Exploring Entrepreneurship and Corporate Entrepreneurship

This assignment delves into various aspects of entrepreneurship, including definitions, types, and economic growth. It also examines corporate entrepreneurship, intrapreneurship, and public sector entrepreneurship. Additionally, it discusses the role of startups and SMEs in today's economy and provides insights into mindset and innovation. The assignment draws from a range of sources, including academic journals, business leaders' biographies, and online articles.

Entrepreneurship and Small Business Management
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Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
Different type of Entrepreneurial venture and its relation with typology of the
entrepreneurship.....................................................................................................................3
Similarities and differences between entrepreneurial venture...............................................6
LO 2.................................................................................................................................................9
Impact of micro and small business on the economy ...........................................................9
Importance of small business and business start-ups to the growth of social economy.......10
LO 3...............................................................................................................................................11
Characteristic traits and skills of successful entrepreneurs.................................................11
Aspects of the entrepreneurial aspect’s personality reflect entrepreneurial motivation and
mindset.................................................................................................................................13
LO 4...............................................................................................................................................14
Background and experience can hinder or foster entrepreneurship....................................14
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18
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INTRODUCTION
Entrepreneurship is all about the process and a study to start or create a new business
with the aim of generating profit while taking the risk.
This report is all about the entrepreneurship and small business management that will
explain the market intelligence and give the advice in establishing the small business and
entrepreneurs. Report will include the entrepreneurship and small business management and its
practice. This will also include the different type of the entrepreneurship and type of
entrepreneurial ventures and the similarities between them. Furthermore, it will include the
impact of the small and micro business on the economy. Report will also explain the importance
of the small, micro and start-ups to the growth of the social economy. Report will describe the
characteristic and skills of successful entrepreneurs that make them different from other
entrepreneurs. It will include aspect personality that reflect entrepreneurial motivation and mind-
set. And report will tell how background and experience can hinder and foster the
entrepreneurship.
LO 1
Different type of Entrepreneurial venture and its relation with typology of the
entrepreneurship
Introduction
This will include the definition of Entrepreneurship. It will also cover the different
typology of the entrepreneurship and the types of the venture.
Entrepreneurship
Entrepreneurship is the process and a study to start or create a new business with the aim
of generating profit while taking the risk. Entrepreneurship is all about the people who takes their
career and dream into their hands and lead it in their own choice direction to create new business
and life on their own terms (Kuratko, 2016).
Entrepreneur
Entrepreneur is a people or individual who found, build and run a small business with
taking the risk and give the rewards to the venture with the aim of making profit. An
entrepreneur is innovator, source of good and new ideas, services and business.
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Typology of entrepreneurship
There are three types of Entrepreneurship:
 Individual Entrepreneurship – Individual entrepreneurship refers to the person or
people that start and runs the business individually. In this a single entrepreneur invest in
the business individually to set up a new venture and takes all the risk related to the
business individually. In this type of entrepreneurship include all the small size business.
This is a good rather than other type because all the profit margin would be only
belonging to that individual there is no need of sharing the profit (Hechavarría and
Welter, 2015).
 Corporate Entrepreneurship – Corporate entrepreneurship or the intrapreneurship is
referring to the applying the entrepreneurship inside the established organisation, that
believe into generating new and creative ideas within the established business and lead it
to improvement of the organisation profit and financial gain. In which they support and
encourage their employees to behave like entrepreneur in the existing organisational
structure (Entrepreneurship, 2019). Right vision and skills encourage the employees to
find new opportunities and ideas, that helps in innovating new products and services.
 Public sector Entrepreneurship – Public sector entrepreneurship means to take
initiative to innovating the public policy that helps in generating the greater economic
value by transforming the status of the economic environment which is more productive
to economy that create and innovate the activities for the public welfare. This public
sector entrepreneurship as it names refers to take the risk in the economic activities and
policies that would help the public organisation in gaining the profit and which would
work for the public satisfaction (Fayolle and Gailly, 2015).
Types of Entrepreneurial Ventures
An entrepreneurial venture or business venture us also be a small business which is built
by investing one or more individuals and groups with the expectation that business brings the
profit. Most of the business venture is created on the basis of the demand and needs of the
customers and the lack of supply in the market. Entrepreneur\ and investor proceed to build the
idea of creating, producing and selling the product.
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11 Start-up – Start-up venture is the young company that is just launched in the market or
just begin to develop. Start-ups are usually a small business and being financed and
operated by the individual or group of founders. These companies offer the products
which are not being delivered elsewhere in the market (York, O'Neil and Saraswathi,
2016).11 Acquisition – This is the situation where large companies purchase the share of the small
entrepreneur to take control on it. Through this they also try to purchase all of its sahre
and stocks.11 Franchise – In this business situation, one company sells the product of the other
company with having the name and image of the other company and its products.11 Joint venture – This is the condition, when two or more company jointly come together
in order to open new business with having new idea or product (Urbano and Aparicio,
2016).11 Public-Private partnership – In this, private and public companies collectively open the
organisation to the betterment of the society.
Relationship between types of entrepreneurial venture and typology of entrepreneurship
Individual entrepreneurship and start up: There is relationship between is, That both the ventures
can be start or build by the individual on a low scale. That provide the service and product to the
customers.
Corporate-entrepreneurship and joint venture: These both type of the ventures works for the
development of the organisation and to increasing the growth profit of the organisation
Life cycle of entrepreneurial firms
There are three stages of the entrepreneurial firm:
Birth stage – This is the initial stage of the any entrepreneurial firm where founder is ready with
all the plans, investment and ready to take risk and implement the plan to start firm.
Breakthrough stage – In this stage business consistent generate the source of income and taking
new customers, cash flow has improved (Corporate Entrepreneurship2019).
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Maturity stage – In this stage firm has stable profit year on year and firm enjoys the high
growth rate.
Conclusion
From the above it is concluded that there are different types of ventures that help in economic
growth of the country and also concluded that these ventures are interconnected with each other.
Similarities and differences between entrepreneurial venture
Introduction
This will include the difference between entrepreneurial ventures. And will also include
the similarities of these entrepreneurial ventures and short brief about intrapreneurship and
Social entrepreneurship.
Differences between three main entrepreneurial ventures
Life style venture Smaller profit
venture
High growth venture
Type This life style venture
consists under
franchise venture.
All the low profit
venture consist under
the start up.
This high growth
organisation comes
under the joint venture
and public private
venture.
Aim Aim of this venture is
to transform the
lifestyle of the
common people.
Target of this low
profit venture is to
deliver small-scale
products at low price.
Target of high growth
venture is earn the
maximum profit share.
Products This venture deliver
the products which are
related to daily life
style of the people,
like clothing’s,
footwear, beauty
Low profit venture
includes grocery store,
bakeries, hair dresser,
photographers,
restaurants, etc
(Mrkajic, Murtinu and
High profit growth
ventures includes the
large retail
supermarket,
manufacturing of the
car, big hotels and
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products and many
more.
Scalera, 2019). many more.
Market share It has limited market
share.
It has very limited
market share that can
contribute in economy.
Half of the market
share in the market is
by the high growth
ventures.
Opportunities There are large
number of
opportunities in the
market for the life
style venture, because
its products are used in
every day life style of
every common people.
At domestic market
level, it has large
opportunities.
Market opportunities
for the high growth
ventures are very high
and also have the
opportunities to
expand its market
globally.
Investment For Life style venture
there is also no need to
spend such high
amount (Hamdan,
2019).
These small-scale firm
can be established by
investing low amount.
These types of
ventures need high
amount of investment.
Similarities of entrepreneurial ventures on the basis of:
New ideas – All the entrepreneurial ventures are being started with the same motto of provioding
the new generated products with having the new ideas that are useful for the customers and
market. And also not available in the market already (Fayolle and Gailly, 2015).
Being risky – All of the ventures are being started and begin their business with having the risk
of failure. They do not take tension of being fail in the future. They have to take risk for setting
up any new business in the market. The business will give the return of their investment or not,
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customers would accept the new products and services or not. There are high risk of setting up
new ventures that every type of ventures take risk while building up new venture.
Developed by open minded entrepreneurs – All of the entrepreneurial ventures are operated
by the open minded entrepreneur as they are open to make change in their strategies that help
them to be successful in m,market. Open minded entrepreneurs think beyond the boundaries that
helps to set up new ventures with new ideas and innovative products (Hechavarría and Welter,
2015).
Having more innovative products – Like start is usually set up to provide the new products and
services which are not delivered in the market. Like this joint venture are also played the same
role to provide the innovative and new products which the company not produced before. And
the public private partisanship is done with the aim of changing society and make improvements
for this they make new and innovative policy and start firm that helps in changing the society.
Entrepreneurship and Social entrepreneurship
Entrepreneurship is the practice of the entrepreneurship by the employees within the
organisation. It involves the new ideas and opportunities in order to fulfil the purpose of creating
the value in the organisation. And Entrepreneurs are those who applies this practice in the
organisation and takes the responsibility to innovate new ideas, products and process or any
invention in the organisation. This helps the firm to grow more, attract the new customers and
increasing the revenue of the firm (Kuratko, 2016).
Social entrepreneurship is the basic level of business where business is being run for the
social cause. It works to recognise the social problem of the society and work for to achieving
the social change in the society by applying the entrepreneurial principles, process and
operations. These organisations only work for the betterment of the society not for gaining the
profit. This social venture is all about to research the social problem and then creating and
managing the social venture to accomplish the target of the desire change in the society, this type
of the ventures helps the society to improvement its living standard. These organisations
associated with the non-government and non-profit organisation.
Conclusion
It has bee concluded from above study is that there is difference in the life style, smaller
profit and high growth ventures that describe the investment level and products of these ventures.
And also got to know the life style stages of the firms.
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LO 2
Impact of micro and small business on the economy
Introduction
This answer will include the contribution of the small and medium-sized business in the
economy and will also include the analysis of role of SMEs in the UK economy.
Impact of medium-sized businesses on economy
Enhancing the market share of medium sized organisation increases and contribute in the
growth of a country’s economy. Increasing job opportunities in medium sized organisations
helps in reducing the level of unemployment which assist in improving the economic condition
of the country. (Burns and Dewhurst, 2016). According to recent studies, the rate of registration
of medium sized organisation has been increased as compared to multinational companies. A
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Illustration 1: Statics of UK SMEs business
(source: The Role of Start-ups and Small Businesses in Today’s Economy)

major benefit of medium size organisations is that they have high potential and capability of
generating higher employment at relatively low investment and capital.
These types of businesses easily adapt frequently changing business environment
and take advantage of innovative technology as well as making use of internet for e-commerce
and transaction.
Impact of large businesses on economy
Large organisations or businesses also plays a major role in development of economy in a
country. These types of businesses contribute in local as well as global economy by expanding
the company’s reach in global market.
The large industries or organisations have greater productivity that helps to earn a large
amount of profit in the global market. It provides increased wages improving the employment
rate and provide great benefits to the economy of a country.
Impact of SMEs on International Economy
SME’s are responsible for enhancing the market competition and also brings new
techniques within the business environment by heating up the marketplace. (Kozubíková and
et.al, 2015). These types of business cover a major part of market in developed as well as
underdeveloped countries. More than 90% of SME’s can be found in every country that are
responsible for increase in employment rate.
Conclusion
From the above answer it can be concluded that the role of the SMEs in the UK economy
has large as comparison to the private sectors business and provide the job opportunities in the
UK economy.
Importance of small business and business start-ups to the growth of social economy
Introduction
This answer will include the importance of the small business and start-ups in the in the
growth of the social economy. And also include the explanation of the CSR (Corporte social
responsibility).
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Social economy focuses on the relationship between social behaviour and economics. It
examines, how the ethics, social norms influence the buying behaviour and cre4ate the quality
job that can have the ability to meet the current challenges.
Social enterprise is that which helps in improving the social well-being, environmental
sustainability and economic performance, living standard of the society.
CSR (Corporate Social Responsibility)
Corporate social responsibility is a strategies by which companies take the responsibility
for betterment of the society and environmental impact of their business. It is the integration of
the social beneficial programs and activity into business model and culture (Rhodes, 2015)..
Importance of business start ups
 Start-ups help to create more jobs – As the number of start up increasing in the
country, number of jobs are also increase with it. This help to reduce the unemployment
from the country by providing them large number of jobs to them.
 Increase in GDP - GDP (gross domestic products) also be increased by the help of the
start up business. As the number of start up business are contribute a lot to the economy
so it help to increase the share of GDP in country's economy.
 Better living standard – All the star ups are begin with having the creative ideas and
new technology, as this star ups help to provide more jobs to the people , then indirectly
the living standard is increased and become better (Brinckmann and Kim, 2015).
Conclusion
From the above answer it has concluded that SMEs play vital role in increasing the social
economy and social enterprise. Small business also helps in improving the society and living
standard of the society.
LO 3
Characteristic traits and skills of successful entrepreneurs
Introduction
In this answer it will include Personal characteristics and skills of an entrepreneur that
help them to become successful entrepreneur. And will also discuss about whether entrepreneurs
are born or made.
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Personal characteristic of successful entrepreneurs
Various characteristics are carried by the successful entrepreneurs, these are as follow:
 Need for achievement – There is the need for the entrepreneur to achieve the success in
the market. They do not have any other choice except this and also do not have career
option that they can follow after this (Brinckmann and Kim, 2015).
 Self-confidence – Entrepreneurs are confident regarding all their activities and decisions.
They do not doubt on their decision making skills ans strategies which they take for the
success of business (Ziyae and Heydari, 2016).
 Being Competitive – This is the main characteristics of the entrepreneur that are always
ready for the competition in the market and do not afraid from the competition growth.
Skills for successful entrepreneurs
 Business skills – Entrepreneur have the business skill in their by birth. This is being
gained and adopt by their blood if any family member is good entrepreneur.
 Technical skills – Successful entrepreneur is always up to date with the changing
technological change. This help thy entrepreneur to become successful in the market.
And help to provide quality product as well to the customers (Ziyae and Heydari, 2016).
 Human relations skills – Entrepreneurs are very active in making relation with the
people like customers, clients and other stakeholder. This help to in their strategic
planning, and become successful in market.
Entrepreneurs are born or made
Many entrepreneurs are there in the worlds in which many of them innate abilities and
many made by life experience and self-qualities. Self-characteristics of the entrepreneurs like
confidence, open minded, flexibility, technical skill all are not gained from the DNA, have to
learned from the experience and hard work that make entrepreneur a successful entrepreneur
(Sanberg, 2018).
Conclusion
From the above discussion it can be concluded that the there are various characteristics of
an entrepreneur 5that make them successful and also concluded that they made not born.
Aspects of the entrepreneurial aspect’s personality reflect entrepreneurial motivation and
mindset
Introduction
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In this section it will cover the explanation of the mindset and various mind set of the
entrepreneurs which make them successful and will also explain the mindset situation that
encourage and force them to be an entrepreneur.
Mindset is collection of thoughts and beliefs that shapes the thoughts and behaviour of an
individual and also affects the way of thinking and activities what an individual does. It is a
individual's way of thinking and and its opinion (Casper, Sonnentag and Tremmel, 2017).
Mindset of successful entrepreneurs Grabbing opportunities – There are so many opportunities available for people to grow
and develop. It is the remark of a successful entrepreneur that they never miss the
opportunities available in front of them (Allan, 2018). They always try to learn and
acquire knowledge. They garb the opportunities on right time. Undertaking obligation – This is also one of the mindset that a successfully entrepreneur
have. A person who have desire to grow and develop have desire to undertake the
obligation and responsibilities as they be never afraid or fear of taking any risk or
responsibility on them. They always complete there duties and respondent by honesty and
on time.
 Positive thoughts – Positivity is the essence of a successful entrepreneur. A person who
starts the business always think positive that there business will be continue forever. At
time of any hard situation, they handle the situation very nicely and evaluate the positive
outcomes.
‘Situational factors’ shaping entrepreneurial mindset Unemployment –In order to make the mindset of any person unemployment is one of the
top factor. In the expectation of becoming entrepreneur, individual tends to start the
business due to the reason of unemployment or do not have job to earn money and satisfy
the needs (Crum and et.al, 2017). This situation set mind that being an entrepreneur and
work on their own conditions and terms is better than an unemployment person.
 Family factors and commitments of family members – This is another factor which
influences the mindset of a person. This factors denote that a person have responsibility
or commitment to his/her family to fulfils the needs and wants of family members. Thus,
in order to fulfils those needs, entrepreneur starts the business because they are not able
to fulfil those needs with other jobs (Allan, 2018).
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 Education of Entrepreneurial – Education is one of the biggest assert of an individual
as it is the assert or thing which is not able to steal by anyone. There are several courses
which are available for entrepreneur from which they can get understanding and
knowledge of starting the venture or businesses, what are the benefits and risk and many
other factors. By learning or grabbing knowledge, individual take risk and start the
business to ear profit and satisfy the needs.
Conclusion
From the above it can be concluded that there are various mindset of the entrepreneur and
situations which force them or encourage them to be a successful entrepreneur.
LO 4
Background and experience can hinder or foster entrepreneurship
Introduction
In this answer it will cover the real example of the entrepreneur to examine the effects of
background on the entrepreneurship. It will also cover the link between characteristics and
background of an entrepreneur. Furthermore, it will include the risk and rewards of business
start-up.
For understanding the background of the entrepreneur how it influences the behaviour of
an entrepreneur real example of Jaksetic Tata is relevant. Who is Indian pioneer industrialist and
entrepreneur who founded the Tata group and Tata steel? Net worth of the company is
£96,230,000 in the year of 2016. Tata group is India's biggest conglomerate company (Crum and
et.al, 2017).
Background factors of an entrepreneur
Personal background – Jaksetic Tata was born in march 3, 1839 and he w as the only son of
Unscrewing Tata. After graduation he joined his father's export-trading firm and helped him to
establish its branches in japan, china, Europe and United States. After that in 1868 he founded
trading company and later into a Tata group. Thus, the personal and family background of the
entrepreneur influences the behaviour and thinking and attitude of them to be an entrepreneur.
Education – At the age of 14 he enrolled at the Elphinstone college, Mumbai and completed his
education as 'Green Scholar'. Impact of the education background on the entrepreneurship helps
them to be able to handle and get known all the methods and policy and tools that an
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entrepreneur can use or apply on the business and also improve the communication skills and
human relation skills that help to maintain relation I the business (Dhillon, 2017).
Experience – Experience does matter to run any kind of the business. To operate business and
run it successfully experience helps individual to understand the business policies and strategies
and also helps building relation in the market with known person. Like Jaksetic Tata had the
experience when he was working with his father and helped him to expand the business. This
experience helped Jaksetic Tata to expand his business.
Economic environment – Economic environment of the family and nation helps any individual
to establish new business. Family' good economic condition can help individual to manage all
the resources which are necessary to establish a business.
Link between characteristics and background of entrepreneur
There is strong link between the characteristics and the background of the entrepreneur.
Some of the characteristics get the entrepreneur from their family background and experience.
Characteristic of the confidence an entrepreneur gets from the background like if an individual
has the family business, then get the experience and because of having experience in the business
a confidence is also develop in the individual of doing anything (Dhillon, 2017).
Like this business skills and education have strong connection. A student gets the
business skill in their education life. Th9is education background helps the individual to apply
the business in the business and make improvement and enhance the business.
Business Start ups
For start-up any kind of the business there are many risk individuals have to take and
after that there are many rewards which an individual can earn.
Rewards
 Job Satisfaction - After setting up a business biggest reward is the self-satisfaction that a
individual can get. Because there are many people who are doing job on very high
package but do not satisfy and happy with their job. But in the business individual can
start a business of their choice and their own terms. Which give them high level of
satisfaction even if they do not get high profit (Schwienbacher, 2018).
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 Higher Wages – Another reward is that profit margin and wages to employees are higher
than other job. In the job employee get fixed amount of wages every month but in the
business, entrepreneur get the high and different amount of profit margin every month.
And they do not have to share this profit with anyone.
 Greater control – Some employees do not like to work under pressure but they have to
do. Business provide the facility of greater control (Dhillon, 2017). Entrepreneur has a
greater control on overall business, they can take decision according to them without
having any interruption.
Risks
 Financial Risk - Setting up a new business has big risk of finance. For setting up any
business need large amount of finance. If the business is not run successfully there is a
high risk of losing all the money and very low chance that it can cover up.
 Estimating popular interest - Any business is run on the basis of the customers demand
and choice and customers mostly buy those things which is trending in the market. It is
risky to estimate the demand of the customers and popular interest. If an entrepreneur
cannot fulfil the demand and choice of the customers business cannot run for a long time
(Dhillon, 2017).
 Trusting a key employee - When entrepreneur start a business, they do not have full
team of employees working with them. Finding trustful employees for a business is
difficult if employees are not trustworthy, they can spoil the business, by fraud and
selling item in any rate etc.
Conclusion
From the above answer it can be concluded that background of the individual also affects
its characteristic and help them to become a successful entrepreneur. It will also be summarized
that there are many high risks have to take before setting up a business and after that many
rewards also earn from the business.
CONCLUSION
From the above study it can be concluded that entrepreneurship and small business play a
vital role in the economy of any country. For set up the new business and venture in the
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marketplace need to have the knowledge about the different types of the entrepreneurship and
entrepreneurial ventures which describe the entrepreneur which type of the venture and business
is suitable accordance to their investment. It is also concluded that small and micro business play
a vital role to increase the economy of the country and has a strong impact on the country's
economy. From the above study to get to know the importance of the small and micro enterprise
and for establishing the new business entrepreneur's experience and background work well to
determine the market situation and analysing the need and wants of the customers.
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