Entrepreneurship Theory and Practice

This assignment delves into the theoretical underpinnings of entrepreneurship. It examines how concepts like institutional theory and business models shape entrepreneurial activity and the formation of new ventures. The impact of entrepreneurship education on skill development and motivation is also discussed, alongside the influence of factors such as taxation and clusters on entrepreneurship. Finally, the legitimacy of social entrepreneurship and its evolving nature are considered.

Entrepreneurship

Table of Contents
INTRODUCTION...........................................................................................................................4
Task 1..............................................................................................................................................4
1.1 Different types of entrepreneurial venture related typology................................................4
1.2 Similarities and differences between entrepreneurial ventures...........................................5
TASK 2 .........................................................................................................................................6
2.2 Business start –ups contribution to the growth of the social economy after ‘Brexit’..........7
Task 3..............................................................................................................................................8
3.1 Characteristics, Traits and Skills entrepreneurs...................................................................8
3.2 Entrepreneur Mindset and Motivation ...............................................................................10
4.1 Different environments that foster or hinder entrepreneurship..........................................11
Conclusion ...................................................................................................................................13
REFERENCES .............................................................................................................................14

INTRODUCTION
Entrepreneurship is beneficial for economic growth and development. Entrepreneur is an
individual who identify the opportunities and an entrepreneur is ultimately responsible for the
performance of the organisation (Stevenson and Jarillo, 2007). On the other side
entrepreneurship is a process of designing a new business. In this report discussion about the
scope of entrepreneurship and different types of ventures. In this report student will learn about
the role and importance of the small business in economy along with impact of small business
on the economy. Apart of this report also describe factor which are create influence to start a
new business.
Task 1
1.1 Different types of entrepreneurial venture related typology
Entrepreneurship is a process to established new business firm. It is a initially being a small
business. A people who start a new business are known as entrepreneur and entrepreneurship is a
capability to develop a new business (Sharma, and Chrisman, 2007). There are 4 types of
entrepreneurial ventures:
Small business venture : The business which are owned and run by small entrepreneur that is a
called small business like grocery store, travel agents etc. The main motive of small business is
to make profit only. Small business venture is based on minimum investment and earn high
profit. In small business there is no need for such any other partnership. One good thing about
the small business venture is always hire local talents.
Life style start ups: life style start ups is like related to general people choice. Where earn
money from the people passion and profession like someone like passionate about the drawing
and animations so entrepreneur find these type of people and start a new venture and it is a way
to earn money.
Social venture: Entrepreneur start a new venture is like social venture, it is non profitable
venture. Which means social venture are fight with the nation cause and aware from them to
public(Santos , 2012). Social venture is not for wealth creation it is a way of social service
which are help to make the world better and beautiful.

Scale able start up ventures: Scalable venture is highly different from small business venture. In
scalable venture companies aim is very high(Gartner, 2007). They develop innovative and
creative ideas and than launch new products. Scalable venture is only hire the best employees
who can earn help to thinking more creatively. For example Facebook, Google, Skype etc.
Large company ventures: Large company venture is for only big companies where capital
investment is higher from other venture. In this venture company is in high scale, where in this
venture two big companies are work together and develop more effective products for
customers. In these venture company must be focus on customer demand and needs. Main
motive of this venture is as much as can earn profit and also develop new product range. These
type of venture are most of the time affected by the change in customers preferences. So in that
case we can say , these venture are customer-oriented. Furthermore, all of the above venture are
related to typology of entrepreneurship, which means that the various types of entrepreneurship
ventures are connected with its typologies. Small business ventures are those which involves
small entrepreneur whose main motive is to make profit by starting up small business. Small
business is hire local talent those talent are contribute in our economy. On the other hand large
scale business are related to high capital investment(Shane, and Venkataraman, 2000). In this
venture main focus on earn maximum profit and along with fulfil their customer needs and
expectations. Large scale venture is customer oriented where customer is taking services and
satisfied from their products.
1.2 Similarities and differences between entrepreneurial ventures.
As per the different types of venture those all are interchangeable. In those venture there are
some similarity as well as difference.
There are the main differences in entrepreneurial ventures:
On the basis of time all of these ventures are work in different times. There are work
practices is difference which means in those venture all have a different working schedules and
different working practices. Nature of job is also different from other companies. All of these
ventures has a different job style and responsibility , along with each and every organisation has
a different culture and different work behaviour. In all those venture organisation run in various
types of objectives and goals. Differentiation in strategic decision making process, where as all
have own strategies to accomplishment of goals and duties. There is a main difference in
ventures is fun raising, where as social companies have raise fund from government and other

legal organisations, on the other side other private type venture are raising fun from other
financial institutes and consultants.
Now there are the main similarities in entrepreneurial ventures.
On the other side there are some similarities in those ventures are like all those venture
wants to need of employment to work their along with the basic skills . These requirement is
basic for same as the all venture. There are also wants to need capital investment but in that case
some capital investment is big and some is low, but capital investment is essential for all
ventures. They all are use some basic resources as same as other organisations. all ventures
wants to take some loan for the new business(Nicholls, 2010). And also they wants to some
promotional activities to advertises their new products.
TASK 2
2.1 Impact of small businesses on the economy
SME is usually defined as those businesses which have less than 250 workers. Normally,
they are not recognized by media but they are the real backbone of UK economy. There are
around 5.2 million small and medium businesses in UK in 2014. This information was published
by Department of Innovation Business and Skills. It is estimated that around 14,424,000 people
are employees in these small and medium enterprises. The Gross value Added according to
European Commission, SME performance review is estimated to be €473 billion or 49.8% of
UK economy. Small businesses account for 11% of firms engaged in imports and 12% of firms
engaged in exports. Their turnover is around 33.2% in the year 2014. Micro-businesses
comprise of 0-9 member for the business. According to a report in UK, there were 3.5 million
micro businesses in 2000 which rose to 5 million in the year 2015. The report was published by
Royal Society for encouraging Arts, Commerce and Manufactures. It accounts for 96% of all
businesses. This small business generates 15.2 million job opportunities as stated by Forum of
Private Business. Medium businesses account for 0.6% businesses and has turnover of 13.5%.
There are many policies which are started by government for benefit of SME stated in 2013
Autumn Statement as:
 In April 2015, the doubling of Small Businesses Rate Relief
 Business Discount rates up to £1,000 for small businesses with a taxable value up to
£5,000.

 Introduction of employment allowance up to £2,000 for the employers whose age is
lower than 21.
Different types of help were given to SME by the government. The performance review
of UK's small and medium Businesses were higher than those of other European states.
According to the UK economy, the Gross value Added was €473 billion or 49.8% of SME
which is average of 58.4% of European Commission (EU27). Through this rise in economic
growth is there as well as employment is there. Also there was improvement in income and the
living standards of people. Newly developing small enterprise and businesses drive UK
economic growth by giving competition to existing businesses and contributing to more
employability and job creation. This also stimulates to new innovation and increase in the
productivity. All the evidence tells that SME last year accounted for 48.1% of private sector
turnover and 59.3% of private sector employment. In UK, SME has been witnessed as the
opportunity in this challenging Economic environment. SMEs when comes to business plays key
role in the growth and really contributed to the countries economies. In terms of economy, SME
reduced poverty and increased employment rate at lower investment cost with the new
innovations. The employment through SME increased opportunities and reduced the migration
of people to even and stable development. For the utilization purpose in SME raw material,
resources will be easily available and require simple technology. Small and medium
entrepreneur has made many efforts in increasing the country’s economy and decreasing poverty
and unemployment in the nation.
2.2 Business start –ups contribution to the growth of the social economy after ‘Brexit’.
A referendum held on 22rd June 2016 in which UK voted to leave the European Union.
After the result, it was found that pound fell to its lowest. It affected the businesses in many
ways. Mostly, the raw material was brought from other countries. Now that, no longer
relationship between UK and EU is there so there will be hike in the prices of raw materials due
to it the supply will be lower(Barringer, 2012). It was estimated that there will be loss of around
£4.5 billion a year if new agreement with EU is not established. Impact on SME is wide as it
directly affects the trade and GDP of country. Decrease in GDP will impact the small businesses
as consumer purchasing there product and services will decrease. The migrant rate increased due
to UK leaving EU, which is likely to increase the recession up to 6.5% which is equivalent to
loss of 500000 jobs. The Brexit also raised the opportunities to many businesses form other

countries like the China and Australia. There was deal of multibillion signed with China. This
will also benefit China and they can easily access UK manufactured products and services
including the banking services. Now neighbouring countries refused to trade with UK so the cost
increased as raw material was supplied from the far countries. The interest rates offered by the
banks decreased by 0.5% which also lowered the UK's economy(Light, 2011).. For establishing
the new business now less benefit were offered through banks. The migration of people from
one place to other for higher income also affected SME. Entrepreneurs whose businesses based
on those raw material which are provided by the neighbour countries had hiked up there price
rates up to 0.6%. Transportation cost increased and inflation on the clothing and housing. The
global import and export was also affected due to decrease in Pound rates. The imports were
costly and exports were at the considerable price. In all, there was great impact of Brexit on the
small business(Schaper, and et.al. , 2014). For some, it came as boom for some it flourished their
business by giving new opportunity. Some entrepreneur took advantages of Brexit while some
faced great loss in their business. Now, UK can never participate in any policy that EU is
organizing.The import were costly due to increase in the tariff rates and exports were at
considerable price. Weak pound resulted in increase in inflation rising the price of goods and
products in the UK. If the price of the goods will increase then there will be less expenditure
resulting in rise of low GDP rates. There can be issue for the employability as workers will
demand for payment. Due to migration there will be imbalance in the country as everyone would
be moving to developed cities in order to get higher income and better facilities. In all there was
great impact of Brexit on small business. For some it came as boom for some it flourished there
business by giving new opportunity. Some entrepreneur took advantages of Brexit while some
faced great loss in there business. Now UK can never participate in any policy that EU is
organizing. Small business will take certain time in order to raise from such uncertain period and
manage there businesses. Also new trade may flourish or decelerate the business.
Task 3
3.1 Characteristics, Traits and Skills entrepreneurs
Every successful person has some personality traits where as traits and skills make
entrepreneur successful. Differentiation in skills and traits is became a competencies of

entrepreneur(Bruton, Ahlstrom, and Li, 2010). Mark Zuckerberg is one of the successful
entrepreneur and famous also. Now lets discuss about the personality traits of mark Zuckerberg.
Person who get self motivated, daring and risk taker. Mark Zuckerberg believes in equality and
he is very generous in nature. He is a creative innovator and solving problem as in creatively. A
successful entrepreneur is to seek information from the current market. Mark Zuckerberg always
focus on work quality and determined towards his work. Mark Zuckerberg is a aggressive
leader. One main thing about the mark Zuckerberg he’s tries his best not control over the things.
He is a hard worker and always finds new way to produce product in effective manner. On an
other hand Steve jobs is also had good contribution towards innovation. Steve jobs has strong
leadership quality and he is passionate towards his work Steve jobs is also think creatively and
innovative. Steve jobs has a positive attitude and he is passionate towards their work. He is a
risk taker and ready to embrace failure. Steve jobs has a various skills to made successful such
as never be satisfied where satisfaction is last term which going to be satisfied. Steve jobs never
become satisfy they develop more and more feature in their products. Steve jobs has a
commendable leadership styles in their they properly lead team and taking work from them.
Both are the entrepreneur is successful in respected field and determinant towards their works.
There are the basic difference in entrepreneur and business manager:
Entrepreneur Business manager
Entrepreneur is a person who established
a new enterprise along with taking some
financial risks. Main focus of
entrepreneur is business start up.
It is an informal approach.
In an organisation entrepreneur is an
owner. They work for himself.
Entrepreneur is creative and innovators.
They are risk taker.
Entrepreneur has own income. But some
time he face some loses also.
Entrepreneur is a himself thinker and do
what ever they want in enterprise.
Business manager is a person who take
responsibilities and controlling over the
Enterprise. manager’s main focus on
ongoing operational activities.
It is a formal approach.
And in an organisation manager’s is an
employees. They work for only fulfillment
of organisation goals.
Managers are preserving in nature.
Managers risk averse.
Managers have a salary is payable in every
month.
Manager’s never face any loses.

Entrepreneur create own instructions and
rules.
As an entrepreneur not focus on higher
education qualification.
Manager’s always work under the top
management and follow the all instruction.
As become a manager always require
higher qualification and some other
management knowledge.
3.2 Entrepreneur Mindset and Motivation
An entrepreneur is a person that having different creativity for innovating new sources
from raw material, a new production method, new idea and principles. He always need to
collaborate his workers in order to have better organization and working environment. For an
entrepreneur profit should not be his motivation, it should be self determination, ability to take
risk, innovative, creative and persistence. The main focus should always be on the idea and how
to implement it. Money comes to priority but secondary, it is required only building an
organization and to pay income to employees(Bridge and O'Neill, 2012). According to Mark
Zuckerberg and Steve Jobs, idea comes from reading. When we read the things we get the
information that shapes our ideas. Reading provides knowledge, increases mind creativity and
imagination power. He suggested that we should spend time with people in order to enhance the
skills, experience and knowledge that are different from yours. The should be your sources of
inspiration as they are professional in their fields so can increase your thinking ability and
perspective. Always listen to the other entrepreneur's, about their ideas, inspirational source,
stories creativity, innovative research and their passion towards the work. Travel to different
places, learn different culture, languages and explore different cuisines and scenery. Give time
to yourself so that new ideas can develop or evolve in your minds. Always ask for the advice
from your mentors those are in that field, they have great knowledge and experience. It will
boost your confidence and assurance. Always try to learn more and more as it will increase your
knowledge. Learning contributes to the personal growth and professional success. The
motivation should always given by the entrepreneur to the others as they can inspire more and
more people. Mark and Steve describe certain qualities of becoming an entrepreneur. Main 5
qualities are Agreeableness, Extraversion, conscientiousness, emotional stable and openness to
experience. In the above 5 factors the motivational structure is different personality that an
enterpriser should have. They have given many inspirational and motivational lectures in

different colleges and institutions(Oosterbeek, Van Praag, and Ijsselstein, 2010). There is
comparative difference between the personal quality of the person lacking the entrepreneurial
motives and mindset. Every self-employed shares different personality trait but have similar
motivational structures. The entrepreneurial mindset to achieve the opportunity ad the necessary
motives are directly related to the entrepreneur. Motivation helps the entrepreneur in order to
overcome the financial and family problems. If they are the motivation factors then there are
expectations of higher growth rate. Motivation is helpful in order to get better business outcomes
and hiring the employees. The relationship between the business start-up and motivation is
described by the following details.
Motivation is directly related to the opportunities and the growth expectations. If there is are
chances of recession in the market, then through motivation, it can be overcome. Many
entrepreneur due to the motivation start there business during the rescission period and are
successful in there fields. Too certain during rescission motivation should be provided
motivation helps to over the losses.
4.1 Different environments that foster or hinder entrepreneurship.
Being an entrepreneur there is always need to identify the encouraging environment, like
minded, innovative and interesting people. The attitude and skills are important to be an
individual entrepreneur. An entrepreneur should not only focus on the micro-business condition
and financial access but also to policies related to the entrepreneurship promotion. This are the
base polices to start up the business by individuals(Kuratko, , 2016). This creates a culture of
being intrapreneurs making them different from other entrepreneur's. Some of them are listed
below:
 Entrepreneur should hire the aspiring entrepreneurs as they are attracted toward the start
up environment. They can be easily inspired and also see different opportunities in the
business. Working with such people will boost your working environment.
 Employees should be kept as the partners of the organization. Always motivate the
workers to view the company their own this will increase there working ability and
confidence.

 Micro-failures should be considered and should openly accepted to peruse success. If
employee fear from taking risks then there growth rate will decrease. Always inspire
them to complete their work by new methods.
 Provide different incentives to workers which can include bonuses, promotion, raises,
annual party and public recognition so it develop the positivity in employee.
 Always inspire through the examples. Even after the failure they should be able to look
up and get back to complete there tasks.
 Always welcome the employee idea and implement them. It will also save money for
creating the new streamline process and production.
 Give new employee training. Through this they can understand the working environment
and become friendly to the company.
 Start-up culture should be created and promoted in the business. It may include the
weekly meeting, team activity and mentorship. It will increase the entrepreneurial spirit
among the employee
Through all this an entrepreneur can foster the working environment of the company(Djankov
and et.al., 2010). Entrepreneur should not only focus on the foster points but also to the
obstruction offered in the working environment. Some of them are discussed below:
 Problems related to the leak of the private details from the firm to the competitors.
 The working environment due to certain people are affected. This ruins the workplace
environment and affects the work.
 Location of the company should be at away from the industrial area or it should be at
calm place in order to have better results.
 Impolite employee should never be selected as they create disturbance in working
environment.
 Lack of skilled workers can also affect the business. They will not only create problem to
themselves but to other workers who performing there tasks accurately.
 Never neglect the opponent or the competitors. Always carry out the periodically the
SWOT and PESTLE reports in order to develop better and new business strategy to
compete with the opponent.
 Communication and the network should be there as it can be problem that due to network
connectivity and other issue clients remain away or avoid you.

Conclusion
Through the above discussion we can conclude that there is great need of the
entrepreneurship development program. From the above research it is also clear that there is
great impact on the small business person due to the Brexit(Bosma, and Levie, 2010). There UK
government should take necessary steps to help this small entrepreneur. Due to small and
medium businessman and entrepreneur the economic growth has increased in UK. There is need
of the entrepreneur motivation in order to increase more entrepreneur's. The mindset of
entrepreneur should be based on the above 5 points and they can easily achieve there gaols. The
work environment around the entrepreneur should be positive and they should always stay away
from the obstruction in there working environment. They should always inspire there teammates
and should consider then to the companies family members.

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