Entrepreneurship: Ventures, Entrepreneurs, and Economic Impact Report

This report provides a comprehensive overview of entrepreneurship, defining the concept and exploring its scope and typology, including inventor, entrepreneur, promoter, and administrator roles. It differentiates between various entrepreneurial ventures: small business, large business, sca...Read More

ENTREPRENEURSHIP

INTRODUCTION
An individual who has capacity as well as desirableness in order to establish, organise,
manage as well as monitor an enterprise by taking risks for generating income in the market is
known as an entrepreneur. Very common and basic qualities which potential entrepreneurs have
been such as leadership, innovator as well as creator of ideas. The present study shows about
different kinds of entrepreneurship along with making difference among all properly. Further, it
helps to the reader in order to understand that in which ways micro as well as small businesses
create impact on the economy of its country along with importance of such firms. In the second
part, about the characteristic, skills as well as traits of different successful entrepreneurs such as
Bill Gates and Mark Zuckerberg explanation is provided. At the end of report, impact of
experience and background on entrepreneurship is explained.
PART 1
P1 Define entrepreneurship and its scope as well as typology
Entrepreneurship is a capability of starting and carrying out business operations activities with
own risk. Typology of an entrepreneur includes:
 Inventor: Initially, in first phase a person is as inventor who build an idea to start an
enterprise. Inventor is expert in order to generate ideas who have higher creativity level.
 Entrepreneur: When that innovator start business with idea, becomes entrepreneur
which can be called as personal achiever, whose creativity level is high (Welter, 2011).
 Promoter: Entrepreneur after establishing its idea, promotes its enterprise and becomes
empathic super sales person whose innovation level becomes low at this stage.
 Administrator: Lastly, the entrepreneur becomes manager of enterprise which is started
and hire employees for work and creation. At this point innovation level becomes very
low.
Basically, there are four types of entrepreneurial ventures which are as follows:
Small business entrepreneurship: These enterprises are hairdressers, consultants,
grocery stores, store fronts of internet commerce, carpenters, plumbers, travel agents etc. People
who earn and invest own money and hires local crowd as employees. Some of them are hardly
profitable. In United States, there are 5.7 million enterprises. For example, Core Power who
answers to the questions about yoga, Ozone Coffee shares content to educate people about ethics,
etc (Dacin, Dacin and Matear, 2010).
1

Large business entrepreneurship: Those enterprises which offer infinite number of
products and services to buyers are called large businesses. Innovation and offering new products
are main tools of large enterprises. Existing companies do this by either obtaining innovative
entities or by developing a new product with any promotion in market. External changes like,
advancement in technology, legislations, new competitors, and customer taste creates pressure on
large business enterprises. For example, Disney who crate emotion not characters, Amazon who
sells convenience not merchandise.
Scalable start-up entrepreneurship: These types of entrepreneurs either provide capital
or fund to start-up ventures or help small business. It is the kind of business which changes the
entire perception of the world for enterprises. Some examples of these type of enterprises are
Silicon Valley source of news and commentary, shanghai a financial hub etc. (Defourny and
Nyssens, 2010).
Social entrepreneurship: These enterprises serve and offer to societies needs and wants
and creates innovative products and services. This kind of business can be profit, non-profit and
moderate. For example, like, social entrepreneur Blake Mycosike who founded TOMS a
company which donates pair of shoes to needs, Ibrahim Abouleish who owns pharmaceutical
firm to develop new treatments for diseases like arteriosclerosis and osteoporosis and many more
etc.
P2 Similarities and differences between enterprises ventures: private, public and social
Similarities among enterprises are as follows:
Private and Social Enterprises: Both the ventures aim at economic value creation, key
stake holders are same for both the business which are investors, lenders, customers, employees,
competitors, and suppliers. Private and social enterprises target customers and values are
corporate. Entrepreneurs follow same strategies like increasing market share and business
growth, accomplishing specific purpose of the organisation. It becomes difficult for enterprisers
while making decisions to cover both the aspect of enterprises that are, sustainable profit and
social impacts (Oosterbeek, Van Praag and Ijsselstein, 2010).
Public and social Enterprises: Both the enterprises objective is to serve health and
social care sector of the society, provides transport services. The both the entrepreneur role is to
promote recycling process, sports and leisure services. Competency level of both the enterprises
is moderate. Entrepreneurs focus to create stable level of occupation in the economy, creates jobs
2

opportunities and support socially vulnerable groups. Public and social entrepreneurs promote
development of entrepreneur skill and compensate countries of narrow place.
Private and Public Enterprises: Both the ventures aim at serving customers with their
innovations. Developing and managing process of both the entrepreneurs is similar, affected and
regulated by political rules and regulations, have to fight for influence and funding and both are
answerable to higher authorities (Storey, 2016). Both the enterprises and firms are customer
service oriented, open to change, provides opportunities to employee growth, channelise
resources, prevent growth of monopoly, ensures balance regional support, controls prices of
essential goods, executive support, mentoring, and secure public welfare.
Difference between private and public enterprises:
Features Private Public
Objective Profit maximization to enhance and
maximise profit and social welfare
Management Private individuals are owners Government
Ownership Individuals Government bodies
Liability Owners are liable for every
operations going on in enterprise
Government is liable for every activity
done by public entities
Competency High Moderate
Difference between Private and social enterprises:
Features Private Social
Objective Profit maximization Social welfare
Management Private individuals are owners Shareholders keep a check
over management functions
(Huq and et.al., 2017).
Ownership Individuals Shareholders
3

Liability Owners are liable for every
operations going on in
enterprise
Funds and charity
Competency High Moderate/ low
Difference between public and social enterprises:
Features Public Social
Objective Profit maximization and social
welfare
Social welfare
Management Government Shareholders keep a check
over management functions
Ownership Government bodies Shareholders
Liability Government is liable for every
activity
Funds and charity
Competency Moderate Moderate/ low
P3 Description that how micro and small firms affect to the economy
In each and every economy, there are firms and businesses having highly significant role
because they contribute in the GDP rate. Higher the small companies when established in the
country under different kinds of industries then provide more employment which is sign of
increase per capita income. On the micro and small kind of companies, taxes as well as tariffs are
also charges at the lower proportion as compare to macro and large firms. Lower the taxation
amount leads to generate higher profit through which they able to contribute in the GDP rate
with more percentage. As per the facts and figures it has been found that, in the UK economy 5.5
million SMEs are there under the private sectors which provide employment to more than 15.7
million people (UK Small Business Statistics, 2017). These information lead to create higher and
positive impact on per capital income as well as GDP rate of UK economy in the world.
Furthermore, it can be easily said that SME and micro firms contribute in the economy with the
help of offering employment to the local community.
4

Apart from this, such kind of business entities have higher level of impact on the
development of UK economy because when these contribute in GDP then it automatically
develops. On this type of companies there are taxation amounts taken by government at the
lower rate which helps to economy at the time of occurring recession. As the micro and small
businesses established in more number and grow within country then economy will be definitely
grow up to the improved level. In order to generate revenue in the UK economy also micro firms
are highly supportive as well as helpful (Terjesen, Hessels and Li, 2016). More than 46%
revenue or income of overall UK economy comes from the micro and SMEs. Further, these facts
and figures are evidence of having positive impact on the UK economy of such kind of entities.
P4 Significance of small businesses and start-ups of social economy's growth
From the above question, it has been identified that SMEs and start-ups impact on the UK
economy in terms of growing and developing. From this statement, it can be clearly said that
these kinds of entities have significant or important place in the corporations. When start-ups
increase in the economy then they provide more employment opportunities up to the local
community. Increasing occupation or reducing the unemployment rate in the economy is sign of
raising per capita income as well as GDP. Therefore, flow of money enhances in the hand of
government which clearly indication of growing social economy. The government of any
country make changes in patterns and regulations of the businesses which can be easily adopted
by the SMEs. Small firms as well as start-ups have the nature of adjusting in which from
changing in the rules they can adopt and face situations (Siqueira, Webb and Bruton, 2016).
From this, the government not need to change resource allocation systems or any other things
which are related to SMEs due to having adjustment nature.
Along with this, as per capital income grow of individuals their living standard improves
up to the better level. In the UK economy, when European Union exit from Britain then SMEs
and start-ups affect in negative ways. The reason is that they have to give taxation amount, tariffs
etc. to the government because EU provides free trade area to them. Further, their sales affects
up to the higher level which results are declining profitability.
PART 2
P5 Illustrations of different successful entrepreneurs along with specific aspects
Entrepreneurs are not having some characteristics and skills from by born but as they
grow and study in their life then learn such all the things. Very basic and foremost skill or
5

characteristic which requires under the entrepreneur is regarding to the innovations because
without innovative skills potential businessman or enterpriser cannot become successful in the
market (Stuetzer and et.al., 2017). Along with this, skills of problem resolution as well as
decision making both are also having highly significant place in an entrepreneur. At the time of
becoming an entrepreneur and achieve success in the industry he has some set of characteristics,
qualities as well as skills which are stated below:
 Innovator Self-motivated
 Must has the clear mission and vision
 Creative
 Fruitful planner to meet with objectives
 Complex situation handler
 Decision making skills
 Interpersonal skills
 Risk taker rather than avoider (25 Common Characteristics of Successful Entrepreneurs. 2017).
In the world, there are several numbers of entrepreneurs who become highly successful in
their relevant industry. They all are not having skills as well as characteristics by born but rather
than these, they learn many things with the attitude of learning behaviour. Further, they have
specific traits also which supports to become prosperous in the corporate world. Moreover, two
entrepreneurs like Bill Gates and Mark Zuckerberg are such as follows:
Bill Gates: This entrepreneur is one of the highly successful in the software industry who
invented the computer system as well as Microsoft software. He was started his own firm or
business by taking help of the Paul Allen who is his friend and made the computers. At the initial
level, he had made a large size computer and its name of Param 10000 but by using his
innovative skills he come up with small size which was known as Personal computer (PC).
Another trait is regarding the passion where he is passionate entrepreneur and having interest in
the software industry. As the time spent he come up with modern or innovative technologies and
become highly creative as well as flexible entrepreneur across the world (Business and
entrepreneurship skills and experience. 2017). Moreover, Bill Gates is future oriented
entrepreneur which helps to him to become successful in the overall software industry across the
globe.
6

In addition to this, Bill Gates has characteristics like hard working, risk taker, creative,
effectual leader, passionate, innovator etc. which lead to help him in order to become successful.
Mark Zuckerberg: Other successful entrepreneur is connected with the social media
network like Facebook who is Mark Zuckerberg. In the world, he is the youngest entrepreneur
and successful. He was started an online business in which people connect with each other across
the world where Mark Zuckerberg launched social network site like Facebook. He exploited idea
generation and innovator skills from his college life. He has trait is the self-confidence and never
demotivate from others, rather than believes in self ideas (Huang and Knight, 2017). Apart from
this, when any other entrepreneur or community criticise Mark Zuckerberg then he takes
criticisms in positive ways instead of negative which lead to become successful up to the certain
level. Moreover, his capability and quality of risk taker make him highly different from other
entrepreneurs which is also one of the basic thing to meet with goals and success.
Very basic traits and characteristics of Mark Zuckerberg are found which are like
innovator, risk handler, confident, motivated by self, positive attitude on criticism, leadership etc.
P6 Assessing that in which ways entrepreneurial personality affects to his motivation as well as
mind-set
In the entrepreneurial personality has highly important place along with the qualities,
traits, characteristics etc. Moreover, motivation is also the significant aspect for the entrepreneurs
which refers to encourage the employees and subordinates in order to accomplish the work on or
before time. When the entrepreneurs are highly motivated from any aspect then make impact on
the mind-set for meet with the objectives. In each and every potential businessman it is
mandatory to have motivation skills and personalities because these create positive attitude in
front of the other subordinates (Batstone, Perry and Polsaram, 2017). Personality of the
entrepreneur is sometimes depends on the family background as well as lifestyle also up to the
greater level. Moreover, culture is also the component and aspect which lead to support in order
to motivate the people for achieving goals and objectives. When lifestyle of the person is highly
better and he grows under the knowledgeable members then his personalities will be definitely
highly better to become an entrepreneur. In the personality of an entrepreneur positive attitude
must be there which helps to make coordination among the employers and employees within
start-ups. Along with this, when an individual who is going to start new business then his
personality of complete and execute given tasks on time is also made his mind-set positive.
7

Personality having the very basic as well as important part in the potential entrepreneur
which lead to make him successful in the corporate world. Positivity in the person directly
impact on the mind-set of him which helps to make him the successful entrepreneur (Leonidou
and et.al., 2017). The reason is that positivity always leads to achieve the objectives and desired
goals on the specific and given time frame. In the above mentioned both the successful
entrepreneurs like Bill Gates and Mark Zuckerberg better and fruitful qualities as well as
personalities are there which lead to meet with their goals. They both have positive attitude
towards accomplishment of desired goals and motivate employees of their enterprise. Hence, it
can be said that personality of the businessperson creates positive impact on the motivation and
mind-set which is the reason to become successful.
P7 Explanation of influence of background as well as experience on an entrepreneurship
To become an entrepreneur in the specific industry is not an easy and simple task. There
are several numbers of factors and aspects affects up to the greater extent and from them two
basic elements are background and experience. Background affects in both ways like positive
and negative which can be connected from individual's lifestyle, study, family etc. When the
entrepreneur has study background in same subject or field in which he is going to start new
business then it will make positive impact. The reason is that, he knows all the things regarding
to the topic and not need to face any major issues while operating in the industry. At the many
times, an entrepreneur open business in the textile industry but having knowledge of service
sector then several kinds of issues are arisen (Nguyen, Newby and Macaulay, 2015). Therefore,
not able to become successful and smoothly sustain in the market for long term. Apart from this,
in the family if there is anyone or two members are entrepreneur then the individual know about
firm and has characteristic of that up to some extent. Moreover, such kind of background is also
the most supportive in order to become a successful businessperson within the market sector.
Furthermore, experience is also one of the significant and most appreciable factor for
each and every entrepreneur at the time of starting a new enterprise. Generally, it can be said by
people that “Experience makes man perfect” is the true because and supportive for the
entrepreneur in order to achieve goals and touch the success (Spence, 2016). At time of going to
take decision of start-up, experience is undertaken by every entrepreneur. For example: expected
enterpriser has work experience in the industry of manufacturing and if he establishes an oil and
gas refinery then it could be a very typical as well as complex for him. In contrary to this, if he
8

wants to make his entrepreneur life highly successful in the corporations then start-up in
manufacturing sector will be better and create positive impact. In the case of Facebook
entrepreneur, he faced experience problem but due to having interest in the software industry
Zuckerberg became a successful in social networks. As of now, users of Facebook are
approximate one crore which indicating his successful and achievement (McDowell, Harris and
Geho, 2016). Hence, it can be said that background and experience both are those factors which
are necessary part of every entrepreneur and impact of their successful up to better level.
CONCLUSION
From the above report of entrepreneurship, it can be articulated that, potential enterprisers
have effectual skills as well as talents for creativity, innovation and start-up new business. In the
corporate world, there are generally four kinds of entrepreneurs play crucial role which are such
as Small, Large, Scalable start-up as well as Social business. It can be found from the report that,
micro as well as small business entities have high impact on the growth of UK economy and
supports to provide employment up to the local community. From the second part, it can be
concluded that Bill Gates and Mark Zuckerberg both are the successful enterprisers who have
effective skills, traits, qualities and characteristics. Moreover, background and experience of an
entrepreneur impact up to the higher level in order to become successful within relevant industry.
9

REFERENCES
Books and Journals
Batstone, C., Perry, G. and Polsaram, P., 2017. Assessing the Influence of Education Attainment
on the Performance of Small Business Entrepreneurs in Thailand and New Zealand.
Gading Journal for the Social Sciences. 10(01). pp. 27-38.
Dacin, Dacin, M. T. and Matear, M., 2010. Social entrepreneurship: Why we don't need a new
theory and how we move forward from here. The academy of management perspectives.
24(3). pp. 37-57.
Defourny, J. and Nyssens, M., 2010. Conceptions of social enterprise and social entrepreneurship
in Europe and the United States: Convergences and divergences. Journal of social
entrepreneurship. 1(1). pp. 32-53.
Huang, L. and Knight, A.P., 2017. Resources and relationships in entrepreneurship: an exchange
theory of the development and effects of the entrepreneur-investor relationship. Academy
of Management Review. 42(1). pp. 80-102.
Huq, A., and et.al., 2017. All the world’s stage: transforming entrepreneurship education through
design thinking. Education+ Training. 59(2). pp.155-170.
Leonidou, L. C., and et.al., 2017. Internal drivers and performance consequences of small firm
green business strategy: the moderating role of external forces. Journal of Business Ethics.
140(3). pp. 585-606.
McDowell, W. C., Harris, M. L. and Geho, P. R., 2016. Longevity in small business: The effect
of maturity on strategic focus and business performance. Journal of Business Research.
69(5). pp. 1904-1908.
Nguyen, T. H., Newby, M. and Macaulay, M. J., 2015. Information technology adoption in small
business: Confirmation of a proposed framework. Journal of Small Business Management.
53(1). pp. 207-227.
Oosterbeek, H., Van Praag, M. and Ijsselstein, A., 2010. The impact of entrepreneurship
education on entrepreneurship skills and motivation. European economic review. 54(3). pp.
442-454.
Siqueira, A. C. O., Webb, J. W. and Bruton, G. D., 2016. Informal entrepreneurship and industry
conditions. Entrepreneurship Theory and Practice. 40(1). pp. 177-200.
10

Spence, L. J., 2016. Small business social responsibility: Expanding core CSR theory. Business
& Society. 55(1). pp. 23-55.
Storey, D.J. ed., 2016. Entrepreneurship and new firm. Routledge.
Stuetzer, M., and et.al., 2017. Entrepreneurship culture, knowledge spillovers and the growth of
regions. Regional Studies. pp.-11.
Terjesen, S., Hessels, J. and Li, D., 2016. Comparative international entrepreneurship: A review
and research agenda. Journal of Management. 42(1). pp. 299-344.
Welter, F., 2011. Contextualizing entrepreneurship—conceptual challenges and ways forward.
Entrepreneurship theory and Practice. 35(1). pp. 165-18
Online
25 Common Characteristics of Successful Entrepreneurs. 2017. [Online]. Available through:
<https://www.entrepreneur.com/article/200730>. [Accessed on 28th June 2017].
Business and entrepreneurship skills and experience. 2017. [Online]. Available through: <
https://www.innovationpolicyplatform.org/content/business-and-entrepreneurship-skills-
and-experience>. [Accessed on 28th June 2017].
UK Small Business Statistics, 2017. [Online]. Available through: <https://www.fsb.org.uk/media-
centre/small-business-statistics> [Accessed on 28th June 2017].
11