Report on Entrepreneurship: Unit 9, Business Ventures and Skills

This report provides a comprehensive overview of entrepreneurship, covering various types of entrepreneurial ventures, including small businesses, scalable startups, and large company entrepreneurship. It delves into the typologies of entrepreneurship, such as social, serial, lifestyle, and solo entrepreneurship, highlighting their similarities and differences. The report presents statistical data illustrating the impact of micro and small businesses, particularly in the UK, showcasing their contribution to employment and economic growth. Furthermore, it examines the characteristics, traits, and skills of successful entrepreneurs, exploring the role of entrepreneurial motivation and mindset. The report also considers how background and experience can influence entrepreneurial success, providing a well-rounded analysis of the entrepreneurial landscape.

UNIT-9
ENTREPRENEURSHIP

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different type of entrepreneurial venture and typology of entrepreneurship........................1
P2 Similarities and difference between entrepreneurial ventures...............................................3
TASK 2............................................................................................................................................4
P3 Statistics for illustrating micro and small business and their impact.....................................4
P4 Importance of small businesses and business start –ups........................................................8
TASK 3............................................................................................................................................9
P5 Characteristics, traits and skills of successful entrepreneurs.................................................9
P6 Entrepreneurial motivation and mindset..............................................................................10
TASK 4..........................................................................................................................................12
P7 Background and experience can hinder or foster entrepreneurship.....................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Entrepreneurship is a process which helps to design, launch and run a business at initial
stages when the business is small. The person who starts business is known as an entrepreneur.
He takes up financial risk in hope to earn profits in the future. An entrepreneur is a person who
has an idea in his mind and a strong belief to be successful. They have willingness to work.
Entrepreneur’s innovative ideas and mindsets makes them different from others. To become a
winner in the business world, he must adopt changes, and have innovative ideas and self-
confidence (Glaeser, Kerr and Kerr, 2015).
This report discusses about different types of entrepreneurial ventures and their
typologies and similarities and differences between these ventures. It will also discuss about
small businesses and startup companies. This research will also assist in determining
characteristics, traits and skills of some entrepreneurs.
TASK 1
P1 Different types of entrepreneurial venture and typology of entrepreneurship
Types of entrepreneurial ventures are: -
Small business entrepreneurship
. There are around 5 million small set up businesses. They include hairdresser, grocery
stores, plumbers, carpenters, electricians etc. Small entrepreneur is the one who runs his/her own
business by hiring local people or by employing people from family. Most of them are successful
as well (Bailetti, 2012). To start their business on small scale, they take up loans from banks,
outsiders or anyone from family. The main objective is to earn much so that they can fulfill
requirements of their family.
Scalable startup entrepreneurship
Scalable businesses are those in which person starts their business with a vision. Their
vision is to change world from day one. They set up their start-up by attracting crazy investors
known as venture capitalists. They start their business from outside capital. They employ only
those who are the best and the brightest. The driving force for scalable business is to search for a
business model that is measurable, repeatable and has some effects. They continuously search for
venture capitalists to make investments.
Large company entrepreneurship
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They are corporate enterprises and have finite cycles. Most of the successful
entrepreneurs are those who change the existing business with their innovative ideas and
transformation techniques. Generally, those entrepreneurs are included here who have an ability
to generate new ideas, create differentiated products to attract new customers, development of
products which are different from competitors. They have finite number of life cycles. These
type of entrepreneurs take risks and make new innovations. They try to grab the available
opportunities for their growth and development. It is a combination of multiple activities of
different participants.
Typology of entrepreneurship
Social-able entrepreneurship
They focus on creation of those products and services which solve the social needs of
people. Their aim is to make world a place, where there is no poverty and everyone is treated
equally (Drucker, 2014). They do not focus on capturing the market share and create wealth for
themselves but aim to create finance for people who are financially weak. They try to make
world an improvised place to live in. Generally, profits are earned by company that is reinvested
rather than distributing among shareholders.
Serial entrepreneur
They set up business and try to bring growth and development in which they can move
further by selling as per a per-determined strategy to exit. They hand over this business to some
other people who further continue same business with few changes and investment in it. They
start with another venture with a view to repeat same process with that business.
Lifestyle entrepreneur
They are the passionate entrepreneur who do what they love most. They are more focused
and dedicated. They do not set up any business for profit motive but start it because they love it.
Generally preserving time for children, friends and family, doing it as their hobby or interest
could be included to start a business.
Solo entrepreneurs
It is a one-man business where a single person handles all the operations and production
activity of business. He manages all aspects and management. He has power to do multiple tasks.
They alone can bring growth to organization.
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P2. Similarities and differences between entrepreneurial ventures
Similarities
Basis Small entrepreneurship Social entrepreneurship
Structure A small business is the one
which is not large in presence
but small in structure and size.
Their size and structure is
small and works mainly for
development of society and its
welfare.
Risk They take risk and face huge
problems in initial stages of
business to obtain profitability.
They also take upon huge risk
before starting a business.
There primary aim is welfare
of society which can be
achieved by focusing on
business profits. They focus on
transforming the world to a
better place to live. It may
include profit, nonprofit or
hybrid organizations.
Innovation These type of owners have an
idea in their mind as to what
they have to do in order to
achieve success.
They are innovators who
concentrate on creation of
services and products which
helps to solve social needs and
problems. They have a vision
to make profits to solve
requirements of people.
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Example Generally, businessmen like
grocery shops, local shops,
plumbers, electricians,
carpenters are engaged in these
type of businesses (Ma, Huang
and Shenkar, 2011).
This includes people who may
or may not operate a business
particularly but aim at removal
of cruelty from the world.
They safeguard people
suffering from sexual abuse.
Aim They aim to meet needs and
wants of their family.
They aim to meet needs and
wants of needy people and
remove poverty.
Basis Scalable entrepreneurship Large entrepreneurship
Size and structure They work on a large scale.
They start their business with
capital which they raised from
outsiders.
These are large corporation
who started their business with
huge amount of cash.
Capital These types invest high capital
in their business. They do not
invest their own amount but
raise capital from outsiders.
These outsiders are crazy
investors known as venture
capitalist.
They involve large amount of
investment in their business.
These entrepreneurs have new
ideas and business
opportunities within a firm that
is established and leads to new
business startup and involves
organizations profits
increment.
Risk and reward They involve high risk in their
business as they raise capital
from outsiders. They work on
a policy that risk is part of
business reward. Higher will
be risk higher will be reward.
Risk is part of an entrepreneur.
They require huge funding and
proper management into their
business.
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Differences between entrepreneurial ventures
Basis Large Enterprise Small Enterprise
No. of employees Employees large number of
talented employees who are
qualified and skillful.
They employ small number of people
who may or may not be skillful.
Rate of
satisfaction
There is low level of satisfaction
with the performance and work.
There lies a high rate of satisfaction in
work and performance.
Flow of
information
There is a long chain of
communication from higher to
lower authority.
Information flows from few levels
which help to take quick decisions.
Intensive They are capital intensive. They are labor intensive.
Basis Scalable Enterprise Social Enterprise
Goal They aim to capture the market in
secure manner.
They aim to change the entire world
with their innovative ideas.
Objective To build business models and earn
profits.
They aim to earn for social cause and
fin solution to problems (Kirzner,
2015).
Motive To attract investors for investment
and earn profits.
Primary motive is achievement of
social causes and secondary is to earn
profit to meet the social cause.
Link to social
problems
No link They have direct link.
Capital Gets capital from crazy investors. They get donation and unpredictable
financing from people.
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TASK 2
P3. Statistics for illustrating micro and small business and their impact
Every micro business is a subset of small business that is based on number of people
employed in the company. A micro business is the one in which not more than six people are
employed. Every sole proprietor who operates a business without employing people then it is a
micro business. A small business is one which have 500 or less than employees engaged.
The below statistics shows result of a survey conducted in United Kingdom of small and medium
enterprises.
The above graph shows that SME’s have expanded in the employment sector’s turnover
and businesses. They have contributed so much to increase employment of any country. They
have accounted for 99.9% to all private sector business. Employment sector has expanded with
coming of small and micro businesses (Scarborough, 2016). They provide 60% of employment
in UK. Annual turnover amounts for £1.8 trillion in UK.
The overall population is divided into 3 forms which are sole proprietor (60%), company
(32%) and partnership (8%). Over the years, there has been 3.3 million proprietorships, 1.8
million companies have come over and around 420,000 are engaged in partnership business.
SME accounts for around 99% of business every year.
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The above graph shows statistics of business and companies with and without employees
(Business population estimates for the UK and regions, 2016). Sole proprietorship is type of
business comprise of 3.3 million and by far, the most common form of business is adopted by
people of UK. 265000 are employed in sole trader, 935,000 people are employers in companies
and remain in partnerships.
The above graph shows UK business private sector population. There has been a growth in total
business population. The business population increased by 2.0 million. 3% of average growth
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was seen in business population. The highest increase was between 2013 and 2014. In 2004 and
2005, very little growth was noted.
The above graph is prepared to show that business has been expanded in various fields
which has enhanced the overall growth of economy. SME’s are found growing in every field.
They have expanded in numbers, and have provided employment and also contributed a big
share in country’s development. SME’s provide employment in various sectors.
From the graph, it can be seen that they have provided employment in construction sector.
They have more than 34% of share in auto mobile sector. Only few small and micro businesses
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are employed in mining, quarrying and utilities. In education sector, number is around 6.5%,
where the employment contribution is around 3.5% and turnover is 2%. SME’s are also engaged
in agriculture, manufacturing, information & communication, real estate activities, health and
entertainment and many other services.
P4. Importance of small businesses and business start –ups
Small business is essential for success of economy. After the with drawl of UK from
European union small entrepreneurs and star-ups has increased. They are among successful
business stories for future. They may not generate profits as much as large corporation but help
in meeting our daily requirements.
Contribution
Small businesses are those in which there are less than 500 employees working. Though
small business has small size and investments, but provide around 60-70% of new jobs which is
a huge contribution towards the economy. The revenue generated by these firms are low.
Growth in economy
Some ways in which they contribute to growth of economy by providing financial
freedom, encouraging new and innovative ideas and creating employment opportunities. They
attract talent who make new products with existing resources. Many large organizations
depended on small organizations for raw materials or any other material for completion of their
production process (Morris, 2015). They have expanded in auto mobile sector by 34%. There has
been a growth in construction business of around 15% to 20%. Small enterprises are also
entering into real estate and financing business and have a share of 0 to 5% in economy.
Adapt changes
It is easy for them to adapt changes quickly. Since they have less investment and low
revenue generation, so at the time of economic crises, they have less to lose than that of large
corporation. Small business is customer oriented. Customers also remained connected with them
even at time of recession.
A small idea can change the world. Almost, all businesses start with few amounts of investments
and then become major competition in market.
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Importance of start-up business
A start-up is any business which can be started from home or from any other place,
whether from a developed or non-developed country. A person starting start-up business will
apply many business models in the market and see which model fits the best to start business.
They never give up and keeps on trying with new processes and models.
These are initial stages where people are ready to work hard with their forward-looking
ideas and grab a market share. They are designed with innovative ideas to grow fast and provide
employment opportunities to people (Scarborough, 2016). They are major contributors in
increasing the economic level of any country and are necessary for expansion and revenue
generation.
In US, many new start-ups were built up which provide ample opportunities to people. They
hire right members to complete the mission and vision of company. They contribute huge
amount of profit to economy. The government plays an important role in bringing up start-ups.
Start-ups invest for social cause, development of country and also provide financial support.
TASK 3
P5. Characteristics, traits and skills of successful entrepreneurs
A strong passion and commitment helps to become successful entrepreneur. One's inner
drive helps an entrepreneur to succeed.
 He is never afraid about failure. He sees failure as a positive experience and learn from it.
 He learns from a mentor and their experiences.
 He keeps on learning and adapts changes. And when you stop other will take over your
position.
 An entrepreneur must be flexible to adapt the changing technologies and environment.
He always seeks for new opportunities.
 He tries to maintain long term business relationship.
 He believes to maintain relationship with old customers because it is easy to grab their
attention instead of making new customers.
 A single person cannot become successful lonely. He looks out for people with same
mission and vision so that they can work as a team.
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Steve Jobs
There were many characteristics and traits which made Steve Jobs into a successful
entrepreneur. He was the founder of Apple. He had a power of creativity and had imagined of
what future will look like. He innovated the entire industry with his mind and ideas. He gave
consumers what they wanted and also invented things which people never thought about what
they would desire.
 His strong vision for Apple was to invent simple user interface and different design
which would attract people of all age.
 He possessed good leadership skills which became an inspiration for many employees
and increased his respect in many other competitors and partners. When Apple was
facing financial crisis, Steve Jobs knew how he can overcome them.
 He was among the greatest thinkers. He was so passionate about his job and also revealed
that only passion lets person moving. Lack of passion means person without passion and
will quit in adverse situations.
 He created a beyond imaginative atmosphere which helped in motivating employees to
complete his mission.
 He was a survivor of bad times. Even though he was suffering from disease, he went to
attend Board Meetings and believed to follow what his heart and intuitions said.
 He was a legend in developing and designing products which were liked by customers.
Bill Gates
He is amongst the richest person on the earth. He developed his first ever computer
program at the age of 13 while playing tic-tac-toe.
Personality traits of Bill Gates are: -
 He is a philanthropist. He along with his other friends have decided to donate half of their
wealth in charity.
 He always thinks of future. When he was dropped out from college, he had a vision and
what impact will be there on future.
 He had faced a huge competition from many companies like Apple but never took step
back. He fought to maintain his position.
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 He always listens to his inner voice and think if they are right. He believes in reading and
think that this will open up his mind and explore new things. He reads approximately a
book in a week.
 He has a great power to manage his time and work. He believes in his ideas and has
power to tolerate high risk.
P6. Entrepreneurial motivation and mind-set
To become an entrepreneur, there are some entrepreneurial motivation and mindsets.
Entrepreneurship is a challenging path (Antoncic and et.al., 2015). An entrepreneur is a person
who has an ability to differentiate between what is good and bad and has an ability to to
transform his innovative ideas into product or process to come up with something new.
In order to transform his ideas, he must be coordinated with his employees and involve
them in decision making process. An entrepreneur must be autonomous which is an important
motivational factor. Profit is not a tool of motivation for them but making their dreams turn into
reality and successful implementation of their innovative ideas is their prime motivation. Though
money is not a motivational factor but profit is necessary for implementation of an idea.
There are some common mindsets and motivation that Steve Jobs and Bill Gates and
every other entrepreneur have them in common (Heimonen, T. and Virtanen, M., 2012).
 Curiosity- This is the most common thing found in every entrepreneur. Being calm and
active is the foremost thing. He finds out how to manage things and apply them to work.
They learn from others and look new ways to learn from others.
 Commitment- Passion will start any business but commitment will help to take that
business to a new level. Mostly, people have power to take risks and accept rejection. He
should not be hesitated in difficult situations and never step back in situation of failures.
He should take failure as lesson and fix flaws by implementing his ideas.
 Optimism- Successful entrepreneur must have an optimistic mindset which means that
he must always see positive outcomes of any situation.
 Flexibility- An entrepreneur must be flexible to solve problems and face unexpected
demands and challenges keeping the game on. He must keep plans to solve unexpected
conditions and how he could come out from those challenges.
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 Ownership- They have high internal control and believe in themselves. They trust their
inner abilities to determine success. There actions, decisions and responses will make
them successful or break them.
 Leadership- An effective leader is the one who guides and motivates his team members.
When he can clearly communicate the vision to them, they will help in achieving those
goals and objectives. Involving team in decision making also helps in achievement of
vision.
 Connection- They must be energetic and have a strong social network. They must start
with an idea to grow and must make connection with people who help them improve their
idea and motivate them to explore and grow.
 Self-respect- Take breaks from work and give time to yourself. Do things which makes
you happy. Always stay inspired and learn from your inspirations.
TASK 4
P7. Background and experience can hinder or foster entrepreneurship
Entrepreneur has been a great approach for growth and job creation. Many countries have
started adopting policies to encourage entrepreneurs. Many programs are being conducted for
their growth and development. Even many financial institutions support these businesses and
provide financial support at low interest rates (Renko, Kroeck and Bullough, 2012).
When resources are available easily then it becomes easy to start any business. But in
most of the countries resources are not available easily. Many schools now-a-days provide
coaching and conduct counseling programs for children to know about their future goals and how
they can achieve those goals. Lack of transportation facility, lack of security lack of utilities, lack
of people (if there are no customers to use product or service then it is of no use). Government
interventions also spoils a startup. Most of the entrepreneurs are not made up by studying in
school but they learnt it from experimenting.
There are many entrepreneurs who came and went away. Some of them create history
and among them are Bill Gates and Steve Jobs who are considered in the list of top
entrepreneurs. Steve Jobs, computer designer and corporate executive is a co-founder of Apple.
Bill Gates is founder of Microsoft.
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Steve Jobs was born on February 24, 1955, in San Francisco, California. He was adopted
by Paul and Clara Jobs. As a child, he used to swim but only as a sport. He started earning at an
early age. He was interested in working with gadgets and electronics rather than sports. He used
to spend time in working in a garage workshop of Hewlett-Packard, an electronics manufacturer.
There is use to reconstruct electronics, which increased his interest in these jobs and even
increased his confidence (Storey, 2016). He also dropped out from college in the first semester
and started working on computers. He joined a club of HomeBrew Computer to learn more about
computers. He with his friend Wozniak designed a computer. They also formed their own start-
up where they sold micro bus and calculators of their names. They started selling computers
which were small. They also designed personal computers.
Bill Gates was born to William H. Gates and Mary Maxwell. He was born on 28th
October 1955. He was born in an upper middle class family. His family members were warm and
close and always encouraged to be competitive and different from others. He did his schooling
from Lakeside school where he developed his interest in computers. At age of 13, he wrote his
first software program (Barney & Hesterly, 2010). He was always on a merit list since his school
days. He was a brilliant child. He is known for introducing Microsoft which is the most valuable
company and the largest software maker company. He dropped out from college in order to
pursue his passion for computers and united with one of his friend Paul Allen, to form Microsoft.
CONCLUSION
From the above research, it can be concluded that entrepreneurs are people who takes risk
to become successful. They follow their dreams and are passionate to achieve their goals and aim
with their innovative ideas. There had been a discussion about different types of entrepreneurship
and their similarities and differences between them. There are different characteristics and traits
which an entrepreneur has such as no fear from failure, risk taker and learn new things from
surroundings. Small and micro business have been also contributing a lot in the country’s
economy and have been broadly discussed.
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REFERENCES
Books and Journals
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Antoncic, B. and et.al., 2015. The Big Five Personality–Entrepreneurship Relationship: Evidence
from S lovenia. Journal of Small Business Management. 53(3). pp.819-841
Bailetti, T., 2012. Technology entrepreneurship: overview, definition, and distinctive
aspects. Technology Innovation Management Review. 2(2)
Barney, J.B. & Hesterly, W.S., (2010). Strategic management & competitive advantage:
Concepts. Englewood Cliffs, NJ: Prentice hall.
Glaeser, E.L., Kerr, S.P. and Kerr, W.R., 2015. Entrepreneurship and urban growth: An empirical
assessment with historical mines. Review of Economics and Statistics. 97(2), pp.498-
520.
Heimonen, T. and Virtanen, M., 2012. Characteristics of successful gazelles–problems in
approaches and methods of analysing the data. International Journal of Business and
Globalisation. 9(1). pp.12-41.
Kirzner, I.M., 2015. Competition and entrepreneurship. University of Chicago press.
Ma, R., Huang, Y.C. and Shenkar, O., 2011. Social networks & opportunity recognition: A
cultural comparison between Taiwan & the United States. Strategic Management
Journal. 32(11). pp.1183-1205.
Morris, M.H., 2015. Entrepreneurship as experience. John Wiley & Sons, Ltd.
Renko, M., Kroeck, K.G. and Bullough, A., 2012. Expectancy theory and nascent
entrepreneurship. Small Business Economics. 39(3). pp.667-684.
Scarborough, N.M., 2016. Essentials of entrepreneurship and small business management.
Pearson.
Scarborough, N.M., 2016. Essentials of entrepreneurship and small business management.
Pearson.
Steiner, G.A., 2010. Strategic planning. Simon & Schuster.
Storey, D.J. ed., 2016. Entrepreneurship and new firm. Routledge.
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Online
Business population estimates for the UK and regions, 2016 [Online] Available
through:<https://www.bl.uk/collection-items/business-population-estimates-for-the-uk-
and-regions-2016-statistical-release>
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