Exploring Entrepreneurial Ventures and Their Economic Impact

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Entrepreneurship and Small Business Management
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Contents
Introduction................................................................................................................................3
LO 1...........................................................................................................................................4
P1: Examine different types of entrepreneurial ventures and explain how they relate to the
topology of entrepreneurship.................................................................................................4
P2: Explain the similarities and differences between entrepreneurial ventures.....................5
LO2............................................................................................................................................8
P3. Illustrate how micro and small business impact on the economy....................................8
P4. Importance of small business and business start-ups to the growth of the social
economy.................................................................................................................................8
LO3..........................................................................................................................................11
P5. Characteristics traits and skills of successful entrepreneurs that differentiate them from
other business managers.......................................................................................................11
P6. Aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mindset.................................................................................................................................11
LO4..........................................................................................................................................13
P7. How background and experience can hinder or foster entrepreneurship.......................13
M4. Analyze the link between the entrepreneurial characteristics and the influence of
personal background and experience to successful entrepreneurs.......................................13
Conclusion................................................................................................................................15
References................................................................................................................................16
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Introduction
Entrepreneurship is the ability and the enthusiasm for emerging, management and organizing
the business projects and taking of the risks for making the profit. This assessment helps the
people to understand the entrepreneurship and the small business management. It helps to
describe how a small business can be managed and organized. This assessment helps to
explore different types of entrepreneurial ventures and also shows how small business may
affect the economy. There is also different skills of the entrepreneur, there traits and mindset
is to be discussed. Some background information may also experience and in what aspects
the experience can hinder or foster the entrepreneurship.
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LO 1.
P1: Examine different types of entrepreneurial ventures and explain how they
relate to the topology of entrepreneurship.
Entrepreneurship is the practice for designing and running of the new business that is totally
based on creative ideas. Basically, at the initial stage, this business starts with a small scale
and after the there is any growth shown in the business than it will be enhanced on a large
scale. Entrepreneurs start their business by taking risks to make the profit. The different
entrepreneurs also act as a manager and manage their team an also guide them which really
helps them in the future (Cherry, 2017). There are four different types of Entrepreneurship
Ventures as:
Small business Entrepreneurship
Starting of the small business is about opening the stores like groceries, consultancy, travel
agents, plumbers, carpenters, hairdressers and many more this all ideas are based on the small
business. These businesses can be run by anyone by hiring the local employees or family
members and make more profit. The main motive of the small business is to feed their family
members and make more profit, they do not have the wish to build the company and make
about $100 million business. They arrange the funding for their business with the help of
friends, family or taking the small business loans.
Scalable start-ups Entrepreneurship
Scalable start-ups are the business in which they started the company with the help of the
investors. These star-ups may see the vision to change the world. They arrange their
investments from the other industrialists or by any crazy investors (Koudstaal, et. al., 2015).
They try to hire the best employees for their business and also the brightest one. In this type
of Entrepreneurship the entrepreneur search for the scalable and repeatable business model
for their business in the future. There are many famous clusters where this innovation may
execute the place such as shanghai, Silicon Valley, Bangalore, Israel and many more.
Large Company Entrepreneurship
This type of entrepreneurship has the determinate lifecycle. These Entrepreneurship ventures
are offering the new and the updated products of their main products. They do the business
by considering the different tastes of the customers, new technologies and new competitors
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and many more. If there is an existing company wants new entrepreneurship ventures then
they acquire innovative companies or they try to build some creative product inside their own
organization (Kulchina, 2017).
Social Entrepreneurship
These are the entrepreneurs who are mainly focused on creating new products and the
services that are helping to resolve the needs and the different problems of the people. Their
main motive is to make a better place. These type of entrepreneurship ventures may be non-
profitable, profitable or hybrid system of organization.
P2: Explain the similarities and differences between entrepreneurial ventures.
Individual
Entrepreneurship
Corporate
Entrepreneurship
Similarities  Discover new things.
 Taking advantage of opportunities
 Develop new products.
 Develop new business and services.
Differences  The risks are the
personal level.
 High patience in
the risk.
 There is full
control over the
ownership of the
new business.
 They are
independent.
 This consists of
small teams.
 There are less
personal risks
 Corporate type of
risks.
 There is no partial
ownership in this type
of business.
 They are not
independent and less
decision-making
structure.
 The large size of the
team is required for
the business in
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Corporate
Entrepreneurship
(Lee, et. al., 2015).
M1: Investigate a diverse range of Entrepreneurial ventures to demonstrate an
understanding of entrepreneurship in both the public and corporate sectors.
The different variety of entrepreneurial ventures is diverse and this all depends on the
purpose of the business and here this is divided into different types as public sector and
corporate sector entrepreneurship.
Public sector entrepreneurship is the public policy inventiveness that helps to make the
economic wealth by changing the status of the economic environment. In the present
economy, the public sector entrepreneurship affects the conversion mainly by cumulative the
efficiency of the data networks (Lu, et. al., 2016).
Incorporate sector entrepreneurship they mainly focus on the actions and the positioning like
the development of the new products, technologies, services, strategies, and etcetera. This is
the system that helps to allows individuals to use creative processes.
In fact both these are involved in the production of the products and services and try to
expand their profits. They both are mainly working on the basis of the present market and the
demands of the people. These both sectors are working hard for the expansion and wants to
reach to the targeted people in the market (Van, et. al., 2016).
D1: Scope, development, and growth of entrepreneurial ventures.
Scope: the scope of the entrepreneurial venture is to develop the nation because it helps to
give employment to the people who are sitting unemployed in the home after having a good
educational qualification. There is the scope for the more profits and also it helps to promote
entrepreneurship at big level (Sajilan, et. al., 2015).
Growth: it investing in the products and services for the need of the people, and also it
provides opportunities for employment for the people. Entrepreneurial ventures also promote
new technologies so it has grown at the major level.
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Development: development refers to improving the current possible with the help of the
process of education and application. It helps in developing the process of refining the
abilities and set as the facts of the entrepreneurs. It also helps to manage the business
ventures and with keeping in mind about the risks that are related to the business.
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LO2.
P3. Illustrate how micro and small business impact on the economy.
Small business assurance says according to the survey that was conducted for more than 2000
small business owners, this survey was conducted by CNBC and Survey Monkey. With the
present difficult job market condition, 33% of the respondents said that they are planning for
adding more employees in the next year. These data are additionally maintained by the U.S.
Bureau for the labor statistics and the further findings show that an employment ratio on July
is about 60.5 % and after that, the highest on the record found in January 2009. According to
the current study by the NFIB, 51% of the small business are finding no qualified aspirants
for their accessible jobs.
The impact of the small businesses in subject with the national economy is extremely difficult
and this is one of the fundamental issues. Classification of business as the small or the large is
defective. There is a centralized agency that designed for supporting the small business and
also to classify the small business in a very meaningful way (Velu, et. al., 2016). The small
business is defined or the company is defined as small if there are employees less than 500
and it is also many difficult for the company to exceed the employees more than 500. Small
business has created the 1.9 million jobs in the year 2015 which is out of 2.7 million
bookkeeping for approximately 70% of all the new jobs. 24.3 million Of the small jobs are
being classified as the Non-employer business as self-employed persons. In the year 2015
employment in the small business is about 58.9 million for the private workforce and also the
annual payroll for the small business is about $2.55 trillion.
P4. Importance of small business and business start-ups to the growth of the
social economy.
The importance of the small business and start-ups in the local areas and in the big cities as
seen as the benefits in the economy by shopping in the local areas. Some of the important
points that show how important is the small business and by what ways it helps in the growth
of the economy:
Employing local workers: small business helps the social economy by providing growth and
innovation to the local community. Small businesses also help people who are not
employable in large firms by providing jobs. These type of businesses attract the new talent
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who are willing to invent their new products or wants to implement new variations in the
existing ideas.
Adapting to climate change: many of the small businesses have the capability for adapting
if there is climate change. Small business is more customer-oriented as compare to the large
business because they understand the needs of the customers. Many of the local people
(customers) are totally dependent on the small business at the time economic crises
(Venkataraman, 2019).
Contributing to Local government with the taxes: business at the local level may generate
a high level of the revenue which definitely means that the business may pay high taxes to the
local government. These taxes than contribute to the development of the local police and fire
department and in the school. Small businesses also help to improve the values of the
property within the community.
Growing small business to the corporation
The small business does not remain the same for all time take the example of Nike and other
business which was started from the small business and now it becomes the world's largest
manufacturer of shoes and other items. By becoming a large corporation it can further
provide employment and motivate the local economy and also creating a market that helps to
favor the development of the small businesses.
M2. The differences in small, medium and large business make the economy.
Small business Medium business Large business
Differences  This business
mostly helps the
family and
founder.
 Owner
themselves
manage this
business.
 This business
wants short term
planning.
 This type of
business are
privately held
with the help of
public and
family.
 Here the
decision is taken
by the CEO and
the owner of the
business.
 This business is
mostly held by
public investors.
 The management
in this business
is professional.
 Decision making
in this large
business is
distributed.
 This business
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 Informal type of
process is mostly
used in this
business.
 Having few
customer bases.
 The small
investment is
needed for
development.
 Somewhat long
term planning is
needed for this
business.
 The formal type
of process is
used in this
business.
 Having less
customer’s base
in a geographical
area.
wants wide long
term planning.
 Wide range of
funding needed
in this type of
business.
 This business
has a very
various market
and diverse
customers
around the
world.
D2. How small business have an impact on different levels of the economy.
Small business provides an opportunity for the people for achieving financial independence
and also to encourage new innovation and also create employment opportunities for the
people who are unemployed. Small business helps the nation, local areas by providing
employment and generate more revenues and pay taxes to the government that is useful for
the development of the schools and in other fields which are required.
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LO3.
P5. Characteristics traits and skills of successful entrepreneurs that differentiate
them from other business managers.
The manager is basically the leader in the established organization which is responsible to
manage the work in an organization by keeping their eyes on the employees in the
department. The work of the manager is to assign tasks to the employees and also provide
guidance wherever is needed by the people and the manager also ensure that all the works
should be done in the given deadline. The managers are given higher pay and have
responsibility but the main thing is that they are also the employee in the organization and
have to answer to their superior.
Entrepreneurs are the people who are working for identifying the problem of the consumer
and keep on finding the solutions and build their own business according to the solutions
found by them in favor of the public. Entrepreneurs have the ideas which are met through
business and they are also ready to take the financial risks for running their business. They
also hire other employees for working in their business idea and to make the profit (Cole, et.
al., 2015).
Traits of Manager
The managers who are good at their work are always excited for the company and work
positively and also well communicate with the employees. Managers may also arrange the
tasks and also to lead the department by taking some tough decisions. They also listen to the
employee's worries and maintaining a positive environment in the company.
Traits of Entrepreneurs
Entrepreneurs have the ability to look for the problems of other people and design solutions
which are helpful for the people. The Entrepreneurs are highly motivated for bringing their
ideas for execution and have a great deal for their ability. They are always ready to take the
risks and the challenges which are come to the entrepreneurs are seen as the opportunities.
Entrepreneurs are willing to hard work for their company and also they are passionate about
their work and company (Lackéus, et. al., 2015).
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P6. Aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mindset.
There are some of the Entrepreneurial personality and mindset are:
Reach out to the customers first: good entrepreneurs are always reaching out to the
customers first and analyzze the need of the customers which is in demand in the market.
Finding out the new market for the existing product: entrepreneurs always try to find out
the new market in which they may sell their products and provide services to the people. New
and creative idea helps to maintain aa reputation in the market and to cover more market.
Use networking to build the business: many of the entrepreneurs are in the nation talk
about the status of the networking and many of them are well known about the networking. It
says to give value for something first then asking for something at the beginning.
Give without Expecting of the return: this is the main characteristics of an Entrepreneur to
give without expecting of the return while in the case of manager they are giving their best
for only for the money they receive.
M3. Explore and examine the different lines of argument relating to entrepreneurial
characteristics.
There is the connection among the characteristics of entrepreneurial and the individuals,
because most of the time some of the individuals may become the issue of obstructinging.
But the good Entrepreneurs have some characteristics which definitely helps them to
overcome with obstructs and get success in their life (York, et. al., 2016).
D3. Analyzze the characteristics traits, skills and motivational drivers of successful
entrepreneurs.
The entrepreneurs are freedom--oriented they think freely about the new ideas they have not
any pressure onn the boss and pressure from any organizzation.
They are also brave in nature because they are ready to risks in their business and also they
do not have any regret of losing the race and them considering the challenges as an
opportunity.
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