Exploring Entrepreneurship Theories

This assignment explores the multifaceted field of entrepreneurship. It examines various theories that underpin entrepreneurial behavior, including classical perspectives on competition and innovation, modern understandings of effectuation and bricolage, and the emerging field of social entrepreneurship. The assignment also touches upon the ethical considerations and societal impact of entrepreneurship.

ENTREPRENEURSHIP
&
SMALL BUSINESS

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types of entrepreneurial ventures and their relation with typology........................1
P2 Similarities and differences between entrepreneurial ventures..............................................2
TASK 2............................................................................................................................................3
P3 Relevant data to understand impact of small business on economy......................................3
P4 Contribution of small businesses and start ups on social growth...........................................4
TASK 3............................................................................................................................................6
P5 Traits and skills of successful entrepreneurs..........................................................................6
TASK 4............................................................................................................................................9
P7 Ways in which background and experience hinder and foster entrepreneurship...................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
A person who have distinctive thought process and these ideas he/she is putting in
running a business is called as entrepreneurship and person who is involved in this procedure is
defined as entrepreneur and business entity is called as enterprise. There are lots of ways in
which entrepreneur can put his idea like manufacturing, promotion, placing etc. main advantage
of entrepreneurship is to get competitive advantage because working in different style makes
business entity different from other corporate houses. This report is based upon Wiser Co. which
is a creative and recruitment consultant firm which is running its operations in UK. This venture
is providing beautiful and dynamic career options that is helpful for youngsters in achieving their
career goal.
TASK 1
P1 Different types of entrepreneurial ventures and their relation with typology
In an enterprise, there are many tasks and actions which cannot be done by entrepreneur
alone so to accomplish this purpose, main requirement of business owner is to have sufficient
number of people employees whom should be expert in their working so that all actions could be
done in most appropriate manner along with in distinctive way. This action is only be done for
when entrepreneur make aware all workforce about mission and vision of enterprise because of
getting information about aims and objectives, manpower get to know that what they have to do
in which time period.
Small Business Enterprise: This type of firms are operated by single human being and
main objective of staring this type of venture is to cater needs and wants of owner himself along
with his family members. Main instances of this kind of enterprises are painters, carpenters,
plumbers, retail shop owner etc. These people run enterprises for fulfilment of their daily
requirements.
Scalable Start-Ups Entrepreneurship: Growth of this kind of ventures are noticed as per
time passes. Individual who is able in running this type of corporation is a person whom is
capable in generating funds from many financial resources. Main objective of firm is to enhance
living standards of society by serving them qualitative goods and services. All sort of business
operations rely upon sources of finance and it is a job of entrepreneur that he/she should arrange
and manage requisite amount of fund so that all actions could be done in appropriate manner. In
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respect to this term, entrepreneur is a person who takes risk for business and alone is responsible
for all profit and loss.
Aggressive Development Ventures: This is a type of scalable start-up entrepreneurship.
Entrepreneurs are those persons who are able in putting efforts in order to improve quality of
products and services by interfering in manufacturing function of corporation. Higher quality
goods and services are main cause of increased stronger customer base.
Large Company Entrepreneurship: In other words is also stated as corporate
entrepreneurship. Owner of these venture are those who are able in taking care of all business
activities and risk which is linked with association for accomplishing all tasks and duties in
limited period of time. Main USP of these ventures are unique items and services which stands
entrepreneur apart from their competitors in marketplace. Large scale enterprises are able in
conducting research and development program to get information about choices, tastes and
preferences for customers who are centre of all business operations.
Social Entrepreneurship: This type of enterprises are set up to provide facilities to those
class of society whom are not able in catering their need like lower middle class persons. This
type of organisation are able in producing high quality goods and services which are able in
facilitating societal people. These venture also provide entrepreneurial opportunities like
generation of employment options for those whom are able in doing business operations or
entrepreneur can make able them by providing sufficient training and development program.
P2 Similarities and differences between entrepreneurial ventures
Enterprises are having some distinctions and similarities which is stated as below:
Objectives: This is a purpose which differs firm to firm and makes organisation distinct among
all similar associations. Main motto of Wiser group is to gain greater market along with higher
rate of profits. This objective is done by getting help of optimum utilisation of all available
resources. Entrepreneurs who are conducting business operations in market are those who are
able in catering demand of consumers by providing them good quality products and services.
Large corporations are those who provide latest tools and technologies to their customers.
Value Creation: When an enterprise welcomes all positive alterations in their association
from external business environment then enterprise is able in creating value of their product and
this action further converts a company into brand. This activity further generates mouth publicity
which is a most prominent tool for promotion of goods and services and goodwill gets increased.
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Mindset: When a person has its mindset then he/she is able in doing prioritise their duties
and task and can accomplish their activities in systematic manner. This activity brings some new
up-gradations in business ventures which updates fascinate large number of clients. Up-
gradations can bring by doing some specific actions and functions.
Channels of Marketing: Effective marketing tools are necessary for popularising business
activities among customers so that sale of product and services could be enhanced. Channels of
marketing are tool that enhance image of company in the eyes of consumers.
Employment Generation: Entrepreneurship is a function that could not be done by single
person so it engages more than one person other than owner and this is an employment option for
that another entity. So it is clear that enterprises are good alternate for generating income earning
options.
There are some similarities and distinctions which are stated as below:
Divers sort of ventures Equalities Distinctions
Small & Social
Entrepreneurs
 Small size.
 Initially started to cater
requirements of
family.
 Works in multiple
conditions
simultaneously.
 peerless idea in daily
routine actions.
Large & Scalable
Entrepreneur
 Covers wider
geographical area.
 Large no. of clients.
 Main aim is to run
enterprise for longer
duration.
 Uses several
promotional tools
which is used to
popularise business
entity.
TASK 2
P3 Relevant data to understand impact of small business on economy
Main aim of these associations are earning financial resources in order to fulfil necessities of
family members and to serve society by serving good quality products and services. These
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ventures are also responsible for developing employment facilities to those who are efficient
in conducting business operations and able in profit generations and standard of living relies
upon higher profit.
According to the current market scenario, a large contribution in the economy of nation can
be seen by small scale industries. As per the study that was publishes in the report, around 6
million business are regulated by these small scale industries although these firms are operating
its business in a lower level but they are contributing a some number of amount in country's
economy. Therefore, approximately share of 87% are given by small and medium enterprise
because of which nation is economy is growing in forward direction (Burns, 2016).
In current time, these corporate entities are showing rapid and prominent growth rate.
Small scale firms are having 6% share in stability and growth of economy. Approximate
turnover of little sized turnovers are around 2.2 trillion which is same as private ventures
(Santos, 2012).
Out of overall public, there are 68% of people who are running their business enterprises
in small and medium level. Above study is representing that little sized associations are more
beneficial than any other ventures.
Above analysed info is showcasing that growth and certainty of economy of a country
relies upon small level enterprises because these ventures are contributing larger amount of
profits in country's income. Other then these points, there are some laws and acts which is made
by government in order to provide some assistance to small size firms because these ventures are
having good role in success of economic conditions of nation. These moderate corporate entities
are able in developing employment opportunities and these increased income options bring
higher standard of living in society. This action of increasing rate of income earning alternatives
are able in diminishing flaws of economies (Shane, 2012).
P4 Contribution of small businesses and start ups on social growth
Success of a society depends upon enhancement of living standard of a person who
instead of development of financial status of country and enlargement level of living scale relie4s
upon small scale enterprises. It is required from all people that they should consider all aspects
which are linked with these enterprises. Main benefits of these associations are enlargement in
employment rates because these hiked opportunities are able in reducing poverty line and a
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diminished poverty is able in changing status of nation from developing to developed (Martin,
McNally and Kay, 2013).
As resultant, people can enhance their living standards by getting good quality products
and services which are offered by small and medium level ventures. Along with this. Improved
quality items and facilities fascinates larger buyers towards enterprises and creates stronger client
base for company. When firm deals with large customers then it tries to manufacture better
quality goods because if this action would not happen then this situation will be able in reducing
number of consumers and profit as well. When firms gathers attention of many new buyers then
this points is to be considered as motivation among employees because workers are watching and
gaining positive results of their actions and task completions and inspiration also improves
quality of products and services of enterprise. There are few benefits which is directly linked
with small and moderate ventures.
Employment: In terms of small scale industries people can start of their business at any
point of time in respective areas where an individual is living. In this person do actions and
activities in which he/she is capable which can provide maximum benefits in future. Whereas
entrepreneur look out for skilled candidates and workers who can perform activities in a better
manner and give effective results to company in return (Bae and et. al., 2014). therefore, the
above mentioned scenario is an example of how small scale industries work with the skilled and
knowledge they have acquired and an entrepreneur hire employees as per the capabilities and
efficiencies an individual have. Thus, this shows that both small scale industries and
entrepreneur have a different mind set while performing their business operations. According to
a research it has been evaluated that around 89% of people have engaged themselves in medium
kinds of firms due to which an increase in employment scale can be seen. As a result it has
improved nation's economy level because of which level of income of individual has raised.
Living Standards of Society: Small and medium scale industries in large number has
provided employment opportunities to people living in United Kingdom and as a result it has
raised monitory options and this has directly and indirectly upgraded the living standard of
people who are living in a particular area. People are now expending more money on luxurious
items which is representing higher level of living standards of people. (Baum, Frese and Baron,
2014).
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Exports: This is a function that is considered under promotional activities as to attract a
large number of people this is the most effective method. For this, company adopts various kinds
of tools and technologies which is helping organisation in increasing its customer's base. For
exporting products it is required that company manufacture goods that are high in quality as a
result it will help company in delivering commodities right on time. As Wiser Co. is one of the
leading consultancy firm whose prime role is to give suggestions and to enterprise if they have
any kind of legal issues while operating its business effectively. So, by giving appropriate
solutions company is increasing its sales and profitability as a result it is attracting large number
of people towards their organisation.
Community Development: Every company works with a motive of gaining maximum
profits so for this company provides better services and facilities to customers. Community helps
individual in providing employment opportunities which will develop gradually improve the
status of community. It will therefore, improves finance and revenues in speculated time frame.
(Fisher, 2012).
TASK 3
P5 Traits and skills of successful entrepreneurs
Entrepreneurs work with a different mind set and these people are think over a task in a
different manner. For achieving goals and objectives they tend to find ways which are unique in
nature and provide them with better results in return. Thus, by performing better at market area
company will be able to gain a superior position at market area. Therefore, activities performed
in a better manner will give effective results and provide company with advantages. For working
effectively there are various kind of traits that an individual must posses and these are explained
below for having better understanding:
Confidence: This is an important trait that an individual must have as any work that is
performed by an entrepreneur should be done with full confidence. There can be some situations
when an individual must have to take some strict decision for making their business grow in right
direction. Confidence will help a person in performing their task in a better manner and with full
enthusiasm as a result all the goals and objectives can be achieved in speculated period of time.
Optimistic: An entrepreneur while executing the task and must be optimistic regarding its
outcomes. Individual must look out for more positive outcomes rather than thinking of getting
failed. Thinking of positive results will always motivate and encourage employees and will help
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them in pushing their limits of doing work more appropriately and effectively. So, whether
situations are negative optimistic personality will help an individual in converting negatively into
positive outcomes (Venkataraman and et. al., 2012).
Thinker: This is the factor that makes every individual different from others,
entrepreneur who have different mind set will will gain success in business operations.
Therefore, thinking in a creative manner will provide competitive advancement as a result it will
enable company in giving tough fight to rival firms. Henceforth, Wiser can use latest tools and
technologies for evaluating thinks in a different manner and with a change in perception. Thus, it
will assist enterprise in giving better solutions to the problem that are facing by organisation who
have come for consulting issues.
Passionate: A person become entrepreneur to follow his/her passion and dreams. If an
individual has established a firm than it is crucial that he/she is working passionately. As if a
person is not doing work with enthusiasm or zeal than its business may face some kind of
complications which will further can act as a barrier in company's performance. Therefore, for
performing the task in a better manner it is necessary that work is done significantly with
resources that are available to firm (Ács, Autio and Szerb, 2014).
Example: Richard Branson was a passionate person and his venture was successful thus
he was the owner of Virgin Group and have almost 400 companies which are running by him
This kind of action is required for manufacturing best quality products as which assist company
in attaining all targets in a significant way.
Some of the factors that are required by an individual to be obtained are explained:
Time Management: In order to get effective results and outcomes it is crucial that entire
task is done within time frame as it will enable company in delivering goods and commodities
right on time. Thus, managers of Wiser must make sure that a small targets are being made so
that it can be accomplished right on time. As a result it will provide maximum benefits to
company and give them competitive advancement through which firm sustain a better position at
market area (Miller and et. al., 2012).
Decision Making: It is important that entrepreneurs have an adequate amount of
knowledge related to market area as it will help an individual in making appropriate decision for
business operations. Therefore, it is crucial that a person has the capability of good judgement
through which whether action will be a success or a failure can be evaluated and identified. Thus,
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an effective decision will help company in getting better outcomes. Hence, proper judgement
will help firm in making decision regarding what kind of financial resource company can use for
having better growth.
Communication: This is a basic factor that every individual need for doing interactions
and explaining roles and responsibilities which is to be performed by a person in an organisation.
Thus, it is crucial that manager use simple cum effective words by which can be understandable
by staff members. Establishing a better communication will helps company in bringing
transparency amongst employees and subordinates as a result it will enable staff members in
expressing their views and thoughts in an appropriate manner. Therefore, it will helps superiors
in eliminating flaws that are present at workplace.
Leadership: Business owners in a company needs to gain effective leadership qualities
which helps in bringing employees on same phase. In this context, Spearhead is an entrepreneur
who have strong leadership skills and effective judgemental power to ensure that all work done
by workers is done in adequate manner. According to him, an employer in a company should be
assertive leader rather than aggressive. Therefore, a famous person named by Chieftain used to
allocate work to employees as per their skills instead of impose them to do in own manner.
Therefore, all these elements that are mentioned above must be acquired by an
entrepreneurs if they want their business operations to gain maximum benefits.
P6 Aspects of Entrepreneurial Personality
Behaviour of a person defines about the personality that is possessed by him/her, as this
denotes the characteristics of performing task in various kinds of situations. Therefore, a person
doing work calmly in difficult situation will show temperament of an individual whether he/she
can be able to accomplish task in an effective and efficient manner or not. Whereas if a person
gets hyper and shouts at its staff members because of work pressure will directly indicates
negative behaviour of a person. Thus, some of the models are explained below that can be linked
with responsibilities of entrepreneurs and these are as follows:
Openness to Experience: In a company entrepreneur must maintain a healthy
environment where people can get equal chance of expressing their views and thoughts. This will
assist firm in establishing mutual understanding between employees as a result it will help
company in achieving goals and objectives in given speculated time frame. With lot of views it
will enable firm in making some kind of modification that are according to current market
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situations. Therefore, it will help enterprise in sustaining a better position at market area
(Kirzner, 2015).
Emotional Ability: It is essential that entrepreneurs are stable in nature in terms of
emotions as it will help an individual in acting normally in difficult situations. If in future
company faces any losses due to any circumstances than entrepreneurs must have capability of
dealing with the situation and evaluate effective solutions for the same.
Extraversion: This is a trait which makes an individual energetic while performing
activities in a right manner. It enables individual in interacting with person who share same
thoughts and are linked with each other for accomplishing any kind of targets. In addition to this,
effective communication is also required for sharing thoughts and views so as to do work
effectively. Therefore, it helps people in remaining optimistic in difficult situations and brings
positive environment at workplace.
Conscientiousness: While doing a work a person must be attentive so that flaws and
issues can be eliminated which can create problems in business operations. Thus,
Conscientiousness is defined as an ability of being attentive in nature whether small or big
matters. It will give advantage in generating a large number of profit and revenues in given
period of time.
Agreeableness: The most important things that an entrepreneur must include in their
business operations is to accept changes as modification can provide maximum benefits to
companies. It will help company in accepting challenges which can give competitive advantage
in given market area.
TASK 4
P7 Ways in which background and experience hinder and foster entrepreneurship
Background of a person largely effects capability of collecting and recording information
which is helpful in completing all targets with full efficiency. For i.e. Richard Branson is a
person who was not belonged to a rich community but he started a company named as Virgin
Atlantic. The person was not so much qualified in handling all business activities but his ability
to face opposite conditions and taking efficient decisions make his successful and because of this
skill Richard is able in conducting his business operations in most advantageous manner.
Experiences and background plays a crucial year role in conducting business operations
as it can have a direct and indirect impact. Thus, inner and outer capabilities that are being
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possessed by an individual helps a person in being different from others which makes a person
entrepreneur. There are various factors that can influence personality development in an
individual's life like time spend in schools and colleges, with friends, society and many more.
Thus, these are the elements that shows how a person behaves with with other individuals.
Respect that are being gained by a person is what shows the temperament of a person in
performing any kind of task and work (Brenkert, 2017).
If a person want to become entrepreneur then he should have knowledge about the
market place. This factor works in both the ways as foster and hinder entrepreneurial activities.
Proper knowledge about market helps them to know about the trends at market place and
accordingly they will collect funds for the ventures. Knowledge factor helps in availing the
opportunities from the market place as the less experienced person will not be able to understand
the situation at market place. The combination of knowledge and experience give rise to
persistence. Loss in business operations are inevitable but the person who builds passion in order
to complete the venture is evaluated as the winner.
Example: The most famous entrepreneur John Caudwell who have developed phones 4
U. In the beginning of the venture he was struggling in the beginning and operated a work shop
in order to make his dream turn into reality. The current valuation of entrepreneur is around 1
billion.
CONCLUSION
Form the above report it has been concluded that a person needs a unique characteristics
and approach for making their business effective and different from others. For this some there
are some of the qualities which are to be possessed by a person so as to make appropriate
decision for their activities. Therefore, an individual with unique personality traits and different
approach of performing the task will definitely gain success in market area. Along with this,
background and experiences of an individual is also required to be considered.
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REFERENCES
Books & Journals
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issues and policy implications. Research Policy. 43(3). pp.476-494.
Bae, T. J. and et. al., 2014. The relationship between entrepreneurship education and
entrepreneurial intentions: A meta‐analytic review. Entrepreneurship theory and
practice. 38(2). pp.217-254.
Baum, J. R., Frese, M. and Baron, R. A., 2014. Born to be an entrepreneur? Revisiting the
personality approach to entrepreneurship. In The psychology of entrepreneurship. (pp.
73-98). Psychology Press.
Brenkert, G. G., 2017. Entrepreneurship, ethics, and the good society. In Entrepreneurship. (pp.
85-128). Routledge.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: Entrepreneurship and small
business. Palgrave Macmillan.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
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Entrepreneurship and Sustainability. (pp. 34-42). Routledge.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Fisher, G., 2012. Effectuation, causation, and bricolage: A behavioral comparison of emerging
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Kirzner, I. M., 2015. Competition and entrepreneurship. University of Chicago press.
Kuratko, D. F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
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entrepreneurship: A meta-analysis of entrepreneurship education outcomes. Journal of
Business Venturing. 28(2). pp.211-224.
Miller, T. L. and et. al., 2012. Venturing for others with heart and head: How compassion
encourages social entrepreneurship. Academy of management review. 37(4). pp.616-
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Parker, S. C., 2018. The economics of entrepreneurship. Cambridge University Press.
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Schaper, M. T. and et. al., 2014. Entrepreneurship and small business.
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entrepreneurship as a field of research. Academy of Management Review. 37(1). pp.10-
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