Entrepreneurship Theory and Practice

This assignment delves into the multifaceted world of entrepreneurship. It requires you to examine prominent theories within the field, exploring their core principles, implications for entrepreneurial ventures, and real-world applications. You'll need to critically evaluate different perspectives on entrepreneurship and demonstrate an understanding of how these theories shape entrepreneurial practice.

ENTREPRENERUSHIP

Table of Contents
INTRODUCTION...........................................................................................................................3
Task 1..............................................................................................................................................3
P1 Different type of entrepreneurial ventures and the typologies uses for entrepreneurship.....3
P2 Similarities and differences between entrepreneurial ventures.............................................4
Task 2..............................................................................................................................................6
P3 Contribution of small business and small start-up towards the growth of the social
economics benefits......................................................................................................................6
P4 Explain how important small businesses and business start –ups will contribute to the
growth of the social economy.....................................................................................................8
Task 3..............................................................................................................................................9
P5 Determine the characteristics, traits and skills of successful entrepreneurs, which
differentiate them from other business managers.......................................................................9
P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mind-set..............................................................................................................................10
Task 4............................................................................................................................................11
P7 Examine , using relevant examples obtained through your mini-research, how
background and experience can hinder or foster entrepreneurship. ........................................11
CONCLUSION.............................................................................................................................12
REFERENCES:.............................................................................................................................13

INTRODUCTION
Entrepreneurship defined as the process of designing and lunching running a new
business which is typical start as a small businesses like a start-up company offering a product
process or services for sale. People who do these small businesses are called entrepreneur.
Entrepreneurship is typically focus on the lunching or running a new businesses. Entrepreneur
defined as a person who start a new businesses and organise, manages all his business activities
(Bosma and Levie, 2010). A entrepreneur seen as a business leader and innovator. In this report
different types of entrepreneur venture and how they use different type of typology use in their
businesses are defined. further the impact of small businesses and small enterprises on UK
economics is discussed. The personality of entrepreneur is determine in this report.
Characteristic of mini researches determine the skills of entrepreneurs and differentiate the
business from each other. A practical example is given in this report to describe how the mini
research foster the entrepreneurship.
Task 1
P1 Different type of entrepreneurial ventures and the typologies uses for entrepreneurship
In entrepreneurship organisation format used to establish a new venture and it is
according to several factors like people, legal and tax consequence, social and cultural norms.
There are many legal and forms that entrepreneur employ to achieve their objectives. The new
ventures can be range from small business and consulting services to high growth and high-
impact enterprises. A important contrast for these new ventures is the corporate new ventures.
The Important social enterprise are establish as the non-profit ventures. There are also tow forms
also which include the family owned business and franchises (Bruton, Ahlstrom and Li, 2010).
The other organisation start to operating in the niche market and grows into broader one.
The different types of entrepreneurship:
Small business entrepreneurship: in UK there are overwhelming number of enterprises and start-
ups for small businesses. Theses enterprises provide 99 percent employment to people which
arec not included in government.
1. Small scale entrepreneurship: In small scale business it include grocery stores,
consultant , travel agents, internet commoners store front, hair dresser, plumbers,
electrician. They all run their own business. They hire local employees and family

members in their businesses. The main aim of their success is to make their family happy
and make a profit not to take over the industries . The small industries can provide a scale
to attract the venture capital . They fund their business through family, friends and small
business loans.
2. Scalable start-up Entrepreneurship: The entrepreneur of scalable star-up starts a
company knowing from day one that their vision could change the world. These
entrepreneur attract the financial inverters and venture capitalists for their investment in
businesses. These entrepreneur hire the bast and the brightest employees. Their job is to
find out the effective and scalable job model for business (Dacin, Dacin and Matear,
2010). Their main focus on scale require even more venture capital to flue rapid
expansion.
3. Large company Entrepreneurship: The large companies have the effective life cycle.
Most of the large companies grow through sustaining innovations they offers new
product which are variants around as their core products. Changes in customer taste,
introduction of new technologies legislation, entrance of new competitors can create
pressure for more innovation require large comprises to create new products sold into
new market to new customer.
4. Social entrepreneurship: The focus of social entrepreneurs on creating the products and
services that solve social needs and problems. The main goal of social entrepreneurship
is to make the world a better place not to make the market share or to create the wealth
for the founders. The may be non-profit ,for profit . The main aim of social
entrepreneurship is to crate the social services.
P2 Similarities and differences between entrepreneurial ventures
The difference between small scale business managers and large entrepreneurs can
differentiate according to the scope of their work. The entrepreneurs role occurs n a shorter span
of business lifetime and the managers role occurs over a long time.
Entrepreneurship
A entrepreneur a risk taker and he is willing to the steps whatever are necessary to launch
a new venture. Entrepreneur finds the business idea, studies the market, identifies the customers
need wants and implement the new ideas or plans to offer the ideas to the target market
(Defourny, and Nyssens, 2011). The entrepreneur job has also requires to being able to allocate

the resources to set up the operations which require the some important aspects of a small
business manager role.
Small business management:
A small business manager runs a business with using a diverse set of skills. The manager
coordinates resources to ensures a company meets the customers need which including the
human resources, supplies, operating capital, technologies and facilities. A manager needed that
to change the resources because the some contemporary companies functions entirely and
requiring computers , internet access a website and online data storage.
Serial entrepreneur:
A serial entrepreneur is specialize in starting the company and selling them once that
they have become profitable (Defourny and Nyssens, 2010). A entrepreneur take an idea
calculate the risks and rewards and makes the decisions that the company leads towards the
profit gen rating company. sometimes the company experience the failures but the company also
finds out the new opportunities to use as their entrepreneurial skills such as creating jobs for the
new employees and for other organisations.
Expert manager:
An expert manager is the manager who assist the small scale business in growing and
becoming more and more efficient. The expert manager require looking at many aspect of
efficiency which include organisational destruct worker role and task assignment. Expert
manager have to manage work routine and supplier arrangements. By effective accessment and
copying of these aspect of the company the expert manager can reduce the company operating
cost. The manager can rely on entrepreneur to focus on developing new products, services
locations or markets for the business. The expert manager plays an important role in over all
development oh the enterprise.
Entrepreneur starts the company the manager run them: Entrepreneur have the dynamic
forces behind the planning and lunching of the any new business enterprise. The entrepreneur is
involved in all aspects of the company through out the life span, began with the raw start-up
stage when the venture is little more then an idea. The entrepreneur handle all the issues related
to product designing determining the most effective production methods and find the companies
first customer. His main goal is to keep going and forward loo kin the company growing and
operating efficiently

Task 2
P3 Contribution of small business and small start-up towards the growth of the social economics
benefits
The economics development is concerned with the actions of policy makers and
communities that promote the stander of living and economic health of specific area. The
economics polices goes around the primary component of human capital infrastructure and
environment (Drucker, 2014). The economics strategies based upon the company attraction
logics and their goal is to make corporation in the community and bring along with jobs to
existing employ and new the new members of the company. It is a big advantage for the
company that they can attract the new customers and employ the new workers and attract the
new large business. In recession period the small businesses face many problems. Small business
create their own jobs to replace the lost corporate downsizing. The entrepreneur have to always
reactive against these problems so he can make the better and effective solutions to solve them
(Herrington and et. al., 2010). A attractive economic model is applies to the entrepreneurial,
creative classes of entrepreneurs that will help in start a new businesses.
Contribution: A small business is defined as a business with 100 to 500 worker or less.
According to Small Business Administration Small business represent the 99 percent of all
business firms. In 1995 small businesses generated 64 percent of new jobs and paid 44 percent of
the total his employees and privet payroll.
Economic growth: Small business giving their contribution towards the economics by
bringing growth and and innovation to the community in which the business is establish. Small
business also give their contribution in generating employment by providing employment
opportunities to the people who may not be employable by large organisations. Small business
attract the new talents who have the ability to innovate the new products and ability it implement
the new solutions for the existing problems. Small business also benefited by larger business in
local communities , as many larger corporations depends upon small business for completion of
different types of business functions through out sourcing.
Adaptability to changing climates: Many small business also have the ability to possess
and responds to adaptation of quickly to changing economics environment. Small business are
often customer oriented so they can adjust with changing economic environment. Many
customer always remain loyal to their favourite small business in the recession period

(Oosterbeek, Van Praag and Ijsselstein, 2010). The loyalty of the customer means that small
business have the ability to stay strong during tough times. This ability give strengthen
economies. Small business accumulate less revenue then the larger business corporations. Small
business have the ability of less to loss in the time of economics recession.
Local government offices: when the customer support and invest in local or small
business they are usually giving money back to their local community. An ongoing business will
generate high level of revenue. This means that the local or small business pay higher taxes and
the local tax is also include in this tax. This money is used in local fire department and police
department and as well as school department.
Future Growth: It is not important that the small business always stay small. There are
many large cop rations who started their business as small scale business and now they turn into
large scale businesses or industries. Many small scale business become major players in the
national and international marketplace. It is not important that the large business have the ability
to succeed and earn maximum profit the small business ideas also change the business world
(Welter, 2011). The small business that succeed into the large corporations often remain in the
community in which the business was first established. A large corporation in a community can
help in in providing the employment and give their contribution towards the development of
local economy.
Small business leads towards the communities growth. Small business more flexible then
the large business and more innovative as their large contribution towards local communities
economics growth. The most importantly the small business provide jobs so it creates the more
employment opportunities and add to the tax base.
P4 Explain how important small businesses and business start –ups will
contribute to the growth of the social economy.
Small businesses means they do their work with a minimum capital
i.e. 2,000,000 euro and they have not more than nine employees. Start ups
means a new company which is begin their work to development. They are
new developed so this is the main reason that they have more risk.
There are some importance of small businesses and start ups businesses
mentioned as below:

Job creation: Small businesses and start ups create more job
opportunities to the people of country. They help to reduce unemployment
in the country and provide growth to the economy. Start ups businesses
create more jobs comparison to small businesses (Decker and et.al, 2014).
People who are not able or much qualified for jobs in large organisations,
they will get job in small companies and start ups according to their skills
and abilities.
Economic growth: Small businesses and start ups also help to
provide growth to economy. They provide more employment opportunities
through that countries growth increase. Some large organisations also
depend on them for their business activities. They attract more people who
invent new products and also implement new ideas for existing products.
Adaptability to changing climate: These type of businesses can
easily adapt the changes and also respond to dynamic environment. They
are mostly customer oriented and customers stay loyal at the time of crisis
for them because of good relations. They earn minimum in comparison to
large or big organisations so that they have less lose in the time of crisis
(Clarysse, Tartari and Salter, 2011).
Future growth: Small businesses and start ups don't always remain
only small, they have future growth. Almost all the large organisations like
Puma, Nike etc. has started as small. Now they all are working on national
and international market. Microsoft is also the best example for this. For
growth of any small businesses and start ups, customers also plays an
important role. They stay loyal for businesses which provide them full
satisfaction and right of the small and start ups businesses that they
provide them goods and services of the best quality.
Innovation and creativity: Small and start ups businesses are more
innovative and creative. If they want to gain more customer and also want
to survive in competitive market then they have to create or product
something different or more creative that is different from other existing
product (Carraher and Paridon, 2015). They have to provide products and

services of best quality at the lower prices to the consumers. People more
attract to the new products and they always want to consume that. They
can also use new techniques for production and can also provide new
solutions to the existing problems.
Task 3
P5 Determine the characteristics, traits and skills of successful
entrepreneurs, which differentiate them from other business
managers.
Entrepreneur is a person who is not work for other people in fact
entrepreneur runs his own business and take all the risk and profits or
rewards. Entrepreneur is like a leader or can say entrepreneur has
innovative ideas for the business or any problems (Audretsch, 2012). He is a
risk taker and control all the activities which is related to business. There
are some characteristics of entrepreneur which are mentioned as below -
Risk taker: An entrepreneur is a risk taker, but it is not necessary
that who takes risk will become successful entrepreneur. Entrepreneur
spend their time, money on many unknown persons but entrepreneurs keep
plans with them only.
Self believe, Hard work and Disciplined Dedication:
Entrepreneurs do not take too much tension for anything, they always enjoy
that they are doing. They are much confident about their work and do all
work with dedication. They always believe themselves and disciplined
towards their work.
Money management: Entrepreneurs always manage everything,
they never expect profit from business because they know it will take time
to gain profit. Profit earning take time so that it is necessary to utilize all
the resources properly (Lepoutre and et.al, 2013).
There are also some traits of entrepreneur which are mentioned as below -

Not afraid to take risks: Entrepreneurs never get afraid to take risk
but it is always necessary that they become successful only. Risk can be
financial like some one can start their business with little capital but those
have more fund they never afraid to take risk and spend their money
without think too much.
Creative thinker: Entrepreneurs are creative thinker, they always
think something creative. They always produce something new by their
creativity or innovation.
There are some skills of entrepreneur are mentioned as below -
The ability to train new staff: If entrepreneur wants to produce
something new or if they apply new process then they need to tell each and
every employee that what he need to do or not (Autio, George and Alexy,
2011). It will help to guide employees and they will work correctly.
The ability to focus on your customers: Every one knows that no
business can survive in the marketplace if they have no customer. So it is
necessary that all the products which are produced that can fulfil the need
and want of the customer. Company can also conduct survey to know the
wants and needs of customer.
The ability to deal with failure: It is not necessary that every
businesses achieve success only they also get failed. So it is necessary to
know that how can deal with every problems. If a person is very successful
then it is not necessary they he get achievement without failure, behind
every successful person there is a lot of story of their failure (Carter, 2011).
P6 Assess how aspects of the entrepreneurial personality reflect
entrepreneurial motivation and mind-set.
Entrepreneurial personality means a person who has a combination of
many qualities that make him or her different from others. Every one has
their own motivation, traits, skills, knowledge, attitudes, abilities to deal

with problems. There are some aspects of of entrepreneurial personality
that are mentioned as below -
Passionate: Entrepreneur must have to be passionate towards their
work and has to be clear purpose for the business. Person can be
passionate when something that is discussed is about related to their
interest (Tolbert, David and Sine, 2011). Entrepreneur has to be passionate
because through that he or she can do work hard, also it is necessary for
motivation.
Self – possessed: Entrepreneur has to be strong by self and get
afraid when he or she find themselves surrounded by more talented people.
Always be confident about own skills and capabilities.
Fearless: An entrepreneur is a risk taker so he or she has to be
fearless from anything. An entrepreneur never get feared from any work in
fact he or she takes initiative to do work. Entrepreneur never want to live in
comfort zone in fact he or she wants to learn from failures. If entrepreneur
wants more achievements then he or she must need to take risk.
Flexible: Entrepreneur has to be flexible, he or she has to be enough
capable to deal with challenging environment. If they are flexible then they
can easily adjust in the dynamic environment and also can adjust when
necessary change is done (Decker and et.al, 2014).
Able to sell: Entrepreneur always need to be able to sale, because an
entrepreneur has all quality which is available in many persons. An
introvert person can face many difficulties in this task because to sell any
product, entrepreneur must have a power to convince people. In selling
there is not always a product, there is also a job, if employer want good
person then he or she has to attract people for that job. For this
entrepreneur has to be stay calm, not panic.
Financially prepared: Entrepreneur always has to be prepared
financially, because in business there can be need of finance at any time
(Clarysse, Tartari and Salter, 2011). It does not mean that people who have
more money only that person can be an entrepreneur.

Decision making: Sometimes an entrepreneur has to take decision
in many situations. Problems are uncertain and that can arise any time so
that entrepreneur need to be mentally prepared for any or every situation.
Decisions must be wise and easily understandable.
Task 4
P7 Examine , using relevant examples obtained through your mini-
research, how background and experience can hinder or foster
entrepreneurship.
Entrepreneurs background is differ from one another. When people
understand about the background of entrepreneur then obviously they can
easily understand that how development of firm is possible and how people
can create it (Carraher and Paridon, 2015). Every person has their own
motivation, capabilities, skills, knowledge, experience etc. to deal with
problem and people.
People can motivate according to their behaviour and experience as
well. Behaviour can also be dynamic and change according to the need.
Every person has their own characteristics and traits, and characteristics
also include demographic. Entrepreneurs have their own perception, styles
that how they can make decisions etc. Some people wants to work
according to them but some needs help of other peoples. Entrepreneurs
need some network to get connected with people and to take advantage
from opportunities. Network means family, friends that help entrepreneur
to give some advice, regarding resources etc. Education is also important to
be an entrepreneur, it helps to cope up from the problems. It is not
necessary that a person who wants start new business has formal
education, person can has some good background also. Only degree is not
necessary to be an successful entrepreneur, there is also need of skills,
capabilities, knowledge, smartness etc. (Audretsch, 2012). If person deals
with other people then he or she must have some communication skills. Age

f an entrepreneur defines his or her experience towards both life and
success. Mostly, an entrepreneur starts his or her career between the age
20 and 60.
History of work is also motivate people to be an entrepreneur. More
work experience then more skills and knowledge. Experience can be in any
sector such as finance, marketing, manufacturing etc. Experience can also
works when people start their work in the same sector or industry.
An entrepreneur must possess the listening power and always tend to
learn something new. Listening power is very important for any
entrepreneur. If they want to satisfy their customer then they must need to
know about the wants of their customers. Whenever company produce new
product then they need to know that customer really want that or not, it will
helpful for them or not. If company want more experience which is related
to their customer then they can experience it by giving them discount, gifts
or something special. Through their experience they can build a team which
is passionate and enthusiastic and able to deal with problems. An
experience is always helpful to achieve more success (Lepoutre and et.al,
2013).
CONCLUSION
From the above report it has been concluded that the small scale business contribute
towards the economic development. According to this report several factors like people, legal
and tax , social and cultural norms contributes towards starting a new venture. Small business
provide frame work for the large businesses. In this report it has been concluded that there are
many similarities and differences in small businesses and large business. Small scale businesses
also provide job and employment opportunities. It contributes towards the local business and
give support. Small business have the ability ton succeed and earn maximum profit. Small
business also earn the revenue like large business.

REFERENCES:
Books and Journals
Audretsch, D., 2012. Entrepreneurship research. Management Decision. 50(5). pp.755-764.
Autio, E., George, G. and Alexy, O., 2011. International entrepreneurship and capability
development—qualitative evidence and future research directions. Entrepreneurship
Theory and Practice. 35(1). pp.11-37.
Bosma, N. and Levie, J., 2010. Global entrepreneurship monitor: 2009 global report.
Bruton, G. D., Ahlstrom, D. and Li, H. L., 2010. Institutional theory and entrepreneurship: where
are we now and where do we need to move in the future?. Entrepreneurship theory and
practice. 34(3). pp.421-440.
Carraher, S.M. and Paridon, T.J., 2015. Entrepreneurship journal rankings across the discipline.
Journal of Small Business Strategy. 19(2). pp.89-98.
Carter, S., 2011. The rewards of entrepreneurship: Exploring the incomes, wealth, and economic
well‐being of entrepreneurial households. Entrepreneurship Theory and Practice. 35(1).
pp.39-55.
Clarysse, B., Tartari, V. and Salter, A., 2011. The impact of entrepreneurial capacity, experience
and organizational support on academic entrepreneurship. Research Policy. 40(8).
pp.1084-1093.
Dacin, P. A., Dacin, M. T. and Matear, M., 2010. Social entrepreneurship: Why we don't need a
new theory and how we move forward from here. The academy of management
perspectives. 24(3). pp.37-57.
Defourny, J. and Nyssens, M., 2010. Conceptions of social enterprise and social
entrepreneurship in Europe and the United States: Convergences and divergences.
Journal of social entrepreneurship. 1(1). pp.32-53.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Herrington, M., and et. al., 2010. Tracking entrepreneurship in South Africa: a GEM perspective.
Graduate School of Business, University of Cape Town.
Lepoutre, J. and et.al, 2013. Designing a global standardized methodology for measuring social
entrepreneurship activity: the Global Entrepreneurship Monitor social entrepreneurship
study. Small Business Economics. 40(3). pp.693-714.
Oosterbeek, H., Van Praag, M. and Ijsselstein, A., 2010. The impact of entrepreneurship
education on entrepreneurship skills and motivation. European economic review. 54(3).
pp.442-454.
Tolbert, P.S., David, R.J. and Sine, W.D., 2011. Studying choice and change: The intersection of
institutional theory and entrepreneurship research. Organization Science. 22(5).
pp.1332-1344.

Welter, F., 2011. Contextualizing entrepreneurship—conceptual challenges and ways forward.
Entrepreneurship Theory and Practice. 35(1). pp.165-184.Decker, R. and et.al, 2014.
The role of entrepreneurship in US job creation and economic dynamism. The Journal
of Economic Perspectives. 28(3). pp.3-24.