Entrepreneurship Report: Ventures, Skills, Traits, and Economic Role

Verified

Added on 2024/06/28

AI Summary

This report provides a comprehensive analysis of entrepreneurial ventures, exploring their types, similarities, and differences. It examines the impact of macro and small businesses on the economy, highlighting the importance of small businesses and startups in fostering social economic growth. The report also delves into the characteristics, traits, and skills of successful entrepreneurs, distinguishing them from other business managers, and discusses the role of entrepreneurial personality on motivation and mindset. Finally, it investigates how background and experience can either hinder or foster entrepreneurship, providing a holistic view of the entrepreneurial landscape. Desklib offers a wealth of similar solved assignments and study tools for students.

ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
Name of the Student
Name of the University
Author note

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser

1
Table of Contents
Introduction......................................................................................................................................2
Task 1: Types of Entrepreneurial Ventures.....................................................................................2
P1. Types of Entrepreneurial Ventures........................................................................................2
P2. Similarities and Differences between Entrepreneurial Ventures...........................................4
Task 2:............................................................................................................................................. 5
P3. Impact of macro and small businesses on economy..............................................................5
P4. Importance of small business and business startups to the growth of the social economy...8
Task 3.............................................................................................................................................10
P5. Characteristics traits and skills of successful entrepreneurs that distinguish from other
business managers..................................................................................................................... 10
P6. Role of entrepreneurial personality on entrepreneurial motivation and mind-set...............11
Task 4:........................................................................................................................................... 13
P7. Role of background and experience hindering or fostering entrepreneurship....................13
Conclusion..................................................................................................................................... 16
References......................................................................................................................................17

2
Introduction
Entrepreneurship has become one of the most important focus of today’s research that helps in
analyzing the types of entrepreneurs and their aim. The paper aims at analyzing the types of
entrepreneurial ventures and similarities and differences between entrepreneurial ventures.
Further, the paper analyzes the impact of small businesses have on the economy and importance
of such businesses in social economic growth. The report further investigates into the mindset of
the entrepreneurs based on traits and skills and the environmental factors that impacts the
experience of entrepreneurship to a great extent.
Task 1: Types of Entrepreneurial Ventures
P1. Types of Entrepreneurial Ventures
Entrepreneurs are defined as a person that has high organizational, management and risk taking
skills in the business by involving itself to high degree of innovation. Entrepreneurship always
seen to emerge from a certain form of context and based on these contexts ventures are seen to
emerge. The type of entrepreneurial ventures that seen to exist in the organization are small
business, new venture, family business, emerging enterprise, social venture, high growth firm
and established company. According to Morris et al. (2018), it is seen that an entrepreneurial
venture refers to an organization where new venture activities are encouraged in a specific
direction. The characteristics of the venture, managerial skills and entrepreneurial needs differs
according to the stages of development of a venture. Thus, based on the stages of development
entrepreneurial ventures are seen to be of two types such as small business venture, large
business venture, scalable startups and social entrepreneurship.
Small business venture is seen that the individual owner or the manager entrepreneur is the heart
of the economic activity. In such type of venture the entrepreneur is seen to perform both

3
managerial and entrepreneurial functions. Such ventures are barely profitable and lacks the scale
to attract high venture capital (Morris et al. 2018). However, the involvement of the management
in every work allows for low cost high quality product development in the organization.
Large business venture are the one with high capitalism in which manager is at the center of the
economic activity. Professional management in such organization allows for acquisition of skills
and technology that help in achieving high risks and innovation in the products. New products
are developed to meet the needs of the customers and advanced technology.
Scalable startup entrepreneurship is the one in which entrepreneur is seen to start the company
with a vision to change the world and receive funding from venture capitalists. They make up
only small portion of all businesses due to high risk capital and low return.
Social entrepreneurship are the one in which entrepreneurs creates products to meet the social
needs. They are usually non-profit, profit or hybrid firms.
There are various types of typologies developed in entrepreneurship and the classification of the
ventures related to some of the typologies in some form or the other. The large business
entrepreneurship is related to the typology developed by Miles and Snow that is an innovator
because such businesses are always seeking innovation in the products to make use of the new
technologies (Vega and Kidwell 2007). Similarly, scalable startup relates to the typology
developed by Smith that is an opportunities entrepreneur because these start up seeks for
continuous opportunities that they can explore and benefit the world in some way. Small scale
ventures related to the entrepreneurship typology developed by Lafuente and Salas that defines
family oriented because such entrepreneurs are usually owned by family (Filion 2000).

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser

4
Moreover, social entrepreneurship is related to the type of Ducheneaut that is a social style of
enterprise creators that focus on social benefits and not individual profits.
P2. Similarities and Differences between Entrepreneurial Ventures
There are various types of similarities and differences seen between the types of entrepreneurial
ventures from various perspective. The large corporate ventures and the scalable startups are
both seen to have similarities that both of them take high risks. This is because both the ventures
believe in innovation of their products that lead to new products or markets. Thus, the risk of
product or market success lies in both the ventures. Both the type of entrepreneurial ventures are
seen to transforming individual ideas into collective actions through chain of uncertainties
(Sakarya Tapan 2001). Thus, they both seek innovations and entrepreneurial activities to gain
competitive advantage over others. However, these two type of venture is also seen to differ on
various grounds such as the extent of risk bearing capabilities are different among both the
ventures. This is because the large corporate entrepreneurship firms are already established and
has to capability to bare the financial loss. However, the scalable startups are new to business
and have limited financial resources to bare the loss. This shows that even though they both take
risks, however the level of risk differs in financial terms (Na Mi 2013). Further, large corporate
entrepreneurs are seen to indulge in high impact innovation by conducting extensive business
research, while scalable startups lacks that approach to the market and limits their innovation
capabilities.
Similarities and differences are also seen between social entrepreneurship and business
entrepreneurship. Both these entrepreneurship ventures aims at fulfilling the need of the market
and earn considerable amount of profit, yet they are different from one another. Social
entrepreneurship is seem to focus beyond generating a profit and aims at creating positive impact

5
on the society (Vega and Kidwell 2007). Thus, such ventures aims at positive social returns and
make these ventures social enterprises. On the other hand, business entrepreneurship is solely
focused on profit and work towards generating high returns in the market. this shows that both
these ventures even though operate for profit, yet the focus of profit differs between them as one
aims at achieving profit along with social returns, while others aims at achieving only profit.
Further, business entrepreneurship focus at organizing raw materials, markets and methods
through new means and ends. They aim at creating economic growth and sought high return on
investment. Whereas, the social entrepreneurs specifically focus on improving society or people.
Task 2:
P3. Impact of macro and small businesses on economy
There are many renowned brands and MNC’s that are based in the UK and have gained well
recognition throughout the globe. But despite the range of larger brands, small and macro
businesses are considered to be the backbone of the UK economy. Back in 2014, there were 5.1
million businesses in the UK alone as registered by the Department for Innovation Business and
Skills. Out of such a huge number, 99% are considered to be small and medium scale businesses.
A vast majority of businesses in the UK employs around 20 employees that accounts for 33% of
the employment with 19% turnover (Fritsch et al. 2015).

6
Figure 1: UK business share by size
(Source: Rhodes, 2018)
In 2018, there were over 5.7 million businesses all across the UK with a down surge of 28,000
than 2017. Out of the number 5 Million (almost 96%) are considered to be macro in size. It was
noted in London that for each 10,000 resident adults there were 1059 business and 749
businesses in the North East. This huge surge has heavily increased the employment chances
reducing the unemployment rates for the country. The government estimation depicts a business
birth number of 382,000 in the financial year of 2018 (Williams and Horodnic, 2016). This is a
huge number that in terms indicates a huge surge in self employment and local business
expansion. As the bigger brands are busy in conquering the global market, the small and macro
businesses are slowly and steadily taking away the local market.

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser

7
Figure 2: SME vs. Self employed
(Source: caunceohara.co.uk, 2019)
According to the graph presented above, it is surveyed that 1 out of every 10 residents in the UK
have their own business or startups. The majority of small and macro business owners are into
real estate followed by service sectors both IT/Non-IT. Construction and real estate remains the
top business niche for SME’s in the UK.
There are several studies and surveys that are made to find the impact of small and macro
businesses over the social and cultural aspects of UK’s society. Not only for the UK but for most
of the developed and developing countries, people are today more energized towards having
implemented their own business idea rather than working under anyone. The rise of small and
macro businesses have made it a culture for the youth to open their own startups and take a step
towards entrepreneurship (Rainnie, 2016). The Office of National Statistics published the figures
for home workers as 4.2 million back in 2015. Out of these workers, 1.5 million people utilized
their home space as a base for starting up their new business idea while the rest have made their

8
locality or home grounds as a source of income generation. With the invention of latest
technologies and increasing investment or funding opportunities, self employed people are more
likely to get benefited in terms of gaining their hold as macro and small business owners.
P4. Importance of small business and business startups to the growth of the social economy
SMEs and startups make up almost 56% of the total business running in the world. They are
crucially important not only to meet the needs of their own business objective but also help in
improving local conditions. Small businesses and startups readily contribute to the development
of the local area and also seemingly contribute to the needs of bigger or larger industries. There
are few common characteristics that are seen among young entrepreneurs that makes the startup
successful. The size of most of the business in the UK today is small where a majority of them
have an employee size of 10-50. The importance of small businesses and startups can be
understood by the range of benefits it brings to the social economy of the place.
● Employment of local workers: Small businesses and startup contributes to the local
economy and social growth by creating employment opportunities for local people. They
are the main source of creating job opportunities for fresher's who cannot make it to
larger corporations due to lack of experience (Moroni et al. 2015). Larger corporations
leverage the presence of local small businesses and startups to outsource certain business
operations and functions that are secondary to the main objective of the corporation. This
forms a balanced work flow environment that supports the development of the small
business and therefore the growth of local people.
● Adapting to fluctuating economic market: Most of the startups and small businesses
and started having the idea of the most recent market conditions and the changing
economic scenario. It is in the habit of many local customers to stay loyal to their local
shops and start ups during an economic crisis. These businesses are also focused to give
better service and attention to their customers during times. Smaller businesses generate
lesser revenue that means the loss during any economic crisis will also be less. Low
overheads allow the small businesses to focus more on the quality of their product and
the range of services to improve the social life of the local people.

9
● Contributing to the development of local government: As more and more number of
startups and small businesses are being opened across cities, the local government is able
to collect more taxes. This is another major benefit where the start ups and small
corporations contribute to the socio economic development. The taxes collected are
utilized by the government to increase the development process, unique projects,
developing the modern shopping sites attracting more customers for these local
businesses (Ribeiro-Sorian and Mas-Verdú, 2015). The taxes collected are also used as a
funding for the local government schools, hospitals, first response people etc.
● Growing into a corporation: It is not always in the fate of small businesses and startups
to stay small. They are a major driver of technology and innovation in the marketplace. In
the competitive run, many startups stand alone to drive success and grow. With the
growth of these small businesses, the local social and economic scenario changes with
better job opportunity, development of the society based on CSR activities, more taxes to
government etc.

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser

10
Task 3
P5. Characteristics traits and skills of successful entrepreneurs that distinguish from other
business managers
Career option in the business world is considered to be far-reaching and there are many such
positions for which an individual has to aspire. There should be understanding of different traits
and characteristics and this will make it easier to decide the correct characteristics of an
entrepreneur. The first trait of a successful entrepreneur that distinguishes him/her from other
business managers is self-discipline. This requires self-control, self-mastery as well as self-
reflection. Secondly, another trait of a successful entrepreneurs that is considered to be unique is
integrity. The most respected as well as valued quality of an entrepreneur is to develop absolute
integrity. The success in becoming an entrepreneur is determined solely by the people who trust
the entrepreneur and thus is willing to work for them (Yashkova et al. 2016). Moreover,
character is another important asset that is based on the amount of integrity of an individual.
The other important trait that is prevalent in a successful entrepreneur is persistence. This is
considered to be an indispensable quality and it is a true measure of belief as well as the success
of an individual. An individual should also possess a clear sense of direction and this is
necessary in order to handle rapid changes in the marketplace. An entrepreneur might be pre-
occupied with different types of problems and thus there should be proper time spent on thinking
and planning so as to get rid of such situations. Moreover, another important trait that must be
possessed by entrepreneurs is being action oriented as well as decisive. This will assist in taking
quick decisions and also getting feedbacks for their actions (Burns 2016). On the other hand, it
has been found that successful entrepreneurs must also try to develop a clear vision for their
company, for themselves as well as for their employees. An entrepreneur is considered to be

11
successful if they have strong work ethics and cultures. There should be excellent
communication skills of an entrepreneur and this will assist to motivate the employees
accordingly. This will assist in the growth of the business and thus it can be said that a successful
entrepreneur is great at instructing other individuals at work (He et al. 2017).
An entrepreneur is never impacted by the defeats encountered and failure is considered to be a
success story for such entrepreneurs. It is the responsibility of an entrepreneur to try again and
again for success until they believe that some things can be managed easily. Further, another
aspect of creativity is the ability of an entrepreneur to handle the relationship between two events
or situations. This will help to come up with the solution of the problem and thus it is possible
through a combination of different things. An entrepreneur also knows that if something is to be
done, it can be done only by them. There are different parameters that are set by an individual
and thus it will ensure that the projects are being handled in the best possible way (Shabbir et al.
2016). Thus, it can be concluded that an entrepreneur must always focus on energy making
business and this will eliminate the distractions, obstacles or goals in order to achieve the final
outcome.
P6. Role of entrepreneurial personality on entrepreneurial motivation and mind-set
The realization of ideas is considered to be imperative for the success of an entrepreneur. There
are different types of restrictions that block the action of the other economic actors. Further, it
can be said that there are different types of personality traits that are assumed to be related to the
motives of the entrepreneurs. The motivational structures, as well as the personality traits, are
considered to be of vital importance and thus it will affect the mind-set of the entrepreneur.
Entrepreneurship is considered to be challenging as well as a rewarding path (Mauer et al. 2017).