Entrepreneurship and Small Business Management Assignment - IKEA and Tesco

Entrepreneurship and Small
Business Management
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Different types of entrepreneurial ventures and the way they relate to the typology of
entrepreneurship...........................................................................................................................3
P.2. Exploring the similarities and differences between entrepreneurial ventures......................4
TASK 2............................................................................................................................................6
P.3. Illustrating the way micro and small businesses impact on economy..................................6
P.4. How small businesses and business start –ups will contribute to the growth of the social
economy after
‘Brexit'.........................................................................................................................................7
TASK 3............................................................................................................................................8
P.5. Explaining the characteristic, traits and skills of successful entrepreneur which
differentiate them business manager............................................................................................8
P.6.How entrepreneurial personality reflect entrepreneurial motivation and mindset................9
TASK 4..........................................................................................................................................10
P.7.Examine how background and experience can hinder or foster
entrepreneurship(support answer with an example)..................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Entrepreneurship refers to designing, setting and launching up of new business which is
initially a small business. These individuals alone bare all the risks and rewards of venture. There
are four types of entrepreneurship. Some of them are small, scalable, large and social. Report
will discuss impact of small firm on economy. Furthermore, it will describe different
characteristics, traits and skills of successful entrepreneur. It will emphasis on person's
background, culture that impact on their entrepreneurship. Report will also discuss personality of
entrepreneur which shows the mindset and motivation. This is necessary because the person
who has attractive personality will become successful entrepreneur. There are certain qualities
which are required in the person. The report will more study about cultural background and
experience which can create hurdles in growth of firm. The talent and skill requirement is needed
to become successful entrepreneur. These are the basic things which has to be there.
TASK 1
P1. Different types of entrepreneurial ventures and the way they relate to the typology of
entrepreneurship
Entrepreneur refers to an individual who runs a business with limited resources and take
in account all the profits and risks associated with their venture. These people bring new ideas to
market and anticipate current and future needs of economy. Different types of entrepreneur
ventures are: Small Business Entrepreneurship: These are grocery stores, hairdressers, local and
regional supermarkets, internet cafe, electrician, etc. These individual hire family
members or local employees to operate their business. Motive of these entrepreneurs is to
feed their family through business, rather than profit maximisation. These ventures could
not atract large scale capital due to this they obtain money from there family and friends
for running their business operations. Scalable Entrepreneurship: These ventures are different from small scale business. This
type of entrepreneur starts up a company with a different vision and focus more over
quality and creative aspects in work. This is the reason they employ highly efficient and
competent workforce who share different vision. This form of venture involves higher
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amount of risk and requires a large amount of capital to support growth and expansion of
business (Baum, Frese. and Baron, 2014). Large Company Entrepreneurship: This refers to large corporations who have finite life
cycle and sustainability mainly because of persisting products and services in the market.
Many large companies grow because of sustaining innovation in their existing
products/services. But due to change in taste, preferences, choices and demands of
consumer which force large companies' to bring innovations in their products, either by
entering into new markets or through producing a complete new products to be sold in
existing market. For example; IKEA, Tesco are working as big organization. These firms
contribute well in economic development of nation. They generate high profit and
provide high quality goods and services to consumers so that they can feel satisfied
(Kirzner, 2015).
 Social Entrepreneurship: This form of venture focuses over the needs and demands of
society and fulfil them. Unlike, other entrepreneurs there focus is to produce those
products/ services which meets demands of the society. They work towards concept of
making world a better place. These kinds of entrepreneurs can be Non-profit, Hybrid or
for profit.
Relation to Typologies of Entrepreneurship: Serial Entrepreneur: It refers to those entrepreneurs who often come up with new ideas
and help in establishing new business. Unlike other entrepreneurs, serial entrepreneurship
provides new ideas and help in getting things done and then passes on the responsibility
to others with looking for other new venture and ideas. Female Entrepreneur: In these forms of ventures, women or group of females organise
or arrange all the factors of production, provide employment to individuals and undertake
all the risks of business. It is an innovative concept.
 Social Entrepreneur: This kind of entrepreneur develops funds and help companies or
small businesses with finding solutions to cater environmental, social and cultural
problems (Drucker, 2014).
P.2. Exploring the similarities and differences between entrepreneurial ventures
Similarities between Social and Scalable Entrepreneurship are:
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