Entrepreneurship: Venture and Impact on the Economy

This document explores the different types of entrepreneurial ventures and their impact on the economy. It also analyzes the characteristics, skills, and motivational drivers of successful entrepreneurs. The case study focuses on Samsung.

Entrepreneurship
Venture and impact on
the economy

Table of List
.........................................................................................................................................................3
INTRODUCTION ..........................................................................................................................4
TASK A...........................................................................................................................................4
1. Critical evaluation of various entrepreneurial ventures .........................................................4
2. Impact of the business on national, international and social economy...................................6
TASK B...........................................................................................................................................8
1. An analysis of the characteristics traits, skills and motivational drivers of successful
entrepreneurs...............................................................................................................................8
Oprah Winfrey............................................................................................................................8
Peter Jones...................................................................................................................................9
2 An evaluation of various characteristics of how various characteristics of the entrepreneurial
personality reflects entrepreneurial motivation and mindset....................................................10
3. Critical Evaluation of the influences of entrepreneurial Characteristics, backgrounds and
experience on entrepreneurship.................................................................................................11
These are the influences of entrepreneurial Characteristics, backgrounds and experience on
entrepreneurship........................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneurship is concerned with the designing, developing and running their small business
venture by converting business idea into action and leads to the growth and success of the
business enterprise. This also leads to improvement and enhancement of the nation’s economy.
This project is divided into two parts, in part A while working within TCG consultancy group,
which is the global leader for independent strategic advisory and management services across
various sectors. This task will throw highlights on analysing different types of ventures and their
impact upon the economy (Blackburn, Hart and Wainwright, 2013). It also analyses impact of
business on national, international and social economy. In task 2, chosen organisation is
Samsung which is a South Korean multinational conglomerate company which is headquartered
in Samsung Town, Seoul. It provides wide range of home electronics with advanced
technologies including smart phones, tablets, TV's and home appliances. This task will focus on
the mind set of various entrepreneurs and analysis the characteristics, skills and motivational
drivers of successful entrepreneurs.
Various entrepreneurial ventures
Entrepreneurs are the individuals who have the capacity and willingness to carry their business
activities in a proper manner, assuming all the risks so as to earn higher profits. Therefore there
are different entrepreneurial ventures which could be started by the individuals, described as
follows-
 Small Scale Enterprise- This is a small scale business which is mainly operated by a
single individual in order to earn their livelihood. These businesses are barely profitable
and run by an individual for its survival in the market. The success in context of small
buisness is defined when they are able to feed their family and run basic business
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expenses (Storey, 2016). Examples of such business are small grocery stores, travel
agents and many more.
 Scalable Enterprise- This type of venture is operated by the individuals in order to
provide more innovative products to the customer and earn higher profits on investments
incurred. The entrepreneurial ventures are often initiated by visionary who have been
able to garner large capital investments in a short period of time and further repeat the
procedure again once the business is established (Parker, 2015).
 Large Scale Business- This is a large scale business whose main focus is to provide
continuous improvement in their products and services and fulfil the demands and
requirements of the customer (Prosser, 2014). Example is Apple. Businesses operating on
a large scale mainly focus on innovating their products and services so that it leads to
sustainability of operations.
 Social Entrepreneurship- These are the ventures whose main focuses are to provide
social services to the individuals within the society and increase their standard of living.
(Singh, 2014) Example is Cafe direct. The products and services which are launched in
the market mainly focus on overcoming social issues and challenges faced by people. The
social entrepreneurial venture can be profit and non-profit.
Typology of Entrepreneurship
There are various typologies of entrepreneurship described as follows-
 Survival Firms- These types of firms are operated and run to earn livelihood and provided
products that meets with the basic necessities of customers (Bridge and O'Neill, 2012).
 Lifestyle Firms- This typology of venture are operated and run by the individuals with the
major purpose of living a particular lifestyle.
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 Managed growth firms- Major purpose of this type of firms is to enhance their profitability
level by continuously providing innovative products.
Scope, Development and Growth of Entrepreneurial Ventures
These various types of entrepreneurship ventures help in the scope, development and growth
described as follows-
 Scopes of large and scalable enterprises are high as these types of ventures provide
innovative products so as to earn maximum profits and meet the requirements of the
customer (Drucker, 2014). This venture can attain maximum growth over a period of
time as it offers consumer offering according to their requirements.
 Scopes of small and social entrepreneurial ventures are moderate as these types of
ventures provide customer products for the main purpose of earning their livelihood.
Therefore these ventures can also achieve higher growth and development by providing
individual social services which uplift their standard of living and meets their daily
necessities of life (Bailey and et. al., 2018).
 High Growth firms and small scale enterprises are categorised under corporate sector
entrepreneurship which is operated by identifying new opportunities and ideas so as to
enhance their profit margins and remains competitive. In addition to this high growth
firms are related to managed growth firms which provides innovative products and attains
a stable growth over a period of time, and small sized ventures are related to survival firm
typologies whose main focus is to earn livelihood earning (Dennis, 2011).
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 Social enterprise are categorised under Public sector entrepreneurship which works under
the governmental rules and regulations and generate high economic prosperity for the
individuals within the society (Peachey and et. al., 2015).
Differences and Similarities in Entrepreneurship ventures
Differences
Small Scale Enterprise Scalable Enterprise
 Small scale enterprise performs their
work with small number of individuals
and at a small level with the motive of
earning sufficient profits (Kyratsis and
et. al., 2016).
 Scalable enterprise performs there
work at local level with the help of
volunteers who has a motive of
improving society standard of living
(Smith and Chenoweth, 2015).
Similarities
S.no Similarity Description
1 Customer Satisfaction All types of firms or ventures which are present in
organisation work with motive of satisfying needs of
customers through their products and services. For
instance large and small enterprise aims to fulfil
requirements in a profitable manner whereas social
enterprise attempts to fulfil the same in a rational manner
(Shin and et. al., 2015).
2 Conforming to Rules and
Regulations
Whether small, large and scalable business must follow
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the rules and regulations to perform the work effectively
in the market. There are certain guidelines which are to be
followed by businesses irrespective of operating for
profits or public welfare (Conger 2015).
3 Business Expansion The aim of all purposes is to improve the business area for
their business which increases the demand of products in
market. The attempts of a business are to make efforts to
enlarge their operations through which they can earn
higher level of profits. Whereas for social ventures, they
enlarge their operations to serve more people (Chang,
2016).
Impact of the business on national, international and social economy
Micro business are the business in which less than 5 employees are hired and works in such a
manner so as to earn substantial amount of profit. On the other hand small business are those
which are controlled and operated by few or more individuals comprising of less than 5
employees so as to conduct business activities in a proper manner (Blackburn, Hart and
Wainwright, 2013).
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(Source: Impact on small businesses, 2017)
From the above graph it has been concluded that with the growth of micro, small and medium
enterprises it has enhanced nation’s economy by eradicating poverty from the country and also
provides them with more employment opportunities.
It can be concluded from the above graph that micro business is contributing effectively with an
overall growth of 18.9 % and enhancing the economy as well as small sized enterprises are
enhancing overall growth of 23.4%. Therefore all are contributing towards more employment
opportunities by providing the customers with products according to their demands and
requirements (Carsrud and Brännback, 2011).
Impact of small business on different levels of the economy
Local Economy- Small and medium size enterprises help the local economy by providing
employees with employment opportunities and increase their living standard.
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National Economy- SME is impacting on the national economy as it increases the GDP of a
country. In the context of UK, there is increase in the growth rate with 4.5% for each particular
year. There has been a significant contribution of small businesses on national economy as
approximately 16.6 million people are employed due to presence of small businesses (Doh and
et. al., 2014).
International Economy- The international economy of UK is also impacted by the performance
of SME as it increases the import and export level through developing local goods. Due to which
foreign investment is boost in country as it increases the economy of country.
Globalisation- Majority of the industries are performing their work at global level, this refers that
it is mandatory for organisation to perform their work as per the market situation of international
aspects.
Trade barrier- This is difficult for organisation to exchange between products and services within
different countries. For performing their work efficiently it is essential for organisation to
manage their work by coordinating between functions and leaders.
Social economy- In the context of Social economy, there are various benefits are achieved by
local individuals, like the increase in employment opportunities, to improve the skill and
capabilities of local individuals and many more. This results there are more than 45% employees
are recruited by SME’s in the UK that enhances the purchasing power of local citizens because
of high employment rate.
Chosen organisation for this task is Samsung which is a South Korean multinational
conglomerate company which is headquartered in Samsung Town, Seoul. It provides wide range
of home electronics with advanced technologies including smart phones, tablets, TV's and home
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appliances. This task will focus on the mind set of various entrepreneurs and analysis the
characteristics, skills and motivational drivers of successful entrepreneurs.
An analysis of the characteristics traits, skills and motivational drivers of successful
entrepreneurs
Entrepreneurs are an individual who plays an important role in the business. They are
responsible for lead the organisation in the higher position. Great entrepreneurs have the capacity
to improve the current and future needs by giving new ideas, new technologies and new trends
according to the market (Dennis, 2011). In context of Samsung, an entrepreneur with the great
skills and traits can improve overall performance of the organisation. They must have that skills
and traits which help them to embracing risk, having big ideas, and making major innovation
related to their business. Peter Jones and Oprah Winfrey they have succeed in the market by their
skills and traits. The entrepreneur of Samsung must have those skills and traits which can lead
them to in a higher position in the market place.
Oprah Winfrey is most successful American media executive, actress, talk show host, TV
producer, and philanthropist. On the other hand Peter Jones, he is also a most successful British
entrepreneur and businessman whom interest in media, mobile phones, retail and property .
(Bailey and et. al., 2018). These both successful entrepreneurs have great skills, traits and
motivators which inspire them to become a most successful entrepreneur. All these are described
below:-
Oprah Winfrey
Characteristics traits:-
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 Motivational – A motivational entrepreneur like her can more motivate their employee
towards their work so they can take interest in the production.
 Emotionally Intelligence – This trait boost entrepreneur's self-awareness, social skills,
communication skills, self-control, compassion and many more.
Skills:-
 Innovative – An entrepreneur must be innovative like Oprah Winfrey to become successful
in the marketplace. An innovative entrepreneur can continuously grow always think about
better products, more efficient process, and try to enhance business models so the employees
get benefit from them.
 Puts the people first – An entrepreneur should put the employees, customers, and many
other people first. They should listen first others people ideas, thoughts, and problems then
they should convey their messages and ideas to them.
Motivational drivers:-
 Clearly defined goals – A successful entrepreneur always know that what they want to
achieve. This motivation always inspires them to achieve their goals and objectives.
 Teammates – A great entrepreneur always needs to working together with their
teammates like Oprah Winfrey done in their business (Peachey and et. al., 2015).
Peter Jones
Characteristics traits:-
 Responsible – It is one of the key traits that represent that every entrepreneur should be
responsible for their work like Peter hones. It will help them to take any responsibility
without any hesitation and inspire them to accomplishing their responsibility on time with
great efforts.
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 Hard worker – To become a more successful entrepreneur needs to do hard work towards
accomplishing their goals and objectives.
Skills:-
 Have a vision – According to Peter Jones every entrepreneur have a vision that means en set
the goals and objectives and make strategies to achieve that goals and objectives.
 Confidence – An entrepreneur should be confident that helps them to believe themselves and
their actions.
Motivational drivers:-
 Care for the staff – According to Peter Jones, staff is an important asset of any organisation
because behind the success of any organisation they play a big role.
 Be personable and approachable – This motivation means an entrepreneur should
maintain good relationship with their employees and business partner so they can more
succeed in the marketplace (Kyratsis and et. al., 2016).
How various characteristics of the entrepreneurial personality reflects entrepreneurial motivation
and mindset
As we discussed about the skills, traits, and motivational factors of the entrepreneurs, which are
the most important part for succession of any entrepreneurship, these skills and traits must have
in any entrepreneur because without these skills they cannot succeed in their business. An
entrepreneur is main asset of any organisation who has ability of carry out innovations; develop
new resources, a new product, new market for their products, and new methods to increase
productivity (Smith and Chenoweth, 2015). The above skills help an entrepreneur to do their
mindset regarding their goals and objectives. In any business entrepreneur mindset is necessary
because this will encourage creativity, able to make their trust among the people, and it will also
help in other area of life (Piip and Harris, 2014).
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To achieve their goals and objective an entrepreneur must have skills, which can be understood
by various examples like a responsible person can take easily various responsibilities related to
their work without any excuses. Moreover, there are various skills and traits like goal oriented,
passionate, humble, focussed, open minded and many others which help them to achieve their
goals and objectives.
These skills keep motivated them to regarding their goals and objectives. For the entrepreneur
profit should not the prior motivation rather than the time period between having an idea and
implementing the new ideas in their production should be the main motive of any entrepreneur.
Without these skills an entrepreneur is not able to implement those ideas like lack of confidence
lead them to prevent from taking any risk for their business. If the entrepreneur is skilled then he
will be able to motivate their employees to do work hard towards achieving their goals and
objectives.
Furthermore, an entrepreneur mindset helps them to take risk and accept failure which is very
important for business. It is not possible for any business that they will always succeed but there
are some circumstances can be occurred where they cannot succeed. So, incorporating an
entrepreneur mindset will help them to minimize the failure and rejection which they might face
while doing business. These skills help them to moving forward when things are good or even
difficult.
Influences of entrepreneurial characteristics, backgrounds and experience on
entrepreneurship.
It has been analysed that entrepreneurial characteristics, backgrounds and experience of the
entrepreneurship helps them to conduct the activities within the business venture in an elective
and efficient manner (Solomon and et. al., 2016).
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Oprah Winfrey
Winfrey born on January 29 started learning speeches and recitation at their social gatherings at
church. She actively participated in dance and debate club which enhanced her communication
and interaction skills. Apart from this Oprah also won scholarship in public speaking competition
and done graduation in speech communication.
It has analysed from the background and experience of Oprah Winfrey that background
contributed much towards opening their own business venture and education also helped in
enhancing skill and capabilities which had led her to become the successful entrepreneur.
Peter Jones
Peter Jones family background was simple as his father was a small mechanic engineer, this
motivated him to develop interest towards various electronic fields and this motivated him to
start its own entrepreneurial ventures. Peter has completed education in economics field and left
the school at the early stage and therefore gained interest towards mobile applications.
Therefore, education and background experience of the Peter Jones motivated him to develop
primary interest towards various fields and this led him to become the successful entrepreneur.
These are the influences of entrepreneurial characteristics, backgrounds and experience on
entrepreneurship (Birasnav, 2014).
CONCLUSION
From the above report it has been concluded that entrepreneurial ventures greatly enhances the
national economy by providing employees with more employment opportunities. In addition to
this small, medium and micro sized enterprise enhances the growth of the national economy and
leads to the development of the country. It has also been analysed that character tics, skill and
motivational drivers of various entrepreneurs helps them to conduct their business activities in a
proper manner and so as to attain maximum growth and success.
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Birasnav, M., 2014. Knowledge management and organizational performance in the service
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.Online
Archived — Key Small Business Statistics - June 2016 . [Online].Available
through:<https://www.ic.gc.ca/eic/site/061.nsf/eng/h_03018.html>.\
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