The Impact of SMEs on the UK Economy
Added on 2020-06-06
13 Pages3862 Words34 Views
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Entrepreneurship andSmall BusinessManagement
Table of ContentsINTRODUCTION...........................................................................................................................1PART 1............................................................................................................................................1P1 Introduction and types of entrepreneurship...........................................................................1P2 Similarities and difference between different ventures.........................................................2P3 Impact of small and medium business on Economy..............................................................4P4 Importance of small businesses in economy..........................................................................6PART 2............................................................................................................................................7P4 Traits and skills of an successful entrepreneur......................................................................7P6 Reflection of entrepreneurial personality on motivation and mindset...................................8P7 The role of background and past experiences in fostering entrepreneurship.........................9CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
INTRODUCTIONWikipedia defines entrepreneurship as a “activity of designing, establish andrunning a new business.” Entrepreneurship can be defined as the establishment of aneconomic activity with an adequate aimed at earning profits. The person whoundertakes such responsibility is known as entrepreneur. They perceive the businessopportunities in the environment an acts upon exploiting the same. An entrepreneur isaffected adversely by the risk, inadequate funding and market circumstances(Blackburn, Hart and Wainwright, 2013). The focus on developing new products andservices which are required in the market and tries to achieve a certain level ofprofitability. This assignment consist of two parts : part 1 focuses on understanding thevarious types and scope of entrepreneurship. The part 2 tries to analyse thecharacteristic, skills and traits of a successful entrepreneur.PART 1P1 Introduction and types of entrepreneurshipEntrepreneurship is defined as an economic activity based on the analysing theopportunities in the market with a view to make financial gains out of it. It carries ascope for growth in the entrepreneurial activities. The small size of business helps inbetter management and achievement of results in a rapid manner. The reason beingsmaller businesses have high productivity and efficiency. The scope ofentrepreneurship can be categorised into three broad sector i.e. Industrial sector,agricultural sector and service sector.The entrepreneurship venture are as follows:Small Business firms: The small business enterprises are mostly ownedprivately by individual for sustaining in the market and earning profits. They fulfil themarkets need by providing quality goods at effective prices (Bridge and O'Neill, 2012).They focus on being dominant in the market due to existence of heavy competition.Example: Restaurants, retail store and bakery.Social Enterprise: these enterprise are dedicated for the betterment of thesociety. All the activities are carried out with the view of helping people in need andenhances their sustainability.1
Large enterprise: These are the large corporations having a specified ofstructure and policies in the enterprise. The employees are directed towards a commongoal. The focus is on exploiting the market opportunities and earning high profits.Scaleable enterprise: they are the enterprise focuses on covering a definedmarket share. The enterprises either can create products and enter into markets or canacquire an existing firm.The above defined types of entrepreneurial ventures caters the needs of peoplein their own way. Most of the ventures mentioned aimed to earn a specified set of profitsand market dominance (Carland, Carland and Stewart, 2015). The typology of thementioned entrepreneurial ventures are as follows: Serial Entrepreneur: These are the entrepreneurs who are engaged in the serialof business venture. The serial entrepreneur does not confine himself to one businessventure. They come up with the idea make it functional and profitable and then assignthe responsibility to an individual and moves forward with a new idea. Entrepreneurdoes not make him part of one business venture. Sir Richard Branson is suitableexample for this type of entrepreneurship.Social Entrepreneur: they are the entrepreneurs who works for social welfare inthe society. The y are not profit driven. The main aim of this type of entrepreneurship isto improve the standard of living of people and help those who are in need. Provision ofsustainability to people is what they work for.Female Entrepreneur: As the name suggests this typology of entrepreneurs isowned and managed by women. They are one who drives for a change and enhancethe role and empowering the women in the society (Carland and Carland, 2015). OprahWinfrey is one of the best example of a female entrepreneur.P2 Similarities and difference between different venturesIt is evident from the previous answer that there are different types ofentrepreneurial ventures in the market and they all have different role and functions.The profit driven enterprises focus on gaining best possible sales volume andprofitability whereas the socially driven ventures focus on the development of people.But one thing which is common in all the entrepreneurs is that they wish to makea difference in the market. They aim to bring changes in the mindset of people. There2
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