Entrepreneurship: Theory and Practice

The assignment explores key concepts in entrepreneurship, including its definition, contextualization, challenges and opportunities, role of public procurement, impact of business training, and considerations for female entrepreneurs. It delves into the relationship between human capital, innovation, internationalization, and sustainable entrepreneurship.

ENTREPRENEURSHIP

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Examine different types of entrepreneurial ventures.............................................................1
P2 Similarities and Differences between Entrepreneurial Ventures...........................................2
TASK 2............................................................................................................................................4
P3 Impact of micro and small businesses on the economy.........................................................4
P4 Importance of contribution by SME towards the society and Economy...............................7
P5 Determining the characteristics, traits and skills of two successful entrepreneurs................8
P6 Entrepreneurial personality striking their state of mind and motivation...............................9
TASK 3..........................................................................................................................................10
P7 Experience and background can surrogate and obstruct entrepreneurship..........................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
In a market place, when the process of framing, launching and running a new business
process is said to be as entrepreneurship. This is basically a small business at the time it is
started. The people who starts these kinds of business or start ups are called entrepreneurs. There
are various elements which are present in entrepreneur business from the point of view of
economics and they are resources, assets and capital which will be crucial elements for growth of
business firm ( Schaper ed., 2016). There is a great saying that the higher the risk will be, the
more profit will in occurred. In this report, there are certain crucial things which will be
discussed like the range of ventures which are considered as entrepreneurial. Apart from that
there are various impacts of small business on the social and economical factors which will be
briefed along with with key aspects of an entrepreneurial mindset. Beside this, various
environment are present in marketplace which can hamper the entrepreneur elements.
TASK 1
P1 Examine different types of entrepreneurial ventures
While starting up a new business there are four kinds of entrepreneur venture in which a
business can be segmented and those are described below: Small Business Entrepreneurship: It is a kind of segment in which the large number of
business are started and even every kind of business who are large in scale once was
started in small scale business. In today's scenario, large number of entrepreneur are
focusing on launching new start ups with new innovative ideas. There are 6.3 million
business which are working under UK marketplace and has acquired marketplace around
95% and thus it lead to reduce the unemployment rate upto 42% of all non governmental
workers. Small business enterprise mainly consist of grocery stores, agencies, carpenters,
small stores in petrol pump and many others. This is basically done with the motive of
getting secured financially and this is the security typology of business as the motive is
secured and achieved. This kind of business basically helps out in getting financially
secured and earn livelihood for family and provide better standard of living like better
education facilities, good clothes, home to live and other basic needs (Berglund,
Johannisson and Schwartz, 2012).

 Scalable Start up Entrepreneurship: This kind of entrepreneurship is started up with
different motive and that is bringing good change in economy and provide elements to
development. This requires high fund for starting up business and thus for that investors
are required which have same vision just like entrepreneur got. After getting financial
investors, it is required to have high skilled workers who can work on same vision and
acquire objectives. Having angel investors and high skilled workers will boost the
confidence level in entrepreneur and will improve morale level. There are various other
elements which are involved which aids company to attain the purpose and motive and
that are high focus on aims and objectives and extracting skills for development on rapid
speed. Large scale Entrepreneurship: As per the name it is cleared that it is a large scale
business which requires high investment and fund raising. They have facility to adopt
new and latest technology and various tools and techniques which can enhance the
productivity and profitability. Several techniques which can be used like analysing
competitor pattern of growing in market, product modification and development. Large
scale company follows the guideline in which the customer can be attracted in more
manner. They have a department who has duty towards analysation of market in deep and
thus determining the actual needs and wants of customers and then providing them such
products and services which can provide them high satisfaction level. This kind of
entrepreneurship mainly focus on gaining sustainability which aids them to obtain growth
and success which is acquiring more customers and large market share (What is
Entrepreneurship?. 2015.).
 Social Entrepreneurship: This kind of entrepreneurship by its name do the same and that
is providing products and services which can fulfil the needs and wants of social factors.
Entrepreneur basically has the motive of making economy a better place and provide
development which can uphold the standard of people living in an sociality. This kind of
entrepreneurship is basically done with purpose of non profit or very low profit. With this
entrepreneurship style the typology which can be linked with this is mindset towards
growth and success of firm which enables people who are living in a society.

P2 Similarities and Differences between Entrepreneurial Ventures
Particular types on which similarity and differences will be evaluated and they arw
described as under:
Lifestyle Ventures or the business Similarities1. Innovative idea is the basic element
which helps business to get started and
attain achievement.2. For obtaining expected outcomes, it is
needed to recruit high quality and
skilled workers who can complete
tasks and activities in effectual
manner.3. Obtaining success and growth by
capturing number of customers in
market place (George and Bock,
2011).
Serial Entrepreneurs ventures similarities
1. These kind of entrepreneurs launch the
start ups by the help of innovative
mission and vision so that attainment
can be seen.
2. Employees are required who have
experience and are high skilled so that
they can attain tasks and objectives.
3. Achieving goals and objectives
through capturing large number of
customers can be said as another
similarity.
Differences
1. Start up is done in the market place
with the purpose of lifestyle developing
and also develop social and economical
factors.
2. Long time running and enhancing
profitability ratio is the main purpose
area and that can be done effectively by
keeping power in single hand.
Differences
1. This is basically run with different aim
and purpose which is making company
grow and transferring power to some
other person.
2. Roles and responsibilities which are
transferred to some other person as it is
not being handled for a long period of
time specially after growth and success
and the person who have transferred
shifts to another innovative project.
Female Entrepreneur Business Male Entrepreneur Business

Similarities1. Female entrepreneurs mainly focus on
gaining growth and success along with
profitability ratio while starting up a
business.2. As per the trends and demands of
customers, products and services can be
provided for higher satisfaction.3. Gaining competitive advantage and
capturing number of customers is the
main focus criteria for entrepreneurs
(Onetti and et. al., 2012).
Similarities
1. Start up is being launched with
common motive and that is gaining
profit along with growth and success
just like female entrepreneurs.
2. Analysing and determination of actual
desires in product development helps to
modify product and attract new
customers along with existing customer
satisfaction.
3. They desire same just like female
entrepreneur regarding large market
share.
Differences
 They got lower confidence and
capabilities as compared to male
entrepreneur while framing up
business.
 Due to their experience from life they
have high decision skills and their
decisions can be much more effective
as well.
 They can create much more effective
communication skills as compared to
male entrepreneurs.
Differences
 High confidence and capabilities while
formulating up new start up as
compared to female entrepreneurs.
 When it comes to resolve issues and
take better decision, sometimes they
can not be effective in nature and
create harmony (Martin, McNally and
Kay, 2013).
 Communication skill can be launched.
TASK 2
P3 Impact of micro and small businesses on the economy
In the development of country, the vital role is being played by the small business
enterprise as they have acquired large number of market share and also Govt. of respective

country has major concern towards the small business enterprise as they have various positive
and negative impacts towards the economy and social factors and those impacts can be seen as
GDP rate, Inflation, Export and Import, unemployed and many others.
On the economic condition of UK, impacts are done via various ways like in 2016 there
were around 6.4 million business which were operating under marketplace as small scale
business. Approx 94% of business are operating under small scale and thus contributing growth
and success towards development. Employment rate of UK in current is about 39% which is
provided by small scale business which in turn aids in creating turnover of 23%. In current there
are approx 7 million business which is just double of the year 2000 recorded.
SME can not be classified under any kind of index as there is no proper classification or any
other index in which it can be stated (George and Bock, 2011). But regarding a business
enterprise there are some ways through which proper indexation can be conducted but due the
complexity of elements and to resolve basic requirement of determination are described below: Micro Business: This kind of business is very small in nature and the main motive of this
kind of business is to earn livelihood. There is basically no employee as it is majorly
conducted by single body or it can have maximum 2-3 staff members. Their turnover is
approx 2 million dollars. The main motive behind operating business is to get financial
security and basic needs can be fulfilled and generate revenue as much they can within
boundaries set. Micro business is majorly sole proprietorship as it does not require much
capital as compared to big business. They can be like shops, stores, workshops, gas
station, cafe and many others. The funds are arranged either from personal saving or loan
from bank or both. Small Business: This kind of business is small in nature but as compared to micro it is
large in that aspect and that is the main difference between micro and small level
business. It does not have much staff members like they have approx 20-30 employees
and their turnover is approx 10 million dollars. This kind of business mainly ficus on
analysing the market and thus determining the actual needs and wants of customers and
after that providing them products and services as per the their demands and therefore
satisfying them in effectual manner (Akehurst, Simarro and Mas‐Tur, 2012). This can
involve partnership if the funds required can not be wholly arranged by single person. So

this totally depends upon the funds raise which states that whether it will be sole
proprietorship or it will be partnership.
 Medium Business: this kind of business is medium sized and large from the aspect of
small and micro level business. This type of start up have less then 200 employees and
their turnover is approx 50 million dollars. The main focus of this kind is generating
revenue along with contribution done in social and economical factors. This kind of
business requires partnership as single person can not arrange that kind of funds.
(Source: Impacts on Various Area, 2017)
There are particular sections of the economy which will effect SME'S: Employment: small business enterprise mainly compiles of 91% of the business market
place which can provide employment to most of non governmental workers. This in turn
creates a platform of opportunities for the one who are unemployed reducing the rates of
unemployed people and thus developing the society and economy. Foreign Direct Investment: FDI is basically an investment done by a company with the
purpose of expanding their business into new country and acquiring market share just like

other competitive companies (Karlan and Valdivia, 2011). This aids the country in which
investment is done and helps in development.
 Backward Areas: By providing employment to the people who live in backward class of
society so that they can uplift their standard of living and can match with the other caste
and entire society. This will bring inner confidence to face the world and secure their
living amongst all and get education so that they can stand in front of entire population.
P4 Importance of contribution by SME towards the society and Economy
Exit of United kingdom from the European trade union is basically known as Brexit. That
was done on 23rd June, 2016 and it was decided by voting and 52% of electorate voted on exiting
of United Kingdom. British Govt. invoked article 50 of the Treaty on the European Union on 29th
March 2017 so the UK will be exit trade on 29th March, 2019 (Wiklund and et. al., 2011). There
are main 7 parts which threats the entire EU and those are described below:
 vanishing of most of funding
 Chances of emerging skills gap
 nature of collaboration does not believe on limits
 scientists are relying majorly on Cross-EU logistics
 EU law is protecting environment
 Impartiality is at higher risk
 headquarters will be shifted
Distinguishing between small business and start up are represented below:
Basis Start ups Small Business
Outlook and growth rate Main focus is done on
adopting fast growth and then
scaling it. Techniques and
latest technology is the reason
behind fast growth.
Start ups are more limited as
compared to start ups and thus
from the above statement it
can be said that small business
has low rate and gaining
success.
Finance Start up generally does not
have enough funding which
This kind of business are often
started without looking for

can be raised for growth and
success (McGowan and et. al.,
2012). So they basically look
out for the funding until they
have their own resources to do
so.
investors as they involve low
funds which are majorly
arranged by personal savings
or loan from bank.
Nature of the Idea Mainly products and services
are being developed in which
no brand I shown or if they
brand them with company
name then they are sold at
lower level at initial levels.
Traditional products and
services are being provided
and this is the main criteria on
which entire small business is
operated.
Both starts up and small business mainly works on various direction and different aims and
objectives yet they share a common goal and that is gaining profit graph and expansion in an
economy. This can be stated as highly essential to other one as start up is basically done with the
motive of earning livelihood and getting financially secured. This helps in both aspect like first it
helps out in contribution towards society and secondly it also reduces the rate of unemployment
and will enhance education and standard of living (Welter, 2011). Reason behind major market
share of the small scale business and start ups is that now-er days people are getting motivated
towards launching up of their own start ups and thus earning and gaining revenue through it.
This in turn has shown positive impact on the economical sector of country as they have
provided more employment and motivate towards upliftment of standard of living. Therefore
these kinds of changes can be provided to the country and development towards social and
economical factors.
P5 Determining the characteristics, traits and skills of two successful
entrepreneurs
There are two entrepreneurs who became successful by starting from
scratch and they are Bill gates and Steve Jobs which are two successful
entrepreneurs of their time. They started their business when nobody had

an idea, they forecasted the demands and thus started from one room and
after time they became successful and now they are leading competition in
their respective field (Blackburn, Hart and Wainwright, 2013). They have some
features, skills and traits which are as follows: Hard Workers: Success ratio of both the entrepreneurs states their
hard-work and they have been doing since long time towards their
company. They gave all their resources and time and thus made the
vision clear. Risk Takers: It is said that “more the risk, more will b profit” and thus
that has been applied by both entrepreneurs as they gave all their
time and resources they had and shifted their career towards this
sector. Both faced many risks and covered them by providing various
tools and techniques and achieved the outcomes which they desire. Money Management: they had limited resources and limited funds
which they had to use in such way that best possible outcomes can be
achieved. So they utilised in better manner and thus attained growth
and success of start up (Preuss, 2011). Successful Planner: plans and strategies made by them showed their
colours and thus they were able to gain productivity, growth and
profit ratio and many others. They forecasted the futuristic demands
and therefore those helped to gain the uttermost position in market
place along with the competitive advantage.
Skills and Traits of both Entrepreneurs: Determination: On the basis of their business and operations, both
entrepreneurs can not be judged but one thing which can be said that
both of them faced many situations and challenges but they kept
resolving them and never gave up and now they are leading business
tycoon of their industry. Thus it can be stated that high determination
is there for attainment of visions. Communication Skills: This is one of the significant skills which is
required to be present so that sharing of information along with the

management can be regulated. This allows staff members to have
effective relationship with the higher authority as they can share their
issues (Fassin, Van Rossem and Buelens, 2011).
 Opportunities Seeker: Dealing with every kind of situation made
them dynamic in nature and and thus making them optimistic in
nature and now they can forecast every opportunity and grab it.
Both of them became successful business entrepreneur in UK and set
themselves as example to others to whom they can be utilised as mentor
and thus apply their focus part to attain aims and objectives and achieve
growth.
P6 Entrepreneurial personality striking their state of mind and motivation
Recruitment and placing employees which is done by HR managers
and for that they often use OCEAN approach which allows them to allot
tasks as per the skills and capabilities which in turn aids in enhancing
personal and professional development. OCEAN can be submitted as
Openness, Conscientiousness, Extroversion, Agreeableness and Neuroticism
and they are described below: Openness: In this kind of approach, while recruiting employee, HR manager has to look
out for the curiosity for learning new things and get the new experience so that they can
get the touch of new environment. This makes them create comfort environment so that
desired aims and objectives can be attained in effective manner. Conscientiousness: This kind of approach is used by HR managers to seek out that
whether employee has alert mind or not and can see things the way it is expected from
him\her. This kind of technique help them to have skilled worker who can grab
opportunity and create comfortable environment in the working environment (Neck and
Greene, 2011). Extroversion: Forecasting the future trends before planning so that effective measures
and strategies could be made so that company can gain obtain various benefits through it. Agreeableness: Creating friendly environment and cooperating among all the employees
is an capability which every HR managers seeks out so that less chances of issues and
conflict can be seen.

 Neuroticism: this is said to be emotional stability which lets an
entrepreneur to maintain healthy relationship among all the
employees.
TASK 3
P7 Experience and background can surrogate and obstruct
entrepreneurship
Being an entrepreneur, their journey of their professional life is not
easy due to many issues and problems in the day to day life. But still they
keep their focus on attainment of aims and objectives and feel motivated to
achieve them. From this it can be stated that background of an
entrepreneur will always hinder and foster their working idea so that their
sustainability can be possible and managed (Hatten, 2012).
A survey in UK has told that background of an entrepreneur has
always been motivation to the individuals in ascertaining each and every
objective in effectual manner and apply the vision in appropriate manner.
Rewards which an entrepreneur gets when they run business operations so
that they get successful implementation of idea and high generation of
revenue can be generated and thus competitive advantage can be gained.
These all are some elements which can motivate an individual and make
them work with all confidence.
There are certain drawbacks which hamper the growth and success of
an organisation and those barriers have to be managed by utilising effective
tools and techniques in appropriate manner. Basically most problems arrive
when there is implementation of new innovative idea and thus those hamper
the growth and development of the company.
Bill Gates and Steve Jobs are most successful entrepreneurs of all
time and they have been operating their company across the globe in almost
every country. Bill Gates the founder of Microsoft faced so many challenges
and gave him tag of college dropout but all these kind of issues did not let
his morale go down ( Mariotti and Glackin, 2014). Same goes with Steve jobs who

is founder of Apple faced many issues like he belonged from Muslim
community but later adopted by an American parents and thus disturbed his
mindset as well but it made him more stronger and thus went on his
successful path for being a successful entrepreneur.
Thus, every businessperson learn man things from these two famous
personalities as they already face so many issues and problems in their life
but focused on target and goal which really want to attain and did that.
CONCLUSION
From the above report, it can be concluded that entrepreneur is a
person who manufactures products and services by taking huge risk.
Various plans and strategies are being formulated in order to accomplish
the set targets within allocated time period. In this report, there are various
abilities like they can take risk and innovate new products or existing
product development and many other and that is what makes them unique
in nature.

REFERENCES
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Online
What is Entrepreneurship?. 2015. [Online]. Available through:
<http://www.businessnewsdaily.com/2642-entrepreneurship.html>.