Entrepreneurship Theory and Practice

This assignment delves into the core concepts of entrepreneurship theory and practice. It examines various theoretical perspectives on entrepreneurship, such as social entrepreneurship and its impact, the evolution of business models in practice, and the role of entrepreneurship education. The document analyzes influential research papers and provides insights into the current state and future directions of entrepreneurship.

ENTREPRENEURSHIP

Table of Contents
INTRODUCTION...........................................................................................................................1
P1. Different types of entrepreneurial ventures and its relation with typology of
entrepreneurship..........................................................................................................................1
P2. Similarities and differences between entrepreneurial ventures............................................2
TASK 2............................................................................................................................................3
P3. Micro and small businesses impact on the economy............................................................3
P4. Importance of small businesses and business start –ups that contribute to the growth of the
social economy after ‘Brexit’......................................................................................................4
TASK 3............................................................................................................................................5
P5. Determine the characteristics, traits and skills of two successful entrepreneurs, which
differentiate them from other business managers.......................................................................5
P6. Aspects of entrepreneurial personality reflect entrepreneurial motivation and mind-set.....6
TASK 4............................................................................................................................................7
P7. Background and experience hinder or foster entrepreneurship............................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
There are different type of business opportunities that prevail in the market.
Opportunities are prevailed by those who seek the issues or problems that are faced by people.
All the products are developed as per the type of needs and requirements that that individuals are
in need of. It is important to make sure that people understand the requirement and take up steps
with the help of which innovation can be made (Welter, 2011). Entrepreneurship can be
determined as the activities for setting up businesses and taking up effective steps through which
financial risks can be managed. In other work, it is a concept that shows up the willingness and
capacity to develop, manage and organize business with an aim to gain profit. Present report
cover different aspect of entrepreneurship. This report includes different type of entrepreneurial
ventures that can be operated by individuals. Further, it covers differences and similarities
among entrepreneurial ventures. Lastly, it also includes importance of small businesses and
business start –ups that contribute to the growth of the social economy after ‘Brexit'.
P1. Different types of entrepreneurial ventures and its relation with typology of entrepreneurship
Entrepreneurship can be determined as the process through which individual designs,
runs and launches a new business. At the initial stage, it is started with a small business, then
slowly with the profitability venture start of expand. People who start up with a new business are
known as entrepreneurs (Morris, Kuratko and Covin, 2010). They understand the opportunity
that prevail in the market and take up appropriate steps with the help of which they achieve their
desired goals and objectives. There are different type of issues that are faced by people and
entrepreneurs aim to understand them and develop products and services. There are different
type of entrepreneurial ventures and below given are four of them:
Small business ventures: This can be determined as the business in which there is low
scale of business involved. With this respect, it includes consultants, hairdressers, grocery stores,
etc. When is business started, then it is not possible to perform all type activities on individual
basis (Storey and Greene, 2010). It is important to have effective support so that all the
operations can be conducted effectively and efficiently. In this venture, entrepreneur take support
from their family members who help them to operate the business operation efficiently.
Scalable start up venture: As per this business, entrepreneurs have motive in order to
start with new venture and they also have vision that will change the world. In order to conduct
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the business operation, entrepreneurs are specific to select the most effective and skilful
employees who will be supportive enough to achieve the vision for which business is started.
Large company venture: These are type of business operations that have started with
higher capital. Entrepreneurs have planned all the required activities that will enable to make it
an effective one (Bridge and O'Neill, 2012). They have developed their strategies as per he life
cycle of the product or service developed. Further, they also make changes as per the needs and
requirement of customers and they also make sure that service users are satisfied.
Social ventures: As per this venture, they have the capability to serve society as per their
needs and requirements. With this respect, they focus on developing total new product or service
that is helpful to meet the requirement of society. These type of firms can be of non profit
organizations or for profit companies.
All these are related with typology of entrepreneurship. In order words, it can be stated
that all the above given ventures are connected with typologies. Main aim of small business
venture is to gain maximum profit and for this purpose, they small ventures are developed which
are helpful enough to satisfy users (Burns, 2010). Further, large scale businesses are those that in
which high investment is involved and they focus on gaining maximum profit. Entrepreneurs
also aim at providing products that are of high importance and beneficial for the society.
P2. Similarities and differences between entrepreneurial ventures
As stated above, there are different type of entrepreneurial ventures and all these are
highly beneficial for the society and individuals and for the development of the economy. All
these ventures have certain similarities and differences. One of the main similarity of these
ventures is to develop an effective business and the product or services provided to customers
enables to satisfy the requirement of customers (Dacin, Dacin and Matear, 2010). In addition to
this, all the entrepreneurial ventures focus on innovations so that better services can be delivered
when compared with competitors.
Small venture and large scale ventures are different in a way that the financial aspect that
are considered by these are different. In order to start up small scale venture the investment made
by entrepreneurs are low when compared with the investment that is made in large scale
business. Further, in small ventures, family members support is taken so that business operations
are operated. On the other hand, in large scale venture, skilled workers are taken into
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consideration (Defourny and Nyssens, 2010). This enables to perform the business towards
achieving the desired goals.
Further, there is another type of entrepreneurial venture and that is social venture. This
funded by government authorities or agencies. This is because, it is focused on delivering
adequate services to community and its development. Further, Scalable start up venture and
Social ventures work not for gaining profit but for the betterment of the society. Further, they
also do not work for raising their market share. In order words, the main focus is made in order
to provide society better living condition.
Apart from this, there are other set of difference between business venture and social
entrepreneurial venture. Both are different on the basis of value that is created. More specifically,
business venture aims at developing value on the basis of the quality that is delivered by them
through products and they also deliver their products at low price and this way attain competitive
advantage (Kuratko, 2016). On the other hand, social venture create value by delivering effective
services and this enables to create economic value. Further, there is another type of difference
among these. In this context, it includes the amount spend by business venture is high for
marketing. These are done in order to promote the services and products that are delivered by
them. On the other hand, social venture make use of traditional way of marketing and in this
there is low cost incurred by them.
TASK 2
P3. Micro and small businesses impact on the economy
The growth of a country is determined with the help of economic condition. With this
respect, there are many small and micro businesses in UK and they have positive impact over the
economy. The revenue generated by these small and micro enterprise many not by high when
compared with large firms but it is helpful enough to contribute effectively towards economy of
UK (Baum, Frese and Baron, 2014). As per the research assessed there are about 500 or less
workers involved towards the activities that are beneficial for the company.
Further, there are frequent innovation that take place in the small and micro businesses.
These are helpful to make sure that workers are satisfied and they are being delivered with
proper satisfaction. This way the purchases by customers for these products or services are also
high. This way it contributes effectively towards the economic condition of the country. Apart
from this, there are other benefits that UK gets with the help of small and micro enterprise and
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that is related with employment opportunity. When there is any type of business venture started,
then it provides employment opportunity and this enables to support the country to grow (Storey,
2016). As per the data, it has been identified that there are about 95%of micro and small
businesses that established UK and about 5% are large corporation. In addition to this, it also
have been identified that about 50% of the world gross value is contributed by small and micro
businesses.
P4. Importance of small businesses and business start –ups that contribute to the growth of the
social economy after ‘Brexit’
Due to the state of Brexit, the UK is facing different type of issues for the economy. This
is because businesses in UK exist within the market due to low opportunities for employment. In
this context, after the Brixit UK economy, the business has established small businesses and
these have positive impact over the economy and contributes effectively towards sanctification
of people in terms of employment (Bruton, Ahlstrom and Li, 2010). These small and medium
businesses work within the regions of UK and aim at understanding the needs and requirement of
customers. Accordingly, they provide their customers with products or services and if required
changes are also made. With this respect, it can be stated that the growth of the economy is
highly contributed with the help of small and micro businesses. There are different aspects in
which new ventures and small businesses contribute and aspects are as follows:
Employment: There are different set of activities that are arraigned. For all these it
requires employees who will able to support enough to achieve the desired goals and objectives.
With this respect, in small or new ventures. There are many workers required. This way it can be
that it contributes employment opportunities to local people (Oosterbeek, Van Praag and
Ijsselstein, 2010). When the rate of these micro or small business increased, then the rate of
unemployment within UK decreases.
Income: With the help of small and micro organization, it contributes effectively towards
the economy of UK. This is because the individual income increases and provide the
opportunities. By maintaining the income level of individuals, it is helpful enough to delivering
adequate services to others.
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TASK 3
P5. Determine the characteristics, traits and skills of two successful entrepreneurs, which
differentiate them from other business managers
There are different set of characteristics, traits and skills that a managers and entrepreneur
possess. There are many people who have developed their capabilities and came out to be
entrepreneurs. Two of the entrepreneurs selected to be in this section are Steve Jobs and Mark
Zuckerberg. These people identified the opportunities that prevail in the market and have put on
their efforts to change the world and look thinks through different point of views.
Steve Jobs is a revolutionary who brought up smart phones and computers. There are
different type of innovations that are many innovations that are made by him and he was the
founder of Apple Inc. On the other hand, Mark Zuckerberg is the founder of Facebook which one
of the largest used social media. Both these entrepreneurs have worked over making the world
and to think differently (George and Bock, 2011). Both these individuals have skills that helped
them to make innovations and creativity. In this context, below given are the characteristics that
these entrepreneurs possess:
 One of the characteristic or trait that these entrepreneurs posses is that they are
innovators. They understand the needs and requirement of people and accordingly they
develop product and services. For example, Mark Zuckerberg understood importance of
connecting with people and so Facebook was developed. This is type of innovation that
helped in connecting with people around the world.
 Further, they are open minded and take up suggestions from others. In this context, they
take up help from their employees and so that innovations can be made (Karlan and
Valdivia, 2011). This is effective enough to create valuable product and this way
customers are satisfied.
 To be an effective entrepreneur, it is essential to set up goals that help to develop path on
which it can be reached. For example, Steve Jobs focused on setting up short term goals
that helped in reach out long term goals in an effective manner.
 Another set of characteristic is that they are motivators. They boost up the moral of
workers and make sure that they put on their full efforts to complete their work (Santos,
2012).
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As per the above, characteristic or trait discussed, it can be stated that managers are
different from that of entrepreneurs. However, below given are the difference between business
managers are entrepreneurs:
Business managers Entrepreneur
They perform the type of business activities
that as per their type of roles that has to be
performed by them. Further, they make sure
that data to day business operations are
performed so that firm can achieved their
objectives (Nicholls, 2010).
On this side, entrepreneurs identify the type of
issues that are faced within the organization
and accordingly, they develop strategies with
the help of which organizational goals are
achieved.
They make sure that all the employees with the
firm are performing their set of roles in an
effective manner. They are just focused on
make sure that workers are directed to perform
their task efficiently.
Entrepreneurs understand the requirement of
employees and make sure that they are inspired
and directed so that they develop interest and
willingness towards it.
They make use of their power to control
worker. Further, employees also respect
managers as per the type of post they are
holding.
Entrepreneurs control as per the achievements
that they are holding. Employees understand
their importance and they work to support
them (Delgado, Porter and Stern, 2010).
P6. Aspects of entrepreneurial personality reflect entrepreneurial motivation and mind-set
There are different type of situations that are faced within the organization. There are
negative or positive aspects that are faced. However, an entrepreneur make sure that in all type of
situation they encourage themselves and take up steps so that they overcome the problems that
are faced. Motivation can be determined as one of the most effective source that enable to work
with willingness and interest (Delgado, Porter and Stern, 2010). There are different type of
characteristics that individuals possess and among all thee motivation is a part that binds up all
workers to work in same direction. Both the entrepreneurs discussed above, that are Mark
Zuckerberg and Steve Jobs possess this skill. There are different type of issues that are faced by
workers and this negatively affect the performance level. Motivated employee contributes
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effectively when compared with the worked who is demotivated. Thee entrepreneurs understand
the importance of motivation and make sure that all the workers are encouraged and work with
their full efficiency. There are different type of strategies applied with the help of which workers
are motivated. In this context, all the issues that are faced by them are discussed and proper steps
are take through which healthy working condition is provided.
Another aspect that both entrepreneurs consider is that they have effective
communication with their employees. Through proper interaction, they develop trust and
confidence within them and they understand the issues or problems that are faced by them
(Welter, 2011). Further, to motivate employees they also take up suggestions from them. Even
this has positive impact over the workers as they develop a feeling that they are important to
them. Taking suggestion boost up the moral and working condition of the organization.
On the other hand, both entrepreneurs possess positive mind set that enables them to
overcome different type of issues. For example, Steve Jobs who was made to leave his own
company did not loose the confidence he had. However, he starts with other firm and after a
while he was again called by Apple so join them (Morris, Kuratko and Covin, 2010). From this
shows that he had positive mind set and confidence what ever he did. To make sure workers
perform with their full efficiency, it is essential for the entrepreneur to have positive mind set
only then it becomes possible for them to direct and guide the workers towards the type of work
they perform. At the initial stage when mind set is not positive, then the rate of work that is
performed will not be effective. All the activities that are shown by entrepreneurs are observed
and monitored by employees. When entrepreneurs have positive mind set, then workers tent to
followed and does not get demotivated or discourages for the different type of problems that are
faced by them within the organization. Mark Zuckerberg and Steve Jobs, both have positive
mind set for the type of work they perform. This has helped them to make sure that their desired
goals and objectives are achieved.
TASK 4
P7. Background and experience hinder or foster entrepreneurship
In accordance with the research conducted, it has been identified that different type of
skills and capabilities enable to affect the mind set of individuals. Further, there are different set
of experience and background that fosters entrepreneurship. Moreover, there are various barriers
that affects the individual's perception over the work they perform (Storey and Greene, 2010). In
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this context, it is important to make sure that proper steps are take so that people are able to
attain their goals and objectives. It is essential to have proper skills so that the new business can
be established or top become an entrepreneur. With this respect, one of the skills required is
related with the opportunities that should be identified. For this purpose, proper research needs to
be conduced so that the opportunities that prevail in the market can be identified.
Entrepreneurs should have managerial skills as there are different aspects that has to be
considered. With this respect, there are activities and proper support that one needs so that the
desired goals can be achieved. For this purpose, the idea that he/she has should be conveyed and
all the people involved in it need to managed (Bridge and O'Neill, 2012). This way by achieving
small goals, large goals can be attained. Further, finance play viral role as the type of idea that
entrepreneur want to convert into an existence require financial support so that each and every
activity that is set can be achieved.
Another factor that foster entrepreneurship is background. From childhood itself, the type
of people who are involved contribute effectively towards one to be entrepreneur or to think
creatively. Further, to be an entrepreneur, it is essential to have the skills to take up risk. This
will help to make sure that there are cases in which individuals does not take up efforts to take
the risk for the opportunity (Burns, 2010). Further, with the help of effective background, one is
able to take decisions for the business activities. This way it becomes effective to start up a new
venture.
In accordance with the research conducted, it is identified that with experience that
individuals also support and encourages to start up a business. There are different set of
information that one needs to have related with the operations of the activities that individual has
to consider. Decisions needs to be made so that high quality services and being delivered by the
entrepreneur for the products and services.
There are factors that act as barriers for the entrepreneur. In this context, one of the
barriers that individual face is related with finance. This hinders the idea that entrepreneur has
developed (Dacin, Dacin and Matear, 2010). As stated above, there are different set of activities
that are developed and for each of the activity it requires financial support that make sure the
growth and development of the business effectively and efficiently. In order to start up with the
business, it is important to have proper financial support so that the objectives or the goals that
are set can be achieved. Further, employee are required and if the worker selected by the
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entrepreneur is not from family, then they have to be given proper pay to them. For this it
requires financial support so that desired goals can be achieved.
Apart from financial barriers, there are cultural and social barriers that hinder
entrepreneurship facets. With this respect, it is important to make sure that there is effective
research that is conducted by entrepreneur and they also need to have proper knowledge before
entering the market (Defourny and Nyssens, 2010). Entrepreneur needs to have strong
connections so that they will be able to develop confidence over the type of work that is
performed. This way it becomes helpful enough to make engage the people who involved within
the formation of new business venture.
CONCLUSION
From this report, it can be articulated that entrepreneur need to have an open mind so that
they identify the type of market that prevail in the market. Further, they should have to skill to
understand the issues or problems that are faced by customers and accordingly products and
services should be delivered. Further, employees are the face of organization as they have direct
interaction with customers. They are the one who present the products and services to customers.
It is important to make sure that they are motivated by the entrepreneur. This way they will be
able to put on their full efforts to support the firm to achieve their desired goals and objectives.
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REFERENCES
Books and Journals
Baum, J. R., Frese, M. and Baron, R. A., 2014. The psychology of entrepreneurship. Psychology
Press.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small
business. Palgrave Macmillan.
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.
Burns, P., 2010. Entrepreneurship and Small Business: Start-up. Growth and Maturity. Palgrave
Macmillan.
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.
Delgado, M., Porter, M. E. and Stern, S., 2010. Clusters and entrepreneurship. Journal of
economic geography. 10(4). pp.495-518.
George, G. and Bock, A. J., 2011. The business model in practice and its implications for
entrepreneurship research. Entrepreneurship theory and practice. 35(1). pp.83-111.
Karlan, D. and Valdivia, M., 2011. Teaching entrepreneurship: Impact of business training on
microfinance clients and institutions. Review of Economics and statistics, 93(2), pp.510-
527.
Kuratko, D. F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Morris, M. H., Kuratko, D. F. and Covin, J. G., 2010. Corporate entrepreneurship & innovation.
Cengage Learning.
Nicholls, A., 2010. The legitimacy of social entrepreneurship: reflexive isomorphism in a pre‐
paradigmatic field. Entrepreneurship theory and practice. 34(4). pp.611-633.
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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.
Santos, F. M., 2012. A positive theory of social entrepreneurship. Journal of business ethics.
111(3). pp.335-351.
Storey, D. J. and Greene, F. J., 2010. Small business and entrepreneurship. Financial
Times/Prentice Hall.
Storey, D. J. ed., 2016. Entrepreneurship and new firm. Routledge.
Welter, F., 2011. Contextualizing entrepreneurship—conceptual challenges and ways
forward. Entrepreneurship Theory and Practice. 35(1). pp.165-184.
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