Entrepreneurship: Types, Impact, and Characteristics

This report provides a comprehensive overview of entrepreneurship, examining various types of entrepreneurial ventures including small business entrepreneurship, scalable start-ups, large-scale entrepreneurship, and social entrepreneurship. It analyzes the similarities and differences between these ventures, comparing lifestyle ventures, serial entrepreneurs, and businesses led by male and female entrepreneurs. The report further explores the impact of micro and small businesses (SMEs) on the economy, detailing their contributions to employment, foreign direct investment, and development in backward areas. It also discusses the importance of SMEs in society and the economy, including their role in the context of Brexit. Finally, it investigates the characteristics, traits, and skills of successful entrepreneurs, examining the influence of experience, background, and mindset on entrepreneurial success.

Entrepreneurship

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Examine different types of entrepreneurial ventures.............................................................3
P2 Similarities and Differences between Entrepreneurial Ventures...........................................4
TASK 2............................................................................................................................................6
P3 Impact of micro and small businesses on the economy.........................................................6
P4 Importance of contribution by SME towards the society and Economy...............................9
P5 Determining the characteristics, traits and skills of two successful entrepreneurs..............10
P6 Entrepreneurial personality striking their state of mind and motivation.............................11
TASK 3..........................................................................................................................................12
P7 Experience and background can surrogate and obstruct entrepreneurship..........................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
When an individual or group of people have the capacity and will to develop along with
the management of the various business ventures with which risks are allotted for making high
range of profit. Entrepreneurship's basic example is starting up a new business (Aldrich, 2012).
From the aspect of economics , entrepreneurship has various elements combined in it like land,
labour, natural resources who will be able to produce profit. There is great saying that more the
risks, more will be the profit and that is applicable while starting a business with new concept.
This report mainly focuses on the range of venture types which may be considered
entrepreneurial. Apart from that, various impacts of small business within the economy will also
be discussed. In addition, mind set of an entrepreneur and the key aspects of the mind set along
with the examination of various environment which will affect the entrepreneurship and ways in
which they can be avoided in order to achieve the overall goals and objectives in effective
manner.
TASK 1
P1 Examine different types of entrepreneurial ventures
There are four types of entrepreneur ventures which are established in market place while
starting up a business: Small business Entrepreneurship: In modern scenario, there are various number of
entrepreneur who are setting up their foot marks in United States market but it is
happening on small scale. There are approx 5.7 million small business in the market place
and that has covered up the area of 99.7% of the companies and the unemployment rate is
reducing due to their employment which is 50% of all the non governmental workers.
Small business mainly consist of grocery stores, agencies, carpenters, electricity products
stores or small supermarket and many more (Audretsch, 2012). This affect the security
typology of the business as a person starts it with the motive of getting financially
secured so that he\she can complete the basic needs of the family and can secure the
future in terms of any problem or education and the basic needs as stated above. Scalable Start up Entrepreneurship: In this kind of entrepreneurship, while starting the
business it is known that some day that vision will bring the change in the economy. So
for that entrepreneur looks out for the financial investors who have the equal mindset just

like entrepreneur have. Moreover they hire the best and skilled workers who can help
them to achieve the vision in effective manner. This confidence helps them to acquire the
potential for the growth and success. The other elements which are involved in this kind
of entrepreneurship is that their mind set and focus is high on the goal and objectives and
this bring out the skills and capabilities to develop and grow on rapid speed. Large Scale Entrepreneurship: This type of entrepreneurship is mainly conducted on
large scale and they are formed with high involvement of fund. They achieve growth and
success through various tools and techniques like innovating new types of products, latest
technologies and competitors pattern (Audretsch, Falck and Heblich, 2011). They analyse
the market place and thus identify the actual needs and wants of the customer and satisfy
them in best possible manner. Large scale entrepreneurship mainly focus on sustainable
typology as sustainability helps them to grow and get the success point which they have
desired by acquiring large amount of customers and market share and satisfying
customers in better manner.
 Social Entrepreneurship: In this kind of entrepreneurship, owner mainly focus on
creating products and services which can be proved as an appropriate solution for the
social needs and issues. They have the motive of making economy a better place so that
development can take place in society. They are basically works on non profit or hybrid.
The typology which can be related to this kind of entrepreneurship is attitude towards
growth and success as it enables people living in economy to develop themselves in every
possible manner and live in a better life style.
P2 Similarities and Differences between Entrepreneurial Ventures
There are some certain sector on which similarity and differences will be judged and they
are described below:
Lifestyle Ventures or the business Similarities
1. They start business with an innovative
idea and thus focus on its achievement
(Bruton, Ahlstrom, 2010).
2. They hire skilled and knowledgable
workers who will achieve the allotted
tasks in effective manner.
Serial Entrepreneurs ventures similarities
1. They also start business with an
innovative vision and thus they mainly
focus on its attaining.
2. They look out for the effective and
skilled candidates who can help them

3. Their main aim is to attain growth and
success by acquiring large amount of
customers in market place.
to achieve the goals and objectives.
3. Another similarity can be stated as the
common aim of the company which
can be attained by acquiring large part
of the market share.
Differences
1. They start up their business with the
motive of developing lifestyle socially
and economically.
2. They run it with motive of running that
business for long time by keeping
power in their hands only.
Differences
1. They start up their company with the
aim of implying an innovative idea and
thus after growth and success they
basically shift that business to some
other person.
2. This kind of entrepreneurship does not
tackle the roles and responsibilities for
long time as they shift those to another
and thus moves on to other innovative
idea (Bruton, Ketchen and Ireland,
2013).
Female Entrepreneur Business
Similarities
1. They mainly start an start-up with the
motive of gaining growth and success
along with revenue generating.
2. They analyse the market and set their
products and services according to
actual needs and wants of the customer.
3. They focus on acquiring large amount
of customers so that market share can
be obtained with the competitive
Male Entrepreneur Business
Similarities
1. Business is being started with the aim
of achieving aims and objectives so
that revenue can be generated with
profit margin.
2. According to the actual needs and
wants of the customer, products and
services are being developed or
modified.
3. Similarity just like female entrepreneur

advantage (Carraher and Paridon,
2015).
has that they want to acquire large
market share through customers.
Differences
 In aspect of capabilities they have
lower capabilities and confidence while
implementing any business start up.
 When it comes to decision making
process, female entrepreneur has much
more skills for effective decision
making.
 For creating effective communication
skills, female entrepreneur has much
effectiveness in that.
Differences
 Male entrepreneur has much more
capabilities and confidence while
launching out a new start up.
 In decision making process, male is
effective and obtainable but the area
which they lack in is resolving issues.
 Effective communication can be
established.
TASK 2
P3 Impact of micro and small businesses on the economy
In modern scenario, small business enterprise plays a vital role in country' development.
They consist large amount of share in the market place and are the major concern for the Govt.
of UK. Small business environment effect major elements of the country in positive and negative
manner and those elements can be GDP rate, Export Import rate, Unemployment and many more
(Desai, 2013).
There are various impacts on the economy of UK Govt. like in 2016 there were 6.4 million
business which were running successfully on small scale. About 98% of the business are small
scale and contributing in growth and development. In UK, major percentage of employment rate
is 33% and that creates 19% of turnover. At present there are about 7 million small business just
double of 3.5 which was in year 2000.
There is no such proper index in which SME can be classified but there are some basic
conditions which are applied in order to get proper indexation of the business firm (Drucker,
2014). Things are much more complicated and to resolve that basic requirement of identification
are described below:

 Micro Business: It is very small in nature and works on very small scale in order to get
financial security. It consist of mainly 10-15 staff members and they have their turnover
under $2 million. Their main aim is to generate maximum revenue so that they can grow
and can be successful. This type of business compiles of Sole proprietorship because it
does not require much funding and capital can be arranged by personal savings or taking
loan from banks. Micro business can be shops, carpenters, workshops of cars, stores, cafe
and many more. This kind of business does not require much amount of capital (Fayolle,
2013). Small Business: It is also small in nature but as compared to micro level business it is
much high on scale and thus this is the major difference which differentiates micro and
small business. It consist of mainly less than 50 staff members and their turnover should
be under $10 million. They focus on acquiring large amount of customers by analysing
the market demand and thus modifying products for satisfying the customers in
maximum level. This kind of business may require partnership if the owner does not have
much funds to invest in start up. Mainly this kind of business is private in nature as Govt.
does not mainly put their hands in small scale industry. This either can be in partnership
or in proprietorship totally depending on the funds required to start up the business
(Hlady‐Rispal and Jouison‐Laffitte, 2014).
 Medium Business: It is large in nature as compared to small scale business because in this
partnership is required to invest the capital and thus launch the business. It consist of less
than 250 employees and their turnover is around $50 million. This type of business is
mainly focus on generating profits along with contributing in social development.
Partnership means a legal contract between more than two members regarding achieving
any task.

(Source: Different Impact on Areas, 2017)
There are certain areas of the economy which will impact SME'S: Employment: SME mainly consist of 90% of the business market place so that provides
50% of the non government workers employment. That in turn gives more opportunities
to people who are unemployed and reduce the unemployment rates and contribute
towards development of society. Foreign Direct Investment: It is an investment made by the company or an individual into
other country with the motive of starting up business or grabbing assets of business (Kiss,
Danis and Cavusgil, 2012). This give huge contribution towards the economy of the
country by generating revenues.
 Backward Areas: After providing employment,small business enterprise allows other
backward caste and people to get jobs in which skills are not much required and they can
learn after small training. This will motivate them to come in front, earn and secure their
family financially and also educate their children so that they can be the bright future of
the country (Kuratko, 2016).

P4 Importance of contribution by SME towards the society and Economy
Brexit is a term which is popular and related to the withdrawal of the United Kingdom
from the European Union. On 23rd June 2016 , approx 52% of the participating UK electorate
voted to the UK to leave. The Govt. of British invoked article 50 of the Treaty on the European
Union on 29th March, 2017, so this made UK to leave EU on 29th March, 2019 (Meyer, 2011).
There are 7 main elements which are threats to the entire European union and those are :
 Most of the funding will be vanished.
 Chances of emerging skills gap.
 Collaborative nature does not believe on limits
 Scientists mainly rely on Cross-EU logistics
 Environment is being protected by EU law.
 Impartiality will be at higher risk.
 Shifting of Headquarters.
Main difference between small business and start ups are described below:
Basis Start ups Small Business
Expectation and Rate of
growth
They mainly focus on the
growing fast and thus scaling
it. Reason behind fast scaling
is the technology behind it.
Small business as compared to
the start up is more limited.
Thus it can be said as low rate
of growing and gaining
success.
Finance They mainly look out for the
external funding in order to
make growth fast and smooth.
That enables them to look out
for the funding until they
generate their own revenue.
Risk is more attached with
start ups (Rasmussen, 2011).
Small business often start
without raising any funds.
They mainly arrange funds
from family, friends or it can
be a bank loan. They mainly
focus on generating revenue
but on lower rate and risks
involved are very less.
Nature of the Idea Start ups mainly produce the
products or services which do
Small scale business focus on
providing traditional goods

not exist or they are modifying
them at rapid speed.
and services for example
grocery stores, travel agents or
they can be hairdressers.
Small business and start ups both work in different direction yet their goals is earn profit margin
in the economy. This is highly important to other parts of the world because a start up is
launched with the motive of making one self financially secured along with family. This
encourage not only contribution towards society but also encourages employment, education and
standard of living. Small businesses has acquired most of the market place in an country because
in today's era everyone is motivated towards launching of a start up and thus gain revenue. Both
majorly contributes towards economic and social development (Slavec and Drnovsek, 2012). As
they have acquired large marketplace by the business firm and start ups, they mainly provide
employment and motivates backward class to raise their standard of livings. This brings more
revenue to the Govt. and foreign exchanges. This have brought development in international
trading in UK along with the social development.
P5 Determining the characteristics, traits and skills of two successful
entrepreneurs
There are two entrepreneurs like: Bill gates and Steve Jobs are the
successful entrepreneurs of their time as they saw the opportunity and
acquired and now they are dealing as leading competition in market place.
They have some characteristic, skills and traits which are as follows: Hard Workers: Both of them are considered as hard workers and
rest their success says it all and their enterprise. For attaining goals
and objectives and attainment of vision it is highly needed. Risk Takers: They both took the risky step by giving their career and
funds into their company at the time of launching new company. They
both faced the risks and covered them by various tools and
techniques and then achieved the profit by the business operations
(Stewart and Cotton, 2013).

 Money Management: Both of the entrepreneurs managed their
resources and used them in optimum manner and its is very essential
for growth, success and development of the start up. Working capital
is made under control due to this. Successful Planner: Their plans and strategies worked out in
effective manner and thus they were able to productivity, growth of
business and profitability etc. They were able to predict the future
and thus it made them to plan in most effective manner and results
obtained are clear in front of everyone (Vanevenhoven and Liguori, 2013).
Skills and Traits of both Entrepreneurs: Determination: Both of the entrepreneurs can not be judged on the
basis the business but all it can be said that they faced many
challenges in their life but they kept on going and now they are the
leading entrepreneur in their respective field. So it can said that both
had high determination for achieving their visions. Communication Skills: It is highly significant skills and both
businessperson are handling with this kind of situations. This enables
to motivate employees whenever they face any kind of issue and thus
that will in turn will help to achieve the tasks and objectives in
effective manner.
 Chance Grabber: After dealing with almost every kind of situation
they became optimistic and calm and that made them think in wide
manner and thus they now are successful in grabbing every
opportunity.
Both became successful business entrepreneur in UK and they have
been setting examples to others by this because there every quality is
unique and by applying them any start up can become successful.
P6 Entrepreneurial personality striking their state of mind and motivation
While placing staff members, HR management often use OCEAN approach which in turn
helps to allot the tasks according to their skills and capabilities which improves an individual

personality and professional development as well. The big five dimensions which can be used for
development of personality are openness, Conscientiousness, Extroversion, Agreeableness and
Neuroticism mainly known as OCEAN: Openness: This is the major part in the life of an entrepreneur in which they have
curiosity to learn new things and enjoy the new kind of experience which let them to
score high in openness. This create comfortable environment which helps them to
achieve the desired aims and objectives of the firm. Conscientiousness: This comes under the focused part and allows an entrepreneur to be
alert and active mind who has his eyes on every element which is working out in the firm.
This helps them to grab any opportunity and enable to create effective environment and
make every operation organised along with the methods followed. Extroversion: This enables an entrepreneur to predict for the future before planning so
that effective outcomes can be achieved. This includes the elements like talkative and
assertive. Agreeableness: This kind of approach enables an entrepreneur to create friendly
environment and be cooperative with the employees and the clients. This includes being
kind, affectionate and sympathetic (Wood, Davidson and Fielden, 2012).
 Neuroticism: This is also known as emotional stability which lets an entrepreneur to
maintain healthy relationship among the employees. This includes being moody and
tensed.
TASK 3
P7 Experience and background can surrogate and obstruct entrepreneurship
Journey of an entrepreneur is not easy and they face so many issues and problems in their
regular life. But an entrepreneur always get motivated from variety of things which are taking
place in their life. Hence, an entrepreneur background will always support in hinder and foster
their working and idea so that their sustainability could become possible and managed (Ziegler,
2011).
A survey in UK stated that background of an entrepreneur always motivates and
encourage such individual so that they are going to ascertain each and every target in an
effective manner and implement their business idea properly as well. Rewards of