This report discusses different types of entrepreneurial ventures, their impact on the economy, and the entrepreneurial mindset. It also features successful entrepreneurs like Richard Branson and Alan Sugar.
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Entrepreneurship and small business management
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PART 1 Entrepreneurship and small business management Scalable start-up entrepreneurship: This type of entrepreneurship business is formed with the innovative idea of entrepreneurs with a belief that this initiative can bring changes into world. Some of the examples of scalable start-ups are Uber, Instagram, and Facebook. Unique attribute of this venture is that, they recognise the missing thinginmarketandcomeupwithasolutiontofillthatgap.Scalable entrepreneurshipoftenreceivesfundingfromventurecapitalistduetotheir uniqueness and viability of ideas; and hire specialised workforce as they aspire for rapid expansion and big profit returns (Cho, Moon and Bounkhong, 2019). Social entrepreneurship: Social entrepreneurship is when an entrepreneur recognises a specific problem in a society, which can be related to environment protection, protecting human rights, women and child welfare or protection of animals; and offers them a solution through tailored activities to create a social value. Prime objective of such type of entrepreneurship is to make the positive impact in society and make a better world. Entrepreneurs don’t seek to make profit or wealth for success rather they make ethical practices such as conscious consumerism, and CSR to dedicate them for a social cause. P2 Explore the similarities and difference between entrepreneurial ventures Similarities One of the most common aspects among all these entrepreneurial ventures is that they are established with the aim of delivering value through their business activities (Biron and St-Jean, 2019). Small business like hairdresser or a small grocery shop in thestreetisprovidingvaluethroughmeetingbasicnecessitiesofapeople’ Facebook, Microsoft or Uber are all creating value through proving unique solutions to the customer’s problems, or companies like British Heart foundations, Oxfam are creating value through working on a common cause and making a society better. Value driven concept is inherent into the entrepreneurship which makes it unique and special from other businesses. TASK 1 P1: Types of entrepreneurial ventures Entrepreneurship can be defined as the practice of ideation, establishing, launching and running a small business with the intention to make profit through their innovation to change world. People who look after theses business are called as entrepreneurs who posses set of specific skills such as leadership, communication, technical, business management along with ability to take risk and initiate (Al Hussaini, 2019). Like there are different businesses in the same manner there are different types of entrepreneurship which are as mentioned below: Small business entrepreneurship: These types of entrepreneurship represents a business in which a person run and manager their own business such as hairdresser, small boutiques, consultants, carpenters, plumbers etc. Majority of the business in the economy are small businesses which are established to make profit in order to support their families and modest lifestyle. These businesses lacks in innovation factor that is why they are incapable to attract venture capital and are mostly funded by small loans taken from family and friends. Largecompanyentrepreneurship:Theseventuresareformedgenerallywhensmall entrepreneurial reached at its maturity stage and expanded its scalability due to high growth and success in the market. Business firms which have a finite amount of life cycle fall under this category. Because of advanced professional whose knowledge about how to sustain innovation leads these companies towards growth and survive in market place. Products and services offered by these companies are usually different variant around their core products as per the needs and wants of target audience.
Another similarity which is observed from above discussion is that, innovation is the core part of these business ventures which makes them sustain and flourish into market place. Unlike other ventures, entrepreneurship ventures take innovative approach and think out of the box to add value into their products and services to enrich customer experience and increasing their satisfaction level. Entrepreneurs, because of their ability to sustain on innovation take the business to new heights and bring revolution around world. For instance: With the concept of Amazon Pantry, people around the world can make shopping of daily essential without being stepping out from home. Additionally, Uber came forward to provide one stop solution for easy availability of cabs and taxis in busy streets (Fiore, Sansone and Paolucci, 2019). Differences -One of the most obvious distinctions among these ventures is their objective of existence and long term vision. For example, small business entrepreneurship barely makes profit but makes sufficient earning to support their modest lifestyle and living of family and self. Whereas, large entrepreneurship exists to earn high amount of profit and seeks growth expansion along with delivering to the customers through their business solutions. Whereas, social entrepreneurship ventures are created primarily to make a positive impact over society and contribute towards social work rather than making profit. Another distinction is amount of capital needed to support the business activities and minimum working capital. Small business does not require much amount to start business whereas scalable requires huge amount of time, money and efforts to come up with a unique solution (Kawamorita and et. al., 2020). Apart fromthesescalableentrepreneurshipreceivessupportfromventurecapitalistorlarge institutions, whereas, small business entrepreneurship is financed by family owned money and loan from relatives or friends. M1: Investigate a diverse range of entrepreneurial ventures to demonstrate an understanding of entrepreneurship in both the public and corporate sector Both public and corporate sectors is filled with various kinds of organization that is small, medium and large. Small scale businesses impact corporate sector in a way that they provide new businesses to be set-up within the industry. Medium scale industries impacts both private and public sector in a way that it enhances these sector by making growth of organizations and bringing huge investments. Large sector impacts both private and public sector in a way that it helps in providing sustainability within them. Entrepreneurs helps both corporate and public sector to search for innovative ideas and new ways to do business. Task 2 P3 Interpret and assess relevant data and statistics to illustrate how micro and small business impact on the economy Small business and entrepreneurship plays a major role in enhancing the standard of living and development of an economy. As per the report of 2018, there were approximately 5.5 million small businesses in UK employing 0-9 employees and these businesses provides approximately 33% of the overall employment and generates more than 21% of the total turnover around entire United Kingdom. Generation of employment at greater scale makes direct contribution towards the economic development as people have income to spent, thus UK government promotes small business through credit and loan schemes. P4 Explain the importance of small business and business start-ups to the growth of the social economy Social economy is regarded as the third sectors of the mixed economies capitalist which is distinct from private and public sectors. Social economy is formed with rich and distinct types of enterprises and organisation such as cooperatives, mutual, social enterprises, foundations, associations and paritarians working voluntarily who share common values and objective, with a no profit making intention. Below mentioned are the significance of small business and start-up for the growth of social economy: ï‚·Creates local employment: Small business is the largest creation of employment in the small geographical areas where they operate and contribute to the economic growth by bringing innovative business solutions. People get opportunity to work and earn income to support their living and thus increasing the standard of living of people in a community (Dana and Anderson, 2021). ï‚·Adapting to climatic conditions: Small businesses are often consumer oriented and keeps the interest of society as their first priority as they understand their need and aimed at preserving the natural resources and society where they operate. Small business are recognised due to their ability to easily adapt to the climatic conditions and making efforts towards making minimal impact over people and planet through their business activities.
•Development of infrastructure: Small business with their business activities generate sales revenue and in turn give money to the community where they operate in form of taxes and including property tax. Thriving small businesses makes more revenue, thus generate more revenue for government which is further used in the development of infrastructure and other facilities (Muhammad Auwal and et. al., 2020). •Development of small business to corporations: When business thrive and meet the customer’s expectations they are more likely to convert into big corporations, extending operations beyond the local community. However, these small businesses do not leave the communityandcontinuingbenefittingthecommunitywheretheywereestablished. Headquarters of big corporations in local community remains a huge source of employment generation and strengthen the local economies through further developments.M2. Evaluate the difference small, medium & large businesses applying relevant data The graph below depicts the private sector in the country United Kingdom, which is currently being discussed. The importance of such sectors in the development of the nation's economy cannot be overstated. The following statistics shows that small business entities are large in number as compare to medium and large size organisation. On the other hand, turnover of big companies are large as compared to small and medium one. Employment opportunities are approx. 48% in small. 14% in small and 53% in large organisation. Small entities have large scope to employment which is beneficial for people. As it offers so many opportunities for employment. When the consumers are purchase from local small businesses, then they are giving mo0ney back to their community. The small businesses and business start-ups generate high amount of revenue that means they pay higher percentage of taxes. These taxes are helps in improving the GDP. Small businesses and business start-ups pays many taxes to government like GST, property taxes, income taxes etc.It helps in increasing the tax bases. D2. Assessment of small business and its impact on the economy. Conclusion From the above mentioned report it is concluded that small business and entrepreneurship contribute majorly towards the developmentof a nation and contribution towards economy. Government of UK are taking necessary measures to promote and support the small business as they make a significant impact on economy and create wealth for the nation.Furthermore,inthisreportithasalsobeenanalyseddifferenttypesof entrepreneurship ventures and details of funding for establishing the enterprises. References: Books and Journals AlHussaini,A.N.,2019.EXPLORINGTHERELATIONSHIPBETWEEN ENTREPRENEURSHIPDEVELOPMENTANDFINANCIALMANAGEMENT EXPERTISE AMONG THE STUDENTS: A STUDY FROM KUWAIT. Academy of Entrepreneurship Journal, 25, pp.1-17. Biron, D. and St-Jean, É., 2019. A scoping study of entrepreneurship among seniors: overview of the literature and avenues for future research. Handbook of Research on Elderly Entrepreneurship, pp.17-41. Cho, E., Moon, Z.K. and Bounkhong, T., 2019. A qualitative study on motivators and barriersaffectingentrepreneurshipamongLatinas.GenderinManagement:An International Journal. Dana, L.P. and Anderson, R.B., 2021. Indigenous entrepreneurship as a function of cultural perceptions of opportunity. In World encyclopedia of entrepreneurship. Edward Elgar Publishing.
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Part 2 Richard Branson and Alan Sugar are two successful entrepreneurs who trace back their origin from United Kingdom and recognised all across the globe due to their successful business ventures and their entrepreneurial traits and attributes. The further mentioned reportincludesdifferenttypesofventureswhichareconsideredasentrepreneurialandassociatedwiththetypologiesof entrepreneurship, impact of small business on economy, assessment of the aspects about the entrepreneurial mindset, and different background of entrepreneurs which hinder or foster entrepreneurship. With the rapid changes taking place in the business environment and volatility within an economy has increased the demand of the entrepreneurial skills and knowledge within large enterprise to survive in this competitive environment and make business grow and profitable in a long run (Zamrudi and Yulianti, 2020).
It is the personality of a entrepreneurs which makes them different from other and keep them focused and motivated which is a key success of the entrepreneurial ventures. Below mentioned are the few personality traits which defines and reflect their level of motivation and ability to think creatively (Cho, Moon and Bounkhong, 2019).
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Curiosity intensifies the capability of entrepreneurs to look the things from different perspective. Richard Branson was curious about doing business; it was his curiosity which allowed him to learn from great achievers and examine how they made accomplishments and lived their lives. Curiosity keeps the entrepreneurs motivated and focused towards their long term vision (Fiore, Sansone and Paolucci, 2019). Optimism: Alan Sugar with his visionary personality succeeded in persuading employees towards.
For instance, Alan Sugar had a good education in his early life which made him a successful entrepreneur. Another factor is family background which foster entrepreneurship, for instance grandfather of Richard Branson was a high court justice who supported his endeavours and dreams in early stages which made him successful entrepreneurship. Furthermore, economic conditions of a nation also foster or hinder entrepreneurship, for instance, stable and good economic conditions of a nation provides adequate funds to support business, resources, infrastructure, labour and capital which make entrepreneurs necessary support to grow and flourish.
Furthermore, in this report it has also been analysed different types of entrepreneurship ventures and details of funding for establishing the enterprises. Apart from this it has also been analysed that successful entrepreneurs are determined by the characteristics traits and personality character
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