This document discusses the different types of entrepreneurial ventures, their similarities and differences, and the impact of small business on the economy. It also explores the characteristics and skills of successful entrepreneurs and how they differentiate from other business managers.
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ENTREPRENEURES AND SMALL BUSINESS 1
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Table of Contents INTRODUCTION...........................................................................................................................3 MAIN BODY...................................................................................................................................3 TASK 1............................................................................................................................................3 P1) Evaluate different types of entrepreneurial ventures and explain how they relate to the typology of entrepreneurship..................................................................................................3 P2) Explore similarities and difference between entrepreneurial ventures............................5 TASK 2............................................................................................................................................6 P3) Interpret and assess relevant data and statics to illustrate how micro and small business impact on the economy...........................................................................................................6 P4) Explain the importance of small business and business start-ups to the growth of social economy.................................................................................................................................7 TASK3.............................................................................................................................................8 P5)Determinethecharacteristics,skillsandtraitsofsuccessfulentrepreneursthat differentiate them from other business mangers....................................................................8 P6) Assess how aspects of the entrepreneurial personality reflect entrepreneurial mindset and motivation.............................................................................................................................10 TASK 4..........................................................................................................................................11 P7) Examine using relevant examples, how background and experience can hinder and foster entrepreneurship...................................................................................................................11 CONCLUSION..............................................................................................................................12 REFERENCES..............................................................................................................................12 2
INTRODUCTION Entrepreneurship is the ability to develop, organise and implement the enterprise with the new and creative idea in order to generate the revenue. Along with ready to face any of its uncertainties in order to become successful. Entrepreneurship vision is defined by the discovery of new ideas, innovation and risk taking and has a capacity to succeed in the dynamic and more competitive market place(Alstete, 2014). Successful entrepreneur knows how to develop product with the available limited resources which will fulfil the needs and wants of the customer in a effective manner. In this study, it is critically examine the relationship between entrepreneurial ventures with their typologies, similarities and difference between the entrepreneurs, along with impact of the small and micro business on the growth of the economy. Furthermore it includes characteristics, skills and traits of the entrepreneurs, aspects of the personality that reflects the motivation and mindset of entrepreneurs and various aspirations that hinder and foster the entrepreneurship. MAIN BODY TASK 1 P1) Evaluate different types of entrepreneurial ventures and explain how they relate to the typology of entrepreneurship Anentrepreneurialventureisanenterpriseorbusinessthatismanagedbythe entrepreneurs. They are commonly defined as the innovators who bring new idea and creativity in the business and bear most of the risk and enjoying the most of rewards and high revenue. They are willing to take risk on their financial security ad career and spending time as well as capital on the venture which is full of uncertainties and risk(van Kooy, 2016). Types of entrepreneurial ventures and its typologiesSmall business entrepreneurs:This is refers to the business with the adequate amount of sources and limited amount of capital and employees. This is the entity when a person owns, operates and run their own business. They are not the one who seeking for the large scale profit or the funding institution. They use their funds and saving as the capital 3
as well as the expenses. They generally hires local employees or family members for example grocery shops, boutiques, consultant, bakery shops, parlour etc. Social entrepreneurs:These are entrepreneurs who develop, fund and solve social problems by providing them products and services as per the need of the society. They have aim for making the world a better place to live and did not work for the big profits or wealth for the organisation(Bridge and O'Neill, 2017).This type of entrepreneurs tends to start the non profit organisation in which they work with the full potential towards the society cause. And also faced some problems like raising the funds and decision making related to investment of fund in right market and for the right peoples in order to provide social welfare.Innovative entrepreneurs:These are the entrepreneurs who constantly come up with the new idea and innovations. They take these ideas and convert them into business entity. In addition to this they tend to be stay motivated and passionate that works with the motive of changing the way of living and provides better way in order to improve the standard of living. They seek for making their product as service different from the other existing product. Imitator entrepreneur:This is refers to the entrepreneurs who use others ideas as inspiration and formulate them into the business with the improving in a effective manner. They tend to make the existing product and services better, effective and more profitable as compare to earlier. These are willing to think innovative and creative in the existing ideas and work to achieve their desired goals and objectives. They are associated with the self-confidence and determination as they learn from the mistakes and work to improve them with the perfection while making its own business(Burns and Dewhurst, 2016). P2) Explore similarities and difference between entrepreneurial ventures There are various types of similarities and difference exists between the different types of entrepreneurial ventures as explained below: Difference: BasisSmall-business entrepreneurs Social entrepreneursImitator entrepreneurs 4
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MeaningThisistheentrepreneurs with the limited sources and capitals.Whicharenot seekingforthelarge amount of profits and funds for the investment. Thesearetheonewho works to solve the problems of the society by providing them product and services aspertheneedand requirement of the society Thisisreferstotheone who use others ideas as a inspiration andformulate them into the business by improvingthemintoa effective manner ScaleGenerallyoperatesata small scale and worked to generatesthelimited amount of revenue(Collins and Low 2010). This types of entrepreneurs operates at a medium level as they are not working for the generation of profit These are starts at a large scale as they come with the ideatoimplementa profitable business. PurposeThey worked with the aim to be stable in the market by making better sales There purpose is to fulfil therequirementsofthe society and aim to make the world a better place to live. Theyworktochangethe wayoflivingandto increasethestandardof living by satisfying the need and wants of the customers. Similarities: BasisSmall-business entrepreneurs Social entrepreneursImitator entrepreneurs Meeting the needsThis operates and deals in thegoodsandservices thatisneededbythe customers in theirdaily lifestyle. They worked to provide the solution and fulfil the basicneedsofthe society. Inordertomeetthe requirementsandneed of the consumers. They comeupwiththe improvedideaanda new business Upliftmentof society Bymakingavailableof the goods and service at the right place and at a right time in the hand of thecustomers.That develop the living ability of the local customers Theyworkedfor livelihood of the society. By providing them goods and services in orderto givethemcomfortable life Theypromotesthe innovation that provides the new way of living andincreasethe standardof living(Ewere,Aduand Ibrahim, 2015). 5
TASK 2 P3) Interpret and assess relevant data and statics to illustrate how micro and small business impact on the economy The small and micro business has worked to develop the profit and to sustain in the market place. And also have the positive impact on the economy as well as on the standard of living of the society. Furthermore is discussed below: Small business: This is the business operates with the maximum 50 employees. This worked with the limited resources and capital and having limited area of fewer location. And total revenue generated by the all small business is within the 5 million. Micro business:It is the business that operates and covers local market area and fulfils the demand and needs of the local consumer. And get work done by the maximum 15 employees. As like cafe, restaurants and ice-parlour etc. UK has the various micro business that work with their full potential and contributes in the growth of the economy(Fitzgerald and Muske, 2016). As per the above it has been shown that small business provides the highest number of employment opportunity and has the highest number of business in the UK. It means small scale businessplaymajorinthedevelopmentoftheeconomyasgeneratesthehighestjob opportunities which is the important aspects in the development of the country and growth of the economy. Meanwhile large scale business is higher in the turn over as compared to both small and medium business. In addition to this medium scale is lower in the all the aspects. 6
P4) Explain the importance of small business and business start-ups to the growth of social economy Social economy is a term that organise association foundations and enterprise(Galloway, Kuhn and Collins-Williams, 2019).The social economy is get develop by the various activities of the small business and start-ups as these are the essential part of the country which provides the highest contribution in the stability of the GDP and growth of the social economy. Some of the importance of the small business and start-ups are discussed below: Employment opportunity:Start-ups and small business has the highest contribution in the creation of the employment opportunity and the growth of the economy. Human resources id needed by the company to accomplish their operations and task in order to achieve their objectives and goals. As much as people get the job that results in the decrease in the illiteracy rate and increase the standard of living of the society that has an positive impact on the development of the society. Proactive approach:They bring proactive approach in the society as innovation and creativity brings a value and new mind set in the society. They started adopting proactive approach that means now business are creating and controlling the situations in a effective manner rather than just responding to it. As now competition is increasing in the market place where this approach is important to sustain in the market for the longer period of time. Integral part of the local economy:Small business and start-ups deals in the local economy and at limited area of fewer locations that provides financial interdependence that foster the integral part of economy. When a local consumer spend money on the commodity that goes to local workers and that increase the standard of living and literacy rate. This is the main reason of the growth of the social economy(Goffee and Scase, 2015). Innovation:This is main driving force behind the development of the economy and increment in the productiveness. As with the change in the time the demand and requirements of the customers also improve in terms of quality and uniqueness. For this companies also have to improvised and do changes in their product and services. Along with this, competition between companies increases in order to attain the profit and to retain the customers for the longer period of time. For this innovation is induce that provides flexible access. 7
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TASK3 P5) Determine the characteristics, skills and traits of successful entrepreneurs that differentiate them from other business mangers Entrepreneur is an individual who develop new business with the innovation, creativity and risk involve in it(Srinivasu and Ratra, 2015). This are personality who run their business in order to satisfy the customer needs and wants in a effective manner while making the profit maximization and expansion of their business. There two successful entrepreneurs Peter Jones and Simon Cowell which stands as a idols for the upcoming entrepreneurs. Skills of entrepreneurs Creativity:Entrepreneurs believe that doing same thing will not provide the new and better results. There should be an innovation and creativity in the business ideas in order to provide the better experience and satisfaction to the customers. That makes the product and services different from the others and results in to the more profitability in the business(Hasan, Almubarak and Ahmed, 2016). Ability to listen:To manage the great team and to provide the great customer services. There should be a effective communication in the management. Communication is the two way process therefore, for the effective process there should be a ability listen others thoughts, views andopinions. Entrepreneurshavethisskillswhichmakesthemuniquefromothersand successful entrepreneur. Characteristics: Vision:Entrepreneurs are clear with their vision as what they want to achieve and how they will accomplish their objectives and goals. Vision acts like the direction of opportunities that has to be taken and they have the ability totranslate their vision in such way that man be understand by the staff and mangers so that can be achieved in a effective way. Confidence:Entrepreneursbecomesuccessfulbecauseoftheirselfbelieveand confidence. They are confident in themselves as well as in the product and service they sell. Their confidence and believe in themselves support them in to longer sustainability and in the success of their business. Traits: 8
Inventive:Creative is the process of finding solution of the problems and getting ready to implement it. There are various combinations but entrepreneur comes up with the creative and innovation solutions that result in the invention of new product and service. Risk taker:Entrepreneurs are the one who comes up with the new idea that involves risk and uncertainties that makes them different from others. Competition in the market increases in certain period of time but entrepreneurs knows how to deal with it along with the better result and gives light on the success of the organisation(Ingle, 2013). Difference between entrepreneurs and managers BasisEntrepreneursManagers StatusEntrepreneursaretheownersofthe business entity. They get focus on the start-upwiththenewandinnovative ideas. And have the status of owners of the business. Mangersaretheemployeeofthe organisation.Thisisaprofessional position in the firm. And they worked for the ongoing operations. RewardFortheentrepreneurs,rewardarethe profitthatisearnbythewhole organisation Reward for the mangers is their salary thatisgivenbytheownerofthe business. P6) Assess how aspects of the entrepreneurial personality reflect entrepreneurial mindset and motivation Motivation:It isderivesfrom theLatinword motivewhichmeansdesiredto do something.It is refers to the process that provides the reason for actions, willingness and achievement of goals. This is associated with the needs that require satisfaction which provide willingness to do work. Motivation encourages the person to give the better performance and helps to achieve the goals and objectives. It is a inner feeling to keep energetic, persons looks to fulfil the unsatisfying needs with the help of motivation(Landström, 2010).This factor is including the positive vibe to do work with the full potential in a effective manner that result in the productive outcomes. Mindset:It is the set of assumption that a person has and focus for the particular work for their positive results and achievements which they have want. It is the form of belief and 9
attitudes which lead to a particular action and those actions have experiences and this provides the new mindset to process the information. Ocean model This model reflects the five types of personality traits which also known as the five factor model that provides support in to indentify the responsibility which is given to the individual person. Types of this model are explained below as: Openness:This shows the innovation level of person. people who are high in this trait have the high rage of interest and always ready to learn new things and enjoy new experience. They are open to the dynamic environment and ready to adopt and face the challenges in a effective manner in order to learn and experience new things(Powell and Eddleston, 2013). Conscientiousness:This is refers to the dimension includes the high levels of the control and goal directed behaviour. It leads to the entrepreneur how to manage, organize and control the work load which is given to them. Extraversion:This is refers to the extrovert natures that are having excitability, socialibilty and talkativeness and high amount of emotional expressiveness. People with this have wide social circle, enjoying talking to the new peoples and trying to grab the prudence knowledge, ideas and thoughts about the enterprise. Agreeableness: This personality dimension shows that person id trustworthy or not or it takes time to get involved in with someone Neuroticism:This trait of personality includes the issues of the person related to the emotional stability, sadness, moodiness, anxiety. Person who is high in this trait experience lots of stress and have the negative impact on the enterprise. TASK 4 P7) Examine using relevant examples, how background and experience can hinder and foster entrepreneurship Previous aspects and experiences have the hinder as well as foster effect on the entrepreneurship. This provides support which can enhance the motivation and risk taking abilities of the person that foster the inner entrepreneur(Scarborough, 2016).Previous aspects and experience played an optimistic role that helps in to assist the entrepreneurs in selecting and choosing the tract which is comfortable for them. Peter Jones and Simon cowell are the two examples of the 10
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successful entrepreneurs who know about themselves and believe that they are made only for business. Peter Joneswas of 16 year old when he started his first business of computers of its own brand. After sell it to the IBM but got failed. After he also opened and started various businesses but got failed. But peter never lose hopes and did not get tired, he tried again and again and created new and innovative idea from his past experiences and becomes one of the successful British entrepreneur who is an television personality(Siva, 2012). Simon cowellwas 17 years old when he opened his own entertainment company failed due to lack of resources. But never lose hope and keep trying and learn from his past mistakes and experience and now he is television personality, entrepreneur, entertainment manager and record executive. CONCLUSION From the above analysis it has been concluded that entrepreneurial ventures and small business has the major impact on the growth of the nation and development of the economy. They develop and improve the product and services in to satisfy the needs and wants of the customers that result in the increase in standard of living and infrastructure of the society. And make certain changesandimprovementswiththemoreperfectionandexcellencethatprovidesnew sentimentstothemarket,alongwiththis,entrepreneursalsoprovidestheemployment opportunities to the large number of people and also there are different types entrepreneurs that 11
work for the betterment of the society in their own unique way. In addition to this they have such characteristics and skills which make them different form the other managers. Background of the entrepreneurship has the various aspiration that motivates, hinder and foster the mindset of the entrepreneurs to take risk to do something new. REFERENCES Books and Journals 12
Alstete, J.W., 2014. Strategy choices of potential entrepreneurs.Journal of Education for Business.89(2). pp.77-83. Bridge, S. and O'Neill, K., 2017.Understanding enterprise: Entrepreneurs and small business. Macmillan International Higher Education. Burns,P.andDewhurst,J.eds.,2016.Smallbusinessandentrepreneurship.Macmillan International Higher Education. Collins, J. and Low, A., 2010. Asian female immigrant entrepreneurs in small and medium-sized businesses in Australia.Entrepreneurship and Regional Development.22(1). pp.97-111. Ewere, A.D., Adu, E.O. and Ibrahim, S.I., 2015. Strategies adopted by women entrepreneurs to ensure small business success in the Nkonkobe municipality, Eastern Cape.Journal of Economics.6(1). pp.1-7. Fitzgerald, M.A. and Muske, G., 2016. Family businesses and community development: the role of small business owners and entrepreneurs.Community Development.47(4). pp.412- 430. Galloway, T.L., Kuhn, K.M. and Collins-Williams, M., 2019. Competitors as advisors: Peer assistance among small business entrepreneurs.Long Range Planning, p.101929. Goffee, R. and Scase, R., 2015.Women in charge (Routledge revivals): The experiences of female entrepreneurs. Routledge. Hasan,F.S.,Almubarak,M.M.S.andAhmed,A.,2016.Factorsinfluencingwomen entrepreneurs’ performance in SMEs.World Journal of Entrepreneurship, Management and Sustainable Development. Ingle, B.R., 2013.Design thinking for entrepreneurs and small businesses: Putting the power of design to work. Apress. Landström, H., 2010. The roots of entrepreneurship and small business research. InPioneers in entrepreneurship and small business research(pp. 27-58). Springer, Boston, MA. Powell, G.N. and Eddleston, K.A., 2013. Linking family-to-business enrichment and support to entrepreneurialsuccess:dofemaleandmaleentrepreneursexperiencedifferent outcomes?.Journal of business venturing.28(2). pp.261-280. Scarborough, N.M., 2016.Essentials of entrepreneurship and small business management. Pearson. Siva, S., 2012. A study on problems faced by entrepreneurs of small scale industries.Asian Journal of Research in Social Sciences and Humanities,2(4), pp.181-188. Srinivasu, B. and Ratra, K., 2015. Women Entrepreneurs in Small Business: A Case of Delhi. van Kooy, J., 2016. Refugee women as entrepreneurs in Australia.Forced Migration Review, (53), p.71. 13
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