Examining the Role of External Factors in Entrepreneurship

This report provides a comprehensive analysis of key aspects related to entrepreneurial skills and management practices in organizational settings. It defines various types of entrepreneurship and explores the impact of small businesses on economic development. The significance of start-ups and social economy growth is discussed alongside human resource management practices within organizations. Furthermore, it evaluates how external factors influence entrepreneurship, emphasizing contextual challenges and future research directions. References from prominent journals and books support this analytical framework.

ENTREPRENEURSHIP AND
SMALL BUSINESS MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different type of entrepreneurial ventures and relation to typology of entrepreneurship.....1
P2 the similarities and differences between entrepreneurial ventures........................................3
TASK 2............................................................................................................................................4
P3 Interpret and assess relevant data and statistics to illustrate how micro and small business
impact..........................................................................................................................................4
P4 Importance of small business and business start-ups to growth of social economy..............5
TASK 3............................................................................................................................................6
P5 Characteristics traits and skills of successful entrepreneurs that differentiae business
managers.....................................................................................................................................6
P6 How aspects of the entrepreneurial aspects personality reflect entrepreneurial motivation..7
TASK 4............................................................................................................................................8
P7 Using relevant examples how background and experience can hinder or foste
entrepreneurship..........................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Entrepreneurship is considered as a skill of analysing the idea of establishing an
organisation and make it reliable and practical in current commercial and organisational
environment. It is basically known as an an effective approach of tackling the risk and flow of
challenges in organisational context to make effective control and analysing the essential aspects
related to business operations and management. This mainly associated with analysing the
possible business situations to expand or set up new entity. the relevant sources which remain
associated with evaluation of entrepreneurs skills.
This report refers the type of ventures which are explained with similarities and
differences. Relevant data are analysed with statistical analysis of small business and impact on
economy. Importance of small business start-ups and the growth of social economy also defined
in this context. Characteristics traits and the skills of successful business also defined in this
context. Entrepreneurial aspects personality reflection and motivation and mindset also defined
in this context. Hinder or foster entrepreneurship also defined in this context.
TASK 1
P1 Different type of entrepreneurial ventures and relation to typology of entrepreneurship
The concept of "Business enterprise" alludes to the way toward beginning and running
new association which is at first little and the person who structures or makes it is usually known
as Entrepreneur. With their innovative and novel thoughts, they build up new business wander
with a point of viably meeting the necessity of overall population. There are different
entrepreneurial typologies through which a business person can produce greatest benefit are
examined below in depth:
Social Entrepreneurs: The main focus of social entrepreneurs is on improving the
economic condition of the country and promoting the interest and welfare of society and its
members. Such types of entrepreneurs drive social transformation and innovation in various
fields such as human rights, workers’ rights, environment development, health and education etc.
They are also known as the Innovators who laid stress on creating goods and services that solve
the problem and need of society. Their goal is to make world, a better place to live and grow.
Small-Business Entrepreneurship: these type of organizations are typically run,
oversaw and possessed by sole-proprietor. The most well-known route through which each
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business visionary begin his/her new pursuit is private venture. There are almost around 5.7
million private ventures exhibit in the UK advertise (Barringer, 2012). At first, all new
companies hone their activity as little undertaking as they don't have satisfactory assets both as
physical and monetary at its underlying stage. As indicated by the insights, it has been made
sense of that larger part of new businesses in UK (close around 36%) are as yet running as little
organizations with a point of nourishing and supporting their relatives, instead of making higher
benefits. Market, Carpenters and Electricians are a portion of the cases of private venture
business people. Right around half of all non-administrative labourers are utilized under this.
Serial Entrepreneurs: Such type of business people are known as the greatest
wellspring of thought age. In addition they have the freedom to exchange their duty to some
other individual with the goal that they can begin looking or confining new thoughts. They
persistently thought of new thoughts which are one of a kind and innovative all the ideal
opportunity for setting up new business wander. At first, they begin organization with their
enhance thought and after that assume crucial part in controlling it. They are for the most part
known as the author of association.
Scalable Start-ups Entrepreneurs: The for the most part stress on seeking adaptable
plan of action and at whatever point they discovered it, they attempt to grab the consideration of
financial speculators. Scalable business people are the person who have more prominent
aptitudes and learning. They are very much aware of the way that their creative thought can
change the world or its point of view. Notwithstanding that, they centre around fast development
and improvement of its business wander with their remarkable and imaginative thoughts.
Large Company Entrepreneurs: These organisations have limited life-cycle which are
in the end overseen and controlled by huge corporates. Their principle point is to catch vast piece
of the overall industry and increase high upper hand over their adversaries. They essentially
develop and create through managing advancement and giving merchandise and enterprises to
shopper according to their need. Be that as it may, any adjustment in innovation, customer taste,
passage of new contender, enactment may affect expansive organizations and empower them to
grow completely new item which they will offer new purchasers in new market. Existing
endeavours can do this either by securing development firms or attempting to manufacture a
troublesome item (Baum, Frese and Baron, 2014).
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Female entrepreneurs: Business environment is growing day by day and changing
trends and knowledge has enhanced the scope of entrepreneurship for both male and females.
This is the only factor which remain aligned with monitoring, controlling, taking initiative by
women and female entrepreneurs (Dacin, Dacin and Tracey, 2011). Indeed, even beginning
another wander is created by female as it were. Such sort of business enterprise depends on
expanding ladies interest in work and uniformity of a business endeavour.
P2 the similarities and differences between entrepreneurial ventures
Female Entrepreneurship Venture Male Entrepreneurship Venture
Equalities
 Main objective of this venture is to earn
profitability
 Providing goods and services as per the
needs of customers and the potential
buyers
Equalities
 Getting higher returns is the prime
objective of this venture
 this is the main aspect in terms of
absorbing the pressure of organisational
goals
Deviations:
 Buyers remain less confident and less
compared in terms of managing the
operations and functions
 it takes to long time to do research
work
Deviations
 More confident and strong
 Task oriented and effective
Serial Entrepreneurship
Ventures
Lifestyle Ventures
Similarities:  This mainly associated
with creating new ideas
and plans and profit
oriented.
 It believe in creating
new values and plans
 These ventures remain
associated with
handling and creating
standards for both
entrepreneurship
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 It select the main
aspects in terms of
managing operations
and functions of
business
Difference:  There are type of
investors remain
associated with
centralised power.
 There is a spreader
power of authority
found in this type of
venture.
TASK 2
P3 Interpret and assess relevant data and statistics to illustrate how micro and small business
impact
There are diverse writes or types of business wander that are accessible for business
visionary to build up its new business wander. They are for the most part arrange as miniaturized
scale, little and medium. Business person can pick any of the accompanying relying on their
thought. Specified underneath is the definite clarification of these structures:
Micro Businesses: Their primary target is to help their relatives by satisfying their needs
and want. Micro ventures are chiefly possessed and overseen by single individual who is
presumably known as the proprietor or author of organization. Sole-Proprietor goes under this
sort of business undertaking. Less measure of asset and capital is required to run miniaturized
scale elements. They are not following a specific hierarchical structure.
Small businesses: It is considerably less demanding for them to do adjustment or change
in their current merchandise and enterprises according to the dynamic needs of target section.
Small-Business is primarily discovered running in nearby economy. It can be run and oversaw
by single individual or by at least two individuals relying on the idea of the business. The
fundamental target of their proprietors is to distinguish the various needs and needs of clients and
give items and administrations to them in like manner. One single can run independent venture
yet it is prescribed to be worked by at least two man on the grounds that their parts and
obligations are high when contrasted with smaller scale (Micro and private company wanders,
2017). They acquire benefit keeping in mind the end goal to deal with its everyday task easily.
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Medium businesses: They win income for satisfying their own needs in term of
obtaining new land, hardware which at last prompts increment their general efficiency and
benefit. Close around 300-400 representatives work in medium-business. These are worked on
expansive level when contrasted with smaller scale and little. Benefit augmentation and
increasing high focused edge are their primary target. Employment: The principle focal point of SME's is to enhance the state of individuals
living in provincial territories by giving them opening for work according to their
aptitudes and information. As per UK Statistics Report, it has been made sense of that
SME's are contributing 40% towards producing better business open doors for individuals
who have lesser information and aptitudes (George and Bock, 2011). Rural Areas: This will empower them to catch the piece of the overall industry of
country regions also. By offering huge number of employments to rustic individuals,
SME's laid weight on enhancing the living state of provincial territories. In addition, they
organize preparing programs for them that guide in enhancing their present aptitudes,
capacities and learning.
 Foreign Direct Investment: this is also one of the micro factor which allows the
international and multinational organisations to elaborate and demonstrate the business
operations in such an manner so that the domestic market be able to grow. It alludes to a
welcome made by endeavours of home nation to have nation with the goal that they can
begin their business in home nation too. The principle thought process behind permitting
FDI is to enhance nation's financial condition.
P4 Importance of small business and business start-ups to growth of social economy
While little endeavours and new businesses will most likely be unable to produce as
much cash as substantial ventures yet at the same time they are considered as major contributes
towards the development and improvement of economy. Both start-up and private venture are
gigantically contributing towards the GDP of specific nation. They likewise help in animating
the development and advancement of economy by producing greater business open doors for
neighbourhood occupants who have not been utilized by expansive organizations (Grimaldi,
Kenney and Wright, 2011).
This is mostly on the grounds that they are more client situated i.e. making products and
benefits according to the requirements and desire for target gathering of people. half of UK's
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benefit is creating from SME's. In addition, SME's have the capacity to adjust according to the
changing financial condition or atmosphere. Following are the noteworthiness of new businesses
and independent venture towards UK's development and advancement are said follow:
Producing greater business openings: It has been made sense of that, in excess of 25
million of UK's kin are working with them. They are generally knowns as Job Creator as they
laid weight on enhancing the aptitudes and information of country individuals. The primary focal
point of SME's is on making expansive number of business open doors for both talented and
incompetent specialists. They are giving occupations to individuals who have not been utilized as
extensive association or MNCs.
Turnover: UK's aggregate deals turnover proportion is 2.5 trillion pound in which
commitment of independent venture and new businesses are close around 49% which is
equivalent to the half of aggregate deals income of whole country. Turnover alludes to the
general deals cycle of organizations consistently.
Fares: In the advanced time, each and every association goes for sending out their
merchandise and enterprises outside the limits of country. Their fundamental goal is to catch the
piece of the overall industry of other country also (Kuratko, 2016). As of now, the aggregate fare
of UK's is 409 billion in which 20% is contributed by new businesses and little scale. This
prompt increment the general income and benefit of home nation.
Development and Development: SME's are giving tremendous business chances to
nearby occupants of UK's which gives them the stage to appear and build up their aptitudes and
information. It can be estimated as number of utilized labourers in a specific nation.
TASK 3
P5 Characteristics traits and skills of successful entrepreneurs that differentiae business
managers
A business visionary is the person who have incredible advancement learning and abilities and
building up new hierarchical wander alongside various kinds of hazard related with it in the
desire for making higher benefits. Every one of them claims diverse qualities and attributes
which makes them the man they are today:
Jeff Bezoz: He is the Chief Executive Officer and organizer of world's most popular web
based shopping site Amazon.com. The thought was created in late 90s when Internet was
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blasting at higher rate. With the progression of time, he extended their site by offering substantial
measure of items and administrations that fulfills relatively every need of the client (Martin,
McNally and Kay, 2013). Following are the rundown of a portion of its qualities and attributes:
Daring individual: He is popular for going out on a limb however in deliberate and
ascertained way. He cleared out his well-paying employment to take after his fantasy. He has
decided to begin his own new business wander. He knew about the way that there are 70% odds
of his business disappointment yet his assurance did not disappoint him and subsequently he falls
in the rundown of world's most extravagant man today with a total assets of US$ 106 billion.
Very Competitive: One of the most prominent quality of Jeff Bezoz is he is
exceptionally focused. He aches for rivalry as well as attempts to end it too. Subsequently,
competition firm fallen.
Talent for Innovation: He creates sound alert so to shield themselves from his irritating
kin (Naudé, 2014). He likewise picked up prevalence for his imaginative aptitudes. From his
youth day he eminent as meagre Innovator of his home. His strive after making something new
increment with section of time.
Mark Zuckerberg: He is the Chief-Executive Officer of world's driving informal
communication site, Facebook. Besides, he is one of the most youthful business person that
world has today with an abundance of 63$ billion. He is the person who acquires change the
universe of interpersonal interaction.
Work with Higher Purpose: Mark trusts that on the off chance that you have some goal
in your life and on the off chance that you wishes to succeed and afterwards accomplish
something bravo. From the earliest starting point, he just has one vision set in his psyche and that
was to associate the world in a creative way (Santos, 2012).
Have faith in Product and Team: Mark trusts that with a specific end goal to make your
business effective, all you require is incredible group. All they require is setting up right
connection with right sort of individuals. As per his perspective, it is basic for an organization to
contract such individuals who vision can connected with organization's vision.
Takes after Feedback Approach: Mark trusts that the individual he is today is simply
because of his versatile nature. He generally asks recommendation from the client to improve it
and suitable.
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P6 How aspects of the entrepreneurial aspects personality reflect entrepreneurial motivation
Following are the point by point clarification of every one of these components:
Receptiveness to Experience: Openness portrays the innovativeness and interest of a
person. It characterizes the degree up-to which a man can be inventive or innovative. With the
assistance of such sort of aptitudes, they can manage any hazard or vulnerability in an efficacious
way. High receptiveness characterizes the creative energy intensity of a man which helps them in
increasing high aggressive edge in the market over its adversaries.
Uprightness: It delineates how well a man is sorted out and very much created in setting
of accomplishing its hierarchical goals in an organized way (Welter, 2011). They basically
investigate the circumstance instead of responding suddenly. Individual with abnormal state of
reliability, establishes to be more unyielding that isn't useful for the organization as far as with
different circumstances.
Extraversion: It alludes to the incitement inclination of a person towards different
things. Such kinds of individuals have alternate point of view towards various things which
makes them particular from others. High extraversion means that individual is more
consideration searcher.
Appropriateness: It implies the capability of a person towards getting to be co-agent
among their colleague. This furnishes them with the upside of increasing higher aggressive edge
over its opponents or rivals. High appropriateness prompts make clashes among associate as a
result of its predominant conduct.
Neuroticism: It essentially states how a man bargains or responds with hopeless feelings
or sentiments, for example, outrage, dejection, helplessness and so forth. (Welter, 2011).
Business people picked up prevalence on the planet as a result of its imaginative abilities and
information for making new business wander.
TASK 4
P7 Using relevant examples how background and experience can hinder or foste
entrepreneurship
Stamp was a brilliant understudy in his school yet he needed to seek after his fantasy. The
achievement voyage of the two business people was difficult yet at the same time both figured
out how to set their case on the planet and made history. Before presenting, there were number of
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other programming created by him. As his dad is likewise associated with PC programming, he
begins taking in program from him. At his secondary school, he composed a misleadingly
insightful media player Synapse for MP3 playlists. With the assistance of this, MP3 can
examined the inclination and taste of client and play melodies appropriately. Amid his school
days, he picked up notoriety for making programming engineer. From his youth days, he got
inspired by programming. Truth be told they have set a case for other individuals to take after
your fantasy and enthusiasm and do much endeavours so make it for all intents and purposes
conceivable.
CONCLUSION
This report is prepared to analyse the essential aspects which remain associated with
entrepreneurship skills and management. Range of venture type which can be considered as
entrepreneurial are defined in this context. Impact of small business on the economy and the
entrepreneurship also defined in this context which remain related to external factors and
analysis. Importance of small business start-ups and the growth of social economy also
demonstrated in this context. Key aspects of an entrepreneurial mindset also defined in
organisational context. Human resource management practices in an organisational context
defined in this report.
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REFERENCES
Books and Journals:
Wiklund and et.al., 2011. The future of entrepreneurship research. Entrepreneurship Theory and
Practice. 35(1). pp.1-9.
Welter, F., 2011. Contextualizing entrepreneurship—conceptual challenges and ways forward.
Entrepreneurship theory and practice. 35(1). pp.165-184.
Storey, D. J. ed., 2016. Entrepreneurship and new firm. Routledge.
Santos, F.M., 2012. A positive theory of social entrepreneurship. Journal of business ethics.
111(3). pp.335-351.
Naudé, W., 2014. Entrepreneurship and economic development. International Development.
Ideas, Experiences and Prospects.
Martin, B.C., McNally, J.J. and Kay, M.J., 2013. Examining the formation of human capital in
entrepreneurship: A meta-analysis of entrepreneurship education outcomes. Journal of
Business Venturing. 28(2). pp.211-224.
Kuratko, D.F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Grimaldi, R., Kenney, M., and Wright, M., 2011. 30 years after Bayh–Dole: Reassessing
academic entrepreneurship. Research Policy. 40(8). pp.1045-1057.
George, G. and Bock, A.J., 2011. The business model in practice and its implications for
entrepreneurship research. Entrepreneurship theory and practice. 35(1). pp.83-111.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Dacin, M.T., Dacin, P.A. and Tracey, P., 2011. Social entrepreneurship: A critique and future
directions. Organization science. 22(5). pp.1203-1213.
Baum, J.R., Frese, M. and Baron, R.A. Eds., 2014. The psychology of entrepreneurship.
Psychology Press.
Barringer, B., 2012. Entrepreneurship: Successfully Launching New Ventures, (2012).
Abu-Saifan, S., 2012. Social entrepreneurship: definition and boundaries. Technology Innovation
Management Review. 2(2).
Online:
Micro and small-business ventures. 2017. [Online]. Available through:
<https://www.smallbusinessbank.com/about/micro-vs-small-business/>.
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