(PDF) Introduction to Entrepreneurship

ENTREPRENERUSHIP

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Examine different types of entrepreneurial venture and their relation with the typology of
entrepreneurship.....................................................................................................................1
P2 Evaluate similarities and dissimilarities between different kind of entrepreneurial ventures.
................................................................................................................................................3
TASK 2............................................................................................................................................5
P3 Present a relevant data and statistics to justify the impact of micro and small business on
the economy............................................................................................................................5
P4 Explain the impact of small business and start up in growth of the economy.................6
TASK 3............................................................................................................................................7
P5 Illustrate the characteristic, skills and traits of successful entrepreneur which separate them
from other business persons. .................................................................................................7
P6 Assess how aspect of entrepreneurial personality motivate other individual of the society..8
TASK 4............................................................................................................................................9
P7 How background and experience can motivate for entrepreneurship...............................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneur is consider as an concept in which an individual who is creator, innovator of
new idea to accomplished their business at market for generating larger profitability. In this,
entrepreneurs plays very important role in running new business activities that help them in
attaining success at market place. In addition to this, entrepreneurship refers to the process of
launching, managing and organising new business venture. With the help of which, various
problems within a society get solved, like poverty, unemployment and many more. In this
present report, various entrepreneurial venture have been studies and impact of small scale
business on the economy of a country. Along with this, importance of start-ups and small
business in the development of societal economy has been discussed. In addition to this,
Along,with this, personality as well as knowledge and skills of two entrepreneurial and how they
encourage other people in the society have been studied (Storey, 2016). At last, how family and
background create an impact on individual mind has been discussed in this report.
TASK 1
P1 Examine different types of entrepreneurial venture and their relation with the typology of
entrepreneurship.
Entrepreneur : “An entrepreneur is the leader of a company, who have an innovative
idea, take full responsibility of success or failure and is willing to take risk in order to make long
term profits or gains” (Parker, 2018). By this, entrepreneur can established their new business
and explore new and innovative ideas within the organization. This will contribute in improving
the profitability level of the company at market place.
Entrepreneurship : Entrepreneurship refers to the willingness of an individual in order
to design, launch, organize new business venture for making profit. As a result, it attracts
investors who invest their money to carry out their business activities in an effective manner.
Along with this, it is also consider as a process of designing, launching and running a new
business initially at a small level with the aim of attaining success.
Entrepreneurial venture : It refers to the organization started by a person, where
innovative and creative ideas take place in order to satisfy needs of customer or society.
Different types of entrepreneurial venture are as follows :
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Social Entrepreneur: These are the person who focus on developing as well as
implementing new ways to produce innovative products with the aim of satisfying society needs
and wants (Schaper, 2016). Along with this, they also provide various ways and solution to the
society to developing society and their growth as well. They do not work for generating profit
because they focus on resolving society issues and problmes. Major aim is to create better place
for the people with no discrimination on the basis of income. As an example, Higher Rythm is an
organisation in the UK which is a social entrepreneurial venture which is designed for personal
donations to the needy public.
Small Scale Entrepreneur: Small scale entrepreneurs are those who start their business
with small level, in terms of resources, money or staff. Sources of fund for such business entity
are friends, family, financial organizations. Some of the examples are hairdresser, grocery stores,
general stores and many more. Small scale businesses are established in order to fulfill their own
basic needs from the profit (Scarborough, 2016). For example, Oak Cash and Carry is an
effective small scale entrepreneurial venture, which is associated with wholesaling of groceries.
Medium sized ventures: It is the type of business organization, experience moderate
growth when start their business activities. But gain high growth rate over the period of time by
grabbing opportunities. In this, growth rate is average which is majorly based on the growth and
development. For example, plan.com is a medium size venture that focus on enhancing their
market share.
Large scale entrepreneur: Generally large or big companies are established on the
large scale. They have the capabilities to bring innovation at the marketplace according to the
change in customers taste and preference. Company introduce new products in order to satisfy
consumers requirements, due to change in technology and competition at marketplace. For
instance, Unilever is the best example of this type of venture in market place.
Typology of entrepreneurship :
Typology refers to the process of classification of a certain aspects based on several
characteristics which is associated with process, procedures or physical characteristics. As for
typology of entrepreneurship, it refers to the types of entrepreneurship based on certain
characteristics which are mentioned below:
Female entrepreneur : Under this typology, a female entrepreneur manages and
accelerates working and functioning of an organisation to accomplish organizational objectives.
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In order to give better environmental culture for women they conduct various programs. Female
entrepreneur organize all element related to production, take risk and work for the development
of women in the society. Furthermore, with empowerment of women in several parts of the
world lately, female entrepreneurs tend to enhance the spectrum of business with their intellect
and contribution in helping other women to grow and prosper within different sectors.
Serial entrepreneur : A serial entrepreneur is a person who comes up with new and
creative idea on a regular basis and start new business venture to bring those ideas into reality.
They start new business only when if they get success in their previous venture. A rather
cautious nature could be seen in these entrepreneurs as compared to others in ways in which they
manage as well as run their business enterprises.
Social entrepreneur : They are the individuals who have creative and innovative ideas
in order to implement change in the society (Nambisan, 2017). They earn money and invest them
in order to develop the society and solve the problems. Issues are poverty, unemployment,
inequality which organization should solve by providing goods in cheaper price, provide
employment opportunity to the needy people.
Lifestyle entrepreneur : In order to fulfil self passion and hobby, an entrepreneur start
business venture, which is lifestyle entrepreneur. This type of business venture is normally
introduce by a successful business person in order to accomplish their own dreams and not for
the aim to gain profit. The biggest example of such entrepreneur is Elon Musk, who was self
driven by the idea of technological advancements and is driven to introduce new advanced
products to their customers within the UK and beyond.
P2 Explore similarities and dissimilarities between different kind of entrepreneurial ventures.
Differentiate between lifestyle entrepreneur and serial entrepreneur
Basis Lifestyle entrepreneur Serial entrepreneur
Similarities  Basic similarity is they
require huge amount of fund
while starting their own
business.
 As compare to lifestyle
entrepreneur they also requires
large amount of money as they
switch their business idea from
one to another in order to
make it more successful.
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Dissimilarities  This is the type of
entrepreneur which introduce
new business venture in order
to make changes in their own
lifestyle rather than for
earning money.
 In order to improve their own
lifestyles they wants to earn
more profit (Meyer, Neck
and Meeks, 2017).
 It is the individual who come
up with innovative idea and
then start business for bringing
new idea into reality.
 Major aim is to earn profit so
that they can use the amount
while implementing other
ideas.
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Differentiate between Small ventures and Micro entrepreneur venture
Basis Small ventures Micro entrepreneur venture
Similarities  Small venture is mainly
based on the talent and
capabilities of an individual.
 This type of business is
operated in high competitive
marketplace.
 In order to gain profits this
type of business is operated
in highly competitive
market.
Differences  Growth rate is quite small as
the owner wants to satisfy
own needs and requirements
(Lipset, 2018).
 Growth trajectory is low as
their main motive is to
satisfy their basic needs.
Differentiate between female entrepreneur and male entrepreneur
Basis Male entrepreneur Female entrepreneur
Similarities  Main aim of male
entrepreneur is to gain more
profits and satisfy their own
requirements.
 Their main goal is to earn more
profit as well as increased
market share.
Dissimilarities  It refers to the male individual
who manage, initiate,
organise or run a business
enterprise.
 Male entrepreneurs do not
believe in building
relationship at workplace as
they mainly focuses on
earning more profits.
Male entrepreneur mainly focus on
earning more profits and never focus
 Women entrepreneur includes
all those women who wants to
establish their own business
venture.
 Women always take care of the
individual whom they are
working as a family (Kuratko,
2016).
 When it comes to financial
transactions, females are more

on the overall development. conservative than male.

TASK 2
P3 Assessment of relevant data and statistics to justify the impact of micro and small business
on the economy
Micro and small business impacts the overall economy of the country. Small enterprises
plays very important role for the development of economic system. Major roles played by small
as well as by micro businesses is they create job opportunities and attract more people to start
their own business ventures. Growth in the sector of micro business enterprises improve self-
employment opportunities. In addition to this, it will help improving business wealth and directly
impacts the economy of UK (Kirzner, 2015). There are different types of business organisation
which support the economy of UK. Some of them are as follows:
Micro business: Micro business consider those organisations which includes less than 10
employees and turnover of the company is not more than £2 million .
Small business: Small business organisations employed around 10-50 employees. And
on the other hand there annual turnover is £2million but not more than £10million.
Medium business: Medium size enterprises are the type of organisations, which
incorporate 50-250 individuals within their business (Boosting UK productivity with SME
growth. 2018). Moreover, these organisation incur annual income of more than £10million but
less than £50million. Exporting : Very few SME 's are involved in exporting their commodities. Moreover, the
ratio which is 1 out of 5 would continue to decrease in the coming future. As a result, in
the coming future, an estimated 12% of non-exporting firms would be becoming
exporters in UK. Turnover : As per several statistics prevailing within the country, the annual turnover of
these enterprises is about £1.9 trillion, in which private sector holds the share of almost
51 % of the overall turnover.
 Employment : It can be said that total employment in SME'S are around 16.1 million
where private sector generates 60 % employment.
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(Source: Small business, 2018)
Furthermore, small scale business also create innovative ways, flexible and very quick
responding towards the changes within the market place that may aid in improving the overall
performance of the company. By this they also satisfy customers needs and wants by proving
them quality services as per their needs and wants. In 2018, around 5.7 million small businesses
operate their activities in UK. In this, it employing 0-249 people as employees who perform for
the company.
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Illustration 1: Small business

(Source: Role of Start-ups and Small Businesses on Economy, 2018)
As per the graph, it could be interpreted that small business have a large share in the
economic development of the country. Moreover, the readings which show 99.3% businesses
indicate that there is a rise in privately owned business enterprises. Moreover, with Brexit within
the country, it could be said that SME's are taking charge of the economy and are being an
integral part of its long term growth (Hitt and Duane Ireland, 2017).
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Illustration 2: Role of Start-ups and Small Businesses on Economy,2018

Illustration 3: Total Number of enterprises within the UK
(Source: UK business; activity, size and location: 2018)
There is a substantial rise within the business organisations recently within the UK. Even
despite of Brexit, there is an increase within the business organisations in the country. As per the
graph above, more than 2.5 Million organisations are operating within the UK which is a very
effective contribution to the UK economy despite the complex conditions like decrease in the
value of the currency. As to conclude, micro and small business enterprises could actually
become the backbone of the economy within uncertain times as there are numerous organisations
within different sectors operating as per the requirements of the market and are consistent
enough to contribute to the economy. Another reason of its positive impact on the economy is
that with rising enterprises, new employment opportunities would be created which is very
essential for future growth of the economy and the nation.
P4 Explain the impact of small business and start up in growth of the economy.
Brexit is currently the most popular situation in the United Kingdom which breaks down
their overall economy. UK separated itself from European nation as they think they will be able
to freely trade across the whole world, but on the other hand their economic system get
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destroyed. Because of this, country face many adverse things such as reduction in FDI, poverty,
unemployment and many other trade activities. There are some factors which can affect the
overall growth of the economy.
“Social economy refers to amalgamation of all those organisation which operates with an
agenda of contributing in development of the society through providing it with effective welfare.
It also contributes in enahncing the economic conditions of the nation and ensures consistent
growth of the same. These companies are not formed for profit and thus, several organisations
under the same are termed as “Not-For-Profit Organisations.” (Quarter, Mook and Armstrong,
2017).
Create employment opportunity: With the help of SME's country create more
employment opportunity for the people of UK. After UK get separated from European nation,
many people in the country lost their job, as a result unemployment ratio increases (Fayolle and
Gailly, 2015). With the help of small and medium scale business organisation company will be
able to generate job opportunities for the individuals of the country. According to the capacity of
small business enterprises they helps in generating huge amount of employment.
Distribution of wealth: When small scale or medium scale enterprises start growing in
the country, it will help in generating large amount of funds which they give for the overall
development of the economy. As government of UK, distribute the amount generated by SME's
in order to develop the backward society of the country. Moreover, according to one recent
report, the startups within the UK had an effective impact on the economy of the country with a
contribution of £196 billion to the economy (UK start-ups add £196 billion to the economy.
2019)
Increase the standard of living: With the help of small and medium scale enterprises,
people get employment opportunity which will aid them to increase their standard of living. It
has been analysed that if company generate more disposable income, movement of money in the
economic system increases. When income level of individual increases, there living standard will
be increased (Etzkowitz and Zhou, 2017).
Contribution of small business in the growth of economy: It has been analysed that
small and medium business enterprises has around £1.6 trillion turnover. Alonh with this they
provide employment opportunity for more than 24.3 million individuals within UK.
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TASK 3
P5 Illustrate the characteristic, skills and traits of successful entrepreneur which separate them
from other business persons.
With their different skills and characteristics William chase and Walt Disney are the two
successful entrepreneurs who stand different from other business managers (Cooper, 2017).
William chase is the founder of Tyrrells and potato chips and Herefordshire farmer
entrepreneur. Currently, he is the CEO of chase distillery company who deals in vodka. In the
year, 2002 he introduce Tyrrells crisps. He is known across the world by providing good quality
products to their consumer. There are various characteristic, traits and skills which seperate them
from other business persons are as follows:
Accept failure : Before setting up Tyrrells crisps, William accept his failures which he
faced from his past projects. According to Williams investing in the Woolworths is one of his
bad decision which aid him to found his own business venture. On the other hand, managers do
not accept their failures, as they always try to put their mistake on others. Acceptance of failure
makes managers more attentive towards their work and open a spectrum from learning from their
mistakes.
Continuous learning : Learning is very important part of a human life. Individual who
remain stiff about their ideas and thoughts, will be unable to achieve anything in their life.
According to Williams he believe that he is capable to set up Tyrrells crisps only because he
faces the bad times in his early life. William thinks that failure is the only thing with the help of
which he is able to achieve desired targets in his life. Manager of the company never undergo
through learning something new as they thought they know the correct way of doing any task.
Walt Elias Disney popularly known Walt Disney. He was an American entrepreneur,
animator, voice creator as well as a film producer. Walt Disney was founded by Walt along with
his brother Roy O. Disney. He is famous for his foot prints and contribution given to the
entertainment industry in 20th century (Cooper and Folta, 2017). Walt produce various cartoon
characters like Mickey Mouse, Goofy and Donald Duck.
Risk Taker- Walt was a risk taker as he always motivate other people to take risk to be
more successful in life. Various times, Walt mortgaged his personal assets in order to maintain
his position within the industry. With the involvement of huge amount of funds, he took the
biggest risk while creating Disneyland. Most of the managers refuse to take risk as they don't
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want to become responsible if company face any kind of loss. However, risk taking allows these
managers to enhance the scope of their success and broaden the scope of their better career path
and profitability.
Vision- With the distinguish vision, Walt Disney become different from other
businessmen. Walt had a vision to become the world's biggest producers of entertainment
industry. Manager of the company has no vision, as they make efforts in order to develop current
position of the organization.
As for the differentiation, normal entrepreneurs sometimes lack the risk taking abilities
which restricts them from being as big as the entrepreneurs mentioned above. One must possess
these abilities through which they could effectively succeed within the market.
P6 Assess how aspect of entrepreneurial personality motivate other individual of the society.
In order to motivate other individual within the society, an entrepreneur have various
characteristics to fulfil their dreams (Burns and Dewhurst, 2016). There are various
characteristics which an entrepreneur include in his personality, OCEAN acronym help to
identify the personality traits of an entrepreneur.
Openness to experience (O): This category involves those people who is always ready
to experience and learn new things. Walt and William are the individuals who is always ready to
modify themselves according to the need of the environment. With the help of this skill people
will be able to bring new change in the society according to the requirement of society.
Conscientiousness (C): These people are self-disciplined, organisers and aim oriented.
These people perform all there activities by planning properly in advance. Walt and William are
those individual who are hard working, passionate and dedicated towards their goals and aims.
By this, individual of the society encourage and focus towards their target in order to achieve
their aim.
Extraversion (E): It refers to the positive emotions, excitement and the source of energy
which a person inflicts on others while working in a professional environment. Walt and William
had this characteristic which helped them in lightening the mood of individuals around them in
order to make them more focused towards their work.
Agreeableness (A): They are the people contain trust, honesty and modesty on the other
person of the company. Walt and William are high scorer in this element as they both believe
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that if they doubt the efficiency of their employees they will not be able to achieve their desired
targets (Bhachu, 2017).
Neuroticism (N): These people are highly depressed, impulsive and anxious. Walt and
William are low scorers in this personality trait as they remain calm and stable in the stressful
situations. With the help of this owner of the company should remain positive in the adverse and
stressful situation. Neuroticism refrains an organisation from working with motivation and
hence, reduces its chances of profitability, sustainability and growth.
TASK 4
P7 How background and experience can motivate for entrepreneurship.
Entrepreneurship process is a combination of various elements as all these factors affect
in a positive as well as negative manner. Background and experience of a person affect its skills
and capabilities. It generally depends upon the person, whether they get motivated or
demotivated with their life experience. Here is a detailed description about two entrepreneurs,
who get motivated by their background and life experience to establish their own business.
William chase is the founder of Tyrrells crisp brand, born in Herefordshire, UK. William
belongs to a farmer family, as they are rich enough from assets but poor from cash. William
never satisfied with the things he have and want something extra every time. The income earned
by his parents was invested in business venture, and he has grown up by seeing this thing which
develop the skills of doing a business in him (Entrepreneurs. 2018). Also he learn a lot of thing
from the bad time he face in his life. As a result, he get motivated to do something new in his
life.
Walt Disney was born in the year 1901 in Chicago. He was artist from his childhood.
from his early age. His father Elias was a carpenter, farmer and contractor. He took art classes
but his father is a strict person and do not want him to learn drawing or sketching. Later on, his
father buy a farm in marceline, Missouri. But his father get failed and then they moved to Kansas
city where they started selling newspaper for earning. Walt gets motivated to do something new
by facing several changes in their life and in order to this they lead to work in right direction
(The Walt Disney Company, 2019).
Family background: It is the most important element that helps in promoting or
affecting the mindset of an individual. Walt Disney is a successful American entrepreneur but
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had faced a lot of failures in life that directly effect on the mind set and motivation as well. With
the constant support from his family he never lost hope and was always motivated to work hard
to achieve his goals. In addition to this, family background of William chase is not so strong as
his parents financial position is bad. As a result he focus on his own ideas and wanted to turn
them in reality (Will's Story, 2019).
Education: Education is the most important aspect in the life of human. It allows to be
analytically sound as well as ensure better and calculated risks within the business. By high
education level, entrepreneurs tend to effectively operate within their businesses and experience
effective and sustainable growth in their career (Cooper and Folta, 2017).
CONCLUSION
From the above mention report, it has been concluded that entrepreneurship plays very
essential role in the overall development of the society as well as economy of the country. In
this report, throughout the overall analysis it has been determined that there are many type of
entrepreneurial venture which helps the individual to earn profit and make sustainable position at
market place. Along with this, report has also mentioned various qualities of a successful
entrepreneur which differentiate them form other business persons. As a result, with such
qualities entrepreneur can motivate other people within the society in order to fulfil their passion
and dream. At last, this report has detailed description about the past life and background of
entrepreneurs which affect their overall life.
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REFERENCES
Books and Journals
Bhachu, P., 2017. Immigration and entrepreneurship: culture, capital, and ethnic networks.
Routledge.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Cooper, A. and Folta, T., 2017. Entrepreneurship and high‐technology clusters. The Blackwell
handbook of entrepreneurship, pp.348-367.
Cooper, A. C., 2017. Networks, alliances, and entrepreneurship. Strategic entrepreneurship:
creating a new mindset. pp.201-222.
Etzkowitz, H. and Zhou, C., 2017. The triple helix: University–industry–government innovation
and entrepreneurship. Routledge.
Fayolle, A. and Gailly, B., 2015. The impact of entrepreneurship education on entrepreneurial
attitudes and intention: Hysteresis and persistence. Journal of small business
management. 53(1). pp.75-93.
Hitt, M. and Duane Ireland, R., 2017. The intersection of entrepreneurship and strategic
management research. The Blackwell handbook of entrepreneurship. pp.45-63.
Kirzner, I. M., 2015. Competition and entrepreneurship. University of Chicago press.
Kuratko, D. F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Lipset, S. M., 2018. Values, education, and entrepreneurship. In Promise Of Development (pp.
39-75). Routledge.
Meyer, G. D., Neck, H. M. and Meeks, M. D., 2017. The entrepreneurship‐strategic management
interface. Strategic entrepreneurship: Creating a new mindset. pp.17-44.
Nambisan, S., 2017. Digital entrepreneurship: Toward a digital technology perspective of
entrepreneurship. Entrepreneurship Theory and Practice. 41(6). pp.1029-1055.
Parker, S.C., 2018. The economics of entrepreneurship. Cambridge University Press.
Scarborough, N. M., 2016. Essentials of entrepreneurship and small business management.
Pearson.
Schaper, M. ed., 2016. Making ecopreneurs: Developing sustainable entrepreneurship. CRC
Press.
Storey, D. J., 2016. Entrepreneurship and new firm. Routledge.
Quarter, J., Mook, L. and Armstrong, A., 2017. Understanding the social economy: A Canadian
perspective. University of Toronto Press.
Online
Boosting UK productivity with SME growth .2018 .[Online]. Available through
<https://esrc.ukri.org/news-events-and-publications/evidence-briefings/boosting-uk-
productivity-with-sme-growth/>
Entrepreneurs. 2018 .[Online]. Available through <https://biznakenya.com/dos-and-donts-for-
student-entrepreneurs/>
Small businesses. 2018. [Online]. Available
through:<https://www.tutor2u.net/economics/reference/small-businesses>.
The Walt Disney Company. 2019. [Online] Available Through:
<https://www.thewaltdisneycompany.com/>
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