Entrepreneurship Report: Ventures, Economy Impact Analysis

This report delves into the multifaceted world of entrepreneurship, examining various business ventures and their impact on the economy. It begins by defining entrepreneurship and highlighting the roles of entrepreneurs in economic growth. The report then explores different types of entrepreneurial ventures, including small businesses, scalable start-ups, large company ventures, and social enterprises, discussing their characteristics and the relationships between them. It differentiates between public, private, and social enterprises, analyzing their similarities and dissimilarities. The report assesses the impact of micro and small businesses on the economy, emphasizing their importance for job creation, capital investment, and balanced regional development. The report also defines a successful entrepreneur and explores the characteristics, traits, and skills associated with entrepreneurial success, and the role of small businesses and start-ups in economic growth. Finally, the report examines the critical aspects of entrepreneurial ventures and their impact on different levels of the economy.

ENTREPRENEURSHIP

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Entrepreneurial Ventures and their relation with different types......................................1
P2 Similarities and dissimilarities between each type............................................................2
M1 Diverse range of Entrepreneurial Ventures in public and private sectors.......................3
P3 Interpretation and Assessment of data and impact of micro and small businesses on the
economy.................................................................................................................................4
P4 Importance of small business and start-ups on the economy growth................................5
M2 Differences businesses make to the economy..................................................................6
D1 Critical examine of Entrepreneurial ventures...................................................................6
D2 Impact of small business on different levels of the economy...........................................7
TASK 2............................................................................................................................................7
P5 Definition of a Successful Entrepreneur...........................................................................7
P6 Reflection of Entrepreneurial Personality on Entrepreneurial Motivation And Mindset. 8
M3 Different Entrepreneurial Characteristics........................................................................8
P7 Effects of background and past experiences on entrepreneurship...................................8
M4 Analysing the link between entrepreneurial characteristics and influence of it..............9
D3 Characteristic Traits And Skills Of Successful Entrepreneurs........................................9
D4 Positive and Negative experiences of successful entrepreneurs.......................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The ability of a person to start, organise and then to handle the business keeping in mind
the risks in order to make a profit is called Entrepreneurship and the persons involved in it are
Entrepreneurs. In short, it is establishing a new business (Welter,2011). It is playing an important
role in the growth of the economy. Some well known examples of entrepreneurs are Microsoft
founder - Bill Gates, Apple founder – Steve Jobs and many more. They are like gamblers, they
take risks in search of some profits. A Small business can be established and developed
independently, which is limited in size and the owners manages all the aspects of the company,
whether small or big. The report is about exploring various business ventures and the impact of
small businesses on the economy.
TASK 1
P1 Entrepreneurial Ventures and their relation with different types
These ventures have emphasis on providing consultative services to early and mid stage
companies. There are some properties which strongly distinguish these ventures and these are
discussed as below :
1. New goods are introduced
2. New methods for production are introduced
3. Establishing new markets
4. Establishing new supply sources
5. Industrial reorganisation
Small business venture : It is a venture that is developed and maintained independently, shows
no domination in its own field and does not involves in any new practices and schemes (Adams,
Khoja and Kauffman,2012).
Entrepreneurial venture : These are the ventures in which strategic practices defines the main
goals and profitability of the business.
Defining the relation of these ventures with different entrepreneurship types. :
1. Small Business Entrepreneurship – More than half of the entrepreneurs and start-ups are
small businesses. Small business can be grocery stores, hairdressers, travel agents,
electricians, cobblers, carpenters etc. which fulfil the basic necessities of a common man.
The people they hire in these businesses can be friends, family members or they can hire
any local members as well (Oosterbeek,Van Praag and Ijsselstein, 2010). Their forte is
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not to make huge profits but to feed their family well. For establishment or development
purposes, they lend money from friends or family or by some means of small business
loans.
2. Scalable Start-up Entrepreneurship – The entrepreneurs engaged in this, starts a business
by knowing the fact that their vision may change the world. They gain funds from the
other investors which are called Venture Capitalists. They focus on hiring the best. There
are various scalable start-ups going on in innovation clusters like Shanghai, Silicon valley
etc.
3. Large Company Entrepreneurship – These large companies have a large life cycle. Many
of these go through innovation that is sustaining. When there comes some change in taste
of customers, technologies or with new competitors, it can create load for more disruptive
innovations (Adams, Khoja and Kauffman, 2012). Then they need huge companies to
develop the new products so that they can sell them to the new customers. Disruptive
innovation is very hard to execute because of these large companies.
4. Social Entrepreneurship – The entrepreneurs involved in this are the ones whose
emphasis is on developing range of products with services that will help in controlling the
social needs and problems of the people. They work for the world to be a much better
place, not for earning profits on large scales.
P2 Similarities and dissimilarities between each type
Below describing the similarities and dissimilarities between public, private and social
enterprise by considering the roles and characteristics of the ventures.
 Public Sector Enterprise : The organisations or enterprise which government runs for
people is called Public Sector Enterprise (Yallapragada and Bhuiyan, 2011). It can be
managed by any governmental body or any local authority. Its forte is to provide people
the necessary services.
 Private Sector Enterprise : It is the enterprise which is developed and run by some private
individual or a non governmental body. It can be small firms, large businesses etc. Here
the goal of the individuals is to make profit. They are not interested in helping the people
for free.
Sector Characteristics
1. Public Sector  Governmental ownership
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 Under government control
 Government itself is financing
 Helping people objectives
 Public accountability
2. Private Sector  Owned by private individuals
 Managed by them only
 Financed by friends or family or any other private
means
 Goal is to earn profit.
 Private accountability.
Sector Public Private
Similarities 1. There are various
opportunities for employee
growth.
2. They are open to change and
develop new essential features
if required.
1. Various opportunities are
here also.
2. In this also, new features are
welcomed.
Dissimilarities 1. It is a wide field of
administration.
2. Some restrictions are there
by the government.
3. Carrying legal
accountability
1. It is a limited field of
administration.
2. No restrictions are there in
this sector.
3. Limited legal accountability
is there.
M1 Diverse range of Entrepreneurial Ventures in public and private sectors
Entrepreneurial ventures can be small business, scalable, large and social. Goods,
methods, markets, new supplies and industrial reorganisation are some factors these ventures
possess. In Public sector, organisations are governmental and are also managed by governmental
bodies. Their objective is to help people and its management is being financed by the
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government itself whereas in private sectors, organisation are private and are being managed by
private bodies only. Rather than helping people, their goal is to earn profit for themselves.
Financing if needed is done by friends or family or by any private means.
P3 Interpretation and Assessment of data and impact of micro and small businesses on the
economy.
A micro business is also a type of small business that consists nine or fewer people as the
employees. Most microenterprise are small family businesses having a few people as their
employees. Small businesses can be cobblers, carpenters etc. where goal of the employees is to
feed properly their family, they do not want high profits (Yallapragada and Bhuiyan, 2011).
Small businesses have more importance than large businesses on the economy as they fulfils the
basic needs of an individual. They brings growth in the community. These are the small
businesses that completes the needs of a common man. Micro and small businesses include
hairdressers, sweepers, grocery stores etc which are the routine requirements of a common
person. Many large companies also are dependent on the small businesses. As in the figure
below, the impact of micro and small business for the year 2013 is clearly shown.
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P4 Importance of small business and start-ups on the economy growth.
Small and micro sized enterprises (SME's) are a focal point in shaping the enterprise
policy. Many commissions considers SMEs and entrepreneurship as a key to ensure economic
growth,job creation,innovation and social integration. Small businesses can be any business that
refers to the daily requirement of a common man such as salons, grocery stores etc. in which the
goal of employees is to satisfy all their family needs. They do not work for earning higher
profits. A start-up can be defined as an organisational body which focuses on creating something
new by not predicting the extreme conditions. Small businesses and start-ups have a huge impact
in the growth of the economy. Describing its importance as following :
1. It helps in increasing the employment for more people as it gives many people a chance
to work. The employment factor is increased for sure because of these start-ups and
businesses.
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Illustration 1: Statistics for micro and small businesses
(Source : Oosterbeek,Van Praag and Ijsselstein, 2010)

2. It helps in developing capital investment, that is the collection made for enlarging the
business objectives.
3. It does not favours unequal allotment of income as it gives the same income to all its
employees.
4. These businesses helps in export promotion by increasing the trade performance of the
nation (Yallapragada and Bhuiyan, 2011).
5. It also helps in a balanced regional development by giving employment to those areas
where there is less or no employment.
6. There are start-up patent strategies also. Start-ups are known for their creative liveliness
for trying something different and new. Patents are important assets for the whole
business.
7. It is very essential to incorporate the business and at the same time taking advice of an
attorney is equally important.
M2 Differences businesses make to the economy
Small businesses help the economy by satisfying their common needs. These businesses
include grocery stores, salon's etc. which a person includes in their daily routines. So, they help
them satisfying their basic needs. Medium enterprises also play an important role in the
economy. They also provide employment to many people helping them feeding their families.
Large companies are considered as more productive as they pay higher to their employees as
compared to small and medium enterprises (Oosterbeek,Van Praag and Ijsselstein, 2010). Every
business has its own importance to the economy and people are satisfied with all the three types
as all the three completes different demands of an individual.
D1 Critical examine of Entrepreneurial ventures
These ventures can be large, small, scalable and social. Large company ventures are of
large life cycle and produce more than small and medium sized enterprise. They even pay much
more than small and medium sized companies. Small companies are the ones which satisfies all
the basic needs of a person i.e. small business includes salon's, cobbler's, tailors etc. which are
the common needs of a man which they follow in their routine. Social ventures are the ones
which work in order to make the world a better place. Their forte is to fulfil the needs of the
persons.
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D2 Impact of small business on different levels of the economy.
Small business as said previously also makes a huge impact on the living of an
individual. They cover almost every small need of a person from purchasing groceries to giving
clothes for tailoring. These impact the people more than medium and large size companies as
they satisfy the basic needs (Malhotra and Temponi, 2010) . Large companies produce large,
which cannot be satisfied by small businesses. Small businesses gives employment to many
people thus by helping them feeding their family. They also improve the capitalisation and
exports promotion by increasing the trade performance of a nation. In local regions, they provide
the mobilisation of local resources by giving them the employment regarding it. In regional
context, they balance the development in low or no economic areas.
TASK 2
P5 Definition of a Successful Entrepreneur
An entrepreneur who has achieved a lot without concerning about the risks and faults is a
successful entrepreneur. Some well known examples of it are Walt Disney, Steve Jobs, Oprah
Winfrey and many more.
Traits and skills of these famous entrepreneurs are as following :
Oprah has an amazing story as the richest and the most influential woman in the world. She
started as a housemaid, whose upbringing has been done in poverty . Everyone used to tease her
at the school for her clothes and she also had been a victim of sexual abuse but her life changed
when managers were so much impressed of her gig. There her life changed when she signed the
next contract. It was her passion and willingness only which lead her to do something big in her
life. Walt Disney, who used to work in an art studio as he created advertisements for magazines.
Oswald, the rabbit was Disney's first creation when he made while working under a contract with
Universal Pictures (Defourny and Nyssens, 2010). At the time of leaving, he had to made
Mickey Mouse as a replacement. The passion for animation made him a successful entrepreneur.
Another example is Steve Jobs, who was a college drop out because of poor financial conditions,
eventually created an Apple computer, changed the whole consumer electronics industry. This
passion made Steve wildly rich and successful. Creativity, willingness to improve, capacity of
listening others and Passion, these are main skills that any entrepreneur possess for being
successful. They were not born as entrepreneurs. It was someone poverty, someone's passion and
someone's situations which lead them to become a successful entrepreneur.
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P6 Reflection of Entrepreneurial Personality on Entrepreneurial Motivation And Mindset
Entrepreneurs consists of some unique personality traits as their ability, mindset, attitude
towards shaping their experiences and objectives into a feasible result, keeping all the risks and
failures in mind. An entrepreneur is a person who has the capability of dreaming and
experimenting the goals no matter what the outcome is. Some common traits, these people carry
are passion, flexibility and vision (Dacin,Dacin and Matear, 2010). A great vision is required to
see how the goals can be achieved, what strategies have to be used and how they will have an
impact on it. Realisation of an idea is the great motivation for an entrepreneur. Family
upbringing, culture and lifestyle of a person plays a very important role in setting the mindset
that what is to be done. The culture in which a person is living also matters because the
environment in which a person is living definitely has an impact, it may be good or bad.
M3 Different Entrepreneurial Characteristics
There are some unique characteristics they carry which includes motivation, creativity,
drive, vision etc. To complete the targets in an efficient way, motivation is important to keep up
the confidence level high (Dennis, 2011). This will help in achieving targets in a particular time.
One should also have a drive that they must be crazy to achieve the target. They should not
consider any external factors while concentrating on the task itself. Then anything a person needs
is vision, vision helps as in seeing the way or direction to go for completing and achieving the
goal.
P7 Effects of background and past experiences on entrepreneurship
Entrepreneurship provides various opportunities to those who live by it and trusts it. But
Entrepreneurship had some failures too. Some factors which can lead to failures in this are
Survival Driven i.e. before adding the values, seeking money is a bad idea. It is the main reason
why people fail in this. Low IQ in business seems another bad option because it will obviously
leads to incomplete competencies which is not good for any business. Focus is the jack of all
trade, lack of which results in failure.
Some past experiences of now famous Entrepreneurs :
1. Hiten Shah, now the founder of KISSmetrics, with his friend created a website that never
launched (Bruton, Ahlstrom and Li.,2010). The mistake they did is they ignored what
customer's requirement are. They lack in this which lead to the wastage of 1000000$ . So,
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it is better to first understand the requirements of the generation and then proceeding for
projects. Spending smart is an important factor to be considered while doing a business.
2. Rand Fishkin, now the CEO of Moz, failed because they continuously focused on making
big projects in which they wasted many months (Shobhit, 2016). This idea of him totally
flopped because it took so time that progress check has been continuously delayed and it
lead to the failure. So, proper planning is very necessary to keep the process manageable.
Risks and failures are something which cannot be avoided while doing any business. Everyday,
entrepreneurs take calculated risks. Like there are two sides of a coin, this also has two sides,
rewards and risks. If there are risks in a business, there are rewards also. When many motives are
achieved, they automatically generates many rewards.
M4 Analysing the link between entrepreneurial characteristics and influence of it
Personal background do have an effect on entrepreneurship. The place, culture where a
person lives matters. Creativity, versatility, risk tolerance factor are some very influential
entrepreneurial characteristics which highly affects the person (Brinckmann,Grichnik and
Kapsa,2010). Passion is also a very important factor without which one cannot succeed in his
life. When there are skills, creativity and everything that is required to be successful in business,
passion drives all this in a direction to compete with others and manage all of it. Steve Jobs is an
example, who was a college drop out but because of his passion and creativity, he developed an
Apple computer which made a drastic change in the electronics industry.
D3 Characteristic Traits And Skills Of Successful Entrepreneurs
Some traits and skills of some successful entrepreneurs include that they always craves
for learning, they are not afraid to take risks, their confidence level is high as compared to the
others, they understand the factor that failure is a part of life, no matter what one should not stop
just because of failures, they even teaches us more, they are passionate about their work or any
modifications which will prove beneficial for their business. They are full of determination, they
accepts new challenges and are not afraid to experiment anything new that can be more helpful
for their business.
D4 Positive and Negative experiences of successful entrepreneurs
Where it has some positive experiences, some negative ones are also there. An example
of this can be Hiten Shah, who is now a founder of KISSmetrics once failed in his life when he
with one of his friend developed a website that has been never launched. It failed because it was
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not according to the generation's requirement and a huge amount of money wasted i.e. $1000000
Bucks Were Of No Use When The Website did not launched (Adams,Khoja and
Kauffman,2012). It was not according to the users so, it proved as a failure.
CONCLUSION
From this report, it has been concluded that Entrepreneurship and small businesses have a
huge impact on the growth of the economy. These small businesses provide employment to a
number of people. They even satisfies the common needs of a person as they can be grocery
stores, cobblers, carpenters etc. Some well known entrepreneurs are Steve Jobs, Walt Disney etc.
who learned from their poverty and passion and became entrepreneurs. Entrepreneurship also
had some failures like Hiten Shah and many more who developed websites and products without
considering the basic customer needs and it lead to their failures, but they learn from their
failures and raised themselves again and are now famous entrepreneurs.
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