Impact of Micro and Small Businesses on Economy

   

Added on  2020-10-22

16 Pages4788 Words206 Views
ENTREPRENEURSHIP
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Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1...........................................................................................................................................1P.1. Carry out mini research to examine different types of entrepreneurial ventures andexplain how they relate to the typology of entrepreneurship......................................................1P.2. Explore the similarities and differences Between entrepreneurial ventures........................3TASK 2............................................................................................................................................5P.3. Impact of micro and small businesses on economy: ...........................................................5P.4. Benefits of small businesses and start –up enterprise contribution to growth of the socialeconomy after ‘Brexit’................................................................................................................7TASK 3............................................................................................................................................8P.5. Mini-research to know the characteristics, traits and skills of two successfulBusinesspersons,.........................................................................................................................8P.6. Aspects of the entrepreneurial personality and reflect entrepreneurial motivation andmind set.......................................................................................................................................9TASK 4..........................................................................................................................................11P.7 Explanation on how the background and experience can hinder or foster entrepreneurship....................................................................................................................................................11CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13
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INTRODUCTIONEntrepreneurship refers toownership of a new business with the ability to organise, manageand develop an organisation along with various risks for earning profits and growth inmarketplace. This study will mostly focus on different types of entrepreneurial ventures and howthey are related to the typology of entrepreneurship. This report will also focus on Similaritiesand differences between entrepreneurship ventures. Along with that, two entrepreneurs will betaken to know their skills and traits of being successful. Furthermore, explanation on thebackground and experience that can hinder or foster entrepreneurship will be described in detail. TASK 1P.1. Carry out mini research to examine different types of entrepreneurial ventures and explainhow they relate to the typology of entrepreneurship.Entrepreneurship is desire and potential of setting up of a business by taking all therequired steps with a view to earn higher profits in the future. To be an Entrepreneur, a personshould have power of committing to all challenges and failures. One must have capacity to grabthe opportunities coming in their way. To be a successful entrepreneur one must have the passionof learning from wherever a person can (Nabi. G. and et.al., 2017)There are many kinds of entrepreneurial ventures, below are some of them: -Micro Entrepreneurship: In this type of business, investment in Fixed assets like plantsand machinery does not exceed£13868 and number of employees working in these firms are not more than 10. Such entrepreneur does not have the intention of hiring many employees. Finance is arranged by external sources majorly from generated cash flows and loans. Many tax benefits and less regulation of setting up can be enjoyed by such businesses.Small business entrepreneurship: In this type of business, investment in Fixed assets like plants and machinery should be more than £34670 but less than £50000and employees are more than 10 but less than fifty in such kind of enterprises. Example of small business entrepreneurship are retail shops, photographers, Bakery shops etc.Medium sized entrepreneurship: Those entities which have a higher capital investmentthan small businesses and have less than 250 employees are called medium size entrepreneurship. Such firms are run by either a single person or can be run in partnership1
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Typology of entrepreneurship:Lifestyle firms: These firms are set up with a view to change personal life style of a person. Profit making is not only the purpose of such organisation. Owner of such firms enjoy their workbecause they have passion for the work they do. This kind of business gives a satisfaction to the proprietor (Welter. F. and et.al., 2017).Growth firms: This kind of firms has a fast growing rate in comparison to other organisation. Revenue in such kind of business increases rapidly. Major focus of such kind of enterprises is to achieve growth in their sector. Cash flows and revenues increases with a faster rate as in comparison to other firms (Michael, Storey and Thomas, 2017).Difference between lifestyle and growth firms:BasisLifestyle firmsGrowth firmsMeaningThese firms are set up with a view to change personal life style of a person.This kind of firms has a fast growing rate in comparison to other organisation.FocusThis kind of firms has majorfocus on personal income andprofits of the organizationSuch firms focus on overallgrowth of the company.Capital investmentCapital is raised by theproprietor by his own. Theseare self-funded firms.Capital in such organization israised by venture capital ormajor from angel capital.Similarities and differences between male and female entrepreneur:Similarities between male and female entrepreneurBoth have risk taking capacity and carry similar level of energy. The Biggest similaritybetween both is of education. As, both the business-man can have same degree.Difference between male and female entrepreneurBasisMale entrepreneurFemale entrepreneurDecision makingMale entrepreneur can takedecision easily Females takes more time inmaking decisions and it ismore difficult for them.2
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