INTRODUCTION Entrepreneurship refers to an effective procedure of designing, launching and running a new business for earning desired outcomes. It can be described as capacity and willingnessto develop, organise as well as manage new business venture to solve risks to gain better profits. Moreover, it requires the analysis of various internal and external factor before introducing new concept of initiating fresh business in order to achieve desired productivity and profitability in proper manner (Blackburn, Hart and Wainwright, 2013). Entrepreneurship is helpful to start new smallbusinesseswhichfacilitatetocreateseveralemploymentopportunitiestoreduce unemploymentofspecificarea.Thepresentreportwillfocusondifferenttypesof entrepreneurial venture and their relation with typology of entrepreneurship. It will also include differences & similarities between entrepreneurial ventures along with discussing impact of small businesses on economy and contribution of small businesses as well as start ups to growth of economy. The characteristics, traits & skills of two successful entrepreneurs and background as well as experience can hinder or foster entrepreneurship is given below. TASK 1 P1 Different types of entrepreneurial ventures and their relation with typologies The entrepreneurship can be described as one of the most creative approachin order to start new business with appropriate concept through organising, managing and leading people properly. It involves the criteria of more generating unique ideas which are effective to fulfil desired goals and objectives along with attaining better outcomes. There are various kinds of entrepreneurial venture which are explained further – Small-business Entrepreneurship –This can be explained as small businesses which has limited area of working with less resources to earn profits accordingly. It include to start small firms by new creative ideas to provide required products or services to people as per their actual needs, wants and demands to fulfil them in appropriate way (Bridge and O'Neill, 2012). Scalable Entrepreneurship –The scalable entrepreneurship are usually focus on more in quality of products with creativity in which efficient personnel as workforce is included to fulfil actual desires of business. It involves the major purpose of initiating venture at specific level of scale which can be defined through amount of financial investment and venture capital funds in respect of expansion. 1
Social Entrepreneurship– This kind of entrepreneurship refers to generate effective concepts to fulfil societal needs with the help of developing product or services in order to facilitate progress of citizens or community as a whole. Moreover, the main aim to boost up standards of living of people and improve society as well as environment for achieving betterment of people living in particular geographic area (Carsrud and Brännback, 2011). Large Scale Entrepreneurship– The large entrepreneurship focus on creating more effective as well as efficient ideas in terms of increasing profitability along with attaining growth of business successfully. It involves various purposes such as improve good will, increase profit share in market and sustainability which can be achieved by making appropriate strategy through innovative concept. Female entrepreneurs– The female individuals who establish their business with fresh innovative concept to fulfil needs of people by remaining responsible for overall decisions of the same to earn profits and success. Male entrepreneurs– This include overall male entrepreneurs who put efforts to initiate their business with creative idea and strong determination to facilitate business for achieving better outcomes and growth as well. Relation of entrepreneurial ventures with typology The entrepreneurship ventures are relevant to several typologies as they have major goal of creating accurate concepts according to business to fulfil the same. For example, lifestyle business ventures are connected to those businesses who are required to maintain their living of standards with the help of generating innovative ideas (Chittithaworn and et. al., 2011). Typesoftypologies:–Thedifferentkindsoftypologiesrelevanttovarious entrepreneurial ventures are as follows – Lifestyle Venture –This kind of ventures are related to lifestyle as newconcepts are generated to make appropriate strategies or policies to modify products and services in order to maintain standards of living of people. However, it involves to apply more effective as well as efficient concepts to change goods as per actual modified needs, wants and demands of citizens appropriately. Survival venture– The survival ventures are basically focussed on their earnings in order to fulfil their basic needs to survive by implementing creative ideas in proper way.These typologies could be related with small business endeavours. 2
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Managed Growth Ventures– This can be described as to apply new concepts to increase quality of products so that growth of business can be improve and maintain further in accurate manner.This typology most undertakes business which are operating on a larger scale. P2 Explore similarities and differences between entrepreneurial ventures The different types of entrepreneurial ventures have their own concepts and aims according to which they get differentiated from one another (Chrisman and et. al., 2012). However, apart from this, they also have certain similarities among them and some of them are given below – BasisDifferencesSimilarities Social entrepreneurship and Lifestyle Entrepreneurship Themainfocusof lifestyle entrepreneur is toearnmoneyfor makingtheirliving standard better. Thesocial entrepreneurshavean aim to satisfy societal requirementswhereas thelifestyle entrepreneurshiphave agoaltomaintain actual lifestyle desires throughimplementing newinnovative concepts in business. Boththeseventures havesamecriteriaof modifyingproductin order to boost up their qualitytosatisfy customersby completingtheir desired requirements in proper manner. Theyhavesimilar purposeofproviding better quality goods at reasonable price people sothatpeoplecan easilyaffordthemto fulfil their desires. Femaleentrepreneurship and Male entrepreneurship Thefemale entrepreneurtake overallresponsibility of bearing possible risk by putting appropriate Bothofthegiven entrepreneursgenerate innovative idea and put effortswithfully focussedmindsetas 3
hard work. The female entrepreneurhasthe abilitytothinknew ideasandmake innovation in products sothatneedsand demands of consumers can be satisfied. Femaleentrepreneurs focus on small targets toearnprofitsrather thantakinghighrisk whereasmale entrepreneursmake huge targets for gaining greater profits. well as bears a passion to run their business in successfully in respect of earning profits along withbettergrowth properly. Theseboth entrepreneurshave specifiedgoalsor objectiveswhichare completedby generatinginnovative conceptstorun businessalongwith improving good will in accurate way. TASK 2 P3 Impact of micro and small businesses on economy The micro and small business have limited financial investment and resources but they are helpful to economy as they provide number of employment opportunities to citizens of particular area (Dennis, 2011). Moreover, it will provide support to reduce poverty of specific geographic destination by improving their living of standards along with completing their basic needs of life in accurate manner. However, it will also contribute large amount of money taxes to annual income of country which can be used for further development properly. Micro business– This can be described as small business which are generally operated by an individual to run their business and sometimes involve family members. It include the criteria of investing limited amount of funds and earn profit at small scale (Drucker, 2014). Additionally, it has been observed and evaluated that around5.15 millions of micro businesses 4
are there in United Kingdom which are increasing rapidly and contribute to economy of UK in proper manner after Brexit. Small business– The small businesses can be described as independently running and controlled business which usually have 5 to 500 staff members to conduct operational activities or procedures on regular basis. Apart from this, annual profit which can be earned by small business organisation in UK i.e. 10 million Euros. However, such enterprise are mostly situated in local areas in order to manufacture desired products or services and may or may not bear different sections of production and other procedures. Meanwhile, small firms are responsible for generating more sources of earning maximum income after Brexit. Medium size business– This can be explained about those firms who has around 100 to 999 employees for carrying out regular operational activities to earn better outcomes. They put efforts to boost up their productivity as well as profitability in respect of improving growth of business which facilitate to achieve success. Theimpactofsmallbusinessesprovidesupporttogeneratevariousemployment opportunities to people living in particular place which facilitate to reduce poverty and results into improved development of the same. Meanwhile, the impact of micro and small businesses are explained further – Illustration1: Impact of Economy on UK (Source: Impact of Economy on UK, 2018) Local impact– The new starts ups and small business are helpful to reduce rate of unemployment in local areas which facilitates to fulfil actual basic needs of people living there 5
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(Fassin, Van Rossem and Buelens, 2011). It provide support to boost up standards of living of citizens in United Kingdom in order to facilitating improvement to gain economic development after Brexit.The FDI received will further helpful in development of the region. It has been identified that over $7.7 billion received in the form of foreign investment by start-ups in the country (Research Suggests Brexit Has Had Little Impact on U.K. Companies, 2018). National impact– This can be explained about increasing economic stability at national level with the help of small businesses in United Kingdom. It include to increase number of job opportunities in country which render help to improve development at the same level. Moreover, these small firms contribute a precious amount to annual income of the nation which is helpful to achieve overall development properly. Additionally, the national GDP rate of United Kingdom is around 1.62%. Regional impact– In this part, small businesses are also beneficial at regional level as they provide better quality of product or facilities at reasonable price which is easily affordable by people. Therefore, they are helpful to fulfil actual desires of common citizens at limited prices by manufacturing products by taking care of their budget of income (George and Bock, 2011). P4 Importance of small businesses and business start ups for contributing to growth of social economy after Brexit The UK economy faced a substantial change after Brexit, or British Exit, which refers to the opting out of UK from the European Union. The reason for this exit was that a referendum was held regarding the UK leaving the EU, in which almost all the citizens above the voting age could take part. More than 30 million people participated in this referendum and by majority, it was decided that UK should no longer be a part of the European union. There was a huge shift after the decision in the social economy of the country. The small and medium-sized enterprises became essential towards their contribution towards the economy. These contributions are discussed below: Social and economic evolution –Small businesses and business start-ups are the ones heavily impacted post Brexit. However, they are now the biggest contributors in evolution of social and economic environment of the country. The uncertain rate of pound is forcing the consumers to buy from large enterprises. Small and Medium Enterprises are helping in raising the GDP of the country and bringing it back to shape. Also, by providing quality products at cheaper rates, they are responsible for raising the standard of living of the people. 6
Reducing Poverty–Many large enterprises were shutdown after the events of Brexit, which resulted in increased poverty. Firms of Small and Medium Enterprises are contributing towards reducing poverty by providing quality products at low prices. In addition to this, they are providing employment opportunities to the individuals (Gorgievski Ascalon and Stephan, 2011). Improvement in Annual income –Small businesses are being a heavy support for the UK economy. Being directly affected by Brexit, these businesses are adopting strategies which can cope up with the uncertain taxation policies of the country. Since more people are inclining towards setting up business start-ups, it would eventually result in rise of business and exchange in the country. Since more small and medium-sized enterprises capture the market and more people will be employed, it will helpful to people of nation to fulfil their basic needs. Moreover, increase in number of small businesses facilitate to boost up overall profits of industry which facilitate to improve annual income of country in respect of achieving economic stability in UK. Create employment opportunities –After Brexit, there was a spontaneous increase in unemployment due to closing of many big firms that were a huge part of the community. Small and medium- sized enterprises now have focused more in enhancing the quality of their products. To achieve this, they are willing to recruit skilled and talented employees who lost their jobs. This would have a two-way benefit (Goss, 2015). It would raise the standard of living of such employees' families and the quality of the products of these enterprises will increase. These businesses are willing to adopt technological advancements, and such rise in technology needs efficient and skilled employees to achieve a competitive advantage and modernisation of these organisations. With a great rise in business start -ups in United Kingdom, more opportunities for skilled as well as talented individuals are being created almost everyday in the country. TASK 3 P5 Characteristics, traits and skills of two successful entrepreneurs It is very essential for entrepreneurs to be skilled and possess certain characteristics which in turn makes it easier for them to drive their businesses towards success. These skills help them raise a talented staff who in turn contribute towards expansion and success of businesses. Following are the characteristics and skills of two of the most successful entrepreneurs of the world: Henry Ford and Mark Zuckerberg. Characteristics of Henry Ford :- 7
Creativity –To own one of the best auto mobile companies of the world, it is very essential for its owner to be creative (Jones and Rowley, 2011). Henry Ford was attracted to machines since his childhood, and was quite creative in building different kinds of machineries which would further fulfil distinct requirements of people.In case of managers, they do not usually focus on creativity and put efforts to complete desired target properly.Visionary –To set your firm higher than the others, it is required to have a vision. Henry Ford dreamt of setting up a franchise that could compete with the dynamic needs of individuals. This vision made him produce cars which have no match in the outside market. At the other hand, managers do not create vision but only fulfil objectives allocated by higher authorities in proper manner. Characteristics of Mark Zuckerberg :- Decisiveness -The major decisions of the strategies of Facebook Inc. are decided by Mark Zuckerberg himself. His decisions are responsible for its major success. Even today, the decision making of Mark Zuckerberg are treated with respect and honoured among the world leaders. In addition to this, managers do not make huge decisions but only follow instructions given by their superiors to follow them appropriately. Flexibility -No rigid entrepreneur can establish a successful business enterprise in a dynamic business environment (Karlan and Valdivia, 2011). The flexibility in the nature of Mark Zuckerberg reflects in the strategies he used to make Facebook Inc. a major success. However, managers usually get stuck to specific set of rules & guidelines for their sub- ordinates but never think to change them rather than higher authority will give them instructions for the same. Skills of Henry Ford :- Management -Ford is one of the biggest companies in the world with businesses all around the world. There are multiple divisions in each enterprise owned by Ford. With his effective management skills, Henry Ford has been quite successful in employing and retaining one of the best individuals for the company which can also be ascertained from thereputation ofthecompany.Additionally, managers do management on the basis of 8
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instructions of their superiors but never make own strategy to retain efficient employees in organisation. Evaluation -Henry Ford is known to have a critical evaluation of the procedures of his company. Such evaluation and self reflection allows to reconsider the needs of the business and choose appropriate strategies to make it grow. Moreover, managers evaluate performance of employees in order to complete desired target on time but not think about growth of overall organisation. Skills of Mark Zuckerberg :- Communication-MarkZuckerbergknowshowtoeffectivecommunicatewith concerned stakeholders and deliver suitableproducts in the market. He considers the needs of the customers and give them exactly the right product to satisfy these wants. Facebook Messenger is one such example. Meanwhile, managers only communicate guidelines about desired outcomes which are required to be generated after completing specific task. Leadership -It is the leadership quality of Mark Zuckerberg that has engaged his employees in developing the biggest social media platform in the world. He continues to motivate his employees and help them enhance their performance. In contrary to this, managers only give instruction to fulfil given targets in daily basis rather than involving employees to achieve huge objective. P6 Entrepreneurial personality reflection to entrepreneurial motivation and mind set The personality of an entrepreneur can be described about their style of working and way of thinking which impacts positively on other people (Neck and Greene, 2011). However, their effective as we ll as efficient skills and traits are helpful to motivate staff members to follow their appropriate strategies of performing in order to gain better sales and profits. Moreover, entrepreneurs have several factors of their personality such as lifestyle, risk taking ability and background which reflects in their behaviour as well as performance. Meanwhile, these factors are helpful to motivate employees and improve their working on daily basis. OCEAN Theory 9
Openness– This involves the open behaviour of an entrepreneur due to which they utilise beneficial opportunities for career growth of employees to motivate them towards improving their performance. However, they are required to be ready for accepting challenges and making changes in system for welfare of business as well as staff members (Schaper and et. al., 2014). Conscientiousness– As per this factors, an entrepreneur required to be passionate and conscious towards their goals & objectives of organisation. It involves to sustain their strong position in market for which they need to work in consistent manner which make them to encourage employees for increasing their efficiencies for achieving set target successfully (Aspects of Entrepreneurial personality,2017). Extraversion– According to this, an entrepreneur required to be interactive and have good communication skills in order to share innovative ideas with other members of company. Additionally, they need to maintain an appropriate relation with co- workers which facilitate healthy working environment for them and motivate them to remain hard working & loyal for company. Agreeableness– This factor determine about supportive nature of an entrepreneur towards their sub- ordinates in order to make them motivated. Meanwhile, they required to have teammates who are dedicated and loyal for competing tasks successfully in company. Neuroticism- This include the ability of an entrepreneur in order to face overall risks as they put efforts to resolve issues and conflicts of members to earn desired targets regularly (Storey, 2016). moreover, this capability of entrepreneur make people loyal for them and encourage to obey their instructions accurately. TASK 4 P7 Examine how background and experience can hinder or foster entrepreneurship The background and experience of an entrepreneur reflects in their style of working and level of thinking which influence other people of organisation to follow them. It include family background having several concept which are followed by a person while performing their tasks such as maintaining trust and loyalty towards their work. However, educationalknowledge and qualifications reflects perfection of an individual in their performance and technique to increase outcomes to achieve growth(Unger and et. al., 2011). Moreover, it has been observed and 10
analysed that positive behaviour and motivating words of an entrepreneur influence their sub- ordinates in more effective as well as efficient way so that they will never deny their instructions and fulfil them in perfect manner in desired period of time with better results. Additionally, the backgroundandexperienceofMarkZuckerbergandHenryFordhinderorfoster entrepreneurship is described below – Education– This can be explained as a highly important part for any entrepreneurs to have good education. However, as they will be educated it can be easy for them to understand the minor and major parts of their business. Mark Zuckerberg is known as a successful entrepreneurwholaunchedFacebookinthemidofcollegedays.Additionally,hewas HARVARD graduate and very brilliant to technical skills due to which build several software which results into his successful business FACEBOOK.In contrary to this, Henry Ford skip his studies earlier and start working in machines which helps to increase his technical knowledge to organise an auto mobile business successfully. Family background –Moreover, father of Mark Zuckerberg used to provide education about BASIC programming tools and he tried to use design games from his childhood which facilitate perfection in his present business of social media.In case of Henry Ford, he has family business of farming and Ford is not interested to continue the same and like to work on machines which encourage him to start work in machine- shops. However, his working on machines and later experiments make him learn about different technological aspects of auto mobiles in order to establish successful business. CONCLUSION From the above report, it has been summarized that an entrepreneurship can be described asan efficient process of designing, launching and running a fresh business concern for achieving better results. It involves different types of entrepreneurial ventures such assmall- business, scalable, social, large scale, female and male along with their relation with typologies including lifestyle venture, survival venture & managed growth ventures. However, it involves firms micro,small and medium size businesses having impacts on local, national as well as regional basis by increasing employment opportunities along with boosting up annual income which is helpful to gain economic development after Brexit. Moreover, contribution of small businesses such as social & economic evolution, reducing poverty, effects on taxes and income aswellascreateemploymentopportunitiesarementioned.Additionally,skillsand 11
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characteristics or two entrepreneurs are described including flexibility, management, leadership, vision, creativity and decisiveness about them. At last but not the least, role of educational background and experience to hinder or foster had also discussed. 12