Unit 9 Entrepreneurship And Small Business Management : Doc

Unit 9
Entrepreneurship And
Small Business Management
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Various types of entrepreneurial ventures and explain how they relate to the typology of
entrepreneurship.....................................................................................................................3
P2 Explore the similarities and differences between entrepreneurial ventures......................5
TASK 2............................................................................................................................................6
P3. Interpret and assess relevant data and statistics to illustrate how micro and small
businesses impact on the economy.........................................................................................6
P4. Explain the importance of small businesses and business start-ups to the growth of the
social economy.......................................................................................................................8
TASK 3............................................................................................................................................9
P5. Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers.......................................................................................9
P6. Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mindset...........................................................................................................................11
TASK 4..........................................................................................................................................12
P7. Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship...................................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
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INTRODUCTION
In present time entrepreneurship and small business is in trends, along with the
government it is also supporting to entrepreneur who is starting new business (Audretsch,
2012) . These types of business can help to develop the economy of country and also increase job
opportunity for the people. Entrepreneurship is described as a process where an individual
design, launch and establish a new business which can be small at initial level. When people can
establish new business at any level it can include as entrepreneurs. If an entrepreneur can
establish new business that time face huge level of risk due to individual has to invest huge
amount in their business to get succeed. It is happened because in market place have same type
industry who are operating business at large level. In the particular report consider that how
management of small business as well as entrepreneur are done in order to get successful at
marketplace. Topics which are consider under this report range different type of venture related
to entrepreneurial and impact of small business on the economy. Apart from evaluate the key
aspects of an entrepreneurial mindset and different environments that foster or hinder
entrepreneurship.
TASK 1
P1 Various types of entrepreneurial ventures and explain how they relate to the typology of
entrepreneurship
The entrepreneurship is the capacity and willingness to produce, organize and control to
all business venture along with any of its risks in order to make a profit. They can establish new
business to gain profit and doing social welfare. An entrepreneur can establish new business
where face various type of risks like marketing risk, financial risk and product risk. There are
different type of entrepreneurial venture which can run at marketplace, they are explain below -
Type of entrepreneurial ventures
Large scale enterprises – For establish their type venture need to huge capital of amount
and market share in reference to manufacturing company. These type organisation manufacturer
product on large level and innovate new products for customer. These products are producing for
customer on the basis of their taste & preference and fulfil their needs and demand. In changing
world they can change products & services as per customer requirements (Belz and Binder,
2017).
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Small scale enterprises – In this type of venture mainly conduct commercial activities at
a small level and aim of the venture to earn profit. The particular business manage and control by
manager in order to aware of market activities because few changes directly influence to small
scale enterprises. Such as grocery store, cafe and restaurants any many more.
Social enterprises – These types of enterprises can work for social welfare it means they
can fulfil the demand of customer in effective manner. The main aim of the business to provide
good and healthy products to customer which can suitable to an environment.
Scalable business enterprises – In this type of entrepreneur the firm can focus on the
quality of the products rather than to producing too much goods in huge quantity. With the help
of quality they can maintain customer loyalty and attract t investors for invest in their products
(Bridge and O'Neill, 2012).
Type of different type of entrepreneur typology Lifestyle Entrepreneur – These types of entrepreneur mainly focus on their life style so
according to that they are selecting particular sector for conduct business. The aim of the
entrepreneur to generate more profits and fulfil their desire as per market share. They are
mainly started business according to their financial condition like small and larger
business level. Relatively modest reinvestments are made to maintain competitiveness in
a local market. Aggressive Growth Entrepreneur – these are typically technology based entrepreneur
with strong innovation capabilities that are looking for exponential growth and are funded
by equity capital. Their launch is opportunity-driven, with the founders seeking to create
new market and their market focus is typically national or international. They become
candidates often for initial public offerings or acquisition. Managed Growth Entrepreneur – this type have continuous but moderate regional
growth, guide on-going business development and reinvestment in the business, has a
workable business model, periodic entry into new market, steady expansion of facilities,
staff and location and develop strong local and regional brand.
 Serial Entrepreneur – They are taking challenges regarding to particular product and
launch in market in modified way. They are providing services of new products and
services in order to fulfil demand of present and potential customers (Canina, Palacios
and Devece, 2012).
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P2 Explore the similarities and differences between entrepreneurial ventures
There are defined differences between different types of ventures on the basis of
definition, characteristics, roles and objectives -
Definition – There are defined difference through definition of small business, scalable
start up, large company and social entrepreneurship -
 Small business - It is related to small type business where invest amount to build up
small sized business.
 Scalable start up - In these type businesses has started by entrepreneur to gain their
vision.
 Large Company - These are based on the infinite cycling to show impact on the new
products and services to fulfil needs and requirement.
 Social Entrepreneurship - They are called as innovators who comes into market with new
idea to fulfil the needs and requirements of society.
Characteristics – Every types of business venter have own characteristics which can
help to become different -
 Small Business - To conduct business activities, need to resources which can arrange
without interference of Government
 Scalable Start up - It is mainly considered to expand their business on large level in short
time period.
 Large company - It is current process which modification according to the move in needs
and necessitate of customers.
 Social Entrepreneurship - Adequate support from government due to which easily
acquire resources to operate business.
Roles – These ventures are play different roles
 Small Business - To utilise limited resources to earn profit.
 Scalable Start up - They have role to search repeatable and scalable model.
 Large company - Its role is to facilitate customers to get quality products and services so
so as to maximise their level of satisfaction.
 Social Entrepreneurship - They have role to create awareness about their health and
safety products.
Objectives – Every venture have different objectives according to their size -
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 Small Business - To earn livelihood.
 Scalable Start up - To invite investors to show their willingness to provide financially
help to their new and innovative ideas.
 Large company - Its main objective is to meet the needs and requirements of customers
through using advanced technology in their business.
 Social Entrepreneurship - It has main objective to maximise the interest and satisfaction
level of society through providing them social welfare products and services.
There are defined ventures have some similarities as well as which are briefly mentioned as
under -
 These types of ventures are established into market to analysis of customers needs as well
as preferences.
 With specific innovative ideas established a particular venture and it will develop by the
entrepreneur.
 All the business discussed have common aim which is introduced a successful business
and to be developed with in shorter period of time.
TASK 2
P3. Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on the economy
Entrepreneurial business can be divided into two part first one is micro level and second
one is macro level. According to these business need to less amount as compare to large business
because they generate low profit and also turnover ratio. Micro business can be defined that it
can operate at small business level where only include less than five members on the workplace.
For these type businesses required to capital about less than $40000. On the other hand, small
business can operate their business according to their style and owned company where are
working few staff members to earn less profit. In the context of United Kingdom, an
entrepreneurs is important part of any country because they can become part to boost economy
of the country (Kuckertz, 2013) There are explained impact of small business in order to
economy of a country -
Increasing job opportunities – An entrepreneur can help the economy by providing
various job opportunities. In order to run an manage a business every businesses need human
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resources as they are the backbone of any business. If a new business is established by an
entrepreneur it will require human resource in order to run and manage its business which will
result in the creation of new jobs (Lortie and Castogiovanni, 2015).
High flow of cash – Entrepreneur can help the country to increase its flow of cash as it
will be producing new and innovative product which will incur some cost and the money which
was struck can be again circulated back in the market for procurement of raw material which will
improve the cash flow in the country.
Optimum utilisation of resources – An entrepreneur brings in new and innovative ideas
in order to establish a business. There are different type of resources which are used to
manufacturer different products. For produce products there is need to inventory (raw material),
funds, labour, land and many more. As small enterprises does not have much funds so they
prepare strategy which involves optimum utilisation of resources in effective manner in order to
reduce wastage of resources. In the case of large business an enterprise can start their business
according to budget and mainly focus on optimum use of resources.
Impact of small and medium business enterprises can be presented through graph because
it can be easily understood. Following is the graph which shoes impact of small and macro
business entrepreneurship on United Kingdom -
Year Value addition by SME's in UK economy
2008 100
2009 85
2010 82
2011 90
2012 100
2013 105
2014 120
2015 140
2016 135
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2017 130
2018 130
(Source: Impact of SMEs on growth of an economy, 2018)
From the above graph it can be interpreted that the economy of United Kingdom is
growing with the increase in small and medium enterprises as they have increased the various
employment opportunities in the country. The above graph also states that 40% of the total
employment generated with in the country are due to these small businesses.
P4. Explain the importance of small businesses and business start-ups to the growth of the social
economy
In any social economy small and medium enterprises can play essential role in order to
organization development and improvement to grab opportunities and maintain sustainability in
firm. There are many important factors in order to helping for economic development hat are as
follows -
Large employment opportunities
It is one of the important factors of small and medium enterprise which can provide
contribution in order to improvement of employment opportunities to large masses in the
economy of United Kingdom. It will become strong when small and medium enterprise starts
and provide opportunities to people for working with them. It can be based on the consumer and
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enhance their living of standard to provide different products. To expand the business according
to country so there is need to giving salary and compensation to their employees (Mitchelmore
and Rowley, 2013) .
Innovation
It is one of the important factors in order to contribute in large way regarding to
economic and personal development that can provide different products and services to their
customer. Innovative products and services are developed to fulfil demand of customers.
Social status
It is essential factor which can provide best living style and standard of people to expand
per capita income that is important to show economic growth and intensify. If living standard
increase so automatic social status increase of people that is shows positivity.
Sustainability
It is one of the important factors which can help to accomplish profit in competitive
advantage regarding too long time period. Due to fierce competition a business can provide to
good quality products and services according to environment perspectives. In present time
people can aware for the environment so they want to eco-friendly products and services. As an
entrepreneur they can focus on these things and satisfy to customer to emerging needs and wants
to gain profit in large market (Pato and Teixeira, 2016).
All the above described points can depict than small and start-up businesses are very
important for the growth and development of social economy. As Brexit was a huge challenge
for UK and small and start up organisations have helped to deal with it effectively
TASK 3
P5. Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers
Entrepreneur is an individual who has the capability to establish a business in order to
design as well as launch the products by anticipating the current and future needs of the society
by managing the risks associated with them. Various key skills are required for becoming a
successful entrepreneur who helps in monitoring the activities and taking effective decisions.
They play a crucial part in the contribution towards the country. Mark Elliot Zuckerberg is a
software developer, philanthropist and co-founder of Facebook and was born on May14, 1984.
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and William Chase is an investor, philanthropist and business magnate. There are following
skills of both entrepreneur -
Skills
 Critical thinker: Such skill is required to encourage the thinking individual for getting
innovative ideas. It enhances the problem solving and self-corrective, monitored
thinking. This skill helps in analysing the facts and making any judgements. In respect
of Marks Zuckerberg and William chase are critical thinker as they goes deeper in
thinking about any problem, issue or any idea. Both are focused on thinking more and
more rather than accepting the first idea (Rideout and Gray, 2013) .
 Communication skills: This skill is required in any successful business. All the
relevant information are communicated with various people in any firm for conduct
work in proper as well as appropriate manner. In respect to Marks Zuckerberg and
William Chase focuses on increases the communication as well as interaction with
different people at workplace. Open communication is used to build a trust with team
members and ideas are shared for achieving the targets.
Traits
 Visionary: this skill includes the thinking as well as planning about the future. It is one
of the essential as well as required skill. An entrepreneur must have visionary skill to
forecast future in present for formulating strategies, policies and plans in appropriate
manner. Marks Zuckerberg and William Chase analyses and understands issues or
problems which Microsoft chances have to face while operating activities.
 Flexible and adaptable: A business entrepreneur must be flexible and adaptable to any
changes in different situations. In today's scenario, customers preferences are changing
with the changing environment. It is necessary for entrepreneurs to adopt changes if
they have to survive and grow. In respect of Marks Zuckerberg and William Chase,
they have innovative and creative skills which helped him to develop Microsoft. In
addition, both are flexible and adaptable to the changing situations by analysing and
understanding them properly to formulate future plans.
Characteristics
 Passionate – It is very important for both entrepreneur that they will be passionate for
their goal of life that will help to introduce of business in successful manner. The
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particular characteristics differentiate from others due to it is very difficult for all the
entrepreneurs to be passionate every time.
 Risk taking - Both the entrepreneurs have successfully launched new idea along with
products that determines that they have taken district risks in their life span as to
introduce such ideas or products. It shows that they both are not afraid to take risky
decisions in the competitive world. While other afraid to take risks as it has chances to
impact in negative manner. On the other hand, entrepreneurs such as Mark Zuckerburg
and William Chase have potentiality to take risk that is the one of trait that differentiates
them from other entrepreneurs.
Both entrepreneurs different from other entrepreneurs because their strategic vision helps
to focus on their work and try to get success in short time period. Their communication skill will
help to talk from other in specific manner and easily contact to those people who can help to get
success. Delegation, critical thinking makes different from other and make successful person in
present time.
P6. Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mindset
In an entrepreneur have many features and skills which can help to them for become as
successful entrepreneur - Openness to experience – According to this factor an entrepreneur has skills of
innovation and creativeness regarding to new product and services. They can think about
the new strategies and plans in order to achieve set goals and objectives in appropriate
manner (Robles and Zárraga-Rodríguez, 2015). With the help their skills they can design
and manufacture new products as per customer requirement. An entrepreneur must be
open minded which can help to itself and their employees to learn new things and every
problem take as challenge to accomplish advantages. Conscientiousness – This element defined that an entrepreneurs have skill of
consideration which can help to them for accomplish desired goals and objectives. It can
help to take necessary decision regarding to their product and services. Apart from
conduct all business activities to fulfil all requirements. It can help to set mind to get
desired result in particular time period. An entrepreneur must be focused regrading to
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their gaols and objectives and not consist of any interrupted activities and continue to
make efforts in getting targets in particular period of time. Extroversion – Communication is important part of any entrepreneur because it can help
to get success in any field. When they can start a new business, so they are
communicating to different person in market about to their product and services. It can
help to improve their products in effective manner. It will increase goodwill into market
and motivate to build up good image in organisation (Wach, 2015). On the basis of this
an entrepreneur must be energetic, assertive, talkative and social to arrange relation with
their employees. It can help to increase goodwill in effective manner. Agreeableness – An entrepreneur have to skill of trustworthy which can make famous in
among the employees. As a result they can easily contact to their head and define about
their problem. An Entrepreneur can take all appropriate responsibilities to conduct all
marketing things at particular workplace after get motivation regarding to their work.
 Emotional stability – In this factor refers that an entrepreneur has skill of stability which
can help to make stable in any situation. This will help to conduct all business elements
which are working in business according to that take right decision (Warnecke, 2013).
Through this an entrepreneur motivate to decision making process and set their mind in
emotional activities.
TASK 4
P7. Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship
An entrepreneurship process is influenced by many factors which can affected as positive
manner sometimes in negative manner. It is mainly depended on the entrepreneur to understand
all probable situations according to that develop all appropriate strategies and policies. So the
process will be conducted in effective manner. In several situation an entrepreneur can play an
important role like decision making process, understanding and handling situation and many
more. Such as skill and capabilities of an entrepreneur based on their family background,
business background which can help to encouraged to start a business with new and innovative
ideas (Thomas, 2013) . There are presented some elements of entrepreneur in order to understand
foster process -
` Mark Zuckerberg
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Back ground:
 Mark Zuckerberg was born in New York and his father was a dentist and mother was a
psychiatrist.
 From his middle school he has started to use of computer software and he has also learnt
programming from his father.
 Their family always support to him for decision making process and advise conduct work
in effective manner
Experience:
 In their young age he has faced different types of problem regarding to life for example
less funding consider one of them for business.
 As he have studied from his gather regarding to computer learning which have
experience of this (Urbano and Guerrero, 2013) .
William Chase
Back ground
 William Chase belongs from farmer family.
 In the aged of 20 her mother was died so his father lost his interest in farm.
 He was gone to boarding school for study.
 He saw that his parents come in old van for pick up.
Experience:
 In his childhood and adulthood face poverty.
 In the age of 20 he is borrowed £200000 to buy farm from his father after some time ge is
doing hard work and as a result pay wages to people without get any experience.
 After some time his family face of financial crisis and with draw money and business was
going to failure.
 At the age of school ge was going into depression and try to suicide.
 He is invested money into Woolworth and lost all money.
Experience and background of both entrepreneurs shoe effect on their decision making as
well as in their business. William chase have faced various problem in his life so he has learnt
various things. In the age of schooling he wants to attempt suicide but he can take everything as
a challenge and solve all issues. Mark Zuckerberg also faced several issues in his life. He has a
problem of color blindness but he can sort out every problem and score success.
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Impact of Background and experience on entrepreneurs, both positively and negatively
Positive Impact – Both entrepreneurs had face bad situation in their past life which can
help to learn many things. These are motivating to think big and apply in big way. They have
learned many things from their experience which can help to gain success in future.
Negative Impact – These both entrepreneurs belongs from middle families that are play
significant role to come up in their education life. They had faces struggles, restriction and gain
early growth in mid age.
CONCLUSION
As per the above report it has been concluded that in present times mostly people like to
do own business instead of job. As a result, entrepreneurship is increased, and government also
provide support to them because they becomes part of development of economy. They are
belonging to different level like local, international and country. They are divided into different
entrepreneurship venture which can divided according to several entrepreneurs who can survive
their business in effective manner. It can boost to national economy in effective manner. In the
nation many entrepreneurships who can establish their business and apply their capabilities and
skills as a result they can become successful entrepreneurs. There are also explaining different
skills like background of a family, past experience and level of education. It can bring out about
their characteristics and innovative idea into betterment of their own lifestyle and also their
nation.
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REFERENCES
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Online
Impact of micro and small business on economy. 2018. [Online]. Available through:
<https://www.ons.gov.uk/economy/nationalaccounts/uksectoraccounts/articles/
economicreview/apr2017
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