Entrepreneurship: Characteristics, Impact on Economy, and Mindset

This document explores the range of venture types in entrepreneurship, assesses the impact of small businesses on the economy, and determines the key aspects of an entrepreneurial mindset. It discusses the characteristics, traits, and skills of successful entrepreneurs and their differentiation from other business managers. The document also examines the impact of small businesses on the economy and the role of fiscal and monetary policies. Additionally, it explores the different economic systems and their relevance to small businesses. Finally, it delves into the importance of motivation and business skills in entrepreneurship.

Entrepreneurship
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Entrepreneurship
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Contents
Introduction:..........................................................................................................................................4
Task 1....................................................................................................................................................5
LO1 explore and illustrate the range of venture types that might be considered entrepreneurial:......5
TASK 2.................................................................................................................................................9
LO2 assess the impact of small businesses on the economy..............................................................9
TASK 3...............................................................................................................................................12
LO3. Determine and assess the key aspects of an entrepreneurial mind-set....................................12
TASK 4...............................................................................................................................................16
LO4. Examine the different environments that foster or hinder entrepreneurship...........................16
References...........................................................................................................................................18
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Introduction:
Entrepreneur is a different type of business in the market. Entrepreneur means a person or
individual who systematize and operate a businesses, taking normal financial risks for
investment. Various type of entrepreneur in the global market. Generally entrepreneurs
known as risk takers. They are mainly deals with innovative ideas, products for the people.
Innovative business ideas, taking financial risks are the main characteristics of entrepreneurs.
Most of the entrepreneur businesses are collaborative or joint ventured. A successful
entrepreneur comes up with innovative idea or providing services to the customers.
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Task 1
LO1 explore and illustrate the range of venture types that might be considered
entrepreneurial:
P1. Carry out a mini research to examine different types of entrepreneurial ventures
and explained how they relate to the typology of entrepreneurial.
Various type of entrepreneurial ventured are t present in the field of entrepreneurship.
Different types of organisations are there with various purposes and structure. According to
the size of the business structure different types of entrepreneur ventures are described-
Sole trader: it is a kind of business organisation operate by the individual business man. They
are the one and only owner and director of the business (Addison, Blackburn and Cotti, 2010). In
UK sole trading entrepreneur business is very much common and famous. In this type of
venture business decision are taken by the director as well as the owner.
Public limited company: it is also another type of entrepreneur venture business. Here the
business operated by more than one people. Public limited companiesshowed a relationship
chain among the top levelled employees and shareholders. These businesses are totally
separated and open for all type of people. Shareholders are less able to take the business
decisions. This type of business are mainly private sectors.
Partnership: partnership entrepreneurial ventured means a small business own two owners. In
case of decision making they have equal rights. Total profit is divided within two business
partners. All the business related information, share etc. by them. There is a legal agreement
signed by the both business partner (Addison, Blackburn and Cotti, 2010).
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Franchise entrepreneurial ventures: in the franchise entrepreneurial venture private
entrepreneurs buy the civil rights to launch and run a place of greater enterprise. A legal
contractual agreement is signed with the franchise company. A compassionate approaches
marked between the organisation and the individual.
Theterm small business idea refer as the utilisation of the idea of profiting being famous.
Entrepreneurial ventures planning are more apprehensive with amenities of a small business
which can be accessible for money. Small business planning is the biggest ides to create an
entrepreneurial ventures. A thoughtful person has the ability to start up a successful
business.a complimentary business consists of applicable concept, advancement, creativity,
and profitablein excess of the flawless basic curiosity of small entrepreneurial venture.
Execution of a thought with uniqueness is the necessity of a small business concept. The most
innovative idea is application of various strategies in the global market to compete with the
rival and a specific fame (Addison, Blackburn and Cotti, 2010). Proper execution of the
strategies by the organisation is very much important for the entrepreneurial ventures. Unique
techniques should be used in the entrepreneurial ventures to increase the infrastructure of the
organisation.
Business scope: in another aspect business scope is an extended concept which can produce
a stable payment scale in small entrepreneurial venture (Peterson, 2009). The scope of small
business globally identified by fulfilling some criteria:
It must take a short stage of liability risks.
It must take elevated gross edges.
The start-up resources attempt must be reasonable and within the amount of what an
entrepreneur can extend.
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It must be a achievements back the major quantity earnings among twelve to thirty-six
month.
A business person should be too much attentive to achieve the business goals.
There is an expected salary scale for small entrepreneur venture.
Physical energy of a small entrepreneurship venture employee should be high.
Continuing up gradation of the information should be high (Peterson, 2009).
There is a crucial dissimilarity between the business scope and business person. That can
offer or deliver the opportunities to the specific individuals.
P2. As part of your research investigation, explore the similarities and differences
between entrepreneurial ventures.
Starting up of an entrepreneurial venture business is an appealing and imaginably authentic
panorama. A small entrepreneurial venture may suffer from shakiness and threat. In case of
entrepreneurial venture is the commencement of any ones particular business with the limit of
attachment. There is a suggestion along with the small business management, within 2 years
7 new administration last out of 10 (FELIX and BOWERS, 2005).
Similarities: one of the main reason when someone starting a business is to get individuals. In
addition this expert advantages gain by the organisation. An entrepreneur has the able to
show the variety in the workplaces through efficiency in the work. Versatility is the key to
address any organisation’s introduction. In addition employees are very much free from the
obstacles of being experience while working with the other company (FELIX and BOWERS,
2005). Experience, job positioning doesn’t matter for the new organisation for an employee.
In the new workplace employee get that opportunity to explore his or her job position through
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solving and performing well. An article of 2009 circulated in United Kingdom a type of
analysis showed that business persons were offered four conditions that are very much liable
to being investors than common or ordinary manager (Lin, Lee and Gibbs, 2008).
Differences: to make the business venture more strong there is a necessity of the interest (Lin,
Lee and Gibbs, 2008). Fixation of the hours by the entrepreneur for modifying himself or
herself is the attempt to take the organisation to the higher. In a perfect working atmosphere
an entrepreneur helped by understanding the outcome such as positive or negative (Pestle,
2014). An entrepreneur can show his or her effectiveness in group by executing his or her
plan. An entrepreneur needs to create components as well as the respect for work help him or
her to get an advantageous position in the organisation. Work efficiency and manner of
respect the work helps to grow the future in an organisation. Those are the differences
between the entrepreneurial ventures (Lin, Lee and Gibbs, 2008).
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TASK 2
LO2 assess the impact of small businesses on the economy
P3 assess the interpret relevant data and statistics in your mini- research, to illustrate
how micro and small businesses impact on the economy.
There are various types of economic structure in accepted by the nations for make use of
their property and resources. That process offered an extraordinary system to supply the
needed resources of an organisation. There are 3v economic models these are-
Free economic system: free market economy is another type of economic model. it is divided
in to occupation and creation of services. Market co-ordinators has the ability to allow the
gadgets to create the commodities (Pestle, 2014). The major factors of the free economic
system are the supply, request. These key factors control the cost in free economic system.
Chinese economy utilise this, free economy from 1970s. Recent days it developed into the
greatest economy on the global market (FELIX and BOWERS, 2005).
Arranged economy system: it is a type of economy in the global market. This type of
economy has the power to control the generation, and utilisation, dissemination etc. Planned
economy placed the economical framework through arranging or manipulating by the
nation’s legislation (FELIX and BOWERS, 2005).
Mixed economy system: mixed economy is placed between the free economy and arranged
economy system. This is a type of economy which helped to adjust the social objectives and
individual activities. Mixed economy is open for all type of business sectors such as private
and segments. Administrative department of the nations prefer this type of economy in the
global market (Fuentes, 2013). Mixed economic system observed in Indonesia, Thailand,
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Singapore and as well as in India. Most helpful economic system is mixed economic system
preferred by most of the business icons all over the globe (Fuentes, 2013).
P4 explain how important small businesses and business start-ups will contribute to the
growth of the social economy Brexit.
Impact of fiscal and monetary policy:
Fiscal policy: occasionally government confirm the stages of utilization to force and showing
a particular economy of the state that is known as fiscal policy of economy. Fiscal policy
analyse that how the financial backing is utilised by the organisation to beat the economic
growth. Financial policy used as element of the few setting. Fiscal policy provides a way to
the economy of nation to counter the small business associations (Pestle, 2014).
Monetary policy: The source of the cash in around the country is termed as monetary policy.
Monetary policy maintained by illustrating the financial costs, altering different cash banks of
small business organisation. All these activities are ended by the national bank. Utilisation of
the financial policy is to maintain the cash level and rate to achieve the goals. These rates are
fixed by the administration of small business organisation.
In recent day’s lots of famous and successful small businesses engaged to rule the global
market. Particular behavioural approaches of persons or individuals are linked with the
various types of promotional elements (Pestle, 2014). The structure of the market is well
synchronised with this different behavioural approaches. Each business organisation should
be careful about the needs of the clients. If the clients are not satisfied by the services then the
organisation may face the huge loss in market. In other words client’s satisfaction is the
major motive of the business organisation. For any kind of business organisation customer
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necessity is the main concern. Through the use of advanced network business industries like
retail industries are able to fulfil the actual needs of their clients (Peterson, 2009).
Culminate rivalry: many reports are suggested that the market is consists of merchant’s
contribution for same items. In this market all the affiliations are suitable. There is no option
of remarkable product quality in this market.
Restraining infrastructure: this type of market includes individual merchant and a huge
number of buyers. Business persons utilise the promotional options like advertisement, web
marketing etc. for beat the competitors in the market. Various tactics and technologies are
used to meets the client’s needs (Peterson, 2009).
Oligopoly: this market consists of small businesses that are controlled or handled by the
business. Oligopoly type of market is sometimes consisting of two or more buyers and couple
of shippers of delivering times. Those shippers are hiring for delivering the desired items of
client’s (Lin, Lee and Gibbs, 2008).
Duopoly: in this type of market two business industries are present to take charge those
businesses. This type of market is known as duopoly market system. This type of business is
totally depending on either variety of items or the quality of the items. Those two existing
market are equally served their client’s with providing different types of products as well as
the best quality (Lin, Lee and Gibbs, 2008).
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TASK 3
LO3. Determine and assess the key aspects of an entrepreneurial mind-set
P5 Determine the characteristics, traits and skills of successful entrepreneurs, which
differentiate them from other business managers.
Thinking about own business is an amazing idea and being the head of the business is a
thrilling prospect. However, everyone cannot possess his own business or everybody cannot
achieve or gain his own business sector as he or she has no potentiality for developing a
business. But an entrepreneur has the potential by which he can make an effective business
and for doing the same, he must possess some characteristics to become a successful
entrepreneur. For becoming a prosperous entrepreneur, he should develop some personality
traits. There are some characteristics that should possess an entrepreneur to begin and
develop his own business (Ribeiro and Borba, 2016).
Excellent business skills: Entrepreneurs are basically much efficient to establish the internal
procedures, systems and processes that is important to operate a trade. They always focus on
sales of the product, cash flow and revenue for all times. Efficient entrepreneurs depend on
their business technique and planning, contacts and know-how. They are efficient by their
current talents for professional networks. One of the entrepreneurs has a type of efficiency,
experience and contacts that is different from the other entrepreneur in their business skills.
Motivation: entrepreneurs are optimistic, enthusiastic and future-oriented. They make belief
on their efficiency and they always keep preparation for intending to risk entrepreneur’s
resources for pursuing the profit. One of the entrepreneur possesses high energy level and the
other becomes sometime impatient. The entrepreneurs think always about their trade and they
develop the idea to increase their share in market (Ribeiro and Borba, 2016). The entrepreneurs
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need that kind of motivation power to achieve their goals effectively. But the managers may
not have that type of motivational power. As the managers always busy for focusing on their
authority’s order, they cannot motivate their employees always.
Versatility: the workers of an organization mainly depend on colleagues or staffs for
providing support or service. An entrepreneur may have started as a solopreneur when he has
to be on his own for a moment, as he has no initial for hiring a supportive staff but after that
he can hire a staff for providing him a mental pleasure (SUNG, 2004). When he makes his
business successful, then he can appoint bookkeeper, secretary, assistant secretary and so on
as per his need. The entrepreneurs always should keep in his mind that all the tasks of
different staffs should be done by him at the primary stage of his business. So, the
entrepreneurs should have the versatile quality like a genius where the managers of the
company may not have the same.
Persuasiveness and creativity: successful entrepreneurs possess the capacity of creativity to
identify and pursue the scopes, opportunities and goals. They are persistent and persuasive
both and they have the efficiency of strong selling their products all over the market. By these
effective process, they can promote their own business easily. When the managers may not
have these qualities like entrepreneurs as their working process is completely different from
the entrepreneurs
Risk tolerance: any entrepreneurial venture launching may be risky for the entrepreneurs. The
entrepreneurs can reduce their risks by researching thoroughly of their business concept,
market and industry. They can test their business idea at first on a small scale then they have
to apply on the real sector. But the managers have not faced this type of situation like a risky
condition, so, they are different in this purpose of the business.
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Vision: one of the main features of the entrepreneurs is vision, they possess the characteristic
by which they can decide how they carry on their business and in which process or way their
business should be carried forward. Their perception is the main feature for carrying on a
business successfully when this trait may not be present in the managers of the company.
P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial
motivation and mind-set.
An entrepreneurial technique is concerned with some factors by finding out that factors a
business idea may be evaluated. An entrepreneurial process can be described as the different
types of techniques by applying these techniques the entrepreneurs can establish a business or
another undertaking business. The entrepreneurs require creating some permanent
associations with speculators, clients, business contracts etc (Tuffery, 2011). There are
different types of entrepreneurial motivation techniques including with internal and
environmental factors.
Individual factors of entrepreneurial motivation and the entrepreneurs: a complicated
dynamic entrepreneurship plan is depended on different results of the various scholars.
Entrepreneurial intentions, development and evolution, opportunities search can be
influenced by individual mental conditions of the single entrepreneurs, cognitive
characteristics and social characteristics. Analysis from the entrepreneurial motivation
perspective, entrepreneurial inspiration was connected by social characteristic, psychological
characteristic, cognitive characteristic. The plan of entrepreneurial intentions have been
analysed from different perspectives of the every entrepreneur. Most of the experts
researched on entrepreneurial motivation theory in the past and they described
entrepreneurial motivation as the independent variables. The scholars explained the relations
between entrepreneurial behaviors and entrepreneurial motivation. But the others have
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explained about the relevance between entrepreneurial performance and entrepreneurial
motivation.
In psychological science, entrepreneurial intentions and entrepreneurial mmotivations are
different, both of them can be stated as an entrepreneurial driving force, aspirations and idea.
This model has described only about the entrepreneurial intentions from the individual
entrepreneurial outlook or perspective. Some scholars believed that the entrepreneurial
motivation is the outcome of environmental factors, resource management, management
skills, policy support, business culture, market conditions etc. have an effect on
entrepreneurial motivation. Some scholars thought that the individual factors including
skills , personality, background, values, training etc may affect the entrepreneurial intentions.
Hodgette and Kuratko has proposed a mode of entrepreneurial motivation which is now
generally accepted. This new model, explains about features of individual personality,
commercial and individual atmosphere on the result of individual entrepreneurial inspiration.
An expert said that an entrepreneurial motivation is based on environmental factors,
entrepreneurial personality and characteristics, business skills and the phases of business
development etc. He has made the division of entrepreneurial motivation in three dimensions,
those are: internal orientation, security orientation, achievement orientation. Then he
described these three orientations are influenced by environmental factors, enterprise
development and organizational skills etc. There are some differences between
entrepreneurial motivation and vision. But the phase of entrepreneurship is the main essence
and this phase is depended on social factors and individual factors of the dual impact.
Entrepreneurial motivation can judge the positivity of entrepreneurial planning (Tuffery,
2011).
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TASK 4
LO4. Examine the different environments that foster or hinder entrepreneurship
P7 Examine, using relevant examples obtained through your mini-research, how
background and experience can hinder or foster entrepreneurship:
There are different types of stakeholders like internal and external.
External stakeholders: they are included in providers, clients and speculators. They create an
impact on the organization, though they are not separated from it. They make direct
declaration with the customers or buyers, so they don't give any advance for their items or
services. The organizational development depends on the purchasers as they are the buyers of
the company products and this selling products make more profitable business for the
company.
Internal: a business can be carried forward by the assembly of excited enthusiastic, energetic,
committed individuals who are involved for maintaining quality, outcome and greatness of
the products. This type of quality may be found in every business organizations. For this
reason, the internal stakeholders consume a significant role for the business. That's why
everyone from them gets scope to develop or create productivity for the company. There are
different types of stakeholders who possess the various roles in the organization.
Employees: they are the main groups of the stakeholders and they gain different types of
work in the organization and confirm the greatness, quality of the product to the market
positively. Their objectives are: they can achieve job security by performing according to
their own talent and abilities (Tuffery, 2011).
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Customers: another important stakeholders are the customers. For them the company makes
and launches their product. So the selling process depends on the purchasing of the
consumers.
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