Entrepreneurship Report: Venture Types, Economic Impact, Traits

This report provides a comprehensive overview of entrepreneurship, focusing on various aspects of entrepreneurial ventures and their impact on the UK economy. The report begins by defining entrepreneurship and highlighting its importance in economic growth. It then delves into different types of entrepreneurial ventures, including small business, lifestyle, large business, and social entrepreneurship, discussing their characteristics and similarities and differences. The report further explores the impact of micro and small businesses on the economy, emphasizing their contribution to job creation, economic development, and cash flow. It analyzes the effects of these businesses at local, regional, and national levels. The report also discusses the characteristics, traits, and skills of successful entrepreneurs, examining how entrepreneurial personality reflects motivation and mindset. Finally, it touches upon how background and past experiences can either hinder or foster entrepreneurship. The report concludes by summarizing the key findings and emphasizing the critical role of entrepreneurs in driving economic prosperity.

ENTREPRENEURSHIP

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types of entrepreneurial ventures and their related typologies..........................1
P2 Different types of entrepreneurial ventures and similarities and differences between each
................................................................................................................................................3
TASK 2............................................................................................................................................4
P3. Impact micro and small business have on the economy..................................................4
P4 Contribution of small and start-up businesses in the economic growth............................6
TASK 3............................................................................................................................................7
P5 Characteristics, traits and skills of successful entrepreneurs............................................7
P6 Entrepreneurial personality reflect entrepreneurial motivation and mind-set...................9
P7 Background and past experiences can hinder or foster entrepreneurship.........................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneurs play an important role in increasing growth of economy of a country.
Through unique ideas and extrovert techniques such persons establish small business and with
contribution of best efforts of employees, they carry their business on global level also.
Therefore, this type of capacity and willingness for organising and developing a new venture is
known as entrepreneurship. In context with economy, this type of entrepreneurship includes
basic component like land, raw materials, natural resources and capital to start a new business.
The main purpose of entrepreneurs behind launching a new business is to earn more and more
profit in a short interval of time. Therefore, for improving economy of country, UK Government
supports new business developers in opening their associations by providing funds for them on
low interest (Algado, 2013). With this assistance, present report has revealed the role of
entrepreneurs as well as made a discussion about different type of ventures, impact of these on
growth of economy and factor which hinder the entrepreneurship.
TASK 1
P1 Different types of entrepreneurial ventures and their related typologies
An entrepreneurial venture is type of small business in which different types of sectors
invest funds in order to earn more profit. These types of ventures are generally developed when
demand of a particular commodity is raised at marketplace (Neck and Greene, 2011). Therefore,
due to increase in desires of customers for availing such type of products generates thoughts in
minds of entrepreneurs. These persons have capacity and willingness to turn thoughts into
business idea through which they launch a small enterprise and complete demands of customers
on time. In UK marketplace, there are different types of entrepreneurial ventures present as given
below:-
Small business entrepreneurship- This type of entrepreneurship launch at small scale in
initial process. The main motive of entrepreneurs behind opening their outlets is to generate
more and more profit by sales commodities as per public demand. Along with this, due to open
business at small basic with low capital, generally this type of companies has less number of
employees. It includes firms like small cafes and restaurants, groceries, departmental stores,
consultancies etc.
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Lifestyle entrepreneurship- The main purpose of entrepreneurs behind such types of
business is used to improve personal life instead of earning profit. In this entrepreneurship,
business owners generally focus on rewarding a person who has done something adventures in
their life. Along with this, whatever money they have earned is used in enjoying life much better.
Large business entrepreneurship- These businesses are operated on the large scale
therefore, for establishing such type of business, entrepreneurs need high capital and finance as
well as resource (Ahmad and et.al., 2016). In addition to this, in these large business
organisations, there are many people associated with business along with large number of
employees. Hence, by efforts of manpower and high amount of finance, entrepreneurs get
success in taking risks and maximising business in a proper way. The main purpose behind
establishing such business is to run business for longer period of time.
Social entrepreneurship- These enterprises are launched in order to improve condition of
society and people who live there. Therefore, social entrepreneurship provides services and
products to customers for completing their basic needs. Along with this, whatever profit
entrepreneurs earn, they used to denote some part of it in charities for improvement of life of
helpless people.
Therefore, every business organisation has its own objectives depends upon size of
company. But in context with characteristics of entrepreneurs, they have possessed different
skills and capabilities which can be described as:-
Serial entrepreneur- This type of entrepreneurs used to launch business at various
locations or different business at single time with an opinion to operate all simultaneously (Neck
and Greene, 2011). In addition to this, serial entrepreneurs run their business till desired
outcomes has occurred after then they sale the same to others.
Female entrepreneur- Enterprises which are organised, managed and run by female
owners are come in this category. In UK, from statistical point of view, share earned by women
from total capital of economy is near about 51%.
Male entrepreneur- These business organisations are established and operated by male
with their extrovert ideas and opinion. As compare with women’s share in total economy, profit
share of male is less than 2% i.e. approx 49%.
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P2 Different types of entrepreneurial ventures and similarities and differences between each
Since all type of entrepreneurial ventures has their own perceptions and way to operate
business, therefore, there are various similarities and differences occur in them as shown below:
Similarities Life style ventures Survival ventures
 These ventures are
used to operate
business for own needs
rather than demand of
customers.
 These ventures are
generally started from
the small business.
 Same as these ventures
also run the businesses
for their own profits.
 Same as these
businesses also starts
from small level.
Differences Life style ventures Survival ventures
 They operate the
business with own
funds.
 They do not have any
particular strategy to
run the business.
 While these ventures
are run with the
investment of many
investors.
 On the other hand,
these ventures always
have strategies.
Similarities Female entrepreneurs Male entrepreneurs.
 Female entrepreneurs
are known for their
dedication towards the
work.
 Additionally, the
female workers are
considered very
creative and innovative
 Same as the male
entrepreneurs are also
keep their focus on
given task.
 The male entrepreneurs
also have the ability
and skills to take
innovative and new
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in their businesses. decisions.
Differences Female entrepreneurs Male entrepreneurs
The female entrepreneurs do
not take risky decisions.
They play an important role in
making good relationship with
the customers.
While male entrepreneurs are
known for taking risky
decisions.
These entrepreneurs
sometimes fail in making
better relationship with the
customers.
TASK 2
P3. Impact micro and small business have on the economy
There are large numbers of small business organisations are working in UK which
provides their contribution in the development of economy and country (Karlan and Valdivia,
2011). These organisations are start by young entrepreneurs to be self dependent and earn their
livelihood by themselves. In this process they are generating employment opportunities for the
individuals of UK and provide opportunity is to earn more amount of money to improve their
living standard. It is observed that more than the half of the individuals of the society is
employed under small organisation which contributes in different ways in the process of
development of economy. The different kind of business which are operated by these kind of
organisation includes restaurants, grocery shops etc. The contribution of the micro and small
business activities in the development of economy of country is understood from the following
points which are defined below:
Reduction of unemployment: One of the basic benefits which is gathered from the
business operations of small and micro business is to create huge amount of new employment
opportunities in different sectors according to the education, qualification and interest (Iwu and
Nzeako, 2012). It is observed from the past analysis that there is huge decrease in the
unemployment rate in UK and the living standard of individuals of society is enhanced which
contributes in the development of economy.
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Development of other business sectors: As the employment opportunities provides the
change to the individuals is to earn income and spend on making their life more better which is
positive for other business sectors in UK is to growth with continuous rate and contributes in the
development of economy directly and indirectly.
High flow of cash in an economy: There are many small organisations are doing and
good and with innovate ideas which attracts the large number of investor from the different
countries. This will build the chance to bring high flow of cash in the economy of UK from the
investors or in the form of FDI (Devi and Goswami, 2014). There is huge importance of this
flow of cash in an economy to make it stronger in worldwide.
Herein, below impact of small and micro businesses on the economy is mentioned below:
As per the above chart it can be analysed that impact of small and micro businesses on
the economy is continuously. In each sector their contribution is higher. So it has been
interpreted that micro and small businesses are very important in the context of any kind of
organisation.
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Apart from it, the effect of these organisations at the local, regional and national level is
mentioned as follows:
 Local level- The small and medium organisations effect to the local businesses by
providing employment to the people. As well as these ventures provide all necessary
goods and services to the public which improves the living standard of the local people.
 Regional level- The effect of small and medium businesses is that they had the benefit of
making and selling of the products on their own prices. Eventually, first they analyse the
need and demand of customers then make the products accordingly.
 National impact- At the national level, the SME's contributes in improving the economy
and GDP (gross domestic product). This is why because create the opportunities for job
by opening more business which overall leads to the country's growth.
Types of organisation
Micro: It is very small organisation where the employees are less than 10 in number. In
terms of turnover the amount is very few in comparison to other form of organisations. The
businesses which are mainly conducted by them includes carpenters, small sellers barbers etc.
Small organisation: The numbers of employees working in such kind of organisation are
less than 25. In comparison to large organisations the turnover of such organisation is less in
amount but in relation to micro the amount of turnover is quite high. The different kind of
businesses which are consist under this includes photographers, guest house, grocery shops,
restaurants etc. The contribution of such kind of organisation is high in the development of
economy.
Characteristics of private, sole proprietorship and partnership
Private organisation: This will includes the entire organisations which are owned by the
private individuals or group of people. The main aim of such type of organisations is to earn
large numbers of profits for the benefit of stakeholders. There is no control of government
authorities over the transactions of such organisations (Dagnino, and Faraci, 2011). There are
many restrictions are imposed on the private organisations while conducting their operations.
The different characteristics are defined below:
 Separate legal entity which have distinct identity from their owners
 Limited liability of members
 Earning of large number of profits
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Sole proprietorship: It is the type of organisation which is owned by single person.
There are many benefits are arrived while conducting such kind of business in terms of
legislations and regulations (Astuti, 2017). The characteristics are defined below:
 Ease to start business
 Unlimited liability of owner
 Having total control over business
Partnership organisation: It includes the organisations which are formed on the basis of the
agreement between the two parties is to conduct the business operations for accomplishment of
the common objectives. The characteristics are defined below:
 Profit and loss are equally divided
 Formed on the basis of agreement
 Work for the accomplishment of common objective
P4 Contribution of small and start-up businesses in the economic growth
BREXIT has the significant impact upon the growth of business in UK. It is the situation
which is aroused after the exit of UK from European Union. After such exit many restricts are
imposed upon UK regarding the trading good and services and also on import and export which
has huge negative impact upon the businesses which are operating their activities in UK (Algado,
2013). In this regard, many step are taken by the government to overcome from these situation
which includes the promotion of new and small business to build their economy more strong.
There are benefits are provide to start-ups to motivate young entrepreneurs is to create their own
organisation and contributes their efforts in the development of overall country. The contribution
of small and start-ups in development and growth is understood from the points which are
mentioned below:
Employment opportunities: The development of new organisation creates the large
number of new employment opportunities. This will provides the opportunity to individuals of
society is to make their life better and enhance their living standard. This will contributes in
development of the both economy and society.
Level of spending: From enlargement of employment opportunities the level of income
is automatically improves which contributes in the improvement of level of spending (Neck and
Greene, 2011). This will have direct impact upon the buying power which allows them is to
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spend ore to make their life more luxurious and provides their support in the growth of the other
business sectors. This will have overall impact upon the economy of country as the all business
sectors are grow simultaneously.
Financial support: As these different business activities helps in attraction of large
number of investors which bring flow of cash in an economy which is further used by the
organisation in the development of infrastructure and basic facilities. The cash also comes in the
form of tax which is paid by the organisations on their income which is also used in the
development activities.
Increase awareness- Whenever organisations are facing the problem because of economic
changes then this is necessary for small and start up entities to increase the awareness in the
general public so that they can sustain in the market.
Motivating for new and innovative products- The start up businesses are opened with the
new and innovative ideas. In UK, public enhance to buy new and innovative products which
results in increased revenue of the businesses.
So all above mentioned points states that small and start up businesses are very crucial
for growth and development of social economy.
TASK 3
P5 Characteristics, traits and skills of successful entrepreneurs
Entrepreneurs have capability and skills as well as willingness to set up and organise a
business in a proper way (Oosterbeek, Van Praag and Ijsselstein, 2010). They have sharp ideas
and thoughts to open small business in a marketplace where already many enterprises emerged
with same products or services. As observed there are various entrepreneurs have present in UK
who has in starting launch business at small level. But as time goes on their companies are going
expanding more and more on various locations and gain success in establishing business at large
level. These persons are Bill Gates and Marque Zuckerberg who operated business in own way
of perceptions. In this manner, Bill Gates is famous person in Microsoft world in which he
attains the position of CEO in organisation (Patel and Supe, 2011). While, Marque Zuckerberg
also holds the same position as a CEO in Facebook. In addition to this he is also known as the
co-founder of this social sites application. Both these entrepreneurs are creative and high
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innovative to create modifications in business and products. There are some characteristics of
both of them given below:
Skills:
Communication skills- While operating the business, a person needs to have strong
communication skills which helps in influencing the other people associated with firm towards
achievement of business objectives. Like the Mark Zuckerberg and Bill Gates both have good
communication skills so that they can communicate effectively.
Decision making skills- This is also an important skill for the entrepreneurs. It is related
with the taking crucial decision on the basis of creativity and self awareness. In the absence of
this an entrepreneur can not be success.
Trait:
Risk taking- This is a related with the taking risk such as making huge investment, taking
crucial decision etc. Like the main ability of both the entrepreneurs is that they take various risks
in order to run business operation and develop products or services for customers.
Vision- The vision is future goal which companies want to achieve. Such as in the
entrepreneur, they should have a clear vision about their venture. Like both above mentioned
entrepreneurs have a clear vision.
Characteristics:
Passion and motivation- Without passion and dedication, a person cannot do a work in a
proper manner. in context with industries, Mark Zuckerberg and Bill Gates are passionate for
creating innovation in technologies and carry out business activities in a systematic way (Peiqun,
2012). Success of these persons inspires and motivates many entrepreneurs to organise a new
business.
Perseverance- Entrepreneurs have gained various skills and capabilities to resolve all
type of problems and issues in company in a quick period of time. They contribute their best
efforts in completing the demand of customers on time which helps in achieving the set target
and objects of a business in desired way.
So these skills, traits and characteristics make different to the entrepreneurs from
business managers. Herein, difference between entrepreneurs and business manager is mentioned
below:
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