Entrepreneurship and Informal Economy

The assignment delves into the crucial relationship between entrepreneurship and the informal economy. It examines how entrepreneurial activities contribute to economic growth and development within the informal sector. Furthermore, it analyzes the specific challenges faced by entrepreneurs operating in the informal economy, such as lack of access to formal finance, regulatory hurdles, and social stigma.

ENTREPRENEURSHIP

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types of entrepreneurial ventures and explain how they relate to the typology of
entrepreneurship..........................................................................................................................1
P2 Similarities and differences between entrepreneurial ventures.............................................4
TASK 2 ...........................................................................................................................................5
P3 How micro and small businesses impact on the economy.....................................................5
P4 How important small businesses and business start-ups will contribute to the growth of the
social economy............................................................................................................................7
TASK 3............................................................................................................................................8
P5 Characteristics, traits and skills of successful entrepreneurs.................................................8
P6 How aspects of the entrepreneurial personality reflect entrepreneurial motivation and mind
set................................................................................................................................................9
TASK 4..........................................................................................................................................10
P7 How background and experience can hinder or foster entrepreneurship.............................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
.......................................................................................................................................................13

INTRODUCTION
In modern era, entrepreneurs are the person who start their business for archiving
financial benefits in which they take more risk for enhancing their profitability in market place.
Without taking risk they can not able to achieve competitive advantage. In this entrepreneurship
play important role in development of economy growth of the country (Entrepreneurship, 2017).
It is an effective process to develop as well as set up new business in the market in which they
provide quality services to their customers to achieve positive outcomes in appropriate manner.
Along with this, government also provide their support to entrepreneurs to start business which
directly contribute in overall economy growth by providing job opportunities to their local
people. They also provide innovative products to their customers to achieve their higher
satisfaction. Present report is based on various entrepreneurial ventures and its typologies. It
mentioned similarities and difference between entrepreneurial ventures which contribute in
overall growth of the economy. Along with this characteristic, traits and skills of successful
entrepreneurs is also mentioned in this report. Person background and past experience is also
discussed in this project.
TASK 1
P1 Different types of entrepreneurial ventures and explain how they relate to the typology of
entrepreneurship
In today's business environment, a person who start a new business with the aim of
achieving better success at market place is called as entrepreneurs. They provide as well as set
their quality products to their customers in order to achieve higher success and also increasing
their living standard which impact on overall growth of the economy. In operating new business
an entrepreneur take various risk to attain positive results. In which they deliver quality services
to their customers in order to get their higher success at market place.
Entrepreneurs are the person who start their new business for the purpose achieving
financial gain in appropriate manner. In this they take financial risk for converting into more
profitability in most effective manner. One of the main aim of entrepreneurs is to achieve higher
success by providing new and innovative products at market place. It helps in satisfying
customers need and also improve their living standard.
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Concept of entrepreneurship: It is an effective and important process which helps in
developing the economy of the country in appropriate manner. In this the person set their
business and various operation activities to achieve financial gain in order to get higher success
at the market place (Brandstätter, 2011). They take various risk for operate their process in which
they achieve better results. There are some various entrepreneurial venture which include four
aspect at the market place are as follows: Small business entrepreneurship: In this type of activity, an entrepreneur operate their
business at low level because they invent limited financial resources for archiving
appropriate profits. In which they have limited financial support so that some they fails in
inviting large number of customers and investors in their process. That it why they take
financial help for their family and friends to operate their business (Szirmai, Naudé and
Goedhuys, 2011). The main purpose of this type of business is to fulfil their basis
requirements in effective manner. For managing their business activities at small scale
they include their family and friends so that they easily operate their business in
appropriate manner and get desirables profitability for their daily purpose. Travel agent,
plumber, electricians and various small entrepreneurs are the main example of small
business enterprise in which they provide better services to their customers in order to get
their satisfaction which helps in making effective profitability on their regular basis. Scalable start- up entrepreneurship: This activities of the business set their business
with new and innovative products and services because the main aim of his business is to
invite as well as attract large number of customers. They also define new ideas to invite
various investors to invest their money in this business so that they easily achieve higher
profitability in effective manner. They include skilled and experienced employees in their
business to operate their operation process which assist in achieving profitability in the
market. They take more risk for looking higher success which helps in improving their
activities in appropriate manner. The main purpose of this type of business is to capture
large market share form its rivals by providing attractive and quality services to their
customers. Social entrepreneurship: This type of business helps in satisfying society needs and also
resolve all the social problems in appropriate manner. The main purpose of this type of
business is to increase overall growth of the economy by delivering quality services to
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their local people. In which they easily improve their living standard. This can be
profitable and non profitable organization because the main focus of this business is to
increase social welfare and resolve of the society problems in appropriate manner.
 Large company entrepreneurship: This type of business operate their business at large
scale in which they take various risk for establishing their operating activities (Kiss,
Danis and Cavusgil, 2012). The main purpose of business is to capture large market share
by providing quality services to their customers and for attain their higher satisfaction
which directly contribute in enhancing overall profitability of the company in appropriate
manner. They undertake various reattaches to evaluating customers taste and preferences
towards the company products and services because in today's business environment taste
and preferences are continuously changed (Bruni, Gherardi and Poggio, 2014). So that
they consider their demand in order to get their satisfaction by delivering innovative and
quality products. They focus on generating larger profitability so that they invest more
funds to produce quality services to their services user which directly contribute ion
overall development of the economy growth.
Along with this, there are various entrepreneur typologies which helps in improving the
economy growth of the country ion appropriate manner. All these helps in improving overall
performance of the business. All are as follows: Serial entrepreneur: This type of person operate their business with new and innovative
ideas in which they always tries to generate more profitability. They enter in market for
operating their business but they give their all responsibilities of activities to another
person for operating as well as running the business in effective manner. They run and set
multiple business at the same time but different location to capture large market share. Social entrepreneur: The main aim of this type of business men is to improve standard
of living of the local people. For this they provide better services to the local people and
also provide better solution to resole the problems in effective manner. The main focus
of this business is to sole customers problems and define better social welfare. In this
they provide new and featured products and services to get higher customers satisfaction. Female entrepreneur: A female person who operate and control all the business
activities is called as women entrepreneur. In this activity they take initiatives to operate
their business in order to achieve more profitability. Along with this, the government
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authorities also mentioned that a female entrepreneur have capability to run their own
business because they having 51% interest at their capital which is higher from the male
entrepreneur (Schaper, 2016). They have more patience to resole all the problems in
effective manner and they also provide better support to their employees in order to
achieve success at market place.
 Male entrepreneur: In the world the number of male are owner of the business rather
than females. They take more risk to operate their business and also easily intact with all
kind of peoples to set their business. They generate more profitability by operating their
business at large level (Parker, 2011). Some time they are more aggressive for maintain
their overall performance of the business at market place which helps in achieving
competitive advantage in the market place.
P2 Similarities and differences between entrepreneurial ventures
All type of entrepreneurs are the important part of the business who all take various risk
for achieving better financial gain in the market place. All are having their own personalities and
responsibilities to set their business because all are define their ideas and opinion which is totally
different form others. In this context, similarities and differences between entrepreneurial
ventures are as follows:
Social ventures or business similarities Serial entrepreneur ventures similarities
The main purpose of social entrepreneurs is to
introduce new and innovative process as well as
ideas to set their business at market place.
They set their business operation for resolving
all the social problems is the local peoples to
increase welfare.
They also make innovative quality products to
their customers in order to generate more
profitability in effective manner.
Main similarities of this entrepreneurs is to
invite large customers by providing quality
services.
Difference Difference
The main purpose of this entrepreneurs is to
create better welfare for the local people which
helps in increasing economic growth.
Social entrepreneurs are based on the
improving economic growth in which they
The main aim of serial entrepreneur is to
generate large profitability by providing
innovative products and services to their
customers.
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provide better solution to resole all the
problems. This can be profitable and non
profitable firm.
This type of entrepreneurs are based on
profitability organization (Madhok and
Keyhani, 2012).
Male entrepreneurs businesses similarities Female entrepreneurs business similarities
Male entrepreneurs have capability to manage
all the operating activities of the business in
effective manner (Flamholtz and Randle,
2012).
Male entrepreneurs set their business with their
experience and take more risk to achieve better
goals and objectives.
Female entrepreneurs also having quality to
operate their business activities to generate
more profitability in appropriate manner.
They are able to control whole activities of the
business process in which they easily initiate to
attain positive results.
Difference Difference
Male entrepreneurs are more aggressive as
compare to female.
Men easily take financials risk and also arrange
all the activities in effective manner.
Male entrepreneurs are task orienter and also
focus on completing all the task in effective
manner.
Male entrepreneur are easily interact with other
and also promote themself in front of larger
people.
Male entrepreneurs having more knowledge
about the technical field.
Female are more polite and also cooperate their
employees at the workplace.
They are best motivators in which they easily
influence their employees towards the work.
Female focus on making quality services which
helps in maintaining economy cost in effective
manner.
They are more careful for their employees in
which they provide better services so that they
easily completed their task and achieve better
results (Choi and Majumdar, 2014).
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TASK 2
P3 How micro and small businesses impact on the economy
In present scenario, small and micro business play significant role in enhancing the
growth of economic of the country in which they provide better job opportunities to their local
people which leads ion improving their living standard in effective manner. They easily invite
large number of investors by providing new and innovative services to their customers which
helps in achieving better success at market place.
Along with this, SME is one of the important for every country in which they provide
better opportunities to the country in order to develop economic growth in effective manner. It
dived in three aspect which are as follows:
 Micro business: These type of business operate their business at micro level and they
have limited fund to execute their business at market place. They include 10 to 15
employees in which they get financials helps form banks for improving their services.
The main purpose of these type of business is to generate more revenue by increasing
their sales volume.
 Small business: These type of business are operate their activities at small scale in which
they include limited employee. They execute their operational activities to invite large
number of customers by providing new and innovative products and services. The main
aim of these type business is to capture large market share.
 Medium business: It is related with the medium level which provide better investment to
the partnership firm in order to execute their operational activities in effective manner.
They include less than 250 employees in which they achieve approx $50 million in every
year.
Small business enterprise is more effective activity which play important role in
developing overall economy growth because it define various opportunities to the local peoples.
It helps in improving the standards of living by providing better services to their customers in
appropriate manner. They provide quality services to the local people which aid in developing
their knowledge and skills. It define new and innovative ideas to invite as well as attract large
number of customers towards the company and its services. Along with this, there are various
characteristic of business enterprise which helps in achieving financials profitability in
appropriate manner. All these are as follows:
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Illustration 1: Micro and small business employment
(Source: Lisa Dougherty Choux, 2014) Sole proprietorship: This type of business held by the single person and all also operate
their business without any legal distinction. In this business all the profit and loss are not
share in the members because the owner of this business is single person. They operate
their business on their own responsibilities and also take quick decision. The man
purpose of this business is to generate more profitability in appropriate manner.
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 Private companies: It is also effective business which is control as well as operate by the
private person and also take all he decision on their basis. This type of company does not
sale their share in front of public (Webb And et. al., 2013). Partnership: It is effective agreement in which two or more person work together and
share all the profit and loss in effective manner. For this they sigh an agreement which
called partnership deed in which they define all the terms and condition for doing a
business in order to achieve profitability (Bozeman, Fay and Slade, 2013).
 Franchising: It is an effective process in which one party sign agreement to transfer their
owner ship to other person. In this franchiser give ownership to franchisee to use their
trademark for sell the products in market place.
Hence, all these are provide better opportunities to their local people in which they easily
improve their lifestyle and also contribute in economic growth. Some points are define its impact
on the economy are as follows: Increase GDP: One of the important advantage of small business enterprise is to increase
overall GDP rate which helps in rising the capital. It also define better benefits to the
business in order to maintain their sustainability at the market place and also capture
large market share. Improve living standard of society: With the helps of small business enterprise people
easily improve their living standard by using quality service in their life. In this company
provide better knowledge and opportunities to their local peoples so that they fulfil their
basic needs and provide higher satisfaction. It directly impact on economic growth in
effective manner.
 Provide job opportunities: It is more effective benefits of small business which helps in
providing employment to unemployed poles in which they easily satisfy their daily basis
needs. It also increase their skills and knowledge so that they show their talent in front of
the world and get better outcomes.
P4 How important small businesses and business start-ups will contribute to the growth of the
social economy
Brexit is one of the famous and popular term in which UK were separate from EU which
directly impact on overall economic growth. As per this UK face various problems to set their
business in effective manner. For this government provide better support top them in order to
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improve their businesses. In this context one of the biggest opportunities of Brexit for UK, is to
increase job opportunities to the local people in which they easily take their decision and
improve their living standard which directly impact on economic growth of UK in positive
manner. On the other side, the negative as well as biggest threat of Brixit on UK is that the
overall system and legal tram totally changes which is difficult in effectively manage.
Small business and start-ups play important role in development of economy growth in
effective manner because it helps in providing better opportunities to their local peoples in order
to improve their living standard. In the globalisation, setting new business is very easy because
in this the government also provide their support (Keat, Selvarajah and Meyer, 2011). This type
of business provide better stability in he economy. In this government also play important role in
which they organize various events and programs to develop small, medium and large business
in effective manner. Along with this, Brexit is one of the popular term which exist in UK. In this
Britain get separated from EU which largely impact on overall performance of the economy.
Because all the small business and entrepreneurship performed in Britain which helps in
improving the economic condition. But at the time of Brexit, Britain get separate from the
Europe in this they face various issue which create negative impact on overall growth of Britain
country. For resolve this issue government provide better support to the small business which
helps in increasing the economic growth in effective manner (Hall and et. al., 2012). With the
help of this they easily improve living standard of the local people by providing better job
opportunities. Along with this, there are some benefits of small business enterprise on economy
growth are as follows:
 Start-ups helps in providing various opportunities to develop people standard of living
which directly impact on overall economy growth in positive manner.
 It also helps in generating more revenue by providing quality services to their customers
in order to get their higher satisfaction.
 It also aid in eliminating the gap between rich and poor people.
TASK 3
P5 Characteristics, traits and skills of successful entrepreneurs
Characteristic, traits and skills are one of the important aspect which helps in becoming a
successful person. All these skills are differ from another person because all are having their
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own characteristic. In this context, characteristic of two successful entrepreneurs such as Mark
Zuckerberg and Bill gates. Mark Zuckerberg business men because they having their specific
quality which helps them to achieving success in over the world. Hard working: It is one of the important characteristic of entrepreneurs. In absence of
hard working nobody achieve best target. It helps in improving the knowledge for deal all
kind of situation. Risk taking: Mark Zuckerberg take more risk in their operating process of the business
for generating more profitability. They believes that without risk no body can achieve
success. With the helps of taking risk people change its impact ion positive results. Motivation and passion: It is one of the important traits of successful entrepreneurs
because it helps in completing all the task in systematic manner (Andersson, 2011).Mark
Zuckerberg easily complete their work with because they get motivated then they accept
all the challenges and with the passion they easily get positive results by taking best
decision. Self confidence: It is more important for the business men because in absence of self
confidence they can not able to completing all the task (Ahl and Marlow, 2012). So that it
play important role in increasing the performance and also manage their qualities in
effective way which helps in resolving all the complexity with the company.
On the other side there are some another traits and skills of Bill Gates are as follows: Communication skills: Bill Gates having better communication skills in which they
easily interact with their employees and provide them better guidance to maintain their
positive performance at workplace. With the help of this they easily get competitive
advantage in effective manner.
 Money management: It is important for the business men to manage their money so that
they make as well as implement the plan for resolving all the future obligation in
financial term. Bill Gates successful entrepreneurs having this characteristic which helps
them to achieving the best success a market place.
P6 How aspects of the entrepreneurial personality reflect entrepreneurial motivation and mind set
Personality define individual attitude, mind set and thinking of the people in which they
accept all the challenges in effective manner. In this context, every entrepreneurs having their
own skills and capabilities which is totally differ from others (Arogundade, 2011). In today's
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modern era, various types of events and training programs helps in maintaining as well as
develop the personality of the person in appropriate manner. Along with this, every
entrepreneurs complete their task in effective manner and as per their skills and knowledge so
that it is more important that they having positive mind set in order to achieve positive results.
There are some features of entrepreneurs personalities which affect the mind set. All these are as
follows: Upbringing: It is one of the best features which helps in adopting best qualities form
their parents because they are first teacher and teach about their life. It helps in taking
decision in effective manner. Lifestyle: It define person culture and lifestyle which is differ from another person. It
helps in building the positive perception and mind set in order to accepting all the
complex situation and also influence in achieving better results. Experience: It is also important which helps in improving the quality performance of the
person. Positive experience aid in boost up their mind set (McMullen and Dimov, 2013). Culture: It is more important that directly affect the entrepreneurs mindset and way of
thinking. It helps in defining positive mindset in order to accepting complex situation
(O'Connor, 2013).
 Environment: This factors of environment affect the entrepreneurs personality because
an individual lives in surrounding in which they react their feelings and define their mind
set in order to get positive results. If it is favourable of the company then they easily
enhance their personality.
Ocean acronym: It is one of the important aspect which helps in evaluating the overall
personality of the person which helps in making a successful entrepreneurs. It include five
dimensions are as follows:
 Openness: It define person culture, originality and intellect which is related with the
emotion, ideas, variety of experience and many more which directly impact on overall
personality of a person.
 Conscientiousness: It define self discipline, aim for achievement which helps in
motivating the person towards their personality which directly impact on overall
performance of the business men.
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 Extroversion: It define positive emotion of the person, surgency, energy which helps in
motivating the entrepreneurs and also make successful because it directly impact on their
mind set and personality.
 Agreeableness: It is related with compassionate and cooperative with other in order to
improve their performance level and also set positive mind side towards the decision
making process.
 Neuroticism: It is a negative side which define anger, depression, instability in emotions
which negativity impact on individuals personalty and their mind set.
TASK 4
P7 How background and experience can hinder or foster entrepreneurship
Background and past experience of person affect their qualities because every individual
belongs to different culture. All these lay important role in making successful businessmen in the
market place. A person influence their past experience which can be positive as well as negative
manner. Background of the person define their attitude, culture and values which helps in
building the positive aspect for an individual. If the person past experience is negative then they
demotivated and also think negatively. On the other hand positive past experience helps them to
evaluating positive as well as better quality of the person. In this context, Bill gates is one of the
best example he is richest person in overall world. He also belong from small town in which they
increase their skills and get best opportunities to become a successful men. He work hard for
their bright future. Now he is owner of Microsoft company in which they generate more
profitability and take strong place in the world. On the other hand second example of successful
entrepreneur is Mark Zuckerberg. He is founder to Facebook in which all the peoples are
connected with each other and share videos. The main entrepreneurial qualities are their culture,
family support, social network and many more which helps in building the positive attitude of
the person and also make a successful men (Read and et. al., 2016). With the helps of this they
easily take risk and accept all he challenges in effective manner and set their positive mid set
which helps them in achieving better goals and objectives in appropriate manner.
CONCLUSION
From the above mentioned report, it can be concluded that entrepreneurship is one of the
important concept in which an individuals start their new business to achieve appropriate success
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in market place. It also helps in developing economic of the country by providing better
employment opportunities to their local people. It also establishment effective advantage in
which economy growth increased in positive manner. In this concept government authorities also
use as well as adopt various methods to maintain better performance of the business. It also
provide new and quality services to their customers by fulfilling their needs in order to get their
higher satisfaction level. It helps in contribute in improving living standard of the peoples. In this
various typologies of entrepreneurial helps in accomplishing better structure for achieving
financial gain. Along with this past experience of entrepreneurs also affect their mind set in
several ways which aid in enhancing their growth. For this government bodies also play
important role in developing their image at market place in effective manner.
REFERENCES
Books and journals
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Brandstätter, H., 2011. Personality aspects of entrepreneurship: A look at five meta-
analyses. Personality and individual differences. 51(3). pp.222-230.
Szirmai, A., Naudé, W. and Goedhuys, M. eds., 2011. Entrepreneurship, innovation, and
economic development. Oxford University Press.
Kiss, A. N., Danis, W. M. and Cavusgil, S. T., 2012. International entrepreneurship research in
emerging economies: A critical review and research agenda. Journal of Business
Venturing. 27(2). pp.266-290.
Bruni, A., Gherardi, S. and Poggio, B., 2014. Gender and entrepreneurship: An ethnographic
approach. Routledge.
Schaper, M. ed., 2016. Making ecopreneurs: developing sustainable entrepreneurship. CRC
Press.
Parker, S. C., 2011. Intrapreneurship or entrepreneurship?. Journal of Business Venturing. 26(1).
pp.19-34.
Madhok, A. and Keyhani, M., 2012. Acquisitions as entrepreneurship: asymmetries,
opportunities, and the internationalization of multinationals from emerging
economies. Global Strategy Journal. 2(1). pp.26-40.
Flamholtz, E. G. and Randle, Y., 2012. Growing pains: Transitioning from an entrepreneurship
to a professionally managed firm. John Wiley & Sons.
Choi, N. and Majumdar, S., 2014. Social entrepreneurship as an essentially contested concept:
Opening a new avenue for systematic future research. Journal of Business Venturing.
29(3). pp.363-376.
Webb, J. W. And et. al., 2013. Research on entrepreneurship in the informal economy: Framing
a research agenda. Journal of Business Venturing. 28(5). pp.598-614.
Bozeman, B., Fay, D. and Slade, C. P., 2013. Research collaboration in universities and
academic entrepreneurship: the-state-of-the-art. The Journal of Technology Transfer.
38(1). pp.1-67.
Keat, O. Y., Selvarajah, C. and Meyer, D., 2011. Inclination towards entrepreneurship among
university students: An empirical study of Malaysian university students. International
Journal of Business and Social Science. 2(4).
Hall, J. and et. al., 2012. Entrepreneurship and innovation at the base of the pyramid: a recipe for
inclusive growth or social exclusion?. Journal of Management Studies. 49(4). pp.785-
812.
Andersson, S., 2011. International entrepreneurship, born globals and the theory of
effectuation. Journal of Small Business and Enterprise Development. 18(3). pp.627-643.
Ahl, H. and Marlow, S., 2012. Exploring the dynamics of gender, feminism and
entrepreneurship: advancing debate to escape a dead end?. Organization. 19(5). pp.543-
562.
Arogundade, B. B., 2011. Entrepreneurship education: An imperative for sustainable
development in Nigeria. Journal of emerging trends in educational research and policy
studies (JETERAPS). 2(1). pp.26-29.
McMullen, J. S. and Dimov, D., 2013. Time and the entrepreneurial journey: The problems and
promise of studying entrepreneurship as a process. Journal of Management Studies.
50(8). pp.1481-1512.
O'Connor, A., 2013. A conceptual framework for entrepreneurship education policy: Meeting
government and economic purposes. Journal of Business Venturing. 28(4). pp.546-563.
Read, S. and et. al., 2016. Effectual entrepreneurship. Taylor & Francis.
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role-climate-change-resilience>.
Entrepreneurship. 2017. [Online]. Available
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