Understanding Entrepreneurship: Types, Impact, and Success Factors

Understanding entrepreneurship
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Table of Contents
Introduction......................................................................................................................................3
Part 1................................................................................................................................................4
Part 2..............................................................................................................................................14
Conclusion.....................................................................................................................................20
Reference List................................................................................................................................21
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Introduction
The term 'Entrepreneurship' came into existence in the era of 1700, referring to the starting of
the business by an individual. According to Schumpeter, entrepreneurship is a kind of creative
destruction, where innovation plays a vital role in creating new products and business (Burns,
2016). Entrepreneurship actually identifies the opportunity and makes the most out of the
opportunity, creating wealth and value in exchange. An entrepreneur develops business that
takes the shape of large-scale enterprises in future. The entrepreneurs actually take helps from
local franchise outlet, plans small retail shop and operate with self-employed service business.
Individuals cater to the needs the society, bringing in the concept of innovation in products and
processes. The entrepreneur to become successful should have the aim to earn profits from the
new business. In this report, different kinds of entrepreneurship are discussed along with the
contribution of SMEs in social economy of UK. The various skills and characteristics of an
entrepreneur are discussed in this report.
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Part 1
Introduction
This report sheds light on the different typologies of entrepreneurship identified in the market.
The difference between public, private, social and corporate entrepreneurship is illustrated in the
report. SMEs in UK economy has made great contribution and offered employment opportunity
to many individuals. SMEs though exist for shorter period but have contributed in the UK
market.
P1: Provide an introduction to the report by examining different types of entrepreneurial
ventures and explaining how they relate to the typology (different types) of
entrepreneurship. Your introduction should aim to define entrepreneurship and explore
entrepreneurship scope and typology.
Entrepreneurship helps in spurring economic growth in free markets, thereby acting as the
catalyst helping in development. Entrepreneurship is the entrepreneurial process while an
entrepreneur with skills and attributes executes the process to receive exchange and value.
Different typology of entrepreneur is discussed below:
Corporate entrepreneurship:
Corporate entrepreneurship develops innovative products in an existing market with the aim of
making maximum profit (Anderson et al., 2017). A corporate entrepreneur should possess strong
communication skills, effective teamwork ensuring coordination and have well-developed
strategic actions. In corporate entrepreneurship, entrepreneurial activities are conducted in large
corporations where the management encourages the employees to come up with new and unique
ideas and concepts. To sustain its existence, large companies require expanding their business by
creating new innovative products. The scope of the corporate entrepreneurship is to instigate
innovation in the organization, explore research activities, attempt to take calculated risks and
makes investments in new promising zones. This typology creates an environment that has the
strength to bear risks and failures and conducts experiment in business activities.
Intrapreneurs:
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Intrapreneurship is an innovative corporate management strategy that motivates the employees to
have innovation in creating new ideas and products. Once the innovative ideas suggested by the
employees are approved then the management provides finances, conducts research and
development for the product, thus sharing an equitable partnership with employees. The
entrepreneurial activities in this typology take place within an organization.
Academic Entrepreneurship:
The entrepreneurial activities take place in academic and research institutions. The research and
development of products takes place with the goal to achieve intellectual property rights and
commercialization through sales of technology licensing or creation of new ventures.
Private Entrepreneurship:
In this typology, entrepreneurial activities takes place in independent firms were the innovation
process is most prevalent. The process begins with the identification of the opportunity, setting-
up of business entity in the market with the aim to achieve the highest position and maximum
profit through harvest strategy.
Public Entrepreneurship:
The scope of innovation is less, as the organizational structure is rigid. Incentives are not offered
to the employees serving as de- motivation (Colombo et al., 2016). The entrepreneurial activities
are mainly conducted by government-linked organizations or state-owned enterprises. Majority
of public enterprises are formed with the aim to provide efficient services to the individuals.
State-owned enterprises perform through joint ventures, management buyouts and equity
participation, entrusted with the job of conducting entrepreneurship development in respective
states.
Social Entrepreneurship:
The focus of social entrepreneurs is to cater to the needs of the society, resolving social issues
with the help of products. Incentives are offered to the employees in the form of social welfare.
Social enterprises identify the social problem and entrepreneurial approach to organize, create
and manage venture with the aim of gaining social ROI.
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Lifestyle Entrepreneurship:
Lifestyle entrepreneurship is the process of creating new ventures based on an individual’s
passion and without focusing much on profit. This typology involves the combination of an
entrepreneur’s personal interest to achieve profit and wealth for long run. Proper location and
flexibility in working hours is the requirement for such entrepreneurships to develop and create
business. The enterprise enjoys kind of personal autonomy in business and the profit value is
high.
Others (Technopreneurs, Infopreneurs, Agripreneurs)
Technopreneurs are those entrepreneurs who are technology savvy in nature and earn profit
utilizing their skills and expertise in respective technologies. Some of the famous technopreneurs
are Michael Dell and Bill Gates who have achieved success in development of technology based
industries. Technopreneurs work in the field of e-commerce, biotechnology, multi-media based
technology, pharmaceuticals, thereby influencing all over the world. Agripeneurs creates
innovation in the agricultural field. The entrepreneurs in this field focus on planting and
producing agricultural products for consumption such as down streaming activities like
packaging and processing. Infopreneurs utilize information as commodity for sale. Infopreneurs
sell information’s to those who develops information as business strategy and for promotional
activities.
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