Role of Entrepreneurship in Business Development

The provided assignment delves into the importance of entrepreneurship in modern economy, discussing how it contributes to innovation, job creation, and economic growth. It also emphasizes the role of startups and small businesses in driving economic development, and highlights the need for entrepreneurs to develop essential skills and abilities to succeed in business. The document references various academic sources to support its arguments, providing a comprehensive overview of entrepreneurship's significance in the modern economy.

Entrepreneurship
and Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Different types of entrepreneurial venture and their relation with typologies......................1
P2. Similarities and differences between entrepreneurial venture..............................................2
TASK 2............................................................................................................................................4
P3. Impact of micro and small business over economy..............................................................4
P4. Importance of small businesses and start ups in social and economical growth after Brexit
.....................................................................................................................................................5
TASK 3............................................................................................................................................7
P5 Characteristics, Traits and skills required for ideal or successful Entrepreneur ...................7
P6 Reflection of the entrepreneurial body motivation as well as their mind-set........................8
TASK 4............................................................................................................................................9
P7 Explanation regarding the fact that “ background and experience can hinder or foster
entrepreneurship” with suitable examples. ...............................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneurship refers to the capability of a person to bring up a new or innovative idea
with an aim to scaling up a business by taking up all the financial risk for making profit. Small
businesses play an essential role in economical growth of a country by providing several social
benefits. This report is about the importance of small businesses and entrepreneurship for a
country in its development. It elaborates about the types of entrepreneurial venture and their
relation with typology along with similarities and differences they posses. It also explains about
the impact of micro and small businesses in economical development of UK after Brexit. Further
it describes about the characteristics, traits and skills that a successful entrepreneur have along
with impact of entrepreneurial personality over the motivation and mindset of entrepreneur. At
last it explains about how background as well as experience of an individual hinder or foster
entrepreneurship.
TASK 1
P1. Different types of entrepreneurial venture and their relation with typologies
Entrepreneurship refers to the process of creating and managing a business venture by
taking up all the financial and failure risk in the hope of making higher profit. Apart from this an
entrepreneurs is a person who come up with new or innovative idea for scaling up a new venture.
There are number of entrepreneurial venture which performs their operations in business
environment that can be better understood using following points:
 Small business enterprises:- It refers to the type of entrepreneurial venture which is
generally owned and operated by a sole proprietors and also employ small number of
workers. These businesses includes grocery stores, travel agents, hairdressers, plumbers,
hairdressers etc. Small businesses are generally established with an aim to satisfy the
basic requirement of family and they hire only local people or relatives.
 Large scale enterprises:- It refers to the type of businesses which follows a finite life
cycle and are generally grown up through sustainable innovation, acquiring innovative
company or by introducing new products to market. Large scale organisation have to face
a huge competition in marketplace as they operates in dynamic environment where
customer taste, preference and technology changes on a frequent bases.
 Scalable start ups:- This includes type of entrepreneurs that brings up innovative
product or services to market with an aim to scale up their business. They are always in
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search of new opportunities present in market and then exploiting it by establishing their
own venture with a vision to change the world. After establishing their business, they
hand it over to other person and move in search of another opportunity.
 Social enterprises:- It refers to the type of businesses venture which focuses on
providing product or services with an aim to solve the problem faced by society. Main
aim of social enterprises is not to generate profit or capture larger market share rather it
focuses on providing services for the welfare of society. These enterprises can be profit,
not for profit or hybrid.
These all are the types of entrepreneurial venture present in business environment but
apart from this there are certain typologies to which these venture relate which influence the way
in which these business operates. Following points describes about the entrepreneurial typologies
 Lifestyle entrepreneur:- It refers to the type of entrepreneurs who scaled up a business
with an aim to altering their personal lifestyle and not for earning profit. Scalable start
ups belongs to lifestyle entrepreneurial typology as they convert their passion or dream
into business.
 Male entrepreneur:- Under such enterprises all the business activities, operation and
decision making process are controlled and managed by male entrepreneurs. Main
objective of these entrepreneurial venture is to gain competitive advantage in market
place.
P2. Similarities and differences between entrepreneurial venture
Entrepreneurial venture is defined as an organisations that focuses on innovation and
opportunism for running its business operations for providing social as well as economical value
to its customers at marketplace. These venture are different in term of their level of operations
and objectives behind running up business venture. But apart from this these entrepreneurial
venture posses certain similarities which can be better understood using following points:
Similarities:-
Similarities between small business and scalable start ups:- Both the enterprises
doesn't operate their business with an aim to earn profit or maximize their market share. Instead
small business aim to create a source of regular income through scaling up business and social
enterprises aims toward offering product for the welfare of society at large.
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Similarities between Scalable start ups and social enterprise:- Both the organisation
operates their business operations with a vision to change the world by enhancing the living
standard of people.
Similarities between Large scale and scalable start ups:- Both the organisations
focuses on brining some unique or innovative product & services to the market place with an aim
to achieve sustainability.
Similarities between large scale and social enterprise:- Both the enterprises focuses on
offering the product or services that are required by the community where large scale enterprises
aim to satisfy the demand of customers. On the other hand social businesses focuses on offering
commodities that will solve the problem as well as basic need of people lives in society.
Apart from these similarities there are certain difference that these enterprises poses in
term of their size, objective, scope and many more. These can be better understood using
following table:
Difference between small and scalable start ups
Small business enterprises Scalable start ups
 Small business enterprises are generally
setup with an aim to create a regular
source of income for fulfilling basic
needs.
 These entrepreneurs have limited
source of fund such as personal saving,
friends, relatives and short term loans.
 Scalable start ups are setup with an aim
to bring up new or innovative product
as well as services at marketplace.
 Source of income for scalable start ups
are fund form friends, family, short
term loans and venture capital etc.
Differences between large and social enterprises
Large scale enterprises Social enterprises
 These enterprises are generally
operated with an aim to achieve
competitive advantage and maximum
profit out of their operations.
 Large scale enterprise have various
 Social enterprises generally focuses on
offering product or services for the
welfare of society.
 Main source of fund for social
enterprises includes charity or fund
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sources of fund which includes long
term loan, equity fund, venture capital
and many more.
from government and other authorities.
TASK 2
P3. Impact of micro and small business over economy
Small businesses are privately owned enterprises which generally hire employees not
more than 50. On the other hand micro business are the enterprises which operates at very low
level and has not more than 5 or 6 employees. Micro and small businesses are generally operated
at lower level but have an huge impact over the economical growth and development of country.
As they contribute in economical growth in several ways such as by creating employment
opportunities, encouraging innovation and improving living standard of people. Therefore, small
and micro businesses are consider as the backbone of UK economy. As being a seedbeds for
innovation they encourage people to bring fresh and innovative ideas for achieving success in
marketplace by converting their dreams into reality. This support country to attract large number
of entrepreneurs for venturing up their businesses in market place which support in following
way toward the economical development:
 Employment generation:- With the establishment of new business the requirement of
workers get increased which help in minimizing the unemployment rate within the
country by providing employment opportunity to unemployed people. This help in
improving the living standard of number of people by providing them a source of income
through which they can fulfil their basic need. This further support in economical growth
of country by increasing the per capita income and GDP rate of country.
 Encouraging innovation:- The venturing of businesses with some unique or innovative
approach also attract other people to bring up their innovative ideas and setting up their
own venture. Hence it support in attracting large number of people toward
entrepreneurship concept which in turn support country to improve their economic
condition. This result in flow of fund through internal sources in term of taxes and GDP
as well as external sources in term of Foreign investment.
Therefore, small and micro businesses are consider as the backbone of UK's economy as
they contributed in several ways for bringing out the nation from economical crises. Hence, there
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role is vital in economical as well as social development of UK. There are around 99% of
businesses which are belongs to private sector that contribute toward bringing innovation.
(Source: Role of Startups and Small Businesses in Today’s Economy, 2018)
Above given image shows the contribution of small businesses in the economical growth
and development of the country. Small businesses provided around 48% employment out of the
country's total employment rate and 99 % out of total businesses are private. Hence it can be
determine that small businesses plays a crucial role in economical growth of UK by providing
employment opportunities to people. Apart from this they also promote cash flow from other
countries that supported in enhancing the economical condition of country.
P4. Importance of small businesses and start ups in social and economical growth after Brexit
Small businesses and start ups plays a crucial role in the economical as well as social
growth of country after economical recession which was caused due to the event of Brexit. As it
has ruined the economical condition of country by almost destroying it. Because after Brexit the
large scale companies which operates in EU countries get closed and as a result of which large
number of people lost their job. This has taken down the economy of UK which results in
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Illustration 1: Role of Startups and Small Businesses in Today’s Economy

increase in inflation rate as people have nothing to spend this increase the import activities.
These all leads to decrease in the value of UK's currency which affected the people's living
standard.
At this time of recession small business act as a saver for country by supporting toward
the development of economy through scaling up businesses at lower level. This contributed to a
great extend by providing employment opportunity, increasing flow of foreign currency and
encouraging innovational practices in country. After Brexit, small businesses entrepreneurs are
the one who bring up new or innovative ideas for setting up venture. This help in improving the
living standard of people by providing residents of UK with product or services for fulfilling
their basic needs at an affordable prices. Apart from this they also supported in providing the
employment to the people who find it harder to get the job. This provide several benefits to
country, as people get job which supported in improving the living standard of people. Small
businesses get employees at relatively lower price which support them in keeping their expenses
at minimum. Thirdly this support toward the economical development of nation by increasing
per capita income of people which extended to government in form of taxes and GDP rate also
get increased. So, these all factors contribute toward the economical as well as social
development of UK to a large extent.
In addition to this small businesses are generally grown up through innovative
approaches that also act as a factor of attraction for foreign investors to invest in these businesses
or to start import-export activities. This help UK to increase the flow of foreign fund within the
country which in turn supported toward enhancing the economical condition of country and also
help in increasing the value of currency. This in turn also supported toward increasing the
movement of foreign investors within the country which help in improving the infrastructure of
nation. It further provide other development opportunities to small businesses. Hence, the
contribution of Brexit is very vital toward the economical as well as social growth of UK.
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TASK 3
P5 Characteristics, Traits and skills required for ideal or successful Entrepreneur
The entrepreneur is an individual who thinks the business idea and converts it into the
business opportunity in order to generate some revenues and profits. The individual implement
the idea into a business opportunity and starts the business operations with available funds and
resources held with him. The entrepreneur prepares the business effective business planning
considering all relevant issues or influencing factors that can affects the survival or the workings
of the business operations. An entrepreneur starts with the effective plans to create invention and
some innovations regarding the existing products and services. In the present entrepreneurship
era there are several famous entrepreneurs who starts their business from their own level and
innovate or promote their business to the international level or globally. Among of these famous
entrepreneurs there are two most famous entrepreneurs namely, Steve jobs (founder of Apple
USA) and the second one is Mark Zuckerberg(the founder and owner of Facebook). They both
are known for their inventions and innovations they did in their struggle times of their life. They
are the inspirations for others entrepreneurs, for the ways of success and how to treat the ordeals
of life and businesses. Their stories acts as the motivation for other who are willing to take risks
and implement the business ideas into the business opportunities, with effective planning and
getting the favourable outcomes. Some of the ideal characteristics of the these two entrepreneurs
are as follows.
Flexible: Flexible nature is also essential feature of the entrepreneurial personality as it
is essential for the entrepreneur to adjust the their workings according to the business
environment and associated situations. It is crucial for the entrepreneur to make adjustments in
their business operations in order to minimise the effects of the influencing factors. So it is
inevitable for an entrepreneur ensure flexibility in their operational workings.
Skills : There are some important creative skills that are crucial for the personality of an
ideal entrepreneur some of these skills includes, creative thinking ability, effective leadership
skill, ability of taking risks, strong working ethics, confidential and effective communicator,
ability to handle the pressure or working under pressure, are some entrepreneurial skills of a
successful entrepreneur.
Traits: The traits are the most important quality, must be pertain with the entrepreneurial
body for the success of the implemented idea of business opportunity. Some of these traits
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involves Vision of the entrepreneur as well as the business, passion, Tenacity, Willingness to
work hard, Confidence in behaviour, Flexibility in dynamic situations, prudent in context of
money, resilience. Are some important traits of the ideal entrepreneurial body.
P6 Reflection of the entrepreneurial body motivation as well as their mind-set
The entrepreneurs as named in above context both have all the qualities of the ideal
entrepreneur. They both tells the world meaning of perfect entrepreneurship. Not only this, both
have their motivational thoughts that inspires the other individuals who wants to do some act like
entrepreneur and also motivates the employees working in their business or in other business,
their thoughts inspires them to work whatever they doing but with full potential. Therefore they
will able to gain the better outcomes from their jobs. There are some skills and abilities that
reflects the the behaviour of ideal entrepreneur are as follows.
Openness: the passionate nature of entrepreneur towards their workings and punctual
ability to complete the assigned job or project in effective and in time efficient manner. Besides
this, they have a mindset regarding the their job or working, as to accomplish the job target by
hook and crook or at any cost. No element must be remaining while doing or completing the job.
For example, Steve jobs and mark Zuckerberg both the entrepreneur have their mindset towards
the target of their work. They accomplish their task of invention as well as innovation in their
existing products very passionately.
Critical or creative thinkings: It is most inevitable thing for an ideal entrepreneur to
have a critical and creative thinking ability in order to accomplish the desired goals. The creative
and critical thinking are also essential in acquiring funds for the implementation of business plan,
as the entrepreneur have to face the critical questions of shareholders and financial institutions
which are the main sources of getting funds for the business start ups and its running. Along with
this, the creative thinking is also essential to make innovations time to time in their existing
products in order to grab the market for long period of time.
Sociability: It is also a crucial thing for an entrepreneur, as every entrepreneur wants the
long survival of their business, brand loyalty and accomplishment of the visions. So it is essential
to work or support the society in order to build the loyalty of brand and in order to improve the
living standards of the people of society. It is also helpful in gaining public support and
establishment of trustable and good brand name.
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Risk taking ability: Risk bearing is the most crucial, as it is associated with each and
every business start up and running till it survives. The thought of famous entrepreneur Steve
jobs is “if there is no risk there will be no gain in business”. This thought is inspired with his real
life experiences. Therefore the risk is essential element of the business and it is essential to enjoy
the real; success of business.
Willingness to work hard: hard work is inevitable for gaining something. “No
handwork no gain” nothing is wrong in saying this statement. Hrad work is the most crucial
things besides every quality for the accomplishment of the desired targets and in order to get
some achievements.
TASK 4
P7 Explanation regarding the fact that “ background and experience can hinder or foster
entrepreneurship” with suitable examples.
The entrepreneurs are influenced by their surroundings factors like family, society,
financial problems and experience. Family support is the most crucial thing behind the success of
an entrepreneur. As the family members are the first from which every child learns and take
inspirations for the future goals. The entrepreneurs like other humans learns several things from
their family members that helps them to face the ordeals of life and business. These lessons
becomes very helpful in facing the uncertainties happens with them. Therefore, it has been
understood that background and family member are responsible for increasing performance and
making a better person such as, Joe woods is totally influenced by his parents as his parent
timely guide him to become a good business person and run his own company. For example, the
motivation first given by the parents to their children for their future, as every parents wants that
their child becomes great person and good personality in his/ her life. That is the important thing,
which works as the inspirational and the motivational forces that make an individual a successful
entrepreneur.
Along with the family support the second most crucial thing is experience. As the life and
the business are full of ordeals and challenges which have to face by individual or entrepreneur.
As if an individual has faces different kind of challenging situation in life in his past, than he
would be more mature to handle thing and difficult situation in future. That experience makes
them understand the meaning of effort in future and make them so conformable that they put
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their all potential or effort to overcome those situations. Through this there is positive impact on
their life and that helps them to become an intelligent person.
CONCLUSION
From the above report it has been concluded that the entrepreneur has to face several
ordeals in life and several challenges in business. There are various skills and abilities that are
crucial to become a successful entrepreneur. The entrepreneurship formed by the entrepreneurs
are also important for the large businesses as well as the small businesses in present business
scenario.
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REFERENCES
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business.
Scarborough, N.M., 2016. Essentials of entrepreneurship and small business management.
Pearson.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: Entrepreneurship and small business.
Macmillan International Higher Education.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
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Hall, J. K., Daneke, G. A. and Lenox, M. J., 2010. Sustainable development and
entrepreneurship: Past contributions and future directions. Journal of Business Venturing. 25(5).
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Nga, J.K.H. and Shamuganathan, G., 2010. The influence of personality traits and demographic
factors on social entrepreneurship start up intentions. Journal of business ethic. 95(2). pp.259-
282.
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