Analysis of Entrepreneurship Theories and Models

This assignment analyzes various entrepreneurship theories and models, including the Big Five traits, social entrepreneurship, innovation, and strategic management research. It also explores corporate entrepreneurship, high-technology clusters, networks, and alliances. The document is a valuable resource for students and researchers in the field of entrepreneurship.

ENTREPRENEURSHIP

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Different type of entrepreneurial project and their relation with typology...........................1
P2. Similarities and differences between various entrepreneurial venture.................................3
TASK 2............................................................................................................................................4
P3.Assessment and interpretation of data to analyse micro and small business impact on
economy......................................................................................................................................4
P4. Importance of small business or start ups in social economy after Brexit............................6
TASK 3............................................................................................................................................7
P5. Skills and traits of entrepreneurs...........................................................................................7
P6. Identify various aspects of entrepreneurial personality........................................................8
TASK 4............................................................................................................................................8
P7. Background and experience that can foster entrepreneurship..............................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneurship is the business by individual on some different idea. In current era
entrepreneurship has scope to raise living of standard of people residing in society. Entrepreneur
is the person who has some different idea which is not existing in market (Aldrich, 2017).
Entrepreneurs are the person who design launch new business ideas and take initiatives in order
to run in effective way. There are possibilities of lack of resources such as financial, human
resources, etc. hence they are individual identity of their business. Entrepreneurship helps to
generate employment, reduce poverty, etc. These days’ government also promote entrepreneurs
to come with new ideas, there are some tax benefits to entrepreneurs. There are possibilities of
loss or no profit no loss in initial days of starting business. In this report there is discussion
about various range of ventures, impact of small business on economy, key aspects of
entrepreneurial mind-set, different environments that hinder or foster entrepreneurship.
TASK 1
P1. Different type of entrepreneurial project and their relation with typology
Entrepreneurship is also known as start-ups as they have some new ideas which is not
existing in market. This helps to improve economy of country and generates employment for
residing people. In entrepreneurship, entrepreneur has to take high risk and possibilities to bear
risk. These days as scope of entrepreneurship is increasing, so government has many newer ideas
which are relevant and significant for growth of association. Entrepreneurs has some new ideas,
which is lacking in society. They manage all resources, so best and optimal utilisation is
possible. Some entrepreneurial venture is discussed as under-
Small business entrepreneurship- This is the smallest unit of business which is run by
single individual. They have less resources, low sales. There are possibilities that small business
is family owned business. This business can not accept changes which are happening in society.
There are possibilities of being shut down because of economic crisis or loss (Choi and
Majumdar, 2014). Carpenter, electrician, barber, cobbler and other season al business are
involved in this. They raise funds from own sources, family, relatives, etc. Small business runs
for the aim to earn livelihood.
Scale start-ups- These are the business which has some specific target to achieve. They
make strategies in order to achieve it. They do not purchase or manufacture in bulk, they work
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according to trend of society. They promote their ideas with external parties in order to raise
funds. There is requirement of employees in order to perform operations, so scale start-ups
recruit personnel having same zeal.
Large scale enterprises- This is the large scale business which operates at different
outlets. In this kind of business, there is requirement of huge capital, more number of human
resources in order to run business in effective and efficient way. In this kind of business, there is
more competition, hence they have to alter their policies according to market trends. Large scale
business faces more fluctuations in business because they have to alter their policies.
Social enterprise- These enterprises are working in order to improve condition of society.
There are many issues which arise in society such as disease and other issues. Their main aim is
to serve society with best services (Cooper and Folta, 2017). They analyse market and then take
actions in order to improve condition of society.
Types of entrepreneurial typology
Serial entrepreneur- These entrepreneurs are the person which take challenges
accord8ing to market trends through analysing market. They analyse market and come with new
business ideas. After launching one ideas, they deliver it to subordinates and then take actions in
order to launch new business opportunities. It is not necessary that every business idea is
successful, so they are ready to take risk of loss or no profit.
Female Entrepreneur- As the name suggest, this business is run and owned by women.
These days as changes are taking place in society very frequently, so women also have new and
innovative ideas which helps to perform business operations in efficient way.
These typologies are related to business enterprise. Relationship among entrepreneurial
venture and topology are as under-
 Small scale enterprise can be run by female enterprise. Such as boutique, small stitching
business, parlour, etc. this can include any other measure in order to earn livelihood. This
can be seasonal business as per market trends of society. These business owned and
managed by women and funds are also raised by them (Cooper, 2017).
 Large scale business is closely linked with scale entrepreneur. In case of large scale
business various business ideas are launched one after other and hence there is business
expansion. Serial entrepreneurs are the people who have number of different ideas so
they have vast business empire.
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P2. Similarities and differences between various entrepreneurial venture
Entrepreneurial business has some difference ideas which are effective and significant for
growth and development of society. There are some differences as well as similarity in working
style of entrepreneurial ventures. Some similarity and differences are as under-
Similarities
 In small scale and scale start-ups, business funds are raised through internal sources such
as family, friend, own fund, etc. Main aim behind such business is to earn livelihood and
they are not so respondent towards external environment changes (Dees, 2017). Large scale and social enterprise work according to society modification. Large scale
entrepreneur performs operations to improve condition of society. Similarly, social
enterprises also work to improve living of standards of society.
Differences
As similarity, there’s difference also in working style, scope, objectives of various
organisation. These differences are discussed as under-
Scale start ups Social enterprise
 Scale start-ups works to increase profits
and expand business operations.
 Social enterprise work not to earn profit
but to serve society, preserve
environment.
 They do not get financial assistance
from government, so in case of loss
these business exit from industry.
 There is support from governmental
sources such as tax deduction, financial
support, etc.
 They analyse market and promote their
ideas in order to raise funds.
 Their main aim is to serve society with
good quality services and resolve social
issues happening in market.
Small business enterprise Large scale enterprise
 These business units operates at small
scale in order to earn livelihood.
 Large scale business has outlets at
different places. This business does not
own and managed by single individual.
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 Small scale entrepreneurs do not
change polices according to market
trends. They one business ideas for
which they work.
 Managers at large scale enterprises,
changes their policies according to
market and their main aim is to provide
best services to society. They have
numerous business ideas on which they
work.
 Small business man works to earn
livelihood and in case of loss there are
possibilities of business closure.
 Large scale business has aim to expand
business and earn profits. In case of
loss, whole business does not get
closed, they close that specific unit.
 Small business enterprises have only
internal sources of funds, they do not
have assets to mortgage for bank loan.
 Large scale enterprise can raise funds
through external sources such as bank
loans and the financial instruments by
mortgage asset. They can invest money
through venture capital by sharing
business ideas.
TASK 2
P3. Assessment and interpretation of data to analyse micro and small business impact on
economy
Entrepreneurship is one of the best option which helps to improve economic condition of
country. Initially business operations are run at small level and then it expands. There are
different types of business enterprises such as mall, medium, large, etc. having difference in their
working style, size, scope, etc. But they have impact on economy. These business plays vital role
in developing job opportunities, improving living of standards, export import, etc.
Micro business- Micro business runs at very small level (Drucker, 2014). In this
business there are less than 5 employees. Assets and sales annual valuation of small scale
business are less than £ 250000. In this business catering, photography, computer service, etc.
are involved. Micro business has contribution of 26 million jobs, 1.9 million indirect jobs and
13.4 million induced jobs.
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Small business- Small business has maximum staff of 500 employees. They have asset
of £1 million per year. This business generates 64% new job opportunities for emerging
population. They have turnover of £43 million. Hand-loom, consultancy firms, restaurants, etc.
are involved.
Micro and small scale business plays important role in economic and social growth of
economy. When some new ideas click in mind of entrepreneur, they make strategy in order to
run inn appropriate way. As there is requirement of funds, so planning is done related to funds
arrangement. There are policies for expansion of business and create good image in industry.
With the help of small and micro scale business, there is employment generation, currency
exchange is possible, increment in export and imports, etc. They attract people to invest money,
so there is proper flow of financial resources. Small business raise loan of around £300 million
from banks and other financial institutions (Micro Business Vs. Small Business, 2016).
Small and micro industry produces around 80 million employment opportunities,
contributes 8% of GDP, 45% total manufacturing and 40% total exports. As compared to last
year there is increment of 11000 ventures on their own. Brexit also arrive with the help because
of small and micro business. There is awareness among people residing in society, so this
improves status of overall society.
Illustration 1: SME Performance Review
(Source: SME Performance Review, 2018)
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From the above discussion it is clear that micro and small enterprise has uplifting graph
for growth of economy. There are employment opportunities for candidates which helps to make
reduce unemployment and poverty from society. There is positive impact on GDP of country and
people of society are ware of new arrivals happening in society. Small business helps to improve
financial status of country. Some hand made items are also covered under small and micro
business, so there is increment in export and imports. It helps in maintaining currency reserve.
P4. Importance of small business or start ups in social economy after Brexit
Small scale business means business operations run at individual level. Small business
works to earn livelihood. They do not work to earn profits. But they have lower profits and sales.
These days there are many policies farmed by managers in order to make good image in society.
They plays vital role in growth of economy (Frese and Gielnik, 2014). Small scale business have
less than 100 employees which work in order to maintain good brand image in society. As these
days changes are taking place very frequently,. In order to maintain same image, there is
requirement of alteration in business policies which helps in customer satisfaction.
Brexit stands for Britain exist. In Brexit, Britain leaves European Union. Britain has
membership on 23rd June 2016. after this rate of British pound is lowest in last 30 years. The
process leaving EU began on 27th March 2017. After Brexit there are numerous problems which
gets arise for small and micro scale business. There were some policies levied for small scale
business after Brexit.
 There are possibilities that they are not understood by small scale businessman. This
affects working style of society. After Brexit there are many possibilities of confusion in
business polices (Zahra, Wright and Abdelgawad, 2014).
 Brexit policy is hurdle in growth and development of society because of sudden change
in business schemes. Government has to make policies which are fruitful in improving
economic condition of country.
 Small business is important in improving living of standards, so this helps to improve
condition of country also. When people live with standards, then this helps to make good
image in front of other people.
 After Brexit, small business helps to boost economy of UK. They help to encourage
economic development of country through increment in GDP, interest rate, etc. GDP
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helps to improve maintain per capita income, national income of UK (Hitt and Duane
Ireland, 2017).
 Small scale business plays vital role in employment generation. There are many related
and unrelated work of small scale business. This helps to create awareness among people
and they are compatible to external market.
 After Brexit, there is reduction in poverty and crises for country, so overall socio-
economical development of country is possible. After Brexit, government policies are
farmed in order to protect environment. This helps to maintain ecological balance of
environment (Kazanjian, Drazin and Glynn, 2017).
TASK 3
P5. Skills and traits of entrepreneurs
There is requirement of some extra skills and traits in order to perform business
operations in effective and efficient way. Entrepreneur are more energetic and have zeal to deal
with adverse situations. These days demand of consumers are changing with rapid speed, so
entrepreneurs must be ready for new and innovative ideas in launch new service or product in
market. Hence entrepreneur has to make decisions after analysing market. There is requirement
of some changes in working style, so it helps to perform business operations in efficient way. In
this report there is discussion about two personalities i.e. Steve Jobs and Mark Zuckerberg. They
have some skills which helps them to make unique identity in society. Some skills are as under-
Communication skills- Communication is one of the most essential component which
helps entrepreneurs and managers to perform business operations in desired manner (Kirzner,
2015). Mangers has to communicate roles and responsibilities to subordinates in order to perform
business operations in specified way. Managers works as communication channel between
various departments such as marketing, production, etc. in order to create synchronization in
operations. While in case of entrepreneurship, Steve Jobs and Mark Zuckerberg has to
communicate with stakeholders, banking institutions, etc. in order to generate money and convey
business idea to society in order to expand business. there is requirement of convincing skills
which helps to promote business ideas. Hence communication skills helps both entrepreneurs
Steve Jobs and Mark Zuckerberg to become successful.
Critical thinking- There are various changes taking place in business environment, so it
is essential to analyse situation and then action has to be taken. Critical thinking helps Steve Jobs
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to select best approach through which operations can be done in effective way. Apple is the auto-
mobile company, so there are different methods through which activities can be performed with
best technique. Business managers also have to use critical thinking approach in order to select
best alternative out of business environment. Business manager has to select candidates from
crowd, so they have to elect after critically evaluation.
Delegation- Steve Jobs and Mark Zuckerberg are owners and founders of big
organisations such as Apple and Facebook. As entrepreneurs they are individuals who have to
perform operations on its own, so they can not delegate task to other people. While in case of
managers there are many business operations So it is not possible to make all dealings on its
own, so they have to deliver some roles and responsibilities to subordinates. Managers delegate
as per skills and competency of employees, this analyse helps to perform business operations in
more reliable manner. Hence delegation is more by managers as compared to entrepreneurs.
Traits are as under-
 Motivation skills and determination towards target is one of the essential component
which helps to make Steve Jobs successful. As Steve Jobs has lack of financial and
family support but still he was determined for achieving targets. This helps to become
successful entrepreneurs.
 Mark Zuckerberg have positive attitude regarding achieving pre determined targets. This
helps him to attain targets even after failures. entrepreneurs are ready to take risk and
adapt changes according to market trends. This helps to have knowledge about external
environment (Kuratko, 2016). Currently also there are alterations and updations in
Facebook and Apple Inc. which helps to make good image.
 Mark Zuckerberg and Steve Jobs are associated with bi brands because they have ability
to have confidence on others. This helps to perform business in effective way. Both
entrepreneur keeps faith and confidence in subordinates. This motivates them to give best
and overall performance of Facebook and Apple improves.
P6. Identify various aspects of entrepreneurial personality
Personality of the each and every entrepreneur are not similar. Mark Zuckerberg and
Steve Jobs has challenging personality which help to accept all changes and execute business
operations and activities as per the market trends. There are certain qualities which are needed to
be framed as per the current trends. In order to know about knowledge and skills of
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entrepreneurs, Big five trait model is more effective and essential for them. This ideas is
generated by entrepreneur who is passionate to attain specific goals. Entrepreneurship has more
risk as compared to established business and there are possibilities of more financial crises. This
model has certain aspects which are mentioned as under:
Agreeableness: It is a tendency to be cooperative and compassionate rather than
antagonistic and suspicious towards other (Kuratko, Hornsby and Covin, 2014). As there are
different variation which is important to accept them for development and success of company.
Thus, it is an effective approach of analysing one's helpful and trusting nature.
Extraversion: Tendency, surgency and the energy to seek information and the business
of others. Positive emotions, energy, sociability, and tendency to explore stimulation in the firm
with others. It contradicts energetic and outgoing behaviour with reserved or solitary behaviour.
Conscientiousness: It refer to a tendency that show act dutifully, self-discipline and
motive for achievement. It being standardized, self-disciplined, steady, acting dutifully,
emphasizing on accomplishing goals. It contrasts organised and efficient behaviour with careless
and easy-going behaviour (Meyer, Neck and Meeks, 2017).
Openness to experience: Appreciation for adventure, emotion, art and unusual ideas i.e.
curious and imaginative. It flashes the ground of intellectual creativity, curiosity and a
preference for variety and novelty within an individual. It can also determine as the scope to
which a person is independent or imaginative and portrays an individual preference for a
different assortment of activities over a time period.
Neuroticism: It is another tendency that help to easily experience unpleasant feeling such
as anger, anxiety or depression. It credits the level of impulse control and emotional stability and
frequently understand by its emotional stability and low pole (Parker, 2018).
Above all these factors have large effect on a person's personality. It is essential for an
individual because it help them to take an effective decision about business. Upbringing, lifestyle
and culture background highly impacts the thinking style of individual. Personal culture describe
the beliefs, behaviour and set of values that provide shape to the individual behaviour and
provide him knowledge regarding wrong and right. As per the same, upbringing and lifestyle
impact the thinking way of an entrepreneur.
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TASK 4
P7. Background and experience that can foster entrepreneurship
Apart from internal strength of entrepreneurs there are some external forces which helps
to promote entrepreneurial idea and helps to expand business. But there are some obstacles also
which affects business operations in adverse way. So these problems are hinder fosters for
entrepreneur. There are some qualities in entrepreneur by birth but at the same time, some skills
are polished in individual. There are many factors such as education, adaptable to change, past
experience, education, etc. affects growth and development of entrepreneurship. Apart from this
there are some other factors also which motivates as well as demotivate entrepreneurs in
achieving targets.
Birth and Family background- Family background helps to develop entrepreneurs
because they got support from parents. This boost their morale and they feel confident because of
family support. While in case family does not support entrepreneurs, its tough to launch
innovative ideas. If entrepreneurs has business class background, then family supports in
launching new idea in society and entrepreneur has ability to take more risk.
Education- Education plays vital role in managing and running business. If educational
background of entrepreneur is strong, then they are able to deal with different legal rules and
regulations. It is easy for entrepreneur to analyse market and think about what is good and bad.
While if educational background is weak then it is tough to be confident, it hurdles in delivering
knowledge about business ideas to society.
Social network- Social network is one of the best medium to launch business ideas in
society. When entrepreneur has good contact with colleagues, friends, then it is easy to know
pros and cons of business, so there are less possibilities of failure in market. With the help of
social network it is easy to take feedbacks and modifications can be made accordingly which
helps in launching successful business.
CONCLUSION
From the above discussion it is clear that entrepreneurship is starting new business which
is not present in society. There are various types of business ventures such as small scale, scale
business, etc. which are directly or indirectly related to business typologies such as women
entrepreneur and serial entrepreneurs. From the above discussion it is clear that small and micro
scale business has positive impact on society. This helps to improve living of standards, reduce
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unemployment ratio, etc. This report provides live example of successful business entrepreneurs
Marks Zuckerberg and Steve Jobs. Big Five traits Model is also discussed which helps to know
skills and charcaterstics present in entrepreneur and it helps to expand and raise business.
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