The Role of Entrepreneurship in Economic Growth

This assignment examines the significant influence of entrepreneurship on economic development. It delves into various aspects of entrepreneurship, including its impact on job creation, innovation, and overall national prosperity. The analysis considers theoretical frameworks, empirical evidence, and contemporary challenges facing entrepreneurial ventures. Students are expected to synthesize information from provided readings and demonstrate a comprehensive understanding of the complex relationship between entrepreneurship and economic growth.

ENTREPRENEURSHIP

Table of Contents
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............................................................................................................................................4
P3 Relevant data to understand impact of small business on economy.................................4
P4 Contribution of small businesses and start ups on social growth......................................5
TASK 3............................................................................................................................................7
P5 Traits and skills of successful entrepreneurs.....................................................................7
P6 Aspects of Entrepreneurial Personality.............................................................................9
TASK 4..........................................................................................................................................10
P7 Ways in which background and experience hinder and foster entrepreneurship............10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
When an individual with different idea takes risk to run a business is called as
entrepreneur. He is a person responsible for all decisions and actions that are to done in
enterprise. Entrepreneurship is a process of running a business enterprise by an individual who
can be states as entrepreneur. He is having a unique idea regarding good and services in order to
produce a product which should be able in gaining competitive advantages at marketplace. At
present time there are so many persons that starts their business by own choice that showcases
person's capabilities (Kirzner, 2015). Austin Fraser is an enterprise that is conducting their
business operations in UK. This entity is a consultancy service provider firm that is serving to
people into their carrier and personnel development. This project is based on various
entrepreneurial association' s differences and similarities. Successful running of enterprise affects
by background and experience of individual in direct or indirect manner. Numerous number
employment options are increasing day by day along with growth of start ups and small ventures.
TASK 1
P1 Different types of entrepreneurial ventures and their relation with typology
In organisation, employer require that they have sufficient number of people available
through which business activities take place appropriately. So that goals and objectives are
accomplished and thereby profitability of firm also enhanced. This help enterprise to position
themselves superior than competitors. These are firms which are linked with self employment are
as follows:
Small business entrepreneurship: these are business which are started by people who
want to generate revenue from their undertaking. Carpenters, grocery stores, consultants,
plumbers and so on are examples of this. They carry out activities through which their family
requirements are being fulfilled.
A small firm is having interconnection with survival typology venture. Business people require
to put huge efforts, so that they are able to sustain in their share in market share for longer period
of time. By offering products and services in creative manner through which they are able to
compete with rival firms. These are association in which profit and loss, both are borne by owner
as small firms are autonomous in nature. Henceforth, owner is liable and takes risks of business
activities (Drucker, 2014).
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Scalable start – up entrepreneurship: These are firms which will enhance and grow up
with time. So, in this various companies are ready to provide funds whenever required by owner.
These are efficient business whose prime goal is to improve society. Enterprise require that they
have adequate funds available so that activities are taking place in proficient manner. But this
also comprises huge risk, so every person is not able to carry this type of organisation.
Aggressive development ventures is associated with scalable start-up entrepreneurship. Business
person keep executing new and unique ideas in system so that they are able to enhance their
position and share in marketplace. This also help company to attract large number of people by
offering adequate goods and services (Kuratko, 2016).
Large company entrepreneurship: This is also defined as corporate entrepreneurship.
Business person require to take care that they carry business activities properly. They provide
creative products and services through which they are able to regulate and control their share in
market. So, superior conduct market survey through which they are able to enquire about
customers requirement and competitors offerings. Thereby, manufacturing items accordingly
through which they are able to fulfil demand of customers and earn adequate profit for their
firm.
Managed growth venture entrepreneurship is connected with large company. These firms prime
goal is to sustain in market for longer period of time.
Social entrepreneurship: These firm main goal is to offer quality products and services
to people. Entrepreneur examine issues and problems, so that they are able to ascertain
appropriate solution for them. People want that they get medical facility in their firm as they
don't want to spend money for doctor.
Lifestyle venture is associated with social entrepreneurship. Their prime goal is to offer products
and services through which society requirement are completed. So, firm is able to earn adequate
profit through which they are able to sustain position in market for longer period of time.
P2 Similarities and differences between entrepreneurial ventures
Enterprises that are stated above have some similarities herewith differentiation. This can
be understand by following description (Burns, 2016).
Objectives: The thing which differentiates an enterprise with other ventures is aim of
small corporations. All small business ventures want to be stable in marketplace in terms of
finance and creation of positive image in the eyes of customers. Venturer want to be state in
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order to cater their family member's need along with holding a strong position than rivals at
marketplace for longer period of time. Apart from this larger corporations are those who can
produce inventive goods that are able in fulfilling consumer's need at correct time when it will
give best satisfaction to them. Social enterprises are those who want to build an appropriate
society so like this they do not need larger amount of staff.
Value Creation: Improvisation in ventures are necessary in order to gain strong brand
image as well as goodwill at marketplace. When enterprise want to develop their value and status
at marketplace they consider all social affiliation. On the other hand fundamental purpose of
these ventures are different as they want to improve social life of individuals. For completion of
basic goal small ventures produce effective and better quality goods for their customers. This
will be resultant into higher profit and returns (Storey, 2016).
Mindset: Every person possess some characteristics that makes them different from
others and mindset is one of these characteristics. Mindset is distinct from others in terms of
values, beliefs, attitudes and many more and these sort of elements affect execution of working
of individuals who are running business entities. There are two types of entrepreneurs one kind is
want to make many on the other hand second one wants to serve society in order to improvise
their living standards.
Channels of Marketing: An organisation does not be popular without proper marketing
efforts. These promotion actions must be in good manner as they are responsible for making
enterprise able catching more attention by customers. This increased attention will further
increases market share and goodwill and brand image. For this marketing channels department
uses some tools like social media, television advertisement etc.
Employment Generation: There are some enterprises which provide opportunities to
people related to occupation which helps nation to diminish poverty line and in addition it also
helpful in maintaining living standards. There are some tools and methodologies that enable an
entrepreneur in hitting all targets within limited period of time without any flaws in working.
There are some similarities and differences that are stated as beneath:
Diverse sorts of ventures Similarities Differences
Small and social
entrepreneurial
They works in a small sized
locality. These are to be start
Main differentiation is that
they work in multiple
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for their personal purposes like
fulfilment of family
requirements that are
increasing day to day.
conditions. In small scale
items are made with unique
ideas like they use material
which they are using routine
activities.
Large and scalable
entrepreneurial
They covers a wide range of
locations and numerous
number of clients of
population.
Substantial entrepreneurial
concentration is to keep their
business running at
marketplace in industry for the
long time.
In recent time firms wants to
be famous and they use
different tools of marketing for
fulfilling this need.
TASK 2
P3 Relevant data to understand impact of small business on economy
Small business enterprises are having a prominent contribution in growth of country's
economy. As per a report that published in UK, there are more than 5 million ventures that are
conducting their business operations at small scale. Country's 85% income is a share of small
and moderate kind of firms. This action is an improvement and advancement in country's as well
as venture' growth.
Along with this, these sort of patterns will serve many type of conditions in which
growing employment opportunities are present for people who are living at place. Consequently,
population can increase their living standards (Schaper and et. al., 2014).
Approx 67 % of total population are occupied in small and medium firms. Above data
shows that these sort of enterprises are much profitable for individuals and country as well.
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In current time these firms are increasing rapidly. This has been evaluated that 6 %
success of economy of UK are because of small scale enterprises. Turnover of little sized
organizations are 2.2 trillion euros that is same with private concerns.
Above discussed data are showing that growth and advancement of country depends upon
growth of small scale organizations. These are main cause of economy's success and stability.
These sort of ventures are contributing large amount in nation's income and profits. Other than
this there are several laws and legislations are build by Govt. which is helpful in developing
status of firm in country. These kind of organisation are able in creating employment
opportunities for young individuals of nation. With assistance of this nation is able in reducing
rate of unemployment and increases living standards.
Illustration 1: Employment in Small Businesses
(Source: Gilfillan, 2015)
P4 Contribution of small businesses and start ups on social growth
Success of society is related with development of an individual apart from gaining
financial benefits that are generating by small ventures. It is required for people that they observe
this kind of affiliation. Basically small and moderate associations are providing advancement and
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development of society this action then hikes employment opportunities and reduces rate of
unemployment along with poverty (Baum, Frese and Baron, 2014). Consequently population can
improvise their standard of living. It is required from a firm that it must produce high quality
goods and services in order to serve peoples. This action will lead them in grabbing lots of
attention of people that will be resultant into improved position of firm in industry in which they
are conducting their business operations. It works as an inspiration for them so entrepreneur can
use latest tool into production operations. Below are some benefits that is related with
contribution:
Employment: Lots of earning opportunities are providing by small scale firms in country
for young individuals whom are able in working effectively and efficiently because these persons
are those who got job as per their capabilities, skills, knowledge and talents along with
specialized know-how in a particular field. This is further reduces poverty by increasing living
standards of people. In a research it was measured that approximately 89% persons got the job in
small scale ventures. This improvised rate of employment is good for health of nation's economy
(Bhachu, 2017).
Living Standards of people: It is compulsory for venturers that they grab all opportunities
as it will lead them in enhancing market share of company in industry. At present time it is clear
that in order to gain more benefits and profits venturer has to use some latest and innovative
tools and methodologies. With assistance of this individuals can improve their living standards
that at last will affect country's success and image positively.
Regional Development: There are some associations that are set up in developed areas
which are generating unequal development opportunities for nation. Many enterprises are set up
in those areas which are not properly developed and does not have sufficient options which can
grow a company. So to enhance opportunities over there some facilities must be started before
establishments of venture. Installing these facilities will cater basic need of peoples who are
living their.
Exports: Small scale firms can make available their products and services into foreign
markets to promote their organisation as this action will further fulfil need of new potential
customers. With assistance of this, entrepreneur can complete need of new clients after meeting
demands of domestic and local consumers. Action of being diversified will lead in gaining more
foreign currency by selling product or services. Apart from this. Venture will be able in securing
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their presence at international marketplace by offering new and improved goods and services.
But for transporting their products in other region they need strong finance to purchase advanced
convince methods.
Community Development: Every kind of businesses whether small or big are able in
fulfilling society's demand by conducting their activities. This development can be obtain by
establishing facilities like universities, hospitals with proper skilled staff who are able in doing
their task efficiently. Employees must do their tasks and actions with efficiency so that they
could utilise all resources in optimised manner to serve society with extraordinary quality
services and products to meet desires of pupil with full satisfaction (Bruton and et. al., 2015).
TASK 3
P5 Traits and skills of successful entrepreneurs
It is required from entrepreneurs that they posses some skills as well as traits so that they
should be able in conducting their task and duties in best profitable way. This action aid them in
their development and advancement of skills and virtue. There are some kind of characteristics
that must possess by them to be an efficient businessman. Some of these are described below:
Passionate – A person need to be passionate for his business as it is required to make
enterprise successful. This attribute of personality aids person in attaining all targets in coveted
time duration. If a venturer is not serious and passionate about his work then he can not secure a
remarkable position in marketplace. It shows their hard work towards their concern (Glaeser,
Kerr and Kerr, 2015).
Optimistic: A person need to be positive and enthusiastic related to their work and task
as well as he must be cheerful in his view, ideas and thoughts. Seldom a condition arises in
which business man has to ask some questions with himself. It is must for them that they has to
be positive not only in good condition but also in opposite circumstances also. This kind of
attitude aids entrepreneur in getting higher earnings.
Confidence: A person who is confident can complete his task in proficient manner. On
the other hand over confidence can create issues and problems for him because this is a flaw of
personality and reduces work execution capacity of a person. It is not easy to run a business in
most feasible manner in industry. It is a most important virtue that a person has to build in
themselves.
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Thinker: An entrepreneur must be a thinker because he has to think uniquely in order to
develop new ideas for starting their enterprises to serve clients with distinct goods and services
to cater their demands with full satisfaction. By a strange and unique thought venturer can grab
attention of numerous people towards products and services.
It is compulsory for a person to have some qualities and talents in their personalities
because these abilities are necessary for meeting all demands and hit objectives in relevant time.
If individual has some characteristics then this will aid them in ensuring their survival for longer
period of time at marketplace by taking competitive advantage (Bae and et. al., 2014) (Fayolle
and Gailly, 2015).
There are some specific virtues that an entrepreneur has to build and these talents are
listed below:
Communication - Management must inform all employees about their goals and
enterprise's mission and vision. Personnel should have capabilities to make connection with each
other so that they could share their ideas, thoughts and opinions. If manager of venture informs
about outcomes that they want to gain to their employees so that worker can make their goals
and can set achievement targets to complete all expectations of their seniors. Managers can
utilize emails and websites to keep their manpower updated with all sort of informations.
Decision-making - It is a duty of administrators that they utilize some tool to obtain
opportunities that are valuable in assuring a prominent place in industry by making decisions
regarding production of goods and services. Executives must take care their financial resources
because it can be utilized in proper manner by putting them into correct activities. This kind of
actions brings lot of growth chances into corporation and by completing all objectives in limited
time. For making right decision to put money in operations spearhead can formulate and
implement some strategies that guides workforce in doing their task with full efficiency
(Davidsson, 2015).
Leadership - It is an ability of getting task done by grabbing someone else's efforts and
time. Manager could not do all task from his hand so he need some person with specialized
abilities who can complete all allotted actions in framed time. To meet this requirement, a
manager must be a leader only because of this ability he will be able in making his venture
successful. With help of leadership qualities business man can achieve his vision which he set at
starting.
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Time Management – Executives should associate a time frame with targets so that every
order could be achieved on time. With aid of this action people can complete their task in allotted
time which is set up by seniors. This sort of action helps in improving functionalities of
individual and organisation both. Time management is a skill by which entrepreneurs can keep
safe their place in industry by giving tough competition business rivals. This action is able in
improvising productivity as all products are being manufactured in lesser time duration.
P6 Aspects of Entrepreneurial Personality
An individual's personality is what in a manner in which he/she behaves. This aids in
identifying which kind of work he can do by how much efficiency. To make this thought
understand there is a model that comprises five elements into it. It is propounded for making
affect on motivation along with mindset. Components that are associated with this are elaborated
below:
Extraversion: Individual who come in this heading are those persons whom have
enthusiasm and energy in order to complete their task in company. This sort of people can easily
share their feelings, ideas, thoughts and information with others. Whit this virtue individual feels
self motivated and completes their task with full interest and enthusiasm. People with this trait
can achieve their targets in limited time. If an entrepreneur thinks with broad mind then he will
set up a problem solving environment in his enterprise and make his juniors free to come and
share their problems and issues.
Agreeableness: This sort of behaviour is helpful in making workforce motivated and
enthusiastic related to their actions that are allotted to them. If owner of enterprise is cooperative
and trust worthy then he can create unionism among employees that builds a cooperative
environment at workplace. This unionism can inspires employees to work better than other by
providing them a healthy competitive environment that is must for attaining targets in time when
it could make customer satisfy with fullest.
Conscientiousness: If business man are possessing this kind of ability then they are able
in creating an environment where they can make able their manpower to pay attention on their
duties and operations. With assistance of this ability superiors can get complete all duties and
activities by taking help of his employees. This attribute helps in utilizing all resource in most
feasible manner.
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Emotional Stability: With this virtue executives can deal with complex situations in best
profitable manner. By staying calm and composed entrepreneur can set an example in front of
workers so they should also work in all conditions with same energy. If employers have a good
bond with employees then they can encourage them so that they generate more profitability for
association. So if seniors n ever get angry upon their juniors then executives will remain a part of
corporation.
Openness to Experience: Administration must be ready for accepting change which are
occurring in external environment. Application of new and improved technology will help them
in gaining competitive advantages at marketplace in industry. Addition of innovative
methodologies improvises productivity of employees as well as enterprise (Ács, Autio and Szerb,
2014).
TASK 4
P7 Ways in which background and experience hinder and foster entrepreneurship
Both background and experience affect attributes of a person either directly or indirectly.
Intrinsic and extrinsic abilities of a personnel plays a vital role in improvement of a person's
personality which helps him in growing as a businessman. There are lot of points and aspects
that affect a business man's personal life and these factors are schools, family, friends etc. School
is helpful in to teaching the ways in which how an individual can give respect to others in
society. This kind of behaviour helps enterprise in building a prominent image in the eyes of
customers. Entrepreneurship is set on top priority as a subject and practical knowledge in various
countries. It is an essential responsibility of other that they should build some employment
opportunities for living beings of society.
Background is helpful in getting and collecting knowledge and info in any format. This
brings efficiencies and effectiveness in accomplishing operations. With required know-how an
entrepreneur can not complete his task in set time frame (Gupta, Chiles and McMullen, 2016).
For instance: Richard Branson who belongs to a small community have founded an
enterprise named as Virgin Atlantic. He is not that much qualified that he can run a business
entity but he never be framed in critical and opposite situation and was been successful in
establishing a small scale e corporation. But now he is having approximately 350 employees in
his association.
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Experience is helpful in collecting info and making decisions on the basis of this. It
works as a motivation for employees and employer as well.
CONCLUSION
Above assignment is based on qualities and attributes which make a person entrepreneur.
An entrepreneur is a person who runs an enterprise in country. With help of this entrepreneurial
capabilities help workers in completing their task in innovative manner so that they could attain
all targets in limited period of time. Enterprises are having larger contribution in growth and
stabilities of country's economy. By producing improved quality goods and services with unique
attribute company can grab attention of numerous people. This activity are able in creating
strong customer base for enterprise.
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REFERENCES
Books & Journals
Ács, Z. J., Autio, E. and Szerb, L., 2014. National systems of entrepreneurship: Measurement
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. eds., 2014. The psychology of entrepreneurship.
Psychology Press.
Bhachu, P. ed., 2017. Immigration and entrepreneurship: culture, capital, and ethnic networks.
Routledge.
Bruton, G. and et. al., 2015. New financial alternatives in seeding entrepreneurship:
Microfinance, crowdfunding, and peer‐to‐peer innovations. Entrepreneurship
Theory and Practice. 39(1). pp.9-26.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Davidsson, P., 2015. Entrepreneurial opportunities and the entrepreneurship nexus: A re-
conceptualization. Journal of Business Venturing. 30(5). pp.674-695.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Fayolle, A. and Gailly, B., 2015. The impact of entrepreneurship education on entrepreneurial
attitudes and intention: Hysteresis and persistence. Journal of Small Business
Management. 53(1). pp.75-93.
Glaeser, E. L., Kerr, S. P. and Kerr, W. R., 2015. Entrepreneurship and urban growth: An
empirical assessment with historical mines. Review of Economics and Statistics.
97(2). pp.498-520.
Gupta, V. K., Chiles, T. H. and McMullen, J. S., 2016. A process perspective on evaluating and
conducting effectual entrepreneurship research. Academy of Management Review.
41(3). pp.540-544.
Kirzner, I. M., 2015. Competition and entrepreneurship. University of Chicago press.
Kuratko, D. F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Schaper, M. T. and et. al., 2014. Entrepreneurship and small business.
Storey, D. J. ed., 2016. Entrepreneurship and new firm. Routledge.
Online:
Gilfillan. G., 2015. Small business employment. [Online]. Available through:
<https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/
ParliamentaryLibrary/pubs/rp/rp1516/Employ>.
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