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[SOLVED] Role of Small Businesses and Startups in UK Economy

   

Added on  2020-10-22

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ENTREPRENEURSHIP
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INTRODUCTIONEntrepreneurship is an activity of starting a new business by an entrepreneur who have anew and innovative ideas which can easily influence buying behaviour of people in favour theirofferings. It is usually entered into market with a hope of earning profits which can be possiblethrough giving new and effective products as compared to their existing rivals so that it makeseasy for an entrepreneur to shift the interest and buying behaviour of customers from rivals totheir company's offerings. Small business and start-up's contributes maximum support to thegrowth of GDP of country therefore the government also gives some relaxation to them during atthe time registration of company. The present assignment is based on the value of start-up's andsmall business in the growth of social economy after Brexit. The project also covers the differenttype of entrepreneurial project along with their relation with various typologies. Apart from this,various factors which can either hinder or foster the process of entrepreneurship are alsodiscussed under this report (Acs, Autio and Szerb, 2014).TASK 1P1: Entrepreneur: It refers to an individual who have new and unique ideas to start a newventure and provide better products and services that cannot be offered by other companies atpresent in market. In other words, a person who have the necessary skills and initiative toanticipate current as well as future needs on the basis of which bring good new ideas to marketfor the purpose of maximising the satisfaction level of targeted people.Entrepreneurship: It refers to an activity of designing, introducing and operating asmall business venture with a clear objective of earning huge profits. It comprises of land,labour, capital and natural resources. Entrepreneurial ventures play an important role in thegrowth of GDP of country therefore supported by government by granting them loan andadvances. There are various kinds of entrepreneurial venture which are briefly described asbelow:Small business entrepreneurship: A small enterprise can be defined as a businessventure which is independently owned and operated by an individual or group of individuals whoare not involved in any promotional activities. It is generally small in size and its ownergenerally hire local employees or family members. Such types of business includes grocery1
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stores, consultants, travel agents etc. The main objective of operating and running such businessby owner is to earn livelihood with the help of taking financial support from friends or smallbusiness loans.Scalable start-up entrepreneurship: It refers to such businesses who comes into marketwith new and innovative ideas with an aim to change the world. These entrepreneurs havebelieve on their innovative ideas and has ability as well as desire to transform their dream intoreality. It is usually start through developing new and innovative ideas that can be further sold toother business person to execute them more profitably (Brandstätter, 2011). Large scale entrepreneurship: It refers to businesses which are operated at large scalewith the help of shareholders also known as owners of company. The main objective of suchbusinesses is to achieve high sustainability and profitability through accepting market alterations.Due to operating business at large scale, the company can easily raise funds from differentsources for instance venture capital, investors, equity capital, bank loan etc. These organisationhas finite life cycle.Social entrepreneurship: It refers to such businesses which are established and operatedwith an objective of maximising the interest and welfare of the society. These entrepreneurs aremainly focused on bringing quality and healthy products in market so as to help people to live ahealthy lifestyle. It is also known as non-profit organisation whose main aim is to identify andfulfil the needs and requirements of people by offering them quality products and services at anaffordable prices. Apart from these, there are different types of typologies as well which are connected withentrepreneurial ventures mentioned above. Such typologies are explained as below:Research entrepreneur: It is such type of entrepreneur whose main focus is to identifythe needs of market and evaluate them properly so as to fulfil them as soon as possible. For this,they conduct research in order to identify various aspects of market such as prevailing demand,competition etc. which enable other businesses to make an effective strategies and planning toachieve competitive advantage. Large scale entrepreneur makes huge investment over researchand development practices for the purpose of identifying market needs and fulfilling them so asto bring their businesses ahead than their rivals (Carsrud and Brännback, 2011). Copycat entrepreneur: This is such type of entrepreneurs that mainly focuses on thesuccess of others and make their possible efforts in copying their practices in their business2
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