P5 Characteristics, skills and traits of successful entrepreneurs
Added on 2020-12-31
21 Pages6870 Words134 Views
ENTREPRENEURSHIPAND SMALL BUSINESSMANAGEMENT
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Different types of entrepreneurial ventures and their relation with typology ofentrepreneurship.....................................................................................................................1P2 Similarities and differences between entrepreneurial ventures.........................................4TASK 2............................................................................................................................................5P3 Interpret and access relevant data & statistics to illustrate impact of micro and macrobusiness on economy..............................................................................................................5P4 Importance of small business and business starts-ups to growth of social economy........9TASK 3..........................................................................................................................................11P5 Characteristics, skills and traits of successful entrepreneurs to differentiate them frommanagers...............................................................................................................................11P6 Aspects of entrepreneurial personality reflecting entrepreneurial mindset and motivation13TASK 4..........................................................................................................................................14P7 Impact of background and experience in fostering & hindering entrepreneurship.........14CONCLUSION..............................................................................................................................16REFERENCES..............................................................................................................................17
INTRODUCTIONEntrepreneurship is defined as setting up and managing a business so that highprofitability and living standard can be earned. It assists in transforming business relatedproblems into simple concepts that can be solved in an easy manner. An entrepreneur is anindividual which set up and manages a business so that high revenues and profit margins can beachieved. It will benefits the business owner in sustaining a standardised life (Akehurst, Simarroand Mas‐Tur, 2012). This report is based on Entrepreneurship and management of small scalebusinesses. This assignment will cover various kinds of entrepreneurial ventures and theirrelation with entrepreneurship typologies. Also, differences and similarities between differentventures is discussed. Data and statistics to illustrate the impact of small & micro businesses onUK economy is discussed. Importance of start-ups and small businesses in social economy alongwith characteristics, skills and trait of successful entrepreneur is mentioned. At last, Aspects ofentrepreneurial personality and impact of experience & background in fostering and hinderingentrepreneurship is carried out. TASK 1P1 Different types of entrepreneurial ventures and their relation with typology ofentrepreneurshipEntrepreneurs are those persons which exercises different initiatives of business ventureso that benefits and opportunities can be attained in an advantageous manner. Entrepreneur aimsto supply their services & products to customers so that high revenue and profitability can beattained. This will benefits them in living their life without facing any financial issues. Entrepreneurship: It is referred to the procedure of launching, running and designing anew business that is usually a small business. It is defined as a willingness and capacity tomanage, organise and develop a new business venture along with taking risks so that highprofitability can be attained. Entrepreneurial venture: It is referred to an organisation that places opportunities andinnovation as its basics so that high social or economic value can be produced. Usually theseventures are of two kind i.e. big businesses and small & medium businesses. Due to their uniqueidea, these organisations are capable to achieve high returns and profit for their work. 1
Enterprise: It is defined as a company or business which is owned and managed to earnhigh profitability. It is concerned with entrepreneurial ventures and there are different forms oflegal enterprises like partnership, sole proprietorship, professional company, corporation etc. Different ventures carried out by entrepreneurs have their own purposes and theseventures are segmented on the basis of their purpose, size, service and scope. In this regard,entrepreneurial activity is an important aspect which is mentioned below:Entrepreneurial activityIt is a procedure in which business organisations perform economic activities so that highvalue can be generated for their products & services. These activities are concerned withidentification of new concepts and ideas that will benefits in increasing the development andgrowth of ventures. These ideas are transformed into reality so that needs of customers can besatisfied in a proper manner and organisation can achieve desired outcomes & objectives. Different kind of venturesSmall business: These business ventures posses less amount of workforce, operations,size and capital so that high amount of revenue and profitability can be attained in return ofservices or products provided to customers. Scope and size of these business organisations arenarrow as they operates and work at small scale (Bakeman and Hanson, 2012). Their services orproducts are provided to niche market and usually these businesses works under soleproprietorship and partnership. These companies have less than 50 workers and their net worth isaround 2 million pounds. Some organisations operating at small scale are Clarasys and orionelectrotech limited and travelodge. For example, businesses such as Clarasys are run andmanaged with the aim of acquiring high profit and comfortable livelihood. By this, owner ofcompany will be able to lead a healthy and happy life. Large company:In this kind of business venture, organisations operate at big level andprovide wide range of products or services to their customers. These business ventures face nolimits in their business in terms of scope, size, business operations and activities. These businessfirms offer services & products to their consumers at large scale. For example, to run andmanage business, these business organisations like M&S are required high amount of funds andinvestments. As these organisations adapt changes and operates from several years, they sustaina strong presence in marketplace.Some other examples are ALDI, TESCO, NHS etc. 2
Scalable starts-up entrepreneurship: In these business ventures, entrepreneurs owns andmanage business by thinking that their ideas and concepts can change the world. These businessget funding from venture capitalists and they prefer to hire skilled & capable employees. Thesestarts-ups make only small proportion of business because of outsize returns and risk capital. Typologies of entrepreneurshipAbove mentioned entrepreneurial ventures include different kind of typologies that arerelated with business development and effectiveness. In this regard, some business typologies arementioned below: Survival Enterprise: These kind of business organisations are formed to improve theliving standard of ourself and local people where company is managing and operating. Theseorganisations offer job opportunities to local residents as well as provide services or products tothe people so that firm can attain good revenues and profits. This typology falls under scalableventures which are developed with the aim of spending a comfortable life.For example, Lyle'srestaurant which is a local restaurant operating in UK. Aggressive growth firms: These companies are created and run so that high profits andrevenues can be earned by business persons. Entrepreneurs operating these businesses try toinnovate new concepts and ideas so that overall productivity of company can be enhanced. Thesenew ideas are transformed into reality so that needs and expectations of people can be fulfilled ina proper manner. These business typologies fall under the group of large and small businessventures. For example, Rowlinson Knitwear,TESCO, M&S etc. Social enterprises:These kind of ventures are created for the welfare and development ofindividuals & society. These organisations formulates new concepts that can be implemented insociety for growth and development. These kind of businesses have huge scope as they provideopportunities and benefits to common people so that they can sustain a healthy and prosperouslife. These kind of business organisations do not aim to generate high profits and contribute indeveloping infrastructure of regions where they are working. For example, Save the children issuch kind of business organisation (Barringer, 2015). Different typologies and entrepreneurial ventures are linked with one another as theyoffer maximum efforts which will benefits in improving living standard of UK citizens. Also,3
both concepts aims to provides possible contribution toward the growth and development ofeconomy where business operations are run and ,managed (Bennett, 2014).Different kind of entrepreneursSerial entrepreneur: This is an individual that continuously introduce new concepts andideas so that a new business can be set up in a proper manner. In contrast with typicalentrepreneurs that only posses single idea and start business accordingly, these individualsadopts a idea, set a business and give its responsibility to other person so that they can focus on anew idea. Intrepreneurs: These people are those entrepreneurs which works within a company.These individual prefers to think and work like entrepreneurs. This is the reason they grabvarious opportunities and implement them in business so that high growth can be attained byorganisation where they are working. Manager-owner: It is a person which develop and manage a business firm so thatpersonal goals and aims can be achieved in a proper manner. In this situation, firm is primaryincome source and requires high efforts and time of manager/owner of company. Most of theactivities of businesses are managed by a single person only. P2 Similarities and differences between entrepreneurial venturesThese entrepreneurial ventures have some differences and similarities which arementioned below: Differences between different entrepreneurial venturesBasis Survival firmsManaged growthSocial EnterprisesAnnual growthThese business haveless focus on growthand their main aim is tosurvive within marketplace. These businesses areinitiated with the aim ofachieving good profitsand growthThese kind of businessventures are started withthe aim of satisfying needsand desire of society dueto which they don't haveprofit motives. Organisationalstructure Entrepreneursassociated with thesebusinesses do not haveThese companies havea proper organisationalstructure due to whichThese organisations worksunder government andfollows structure4
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