Entrepreneurship Report: Types, Characteristics, and Economic Impact

This report on entrepreneurship provides a detailed examination of various venture types, including small business, scalable start-ups, large company entrepreneurship, and social entrepreneurship, along with their respective typologies. It analyzes the similarities and differences between these ventures, highlighting the roles of survival, serial, lifestyle, female, and social entrepreneurs. The report further investigates the impact of small and micro businesses on the economy, covering local, regional, national, and international levels. It also explores the importance of business start-ups and small businesses, including the impact of Brexit, and discusses the characteristics, skills, and traits of entrepreneurs, as well as how entrepreneurial personality impacts mind-set and motivation. The report also touches on how experience and background can foster or hinder entrepreneurship.

Entrepreneurship

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Types of entrepreneurial ventures and typologies................................................................1
P2 Similarities and differences between entrepreneurial ventures.............................................3
P3 Impact of small and micro business on the economy............................................................4
TASK 2............................................................................................................................................6
P4 Importance of business start-up's and small business............................................................6
P5 Characteristic, skill and traits of entrepreneurs......................................................................8
P6 Entrepreneurial personality impact their mind-set and motivation........................................9
TASK 3..........................................................................................................................................10
P7 Experience and background can foster and hinder entrepreneurship..................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship can be defined as a process which involves proper allocation of limited
resources and setting goals as well identifying opportunities to grow understanding the
possibilities of failure and success. This is a venture that is initiated to cater change in existing
system and framework (What is Entrepreneurship?. 2017). In small business, employer have to
distribute or balance those limited resources in unlimited requirements of company in respect to
make profits. Management refer to administration of various activities which is being occur in
organisation for proper functioning of operations. This is a skill or an art which helps a company
to manage and monitor entity and accomplish competitive objectives as well as advantages.
This report studies, the various aspects of entrepreneurship in context of small business
and its several typologies of entrepreneur through identifying their traits (Aldrich, 2012). This
also investigate the impact of SME in country's regions, internation, local and national levels,
how much they are important for society.
TASK 1
P1 Types of entrepreneurial ventures and typologies
Entrepreneurial Ventures -
Entrepreneur is an individual who starts a venture understanding the risk of failure and
success. Instead of worrying over the failure they learn from their mistake and embrace the
opportunities. An entrepreneurial venture is initiative of adventures journey of business with
limited resources and unlimited requirements and every possible chance of failures.
Small Business Entrepreneurship –
Small business includes those ventures which are initiated to earn living by individual or
group of people which includes grocery stores, saloon, travel agent, electricians, plumber etc.
These people recruit local people as their employee (Audretsch, 2012). Such organisation are
unable to attract investors for their business thus they hire loans from banks, family and friends.
Small business are in relationship with survival ventures.
Scalable Start-up Entrepreneurship -
Such entrepreneurs forms their business with the vision of changing world concept. They
attract those investors who are willing to invest in their crazy concepts like venture capitalist.
The main motive of businessmen is to make profits ad benefits as well as to create measurable
1

and repeatable structure for business. These venturers recruit hard workings and bright
employees for work.
Large Company Entrepreneurship -
Large companies are structured to create and increase growth of all spent revenues which
has a finite life cycle in market. They develop themselves through launching and modifying their
core products through the help of innovation. Change in market and trends can create pressure
for such organisation thus, to overcome with them they create disruptive products. These are
hard to execute in market.
Social Entrepreneurship -
Social entrepreneurs focus over the welfare and goodwill of society through their
business. They work for profits and non-profit but only to serve the society (Audretsch, Falck
and Heblich, 2011). The only aim of social ventures is to make society a better place to live in.
All of these venture are interrelated with various typologies from which some are as
below:
Survival Ventures -
Such venture start their business in order to earn surviving money for them and their
families. These are not located at particular sites, no connection with banks and not usually
licensed. These venture focus over the earning revenues for living than benefits.
Serial Entrepreneur-
Serial entrepreneur often carry new aspects of looking business or fresh concept in
market. These play a significant role in market trends and assist in scheduling all the activities of
organisation. These entrepreneurs are useful for the industry and business which inform about
new practice and undertake them.
Lifestyle Ventures -
Lifestyle venture are those enterprises who keeps changing their strategies, objective and
structure according to trends and market environment. These business usually include employee,
premises and proper locations and lesser growth and less expansion of business (Bruton,
Ahlstrom and Li, 2010). In these, basically worker number remain constant.
Female Entrepreneur -
These entrepreneurs work for the betterment and development of female employee in the
society and cater change in the system through conveying message and concepts. Main motive of
2

these are to increase standard of living of women and bring equality and justice for them in
community or whole world.
Social Entrepreneurs -
Social entrepreneur often begin the social venture in order to serve for community
problems and issues and bring change in the system through informing people about their rights
and other important aspects. They usually work for no profit and serve straightly for the society.
P2 Similarities and differences between entrepreneurial ventures
Types of Ventures Similarities Differences
Small and social
entrepreneurial
1 Small and social both utilize
strategies which are creative
and innovative to meet goals.
2.Target of both ventures are
public one aims to serve them
and one goal for sell them
(Bruton, Ketchen and Ireland,
2013).
1.Social entrepreneurial focus
over serving the society and
work as a team where, small
ventures are introduced to earn
profit for self surviving and
improvement.
2. Small business aims to fulfil
needs where social ventures
aims to serve community and
society.
3. Small business concentrate
over the benefit mount but
social whereas work for
community not benefit.
Large and scalable
entrepreneurs
1. Large and Scaleable both
focus over the maximum
benefits amount.
2. Vision of large and scaleable
both is change the concept of
market and society.
2. Both prefer are bright, and
potential employee for their
1. Scalable venturer's benefits
are easily measured but large
organisation contain unlimited
resource and benefits or loss
(Carraher and Paridon, 2015).
2. Scalable ventures look for
venture capitalist who can
agree with their ideas whereas
3

work. large focus over investors top
expand business.
Lifestyle venture and serial
entrepreneurial ventures
1. Both venture vision to
merchandise their products at
various levels in market.
2. Both organisation access new
concepts and ideas for their
business.
1. Lifestyle ventures do not
deal with small ventures
whereas serial concentrate over
expansion opportunities.
2. Lifestyle facilitates comfort
in everyday lifestyle through
services whereas Serial look
over new concept of running
business.
Female and male
Entrepreneurial
1. Both present even
knowledges and experiences.
2. Both work hard for the
success (Desai, 2013).
3. Risk in failure and success is
equal for both male and female
entrepreneur.
1. Men are more concentrate
toward money whereas female
cop up with their need, time
and scarifies a lot for work.
2. Male entrepreneur more
likely to earn profit but female
entrepreneur focused over the
job performance.
3. Female are more innovative
and creative than men
entrepreneurs in matter of
business and work.
P3 Impact of small and micro business on the economy
Small Business -
Small business include sole, partnership and corporations with limited employee and
resources and able to earn normal size of benefits (Drucker, 2014). These enterprises include
more than 50 to 3000 maximum employee working under their company.
Micro Business -
4

Micro business include those enterprises which are established on very small level and
hire 1 – 9 employee maximum for their work. They have only one to 3 owner of the company
and average profits amount.
Medium Sized Business -
Medium sized business contain fewer than 250 workers assigned in company and their
annual income is between 25euro to 500 euro. Such company manage assets and revenues o5r
worker under a proper threshold.
Traits and Nature of Private, Sole and Partnership -
Private –
Private companies are owned by few people which is managed legally through them and
shares of company can not be socially trade. Such companies include less than 50 shares and
shareholder holds the shares (Fayolle, 2013). Company requires minimum 2 directors for
managing the operation of organisation and its functions and are often established for person or
family benefits.
Sole -
In sole business, one individual holds and manages entire operation and functions of
company and is responsible for legal structure, loss and profits of organisation. Such partnership
needs less paper work and barriers in decision making process. One individual is liable for the
entire activities which occur in workplace. This is the most convenient business structure which
any one is able to create and such companies contains large amount of risk in failure and less
opportunities of success.
Cooperation -
Business firm are the legal enterprises which is often owned by stakeholder. Such entity
is behave as an individual with all rights of a person. Such companies pay taxes which may
owned by publicly or privately by owner. Organisation may have thousands and millions of
stakeholders who own they shares. A company requires to proceed the process of registration as
a corporation for the equal identity (Hlady‐Rispal and Jouison‐Laffitte, 2014). These entity
contain limited liability by those who have contributed through purchasing the shares.
Economy Impact
Local Impact -
5

Small business contribute 92% part in UK annual economy. Local business impact over
the social economy or national finance through participating and paying tax. It reduce the local
unemployment and aid gov. in fulfilling their responsibilities through creating jobs and
employment opportunities. Small and micro business have create 64% local jobs for youth every
year. This also contribute in change in market trends and introduce the society the new concepts
and innovative ideas of business and marketing. Micro companies are responsible for changing
trade factors and income of country and create and change the expectation of localise through
influencing their ideas and thoughts.
Source 1: Impact of the different area, 2017
6

Regional Impact -
Small and micro business influence regional market of a nation in various ways. New
start-ups and micro business may produce unique quality and affect the employment (Kiss,
Danis and Cavusgil, 2012). Competitors develop the techniques of production and market
choices according to region where the business is established. Regional market affect the trends
of company through the help of micro and small companies and also affect national financial
situation.
National and International Impact -
Micro and small business contribute a vital part in national employments and position of
employment of country in international market. In UK, these crate 26million jobs in country
overall and 1. 9 million indirect jobs they offers. 560% of private sectors are giving the jobs top
youth. Also it helps in increasing aggregate of per person income of Europe which is considered
one of most rich nations worldwide. This assist in creative innovation of UK on 37% which
generate revolutionary invention. Moreover, these also help country through paying tax and other
funds and increase gross income of UK.
TASK 2
P4 Importance of business start-up's and small business
Brexit: It is identified as a form for “British Exit” which is bring up the judgements of
United Kingdom in 23 June, 2016. The vote's output resist annoyed global markets and
expectations, exploit the pound of British to spill to its lower floor against the 30 years’ dollar.
After the Brexit, both business start-up's and small-scale important because it will increase the
job opportunities and reduce the government tax (Desai, 2013). Under this decision are taken by
the UK come as a referendum of all national. It gives a significant threat to legislature system
and parties of political.
Importance of both
Importance Small-business Business start-up's
Significant as in other
economic parts
Small business provide may
benefits to the every
organisation. This play an
essential role is increasing the
start-up's is completely
innovative in every enterprise.
One of the main aim and
objective to increasing job
7

economic growth. This small
scale support in Sixty percent
jobs opportunities in private
sector (Drucker, 2014).
opportunities such as
employments. It is very
essential part of the economic
because it supports the social
economic growth as well as
success. This will be
improving in 81% efficient
workforce.
Decrease in social amenities
and increase in employment
Small-business is significant
and assist in creation as well as
innovation in United Kingdom
and European Union. It is also
new and had appropriate
success and growth in
development process of
product. It help that make
small businessperson feel at
house in a location and
generate a local sense identity
and belonging (Fayolle,
2013).
This kind of business are new
so it will help in employment
and adaptability for UK.
Increase the job opportunities
which is very essential and in
this situation unemployment
rate also decrease.
More revenue to government
in terms of taxes
It is very essential because
small-business should be
increase their sales and
revenues so they pay high
amount related to the tax.
small business
Business start-up's is
innovative and who are
working in these business that
are also new. They provide
best possibility related to the
job so they increase their
revenue which is important.
Living standards of society
also increases as
8

unemployment is reduced
when job possibility are
increased.
Economic and social
development
Small-scale are the mainstay
of the United Kingdom
economy. It contributes a best
deal in Job creation. SME's
make up 99.9 % of private
sector company or 60 % job in
private sector (Kuratko,
2016). These kind of firm
develop their complete
expected, it could enclose a
possible 20 billion in the social
and economic by 2020,
regarding to the CBI.
Start-up's is providing different
job opportunities and
innovative products to the
customers and clients. It will
increase the living standard so,
in this form gross domestic
product also maximise in an
essential manner.
P5 Characteristic, skill and traits of entrepreneurs
There are two entrepreneurs like: Richard Branson and Brent Hoberman both are
successful entrepreneurs in an organisation. They have some characteristic, skills and traits
which are as follows:
Hard working: Richard Branson is a hard worker and can take best decision related to the
enterprise growth as well as success in an enterprise (Meyer, 2011). This quality is very essential
to achieve an economic goals and objectives.
Risk taking: Richard Branson and Brent Hoberman both are successful entrepreneurs and they
take uncertainty in difficult situation. It is a most important duties of business persons to ignore
various type of risk which come in business operations.
Money management: Both are successful entrepreneurs and they play important role in working
capital aspects. It is essential facet for growth, success and development of start-up's. This will
necessary for the company manager to control the flow of working capital.
9

Motivation: It is a best characteristic and skill which both entrepreneurs are having and
providing training as well as motivating their employees. Motivated person can complete targets
and values of an organisation. Both are play significant duty for motivates someone's contributes.
Successful planner: Both are successful business person and they plan related to the high
productivity, growth of business and profitability etc. They could see the impressive planning
activity due to enterprise success (Meyer, 2011).
Traits and skills of both Entrepreneurs:
Determination: Richard Branson and Brent Hoberman characteristic that identify in the above
which is very important and necessary for the business success But both are face several
challenges in their life, positive thought can help them in accomplishing desire goals.
Communications skills: It is very essential skill and both entrepreneur are dealing this kind of
skill in their life. These ability support entrepreneurs to motivated their employees to related to
the hard working and to accomplish outcomes of an enterprise.
Opportunity grasper: This will and essential and foremost ability of Brent Hoberman and
Richard Branson. They are optimistic grasper because they acquire entrepreneurs by getting
various possibility in their life.
Both are successful business person in UK and they get various characteristic, traits and
skills from their business operations. B because every quality are necessary as well as essential
to achieve business growth and success. These kinds of skills such as many qualities which can't
be well-educated and learned in a specific time period.
P6 Entrepreneurial personality impact their mind-set and motivation
Motivation and mindset both are best term to acquiring business success and growth in an
essential way. Richard Branson and Brent Hoberman both are successful entrepreneur and they
are having positive mindset which support in increasing the high productivity and profitability
(Rasmussen, 2011). In this form an individual can determine their habits, culture, lifestyle and
other aspects in their life. Both business persons are face difficult situation issues and
complications in their business operations. Entrepreneur personality is very essential part
because it motivate the various person related to the expressing and converting their experience
and knowledge.
It is necessary because it inspire many people to run and operate the start-ups in various
areas. It is duty of successful entrepreneurs to work ethically because there are many peoples
10