Entrepreneurship: Factors & Impact

This assignment delves into the crucial role of entrepreneurship in economic development. It examines various demographic and psychological factors that influence entrepreneurial ventures. The text also highlights the significant impact of entrepreneurship on a nation's economy and overall progress.

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION.....................................................................................................................................3
TASK 1....................................................................................................................................................4
P1 Types of entrepreneurial venture and typology of entrepreneurship.........................................4
P2 differences between various entrepreneurial ventures..............................................................5
P3 Impact of different size of venture on economic development...................................................6
P 4 Importance of small business in growth of social economy........................................................7
TASK 2...................................................................................................................................................8
P5 Traits of successful entrepreneur................................................................................................8
P 6 Role of personality in entrepreneurial motivation......................................................................9
P 7 The person past experience hinder and foster entrepreneurship..............................................9
CONCLUSION.......................................................................................................................................10
REFRENCES..........................................................................................................................................10

INTRODUCTION
The entrepreneurship is the development of the business activities and organizing
them to set up a successful enterprise. Entrepreneurship is the result ability to access incurred
risk and managing and organising operations of the business with innovative ideas and
leading them to a successful business. The entrepreneurship enables a person to work
passionately and confidently with developing creativity in market place.
Entrepreneurship is having great opportunities of growth and high rate of contribution
in the world economy. The entrepreneurship can also be defined as exploitation of
prospective opportunity for turning a firm into successful organisation. There are two types of
the entrepreneurship i.e. opportunity entrepreneurship which is defined as to grab the
opportunity to fulfil the gap between market requirement while the necessity
entrepreneurship is defined as the person is not having another option other than being
innovative and bearable for risk to establish profitable enterprise (Neck and Greene, 2011).
In this report the various types of the entrepreneurial ventures are linked with the
typology of entrepreneurship. This study calculates the impact of small business and
entrepreneurship on the economy of the country and how they contribute in the growing
economy and the growth of nation as well.
TASK 1
P1 Types of entrepreneurial venture and typology of entrepreneurship
The entrepreneurial ventures are the start-ups or the business with new innovative
ideas. The entrepreneurial ventures can be differentiated on the basis of different prospects.
The ventures are divided in different types on the basis of public and private firm, on the
basis of the customer base and purpose of the start-up, on the basis of size of enterprise etc.
the different type of entrepreneurial ventures are defined below:
 Survival Ventures: these businesses are established by the person to accomplish the
basic need of the family. The entrepreneur work passionately to earn for the survival.
These business can also be categorised as small business as they are concurring only
the local market. These types of ventures earn profit on the basis of mouth to mouth
marketing and developing relationship with the customers. The funding for these
business are carried out from the informal loans and from other family members and
relatives. These firms are not registered and work informally in the local region.
These businesses are developed by necessity entrepreneurship. The profit margin of
these enterprises is less as compared to other ventures and they are working in highly
competitive market (Luiz, 2011).
 Lifestyle Ventures: these are next to the survival ventures. These ventures are
developed and managed by regular maintained and with a workable business model.
This venture provides a source of constant income for the entrepreneur. The business
is working in local area premises and less no. of employee. The no. of staff in the
business is almost constant.

 Managed growth Ventures: these organisation develop on changing working model
according to occasion, new product and new market. These build continuous growth
in business by expanding business to new market, new environment, new location and
regions. This venture shows constant growth with change in time.
 Aggressive growth venture: these ventures shows exponential growth with
development of new technologies and bringing innovation in the business. These
ventures are developed from opportunity entrepreneurship. This type of venture
shows huge growth and profitability leading to large contribution in growth of
economy in the country (Lee-Ross and Lashley, 2010).
Different type of entrepreneurship:
 Venture financing entrepreneurship: this entrepreneurship is development of various
innovative techniques to establish financed successful venture.
 Corporate entrepreneurship: this is developed to manage a large origination. This
includes various innovative techniques to develop such a large business organisation.
 Social entrepreneurship: this result in sustainable development with the creative ideas
in business approaches. This is established t solve social issues and problems for
welfare of society instead of making earning profit s as primary objective.
 Women entrepreneurship: development of successful enterprise by the single women
or the group of women with manageable qualities leading to the growth of the
company (Karlan and Valdivia, 2011).
 Global entrepreneur: this is developed from the well establishes existing company
leading to the expansion of business globally with help of motivated workforce and
innovative ideas.
 Public sector entrepreneurship: Involvement of private entrepreneurship or the
entrepreneurs in the public sector resulting from the various public policies defined by
the government.
P2 differences between various entrepreneurial ventures
There are many similarities and differences are shown by various enterprise either it is private
sector enterprise or public or social. There are also differences between small, medium and
large enterprise.
Public Enterprise Private Enterprise
1. The main objective of public
enterprise is to provide services to the
people of country.
These enterprises are developed to gain more
and more profit primarily.
2. It decreases the accumulation of
money only in hand of owners.
It results in wealth creation only for the few
no. of owners of the enterprise
3. Public enterprise stops the uneven
growth of economy and the regional
Develop imbalance in the local and regional
firms.

growth.
4. It balances the growth of various
industries and economy.
The make use of the needs of consumers and
engaged in the exploration of their behaviour
and interest to make profit.
5. The public enterprise does not
involve the making unlawful
utilisation of consumer and employer
needs.
In order establish risk management gains the
prospective opportunity is having deficient of
the capital reserve.
6. The public sector enterprise is having
large reserve of findings t carry out
large development projects.
The enterprises are engaged in activities
related to personal benefits only.
The difference between private sector enterprise and social enterprise are as follows:
Criteria of comparison Private Enterprise Social Enterprise
Mission of enterprise  Creation of wealth for
owner
 creation of social
values
Values of the firm  the enterprise is
corporate in nature
 A value of the firm is
corporative as well a
social in nature.
Key stakeholders  Owner
 Investors
 Customers
 employers
 Director
 Funder
 people of society
 communities or
beneficiaries
Target customers of
enterprise
 Consumers and the
other businesses
 Community and
society
Distribution of profit by the
company
 Only for the
shareholders and
owner of company
 The benefit is for the
social peoples.
The different kind of ventures are also divided on the basis of size f enterprise like micro,
small, medium and large organisation (Islam, and et.al., 2011). The small and medium
enterprise contributes in the UK economy to the large extent but there is no definition about
the SME sector. By some of the statics developed by department of business states that the
SME is firm having less than 250 employees and annual turnover is up to 100 euro. UK
government defines various ventures according to Eu definition that micro business caters
their business with less than 10 employees and turnover of approximately less than 2 million
euro. While the small sized ventures are defined as the firm is having turnover of 10 million
euro and the no. of employees working with organisation is less than 50 (Gorgievski, Ascalon
and Stephan, 2011). The medium organisation is having staff about 250 and average annual
turnover of the business is under 50 million euro. So, in conclusion to this same can be
defined as the employee count between 50 to 250. The annual turnover of SME are from ^
million to 5o million euro. Over the 99% of UK businesses are the SME enterprise which
having large contribution in the growth of the country. The SME in UK provides employment
to over 12 million people enables them to spend their life in prosperity and with self-esteem.
P3 Impact of different size of venture on economic development

The different size of firms affects the economy in various manners. Like the economic
growth rate is shown differently in various countries like by different ventures. The large and
high technology manufacturing results in producing 18% growth in Germany. The SME are
more involved in industrial sector d manufacturing sector as compared to engaged in service
sector. The analysis of economic growth and various regions can be analysed quantitatively
which relates the results with actual facts and figures. Like for the instance the difference
between percentage of GV and the employment rate defines the more value addition in the
country economy. The micro business is shown expansion from 2008 to 2012 of
approximately 172% growth.
The various kinds of ventures show huge expansion and contribute differently in
regional and nation level economy. The local firms or the small business are the business
proves their services to local services. This helps in contributing to the growth of that
particular area. This will leads to increase employment and better opportunity o growth for an
individual this will ultimately affects the economic growth (Fassin, Van Rossem and Buelens,
2011).
The large ventures and the SME contribute to the development of the country by
various means. The large organisation cater their business in various states of country an also
globally that leads to the technological enhancement in the country and provides means of
application of different innovative ideas that results in economic growth. The UK country is
having lots of SME companies operating in the country which leads to employment and the
reserve for the capital growth and development of the country.
The small business contributes in the development of market place in the regional
area. This result in accomplishment of basics needs of the person and the members of the
society. While the large enterprises are involved in development of an huge market base and
an health competitive environment nationally and globally for the development of the
business and the employees and results in enhanced capability of the workforce of the
organisation. The large enterprise is having huge amount of profitability that is the source of
revenue generation from taxation for the country development. The business leads to the
growth of economy of country and builds a capital surplus for further growth.
P 4 Importance of small business in growth of social economy
The small business is having important role in growth of society and social economy.
The micro business is approximately contributing to the 96% o0f all business of the UK in
2013. The small business is the firm with the employee count between 0-9. There are 4.6
million organisations which are small business in nature (Dennis Jr, 2011). The UK economy
is affected by the small business both at local and national level. The micro businesses
contribute to the 32% of employment rate and the 18% of turnover in Britain market
individually.
 Contribution: the SME contribute to eh innovation in society. The SME made large
contribution to social economy resulting in adaptability and employment in that area.
The SME works with wider innovation, process and product innovation that leads to

the growth of enterprise. The innovative product increase saes to 10 % and the
employment rate to 0.7%. The small business develop an adaptive market which the
social economy and motivates the society to adapt with innovative change for overall
development.
 Competitive: Small business leads to high competition in the market as the no of
small firms are larger and easy to establish. This leads to development of an good
competitive market that attracts the investor from other region and nations in the
country. The competitive market helps in expanding the b business faster. The diverse
services provided by the small business help in fulfilment of all needs of society
appropriately. The small enterprise helps in development of regional market and
provides opportunities to expand business in other regions also.
 Employment: the small business is having major contribution in generation of
employment in the specific locality and the region. The job creation rate according to
the UK government showed between 1998 to 2010 are in total 2.61 million in which
870,000 jobs are provided by the small business firms to the social economy
(Chittithaworn and et.al., 2011).
 Adaptability: the SME leads to adaptability characteristic development in the social
economy. This helps in development of the members if society and businesses
according to the required changes and with change in any factor of external and
internal environment. The business contributed largely to adaption at the time of
financial crisis if 2007 and 2008 in UK country. Tis characteristic of the small
business leads to development of people from the adverse condition of crisis by
implementing entrepreneurial activities in business.
 Economic growth: the small business leads to development of society through growth
of economy and enhanced capability to fulfil the society needs efficiently. The small
business involves development of suppliers, customers, vendors and competitor with
growth of the firm that ultimately leads to overall development of social economy of
the region and nation.
TASK 2
P5 Traits of successful entrepreneur
Entrepreneurship is a quality of the person that is not same in all people. The
entrepreneurial characteristics differ with location, upbringing, social class and some internal
traits and educational level from person to person (Carraher and Paridon, 2015). Entrepreneur
is having some qualities that helps him in establishing a successful enterprise. Some of the
characteristics of the successful entrepreneur are as follows:
 Higher determination: The person is having determined traits about have goals. The
individual is having well defined gaols and objective of towards the growth of
organisation. An entrepreneur is determined about his success path. The owner of the

apple company is determined to the work and the mission of the organisation so that
he is able to establish such a large successful enterprise.
 Risk taking ability: the entrepreneur is connected with the innovative ideas and
catering new market with new products. This is having a large risk of failure. But the
entrepreneurs are having large risk bearing ability that makes them different from
other business man. Shark tank’s makes a profit from the sale of 66 million dollar real
estate that is having risk loan of 1000 dollar that was later on turned into 5 billion
dollar.
 Failure is part of the life: The entrepreneur knows that failure is necessary for the
growth of business. They learn from failure and come up with new possibilities of
growth. The entrepreneur is consistent with work and counter failure with new ideas
that leads to him success. Like founder of virgin mobiles founds lots of the failure in
business like virgin cola.
 Passionate: Passion of the person contributes in the determination of the individual.
EO of apple is consistent and passionate about his work and establishes a successful
business (Carland, Carland and Stewart, 2015).
 Management skills: IT is necessary that an entrepreneur should be good manager. He
is able to manage money and time with priorities to run a profitable business. All
thermal business are having low fund availability, they have to manage their task with
the priorities.
 Ability to sell and promote: every entrepreneur is having good skill of expressing
their ideas in practical market and executes them. They are confident about the
promotion and sale of product. Steve jobs said that if he is giving a good product than
the customer can pay for it. This is the ideology of the Steve jobs that he can lead the
market and bring customer loyalty for their product.
P 6 Role of personality in entrepreneurial motivation
The personality and the motivation of enterprises are affected by the various factors.
The personality of an individual contributes in the person motivation to the large extent. The
personality upbring is dependent on the lifestyle, family culture, society, age, gender and
education. Like for instance the person belongs to the business running family is more likely
to start his own enterprise. The person belonging to such family is having inherited
characteristics from the family environment like how to counter with contagious problem
effectively (Burns, 2010). The entrepreneurial motivation is dependent on the level of
education. If person is having knowledge about various technological advancement, new
opportunities and the management knowledge than the individual are more motivated
towards entrepreneurship.

The factors affecting the entrepreneurial motivation is dependent on various aspects
that can be categorised as demographic factors and the psychological factors. The
demographic factors includes the gender preferences, age preferences, social and family
culture, lifestyle can be motivate force for the entrepreneur. While the psychological factors
like ability to bear risk, passionate, confidence, creativity also contribute largely in the
upbringing towards the path of entrepreneurship.
The age group affects the motivation level. As the youngsters are more motivated
towards starting their business and earning more and more as compared to the other adult age
person who is likely to follow his daily routine of basic earnings. The youngsters are more
motivated to trying out new ways to carry out task successfully. This contributes in the
motivation of the person (Bridge and O'Neill, 2012). While the lifestyle of the individual is
motivating force for the entrepreneurs. As the person is having habit of on-going increasing
demand and to fulfil demand the person has to go for new innovative ideas. The reason is
desired to achieve various kinds of social needs, basic needs and self-esteemed needs that
leads to passion and determination towards work. All these personality aspects of an person
influence the motivation of the entrepreneur.
P 7 The person past experience hinder and foster entrepreneurship
There are various examples of successful entrepreneur who are having some past
experience and the personality to development of the enterprise. The person like Steve jobs,
mark juckerberg, CEO of virgin airlines, Thomas travel group etc. all face affects from their
past experience and knowledge. Like after the financial crisis of 2007 past experience of
Thomas cook group helps in developing business in adverse conditions successfully all these
helps in the development of entries (Blackburn, Hart and Wainwright, 2013). The Mark
juckerberg is having personality of talking initiative from his school culture that helps him in
becoming successful entrepreneur. The Steve jobs faces various problems in developing the
business, he have to leave his own start up at some time that leads to the overall personality
development helping in the creativity and important for the enterprise that the firm cannot be
succeed without him. All the culture, past experience affects the development of entrepreneur
to large extent.
CONCLUSION
Entrepreneurship is activities that are carried out to manage and establish an
successful business and proved services to the market to earn profitability. The entrepreneur
is having full of creative ideas and risk bearing ability. There are various factors which
affects the characteristics and motivation of entrepreneur like family upbringing, social
culture other demographic and psychological factors. The entrepreneurship is very important
for the growth of economy and the country.

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