Entrepreneurship Theories and Practice

This assignment delves into contemporary trends within entrepreneurship research. It examines a range of key topics including social entrepreneurship, its influence on crowdfunding, and the role of sustainability in entrepreneurial ventures. The analysis also explores international perspectives on entrepreneurship, particularly in Asia, and investigates the impact of technology and innovation on the field. Published academic works from 2016 onwards serve as the foundation for this research.

ENTREPRENEURSHIP
14 areas of the economy

Table of Contents
Introduction..........................................................................................................................................4
TASK 1.................................................................................................................................................4
P1 Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship...........................................................................................................4
P2 Explore the similarities and differences between entrepreneurial ventures...............................5
TASK 2.................................................................................................................................................6
P3 Assess and interpret relevant data and statistics in your mini-research to illustrate how micro
and small businesses impact on the economy..................................................................................6
P4 Explain how important small businesses and business start –ups will contribute to the growth
of the social economy after ‘BREXIT”.........................................................................................11
TASK 3...............................................................................................................................................12
P5 Carry out a mini-research to determine the characteristics, traits and skills of two successful
entrepreneurs, which differentiate them from other business managers........................................12
P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mindset...........................................................................................................................................12
TASK 4...............................................................................................................................................13
P7 Examine how background and experience can hinder or foster entrepreneurship...................13
Conclusion..........................................................................................................................................14
References..........................................................................................................................................15
24 areas of the economy

INTRODUCTION
A true innovator that transforms negativity into positivity which required trait in today’s
business world. The theme of current project is to signify the importance of an entrepreneur in daily
routine of business. This project is all about defining various entrepreneurial ventures and their
relation with the stream of entrepreneurship. It also dictates the difference among all the sectors oof
entrepreneurs. It states about the impact of small business entity on the economy of the United
Kingdom.
TASK 1
P1 Examine different types of entrepreneurial ventures and explain how they relate to the typology
of entrepreneurship
Entrepreneurship is a wide concept that covers case studies about several entrepreneurs who
take heavy amount initial risks in order to grow their business. This is regarded as traditional
concepts and approaches used by an entrepreneur in uplifting their status from novice players of the
market till they become expert of the business (Kautonen, Kibler and Minniti, 2017).
Entrepreneurship is that process traditionally designed, launching and running a new business as
small scale owner of new start-ups. An individual’s personal trait is essential in order to transform
their skills into a new business as starting a venture require courage. Coward players will not
survive for longer time period in the market as fearless people can take risk without thinking about
the loss may occur in their business. Half Battle won by an entrepreneur when they take risk in the
businesses which will results into future fruits for an entity.
Small business entrepreneurship- The initial business of every starts from small scale business as
they take risks but due to some limitation they have start from initial phase. Several numbers of
entrepreneurs in UK have started their business from small scale not due to financial limitation but
in order to gain experience of market by maintaining their position in lower market (Kuratko,
2016). The creation of comfort in smaller market allows an individual to extend their share from
smaller to larger market. The small businesses in UK covers grocery stores, salon and hair dresser,
consultancy firms, travel agents as these entities are exists in order to meet the daily routine needs
of an individuals. Example, Mainstage travel is a business set by local entrepreneur Aden Levin and
Rob Tominey.
Global entrepreneur- Large scale business owner usually comes under this category in order to
cater variety of needs and expectations its wide number of customers. The owners who have built
large companies have passed through the phase of small scale business. The maturity of an
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individual leads them towards the inauguration of large scale entities in order to gain higher market
share in the same environment. Various entrepreneurs gain success due to their innovation,
sustainability growth, offering alternative options in their products. The international status of the
firm increases the complexities for the business such as change in tastes and preferences of
customers, new trend in technology (Storey ed., 2016). For instance, the mountain group aims to
provide large number of employment in the society as it is founded by Mark Neale which benefit
their firm in increasing their incomes and revenue.
Social entrepreneur- The basic objective of this kind of entrepreneurs is to meet social needs and
the expectations of its variety of users of society. Fulfilling corporate social responsibilities of the
business are major objective of an entrepreneur. They lays emphasise on developing variety of
products according to the tastes and demands of society to resolve all their current issues. Social
welfare is the primary motto of nee business entity as their any action will not affect the overall
lives of the society members. The primary aim of the business is to launch eco-friendly products in
the market to make peaceful and better world. This aim will not affect the present as well as future
generations of the society. For example, Johnson &Johnson is great example of social enterprise
who manufactures baby products to facilitate all people with their least harming products.
Chemicals are not involved in the making of products as it involves all kinds of natural ingredients.
Serial entrepreneur- Uniqueness is regarded as one of the competitive factor that can be used by
an individual in order to create competition in the external business. It is that concept under which
an entrepreneur who brings lots of innovative and creative ideas launched in the market in order to
satisfy all the needs and the expectations of all individuals.
Woman entrepreneur- Nowadays, women is creating higher market advantage by launching their
own ventures in the market to give competitive fight to all the male entrepreneurs.
P2 Explore the similarities and differences between entrepreneurial ventures
Objective
 The small scale established in order to maintain their survival in the business by meeting their
desired goals and the objectives (Kuratko, 2016). The initial phase of these kinds of owner
requires market alertness in order to access wide number of opportunities into their pocket.
 On the other hand, the business maturity of large scale entity provides additional skills and the
capabilities in order to maintain their higher status in the market. Achieving goals other than
survival by the large scale entity in order to gain higher market share in the same industry in
which they start they business as a small scale entity.
 Primary objective of social enterprise is to create their products in order to solve the current
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issues of the society. The societal obligations will be meeting out by the business owner in
order to facilitate areas of their users in accessing all the services offered by an entity.
Scope
 In terms of scope, small scale entity has limited scope but its gives rise to all other big
companies as their base has established initially. Stronger the base of business higher will be
the earnings of the business entity. The enthusiasm of an individual is clear sign of
enhancing overall capability of an entity owner in the near future.
 The scope of large scale entity is wide as being at this position is just expansion of business
from small scale entity to the large scale entity. The market exposure of an entity is high as
this organisation has marked their foot on international place. The status of global business
attracts wide number of customers towards the business which helps in creating good image
of an entity in the near future.
 Accomplishing social welfare activities will helps in attracting large number of society
members. The faith and trust of all the society members enjoyed by this social enterprise as
all the products offered by an entrepreneur is to meet their higher expectations in order to
remain in the market.
Basis Male venture Female venture
Risk They take more risks as
compared to women.
Women take fewer risks as hey
prefer safer side.
Competition Study found that competitive
advantage will be created by
men.
Women hesitate to take up
challenges
Examples Microsoft Allbright
TASK 2
P3 Assess and interpret relevant data and statistics in your mini-research to illustrate how micro and
small businesses impact on the economy
Criteria Micro Small enterprise Medium businesses
Employees Greater than 10 Greater than 50 Less than 250 employees
Annual turnover Greater than equal to 20
million
Greater than equal to 100
million
Greater than equal to 50
million
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Balance sheet
Total
Greater than equal to 2
million
Greater than equal to 10
million
Greater than equal to 43
million
Characteristics of business
Sole proprietorship- Sole trader operated their business at their own pace as they have no under
obligation in order to prepare any kind of financial statements.
Partnership- In this kind of business two or more partners form together a firm n which finance
will be arranged by all the partners who share all losses and profit in the investment ratio mentioned
in the partnership agreement.
Private entity- This kind of entity is wholly operated by an individual who are registered as legal
entity by adding the word limited at the end of company's name.
Small business is that kind of business which is wholly operated by single owner who have
established their business on their own (Mosey, 2016). This entity has spread all over the economy
of the UK as this is regarded as highly growing business sector. This particular sector has
dominating sector which involved various sectors such as grocery stores, small consultancy firms.
The enterprises has various categorises in order to boost or suppress their overall market share. It
can be classified as micro, small and medium enterprises in order to locate in the same business
environment. The existence of all these enterprise will be helpful for an enterprise in order to gain
higher market share.
As per the recent study, it has reveal facts regarding the sales and the revenue earned by all
the enterprises in the same business environment.
Categories of business Business status Existing employees Sales and revenue
Micro enterprise Self owned Less than 5 employees Turnover less than
250000 GBP
Small business
enterprises
Managed and owned
by single owner
Less than 25
employees
250000-500000 GBP
The above mentioned facts related to this particular industry states that certain limits has
been set up for recognising the nature of business as micro or small based entity (Carraher, Welsh
and Svilokos, 2016). It has been shown three parameters for assessing the actual market status of
the business that is business nature and status, employee’s base and turnover to be earned by the
business enterprise. Above mentioned statistical figure signifies the importance of small scale entity
for the overall economy of United Kingdom as this current stream has devoted higher amount of
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share to boost up the overall economy. The reason behind the support given by the government of
UK to this sector is based upon the earning and current market status enjoyed by this entity.
There is clear cut link between small based enterprises and the entrepreneur’s ad most of the
entrepreneurs intends to open their venture as small scale entity. This kind of market venture opens
up this organisation structure in order to get relief from the government in building of their business
as newly start-up is supported by the legal authorities (Mosey, 2016). The government supports in
financial and technical expertise to all the newly established owners. There are various impacts of
small business entities established in the United Kingdom are given as below:
Creation of Job- The major objective of every economy is to increases the overall share of
employment as this helps in accomplishing all the societal obligations of an entity towards their
society. This sector helps in creating wide number of jobs for all unemployed candidates of UK in
different streams to utilise their special skills for the betterment of the companies. Higher profit can
be earned by an entity by using unique capabilities of all the users.
Year Number of small base enterprises
in UK
Contribution to the economy
2001 245348 25172.7048
2002 261853 23409.6582
2003 312959 42750.1994
2004 342788 46756.2832
2005 376767 54254.448
2006 410959 58356.178
2007 519526 81929.2502
2008 570838 96186.203
2009 607297 105791.137
2010 659309 110104.603
2011 711832 128129.76
2012 748000 136136
2013 7560000 1391040
Number of small base enterprises in UK
Mean 1025190
Standard Error 546615
Median 519526
Mode #N/A
Standard Deviation 1970848
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Sample Variance 3.88E+12
Kurtosis 12.75345
Skewness 3.557959
Range 7314652
Minimum 245348
Maximum 7560000
Sum 13327476
Count 13
Largest(1) 7560000
Smallest(1) 245348
Confidence Level (95.0%) 1190972
Contribution to the economy
Mean 176924.3
Standard Error 101710.9
Median 81929.25
Mode #N/A
Standard Deviation 366723.9
Sample Variance 1.34E+11
Kurtosis 12.65485
Skewness 3.538924
Range 1367630
Minimum 23409.66
Maximum 1391040
Sum 2300016
Count 13
Largest(1) 1391040
Smallest(1) 23409.66
Confidence Level (95.0%) 221609
Number of small base enterprises in UK Contribution to the economy
2007 Mean 1025190 Mean 176924.3
1.080123 Standard Error 546615 Standard Error 101710.9
2007 Median 519526 Median 81929.25
#N/A Mode #N/A Mode #N/A
3.89444 Standard Deviation 1970848 Standard Deviation 366723.9
15.16667 Sample Variance 3.88E+12 Sample Variance 1.34E+11
-1.2 Kurtosis 12.75345 Kurtosis 12.65485
-4.4E-17 Skewness 3.557959 Skewness 3.538924
12 Range 7314652 Range 1367630
2001 Minimum 245348 Minimum 23409.66
2013 Maximum 7560000 Maximum 1391040
26091 Sum 13327476 Sum 2300016
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13 Count 13 Count 13
2013 Largest(1) 7560000 Largest(1) 1391040
2001 Smallest(1) 245348 Smallest(1) 23409.66
2.353387 Confidence Level(95.0%) 1190972 Confidence Level(95.0%) 221609
Interpretations
The above multiple bar graph shows the importance of various business sectors of small
scale entity in the manufacturing sector (Carraher, Welsh and Svilokos, 2016). This shows that food
processors a drinking companies is increases their sales and the revenue over the years. This is due
to the increasing demand of all the beverages with the passage of time as most of users prefer to
drink cold drinks rather than traditional drinks prepared at home. This depicts the transformation in
the attitude of an individual from drinking milk at home towards the beverages by youngsters of the
society. It can be said that least share accessed by chemicals and non metallic minerals business as
their demand is not up to the mark as compared as compare to all other sectors in which a small
scale currently deals.
94 areas of the economy

Interpretations
This figure shows the significance of contributions given by the small scale entity towards
the gross domestic product of the economy of UK. This reflects that major revenue comes from the
assembling of products and similar kinds of goods deals in by the business firms. This shows that
manufacturing entity is less supporting than assembling of goods as they are giving higher services
directly to the end consumers which will results in the increase in the overall sales and the revenue
to be earned by an enterprise.
Interpretations
Proportion of small industrial entity fall under manufacturing sector shows the importance
of various business streams comes under the same category. It has been seen that the ratio of food
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processors and drinks is increases from one period to another period. The second priority will be
given to assembly type and related kinds of products whose performance is also increasing from
one period to another. The increasing trend of ratios over the period signifies the efforts applied by
singular firm in order to attain all the objectives.
P4 Explain how important small businesses and business start –ups will contribute to the growth of
the social economy after ‘BREXIT”
Small business is regarded as latest growing sector that contributes highest sales and the
revenue to the overall economy of the United Kingdom. In terms of competition it remains always
ahead as being a small scale entity it enjoys lesser market obligations as they get relief and financial
support from the government in setting up their business on their own pace. This entity provides
wide number of employment opportunities to all the society members. The current business sector
has contributes higher amount to the economy in order to gain their status in the market.
The employee’s base of this particular sector had increases that directly enhance the overall
scope of business in the external market. The cottage industries has transformed into big
corporations that are able to generate higher market revenues as compared to their current market
rivals. The increasing growth of the economy of UK is due to the contributions and setting up of
business and their various sectors all across the world (Calic and Mosakowski, 2016). The
increasing contribution of revenue to the economy in turn increases the support a small scale entity
required in order to establish their business in the best possible manner. The unique capabilities of
this stream include skills of creativity and innovation that attracts biggest investors to invest in the
business of small scale. These small scale entities enjoyed higher market share in the business
environment due to good strategies crafted by them in relation to their rival members exists in the
same industry. The aim of the firm is to eliminate current competition from the market by
strengthening their position in the overall market.
The specific areas on which BREXIT focuses gives right direction to small scale entity that
follows the same in order to transform them into reality. The imaginary goals are converted into
reality to provide higher amount of returns to be generated by considering all the parameters set by
the institutions. The set guideline by the authority will be helpful for the business in order to
achieve desired goals and the objectives.
It has framed policy to access single market in the boundaries of the European Union and
non-EU markets to accomplish all the objectives. Another motto states that skills and the labour to
be used by the firm in order to generate higher returns for the betterment of the organisation in the
increasing market conditions. The external changes will be considered by an entity in order to
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remove their weaknesses by adding the touch of creativity and innovation. The deserving
compensation will be paid to all the labours working in the small scale entity. The social economy
aims to provide deserving wages and salary to all the employed individuals working in the small
scale entity. The wages standards have set by the authorities in order to safeguard an employee from
being exploited by their employer on unmerited basis.
BREXIT- It is regarded as the regulatory authority who will regulate the overall performance of all
the entities located in the United Kingdom as this is set up in accordance with the European Union.
The existence of BREXIT may poses several consequences for all other companies situated
in the UK. The interference of BREXIT in the performance of an entity UK decided to leave the
European Union which created turbulence in the external environment.
The difference among small business and start up is that start up has higher potential growth
and have long termed perspective of building their business which on other hand small business
doesn't think for long term purpose.
Criteria Small business Business start up
Economic and social
development
It will not create higher changes
in the economic conditions.
Start-ups will induce the GDP
of a country.
Job creation It generates job at nominal level It will create job opportunities
to an individual for long time.
TASK 3
P5 Carry out a mini-research to determine the characteristics, traits and skills of two successful
entrepreneurs, which differentiate them from other business managers
The basic characteristic required by an entrepreneur in order to set up their business in better
manner and also to achieve to a great height (Patra and Rout, 2016). Two successful entrepreneurs
of UK is David and Simon Reuben and Philip Green are successful British businessmen of UK who
have seen great achievements in their career. There are various traits and attributes required by an
individual in order to succeed in their career by achieving all their dreams:
Determination- It is regarded as basic attribute of an entrepreneur in order to stick to their action
without thinking about future los or profits. The idea generated by an individual will be converted
into business venture required clear determination of achieving the aim by having faith and
confidence in itself. Self confidence is important what these people have used in order to gain
success. David Reuben has started their metal business with clear determination in order to reach
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the current status in the market (Forsgren, 2016). On the other hand, Philip green has handled their
inheritance business of shoe importing in early age of 15 after the death of his father. Entrepreneur
will emphasise on achieving desired aims and targets in less period without thinking about the final
outcome.
Taking risks- Two Reuben brother David and Simon have taken higher risks while starting metal
scrap business in the year 1970 which was the year of unstable business of metals. The fortune of
the brothers created good revenue by increasing the overall worth of property and investments made
by them in the metals business. This gives confidence to them in order to expand their business
from smaller to large amount of investments applied by them in boosting up their overall business.
Normal business managers take risks in a business but the differentiating feature among both
the manager and an entrepreneur is that impossible risks can be taken by an entrepreneur as they
have no fear of loosing their business.
On the contrary, biggest risks taken by Philip Green are to handle the inheritance business of
their father who died due to heart attack. In the early age of 15 he handles this business with no
prior knowledge but higher risk taken by him generates heavy amount of revenue in order to
appreciate their overall talent. The skills are enriched by taking lost of risk as it can be said that
higher risks taken by an individual higher will be the revenue generated by them in a particular
business sector.
P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mindset.
The entrepreneurial mindset has been explained by Schumpeter who thinks entrepreneur is
regarded as rational actor that has special skills and capabilities in order transform negative
situations into the positive one (Bruton and Chen, 2016). The ability of an entrepreneur reflects the
high level of innovations applied by them in order to gain higher share in the market. It also said
that they regarded as pack of innovation that is characterised as raw materials which can be shaped
into any size. Entrepreneurship is regarded as that drive under which innovation and unique ability
of an individual has improved with the passage of time.
Entrepreneur is active actor changes the passive behaviour of an entity during the external
market changes. The ideas of an individual are executed by them in a systematic order to facilitate
its variety of users in accomplishing all desired goals and the objectives in a particular time. The
action of an entrepreneur required external support and collaboration of workers who helps in
achieving all the targets within prescribed deadline set by an individual. Autonomy of an
entrepreneur in leading all activities in the business regarded as self motivational tool in improving
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their overall performance of an enterprise in relation to the external market aims and targets framed
by the enterprise owner.
In the process of entrepreneurship, the personality of an individual play an integral role in
creating a person's career in specific field. Identifying various rains and attributes of a personality of
an individual facilitates an individual in accomplishing all their desired aims and targets which
needs to be fulfilled within a given time span. There are five dimensions of personality of an
entrepreneur is given as below:
Openness- In this stage, an individual will expose to the external market and analyse the behaviour
of market player and get experience hat will be helpful for the in operating their firm successfully.
Conscientiousness- This phase will emphasise on the self discipline of an entrepreneur that needs
to be patient while facing complexities in the external market.
Extroversion- Good communication skill of an entrepreneur is essential in order to negotiate more
with the buyers in building their firm properly.
Agreeableness- An entrepreneur need to be cooperative while facing higher competitive pressure in
the external firm as coordination need to be maintained.
Neuroticism- Anxiety of entrepreneur should be positive which will enhance their skills in order to
accomplish all aims and targets within less period.
TASK 4
P7 Examine how background and experience can hinder or foster entrepreneurship
Entrepreneurship is important stream that drives overall growth of an individual in order to
uplift their existing working conditions of the business (Yang, 2016). The skills and the capabilities
of an entrepreneur is enough to meet out all kinds of challenges faced by them in their path. The
way of entrepreneur is easy as they need to face various difficulties in their path as they are risk
takers. The background of an entrepreneur is important in enhancing their skills as this improves
their existing condition. Experience in the business sector is important as this will inspire an
individual in order to achieve higher business objectives in order to remain ahead among all the
competitors exist in the same business entity.
There are various aspects which will be helpful for an entrepreneur in utilising their existing
experience in improving their business is given as below:
Business expertise- the operating of business required special skills and capabilities of an
individual that strengthens the existing nature of business (Hoogendoorn, 2016). The analytical
skills of an individual will gets improved with the passage of time as they get able to take decisions
for the betterment of their business in improving their skills and the capabilities.
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Quality of service- The services offered by an entity to its variety of clients helps in creating a
good brand image of an entity. This image is essential in order to retain all the customers within the
business for long time period.
Advantages of entrepreneurship
Freedom- An entrepreneur will run their business at their own pace which facilitate them in order
to meet all the desired aims and targets in less period.
Increasing earnings- Earning of the business can be enhanced by emphasises on the positive
aspects of the business which creates additional value for an entrepreneur in building brand image
of their business.
Disadvantages
Time- An entrepreneur require more time in order to set up their business which wasted lot of time
that can be invest in more important things.
No assurance about success- An individual start their business doesn't guarantee success as they
are experimenting with new facts in order to survive in the external business environment.
There are various factors which needs to be consider while assessing he overall behaviour of
an entrepreneur are given as below:
Education- It plays a significant role in building unique identity of a person as an entrepreneur
utilises their theoretical knowledge in order to get higher practical exposure.
Family- Business family background of a person inspires a person in order to start their on business
and be their own boss.
Social network- Business network is regarded as the essential tool used by an individual in order to
accomplish all the desired aims and targets within a given period for the betterment of the business.
Linked In is the best suitable example of creating good business relations y directly contacting
CEO.
Bill gates the owner of Microsoft is the biggest example of Entrepreneurship who strated their
business at the age of 20.
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CONCLUSION
It can be concluded from the above assignment that entrepreneurial skills is important for an
entity in upgrading their existing business skills. Various business entities discussed in the above
project emphasises on the abilities they gained by following several principles of entrepreneurship.
The successful entrepreneur is due to the qualities acquired by them from them by experiencing
things as they are risk takers. They are also regarded as problem solvers who come through different
problems in their lives that help entrepreneurs like David Reuben and Philip Green in reaching the
step of success after facing lots of difficulties in their business.
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