Entrepreneurship: Types, Impact on Economy, Characteristics of Successful Entrepreneurs

Table of Contents
Introduction.................................................................................................................................................2
P1. Examine different types of entrepreneurial ventures and explain how they relate to the typology of
entrepreneurship ventures, including examples of each type.......................................................................3
P2. Building on the different types of entrepreneurial ventures, explore the similarities and differences
between each...............................................................................................................................................5
P3: Present, interpret and assess relevant data and statistic to illustrate the impact micro and small
business have on the economy.....................................................................................................................6
P4. Explain the importance that small businesses and business start-ups on the growth of the social
economy......................................................................................................................................................9
P5: Determine what makes a successful entrepreneur and determine the characteristic traits and skills they
possess. Explore whether entrepreneurs are born or made and whether entrepreneurship skills can be
learned over time.........................................................................................................................................9
P6: Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and mindset.
.................................................................................................................................................................. 11
P7: Examine, using relevant examples, how a person’s background and past experiences can hinder or
foster entrepreneurship..............................................................................................................................12
Conclusion.................................................................................................................................................13
References.................................................................................................................................................14
1

Introduction
Before starting the assignment, we must first know from where the word “Entrepreneurship”
came from. The origin of entrepreneurship is from the French verb “entreprendre” meaning “to
undertake”. Therefore it means start or undertaking a new role or responsibility or starting a new
business. In the following assignment we will discuss the concept of entrepreneurship, its
typology. We will research the data so as to prove that entrepreneurs bring revolution in the
economic growth of the country. We will also discuss the various personality aspects and traits
and characteristics possessed by entrepreneurs.
2

P1. Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship ventures, including examples of each type.
Any business is said to be entrepreneurial venture if it is manufacturing or creating something
unique and new to the market. It implies that the entrepreneur is going to innovate something
new that is not in existence till then and is willing to take the risk. If we talk about different
entrepreneurial ventures, following are the types:
 Lifestyle Business: A lifestyle business is named so because it is a kind of business that
is in accordance with the lifestyle of the person doing that business. He or she can do this
business when and where he wants. It can be done online as well as offline. The main
advantage of this business is that the entrepreneur has the passion to do this as it is
according to his or her lifestyle. Therefore there is no need of motivation as the
entrepreneur is not doing it for making profits but for his/her will.
Example: A perfect example of lifestyle entrepreneur is Tim Ferriss, an innovative author
whose book “The four-hour work week” motivated many other entrepreneurs to take their
ideas seriously.
 Growth Firms: The growth of growth firms is very fast and the income made by them is
also very high. They are usually young firms. They have well planned strategies. Their
main focus is on innovation. They can also be called as serial entrepreneur and are totally
opposite to lifestyle entrepreneurs. These companies keep on developing new
applications and keep on growing.
Example: Google is a kind of growth firm. The value of shares of this company keeps on
increasing day by day.
 Social Enterprises: Social Enterprises are those businesses which operate for social and
environmental purposes. These are profit-making enterprises. These can further be
classified on the basis of profit and non-profit making.
3

Types of Social Entrepreneurs
(Source: www.timreview.ca )
Example: Example of Social Enterprise is Unity Trust Bank. It donates its profits for social
works. It makes use of the deposits of people for helping those who are in need.
 E-commerce: The businesses that operate totally through internet are called as E-
commerce. Such types of businesses have their own websites where all the useful
information about the company can be found. They work 24*7. These websites can be
accessed by anyone anytime and shopping can be done without having to travel and
payment is done through bank transfer or debit/credit cards.
Example: We have many examples of such business now a days like EBay, Amazon etc.
Apart from the above, intrapreneurship is another type of entrepreneurship which exists
within a company. It is mainly introduced by the manager of the company in order to
innovate new things. They are mainly found in large companies. It is self confidence of
manager and his willingness to fulfil the objectives of the company that gives rise to such
entrepreneurship (Drucker, 1985).
4