Table of Contents INTRODUCTION...........................................................................................................................1 TASK 1............................................................................................................................................1 P1.Differenttypesofentrepreneurialventuresandtheirrelationtotypologyof entrepreneurship.....................................................................................................................1 P2. The similarities and differences between entrepreneurial ventures.................................2 Difference in between Micro and Small entrepreneurial venture.........................................3 TASK 2............................................................................................................................................4 P3. Interpretation and assess data on how micro and small businesses impact on the economy4 P4. The importance of small businesses and business start-ups to the growth of the social economy.................................................................................................................................6 TASK 3 & 4.....................................................................................................................................7 CONCLUSION..............................................................................................................................15 REFERENCES..............................................................................................................................16
INTRODUCTION Entrepreneur refers to a person who have ideas to operate a business by making products or availing services according to the customers demand into marketplace. Entrepreneurship is considered as the capability as well as willingness to create, manage and coordinate a venture of business along with its related risks and produce revenue (Arpa, Tiernan and O’Dwyer, 2012). It is also a way of running and designing an enterprise with the purpose to gain and earn profitability. The purpose of this report is to explain the different types of entrepreneurship venture and their relation with entrepreneurship typology. Differences and similarities among entrepreneurial venture. Interpretation of data how micro and small business impact on economy. Smallaswellasstart-upbusinessimportancetowardsthegrowthofsocialeconomy. Characteristics, traits and skill of successful entrepreneurs. Entrepreneurial personality aspects reflect their motivation and mind-set. Background and experiences can hinder as well as foster entrepreneurship are mentioned in this report. TASK 1 P1. Different types of entrepreneurial ventures and their relation to typology of entrepreneurship Entrepreneurship is considered as a process of developing, introducing and running a new enterprise which refers to be a small business. It explains the ability as well as interest to make, manage and set up the business projects. Generally, an entrepreneur takes the risk of project and make effectual plans to handle risk of business concern. It is the process by which knowledge as well as skills of workers can be maximised. Few entrepreneurial ventures types are as follows: Micro Entrepreneurial venture: Micro entrepreneurial venture is directed as well as organized by a person with five employees (Bögenhold, Heinonen and Akola, 2014). It refers to a profitable and vibrant section for any kinds of growing economy and also considered as a subcategory of small ventures. Small Entrepreneurial venture: This refers to a profit venture that is operated independently. It should have at least 5 to 500 employees as per industry. It operates businesses at small level and few examples of this business is grocery store, travel agents etc. these kind of business provides different types of resources for managing few functional activities of particular ventures in effectual manner. Small 1
entrepreneur usually places its potential to enhance societies living standard, improving families economic condition as well as also run its business for surviving in competitive marketplace. Medium Entrepreneurial venture: Medium Entrepreneurial venture are usually formed as well as developed and have observable leads the facilities investors do its financial decisions. Usually firm having approx 100 to 999 employees is considered under this ventures. Large entrepreneurial venture: There are many company which deals at international as well as national level. It refers to as a large venture and the main purpose of these company is to produce an effective amount of income in order to provide good quality product or services to its consumers (Dana, 2013). These kinds of firm aids to improve the employment situation of country's like GDP. Various large company are established in United Kingdom which plays an essential role in developing country economic condition. Entrepreneurship typologies types: Some typologies of entrepreneurship are mentioned below: Scalable: These entrepreneurship types are introduced on effectual business ideas as well as here entrepreneur has an effective objective. few examples are Facebook etc. generally it managed funds from market and for it they have to convince person to invest into their ideas as well as plans. It is generally related with the micro and small entrepreneurial venture because effectual ideas are needed to established these of enterprises. Social: For creating the societies structures as well as standard, these enterprises provide better quality of products at low price. the main aim of these kinds of business are to give required assistance to undeveloped societies for enhancing its living standard (Zamberi Ahmad, 2012). This type of typology is related with medium and large entrepreneurial venture because these enterprises assist to facilitate more number of job opportunities for developing societies. P2. The similarities and differences between entrepreneurial ventures Entrepreneurial ventures is considered as a firm that put innovation as well as self- interest to produce value for society and economy. Differences and similarities among them are explained below: 2
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Difference in between Micro and Small entrepreneurial venture BASISMICROSMALL DefinitionBusiness with full of energy and profitability, handle by own-self and getting more people self-employed is called Micro Business. It has very less difficulty in securing the capital loanorrecruitmentasan independententerprise(Dana, 2016). Launching of a new product or serviceswhichdoesn'texistin market trend or business model is known as small business. It affect bythestructureoftaxand process of recruitment. ExampleCatering, Photography, Tour guide, Housecleaning,Eventplanning, accounting etc. SoleProprietorship,General Partnerships,Ccorporation,S corporation,LimitedLiability company etc. Difference in between Medium and Large entrepreneurial venture BASISMEDIUMLARGE DefinitionMostlyprivatebasedcompanies whichholdbythefamiliesor owner's in key role, who take all the authority of decision making areknownasmediumsize ventures. Managementworkingundera greatprofessionwith collaborative decision making by organised hierarchy is known as large size venture. Members & ExampleThis business consists of 100 to 999 employees while working. Example- Engeo, Badger Mining, Studer Group. Largebusinessconsistsof500 employees or more. Example-UnitedStates corporations,Walmart,Google, Microsoft,Apple,General Electric ,etc. 3
Similarities Micro and small entrepreneurial ventureMedium and large entrepreneurial venture ï‚·Both have focused on a specific goal which directly boost-up the economy of UK. It defines as the smaller group of members who handle the operational work of the company and get the aim fulfilled. ï‚·Thesehaveshorttermprofit maximizationgoal,whichworks accordingly on fulfilling the objective of their existence. ï‚·Companies are mainly needed the low capital for the existence in the market and works for their profit as per the guidancegivenbytheirauthority leaders. ï‚·Focusing on a goal with an efficient andeffectivemanneristhecore similarityofmediumandlarge businesses. It regulates the work force inan appropriate given normwhich manage every aspect of it. ï‚·Authorities are somehow in the hand of top level management who focused on delegating it to the others. Fulfilling the givenresponsibilitiesaretheaim of employeesworkinginthese organization. ï‚·These are more focused on long term perspective as their investment capital ismuchmorehighascompareto others. TASK 2 P3. Interpretation and assess data on how micro and small businesses impact on the economy In UK, small and medium business play very essential role in economy development and assures sustainable development within country. Micro, small and large are three types of entrepreneurial venture that are profitable for government as it assists in improving country growth (Franco and Haase, 2013). These are firm that are different from one another in relation with operation size, resources amount and goals. BusinessEmployeesTurnover 4
MicroNot less than 5Not more than 2 million pound SmallMore than 5Less than 10 million pound MediumApprox 100 to 999Less than 43 million pound (Source: Different types of entrepreneurial ventures, 2018) Impact of micro and small business on economy: Some impact of micro and small businesses on economy are mentioned below: National impact: Growth in the number of micro and small business leaves favourable impact on countries. This primarily contributes towards national income and also enhance the rate of GDP, developed new opportunities of job for person. It assists people to develop as well as maintain its standard of living. Illustration1: Impact of SME's on economy of UK (Source:Impact of SME's on economy of UK, 2017) Interpretation:Fromtheabovegraph,ithasbeenanalysedthatsmallbusiness employment rate is 48% that more than medium is 12% and more than large also that is 40%. As there is small business in UK approx. 99.3%, medium 0.8% and large 0.15%. apart from this, small industries turnover were 37% , medium 15% that is less than large 49%. 5
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Regional impact: Both micro and small business has great impact on regional level. These business needs to achieve its reputation as well as value into marketplace. An entrepreneur generates and provides products or services as per the customers’ demands (Ghaedi and Madhoushi, 2018). Apart from this, they set appropriate cost to target and attract more number of individuals in order to determine sales volume and profitability. Therefore, it benefits government to maximise economic state so that requirements of people can be fulfilled. P4. The importance of small businesses and business start-ups to the growth of the social economy Small and start up determines the growth of economy and improve the condition of nation. There are few importance of small and start up towards growth of social economy which are explained below: Reducepoverty:Smallbusinessandstartup both aremoreinnumbersthatis advantageous for more job opportunities for those individuals who are jobless. Individuals acquire the job opportunities that minimises rate of poverty as well as unemployment of nation and also enhance the national income and domestic goods (Hall and Wagner, 2012). Along with this, it also leads to reduction of poverty or jobless individuals becomes capable to maintain its standard of living as well as fulfil its basic requirements. Provision infrastructure:Both small and start up business are advantageous for UK government because it is considered as an effectual source of developing adequate revenue for improvement as well as ascertainment of infrastructure. These businesses are more in number which states that authorities of tax have opportunities to obtain more tax amount that is benefited for nation improvement like more number of schools and so on. 6
TASK 3 & 4 7
8
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CONCLUSION From the above report it is concluded that entrepreneurship play essential role for the developmentofnationaleconomicgrowth.Micro,small,mediumandlargearevarious entrepreneurial venture that are operating in UK. Micro and small business are more in number within UK as well as are benefited for government because it leads to reduce poverty, increased job opportunities and so on. An entrepreneurs need to be ambitious, creative in nature for handling complex situation as well as assure smooth business operations. Along with this, the businessperson should concern the extraversion, experiences, agreeableness and so on are traits of personality that are essential for successful enterprises. 20
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REFERENCES Books and Journals Arpa, C., Tiernan, S. and O’Dwyer, M., 2012. Entrepreneurial orientation, market orientation and internationalisation in born global small and micro-businesses.International Journal of Entrepreneurship and Small Business,16(4), pp.455-470. Bögenhold,D.,Heinonen,J.andAkola,E.,2014.Entrepreneurshipandindependent professionals:Socialandeconomiclogics.InternationalAdvancesinEconomic Research,20(3), pp.295-310. Dana, L. P., 2013.When economies change hands: A survey of entrepreneurship in the emerging markets of Europe from the Balkans to the Baltic States. Routledge. Dana, L. P., 2016. ENTREPRENEURSHIP & SMALL BUSINESS. Franco, M. and Haase, H., 2013. Firm resources and entrepreneurial orientation as determinants for collaborative entrepreneurship.Management Decision,51(3), pp.680-696. Ghaedi, M. and Madhoushi, M., 2018. Social capital, knowledge management and innovation performance.International Journal of Entrepreneurship and Small Business,35(4), pp.579-597. Hall, J. and Wagner, M., 2012. The challenges and opportunities of sustainable development for entrepreneurshipandsmallbusiness.JournalofSmallBusiness& Entrepreneurship,25(4), pp.409-416. Lind, P., 2013.Small business management in cross-cultural environments. Routledge. Scarborough, N. M., 2016.Essentials of entrepreneurship and small business management. Pearson. Shah, S. F. H. and et.al., 2013. Factors affecting the growth of enterprises: A survey of the literaturefromtheperspectiveofsmall-andmedium-sizedenterprises.Journalof Enterprise Transformation,3(2), pp.53-75. Urbano, D., Alvarez, C. and Turró, A., 2013. Organizational resources and intrapreneurial activities: an international study.Management Decision,51(4), pp.854-870. Zamberi Ahmad, S., 2012. Micro, small and medium-sized enterprises development in the KingdomofSaudiArabia:Problemsandconstraints.WorldJournalof Entrepreneurship, Management and Sustainable Development,8(4), pp.217-232. Online Impact of SME's on economy of UK, 2017. [Online]. Available through <https://www.market- inspector.co.uk/blog/2017/05/facts-about-small-medium-businesses-in-the-uk> Differenttypesofentrepreneurialventures,2018.[online].Availablethrough: <http://casnocha.com/2011/02/the-four-types-of-entrepreneurship.html> 21