This essay examines various types of entrepreneurial ventures, their impact on the UK economy, and the characteristics of successful entrepreneurs. It uses case studies of Jack Cohen and Jeff Bezos to illustrate how background and experience can influence entrepreneurial success.
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ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
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TABLE OF CONTENTS INTRODUCTION...........................................................................................................................1 MAIN BODY...................................................................................................................................1 1.Examinedifferenttypesofentrepreneurialventuresandrelationtotypologyof entrepreneurship...............................................................................................................................1 2. Similarities and differences between entrepreneurial ventures...................................................2 3. Statistical data evidences on impact of small businesses on UK's economy...............................5 4. Contribution and importance of small businesses and business start-ups to growth of social economy of UK after Brexit............................................................................................................7 5.Characteristics,traitsandskillsofsuccessfulentrepreneursandhowentrepreneurial personality reflect entrepreneurial motivation and mindset.............................................................7 6. Examining how background and experience can hinder or foster entrepreneurship...................9 CONCLUSION..............................................................................................................................10 REFERENCES..............................................................................................................................12
INTRODUCTION Entrepreneurshipisthewillingnessandcapacityofanindividualfordeveloping, organizing and managing business enterprise or venture that involves risk bearing in order to generate profits (Ligthelm, 2010). Entrepreneurship process is the idea and work to create product or servicethat people will purchase with an organization supporting sales that involves designing, launching and running a new business or start-up. Entrepreneur is the individual who runs and manages the business by taking on financial risks with the hope of profit generation and assumptionthatalltherisksofbusinessventurewillberewarded.Thereporton entrepreneurship and small business management will explain the various types entrepreneurial ventures operating in an economy along with the typology of entrepreneurship. It will also explain the similarities and differences among entrepreneurial ventures along with statistical evidences of impact of micro and small businesses on economy of UK. The importance of small businesses and start-ups towards the growth and development of social economy will also be discussed in the assessment. MAIN BODY 1.Examinedifferenttypesofentrepreneurialventuresandrelationto typology of entrepreneurship Entrepreneurship is the creative approach towards business and activities for organizing, managing and leading the venture attain its goal and bring positive change and development (Dennis Jr, 2011). There are various types of entrepreneurial ventures in accordance with the companies or organizations associated they ate as follows: Large corporations These are the entrepreneurial ventures having a certain life cycle for acquiring growth and sustainability through developing new services and products and improvising existing offerings to its customers (Neck and Greene, 2011). These type of organizations are subject to competition and need to create or develop their products and services according to changing business environment and demands by entrepreneurs. Lifestyle entrepreneurship 1
It is the business setup by an individual not for the purpose of earning rather for altering lifestyle and a lifestyle entrepreneur focuses more on life reward and does good as per their passion (Blackburn, Hart and Wainwright, 2013). Social entrepreneurship It is the technique through which companies are started and other entrepreneurs for developing, funding and implementing solutions to social, cultural and environmental issues and differs in their size, aim and beliefs. Scalable business start-ups and entrepreneurship These ventures have the aim of changing dynamically entire persisting model and focuses heavily on quality and creative aspect of business and involves efficient personnel as employees. The major goal is to attain financial investment and venture capital funds for the expansion of business. Small business entrepreneurship Micro or small businesses and start-ups are the tremendous growing enterprises in UK that are formed by few members or family owned business that creates competition and economic growth and innovation by solving societal issues ( Fassin, Van Rossem and Buelens, 2011). Business enterprise It is the organization that is set up with the objective of generating profits by rendering goods and services to people with quality and in demand of their needs and requirements. Female entrepreneurship These are the businesses that are owned and managed or run by women building their businesses against all odds that creates various employment opportunities and are started with an innovative idea or purpose. 2. Similarities and differences between entrepreneurial ventures Typeof entrepreneurial venture AttributeRolesGoals 2
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Business entrepreneurship Major attribute of this business is to generate hugerevenueand profit.Business entrepreneurship developsorganization bydeveloping innovative and unique products and services according to the need sanddemandsofthe customers. Business entrepreneurshipare operating with the aim ofgeneratingprofits andrevenueby renderingquality goods and services to thepeopleor customers.The develops,createsand modifiesgoodsand servicestomeetthe requirementsof consumersand economytorender qualityofferingsto gain a profit. Themajorgoalof business entrepreneurship is to acquiremaximum revenuesandprofits andattainaleading market position of the firminthemarket place(Nakara, Benmoussa and Jaouen, 2012).Business entrepreneurshipalso focusesonrising marketsharethrough gainingbrand awarenessandimage withincreased advertisingand promotionalactivities toattractcustomers towardsthebusiness organization. Social entrepreneurship Itisthe entrepreneurshipin which organization is mainly oriented on the bettermentofthe community or society, peopleand environment(Sahut, andPeris-Ortiz,2014). Social entrepreneurship's majorroleisto developservicesfor thebettermentand improvementof people,societyand environment.These entrepreneurship Withdevelopmentof effective and efficient productsand services thatinfluencesand improvesongoing conditionsofthe environment,society andpeopleby developing their living 3
Thistypeof organizationsare aimedrendering welfaretopublic rather creating profits to uplift the backward communities and uplift thesocietyby addressing their issues andproblems (Akehurst,Simarroand Mas‐Tur, 2012). works with the aim of renderingservicesto communityand societyratherthan creating profits. and changing societal issues. Largebusiness entrepreneurship These entrepreneurship'sor organizationsare managed and lead by business founders and ownersoflarge businesseswiththe mainaimofearning huge profits and attain marketvalueLarge business entrepreneurship workswiththemain visionofbringing changewithinthe industry through rising marketshare, expansion of revenues andestablishingthe Largebusiness entrepreneurshipare startedwiththe objective of rendering products and services to people for earning hugeprofitsby employingstaffto conduct its operations andactivities.These enterprises take up the role of leaders through better understanding of organizationwith strategicmarket selectingand developingstrategies tobecomesuccessful inacquiringmarket Largebusiness entrepreneurship's major business goal or objectiveistoearn hugeamountsof profits and revenue by rendering offerings at a cost efficient manner (McGowanandet.al., 2012).These organizationsor ventures aims to attain a leadership position in the market in which it operatesbybeing successful in attaining segmentsandtargets ofthemarket 4
enterpriseorventure asleadersofthe marketplacethrough adaptingchange (Martin,McNallyand Kay, 2013). shares in its industry.economy. Smallbusiness entrepreneurship SME'sormicroand smallbusinessare founded,startedor operatedasasmall business start-ups with lessinvestmentor capital.SME's operates by employing less than 10 employees and minimum 5 staff andtheinitial investmentranges from£50000to £100000. Microorsmall business entrepreneurship renders its employees with small workspace thanmacro entrepreneurial venturesand comprehendsthat thesebusinessesor enterprisesprovides efficientplatformfor employeesand individualsfor acquiringindustry knowledge.These venturesalsoallows itsstafftogainor develop efficiency by improvingthe performanceby innovativeand effectiveideasand work.Better understandingand SME's main objective or goal is to generate maximumprofit within the established industryandrender employment opportunitiestothe society(Fayolleand Gailly, 2015). 5
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knowhowon activities,operations and role they need to performfor empowering entrepreneurin efficient entrepreneurship (Sánchez, 2013) 3. Statistical data evidences on impact of small businesses on UK's economy SME's of UK accounts to 5.4 million which is over 99% of all businesses have a main role in boosting productivity and supports business expansion and improves economy of nation. These are the driving forces of UK's economy that drives growth, opens new markets and creates job opportunities that are supported by the government. Vast majority of businesses in UK employs more than 10 people and accounts for 32% of employment and turnover of 19%. Total employment in SME's in UK was 15.7 million which is the 60% of all private sector employment in the country. The annual combined turnover of SME's in UK was£1.8 trillion which is the 47 % of all private sector turnover in UK. SME's impact the economy of UK by rendering employment opportunities and the number of businesses are increasing at a higher rate that is providing job to the majority youth (. Sampaio, Thomas and Font, 2012). Revenues generated by micro and small businesses and start-ups in UK has a greater impact on the nation that promotes a high competition in the economy with turnover, growth, service,industry, employment and contribution. An increase of 19700 SME's in 2016 in UK where the number of employing business raised to 41000 in the same year. SME's of UK and start-ups contributes to innovation growth as they develop competition in market that generates new ways of business doing. According to the National Endowment for science, technology and arts found that 6% of UK's SME's with high growth rates generated half of the jobs between 20012 and 2008 (SME’s XL contribution to the UK economy,2015). The business population has experienced a sustained growth in total business population of the country with an increase of 2.2 6
million since 2000 and 197000 in 2016. Major business population growth since 2000 due to non employing businesses accounted to 89% of the overall increase (Audretsch and Keilbach, 2010). ThegovernmentofUKusestaxbreaksforrenderingemployment,researchand developments and offers advices and support with networking assistance to SME's so that the start-ups can flourish and assist economy building of the country.Initiatives like government's business growth services and UK trade and investment has a positive impact on the economy of UK to expand further. Supporting growth of SME's and start-ups are essential for UK's economy in the context of innovation and progress. The government supports SME's by rendering financial support with backed business loans and grants by cooperating potentially with banks and financial institutions for facilitating processes of lending. The global entrepreneurship monitor pointed a 17% growth aspiration in UK among entrepreneurs compared to US and its SME's are less growth inclined and ambitious than in other G8 economies. 4. Contribution and importance of small businesses and business start-ups to growth of social economy of UK after Brexit UK's referendum decision to leave European Union i.e., Brexit on 23 June 2016 have a greater impact on the economy of nation in a serious manner and have major concerns on the business and economy (Ligthelm, 2010). The small business impacts on GDP were ranging widely after the Brexit as these are the lifeblood of the economy and falling GDP affected largely on the business activities and overall performances and buying behaviours of the consumers. These entrepreneurship is the leading factor of change for the economy of UK at a consumer level that has been boosted up after Brexit. The number of start-ups and self employed workers and entrepreneurs are rising after UK's decision to leave EU which offers retail services and generates huge employment opportunities. With the latest technological advancements SME's are creating and rendering effective start ups that are offering efficient turnover and contribution to the nation's economy. The UK economy has become reliant on the service sector on job creation and export demand. 7
5. Characteristics, traits and skills of successfulentrepreneurs and how entrepreneurialpersonalityreflectentrepreneurialmotivationand mindset Entrepreneurship takes various forms and appears in various forms like big or small and is the backbone of an economy and mandate for wealth of nation. Characteristics, traits and skills of entrepreneur's possession exposes an individual towards entrepreneurial behaviour to carry out innovations by being a dynamic actor for bringing change (Dennis Jr, 2011). The personality traits of Jack Cohen the founder of Tesco and Jeff Bezoz CEO of Amazon are as follows: Characteristics, skills and traits of Jack Cohen Sir Jack Cohen was an English grocer who founded the Tesco supermarket chain was born in London in 1898 and was brought up in Whitechapel. Jack Cohenwas different and had the ability to think differently as compared to other entrepreneurs in market at that time that led him to establish the largest supermarket chain business in UK. This quality leaded him to become the greatest business man of the era. From an early age of studies Jack Cohen started helping his father in his tailoring business and was very much interested to be a grocer and business man and wanted to start a grocery shop. Children were a weakness for Jack Cohen and was really close to them and loved to spend maximum of his time with them. The main characteristic of Jack Cohen was that he was very humble and soft hearted especially for infants. Jack Cohen belonged to a family with tailoring business and was very creative and innovative in thinking for which he volunteeredRoyal Flying Corps where he used his tailoring skills to make canvas for balloons and other aircraft. Jack Cohen had the skill of working on things in an easier and simpler manner and were really hard-working, dedicated and focused towards his business (Neck and Greene, 2011). Another special attribute of Jack Cohen that differentiated him from other managers was his greater belief on humanism and trusted anyone very quickly that reflected in the ownership of the grocery stores that was managed and operated by non family members. This concept lead him to bring a revolution of self-service at grocery stores in the present era as well. Jack Cohen had the courage and great market experiencewhich is not found in many of the other business entrepreneurs.Jack Cohenhad ability to get people into a new marketcentrewithhispositiveattitudewhichconvincedindividualseasilyfromwhich developers became keen to help him in start-up costs of other shops.Jack Cohenwas different from other business entrepreneurs in each and every aspect of decision-making, thinking, 8
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working, belief, techniques for surviving in the market, unique and innovative style of business start-ups etc.Jack Cohen's all these qualities leadhim business managers and entrepreneurs of all time of era; energetic, assertive, extrovert and ability to convince others, cooperative nature, trust etc. Moreover, Jack Cohen was achievement oriented, effective and efficient in doing his work and were emotionally stable being positive that made him unique from other entrepreneurs (Blackburn, Hart and Wainwright, 2013). Characteristics, skills and traits of Jeff Bezoz Jeff Bezoz is the American technology entrepreneur, investor and philanthropist and is the founder of Amazon and was born in Albuquerque in 1964. Jeff Bezoz is the richest man in the world who possess great leadership qualities and carved a name for himself by creating sustained growth by his organization. Jeff Bezoz is a visionary who deals with problems at a high level, which are beyond view of others and is the smartest CEO who is not tyrant and is brilliant. Jeff Bezoz is a thinker and doer and is shy and introspective person which is the reason for his crazy honking laugh. Jeff Bezoz's main characteristic is his attitude towards customers valuing them highly and are concerned about the organization and focuses on talent acquisition and development.Jeff Bezoz has higher standards and makes everyone stretch and aspire to those standards giving lots of leverage across the organization. Jeff Bezoz is strategically patient and tactically impatient with his conviction of long term vision and strong belief that speed disproportionally matters.Jeff Bezoz is open and curious about learning new eras and topics making him a great learner and with his high risk tolerance which helped in facing tough odds in starting business venture. Stubbornness to pursue passion is the major trait of Jeff Bezoz that even made him leave his lucrative career on Wall street for creating everything store; Amazon (Fassin, Van Rossem and Buelens, 2011). Jeff Bezoz possess an ambitious and adventurous characteristic that helped him to strive for success with strong positive response towards other people interested in same ambitions and has the most extreme hobby of deep sea diving for old rocket wreckage (The Top Personality TraitsoftheWorld'sRichestMan,JeffBezos,2018).JeffBezozholdsthetraitof conscientiousness and follows the daily promises in a fair manner and ensures things doesn't fall on cracks. Jeff Bezoz's leadership skills of prioritising customer services helps him and his team to be conscious about the way a customer feels regarding decisions and treating them on priory. Jeff Bezoz's major personality trait is that he never focuses on failure but ion process and 9
believes that experimenting is the ultimate way to transform an idea into reality and has an experiential approach in his business. 6.Examininghowbackgroundandexperiencecanhinderorfoster entrepreneurship Growing entrepreneurship can be understood as the process of socialization, education andexperienceswhichhasamajorimpactonanindividual'shinderingorfosteringof entrepreneurship. The background and experiences of Jack Cohen and Jeff Bezoz that helped them in fostering their entrepreneurial ability are as follows: Jack Cohen had asimple mind set for entrepreneurship and as per his thought an entrepreneur is an actor who has the ability to carry out innovations characterised as a new source of raw materials, production, market, ideas etc.The main motivational factor that come out from Cohen's life story is “Autonomy”. According to him profit is not the prime motivation to success for any entrepreneur, thus having an idea and realizing is the main motive behind (Nakara, Benmoussa and Jaouen, 2012). With the clear mind, self confidence and self motivation Jack Cohen was able to carry out new business ideas by collaborating with his employees and workforce. Jack Cohen became separated form his father after an argument about his career choice as a grocer and was reluctant to return to tailoring which was his family business and established himself as a market stall holder in London and became the owner of several market stalls and started wholesale business that were run by non family members. Jack Cohen focused on the business enterprise setting than making money to attain his ambition and dreams and gave importance torealization of new ideas instead of profit making. The major motivating factor was the creative phase of implementing new ideas, in which there is a certain degree of autonomy of importance that made him establish the brand Tesco as it is seen today. Jack Cohen believed that profit is nevertheless a necessity in order to implement idea successfully and realised the new idea with his creative thinking power.Cohen's motivational factors and mind set was quite different from other business managers which resulted in the great succession of his grocery stores and new creative idea of doing business. His mind set was different from all others out there in the market while not giving emphasis on profit maximisation. Because of this thinking only Tesco was able to drew ahead of all rivals and took over them completely (Sahut, and Peris- Ortiz, 2014). 10
Jeff Bezoz showed an early interest in working of things and even turned his parent's garage into a laboratory and developed a love for computers and graduated from high school and started his first business which was an educational summer camp. Bezoz pursued interest in computers and graduated from summa cum laude with a degree in computer science and electrical engineering and worked at several firms like Bankers trust, DE Shaw etc., and became the firms' youngest vice president in 1990 (Akehurst, Simarro and Mas‐Tur, 2012). He was good at studies and his interest towards computers made him to pursue his education in that industry and his career in finance was lucrative and he chose to make a risky decision of moving into the e- commerce for which he quit his job and moved to Seattle targetting the untapped potential of internet marketing that he attained with his learning. Bezoz set up office for firm in his garage and with few employees began software developing and opened Amazon.com on July 16 1995 and the start-up initially was a success and later on became the e-commerce leader with the handwork and experiments of his team and his ambition. Bezoz with his high customer valuing aims at rendering good services to clients and a good nature helps him to maintain good relationship with everyone that makes inspiration in people. Increasedconscientiousness of Jeff Bezoz makes him perform his dailypromises and with the leadership quality he is able to manage employees and organization lead to reach a visionary level (McGowan and et.al., 2012). CONCLUSION From this assessment it can be concluded that entrepreneurs are the main drivers that changes and carries economy of UK towards growth and development with introducing new business ventures and start-ups. The study on entrepreneurship and small business management discussed and identified the characteristics, traits and skills successful entrepreneurs; Jack Cohen and Jeff Bezoz that differentiates them from others and investigation also determined how background and experience hinders or fosters entrepreneurship. The study on entrepreneurship and small business management discussed the various entrepreneurial ventures and their relation with typologies of entrepreneurship. It also explained similarities and differences between different entrepreneurial venturesand statistical evidencesof impactof micro and small businesses on economy of UK. 11
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