Entrepreneurship and Business Skill Development

This assignment delves into the essential skills required for success in entrepreneurship and business. It examines various skill domains such as strategic thinking, communication, financial management, and innovation. The provided research papers shed light on the importance of practice, coaching, knowledge transfer, and individual predispositions in developing these crucial entrepreneurial abilities.

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................5
TASK 1............................................................................................................................................5
P1 Diverse range of entrepreneurs and their relationship with the typology of
entrepreneurship...........................................................................................................................5
P2 Similarities and differences between various entrepreneurial ventures.................................7
P3) Impact of micro and small businesses on the economy........................................................7
P4. Importance of SMEs and business start-ups in the growth of social economy.....................9
P 5 Qualities that makes a successful entrepreneurs. Examples of successful entrepreneurs.. .10
P 6 Aspects of the entrepreneurship personality reflects entrepreneurial motivation...............10
P 7 Impact of past experience and personal background...........................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Entrepreneurship is a process under which someone starts their business along with their
idea, thoughts and creations. In other word it can be said that it is capability and willingness to
organize and manage business activities and functions along with any of its risk. While any
individual starts its business then it has some kind of risk and requirement of sufficient business
resources such as finance, human resources and equipment (bird, 2015). With assistance of
effective and systematic planning and strategy, business can expand and gain desired
profitability in the entrepreneurship. The following project report provides a depth knowledge
and understanding about different kinds of ventures and its business activities and functions and
also discussed on the differences and similarities of different business ventures. The importance
and benefits of small business enterprise in the economy has been also addressed in this report.
Furthermore, characteristics skills and traits of a successful entrepreneur have been also studied
in this report.
TASK 1
P1 Diverse range of entrepreneurs and their relationship with the typology of entrepreneurship
Entrepreneurship involves various kinds of risk, a systematic strategic planning and
allocation of fund upon the various business activities and functions. in this activity, entrepreneur
develops a systematic planning and designing the activities of entity along with effective
business decisions. Entrepreneurs are a person who invests their capital to often create and
market new product and services. There are various kinds of business entrepreneurs which are as
follows-
 Small business entrepreneurship- Small business entrepreneur are those individual who
runs their own business along with their idea, thoughts, creativities. They just invest their
money in the business in order to gain effective profitability (Bae and et.al., 2014). They
convey their creativities and thoughts into the reality and contribute as manufacturers and
traders. For example: plumbers, electrician, beautician, carpenters, internet commerce
stores, coaching canters etc are the example of small business enterprise.
 Social entrepreneurship- Social entrepreneurs are non profit entrepreneurship ventures
under which very limited risks included. It is that business entities which takes risk in
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order to provide the benefits to the society. They consider on providing products that are
useful for resolving the issue and requirements of society (Baker, Grinstein and
Harmancioglu, 2015). Its aims to develop such kind of decisions which is favourable for
society and creating wealth for founder. It contributes on all other sectors of nation like
tourism, employment etc.
 Trading entrepreneur- This kind of entrepreneur does not engage with production,
manufacturing and procurement related activities. They only purchase the finished
commodity and direct sell to customers (Bruni, Gherardi and Poggio, 2014). They just
plays a role of middlemen between the manufacturer and customer in the market. For
example, whole seller, retailer and dealers.
 Scalable start up entrepreneurship- In this entrepreneurship activity, business activities
and function are organized and attracted unique quality features regarding new business
enterprises. It is favorable and appropriate for scalable model of business and rapid
expansion of the new business organization. In this kind of model of venture,
entrepreneur requires the high amount of fund for organizing and implementing the plans
and strategy.
 Industrial entrepreneur- This kind of entrepreneur have major objective to satisfy the nee
d and wants of customer related to product and services. It works for satisfy buyers need
by manufacture and deliver the product and services accordingly (Castello, Barbera and
Vaara, 2016). This entrepreneur is product oriented who realize and identify the
opportunity to set in industrial unit and develop effective and innovative product which
can satisfy the customer needs in the market.
 Large company entrepreneurship- In this entrepreneurship, entrepreneur requires the
large amount of capital for adopting new technologies, infrastructures, legislation for
enlargement of business, adopting innovation and providing high quality services for the
organisation (Charness, 2014). In addition to this, in this kind of entrepreneurship,
entrepreneur takes the high level of risk in order to organise the business activities and
functions. It is complex kind of business under which entrepreneur may face the
difficulties to attract the customer toward the new product and services. Moreover, it
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have high level of competition because large numbers of rivals are available in the
market.
Entrepreneurial ventures relation with typology of entrepreneurship: Typologies assist to
entrepreneurs by generating new idea to express need, self awareness, confidence and innovative
thoughts. It is a form and subject which is related to understand the relationship between
entrepreneurship (carland, carland and stewart, 2015). In addition to this, it aids in implementing
various strategies and decision making styles. In the context of small business enterprises,
individual get developed and implement various innovative idea and action as typologies which
assist in attaining success.
P2 Similarities and differences between various entrepreneurial ventures
Entrepreneur companies initiate innovation and action by taking the risk and invest the
amount of capital for expand business in the market. Following are some mutuality and
differences between entrepreneurship-
Similarities- The major similarities of all entrepreneurship venture is that all have main objective
to deliver the high quality of product and services to customer and attract them toward the
organisation (Carraher and Paridon, 2015). They desires effective profitability for enlarge their
business entities. All entrepreneur takes some kind of risk and invest their capital for effective
profitability. They implement their innovative idea and technologies for enhance qualitative
services and meet customer need. All of them requires effective and systematic planning for
enhancing entities.
Differences- All ventures have different kinds of risk and they contributed at different level of
business. For example, small business enterprise includes family business and large scale
business includes retail business (Bird, 2015). On the other hand large company have high
technological and infrastructure system for production and procurement. This kind of business
acrry out its business activities and function at large level. On the other hand social
entrepreneurship business focuses on the welfare and benefits for the society which takes re
decision and product services for safety needs and wants of the society. In this business major
objective to protect and m,kae satisfy to them.
P3) Impact of micro and small businesses on the economy
Micro and small businesses have a huge impact on the economy of nation. However, their
contribution in the growth of a nation is generally not seen. But they have a significant role in
improving the economic condition of a country. While, contribution of large organisations is
clearly visible to the nation. Due to the reason that after Brexit, there was decline in the economy
of UK because of which small businesses got highly affected. Major reason behind this was that
the small firms are considered as the lifeblood for country and Brexit created many issues for
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these companies to survive (Drucker, 2014). Ultimately, this condition of small business
enterprises affected the economic condition of UK. The impact that small businesses have on the
economy of UK are:
Making contribution through employment- In small business enterprises, mainly the
strength of complete workforce is 250 or less employees. Therefore, in accordance with this, half
of the employment is provided by small businesses to the nation. However, in comparison to the
same, large organizations provide more employment opportunities to the people of nation where
they are operating. But, micro organizations are those firms that provide employment to the
people more than that of small businesses but less than the large enterprises. This employment
rate plays a significant role in improving the GDP of nation (Smallbone and et.al., 2010). In the
year 2014, United Kingdom was having approximately 5.2 million small and medium sized
businesses. Actual contribution of small businesses can be seen through this figure on the
economy of UK.
Impact on the economy – SMEs play a significant role in improving the economic growth
of nation. In bringing innovation in the country through businesses, small enterprises have the
major role which helps in making the economy grow and able to compete with other nations.
These firms prove to be highly helpful in providing employment to the people who are
innovative and creative in their fields. Apart from that, there is one more advantage which small
business enterprises give to the large organisations and ultimately help the economy of UK.
Several functions of large organisations are carried out by small and medium sized enterprises
which is known as outsourcing (George and Bock, 2011). Through these reasons, economy of
UK remains stable and grows at a fast pace. While recession in the year 2008, these were small
business enterprises only that took the economy of UK out of that phase. Therefore, overall it can
be said SMEs have a significant role in the growth and development of country.
Flexibility with changing scenario – Economic stability of UK is fluctuating with the
changes occurring in environment at a rapid pace with respect to the innovation and
advancement in technologies used. Apart from that, increasing competition in the market due to
entrance of many firms also, UK economy is not stable. However, small business enterprises are
those which changes with the alteration taking place in the business environment as well as with
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changing needs and expectations of people. This is the reason; even at the time when they facing
issues in business, they can make small profits from the products they are serving (Stokes,
Wilson and Wilson, 2010). While, on the other hand, in large organizations, it is not possible due
to the high investment they have made in the business. Even at the time of economic crisis,
SMEs have capability to make profits remain the economy stable.
Revenue of the sector - As per the UK economy, revenues that small business enterprises
generate is 46% of the revenue which shows that these firms are playing a crucial role in making
economy of UK dependent on it. Therefore, it is clear that SMEs play a vital role in contributing
in the economy of UK and keeping it stable even in the tough situations (Storey and Greene,
2010).
P4. Importance of SMEs and business start-ups in the growth of social economy
For the very first time, a shocking decision was taken by UK, that is, Brexit according to
which nation has decided to leave EU. This decision had some benefits to the economy but, its
negative results are more. With the Brexit, for small business enterprises, it has become quite
difficult to trade with other nations as EU permitted the trade across countries with compliance
of some norms. Therefore, Brexit has affected the SMEs in terms that their profitability declined
to a high extent. However, start-up business and SMEs are the only firms that kept the economy
of UK stable (Grenier, 2011). It can be proved as SMEs are responsible for providing
employment opportunities number if people and thus, directly contribute in the social economy.
Along with that, these businesses are also helping the cooperatives and charitable organization as
these are the associations that provide funds when small business enterprises require the same.
Apart from that, Brexit also created a problem for the economy of UK, that is, funding as
earlier, it was EU that provides funds for carrying out all projects. Due to this reason, large
organisations faced a lot of issues in getting funds. Medium sized firms also bear the issues to
some extent regarding the same. However, in case of SMEs, the issue was not big as they require
fewer funds only for the purpose of carrying out business. This is the major reason, UK is giving
due consideration on small business enterprises that is playing a crucial role in growing the
economy of nation. The fact cannot be ignored that half approximately of the economy of United
Kingdom is dependent on SMEs (Drucker, 2014). Small business enterprises have proved to be
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highly helpful for the UK economy as they kept the economy stable even at the time of Brexit.
Therefore, it can be said that start-up businesses and SMEs highly contribute in the social
development.
P 5 Qualities that makes a successful entrepreneurs. Examples of successful entrepreneurs.
There are many traits and personality features that makes a person successful
entrepreneur. A successful entrepreneurs posses some specific traits and skills that are required
for managing a business in successful manner. Moreover, it is vital that some basic skills and
competence should be posses by the person so that required goals and objectives can be
successfully gained (Kim, 2016). An entrepreneurs that starts a business have high motivational
level and it aids for driving a person towards accomplishment of required goals and objectives of
the business. Jack Ma who started Ali Baba have high motivation level and it drives him to lead
his business towards success. Along with this He posses superb business skills and risk tolerance
and it drives him towards achieving the vision and goals of the enterprise.
In addition to that flexibility and open-minedness that aids for achieving goals and
objectives of the organization. All the traits of Ali baba makes him a successful leader and makes
Ali baba a successful venture. One more successful entrepreneur Marks Zukerberg is a
successful leader who started Facebook and made it a leading organization. He has some good
traits that makes him a successful entrepreneur and versatility shown by a person. Moreover, he
is full of determination and not afraid of taking risk which makes him capable for reducing and
mitigating the risk that are faced by the entrepreneur (Marren, 2007). Moreover, he has high
level of confidence and he craves for learning and it enhances his learning skills and capabilities.
Innovation and creativity improves and new services are offered to the consumers. Both the
leaders posses some specific traits that makes them successful leader and it has provided a
medium for both of them to gain success in life. It is vital that leaders should gives emphasis on
making improvements in their qualities so that they should achieve excellence in their venture.
P 6 Aspects of the entrepreneurship personality reflects entrepreneurial motivation
The business show 2017 has been organized to be held at London excel center on the 17
and 18 may. It is a advantageous opportunity for the entrepreneurs to be part of the show so that
ideas can be generated for expanding the existing business practices and procedures (Cheng,
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2013). This show provides a medium for gaining insight into different entrepreneurship mindset
and it will give advantage to speak with many high profile candidates and business speakers. A
person joining the trade will be successful in observing personalities, traits and mindset and
understanding about what makes a person different from others in entrepreneurship.
Aspects of personality reflects entrepreneurship and motivation and mindset. Personality
of an individual is shaped by family upbringing, lifestyle, culture and along with this differences
in personal motivation are drivers among other factors that provides medium for making
improvements in the personality of candidates (Braun, Latham and Porschitz 2016). An
individual lives in society and people living in the society gives influence on the upbringing of a
person. Values, attitudes and behavior shown by other individuals also gives impact on the
upbringing of a person and developing some specific leadership traits in an individual (Business
and entrepreneurship skills and experience. 2017).
Lifestyle adopted by a person also makes the personality of the candidate and cultural
differences that exist in the society also affects the norms and rules that persist in the society.
Personal motivation is one more important element that gives influence on the overall
development of the individual. Inspiration for achieving excellence in life is a significant factor
that affects the moral and motivational level of an individual to achieve excellence in life (Allio
2006). Entrepreneurship is about starting a venture and making action plans and strategies for
ensuring the growth and success of that venture. It can be observed from above that
entrepreneurial personality gives impact on the entrepreneurial motivation and mindset. In the
trade show it is a great opportunity to observe successful people and see their personality, traits
and understanding about what makes them successful.
P 7 Impact of past experience and personal background
A person's past background and experiences gives impact on the entrepreneurship. It is
assertive that all the business activities that are performed in the venture should be carried out
successfully so that required goals and objectives of the company could be achieved. For
example jack ma who started Ali baba is a successful leader who has got tremendous success
through his venture. A person's educational background and national culture, economic
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circumstances are some important factors that gives impact on the overall entrepreneurial styles
and traits that are shown by an individual (Parnell, 2010).
Along with this it can be seen from life example of Mr Jack Ma that he has completed his
graduation and he worked as a lecturer of English. He had faced many struggles in his life and it
made him a person with high patience levels. In addition to that he has developed a competitive
spirit in his employees to give tough competition to Chinese retail stores. Moreover, he
developed feeling of patriotism in his employees which inspire them to work hard so that the
organization can gain competitive advantage over rival firms (Pawliczek and Rössler, 2016). It
shows that national culture and economic circumstances also lead towards making a successful
entrepreneur. There are many risks that are associated with starting a business and major risk that
is being linked is financial risks that are faced by the organization (Akhtar, Lodhi and Khan,
2015) If a new venture gets successful than rewards are gained in the form of financial revenues
and profitability. Moreover, it is assertive that estimation of risk that are associated with the
business should be done so that positive outcomes can be gained for the business. Past
experiences and personal background gives impact on the entrepreneurship capabilities shown by
an individual.
CONCLUSION
From the above report, it can be concluded that entrepreneurship of a person must be very
strong so that he can take the business in right direction and will make it successful with growing
economy as well. It has been assessed from the report that small and medium sized enterprises
highly contribute in the growth and success of economy as well as in keeping stability. It is
because; these are the SMEs and start-up firms only that kept the economy of UK stable even
when the nation was facing issues due to Brexit. Therefore, report has shown that effective
entrepreneurship as well as SMEs are very important for a country to get developed and grow on
continuous basis.
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