Entrepreneurship in Business: Theories, Types, and Importance Analysis

This report provides a comprehensive analysis of entrepreneurship in business, covering key concepts, theories, and the significance of entrepreneurship for individuals, organizations, and the economy. It begins by defining entrepreneurship and highlighting its role in economic progress through innovation and job creation. The report then delves into specific entrepreneurship theories, such as Joseph Schumpeter's innovation theory and McClelland's need for achievement theory, using Richard Branson as a case study to illustrate these concepts. Furthermore, the report examines different types of enterprises, including sole traders, partnerships, and limited companies, along with various entrepreneurship styles like innovators, revolutionaries, and opportunists. Finally, it emphasizes the importance of entrepreneurship in driving innovation, creating job opportunities, and fostering financial wealth and freedom.

Entrepreneurship in
Business

Table of Contents
Introduction......................................................................................................................................3
1) knowledge and understanding about
concepts and theories of entrepreneurship......................................................................................3
2. Analyse different types of enterprise..................................................................................5
3. Identify and analyse the importance of entrepreneurship to
the individual, organisation and the economy at large..........................................................7
Conclusion.....................................................................................................................................10
REFERNCES:................................................................................................................................11
Books and Journals:..............................................................................................................11

Introduction
Entrepreneur is a individual who is risk bearer and is working under uncertainty. Entrepreneur is
a person who is willing to create a business by bearing of the risk and also enjoying of the
towards. It is a basic process of setting a business that is known as entrepreneurship.
Entrepreneur is mainly seen as a innovator who is sourcing new ideas, services and goods along
with some specific business and procedures for achievement of higher business success.
Present report is based on developing a detailed understand of the theories and concepts of
entrepreneurship(Kozubíková and et.al., 2017). Further there is also analysis of the different
types of enterprise that are launched by entrepreneur while treating of their venture. There are
some of the specific legal implication and structure that is to be compulsory followed by
entrepreneur while launching each such venture. Apart from this there is also analysis of the
importance of entrepreneurship to
the individual, organisation and the economy at large.
Background of entrepreneur: Richard Branson has launched the virgin records in the year
1970 that is eventually building business in multinational virgin group. The entrepreneurial
project stared in the music industry and further expanded across various sectors that include
space tourism venture virgin galactic. Branson has been suffering with dyslexia and had a hard
time with various educational institutions. He dropped at the age of 16 and further the main focus
was to expand the business venture.
1) knowledge and understanding about
concepts and theories of entrepreneurship.
Entrepreneurial function implies the assessments, discovery and exploitation of opportunities, it
is related with development of new products, services or further production process that is started
by a individual. It is associated with development of organisational forms and new strategies,
new markets for various inputs and product that does not previously exist (Chienwattanasook
and Jermsittiparsert, 2019).
Entrepreneurship is the entrepreneurial function that is related with discovery of opportunity and
further there is creation of new economic activities via creation of new organisations.
Entrepreneurs central activity is associated with business creation that studies at group or
individual level that is related with psychological aspects, social education variables and the

background of organisations at the environmental levels that can enable the process of business
development.
Entrepreneurship is a essential element that is very important for economic progress as it
manifests the fundamental importance in different ways that is identification, assessment and
exploiting of various business opportunities,. In present changing scenario entrepreneurship is
deriving the economy forwards by use of innovation, competence, job creation and improvement
of overall well being in the society.
Theory of entrepreneurship: As per Joseph A schumepter who is the profounder of innovation
theory of entrepreneurship. The main assumptions are associated with the theory include that
entrepreneur is born with desire to establish the own industry, desire to do something new and
taking pleasure of remaining of experiences and creativity of skills for various activities and
tasks (Lee, 2019). The main objective of entrepreneur is to earn profitability that is done by
searching for new machinery, new raw materials, production of new products, new workers and
offering high customer satisfaction.
In context of present select entrepreneur that is Richard Branson who is a births magnate, author
and investor founded the virgin group and is controlling approx 400 organisation that is part of
different fields. The main aim of this entrepreneur is to become entrepreneur at young age his
first business venture was stared at the age of 16 through magazine called student. In 1970 there
was setting up of mail order for the purpose of recording business. Further there was opening of
chain of record stores. After that there was a rapid growth that resulted into growth of virgin
group.
The main focus of this theory is to make distinction between a inventor and innovator, the
investor is discovering the new materials and new methods. But in case of innovator is the one
who is applying the discoveries and inventions for making new combinations. These new
combinations are focussed on production of better goods and services that can yield profitability
and satisfaction (Balachandra, 2019)). In present scenario shumpeter, Branson is the innovator as
he always emphasised on innovate functions. He always ignored all the aspects of risk taking and
organising aspects. The main focus was on achieving the required success through innovation in
the products and services.
Theory of need of achievement: It is a innovation theory that is associated with the assumption
that desire of high achievement is related with obtaining of specific achievements. It is mainly

related with making of best performance. As per the theory of McClellan it can be said that
entrepreneur must posses adequate capacity of imaginations, thinking and further development of
new combinations. It is related with the feeling of achievement that is inculcated in a
entrepreneur which is present since the very beginning and is focussed on becoming a successful
entrepreneur.
The theory was mainly focussed on the need of achievement that is the main focus was on state
for adventure and for the humanitarian work that was his main priority in that situation. There
have been failed attempts to group that lead to more motivation to achieve the success. The main
focus was on launching of origin records in the initial time period that is ranging between 1972-
1980 that is using money earned from the record store (Martínez, Bañón,and Laviada, 2019).
The name “virgin” was suffered by early employees. After that in year 1981-1987 there was
successful entry in the airline industry where his highlight was once cancel that further motivated
him to have his won chartered plane.
In year 1988-2000, for the purpose of keeping the company float Branson sold the virgin label to
EMI for a amount of 500 million pounds.
As per william J. Baumol, economic theories have failed to offer a satisfactory analysis of the
role of entrepreneurship and the supply. There are different assumptions of entrepreneurship that
is focussing on three major aspects. It includes nature of opportunities, nature of entrepreneurs &
the nature of decision making framework in which a particular entrepreneur is functioning.
2. Analyse different types of enterprise.
There are different types of enterprises that is distinguished based on the legal ownership. That
includes different types of enterprises such as private enterprise, sole traders and partisanships.
Sole traders: Sole traders are the life blood of the market economy. They are common in
retailing & local services that includes corners hops, catering and plumbing. With the local
services in demand social traders are owning the assets of business, bearing of all the risks,
retailing of profits and making all the important business decisions (McVey, 2018).
Partnerships: Partnerships are manager and owned by various small number of partners which
can specialize in specific business aspects. Decisions are to be taken jointly in these types of
business where risks and rewards are properly spread between partners who may posses equal
risks. Some of the partners may also have limited liability for debts that are incurred for business.

Companies: Limited companies are the ones that are legally incorporated in organisation that
posses legal identify and are owned by various shareholders who posses limited liability for
organisations debts. Unlike ordinary partnerships, sole traders, joint stock companies have to be
set up to take the advantage of limited liability principle.
In case of limited companies shareholders are appointing directors for making all the key
business decisions, directors are also regarded as shareholders, directors have to take decision
collectivity as part of members of the board of directors.
Public limited companies: Like private limited companies, public limited companies are also
the ones that are legally incorporated and owned by the shareholders who posses limited liability
for the organisations debts, difference that public organisations are allowed to sell their shares to
general public.
Apart from this there are also various other types of entrepreneurs that includes small business
entrepreneurs, investor entrepreneurs, technology entrepreneurs, internal entrepreneurs and
online entrepreneurs.
Small business entrepreneurs: Richard Branson is observed as a small business entrepreneur
who is different from other small business owners as per the legal status of this brand they are
general incorporating the business and separating themself as sole proprietorship. Richard
Branson has been involved in assuming and taking of risks (Şahin, Karadağ and Tuncer, 2019).
They are focussing on development of broader skill sets that is leading towards high level of
thinking and dealing with complex interpersonal communication and analytical reasoning.
Virgin groups is a British multinational venture capital conglomerate that was started by Richard
Branson, the data of incorporation and is trusted as holding company, it includes trading
activities and business activities. Virgin group of organisation is having a complex structure that
includes elements if generic conglomerate (Douglas, 2020). There are various other types of
brands that are part of virgin group that includes virgin media and virgin records that is different
types of business sectors.
Entrepreneurship styles: There are different entrepreneurship styles that is adopted by
particular entrepreneur as per the way a particular business is launched.
Innovator: innovator who is working towards using of the potential to transform the entire
industry with novel ideas, the main focus was on using of extensive knowledgable of the industry
that includes and focuses on fulfilment of customer needs.

Revolutionaries: It includes those type of enterprisers who are opportunity entrepreneur as they
posses technical backgrounds and are having focus on present business practices.
Opportunists: These entrepreneurs includes working towards identification of a business issue
or a technical problem and they are further working towards devising of a winning solution to
the problem. These tend to posses a business background rather than a technical one by focussing
on short term goals and losing insights of the larger picture.
Such as in present scenario Richard Branson is a revolutionary type of entrepreneur who is
having focus on complete transforming the present business practises. He entered into various
different business sectors by using of various product segments and industries. That includes
various business segments such as space travel, virgin media, charitable influence, healthcare,
hotels. All these business segments were approached for the purpose of expanding of the
business functions. Branson has been part of many failed business operations also that includes
virgin cars, virgin cola, virgin brides, virgin clothing and virgin publishing. He always had a
optimistic view pint to deal with the failure.
3. Identify and analyse the importance of entrepreneurship to
the individual, organisation and the economy at large.
Economies are the powered by innovation, innovation is derived from the aspects of forwards
thinking if individuality that posses the skills, drive turning the vision in reality. The main focus
in entrepreneur is extending beyond the organisation to focus on broader development of
communities (Sharahiley, 2020) . There are spur transformational that is leading towards creation
of entirely new markets and further building up of resilient communities.
Importance of entrepreneurship for individuals:
 Entrepreneurship is very important for individual as it helps in offering financial wealth
and freedom. Entrepreneurship is a challenge that can help in the process of dealing with
thousand of personal business problems as per their abilities and skill sets.
 Creation of higher profitability: entrepreneurs are working towards having high
amount of profits that can help in the process of having new sources of revenue and
higher profitability. They can earn limitless profits that is not possible through other
means of earning.
Importance of entrepreneurship for organisation:

 Entrepreneurship is related to advent of new venture that is to materialise the innovative
ideas of entrepreneurs.
 There is contribution for creation of new job opportunities, entrepreneurs are working
towards generation of large portion of employment that helps in having supply of talented
employees. Many new entrepreneurial venture play a very important part in the process
of supplying of experienced and competent labour to the economy or to the large
industries.
 Promotes research and development: entrepreneurship is a process of innovation and it
helps in the process of having proper innovation base. It offers funds for research and
development with various research institutions and universities.,. It leads towards having
general development and integration of research taking place in the economy.
Entrepreneurship is related with pioneering zeal that helps in organising events in the
civilisation, it is related with having propensity of every arena of human life
technological, economic and cultural,
Importance of entrepreneurship for economy at large:
Entrepreneurship also has a positive impact on the functioning of overall economy at large.
Some of the benefits in terms of political and economic integration also posses a impact on the
economy at large: Innovation Entrepreneurship is the incubator of the innovation. It is going beyond
discovery and focuses on commercialisation and implementation of innovations. It is
associate with offering of new products, new ventures, new market, quality of products
that helps in the process of enhancing the present range of gross domestic product in the
economy of a country (Lee-Ross, 2017). Impact on community development: Enterprises and the entrepreneurship is a basic
aspects that is also helping in the process of having community development. Community
is regarded as the employment base that is diversified amount various small
entrepreneurial firms. The main focus is on promotion of abundant retail facilities, high
level of home-ownership, sanitation standards, high expenditure in recreation, eduction,
religious activities. It helps in having high quality of community life and higher stability. Political and economic integration: Entrepreneurship is very helpful in the process of
having proper integration as of there is feeling of alienated or disposed then it is corrected

by application of entrepreneurship. In this women, migrants and minorities are saferl
integrated in entrepreneurship that helps in the development of a composed plural
society.
 Spawns entrepreneurship: It is the aspects where a individual can focus on starting of a
new idea that can help in the process pd having a giant enterprise. It leads towards rapid
de-industrialisation process. There is generation of lot of employment opportunities
through such entrepreneurial process that is developed in the economy of a country.

Conclusion
It is conclude from the above made analysis that entrepreneurship is a basic process that
is associated with analysing various factors that are related with improving the standards of
living and further creation of wealth. It is associated with extraction and creation of value,. It
views as change that is entailing of risk beyond encountering or staring of business that is
associativity with values. Entrepreneur is associated with the ability to translate the inventions
and technologies in specific product and services. It is described as the process of establishing of
new business and organisations. There are any different risks that are associated and have to be
dealt in order to maximise its long term value for smooth functioning of organisations and
economy as a whole.

REFERNCES:
Books and Journals:
Kozubíková and et.al., 2017. Important characteristics of an entrepreneur in relation to risk
taking: Czech Republic case study. Journal of International Studies.
Chienwattanasook, K. and Jermsittiparsert, K., 2019. Impact of entrepreneur education on
entrepreneurial self-employment: a study from Thailand. Polish Journal of Management
Studies, 19.
Lee, B., 2019. Human capital and labor: the effect of entrepreneur characteristics on venture
success. International Journal of Entrepreneurial Behavior & Research.
Balachandra, L., 2019. The improvisational entrepreneur: Improvisation training in
entrepreneurship education. Journal of Small Business Management, 57, pp.60-77.
Martínez, C.N., Bañón, A.R. and Laviada, A.F., 2019. Social Entrepreneur: Same or Different
from the rest?. VOLUNTAS: International Journal of Voluntary and Nonprofit
Organizations, 30(3), pp.443-459.
McVey, R., 2018. The materialization of the Southeast Asian entrepreneur (pp. 7-34). Cornell
University Press.
Şahin, F., Karadağ, H. and Tuncer, B., 2019. Big five personality traits, entrepreneurial self-
efficacy and entrepreneurial intention: A configurational approach. International Journal
of Entrepreneurial Behavior & Research.
Lee-Ross, D., 2017. An examination of the entrepreneurial intent of MBA students in Australia
using the entrepreneurial intention questionnaire. Journal of Management Development.
Sharahiley, S.M., 2020. Examining entrepreneurial intention of the Saudi Arabia’s university
students: Analyzing alternative integrated research model of TPB and EEM. Global
Journal of Flexible Systems Management, 21(1), pp.67-84.
Douglas, E.J., 2020. Entrepreneurial intention: Past, present, and future research. Edward Elgar
Publishing.