Entrepreneurship: Venture Types, Characteristics, and Impact

This report provides a comprehensive overview of entrepreneurship, exploring various types of entrepreneurial ventures such as small, large, scalable, and social businesses. It delves into the similarities and differences between these ventures, analyzing their characteristics and operational scales. The report further examines the impact of micro and small businesses on the economy, particularly in the context of the United Kingdom, highlighting their role in economic growth, employment generation, and innovation. It also identifies key traits and characteristics of successful entrepreneurs, discussing the influence of personal background and experience on entrepreneurial endeavors. The report uses examples and comparisons, such as those between small, medium, and large enterprises, and contrasts entrepreneurial typologies to provide a detailed understanding of the subject.

ENTREPRENEURSHIP

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 & M1 Different types of ventures and their relation with various kinds of entrepreneurship
................................................................................................................................................1
P2. Similarities and difference between entrepreneurial ventures.........................................2
D1 Development and growth of entrepreneurial ventures.....................................................4
TASK 2............................................................................................................................................4
P3. Impact of micro and small businesses on the economy...................................................4
M2 Difference between small, medium and large businesses................................................6
D2 Impact of small enterprise on economy............................................................................6
P4. Importance of start-ups for the growth of social economy..............................................6
TASK 3............................................................................................................................................8
P5. Characteristics of successful entrepreneur.......................................................................8
P6 Entrepreneurial personality related aspect which motivates mindset of an individual...10
M3 Argument related to entrepreneurial characteristics......................................................11
D3 Characteristics traits, skills and motivational drivers of successful entrepreneur..........11
TASK 4..........................................................................................................................................12
P7 Persons background and past experience effect on entrepreneurship.............................12
M4 Link between entrepreneurial characteristics and influence of personal background...13
D4 Comparing and contrasting personal background and experience of Donald Trump....13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Entrepreneurship is an economic activity which is carried out by human beings for
gaining huge amount of profit and that person who develops or runs enterprise, is known as
entrepreneur. In other terms, it can be said that an businessman is that individual who takes
initiative to start a new venture, bears all possible risks and decides how much quantity of goods
or services will be produced so that needs or wants of people can be satisfied (Drucker, 2014).
These small enterprises play an important role in the development of country because with the
help of this, citizens become able to live their lives effectively and efficiently by getting
employment opportunity. This project is based on entrepreneurship which will define different
types of entrepreneurial ventures and their relationship with various typologies as well as explain
their importance in the growth of social economy. It will also state different characteristics or
traits that should be possessed by every person for being a successful entrepreneur.
TASK 1
P1 & M1 Different types of ventures and their relation with various kinds of entrepreneurship
There are various types of entrepreneurial ventures which can be understood by following
given description- Small business- This kind of concern can be set up by an individual via investing low
amount of money. It does also not require large number of employees for carrying out
business operation because it is operated by friends or relatives. These enterprise is
started by people so that they can fulfil basic needs or wants of their family members as
well as of themselves. Plumbers, grocery stores, electricians etc. comes under this
category of business. Large business- This sort of businesses are operated at large level that provides products
or services to their clients as per their requirements so that they will remain in the
company for long period of time (Sciascia and et.al., 2012). These enterprises are most
important for the growth of country because it runs their operation at international level
which increases foreign exchange reserves of nation. Scalable business- Under this, entrepreneurs carry out business operation with an
innovative idea which attracts to the large number of investors towards it. These kind of
organisations are very helpful in changing the world. Its main objective is to capture large
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market share within short period of time by providing innovative features of products or
services to their clients.
 Social entrepreneurship- This kind of businesses are started for resolving the problems
of society so that they can live their lives happily (Estrin, Mickiewicz and Stephan,
2013). It may operate their operation for profit earning or for social service. Their main
aim is to make better world which will be free from all problems.
Various types of entrepreneurial typologies- There are numerous kinds of typologies
which are related to different entrepreneurial ventures that are described below- Accomplished entrepreneur- Under this, businessmen want to complete their project on
time because for them, time is a precious asset which should not be wasted. Research entrepreneur- As the name suggest that this kind of businessmen carry out
research activities before taking an important decision so that effective and successful
decision can be taken and they can reach to their decided destination within stipulated
period of time. Before starting a new venture, they collect various information from
different sources so that they can generate huge amount of profit by taking effective
judgement. Copycat entrepreneur- In this, people take ideas from other successful businessmen
thereafter starts their own venture for getting profit. They have mentality that success can
be got by taking idea from others. Determined entrepreneur- They are just opposite of copycat businessmen because they
have attitude that success can also be achieved with their own innovative ideas rather
than copy to others (Webb and et.al., 2013).
 Skeptical entrepreneur- This kind of entrepreneurs raise questions on the success of
other organisations. At present, these ventures are rarely present in the market.
From the above discussion, it can be said that entrepreneurship's activities got influenced
by typologies of different entrepreneurs.
P2. Similarities and difference between entrepreneurial ventures
There are different types of entrepreneurs who have some same as well different features
from each other which can be understood from below given points-
Types of enterprise Similarities Differences
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Small v/s large
business enterprise
These both organisations have main
motive to generate huge amount of
profit by providing goods or services
as per requirements of customers so
that their needs or wants can be
satisfied (Tolbert, David and Sine,
2011).
They are also different from each
other like- small organisations
operate their business at national
or local level while large
businesses carry out their
activities at international level. On
the other hand, small enterprise
can be started by an individual
without investing huge amount of
cash while lots of resources are
required for commencing large
company. For this, entrepreneur
should have potential or skills for
carrying out operation at large
scale while small firm does not
require that owner should have
high level of education or
knowledge.
Social v/s scalable
enterprise
Both organisations design innovative
products or services for large number
of customers so that they will not
switch to any other brand. Before
designing any planning, they conduct
research so that they can identify
needs or wants of customers as well
as can understand present market
situation.
Social organisations operate their
business so that problems of
society can be resolved with or
without earning profit. On the
other hand, scalable organisations
start their business for generating
huge amount of profit as well for
capturing large market share
within short period of time.
Apart from above organisations, there are also exist other kinds of enterprises that are
given below-
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 Public enterprise- This sort of business is controlled or handled by government for
removing all problems from the society so that economy of nation can be developed. Private enterprise- These kind of organisations are controlled or operated by private
person who carry out commercial activities for gaining huge amount of profit as well as
for capturing large market share by providing goods or services as per requirements of
clients. (Bozeman, Fay and Slade, 2013). Micro enterprise- When in an organisation, there is maximum nine employees and has
started with a small amount of money, will be known as micro business. Generally, it
serves to customers at local level. Medium enterprise- Those firms in which 250 or less than employees are working, will
be known as medium organisations. Its turnover will not be exceeded from 50 million
pound otherwise it will come into the category of large organisations.
 Large enterprise- Following are given some conditions which should be fulfilled for
becoming a large organisation that are given below-
◦ Should have minimum 5000 employees.
◦ Their turnover should be more than 1.5 billion pound, will be known as large
organisation.
D1 Development and growth of entrepreneurial ventures
In terms of entrepreneurship, United Kingdom is the biggest successful country which
has large small enterprises. Here, mostly citizens have attitude to start their own venture rather
than to do job because everyone wants to explore new skills and knowledge and they have more
potential to take risk. From a survey, it came to know that UK is providing more employment
opportunity to the people. These people are taking risk by introducing innovative products or
services to the people like Tom Mercer and MOMA foods are delivering unique goods or
services to the people like breakfast, full night chopping etc.
TASK 2
P3. Impact of micro and small businesses on the economy
In the development of economy, small enterprises play an important role in various
aspect. In United Kingdom, these organisation creates more employment opportunity for citizens
which is the most significant reason for the development of economy (Carraher and Paridon,
2015). It also increases the revenue of government which is used for improving the infrastructure
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of society as well for rising the standards of people so that economy can be developed. For
achieving this, government should provide support to these organisations by formulating new
policies and procedure so that people will encourage to do this business. SME affects the
economy in the following given way- Economic growth- In United Kingdom, more than 10000 small business are carrying
out commercial activities which contributes approx. 45 percent in the development of
economy. As per research, it came to know that these organisations give 10 percent
contribution in GDP which is beneficial for this nation as comparison to others. After
introduction of Brexit, SME organisations are more encouraged by UK government so
that GDP rate can be increased as well long terms objectives can also be attained. Employment generation- These organisations also generate more employment
opportunities for citizens in various fields (Nambisan and Baron, 2013). As per report of
governmental authorities, approx 25 million jobs are providing by these firms which is
the largest number as comparison to other European countries. These organisations are
very helpful in improving the living of standards of the society by providing
employment to citizens. Apart from this, it helps in enhancing the demand of goods or
services and provides various components for supporting to local economy.
 Innovation- It is very important aspect for the development of UK economy because
success of company is totally depend on technology advancement. Generally, new
talents are starting information technology related their own business so that innovative
features of goods or services can be provided to the customers for satisfying their needs
or wants and competitive advantages can be obtained over its rivals. These start-ups
helps in promoting innovation in the community effectively and efficiently. These
innovation based start-ups provide more job to the people which helps in the economy
development of the nation.
From the above discussion, it can be concluded that these enterprises are very helpful for
the development of country because it provides unique solutions to people for resolving their
issues. So it is very necessary that government should take corrective action for encouraging
these kind of business so that economy can move towards the way of growth.
M2 Difference between small, medium and large businesses
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Basis Small enterprise Medium enterprise Large enterprise
Turnover When company's annual
turnover is less than 5.6 million
pound, will come under this
category.
Its revenue is more
than 5.6 million pound
but should not be
grater than 22.8
million pound.
Its annual turnover is
more than 22.8 million
pound.
Employees These firms have less than 50
employees.
Here more than 50
workers but less than
250 employees are
employed.
250 or more than
employees are
working in this
organisation.
D2 Impact of small enterprise on economy
As above discussed that in United Kingdom, there are large range of enterprises which
are providing support to the development of economy. It generates more employment
opportunity to the people by which dependent people become able to survive in the society easily
and effectively. With the help of these organisations, skill and knowledge level of individuals are
increasing continuously that are helping in the development of economy.
Suppose if there are more employment opportunity then people will be able to spend
more that will aid in the development of society.
Import and export services are mostly impacted across the regional boundaries. It is
carried away by exporting goods and services to other countries in order to run business or trade
and obtaining benefits to capital market. With the help of this, different kinds of exporting
channel are introduced by which better quality of import and export services can be provided
easily and effectively.
P4. Importance of start-ups for the growth of social economy
After introduction of Brexit in UK, mostly people had lost their job as well businessmen
had to face great amount of loss in their commercial activities (Zhang, Duysters and Cloodt,
2014). Then in this situation, small enterprises provided job opportunities to those individuals
who had lost their employment. This action was very beneficial for the growth of economy of
nation because it helped the people to live their effectively and smoothly. After knowing all
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facts, it can be said that these kind of organisations are set up by people for serving to the society
and for making strong economy of nation. These start-ups provides various types of benefits that
are described below- Rate of employment- If there will be increment in the number of these kind of industries
then rate of employment will also be enhanced because it will provide jobs to the people
for living their lives smoothly (Bruton and et.al., 2015). After introduction of Brexit,
there are various people who got affected from this situation in which they lost their job.
In this condition if government will provide support to small enterprises then this
situation can be controlled effectively and efficiently because these firms will generate
employment opportunity for the people by which living of standards of society can be
improved that will affect the social economy in positive manner. Level of spending- If people will have job then their spending level will also be increased
because of having income. It will increase the demand of goods or services which will
enhance the number of organisations for meeting with this requirement. In this situation,
there is direct relation with demand and supply because if demand will be enhanced then
supply will also be increased which will generate employment opportunity for the people. Monetary support- After occurrence of Brexit, economy of UK goes down. For
controlling this situation, many banks gave loan to the people for starting small ventures
so that economy can be improved and can move towards the growth.
 Technologies and innovations- In today competitive environment, it is necessary that
organisations should differentiate their products or services for getting competitive
advantages over its rivals (Storey, 2011). For this, some innovative or advanced features
should be included in their merchandise which can be possible after using of new
technology. It should be done so that company can earn extra profits by which economy
and society can be developed. So from above discussion, it can be said that innovation
and technology are the most important part which should be consider by organisations.
After analysing all important aspect, it is concluded that entrepreneurial ventures should
be developed so that they will contribute in the development of society as well as of country.
Because if these organisations will be successful then it will create employment opportunity for
the citizen by which their living of standards can be improved. So government should take
corrective action for encouraging small firms so that economy of the country can be developed.
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TASK 3
P5. Characteristics of successful entrepreneur
In order to get success in the market, it is necessary that management should take
maximum efforts for achieving desired result or outcome (Langkamp, Bolton and Lane, 2012).
For becoming a successful entrepreneur, an individual should have following given traits or
characteristics which are described below-
(Source: Maroof, 2012) Motivation- It is very important aspect which should be possessed by every potential
entrepreneur because if they will be motivated then they will be able to take risk for
introducing any new thing. So person should be self-motivated so that he can contribute
in the growth of economy by taking some risk. If businessmen will have positive attitude
towards their job then they will be able to obtain their expected result within stipulated
period of time.
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Figure 1: Global Entrepreneurship, 2012

 Risk taking- Starting of a new business creates a great opportunity which are supported
with different types of risks also (Obschonka, Silbereisen and Schmitt-Rodermund,
2011). It is the most important trait that should have been in every entrepreneur for
getting success because if they will not be able to face any kind of loss then they have to
shut down their business. So entrepreneur should be a risk taker. Self-believer- In order to get success, it is necessary that person should have believe in
himself so that he can carry out commercial activities effectively and efficiently as well
as can take risk. If he will not be self-believer then he cannot influence to other for
purchasing products or services. Adaptability and flexibility- At present, no situation will remain same for long period of
time that means it fluctuates every time. So for dealing in this condition, it is necessary
that entrepreneur should have adaptability and flexibility skills so that he can adjust
himself as per prevailing situation and can get desired result or outcome within stipulated
period of time. If he will not be flexible or adaptable then he cannot survive in the market
for long period of time because he cannot meet with the demand of people. Passionate- If anyone wants to become a successful entrepreneur then he should have
passion towards their work so that business activities can be carried out effectively and
smoothly (Carland Jr, Carland and Carland III, 2015). Apart from this, he should have
also some eagerness for learning new things so that business can be moved towards the
way of success. Effective in planning- In order to get success or dealing with daily routine nature work, it
is necessary that organisation should have effective strategy so that it can reach to its
decided destination within specified period of time. So for becoming a successful
entrepreneur, person should have skills or abilities to make effective and attractive
strategy as per requirements so that desired outcome can be gained. Being able to take exit- In a business, there occurs various types of negative situation
then in that situation, entrepreneur should not get depression otherwise he will not be able
to reach to his decided destination within stipulated period of time.
 Management skills- If business activities are carrying out at large level then there will be
requirement of team work so that desired result can be obtained effectively and
efficiently. In a group, there are various kinds of people who have different personality or
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perception regarding their job. Then owner should have skilled to manage them otherwise
expected result cannot be obtained.
Above mentioned traits or characteristics were also present in Bill Gates and Mark
Zuckerberg that's why at present they are most successful businessmen in the world. They start a
new venture without having any family support or background which represents their risk taking
ability and an innovative skills (Obschonka, Silbereisen and Schmitt‐Rodermund, 2012).
P6 Entrepreneurial personality related aspect which motivates mindset of an individual
An entrepreneur is the most important person for the development of economy because it
contributes in its growth by providing job to the people which improves the living of standards of
society. While carrying out business operation, owner has to face various problems and has to
make lots of efforts for getting expected result. Commercial activities can be carried out by those
individuals who will have high tolerance and motivation power. There are various aspects which
reflects the mindset or motivation of Mark Zuckerberg which are described below- Family- It is the most important aspect which motivates to people to do business
effectively and successfully (Lange, 2012). If an individual will only be liable to take
care of his family then it will force to him to carry out commercial activities so that
members can live their lives effectively and smoothly. And suppose if he will have
family business then this factor will pressurize him to carry out existing operation
towards growth. So from above discussion, it is cleared that this aspect is the most
influential factor which affects the mind of people for doing business effectively and
efficiently. One of the famous businessman Mark Zuckerberg was also influenced with
his father. His father was also a businessman. He needed some technology for contacting
with their clients and their requirement was felt by Mr. Zuckerberg then he invented
Facebook by which any person can interact with anyone and anywhere. Life style- There are various individuals who start their own venture for maintaining their
lifestyle or living of standards in the society. This aspect sets mindset of people to
become an entrepreneur. Personal motivation- It is the most influencing element which encourages people to start
their own business rather than to do job elsewhere. If an individual wants to earn more
profit and respect in the society then own start up will be beneficial which will help in
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