TABLE OF CONTENTS INTRODUCTION...........................................................................................................................1 PART 1............................................................................................................................................1 P1. Types of entrepreneurial venture and the way they relate to typology of entrepreneurship ................................................................................................................................................1 P2. Similarities and differences between entrepreneurial ventures........................................3 M1...........................................................................................................................................5 D1...........................................................................................................................................6 P3. Impact of micro and small business on economy............................................................6 P4. Importance of small businesses and business start-up on the social economic growth...8 M2. Impact of small, medium and large businesses on economy..........................................9 D2. Small business impact in local, regional, national and international areas.....................9 PART 2............................................................................................................................................9 P5. Successful entrepreneur - Bill Gates................................................................................9 P6. Entrepreneur common/ distinct personality traits..........................................................11 M3.........................................................................................................................................12 D3.........................................................................................................................................12 P7. Bill Gates background and past experience...................................................................12 M4.........................................................................................................................................13 D4.........................................................................................................................................13 CONCLUSION..............................................................................................................................13 REFERENCES..............................................................................................................................15
INTRODUCTION Entrepreneurshipisanactivityofbusinessstart-upsandtakingrisktodevelop organization at the next level. Small, medium and micro; all are those businesses which operate at local area but give a large contribution in country’s economy (Amato and et.al., 2017). Private, public and social enterprises have different aims like private sector wants to earn more profit for company expansion and customer’s attraction. Further, public organization work for government productivity and social company focus on to develop society. Private companies follow own policies for business expansion. While, public or social follows government rules to run the organization. Report explains types of entrepreneurial ventures, differences and similarities between them and impact of SMEs in the economy of United Kingdom. It describes the skills, characteristic or traits of an entrepreneur like Bill Gates along with his cultural background, education and lifestyle’s role in his success. PART 1 P1. Types of entrepreneurial venture and the way they relate to typology of entrepreneurship Entrepreneurship and enterprise-An entrepreneur is a person who starts business on financial risks in the hope of profit. He works as an employee, founds and operates a small business as well as assumes all risks or rewards of venture. Entrepreneur looks like as an innovator, sources of new ideas as well as products and services. Their role is the key of economic success. These are the people who have skills and initiatives compulsory to anticipate present or future requirements and come into market with new ideas. Entrepreneurship is the process of designing, introducing and running new business which is generally initially a small scale company (Bhagavatula, Mudambi and Murmann, 2017). It is an act of being an entrepreneur or owner of an organization who through risk and initiative attempts to earn profit. Enterprise is another word for company but it is usually related with entrepreneurial ventures. There are different forms of legal enterprise like sole proprietorship, partnership, corporation, Limited Liability Company and professional organization. Difference between entrepreneurs BasisEntrepreneursIntrapreneur 1
OwnershipEntrepreneur is the owner or leader of whole operation. Intrapreneur is an employee of business. RiskThey are risk taker.They avoid taking risk. InnovatorThey are the source of new ideas. They follow pre-defined business rule. Intrapreneur are not innovators. Entrepreneur performs different activities for business expansion or more profit. They predict future market situation and make efforts to reduce risk. They purchase raw material at minimum cost or sell products at high price. Market fluctuation decides the rate of goods and services. There are different typology of entrepreneurial ventures which drive their work according to size of business.Privateentrepreneurialventure-Itisthebestoptionforself-employed.Small organizations are those which want to enjoy a fix tax regime or simplifies reporting procedures and engaged in operate non-risk business. It plays an important role in country’s development, make strategies for promoting economic growth and reduce povertyindevelopingcountries.Smallbusinessistheinitialstageofprivate organization. It is related to small business which works for own profit. This kind of organization is operated by an individual. Future growth scope of small business is that they want to turn small into medium. In this, company owner has entire profit in his pocket. Saloon is the best example of small entrepreneurship. Bakery shops, clothing outlets etc. are the example of private entrepreneur. For example, TESCOPublic entrepreneurial venture-Public entrepreneur are who generally think of as individual which require a great deal of business freedom to make decisions, taking risk, and earn personal fortune. This type of venture follows government rules and regulations and relates with medium enterprises. A scalable business can increase revenues without additional sky-high incremental cost. Public hospital like NHS is the example of public entrepreneurial venture. They follow government rules to complete their job. Scope of public entrepreneurship is that they want to connect more people through their services to 2
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improve country’s economy (Bruton, Zahra and Cai, 2018). They can easily take risk for expansion. The Cabinet Office is the example of public entrepreneur. Social enterprise venture-A person who establish an enterprise with the aim of solve social problems and improve social status of country. Individual is ready to take risk and make efforts to generate positive changes in society with their innovation. It relates to micro enterprise and can work at small level. Social entrepreneurship comes from this kind of business. They work for society without any personal benefit. Example of social entrepreneurshipincludemicrofinanceinstitutes,educationalprogramsetc.Social entrepreneurs are not just like non-government organization which aim is to achieve short term goals and develop society. Social entrepreneurship scope is that they like to improve social status of people. P2. Similarities and differences between entrepreneurial ventures Similarities Public and private entrepreneur both are same at few stages and objectives of their business.Customer service oriented-Both these ventures are customer oriented. Consumers for the private business are those who have agreed to pay for their services. While, customers for public sector are its people of country as it relates to public services. They value their respective users immensely because they evaluate efforts to ensure a high customer service.Open to change-Technology and workforce are changing by day to day. It is good that public and private business entrepreneurs; both are open to accept change. Willingness to listen to new ideas and explore new opportunities is refreshing and improving company’s growth.Opportunities for employee growth-This can be applicable at any level on any employee. Public or private business culture provides possibilities for career growth. It can be co- ordinated in a formal or informal fashion. This leads to employee job satisfaction and retention. Owner of both sectors see this as a win-win situation because employees get the experience.Executive support-Executive staff is ready and willing to provide employees the extra support and motivation which they need to implement an idea (Hörisch, Kollat and Brieger, 2017). 3
Roles-They both play an important role in a country’s economy.They have a key role to play in enhancing the local job supply and it is likely that private or public sectors employers, local authorities and the health service which are realistic and appealing destinations for prior customers. Differences-Public and private entrepreneur; both are different from each other. BasisPublicPrivate OwnershipThe public enterprise is a business entity which works under- government control. A private entrepreneur is one who has own control on the business situation. ObjectivesPublic business wants to make more connection with common people. Theymakeeffortstomake more profit or expand business at a high level. StructureGovernment owned and controlled public company. The owner of business has chosen board of directors and distribute profit among business partners. CharacteristicsA single person can't start business alone (Hornsby and et.al., 2018). To start a company, minimum number of members required are 2 and maximum 200. LiabilityA key characteristic of public entrepreneur is that they have limited liability. There is no fixed liability. They have to complete all responsibilities. Different sized ventures-Micro, small and medium enterprises are different in terms of their size. SimilaritiesCustomer’s satisfaction-Micro and medium sized enterprises; both have same business objective, that is, customer satisfaction. Innovation-To expand business at the next level, they both continuously bring innovation in their working style. 4
Difference-Differences between micro and medium enterprise. BasisMicroMediumSmall DefinitionAnnual revenue of micro enterprise is little much than small business. Hairdresser is an example of this kind of business. Eg.- Spaza shops They like to invest capital to take benefit of secondary market. Restaurant is the example of this enterprise. Eg- Qbice Small business is operated by an independent individual and run company that is limited in size and profit depend on industry. Eg.- Cafe Potrat FocusMicro business entrepreneur wants to expand their business at a small scale. They want to expand their business at a large scale. Small business want to expand their business at medium scale or attract more customers. M1. Public entrepreneurship-In the public entrepreneurship, government plays an important role. They want to create a wide connection with people and make profit as well as increase social status. Perform under government rules and work at a large scale with minimum 50 employees. Example: The Accelerator Group, ISIS Private Equity, etc. Private entrepreneurship-Private enterprise has their own rules and work for growth and profit. This type of business can start with one or more than one person. It may work at a small as well as large level. Example: McLaren Technology Group, Arcadia organization, etc. D1. Scope and development of public enterprise-According toKuratko, and Hornsby, (2017) social business works for society’s development. Growth of this type of business determine by improvement in society level and country economy. But some time people do not take interest in public enterprise because of it growing slowly comparing to private sector. 5
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Private enterprise scope and growth-As perKuratko and Morris, (2018) scope in private enterprise is the business expansion at next level up. Employees can become successful in their career through the use of opportunities. Their innovation is the key factor of development. In this type of enterprise, surety of profit does not exist. P3. Impact of micro and small business on economy Small and micro business influences country’s economy. According to records of 2016 in United Kingdom, 5.5 million private businesses were established. 97,000 is high figure of employmentsince2015.Thisincreasingnumbermakeimpactoneconomyandcountry development. Illustration1: SMEs and United Kingdom Economy (Source:SMEs impact on United Kingdom Economy, 2016) Small micro enterprise and economy-Small businesses were accountable for 99.3% incrementinprivateenterprisein2016and99%weremicrosizedbusiness.Countable employment of SMEs was 15.7 million and 60% of country employees work in private enterprise. Total annual turnover was 47% of private organizations. Numbers of SMEs start-ups-Business in United Kingdom broken down by the number of workers. The general definition of small and medium sizedcompany(s) is an organization with fewer than 250 employees. There were 5.7 million SMEs in 2017 while, micro businesses have 0-9 employees. United Kingdom and Regions-Private businesses are not divided across the UK. According to head office location, London and south East have measurable more enterprises than 6
any other regions. In the starting of 2016, there were 4.8 million private businesses established in England, 325,000 employment in Scotland. The North East area had 147,000 enterprises, least of any other region. London also had the highest numbers of enterprises density rates into country (Linton and Solomon, 2017).The largest percentage increase in number of businesses since 2010 was 41%. There were 28,000 small micro enterprise in Mining and Quarrying or utilities. United Kingdom and National Economy-Small and medium sized enterprises (SMEs) as well as entrepreneurs are the backbone of country’s economy. In 2014, there were 5.2 million businesses in the UK as per recorded figures by Department for innovation business. 90% of enterprises are small or medium sized organizations. Within SMEs, micro businesses are at booming level. There are 5 million of small businesses in the country, 3.5 million organization in year 2000. Government usually tax breaks to motivate employment as well as research and development or offer new opportunities. United Kingdom and International Economy-Small and medium sized enterprises have been accepted as the engines of economic growth and development. The impact of this on international economy plays and important role in building of society that is free from poverty. The reason of behind this is that they not only offer certain numbers of jobs at different level of society but also make sure flow of money in market. Annual turnover of SMEs-Total employment of SMEs in the United Kingdom was 16.1 million i.e. 60% of all private businesses. The final annual turnover of it was 1.9 trillion that is 51% of all organization sectors. Registration for VAT and PAYE-Three quarters of UK SMEs are non-employers and the strength of these are not registered for VAT or PAYE in 2016. National Statistics is 2.5 million for private sector businesses as named for VAT or PAYE, 45% of the located population. Further 14% of organization and 53% for partnership were registered. There has been sustained growth in the business population since 2000 and 97,000 2015. Non employing enterprises are responsible for 86% of the overall business sector. Three main legal forms of organization are private, sole proprietorship and partnership. Sole proprietors have common legal forms. Companies account for 3 out of 10 private business as per the record of 2016. 7
P4. Importance of small businesses and business start-up on the social economic growth Gross value of small business stands at 473 billion which shows 49.8% of the United Kingdom. They play an important role in job creation and give contribution into growth. Innovation encourages competition and comes up with new ideas that are compulsory for economicdevelopment.BusinessPopulationEstimatesforcountryisbasedonprovided information on the figure of private sector. Government measures the net change in small organizations but can't use to estimate number of company start-ups. These kinds of businesses increase country’s economy and provide employment at a large scale. By allowing SMEs to develop to full potential, it could inject a possible 20 billion into economy by the end of 2020 as per CBI. According to research, small businesses hires 14,242,000 persons in the United Kingdom in the 2017. The majority of enterprises in London, accounted for 32% of employment and 18% of annual turnover of country. This business helps to make country more competitive and attractive for investors. They include new diversity and options to cities, villages, during expansion playing important role in serving society in which they are survived. Small enterprises continue to local economies because they increase growth and creativity to society to survive (Mugler, 2017). Start-ups and small businesses take loans from government’s financial institute which indirectly improves country’s economy. It is estimated that 90 million people are out of work. Entrepreneurship is increasing importance to reduce unemployment. Start-ups play an advanced role in the economy of United Kingdom. Entrepreneurship is the only way to attract new business scope and provide creative job to individuals. Without start-ups, UK can't get job opportunities. As technologies generate new possibilities, new established company take advantages and create massive value over business. Small and start-up businesses; both arise job opportunities in the country which increases economic growth. The business population was increased by 2.0 million and average rate of annual growth was approximately more than 3%. SMEs share of total employment has remained stable on the time at almost 60% of entire private business employment. M2. Impact of small, medium and large businesses on economy Small, medium and large business-In the United Kingdom, 5.7 million small businesses established that account for 99% of private sectors and 60% of total employment. In 2016, smalls 8
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business were accounted for 99% of this sector and 99.9% were small or medium sized enterprises in the country. Annual turnover was 1.8 trillion and 47% of private firms in the UK. D2. Small business impact in local, regional, national and international areas Small business is the main factor of United Kingdom’s economy. They not only make impact in local, regional and national areas but at international too. According toNabi and et.al., (2017) SMEs are responsible for at least 99% of business at local and regional level. There were 4.8 million SMEs in England at the start of 2016. Business expansions at global level, condition of society become good comparing previous situations. PART 2 P5. Successful entrepreneur - Bill Gates An entrepreneur is a risk taker. He is always ready to expand business at a large scale. A successful businessman has few qualities like passion and motivation, strong management, effective planning, etc.Motivation-A successful entrepreneur never gets disappointed with his/her failure. They always try to find opportunities in any situation.Strong management-Strong future planning is the main factor of businessman. They prepare management strategies which are beneficial for business. This makes them different from other entrepreneurs. Product or market knowledge-An entrepreneur has complete information about their manufacturing products (Neumeyer and et.al., 2018). They know when and in which market they can introduce goods and services. Bill Gates-William Henry Gates III is an American entrepreneur, investor, author, humanitarian and founder of Microsoft Corporation. He was born on October 28th, 1955 in Seattle, Washington. In the days of his career at Microsoft, he held position of chairman, CEO and the largest individual shareholder until May 2014. Bill and Allen introduced Microsoft which became the world's largest software company. He was chief executive of his organization till January 2000 and after this, he generated the position of chief software architect for self. He stepped down as chairman of Microsoft in February 2014. Gates took an interest in programming the GE system in BASIC and was excused from math classes to pursue his interest. Characteristic traits of Bill Gates 9
Positive attitude-Gates received this advice from Buffett and it is beneficial for everybody. According to Gate “No” is important word of this world but human has to use it at rights place. Saying no makes focus on the things which really create difference. Be optimistic-It is difficult to be optimistic in world where lots of things seem to be working in wrong direction. According to Bill, to become successful, one needs to believe in optimism, because without it, nobody can start a business and generate new ideas. Skillsof Bill GatesCommunication-Bill Gates is a good communicator. He can easily motivate anyone with his words. A great entrepreneur should be an effective speaker. It is a vital life skill. According to him, speaking should be clear, articulate and concise. Leaders should establish a steady flow of communication in between themselves and team members (Newman, Schwarz and Ahlstrom, 2017). They have to make themselves available at any time to solve issues of employees and make discussion with them.Leadership-Bill Gates is a good leader. He can properly manage his team and get appropriate results. A leader carries positive attitude in any condition. They encourage employees towards job responsibility or motivate them. Motivator-Bill Gates is a good motivator. He motivates people with his experience and provide right advice to them when they get failed to reach at results. According to him, an individual can achieve their life goals through an innovative idea. Good motivator inspires others with his/her personality or thoughts. An entrepreneur is made than born. According toParker, (2018) it is a matter of nature. Creative thinking, leadership, risk taker and strong work ethic, etc. are the qualities of organizer. These people learn from their life incidents. They always find opportunities in problem and face them like a fighter. Few skills are below which explain that entrepreneurs are not born:Able to identify important issues-Few people call it sense of humour. In start-ups culture, there are various forces competing for individual attention daily and entrepreneur learns to ignore them. It is the result of experience and common sense.Board knowledge and experience-Person’s experience allows accepting challenges confidentlyingivenarea.Wideknowledgefacilitatessuccessinotherbusiness 10
environment. An entrepreneur requires this because of their issues around the spectrum from technical to legal, financial etc. Sound judgement-It is not necessary that everyone is born with sound judgement. It has to be learned and entrepreneur must have the ability to understand situation and take decisions according to it. P6. Entrepreneur common/ distinct personality traits Entrepreneur has various personality traits which make them different:Highcreativityandabilitytopersuade-Asanentrepreneur,BillGatesseesan opportunity where other people see a problem. He is also good to convince themselves and other opportunities will be worth pursuing and their solution will be applicable. By depend on a well developed selling skill, entrepreneurs persuade stakeholders and provide solution that they thought of.Excellent business acumen-Bill gates as an entrepreneur has business skills naturally. He is capable to envision and generate internal processes of business and know very well how to set policies and procedures which makes the business growth confirm (Ramadani and et.al., 2017). Business tools like revenue, sales, cash flow, etc. comes to him naturally. Through these skills, he became successful.Being passionate-Generally, people think that money makes entrepreneur motivated but its not true. Gates get motivated by the passion to achieve a certain purpose. The internal rewards system keeps them going even when it is not easy. His passion lighten up fire of determination towards goals. Intrinsically motivated-One major trait of Gate is that he is constantly motivated to perform. He is optimistic, enthusiastic andalwayshas future plan. Bill as a successful entrepreneur was always energetic and impatient generally. Thinking about business growth increases the market share and bottom line. BillGatesbusinessskillsaretheresultofhisupbringing,lifestyleandcultural background. He was born in Washington and William H. Gates Sr. and Mary Maxwell Gates were his parents. His father was a prominent lawyer and mother served on the board of directors for First Interstate Bancsystem. At 13, he enrolled in the Lakeside School, a private education institute. He wrote his first computer program on BASIC. He come from a good family, and so the support which he got was high. But after becoming a successful man, Gates brought one of 11
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the fastest street-legal production cars, the Porsche 959 is a collector’s prize. He liked to have a simple life, and invested his time working through foundation. Bill dropped out of Harvard to introduce Microsoft. M3. Bill Gates is one of the richest businessmen across world. He is an American business magnet who created Microsoft with Paul. His some skills like communication, leadership and motivator made him a successful personality. He believed that if anyone wants to achieve success, they have to learn to say no and carry a positive attitude towards situation. D3. Bill Gates became a successful entrepreneur because of his hard and smart work as well as some traits like creative or innovative nature, internal motivation, optimistic behaviour and good speaker. People generally like to listen his speech. If he didn't had positive nature, then he would have fails to create world's largest software company Microsoft. P7. Bill Gates background and past experience To become a successful entrepreneur, Bill Gates faced many situations which help him to get success. His education, family background, country’s culture, economic factors and skills, all played an important role in career growth. As the young Bill excelled at school, he developed a particular proclivity for maths which changed towards the emerging science of computer programming. He entered Harvard I the fall 1973 only to drop out two years later to create Microsoft with the best friend, Allen Paul. He was studying law because it is assumed that he also wanted to become lawyer like his father. Gates is an American business personality. In his success, national culture also plays important role which believes in independence. According to their values, each people are treated equally (Regnier, 2017). United States is the most culturally diverse country across world. Nation has distinct traditions and customs contributes in countries growth. According to his lifestyle every person believed in occupations and that is the reason that Billalsowantedtobecomeself-employedpersonality.Hiscountryculturedeveloped independently inside him from his childhood. Family financial background was strong and he had no crisis issues during his initial time of struggle. The atmosphere change in 2007 when Bill 12
left Microsoft to established Bill and Melinda Gates Foundation with his life-partner. In the age of 26 years, he became a self-made millionaire in 1981 just because of Microsoft and making him the youngest billionaire. He has such skills from his born like motivated, optimistic, creative which show Gates abilities as an entrepreneur. M4. Bill Gates upbringing was effective enough to motivate and to became self-employed person. His cultural background and lifestyle influenced by nations culture. He is highly motivated and innovative person and these encourage him to accomplish goals and fulfil dream. D4. According toAmato and et.al., (2017) Bill Gates became successful because of his positive attitude or creative nature. His family background and country culture encourage him to make efforts and achieve pre-set targets. He keeps motivate others to do their work effectively .a CONCLUSION From the above report, it can be concluded that small, medium and micro businesses play an important role in improving country’s economy. They all have similar goals like customer oriented, business growth, etc. which increase their productivity. Public enterprise follows government rules while private organization has their excluding tax rate. It has been assessed that SMEs influenced United Kingdom’s economy and made impact on its annual turnover. It increases employment in the country which is a good sign of growth. Also, it can be articulated that Bill Gates became a successful entrepreneur through his skills like optimistic, positive nature, motivator, which are required to become a great business personality and increase growth of company. 13
REFERENCES Books and Journals Amato, C. and et.al., 2017. Regulatory modes and entrepreneurship: the mediational role of alertness in small business success.Journal of Small Business Management. 55. pp.27- 42. Bhagavatula, S., Mudambi, R. and Murmann, J.P., 2017. Management and organization review special issue ‘The innovation and entrepreneurship ecosystem in India’.Management and Organization Review.13(1). pp.209-212. Bruton, G.D., Zahra, S.A. and Cai, L., 2018. Examining entrepreneurship through indigenous lenses. Hörisch, J., Kollat, J. and Brieger, S.A., 2017. What influences environmental entrepreneurship? A multilevel analysis of the determinants of entrepreneurs’ environmental orientation. Small Business Economics.48(1). pp.47-69. Hornsby,J.S.andet.al.,2018.Entrepreneurshipeverywhere:Acrosscampus,across communities, and across Borders.Journal of Small Business Management. 56(1). pp.4- 10. Kuratko, D.F. and Hornsby, J.S., 2017.New venture management: The entrepreneur’s roadmap. Routledge. Kuratko, D.F. and Morris, M.H., 2018. Examining the future trajectory of entrepreneurship. Journal of Small Business Management.56(1). pp.11-23. Linton, J.D. and Solomon, G.T., 2017. Technology, Innovation, Entrepreneurship and The Small Business—Technology and Innovation in Small Business.Journal of Small Business Management. 55(2). pp.196-199. Mugler, J., 2017. The climate for entrepreneurship in European countries in transition.The blackwell handbook of entrepreneurship, pp.150-175. Nabi, G. and et.al., 2017. The impact of entrepreneurship education in higher education: A systematic review and research agenda.Academy of Management Learning & Education. 16(2). pp.277-299. Neumeyer, X. and et.al., 2018. Entrepreneurship ecosystems and women entrepreneurs: a social capital and network approach.Small Business Economics, pp.1-15. Newman, A., Schwarz, S. and Ahlstrom, D., 2017. Microfinance and entrepreneurship: An introduction.International Small Business Journal. 35(7). pp.787-792. Parker, S.C., 2018.The economics of entrepreneurship. Cambridge University Press. 14
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Ramadani, V. and et.al., 2017.Entrepreneurship and Management in an Islamic Context. Springer International Publishing. Regnier, P., 2017.Small and Medium Enterprises in Distress: Thailand, the East Asian Crisis and Beyond: Thailand, the East Asian Crisis and Beyond. Routledge. Saleem,M.A.,2017.Theimpactofsocio-economicfactorsonsmallbusinesssuccess. Geografia-Malaysian Journal of Society and Space.8(1). Online SMEsimpactonUnitedKingdomEconomy.2016.[Online].Availablethrough: <https://assets.publishing.service.gov.uk/government/uploads/system/uploads/ attachment_data/file/559219/bpe_2016_statistical_release.pdf>. 15