Entrepreneurship and its Impact

This assignment delves into the significant influence of entrepreneurship on economic development. It requires students to analyze the contributions of entrepreneurship to both national-level (macro) economic growth and the prosperity of individual businesses (small). Students are expected to research and discuss various aspects, including job creation, innovation, and the impact of entrepreneurial ventures on local and global economies.

Understanding
Entrepreneurship

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
P1 Types of entrepreneurial ventures and their relationship with typologies.............................1
P2 Similarities and Difference between entrepreneurial ventures..............................................3
P3 Assessing and interpreting the impact of micro and small businesses in economy...............4
P4 Contribution of small businesses and start-ups in growth of social economy.......................6
PART 2............................................................................................................................................8
P5 Characteristics, traits and skills of successful entrepreneurs.................................................8
P6 Assessment of aspects of entrepreneurial personality in reflecting entrepreneurial
motivation and mind-set..............................................................................................................9
P7 Factors that foster or hinder entrepreneurship.....................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................11
.......................................................................................................................................................13

INTRODUCTION
Entrepreneurship refers to the effective concept of managing and developing a business
venture to gain maximum profit by taking few risks or threat in the corporate world (What is
Entrepreneurship?, 2017). In simple word, entrepreneurship is a willingness or desire to
establish a new business in systematic manner. It played a vital and critical role in the economic
success of enlarging global marketplace. It is also define as an effective process of of running,
planning and lunching a new venture (Aldrich, 2012). An individual who develops these
enterprise are called entrepreneurs and they has more capability to maximise sales or revenues.
The present assignment is based on “Entrepreneurship”, it covered different tasks. Different
types of entrepreneurial ventures and its link with entrepreneurship typologies. All these have
some differences and similarities which are determined in this report. Impact and contribution of
small and micro business in growth of social economy is also determined in this project.
Characteristic, skills and traits and personality of successful entrepreneurs reflect on
entrepreneurial mind set and motivation which is also analysed in this assignment.
PART 1
P1 Types of entrepreneurial ventures and their relationship with typologies
Entrepreneurship is identify an an essential and main process that deals in developing and
launching new business by taking risks in the aim to earn maximum amount of money. An
individual who open a new venture are known as entrepreneur. They have many role and
responsibility in successfully launch innovative enterprise with motive to earn more profitability
by satisfying desires and needs of clients (Audretsch, 2012). The grab chances from marketplace
and merge production factors like capital, manpower and resources in these venture opportunities
and chances for attaining maximum ration of profit. Several entrepreneurial classification by
which more profits automatically can generates. All these are determined as below:
Small-business: Today, the enormous number of startups and entrepreneurs in the UK
are still small in size. In United state, there are approx 5.7 million new and small ventures. They
compose 99.7% of whole business and work 50% of entire non-governmental workforces. Small
business are hairdressers, grocery stores, travel agent, commerce store fronts, consultants,
electricians. Carpenters etc.
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Scalable startup: These business people start a business understanding from day one that
their motive and vision could modify the world. Scalable startups in new clusters such as silicon
Valley, New York, Israel, Bangalore, Shanghai etc. compose a few number of startups and
entrepreneurs due to the large returns, entrance almost entire risk capital.
Large company: These type of business have finite life cycle. In order to growing and
developing their business operations in marketplace they offering new products and sustaining
innovation that are deviation around their quality goods (Audretsch, Falck and Heblich, 2011).
Variation in advanced technology, customers taste, legislation, new challengers, etc. can develop
pressure and force for disruptive innovation- necessitate large number of business to develop
new product entirely with purpose to sold into potentials and target clients in innovative place.
Social entrepreneurship: An individual who run this business are known as social
entrepreneur or innovators. They are mainly emphases on developing new services and products
that solve different issues and problems related to social needs. Main goals and motive of this
business people is to make an effective and better place in all over the world but not sized market
share.
Types of entrepreneurs and their relation with typologies of entrepreneurship. These are
determined as below:
Serial Entrepreneurs: An individual who run their new venture incessantly and sell it off
an earlier are known as serial entrepreneur. They have innovative and creative ideas in order to
develop their business operation in successful manner.
Social entrepreneurs: An individual who have new ideas in order to solve social needs
and problems are called social entrepreneurs (Bruton, Ahlstrom and Li, 2010). They are
persistent and ambitious, tacking main social problem and rendering innovative as well as
creative plans for wide-scale change. They are more capable and ambitious of managing social
problems that are prevailing or overcoming in the society.
Female entrepreneurs: Women entrepreneur is refers to the effective process where
female organise and establish entire factor of production. These has more capability in order to
undertake all risks and give employment opportunities to other.
Male entrepreneurs: An individual who run, organize and initiate a new business venture
are known as male entrepreneurs. This type of entrepreneurship is mainly managed and
controlled by male person. In worldwide, they have approx 49% shares.
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P2 Similarities and Difference between entrepreneurial ventures
Entrepreneurs is an individual who runs and starts a new venture with few resources and
designing, they are responsible and liable for entire hazard and rewards of her or his business
speculation (Bruton, Ketchen and Ireland, 2013). Entrepreneurial venture can be determine as an
enterprise that places creation and opportunism and exploitation at its heart to produce social and
economic value. Below mentioned are few difference and similarities of entrepreneurial are
determined as below:
Lifestyle venture (Similarity) Serial venture (Similarity)
 A person who start and run new
business out of their passion or desire
rather than exclusively for profit are
called lifestyle venture.
 Main aim of this venture is to earn
maximum profit by providing quality
products and services to ventures.
 Lifestyle venture also take a risks in
order to enhance their business
operations and activity earlier.
 An individual who continuously run
and start new business and sell off the
venture or activity at earlier are known
as serial entrepreneurs.
 As similar, main motive of serial
venture is to achieve maximum amount
of profit by solving social needs and
problems.
 They are more likely to sized risks and
recovers or improve from enterprise
failure (Carraher and Paridon, 2015).
Difference Difference
 An individual who operates and run
their business ventures with their own
amount of capital.
 They doesn't have planned strategies
and policies about running new
business successful.
 Their motive is to not earn money as
they establish it according to their
lifestyle.
 These are the ventures who run and
operates new business with not only
their fund but also in another resources.
 They already have new and effective
strategy to run their business operations
easily.
 Main of of serial venture is to attain
maximum amount of capital only.
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Female entrepreneur (Similarity) Male entrepreneur (Similarity)
 Main aim of female entrepreneur is to
achieve maximum amount of capital.
 Decision-making power of female is
much good as compare to male.
 Main motive of this entrepreneur is to
motivating their employee by providing
flexible working options (Desai, 2013).
 Male entrepreneurs main motive is to
earn more profit.
 In difficult situation, male entrepreneur
quickly take an effective decision
regarding business success.
 Main motive of male entrepreneur is to
only achieving maximum profit.
Difference Difference
 Money is not the first priority and
informant factor of female entrepreneur
when ruining a new business.
 Female entrepreneurs are more patient
level than their male association.
 Communication power of female
entrepreneur more better as compared
to male business people.
 Money is a top and first priority of the
male entrepreneur when establishing a
new business.
 Male entrepreneurs have more
confidence and experience when
opening a new business.
 Communication ability is much better
as compare to women entrepreneur.
P3 Assessing and interpreting the impact of micro and small businesses in economy
There are mainly three kind of enterprise that are mostly conducted in a community.
These are determined as below:
Micro business: It is mainly outlined as a small enterprise that employ 9 or fewer people
and having a turnover and balance sheet less than a minimum amount approx €2 million or 3
million. There are different number of micro business are present in the country which are owned
by youngsters (Drucker, 2014). In nature such type of business is more flexible in which
business people work and function according to their capabilities and skills.
Small business: It is an independently operated and owned enterprise that is limited in
revenue and in size which is depend on industry. For example: manufacturing facility that
workers less than 500 and local bakery that has 10 people are best example of small business. It
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is a privately owned sole proprietorship, corporation and partnership that have less revenue and
employees than a corporation and regular sized enterprise.
Medium-sized enterprise: These are business which is neither classified under small
category and not in big size. It is made up of business which includes fewer than 250 employees
and which have annual turnover is approx 50 million euro. Main aim and purpose of this
business is to maximise sales and earn more profit as compare to another organisation.
There are different characteristic of sole proprietorship, private organisation and partnership
which are determined as below:
Partnership: In this business more than 2 parties are highly involved. They have more
ability to share loss and profit with one of all. In this company. Few employee are work with
each other and have motive to maximise their sales in allotted time period. Main characteristic of
partnership is having equal interest and loss and unlimited liability.
Sole proprietorship: Under this, different types of enterprise highly included which are
run and operate by single person (Fayolle, 2013). They have maximum ability to monitor whole
operations and activities in a proper manner. These business have some characteristic such as-
This company is monitored and established by single person. In this business proprietor or owner
has unlimited liability.
Private business: It is another type of business which is monitored and controlled by
individual as well as non-governmental organisations. In order to managed this type of business,
government has less power as compared to other person. Main purpose of this company is to
maximise their sales and earn more profit. There are some characteristic of such kind of firm
such as: main objectives is to increase sales or revenues, this business is controlled by single
person as well as non-governmental organisations (Hlady‐Rispal and Jouison‐Laffitte, 2014).
Four areas where SME's effects: There are mainly four areas such as national, international,
regional and local. All these are determined as below:
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Illustration 1: Macro and Small business employment
(Source: Effects on different location, 2015)
Regional effects: The impact of small and medium enterprise on regional area is a
positive for example: In this they obtain the benefit of developing new products and pricing
strategy as per their choice. In this SME's mainly knows the basic needs and wants of customers
and provide them effectively.
National Effect: In national areas impact of small and medium enterprise is that they
assist in creating the growth of economy by establishing maximum number of firms and thus
providing better job opportunities to people who live in such area. Through, maximum amount of
fund will be yield in the economy or nations.
Local Effect: In such area, SME's has more and strong effect in providing more
employment opportunity to the people. In this they are having positive and direct effect in
enhancing standard and quality of living people.
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P4 Contribution of small businesses and start-ups in growth of social economy
Brexit: It is a term for the hypothetical and potential departure of the UK from the EU
(European Union). Britain and Exit is a combination of Brexit which introduced to Britain's
withdrawal from EU. It is process which was run from 29 march 2017. Small-business and Start
ups are mainly involves in growth and development of economy (Kiss, Danis and Cavusgil,
2012). In UK, different companies are developing speedily and it is essential for economy
development as its share in approx 30% in such growth. In this Brexit put direct and negative
influence on business functions and activities.
Difference between start-up's and small-business: There are some points which are determined as
below:
Small-business Start-up's
 Limited upside potentials.
 Give more traditional goods and
services.
 This business is less scalable as
compare to start-up's.
 It is a privately owned organisation
with less revenues and employees.
 Low modifications of failure.
 Driven by stable long term value and
profitability.
 They has more upside potentials.
 New products and services with higher
market size.
 High growth potentials and scalable
business model.
 Working and functioning towards
innovation.
 They mainly emphasised on top-line.
 High variation of Failure (Kuratko,
2016).
SME'S impact of social economy of United kingdom: There are different aspects which are
detail define small and medium business effects are as follow:
Social and economic development: In development of society, SME's has more impact
on its growth and development. In united kingdom, there are about 5 million organisation that
are responsible for providing large number of job opportunism to unemployed people.
Impact on taxes and revenues: It is another effect which influence on business
operations and activities in a direct and indirect manner. This highly influence on unemployed
people because SME's provides more opportunities to the person. There is direct link between
revenues and taxes.
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Exports: It is important part of the each and every organisation to increase their sales and
revenues. In this export of services and product in other country in not a big cause now a day. It
is completed with the aim of capturing large number of market share which outputs in
maximising profit of nation ( Meyer, 2011). In United Kingdom, actual data of export is about
408.9 billion and involvement of small-business and start-up's is approx 15%.
Growth and development: Growth and success of economy in mainly depends of present
employment of the nation. It can be measured by the number of employed person. In this start-
up's provide maximum chances to the unemployed people by rendering job opportunities to the
local residents. Thus it is beneficial and essential for the success and development of country.
PART 2
P5 Characteristics, traits and skills of successful entrepreneurs
In marketplace, there are large number of the entrepreneurs who are establish and run
their business operations in successful manner. Two chosen entrepreneurs such as Steve Jobs and
Bill Gates, both are successful in their own stages. There are some skills, traits and characteristic
of bother entrepreneurs which are determined as below:
Hard workers: Both entrepreneur are hard worker in its own filed which is essential for
the success and development of company (Rasmussen, 2011). This characteristic highly requires
when completing business functions and activities in given time period.
Money management: It is another characteristic which is more essential and beneficial
for the each and every entrepreneur to manage money. In order to run and establish new business
operations and activities at large level, money is highly important. So in this they are capable to
manage all resources about money.
Successful planner: Steve Jobs and Bill Gates, both entrepreneur are successful planner
in terms of providing job opportunities, increasing sales and developing growth of economy in
limited time period. With the help of this quality they successfully plan how to accomplish long
term goals and objectives easily.
Risk taker: In during the business operation, all people face some risk and difficulties so
they tries to overcome this in easy manner. This quality assist in maximisation of profit and
sales. It is also support in solving all issues which are arise in the organisation.
Skills and traits of Steve Jobs and Bill Gates:
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Communication: Both entrepreneur have better communication skill to deals with
different situation and meet long term goals and objectives of new business in allotted time
period. In this both are tries to communicate necessary and all information to their staff members
which reduce conflict among them.
Leadership: It is another skill which help them in order to guide employees regarding
business functions and activities (Slavec and Drnovsek, 2012). Both are successful leader in their
field which tries to attract large number of customers by providing quality products and services
at reasonable prices.
Traits of both entrepreneurs: Both entrepreneur have high level of confidence and motivation to
overcome all issues and solve difficult situation in an easy manner. There are mainly seven traits
which are determined as below: Tenacity: It is main traits, so in this entrepreneurship is handling with failure. Passion: Believes of Both entrepreneurs is to change world. Vision: Both entrepreneur frequently face obstructor, before the early plays out. Self-belief: In this Steve Jobs and Bill Gates have a lot of self-belief or confidence, in
this they will be willing to take a hazard, but be conservative. Flexibility: In this they have to be honest and willingness with yourself as well as say,
this is not working (Stewart and Cotton, 2013). Rule breaking: In this both entrepreneurs come up to hold conventions wisdom. It is a
combination of aggressive and smarts, risk taking activities, illicit is a characteristic mix.
 Tolerance of ambiguity: It entire boils down to bring capable to successful handle fear.
Running out of cash, fear of mission payroll, humiliations, bankruptcy, these are list
which are goes on.
P6 Assessment of aspects of entrepreneurial personality in reflecting entrepreneurial motivation
and mind-set
Personality and behaviour of the entrepreneurs is mainly linked with its behaviours which
assist in define that work is completed effectively. In order to know properly, business people
will select an effective framework which covers five elements. It supports to cater impact on
mindset and motivation of an individual. All these aspects are determined as below:
Extraversion: In this an individual who are involved with this matter are more energetic
and share their ideas and felling with others in easily (Vanevenhoven and Liguori, 2013). This is
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a type of skill by which both business people feels works hard or motivated as well as
accomplish their goals in fewer time period. So they thinks with deep orientated and capable is
opening open conversations in organisation.
Agreeableness: It is another kind of talent which must be integrated in their organisation
so that workers behave better. If business people is loyal and trust worthy with his workforce
they they could develop unison in enterprise.
Conscientiousness: This is a type of skills which is essential for the person to accomplish
their long term goals and objectives in an effective manner by creating dedication among all
workers towards their job responsibility. In this manager should be capable in order to handle
their employees by making effective activities.
Emotional stability: It is another part of skills which assist the entrepreneur in order to
inspire their workers towards duty (Wood, Davidson and Fielden, 2012). So they are capable to
deals with difficult situation easily. If they are having long lasting and strong relationship with
the employees, they easily accomplish their predetermined goals.
Openness to experience: In this management should be ready in order to take an
innovative tasks as well as change their system according to market demands so that they are
capable to maintain competitive. It also render business to survive and develop by adding
innovative things and feature in their services and goods.
P7 Factors that foster or hinder entrepreneurship
Entrepreneurship is refers as an effective process of running, establishing and operating
new business. There are different elements which are highly hinder on entrepreneurship, these
are determined as follow:
Education: Education level of Steve Jobs and Bill Gates is not similar with
entrepreneurship. This factor highly effects on entrepreneur mindset and motivation level in an
effective and efficient manner.
Family Background: It is another factor which highly hinder on entrepreneurship
process in a direct and indirect manner. Bill gates is a operator of Microsoft company, their
family background is totally related with education (Ziegler, 2011). But they tries to launch an
new venture, in during this process they face different issues but they are did not give up and
solve all issues easily.
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Nationality: Under this , nationality of the entrepreneurs are highly effects on
entrepreneurship in a negative and positive manner. For example: Steve jobs, they was born on
24 February 1955 in San Francisco, California, they are launch their new business is another
country, in during this they face different issues which is hinder entrepreneurship.
Social network: This factor also effect with the interaction of community. In order to
establish their business operations and activities at different level they use various kind of social
network (Ziegler, 2011). These assist in maximisation of growth and success in marketplace.
Economic Circumstance: This factor play vital role in recognising the outcomes which
assist entrepreneurs in working and functioning in the economy. So this factor also effects on
entrepreneurship in negative and direct way.
CONCLUSION
From the above mentioned report, it can be concluded that entrepreneurship is one of the
main process which employing large number of business. Different types of entrepreneurs and
their interrelation with entrepreneurship assist the unemployed in term of rendering job
opportunities. Social, male, female and serial entrepreneur play important role in providing job
chances to the unemployed person who are living in same country. Along with them small
business and start-up's, both are highly effects on economy development in four areas such as
international, national, regional and local. Characteristic, traits, skills of the business people is
influence its mind set and motivation level while establishing new venture systematically.
REFERENCES
Books and journals
Aldrich, H. E., 2012. The emergence of entrepreneurship as an academic field: A personal essay
on institutional entrepreneurship. Research Policy. 41(7). pp.1240-1248.
Audretsch, D., 2012. Entrepreneurship research. Management Decision. 50(5). pp.755-764.
Audretsch, D.B., Falck, O. and Heblich, S. eds., 2011. Handbook of research on innovation and
entrepreneurship. Edward Elgar Publishing.
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.
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Bruton, G. D., Ketchen, D. J. and Ireland, R. D., 2013. Entrepreneurship as a solution to poverty.
Journal of Business Venturing. 28(6). pp.683-689.
Carraher, S. M. and Paridon, T. J., 2015. Entrepreneurship journal rankings across the discipline.
Journal of Small Business Strategy. 19(2). pp.89-98.
Desai, V., 2013. The Dynamics of Entrepreneurship Development Management: Planning for
Future Sustainable Growth. Himalayan Books.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Fayolle, A., 2013. Personal views on the future of entrepreneurship education. Entrepreneurship
& Regional Development. 25(7-8). pp.692-701.
Hlady‐Rispal, M. and Jouison‐Laffitte, E., 2014. Qualitative research methods and
epistemological frameworks: A review of publication trends in entrepreneurship.
Journal of Small Business Management. 52(4). pp.594-614.
Kiss, A. N., Danis, W. M. and Cavusgil, S. T., 2012. International entrepreneurship research in
emerging economies: A critical review and research agenda. Journal of Business
Venturing. 27(2). pp.266-290.
Kuratko, D.F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Meyer, G. D., 2011. The reinvention of academic entrepreneurship. Journal of Small Business
Management. 49(1). pp.1-8.
Rasmussen, E., 2011. Understanding academic entrepreneurship: Exploring the emergence of
university spin-off ventures using process theories. International Small Business
Journal. 29(5). pp.448-471.
Slavec, A. and Drnovsek, M., 2012. A perspective on scale development in entrepreneurship
research. Economic and Business Review for Central and South-Eastern Europe. 14(1).
p.39.
Stewart, A. and Cotton, J., 2013. Making sense of entrepreneurship journals: Journal rankings
and policy choices. International Journal of Entrepreneurial Behavior & Research.
19(3). pp.303-323.
Vanevenhoven, J. and Liguori, E., 2013. The impact of entrepreneurship education: Introducing
the entrepreneurship education project. Journal of small business management. 51(3).
pp.315-328.
Wood, G. J., Davidson, M. J. and Fielden, S. L., 2012. Minorities in entrepreneurship: An
international review. Edward Elgar Publishing.
Ziegler, R., 2011. An introduction to social entrepreneurship. Edward Elgar Publishing.
Online
What is Entrepreneurship?. 2017. [Online]. Available through:
<http://www.businessnewsdaily.com/2642-entrepreneurship.html>.
Impact of small-business in UK economy. 2018. [Online].Available
through:<http://smallbusiness.chron.com/important-small-businesses-local-economies-
5251.html>
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