(PDF) The Impact of Entrepreneurship on Economic Growth

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 nations 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 an 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 mindset
of various entrepreneurs and analysis the characteristics, skills and motivational drivers of
successful entrepreneurs.
TASK A
1. Critical evaluation of various entrepreneurial ventures
Entrepreneurs are the individuals who has 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. Example 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.
 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. Example is Apple.
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 Social Entrepreneurship- These are the ventures whose main focus is to provide social
services to the individuals within the society and increases their standard of living.
Example is Cafe direct.
Typology of Entrepreneurship
Their 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.
 Managed growth firms- Major purpose of this type of firms is to to enhance their
profitability level by continuously providing innovative products.
Relation of the entrepreneurial ventures with their typologies
 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.
 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.
Scope, Development and Growth of Entrepreneurial Ventures
These various types of entrepreneurship ventures helps in the scope, development and
growth described as follows-
 Scope of large and scalable enterprises are high as these types of ventures provides
innovative products so as to earn maximum profits and meet the requirements of the
customer. This venture can attain maximum growth over a period of time as it offers
consumer offering according to their requirements.
 Scope of small and social entrepreneurial ventures are moderate as these types of
ventures provides customer products for the main purpose of earning their livelihood.
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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.
Differences and Similarities in Entrepreneurship ventures
Differences
Small Scale Enterprise Scalable Enterprise
 This type of entrepreneurial venture
provides basic necessities to the
customer and main focus is towards
earn their livelihood. It comes under the
corporate entrepreneurship(Chrisman
and et. al., 2012)
These types of ventures meets the social needs
of the customer by providing them welfare
facilities and upgrades their standard of living.
Similarities
 Al the entrepreneurship ventures such as small sized, large sized and scalable enterprises
are run for earning maximum profits so as to remain competitive.
 All the entrepreneurship ventures needs appropriate funds and takes finance from various
banks and financial intermediaries so as to conduct the business activities.
2. Impact of the business on national, international and social economy
With the growth of the small, medium enterprise, it has enhanced the growth of national
economy and contributed to the GDP of the country.
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 lss than 5
employees so as to conduct business activities in a proper manner.
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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 nations 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 helps the local economy by
providing employees with employment opportunities and increase their living standard.
National Economy- It helps the economy be creating and developing of more
infrastructure facilities and thereby encourages more entrepreneurs to start their business.
International Economy- At the international level it enhances the growth of the
economy by allowing movement of goods and services all across the countries and leads to the
socio economic development of the country.
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TASK B
Chosen organisation for this task is Samsung which is an 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 mindset of various entrepreneurs and analysis the
characteristics, skills and motivational drivers of successful entrepreneurs.
1. An analysis of the characteristics traits, skills and motivational drivers of successful
entrepreneurs
Entrepreneurs is 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. 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. There are two most successful entrepreneur, 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. 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:- Motivational – An 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 :-
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 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 inspire them to achieve their goals and objectives.
 Teammates – An great entrepreneur always needs to working together with their
teammates like Oprah Winfrey done in their business.
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.
 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 plays 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.
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2 An evaluation of various characteristics of how various characteristics of the entrepreneurial
personality reflects entrepreneurial motivation and mindset
As we discussed about the entrepreneurial 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 can not 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. The above skills helps a 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.
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 helps 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 a entrepreneur 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 help 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 can not 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.
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3. Critical Evaluation of the 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 a
elective and efficient manner.
Oprah Winfrey
As 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 field 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 has 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.
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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REFERENCES
Books and journals:
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know?. Journal of Small Business Management. 49(1). pp.9-26.
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enterprises (SMEs) in Thailand. Asian Social Science. 7(5). p.180.
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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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