P1. Different types of entrepreneurial ventures and typology of entrepreneurship

Entrepreneurship and Small
Business Management
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
P1. Different types of entrepreneurial ventures and typology of entrepreneurship.....................3
P2. Similarities and difference between entrepreneurial ventures .............................................5
TASK 2. ..........................................................................................................................................6
P3. Interpret relevant data and statistics and impact on micro and small business economy ....6
P4. Importance of small business and start ups in the growth of social economy after Brexit.. .8
TASK 3............................................................................................................................................9
P5. Determine the characteristic, trait and skills of two successful entrepreneurs .....................9
P6. Aspects of the entrepreneurial personality and reflect their motivation and mindset.........10
P7. Background of Mark Zuckerberg and Bill Gates................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15
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INTRODUCTION
To become a successful entrepreneur it is essential that persons possess some extra
ordinary qualities which help them to become successful. It can provides directions to the
management of company so that it can manage its business successfully. This report covers the
following topics which are as follows: different types of entrepreneurship ventures and their
types, similarities and difference between entrepreneurial ventures, importance of start-ups.
Apart from this it also discuss about characteristic, traits ans skills of successful entrepreneurs.
TASK 1
P1. Different types of entrepreneurial ventures and typology of entrepreneurship
Entrepreneurship is an business activity which is accomplish by a person. It is a capacity
and willingness to develop, manage and control a business venture along with risk taking ability
to makes profit.
Limited Company:
It is that company which limits the amount of liability confiscated by the shareholder of
an organisation. It describes the liability of members by their stake or by way of investment.
There is two types of limited company which are public and private company.
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Public company:
It is that company which can issues shares to the public or open market. It stocks can be
traded in stock exchange.
Private company:
It is that company which can raised the funds by issuing shares to the general public and
it cannot trade in stock exchange (Sahut and Peris-Ortiz, 2014).
Social venture:
Social venture are those who work for the benefit of society and its welfare. They follows
the rules and regulations which are needed to be follow by them. The aim of the business is to
work for the benefits of people. Its follows the culture and environmental changes so that they
can satisfy the persons. They follow their core principles and values and perform its work
according to that. They impact the society by its image and money is not much important for it.
Scaleable ventures:
Scaleable ventures are those who scale its investments and analyse that is how much it is
beneficial for them. It is a type of operating firm who deals in business to business.
Types of typology of entrepreneurship are as follows:
Survival ventures:
It provides the essential substance to the entrepreneur and member of its family. This
type of business does not necessary to be registered. It has very less assets, no business
relationship and has operates is business on barter or cash basis.
Lifestyle ventures:
Life ventures are those who has relatively steady source of income source for owners
based on a workable business model. This type of venture has employees, premises but chances
of growth are less. It can not accomplish its business operations because of limited capableness. .
Managed growth ventures:
This type of ventures has follow the business model and want to achieve growth in its
business. It focuses on launches of new product, maximise the facilities and wants to establish its
brand image.
Aggressive growth ventures:
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This type of ventures always focuses on development with the help of innovation in its
business. They want to achieve growth by analysing the opportunities in the market. They want
to makes its business internationally.
P2. Similarities and difference between entrepreneurial ventures
There are various entrepreneurial venture and they are different form each on the basis of
ownership, control, type of business, liability, capital requirements and management. It has also
similarities among them on the basis of nature of business, size of organisation, rules and
regulations (Sampaio and Font, 2012).
There are different types of entrepreneurial ventures which are started by different
entrepreneurs. The difference between these venture are discussed below:
Particular Social venture Scalable venture Ltd. Company
Definition These are those
ventures who
work for the
welfare of society
.
It is those venture who
follow the B2B business
model.
It is a separate legal person
made up of an association
people.
Management It is owns and
managed by the
members of
venture who
established this
venture.
It is managed by the all
members of the venture.
Managed by the directors
(Zhang and Cloodt, 2014).
Liability limited liability
for business debts
Limited liability for
business debts (Winkel,
2013).
As company members are not
responsible for company's
debts once they hold fully
paid shares.
Capital
requirements
Can be start with
limited capital.
High capital
requirements.
Requires huge financial
resources.
Taxation As profit from the Profit from part of Profits are subject to
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part of individual
income for
financial year.
ventures income for the
fiscal year.
corporation tax in company.
Ownership and
control
Owned and
controlled by one
owners of
ventures.
Owned and controlled by
owners of venture.
Owned by the shareholders
and controlled by board of
directors.
TASK 2.
P3. Interpret relevant data and statistics and impact on micro and small business economy
Micro and small business is provides the help to an economy to an country so that it can
generate more revenue. Micro business has very small in nature and capital requirement is very
less and its includes spaza shops, general or grocery stores. Small business required more capital
investment than micro business. It include handicraft business, courier services etc. It can impact
the economy in the following ways which are as follows:
High employment:
It generates the more employment opportunities in the country because people are
engaged in various business activities related to small and medium business. It helps to
maximize the productivity in the country
Increase Gross Domestic Product
Higher production from these small and medium business can help the country to
maximize the rate of GDP which is good sigh. Its shows the growth and development in the
economy (Wright and Stigliani, 2013).
Standard of Living:
Small and micro business provides the employment to those persons who are
unemployed. If people have work to do than they will generates revenues and if they have money
in their hands than they can spend it to fulfil its wants and desire. It improves the standard of
living of persons because they will buy superior and quality products. It helps the economy to
grow faster because purchasing power of people are rising.
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Growth and development:
Small and micro business can help the country by maximise production, employment
generation, standard of living and GDP. These all things can contribute to the growth and
development of the economy. Through it a country can be developed.
Statistics interpretation of micro and small business on the economy are as discussed below:
(Source: Micro and small business index. 2018)
https://ec.europa.eu/growth/smes/business-friendly-environment/performance-review_en
Interpretation:
In 2008 micro and small business index was around 100 but in 2009 it is decreasing and
it reached around 80. It shows that these business were not contribute effectively in the economy
of UK. So employment, GDP, production are minimising in the country. After 2009 it is
increasing till 2015 which is a good sign and it shows the growth rate and development is
maximizing in that period. After 2015 to 2018 it was is fluctuating which reflects that economy
is not stable and micro and small business does not perform their business effectively and it not
good for the develop of the country.
P4. Importance of small business and start ups in the growth of social economy after Brexit
Brexit is a descriptor British exit and United Kingdom decide that they will leave
European Union. After that a person from Europe can not visit the country UK with out visa.
This incident was happen in 23 June, 2016. From this decision of government business is get
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affected and growth of economy is declining in after that period. GDP goes down from this
incident and it is the lifeblood of a country. Reducing Gross Domestic Product influence the
small business and well as buying behaviour of customers regarding goods or services. The
growth rate is 0.5 percent in services which rise to 0.8 percent but manufacturing and
construction business is reducing. Without this an economy can not grow and develop. Small
business and start-ups can contribute to the economic growth and overcome from Brexit impact
and It can be possible by the following things:
Investing in products and services people need:
It can encourage the person to to establish the business. Small business and start-ups look
the opportunity where they can fulfil the demands of consumers. It is possible when they invest
in those products and services through which desires and needs of the customers can be satisfy.
Through this way small business and start-ups can over come from the impact of Brexit and
maximize the economic condition of its country (Mariotti and Glackin, 2015).
Providing employment opportunities:
Small business and starts- ups provides the employment opportunities to the people and
hire them for work. They are the job providers and support the society by maximizing and
improving standard of living of persons in the country. It helps to economy of UK to overcome
from the impact of Brexit.
New technologies promote efficiency:
Small business and start-ups can use new technologies which promotes the efficiency in
work. It helps the country towards rapid growth because innovation makes the work effective
and maximise the creativity. Developing innovative products and solutions can help the
economic growth and development. It can provides help to over come from the impact from
Brexit.
Addressing environmental challenges:
It is important for the business to address the challenges of environment. Small business
and start-ups can take this challenge and find out the innovative ways through these problems
can be solve. There are various environmental challenges like: weather, climate, preserving
biodiversity in the environment etc. Small business and start-ups can over come from these
challenges through innovation in their products and services so that these environmental
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condition does not affect the economic of the country. It is the way through which impact of
Brexit can be minimize.
TASK 3
P5. Determine the characteristic, trait and skills of two successful entrepreneurs
To become a successful entrepreneurs there are various skills, traits and characteristic are
needed which help them to get growth and success. These things make them different from the
other entrepreneurs. Mark Zuckerberg and Bills Gates have these qualities which differentiate
them from the other persons. Comparison on the basis of following things which are as follows:
Characteristics: It is a distinguishing feature or attribute of an item, phenomenon, person etc.
It is mainly three categories like: functional, physical and operational.
 Effective decision making ability can help them to find the solutions of a problem which
them different from others entrepreneurs (Gill and Biger, 2012).
 Mark Zuckerberg and Bills Gates have better leadership style which make them able to
leads its group members. This quality does not possess in the other entrepreneurs. For
example, if their companies facing crises in a particular country. In that situation they
take the lead and visit that specific country so that they can understand the situation and
find the better solutions. They motivates their employees and guide them to accomplish
the target. Both of these have influencing power which can encourage the workers so that
they can make the favourable situation and bring the organisation in profitable situation.
These characteristics make them a great and effective leader which differentiate them
form the other entrepreneurs. All persons does not possess these qualities so they cannot
achieve success.
Trait: Component of a human behaviour that is assumed to serve as an explanation of a person
enduring personal characteristic.
 They both have passion to do something big and different and achieve success. It makes
them committed towards in their work which is needed by a successful person. It helps
them to achieve their targets. It makes them different from other entrepreneurs because
all person does not posses this quality.
 Both of these are optimistic person they take calculative risk. They always look the
positive side of a thing which they are do in its business. Mark Zuckerberg introduce
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Facebook first time. That period a normal person does not able to think that with the
help of internet they can connect the people around the world. It does not know that it
will a successful move or not but they have positive thinking which enables them to
analyse the need and do something different. It is very successful move which help them
to get success. It shows the positivity that why it get success.
Skills: It is a ability of a person to use its knowledge and do work efficiently and effectively. All
persons have different- different skills which makes them different form other people.
 Mark Zuckerberg and Bills Gates have effective communication skill so that they can
able to control their business in different countries around the world. They have good
skills which makes them able to communicate their thoughts and ideas to other persons in
their company. This skill does not possess by the other entrepreneurs so they does not
able to show their thoughts and communicate their views to the other members in the
organisation (Fayolle, 2013).
 Effective management can improves the efficiency and it helps the person in the better
decision making so that they can achieve their targets. Management style of these
entrepreneurs make them successful and manage the business around various countries in
the world. It makes the difference between them and other entrepreneurs.
These characteristics, skills and traits make them different from other entrepreneurs and
makes them a effective and successful entrepreneur. So they Mark Zuckerberg and Bills Gates
can able to manage and control its business. These qualities help them to take better decisions
and achieve the growth.
P6. Aspects of the entrepreneurial personality and reflect their motivation and mindset
Personality of an entrepreneur can motivates the person and improve its mindset so that
they can take better decisions in the organisation. Mark Zuckerberg and Bills Gates can motivate
the persons and change their mindset so that they can think positive. There are following ways
through they can encourage the people:
Effective decision making:
Effective decision making can influence the persons in the organisation . It develops the
confidence in the people which motivates them to perform better and put their maximum efforts
to achieve their targets. Mindset of workers can be positive through it because they feel
confident and work effectively.
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Leadership:
It is an ability of a person to motivates and encourage the people. Mark Zuckerberg and
Bills Gates have this quality through which they can lead and influence the workers to do work
better and effectively. They have participative leadership style which motivates the people to
perform better and it makes the positive mindset of employees so that that feel committed
towards their work (Chaston and Scott, 2012).
Passion:
Passion helps the person to accomplish the task in effective manner. It develops the
commitment that a person can do a think and it enable the person to solves the problems and
motivates to achieve the targets. It develops the mind of people that it can put its maximum
efforts to accomplish the targets and it shows the positive mind set of the persons.
Optimistic:
It shows the thinking of a person and encourage to perform in effective way so that goals
can achieve. It changes the mindset of the persons and motivates them to think positively so that
they can fulfil their objectives. Negative mentality can minimise the efficiency and hamper the
productivity. Optimistic behaviour can maximize the effectively in the work and help the person
to solve the problems which it is facing.
Communication:
It is the need of every business and it helps the person to perform their roles and duties
effectively by the employees. Effective communication improves the efficiency because other
person can understand better that the manager wants to communicate and which direct they have
to follow so that targets can be achieve. It motivates the persons to perform better because they
know how to do the work and which manner they have to do. It change the mindset of people
which help him to accomplish the task on time and smoothly (Burns, 2016).
Effective management:
Effective management can motivates the persons to perform better because and it
improves the coordination between the different departments and the members in the
organisation. It helps to manage the work properly so that persons can achieve the targets on
times so it develops the confidence on them. This motivate the people to perform better as per
the need of organisation. It change the mindset of workers because they committed towards their
work which help them to do the things efficiently.
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So these two people can motivate and change the mindset of people to work better and
effectively and proper way.
P7. Background of Mark Zuckerberg and Bill Gates
Mark Zuckerberg:
Mark Zuckerberg is an American technology entrepreneur and philanthropist. He is
known for co-founding and leading as its Facebook chairman and chief executive officer. He was
born on 14 May 1984 at White Plains, New York, USA. He was born into a well educated family
and developed an interest in computer programming at early age. As at the age of 12, he created
a messaging program named Zucknet which he implemented as an inter-office communication
system for his father's dental practice. As due to high interest level in computer he got his
computer programming teacher when he was in high school. After graduating from prep school
he enrolled in Harvard University for his further education (Burns and Dewhurst, 2016).
Success Story:
As many people attend the Harvard University, Mark Zuckerberg became known quickly
as the go to computer programmer on campus. By his sophomore, he had already built two
programs, Coursematch and FaceMash. As both of its programme gain huge popularity in short
span of time. But the university shut down the latter program after it was deemed to be
inappropriate. As based on his acclaim on campus, Zuckerberg partnered with friends to create
social networking site that allowed Harvard students to connect with each other easily. The site
officially went live in June 2004 with the name of The Facebook and Zuckerberg ran it out of his
dorm room. As Zuckerberg dropped out of college to pursue his passion which he created name
Facebook. The website reached 1 million users by the end of 2004. This growth has attracted the
many venture capitalist firm. After than he moved to Silicon Valley in 2005. Facebook received
its first investment from the Accel Partners which invested $12.7 million in the site. By the end
of 2005, Facebook had opened up to students attending other schools which helped the Facebook
to reach its user 5.5 million. Facebook has get various offers for acquisition from big name like
Yahoo and Microsoft. As later on Facebook acquired the Instagram, Whatsapp and Oculus.
So this is how he created Facebook and become so big name in technology world.
Bill Gates:
William Henry Gates is an American entrepreneur and businessmen. He was born on 28
october 1955 at Seattle, Washington, USA. At the age of 17, he teamed up with Allen to form a
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Venture called Traf-O-Data to make traffic counters based on the Intel 8008 processor. He has
been consistently ranked among world's wealthiest people starting from 1987. He developed his
interest in computer while he was in school. He wrote his first computer program as a young
teenager. He further enrolled at the prestegious Harvard college though he did not stay long
there. He dropped out to pursue his passion in computers and teamed up with Paul Allen to form
Microsoft.
Success Story:
Bill Gates and Paul allen collaborated to found Microsoft in 1975. In the beginning they
adapted BASIC, a popular programming language for use on microcomputers. It proved to be a
success and they continued to develoWinkel, D., 2013Wright, M. and Stigliani, I., 2013Zhang,
Y., Duysters, G. and Cloodt, M., 2014.p programming language software for various systems. In
1980 the duo was approached by International Business Machine with a proposal that Microsoft
write the BASIC interpreter for IBM's upcoming personal computer. After the launching of
Microsoft, Bill gots huge success. Microsoft becomes more popular after launching the windows.
As this is the success story of Bill Gates (Blackburn and Wainwright, 2013).
CONCLUSION
From the above report, it has been concluded that entrepreneurs and small business can
contributed towards the growth of economy. There are various types of entrepreneurial ventures
and typologies which have its own features and they are managed by the persons according to
their management skills and capabilities. Micro and small business maximizes the GDP and
business growth in the country. Entrepreneur skills, traits and characteristic can motivates the
persons so that they can become successful businessman.
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REFERENCES
Books and Journals
Winkel, D., 2013Wright, M. and Stigliani, I., 2013Zhang, Y., Duysters, G. and Cloodt, M., 2014.
Blackburn, R. A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development. 20(1). pp.8-27.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Burns, P., 20Mariotti, S. and Glackin, C., 2015Sahut, J. M. and Peris-Ortiz, M., 2014Sampaio,
A. R., Thomas, R. and Font, X., 2012.engagement. Journal of Sustainable Tourism.
20(2). pp.179-193.
Sánchez, J. C., 2013. Winkel, D., 2013Wright, M. and Stigliani, I., 2013Zhang, Y., Duysters, G.
and Cloodt, M., 201416. Entrepreneurship and small business. Palgrave Macmillan
Limited.
Chaston, I. and Scott, G.J., 2012. Entrepreneurship and open innovation in an emerging
economy. Management Decision. 50(7). pp.1161-1177.
Fayolle, A., 2013. Personal views on the future of entrepreneurship education. Entrepreneurship
& Regional Development. 25(7-8). pp.692-701.
Gill, A. and Biger, N., 2012. Barriers to small business growth in Canada..Journal of Small
Business and Enterprise Development. 19(4). pp.656-668.
Mariotti, S. and Glackin, C., 2015. Entrepreneurship & small business management. Pearson.
Sahut, J. M. and Peris-Ortiz, M., 2014. Small business, innovation, and entrepreneurship. Small
Business Economics. 42(4). pp.663-668.
Sampaio, A. R., Thomas, R. and Font, X., 2012. Small business management and environmental
engagement. Journal of Sustainable Tourism. 20(2). pp.179-193.
Sánchez, J. C., 2013. The impact of an entrepreneurship education program on entrepreneurial
competencies and intention. Journal of Small Business Management. 51(3). pp.447-
465.
Winkel, D., 2013. The changing face of entrepreneurship education. Journal of Small Business
Management. 51(3) pp.313-314.
Wright, M. and Stigliani, I., 2013. Entrepreneurship and growth. International Small Business
Journal. 31(1). pp.3-22.
Zhang, Y., Duysters, G. and Cloodt, M., 2014. The role of entrepreneurship education as a
predictor of university students’ entrepreneurial intention. International
entrepreneurship and management journal. 10(3). pp.623-641.
Online
Micro and small business index. 2018. [Online]. Available Through:
<https://ec.europa.eu/growth/smes/business-friendly-environment/performance-review_en>
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