Unit 09- Entrepreneurship and Small Business Management

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UNIT 9Entrepreneurship andSmall BusinessManagement
Table of ContentsINTRODUCTION................................................................................................................................3TASK 1.................................................................................................................................................4P1.Examine different types of entrepreneurial ventures and explain how they relate to thetypology of entrepreneurship......................................................................................................4P2.Explore the similarities and differences between entrepreneurial ventures...........................6TASK 2.................................................................................................................................................8P3. Interpret and assess relevant data and statistics to illustrate how micro and smallbusinesses impact on the economy.............................................................................................8P4 Explain importance of small business and business start-ups to the growth of socialeconomy....................................................................................................................................10TASK 3...............................................................................................................................................11P5 Determine the characteristics traits and skills of successful entrepreneur that differentiatethem from other business managers..........................................................................................11P6 Aspects of entrepreneurial reflect entrepreneurial motivation and mindset........................14TASK 4...............................................................................................................................................15P7 examine using relevant examples, how background and experience can hinder or fosterentrepreneurship........................................................................................................................15CONCLUSION..................................................................................................................................18REFRENCES.....................................................................................................................................19
INTRODUCTIONEntrepreneurship is the procedure of developing as well as implementing new business ideafor generating business. Entrepreneur is the person who comes with new business idea in marketin order to gain success and he/she is the risk taker. Although every entrepreneur with smallscale association and try to accomplish goals and objectives. There are several successfulmanager as well as leaders around the globe who will analyse need of customers and fulfil that ineffective manner. A successful leader is the one who know how to manage resources in effectivemanner as well as optimum utilise it. In relation to the respective project, it is important toidentify relationship within entrepreneurship and the various typologies related to the same.Along with this, what are the factors which motivate a manager as well as leader foraccomplishing goals and objectives. Moreover, it is significantly important to identify the roleperformed by these small and micro scale organisation for the establishing economy andanalysing there are positive as well as negative outcomes.
TASK 1P1.Examine different types of entrepreneurial ventures and explain how they relate to thetypology of entrepreneurship.Few sentence about history of EThere are more than one descriptions of entrepreneurship. These are my examples.Thecapacityand willingness todevelop, organise andmanageabusiness venturealongwith any of its risks inorderto make aprofit.The most obvious example ofentrepreneurship is the starting of new business.Ineconomics,entrepreneurship combined withland, labour, natural resources andcapitalcanproduceprofit. Entrepreneurial spirit is characterised byinnovationand risk-taking and is an essential part of a nation’sabilityto succeed in an ever changing andincreasinglycompetitive global marketplace.(Oxford Dictionaries)Very well-known businessman, innovator, entrepreneur Sir Richard Branson describesentrepreneurship as part of capital: “Entrepreneurship is about turning what excites you inlife in to capital, so that you can do more of it and move forward with it.” (Branson R.,2015).There are more than 10 different classifications of entrepreneurship. Every type isbased on different classification. I would like to emphasis few of those:Based on the type of Business.Under this classification appliestraders-they pursue final products from manufacturers and sellthem directly. They are intermediaries, traders and retailers between manufactures andcustomers. Under this classification alsomanufacturers– they identify customs needs andexplore the recourses and technologies what will be used to produce products to meet customer’sneeds. Finally,agricultures–they cover wide range of agricultural activities, such as growing,trading of agricultural products, irrigation, mechanization and agricultural technologies.Based on the use of technology.Under this classification applies technical or non-technical entrepreneurs.Technicalentrepreneurs are entrepreneurs who use science and technology in their businesses. They arelikely to use new and innovative production methods and scientific achievements.Non-technical
entrepreneurs. The priorities of them enterprises are not science and technologies. They take careof the use of alternative and simulation marketing and distribution strategies to keep theirbusinesses competitive.Based on ownership.Private entrepreneurs, state entrepreneurs, joint venture entrepreneurs.Privateentrepreneur is onewho as an individual person establishes a business, is the sole owner of the company and assumesall the risks associated with it. Stateentrepreneur. When a commercial or industrial enterprise isrun by public or government, it is called a “state entrepreneur”.Joint ventureentrepreneurs arewhen a private entrepreneur and government co-managing a business.Based on gender.There are two types of classification based on gender. Menentrepreneurs when business is owned,managed and control by men. Andfemaleentrepreneurs are when enterprise is owned andcontrolled at least of 51% of capital by woman.Based on size of enterprise.Small-scale entrepreneur who has invested in to business up to Rs 1.00 crore.Medium- scaleentrepreneur who has invested in to business above Rs 1.00 crorebut below Rs 5.00 crore.Large-scale entrepreneur who has invested in to business more then Rs 5.00 crore.Based on Clarence Danhof classification.Clarence Danhof in the year 1949 made researches between agricultural entrepreneurs at themanner of the very initial stage of economic development. He spotted differences in entrepreneursinitiative and performance. On based of his researches he classified entrepreneurs in four differenttypes.1.Innovating entrepreneursare those who introduce new products, opens new methods inproduction, discovers a new market and reorganize company. Important to note that such a stile ofentrepreneur can only work when some level of development is achieved, changes andimprovement is expected.2.Imitative entrepreneursare characterized by reediness to innovate. They are not creatinginnovations themselves. They are copy and imitating technologies of others. Such types ofentrepreneurs are suitable for less developed regions.
3.Fabian entrepreneursare very sceptical about experimenting with any changes in theirbusiness. They imitate only when it becomes clear that without doing so, possible to lose thecompany.4.Drone entrepreneurs are refusing any changes in the production. Such entrepreneurs mayeven loose them business, but they are not ready to change existing production methods. (Top 10Types of Entrepreneurs – Explained!)P2.Explore the similarities and differences between entrepreneurial ventures.There are four distinct types of entrepreneurial organisations. Steve Blank (2010) talks about:Small businessesScalable start-upsLarge companiesSocial entrepreneursThey are all engage in entrepreneurship.1.Small business.According to the UK’s Companies Act 2006, a small company is defined as one that doesnot have a turnover of more than £6.5 million, a balance sheet total of more than £3.26million and does not have more than 50 employees. A medium-size company is definedas having less than 250 employees and a turnover of under £12.9 millionSmall business owners know what makes their customers happy, they know them audience andthe business targets. The results may not be huge, but it will keep them moving on. They likemaking decisions and running them business day-to-day. Small businesses are good to satisfylocal community needs. Small businesses are big part of countries economy, according statistics95-99%.Example: consultants, corner shops, local bakery, accountants, freelancers, etc.2.Scalable start-ups.Out of 5.5 million businesses in the UK over 99% of them are SME’s. These small orstart-up businesses range from accountancy firms to zoos, but they are united by thedetermination of their owners to grow and prosper. And the question on every start-upowners’ lips is: at what point does a small business evolve into a medium one?
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