Entrepreneurship and Business Management1

Entrepreneurship and Small Business
Management
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TABLE OF CONTENT
Abstract..........................................................................page3
Introduction......................................................................page4
Task 1
P1....................................................................................page5-8
P2....................................................................................page8-12
Task2
P3....................................................................................page12-14
P4....................................................................................page15-17
Task 3
P5......................................................................................page17-20
P6......................................................................................page20-22
Task 4
P7......................................................................................page23-24
Conclusion.........................................................................page25
References.........................................................................page
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ABSTRACT
The current assignment provided detailed information regarding entrepreneurship
and the types of entrepreneurial ventures such as lifestyle venture, scalable, small,
medium and large sized ventures. In addition, the contribution of small and medium
enterprises in the economy of the UK is also discussed. These small businesses are
a major revenue generating source for the UK economy and give opportunity to raise
the living standards of the people by providing ample employment opportunities in
different sectors. The assignment also discussed the qualities which a successful
entrepreneur possesses and the influence of family background, education and
society on the entrepreneurial mind-set of an individual.
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INTRODUCTION
Entrepreneurship is the process of starting a new business where entrepreneurs
invest resources to develop a business. These businesses are vital for the growth of
the UK economy and are capable to provide a variety of direct and indirect livelihood
opportunities on a large scale. Every multinational company started as a small
business. In fact, 99% of all the businesses in the UK are small and medium
enterprises. The current assignment will discuss different kinds of small and big
business and their role in supporting the growth of the of the UK economy. The
assignment will also discuss the qualities which make a business person successful
and what is the role of family background, society and education of an individual on
the entrepreneurial mind-set.
The term of entrepreneurship can be defined from the’’ entrepreneur’’ that is
someone who carried out tasks and taking the business venture.in 18th century a
business became a part of life style in Europe. The early economists John Baptiste,
John Stuart Mill, defined various skills for an entrepreneur being responsible for high
productivity, earn profit and risk taken, all this in order to control the organisation.
As a trainer in the restaurant organisation, I am going to conduct different training
sessions as a part of the final selection. In this case I will demonstrate higher level of
thinking skills by encouraging questions, using problem solving strategies and
applying the connect concept. I choose to use this strategy as I found it effective for
my organisation because everyone can be aware of the relationship between the
information which has been given and their prior knowledge.
I will define from the beginning what entrepreneurship is and I will explain different
types of entrepreneurial ventures by giving examples of micro, medium and large
organisations. Also I will describe the characteristics of being a successful
entrepreneur, general traits and what skills will help to succeed.
.
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Task 1 - Explore and illustrate the range of venture types that might be
considered entrepreneurial.
P1: Examine different types of entrepreneurial ventures and explain how they
relate to the typology of entrepreneurship.
1. Define entrepreneurship.
Entrepreneurship is the process of creating a new economic activity. This activity
may be based on a creative idea of an individual which he wants to exploit in order to
gain economic benefits. An entrepreneur takes a risk by investing his personal
resources in a new business venture; this risk-taking capability is the key personality
trait of an individual to become a successful entrepreneur. The globalisation of
economies has provided new business opportunities and it motivates entrepreneurs
to explore new markets (Drucker, 2014). The entrepreneurship spirit has provided a
number of useful innovations to the society and opened a new door of opportunities.
Entrepreneur is a person who starts an enterprise. The process of creation, including
originality, capabilities, skills and difficulties is called entrepreneurship. Entrepreneurs
are known for thinking outside of the box. Creative thinking can take a smart,
capable business owner to another level of success.
Entrepreneurs:
CHARACTERIZED BY BEHAVIOUR
 Discovers and exploits
opportunities
 A creator who initiates
and motivates the process
of change
 Accepts risks
 Uses intuition, is alert,
explores new business
 Identifies business opportunities
 Leadership, initiates
new ways of acting
2. Explain what is involved in entrepreneurial activity and enterprise
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Entrepreneurial activity is an effort of an individual to derive value out of an
innovative idea. This idea may be about exploring new products in a new market.
Entrepreneurial activity is the basis for the growth of any economy and it provides
useful business innovations which are able to make radical changes in the society.
The entrepreneur activity is fuelled by the capability of an individual to take the risk
and see the long-term prospects of a business idea.
Entrepreneurship is an essential element for economic progress as it manifests its
fundamental importance in different ways:
a) By identifying, assessing and exploiting business opportunities;
b) By creating new firms and/or renewing existing ones by making them more
dynamic;
c) By driving the economy forward –through innovation, competence, job creation-
and by generally improving the wellbeing of society.
Entrepreneurial activity involves all the efforts of the individual to start a new
business in order to turn ideas into reality. This activity is driven by the passion of an
individual which keeps him motivated even in the time of difficulties.
3. Identify different types of entrepreneurial ventures by considering
entrepreneurship in a corporate or public sector context.
Micro/small organisations
Micro and small business enterprises in the UK are those small businesses that have
less than 50 employees and the annual turnover is not more than 10 million GBP.
These small businesses comprise about 99% of all the business in the UK and have
a great importance in the economic development of the company. These businesses
are the backbone of the UK and the government provides different loans and
advances for starting a new business or for up gradation of technology in the
established businesses. Almost half of the population of the UK is employed in these
small businesses (Jóhannesson, 2012). For example, Hakim group which is a group
of independent opticians and was established in 2001 has grown very rapidly and in
2108 it has been awarded as the best small organisation to work for. (Hakim Group,
2018)
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