he can not make efficient and effective
decisions and could not reach to a judgement. This type of understanding of venturer reduces
growth chances and diminishes productivity of corporate. Lack of confidence is a flaw of
personality and without this effective working could not be promoted in company. Without this
attribute conducting business operations can not be run easily. It is a most important trait that has
to be developed by entrepreneur.
Thinker: Person who is running an enterprise must be a thinker as he is a person who
have different way of thinking which makes him an entrepreneur and enables him to gain mall
competitive advantages at market (Terjesen, Hessels and Li, 2016). Smart thinking can improve
productivity and promote innovative working in association.
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It is necessary for an individual that he must have some attribute and talents in order to
fulfil all demands and to hit all targets in most feasible time period. If personnel have some
distinct qualities in his personality then ha can assure his ventures survival in industry for longer
period of time by attaining competitive advantages.
There are some particular features that an entrepreneur should have to build in their character
and explanation are below:
Communication: Enterpriser must convey his expectations from his subordinates
accurately in reply to cater demands of enterprise as well as customers. By communicating all
missions and objectives to juniors management can gain goals in limited span of time. Once
people of enterprise get to know that what they have t do and in which time it will be completed
then they can conduct their activities in bets format but this can be possible when all objectives
are properly communicated to workers. So it is very clear that communication is very important
to achieve all targets that are necessary to growth of corporate (Suddaby, Bruton and Si, 2015).
Decision-making: It is a responsibility of venturer that they must utilize some tools and
techniques to grab all opportunities that are present in marketplace and essential to secure a
remarkable position in marketplace by completing all demands and needs of clients. Which
action how to be done so that it can generate more benefits to corporation should be decided by
entrepreneur. On the other hand which are the tools by using them business owner can enhance
quality of his product and services is a complex decision but for hitting all targets he must be a
good decision maker.
Leadership: As it is discussed that to complete all task and actions in requisite time
duration personnel must communicate all information and suggestion to his employees, it is also
essential that he must bring all persons at same page and provide everyone with same type of
benefits that are associated with their task performance. This type of working is not possible for
all human beings but a leader can do this very easily and efficiently. So to bring all employees
together a business man must be a leader.
Time Management: It is very compulsory task for example an enterprise is said to be
successful if it fulfils his customer's demand in time and this can only be possible by managing
all activities according time. This kind of action also provides info regarding new and innovative
tools that entrepreneur can use in reply to increase level and quality of productivity (Chell and et.
al., 2016).
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P6 Aspects of Entrepreneurial Personality
Personality of an individual is what in which he/she behaves. This is helpful in
recognition that which kind of task a person can complete by how much efficiency. This shows
capabilities of person and to make this concept understandable there is model that comprises five
aspects. It was founded to affect motivation in positive manner (Kirzner, 2015). Description of
all five points are below:
Extraversion – This section comprises those individuals who are very enthusiastic and
have joyful nature along with positive attitude while conducting business operations. This type of
persons easily share their feelings, thoughts and ideas with others without any hesitation. These
human beings are self motivated and accomplishes their task with full efforts and effectiveness.
People with this virtue are able in achieving all their objectives within set time frame. If an
entrepreneur have broad minded than he can set up a problem-solving atmosphere for his
manpower, this type of action will generate confidence among human resource of company and
they will complete their target in limited duration (Boh, De-Haan and Strom, 2016).
Agreeableness – This is a virtue that an enterpriser possess and it includes that when
business owner make his workforce agree to do a task and attain all targets is called as
agreeableness. It is a procedure of making corporation's choice is employee's interest so that they
can achieve their all missions in allotted or required time frame. This action develops unionism
among workers and motivates them to make efforts for efficient working.
Conscientiousness – With assistance of this entrepreneur can enable his manpower to
pay focus on their duties and responsibilities while performing their actions and tasks at
workplace. By taking help of this attribute seniors can hit their vision by getting aid of his
employees. This quality is most suitable in utilizing all resources in most feasible manner
(Drucker, 2014).
Emotional Stability – When enterpriser is emotionally strong then he wont get afraid
with reverse situations and will also motivates his employees to do extra efforts to get rid out of
opposite circumstances. By staying calm and composed he can set up an example in front of
juniors so that worker will definitely not loose their patience and will continue their task with
great efforts.
Openness to Experience – Management must be ready for adopting change which are
arising in external atmosphere. This section means when human beings are ready to get new
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experience along with taking challenges. This section aids in application of new and advance
technologies in operational activities for gaining competitive advantages at marketplace in
industry. Application new technologies and methodologies enhances productivity of employees
as well as enterprise.
TASK 4
P7 Ways in which background and experience hinder and foster entrepreneurship
Talents and virtue are those who directly affected by background and experience of
person who is running business operations in director indirect manner (Kuratko, 2016). Internal
& external capabilities of a person plays a wide role in development of individual's personalities
that is helpful for person in growing as a business man. There are lots of points that affects
personality of human being in wider manner. These points are school, friends, colleges,
universities, family etc. school is a place where person learns how to respect others. When
entrepreneur possess this quality then he must take care of his customers and always thinks to
cater their needs and wants in way which should provide full satisfaction. Friends can be defined
as reference group and teaches a person how to be with some entities. This type of point enables
a person to work in a group by putting hundred percent efforts because work done by a team is
more efficient than task performed by single person. Above discussed points are helpful in
sketching a portrait of enterprise in front of client with prominent characteristics. These are
factors that enables an entrepreneur to increases employment chances for people who are eligible
to perform actions in business operations.
Main usefulness of background is that it aids human being to collect info and know-how
which is associated with his project in reply to fulfilling demands of clients. This action brings
efficiencies and effectiveness in accomplishment of business operations. Without assistance of
required knowledge an entrepreneur can not accomplish his task and duties that is assigned with
him.
For example: A person belongs to a small community named Richard Branson started an
enterprise which name is Virgin Atlantic. He was not much educated qualified that he could run
a business in profitable manner (Burns, 2016). He was never be trapped in critical and opposite
circumstances and he wan successful in establishing three more enterprises at small scale. But in
present time he is providing employment to approximately 350 employees in his association.
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CONCLUSION
This assignment can be sum up as that in recent time there are many persons they not
only start their venture but also they are running it successfully. This success showcases
capabilities and calibre of a person that how much he is efficient in conducting business
activities. This report is states so many differences and similarities in comparison of other
enterprises. Success of a venture is influenced by background and experience of person who is
running this association. This kind of corporation are able in increasing employment
opportunities day by da y as this kind of corporate houses are growing.
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REFERENCES
Books & 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.
Bhachu, P. ed., 2017. Immigration and entrepreneurship: culture, capital, and ethnic networks.
Routledge.
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.
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.
Chell, E. and et. al., 2016. Social entrepreneurship and business ethics: Does social equal
ethical?. Journal of business ethics. 133(4). pp.619-625.
Davidsson, P., 2015. Entrepreneurial opportunities and the entrepreneurship nexus: A re-
conceptualization. Journal of Business Venturing. 30(5). pp.674-695.
Decker, R. and et. al., 2014. The role of entrepreneurship in US job creation and economic
dynamism. Journal of Economic Perspectives. 28(3). pp.3-24.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
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.
Kirzner, I. M., 2015. Competition and entrepreneurship. University of Chicago press.
Kuratko, D. F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Schaper, M. T. and et. al., 2014. Entrepreneurship and small business.
Storey, D. J. ed., 2016. Entrepreneurship and new firm. Routledge.
Suddaby, R., Bruton, G. D. and Si, S. X., 2015. Entrepreneurship through a qualitative lens:
Insights on the construction and/or discovery of entrepreneurial opportunity. Journal of
Business venturing. 30(1). pp.1-10.
Terjesen, S., Hessels, J. and Li, D., 2016. Comparative international entrepreneurship: A review
and research agenda. Journal of Management. 42(1). pp.299-344.
Online:
The Four Types of Entrepreneurship. 2011. [Online]. Available through:
<http://casnocha.com/2011/02/the-four-types-of-entrepreneurship.html>.
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