The Necessity of Creative Ideas in Entrepreneurship

To become a successful entrepreneur, an individual must possess creative ideas and convert them into reality. Additionally, entrepreneurs must be equipped with essential skills and knowledge in entrepreneurship and small business management to navigate the challenges of starting and growing a venture.

Entrepreneurship and small
business management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
P1) Types of entrepreneurship ventures......................................................................................3
P2 Similarities and differences between entrepreneurial ventures..............................................4
P3 Impact micro and small
business on the economy...........................................................................................................6
P4) Importance that small
businesses and business start-ups on the growth of the social economy....................................7
PART 2............................................................................................................................................9
P5 Characteristics, traits and skills of successful entrepreneurs..................................................9
P6 Aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mindsets ...................................................................................................................................10
P7 Impact of person’s background and experiences can hinder or
foster entrepreneurship..............................................................................................................11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13
2

INTRODUCTION
Small businesses and entrepreneurship play important role in growth and development of
an economy. This micro businesses provide large number of job and generating significant
amount of revenue. The presents report is based on impact of small-business and
entrepreneurship on UK economy which helps to country's government for generating revenue as
in from of taxes (Mariotti and Glackin, 2014). This report also make analysis on types of
entrepreneurship venture and their relation with typologies. At, last this report make analysis on
Characteristics, skills and traits which helps to individual to become a successful entrepreneur.
PART 1
M1& M2
P1) Types of entrepreneurship ventures
An entrepreneur is that individual who start and run business with limited resources and
planning to taking all risks and rewards for his / her ventures. Enterprise is considered that
business which is run by individual or group of person who offers innovative products or
services to its customers (Neck and Greene,2011)
Entrepreneurship is defined as the process of designing, launching and running a new
business. It can also describe as the capacity and will\ to develop. Organize and manage a
business venture in order to make profits. Individual who run a business venture is known as
entrepreneur. Basic activities of entrepreneur includes making new products and services for its
customers and gain profit. There are various types of entrepreneurship ventures which are given
below.
Local or private entrepreneurship
Business which is owned and run by local or private entrepreneur. In this type of
entrepreneurship includes small-business or grocery shops in which is mainly limited to a
particular region. Main aim of this type of business venture is make profit and activities are
generally controlled by single person or family members (Nga and Shamuganathan, 2010)
Global or Public entrepreneurship
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It is considered as a business which run operation at global level and required higher
capital as compere to local venture. This types of venture are generally focuses on maintain long
term growth and use of innovation in its products so they can gain more international customers.
So, global venture is mainly focused on customer's preferences and new technology. Example of
global entrepreneurs are Bill gates and Mark Zuckerberg.
Serial entrepreneurship
A serial entrepreneur is that person who create and innovate an idea and transform in to
small business and then see day to day functional activities (Sampaio, Thomas and Font, 2012).
After sometime, this business is developed by another person a make efforts to grow this
business to next level. Example of serial entrepreneur is Richard Branson.
Female entrepreneurship
Female entrepreneurship, which is run, design and develop by female. In this type of
venture all the business factors are organized by female. In this venture women start business at
initial stage and then transform it into a large organization.
Social entrepreneurship
Social entrepreneur is that person which focuses on developing such type of product and
services which assist to society for solving their problems. This type of business venture are
build to serve their services to help the society and conduct its activities for non- profit purpose.
In addition, they are related to typology of entrepreneurship which means that various
types of business venture are connected with typologies. Local business run their operations for
earning profits whereas global entrepreneurship is focused on offering their services at
international level (Scarborough, 2012). Serial entrepreneurship is related to develop business to
a particular area and then take over by another persons. On the other hand female entrepreneur is
focused on develop services by female and adding quality in their services along with a vision to
transform their business into large organization.
P2 Similarities and differences between entrepreneurial ventures
There are different types of similarities and differences in between entrepreneurial
ventures. Different ventures are established as they are highly beneficial for enabling the
development and growth within economy. In business world there are various types'
entrepreneurship such as public entrepreneurship, private entrepreneur and social entrepreneurs.
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The main similarities in between all business venters is that they all are established for
long term purposes and focus more on innovation for their products. Private and public venture
both focuses on earning profit and ensure long term growth.
Along with this there are some differences in between these enterprises. Focus of private
entrepreneurship is remains to only earning profits and conducing daily activities. Their goals are
generally developed on short term purpose (Schaper and et. al.,2014). On the other hand main
focuses of public entrepreneurship is developed their products for international consumers and
earning huge profits. Social entrepreneur is mainly focused on developing such products and
services which helps to society and uses traditional approach for promoting its products.
Following are the similarities and dissimilarities in between entrepreneurship ventures.
Basis Public
entrepreneurship
Private
entrepreneurship
Serial
entrepreneurship
Similarities All the entrepreneurship are mainly focused on developing, designing,
different types of products and services in order to earn profits. Apart,
form this all entrepreneurship are focused on transform their entity into
large organization and maintain long term growth.
Dissimilarities In this type of business
venture firm needs to
high capital and their
main aim is use of
innovation and
technology for
developing their
products.
Under this type of
entrepreneurship main
focuses of
entrepreneurs is to
earn profit and limited
to a particular area
only.
Serial entrepreneur is
that person who
developed a business
upto a level and then
take over by others.
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P3 Impact micro and small
business on the economy
Small businesses is defined as venture which start for selling product and services to its
consumers in target market (Stokes, Wilson and Wilson, 2010). The Micro and small business
have helps to UK economy for ensuring their growth and make success of the UK economy.
After Brexit, UK government is mainly focused on developing small and micro business because
this ventures make significant impact on UK economy such as generating employment. There are
various types of business organization according to their size and scope.
Small-business In this type of businesses there are less than 50
employees work and their turnover is less than
10 million pound.
Medium-sized business This types of business firm is large as compare
to small business and their turnover is less than
50 million pond and number of employees are
only 250.
Large business Large sized business is that businesses in
which firm conduct business at large scale and
number of employees is more than 250.
Small businesses also helps to economy for put more innovation and new idea in their business
ventures. Following impact of small-business and micro business on economy.
Job creation
The significant impact of small-business and micro business is that it help to UK
economy for generating sufficient employment (Drucker, 2014) By conducting the market
research it I found that small-business is provided more jobs as compare to large organizations.
This helps to individuals to raise their living standard and provide better skills and capabilities.
In UK small-business is generating around 60% employments every year.
Supporting domestic economy
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UK is considered the most suitable country for financial services because they have
strong local and domestic industries (Entrepreneurship in UK, 2010). SME can provide
employment which lead to enhance demand of local people thus it dependency on external
environment such as export and import reduces. In UK small-business covered more than 50% of
gross domestic value.
Employment generation
Micro and small business provide large number of jobs through various sector such as
hospitality, retail and transportation. Research which is conducted by UK government is found
that through small-business growth of employment is approx. 4%.
Improve standard of living
The role of small-business in country support all economics aspects. In UK, after
encouragement of small-business employment growth is rapidly increases which improves the
living standard of individual (Kirzner, 2015).
From the market research it is also concluded that small-business and micro business
have created huge impact on country's economy. It is assessed that around 95% of UK market is
covered by small-business and remaining by the large organization. However, there is also
negative effects of small-business is that it provide only limited number of employment in
country.
P4) Importance that small
businesses and business start-ups on the growth of the social economy.
After Brexit, there are various types og thrests which are faced by UK. After the leaving,
of EU Britain has to face many issues because 50% of UK good and services are exported to
European countries. Now the UK is treated as the separated country and they have to follow
some other rules such as custom duty and different types of taxes have to pay for companies if
they want to run their business operation in other European countries (Baum, Frese and Baron,
2014).
Therefore, for maintain country's growth UK government is trying to develop their small
businesses and start ups. Following is differences in between small-business and start ups.
Basis Small-business Start ups
Contribution It contributes to large part of The contribution of start up is
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society and economy and
generated significant number
of employment for the society.
remains to only a particular
region only and they are
generated only limited number
of employment in country.
Revenue generation Small-business is generated
enough revenue for
government and also pay
higher level of taxes.
Start ups is mainly focused on
thei own development and
they can generate only limited
number of revenue for
government
Importance of small-business and start ups
Economic and social development
The small-business and start ups help to UK country for improving their economic
condition(Kirzner, 2015). Small-business and start-ups helps UK for improving their economics
condition by generating employments for them which ultimately raise living standard of
individuals.
Reduction of poverty
In market research it is found that that small-business and start ups helps to Uk economy
for reduces poverty. In research it is assessed that start ups helps to them for reduces poverty by
3% every year.
Generating revenue
With raising number of small-business and start ups UK government is also got benefited
from this. Small-business and start ups helps to UK government by paying taxes and other
statutory charges
Economic growth
Small-business and start ups helps to UK economy for improving their economy
conditions by giving employment to individual (Baum, Frese and Baron, 2014) In market
research its assessed that small-business make approx 54% contribution in gross domestic
production.
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D1 Scope, development and growth of entrepreneurship ventures
Scope The Scope of local venture is remains to only limited area on the other hand
scope of public sector is large as compare to the global. The scope of social
venture is limit to particular society in which they are conducting business.
Development Local venture business is remains to local people and offered their services
in particular region only (Agbim, C. K., 2013). Development of global
venture are wide and bigger than local business. Social venture assist to
high extent in improving their living standard.
Growth Growth of local business and social business are limited to a particular area
or time, but the growth of global venture is wide and they cover the global
level.
D2 Impact of small-business on regional, local and global level.
Impact Local and regional level
 Increases in number of employment
 Able to receive cost effective products.
 Make Availability of resources.
Impact of National level
 Customers gets wide rage of products at low price.
 Improve living standard of individuals (Shepherd, 2015).
Impact on international level
 Brings new ideas and innovation in products and services.
 Make more advance products.
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PART 2
P5 Characteristics, traits and skills of successful entrepreneurs
For becoming a successful entrepreneur it is important that individual must possess some
skills which helps to them for running up their business for long term. There are many skills,
characterises and traits are available for an individual which helps to them for becoming a
successful business persons ( Kuratko, 2016). The successful entrepreneurs mainly includes
Mark Zuckerberg and Bill Gates. Both the entrepreneurs focuses on innovation and technology
which brings revolutionary changes in information technology. Mark Zuckerberg launches
Facebook which is one of the leading social networking sites and on the other hand Bill Gates
launched Microsoft, it is a software company.
Following are characterises and traits of successful entrepreneurs.
 The main characteristic of successful entrepreneur is that they always work with full
passion and determination which help to them for achieving their businesses tagetes
easily (Fini, Lacetera and Shane, 2014). These characteristic also help to them for setting
long term goals which is mainly related to their businesses.
 Another characteristic which is posses by the entrepreneur is that focuses on innovation
and new ideas. This skill helps to them for making their products more innovative and
also meet the requirements of society.
In market research it is found entrepreneur can be made over the time. If an individual,
wants to become an entrepreneur it is important for them for lean some skills which are essential
for an entrepreneurship (Shepherd, 2015) Skills can be learn over time for that entrepreneur have
to give time and need to lean some skills by different types of sources.
P6 Aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mindsets
Entrepreneur is that persons who have capabilities and skills to design and operating it
owns business (Mariotti, and Glackin, 2014). They have different types of characteristics which
make them unique from others. For example Mark Zuckerberg and Bill Gate both famous
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entrepreneur is the presents' era. They have unique personality through which they can become a
successful entrepreneur.
A successful entrepreneur's personalities is shaped by many factors such as their life
styles, family upbringing, cultural activities, and their own personal motivation (Monitor, 2014).
In many researches it is found that entrepreneur who have gets a good up bring from their
families is become more successful because it helps to them for taking effective decisions.
Individual life and their cultural factor is also shaped their personalities. Apart, from this there
are also some personal factors which reflects entrepreneurial motivation and
mindsets i.e. is determination and passionate towards their work. This personal factors become
the biggest factors which motivated to them for achieving their targets (Carland and Carland,
2015) Apart from this there are also some other factors which drives an individual's mind set is
attraction towards technology. These factors helps to them for use of innovation in their products
and services so they can run their businesses operation successfully.
P7 Impact of person’s background and experiences can hinder or
foster entrepreneurship.
Background is having a huge impact on the entrepreneurship. Most of the entrepreneurs
are influenced by their backgrounds and history. Each entrepreneur has different background and
receive different experience from their personal life. Personal background can also help to
determine level of thinking and as well as the point of view to consider in different aspects.
There are many challenges which are faced by entrepreneur during their life such as financial
crisis which resists their professional growth (Ács, Autio and Szerb, 2014). In research it is
found that they entrepreneur, due to lack of fund can not able to start up their venture at initial
level. Therefore, they required to thinking positive towards their business and its future growth
and development.
Experience also matter for an entrepreneur to make decision to start up their business. In
research its found that if success rate is good or positive then their decisions are also become
effective (Putting research into policy and practice, 2017). Thus, experience and background
having a large impact on the entrepreneur and the spirit of entrepreneurship. It can help to
motivate them and they feel positive towards to start a business.
M3 Different lines of argument relating to entrepreneurial characteristics
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A entrepreneur possesses many characteristics such leadership skills, compunction skills
and determination (Mariotti, and Glackin, 2014). These characteristics help to them for achieve
their targets easily, but on the other hand many other entrepreneur arguing that good leadership
skills alone can not help to entrepreneur for achieving their target they also make their good
communications skills so they can coordinate with their subordinated in effective manner.
M4 Link between
entrepreneurial characteristics and the influences of personal background and experience
There is direct link in between entrepreneurial characteristics and their personal
background. Entrepreneur personal background have influences their personal activities. It can
be positive and negative (Neck and Greene, 2011) So for an individual who wants to become an
entrepreneur should have thought beyond their personal background. For example if an
individual receive good education then sit helps to them for learn entrepreneurial skills in
effective manner along with this they can also get aware regrading to innovation and new
technology which they can use in their business ventures.
D3 Analysis of characteristic traits, skills and motivational drivers of successful entrepreneurs
There are different types of skills and characteristic which are found in a successful
entrepreneur. This skill helps to them for conducting their business operation and make their
products more innovative (Neck and Greene, 2011). For example, Mark Zuckerberg, the
featured characteristics of him is that passion and dedications towards. Through this skill he able
to make an international company which named as Face Book.
D4 Positive and negative impact of entrepreneur personal background
Individual personal background have great impact on their entrepreneurship skills.
Individual who belongs to well educated family helps to them for making effective decision and
make them able to understand different aspects of entrepreneurship if an individual is not
received good eduction then its may hinders for them in their entrepreneurship.
CONCLUSION
As per the above mentioned report, its has been concluded that entrepreneurs and their
skills have created huge impact on economy of UK. It is important for an entrepreneur to gain
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and learn skills and knowledge which helps to them for achieving their targets. n. It can increase
their competencies and competitiveness in the market effectively. In successful entrepreneurs,
there are different types of aspects which shaped their personalities such as taking risks,
confidence, discipline. From the report it is also concluded that for becoming successful
entrepreneur, individual must possess some creative idea and converting into reality.
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REFERENCES
Books and Journals
Mariotti, S. and Glackin, C., 2014. Entrepreneurship and small business management. Pearson
Higher Ed.
Neck, H. M. and Greene, P. G., 2011. Entrepreneurship education: known worlds and new
frontiers. Journal of Small Business Management.49(1). pp.55-70.
Nga, J. K. H. and Shamuganathan, G., 2010. The influence of personality traits and demographic
factors on social entrepreneurship start up intentions. Journal of business ethics. 95(2).
pp.259-282.
Sampaio, A. R., Thomas, R. and Font, X., 2012. Small business management and environmental
engagement.Journal of Sustainable Tourism.20(2). pp.179-193.
Scarborough, N. M., 2012. Essential of entrepreneurship and small business
management. Instructor.
Schaper, M. T and et. al., 2014. Entrepreneurship and small business.
Stokes, D., Wilson, N. and Wilson, N., 2010. Small business management and entrepreneurship.
Cengage Learning EMEA.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Kirzner, I.M., 2015. Competition and entrepreneurship. University of Chicago press.
Baum, J.R., Frese, M. and Baron, R.A., 2014. The psychology of entrepreneurship. Psychology
Press.
Kuratko, D.F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Fini, R., Lacetera, N. and Shane, S., 2014. Academic entrepreneurship. The Palgrave
Encyclopedia of Strategic Management. DOI, 10(978113729467).
Shepherd, D.A., 2015. Party On! A call for entrepreneurship research that is more interactive,
activity based, cognitively hot, compassionate, and prosocial. Journal of Business
Venturing. 30(4). pp.489-507.
Monitor, G.E., 2014. GEM 2013 global report. Global Report.
Carland, J.W. and Carland, J.C., 2015. A model of potential entrepreneurship: Profiles and
educational implications. Journal of Small Business Strategy. 8(1). pp.1-14.
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