BUS020C415S Entrepreneurship and Small Business Management Level 5
BUS020C415S Entrepreneurship and Small Business Management Level 5
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Entrepreneurship and small-business management is necessary for the local government in order to develop and improve domestic market which lead towards economical growth and development. The report will cover entrepreneurship and different types of typologies with the main sources of generating business and entrepreneur idea. In addition to this, impact of small-business business on economy and international aspect of entrepreneurship will be discussed in this report. Finally, the report will demonstrate key aspects of an entrepreneurial mindset and different environments that foster or hinder entrepreneurship.
P1 Entrepreneurship and different types of typologies
Entrepreneurship: This is a process by which an individual have responsibility to working with effectiveness in order to showing the capacity to develop, organise and manage business venture along with taking risk in the business in order to getting profitability. This is a first step of starting a new business in industry (Abebe, 2014). In case of UK, in today's world, there are numbers of entrepreneur are arising in the nation which is running in the industry in sufficient form.
Lifestyle business: It is a business set-up run by primarily founders with the aim of managing a particular level of income to deliver foundation to enjoy a lifestyle effectively. These are accessible and also effective.
Small business entrepreneur: Small business entrepreneur is those who make efforts in order to serving different kinds of small types of products and services to getting sustainable income.
Large business entrepreneur: Large business entrepreneur furnishing large amount of products and services in industry to generating wide range of profitability form marketplace. Large companies come up into market by introducing large volume of different types of products.
Scalable business entrepreneur: Scalable entrepreneur is one of the essential business start-ups which comes into marketplace by introducing unique and innovative products as per customer's needs and demands.
Typology of entrepreneurship:
Entrepreneurship can be defined as a start up, in public and private sector which has potential to taking initiatives to introducing various kinds of new business services in industry. Several types of enterprises are working in industry, such as micro, small and medium size of entrepreneurs are working in industry in order to completion of various tasks of the businesses.
Define entrepreneurship: Entrepreneurship is an effective terms in which, an individual take risk and implement innovative idea in case of execution of business functionality in industry in order to start up a new venture. It has been seen that, there are numbers of entrepreneurs are working in the UK, which is providing innovative products and services as per modern demands of customers. Entrepreneurship spirit is characterised by completion of various task in the business in order to completion of various business activities in industry in relevant form.
Entrepreneurial activities: In order to execution of various business activities, an entrepreneur must need to make sure that, all business activities is being done at workplace in respective manner in order to completion of various tasks in firm.
An enterprise need to make planning of formation of new products and services which has potential to satisfy each customers needs in proper way. They have to planning for new products which can raise sales of the company (Entrialgo and Iglesias, 2016).
An enterprise also must have potential knowledge about brainstorming to the next business, multiple numbers of business opportunities is being arising in the industry, and the have to figure out the best idea by brainstorming to execution of new businesses.
An entrepreneur also should make efforts to formation of effective strategies for new movement of attractive marketing moves, by which they can promote their various business activities and products in appropriate form.
P2 The difference between serial interpreters and intrapreneur:
Entrepreneur of a company has responsibility to taking risk of all activities which is being done in their venture.
The central difference between entrepreneurs and intrapreneurs is the setting in which they work. “An intrapreneur is an inside entrepreneur, or an entrepreneur within a large firm, who uses entrepreneurial skills without incurring the risks associated with those activities,” Investo-pedia explains. Enterprise takes high level of risk for functioning business activities. Intrapenure of a company takes minor level of risk for completion of various business activities.
In addition to this, Entrepreneur is responsible for taking all the risks in activities done in venture effectively. Interapenure has liability to promote innovative services in order to develop market activities. Enterprise has high risk of functioning business activities. Intrapenure of a firm has liability within a company who promote innovative products and services development and marketing activities of business.
Similarities between business ventures:-
Production is limited because few workers are involved in business.
Employees and other members are involved in all operational activities and profits are high.
Large number of employees in order to work for the well fare of society.
Local workers are used to do small-business.
Employees came from different countries in order to show their talent in business activities.
Motivation is the key to keep engaging people in social work.
Small-business start their market selling single product in the market.
Goals and objectives are big that a lot of employees have their individual.
The vision is to provide free services to people who can not afford the basic required for living.
No strategies and plans are involved so the level of risk is also low.
Percentage of risk is high that targets are big enough.
No risk involved instead they get outside support.
Entrepreneurial ventures compared with corporate entrepreneurial ventures and non-profit ... goods and services that the market or public sector is either unwilling or unable to differ in the way these personal characteristics and traits are put to use. Social enterprises contribute to our society by promoting a clear social objectives which serve and benefit the public. This will also help to create opportunities for business. Small business entrepreneur is those who make efforts in order to serving different kinds of small types of products and services to getting sustainable income. Scalable entrepreneur is one of the essential business start-ups which comes into marketplace by introducing unique and innovative products as per customer's needs and demands. Large companies come up into market by introducing large volume of different types of products.
The main source for generating Business and entrepreneur idea
It can be said that great business ideas is all around, you just need to open to the possibilities. There are some factors described below which helps to understand how to develop a new effective business idea (Drucker, 2014).
Start with family: In order to conduct a small business development idea the entrepreneur should tap family members. Family works as a bank loan for entrepreneur and provides cash for business operational activities and start-up.
Help from friends: Friends are very important that they help in many ways for business start-up and expansion. In addition to this, they provide suggestions and recommendations in order to develop and improve business idea.
Look at all the things: Entrepreneur should take a review of all the essential elements of business in order to ensure weather they are correct or not effectively. This will also help to determine strategies for business start-up.
Tap your interest: There are a lot of number of people trying to achieve success with domestic market. An entrepreneur should ensure aim and objective of business is according to the interest. This is the most important aspect that he should have interest in business activities which will help to manage difficult conditions.
There are several ways from which the business and entrepreneur is able to protect their intellectual property rights such as US patent and trademark office provides information regarding trademarks, patents and policies (Cacciotti and Hayton, 2015). Apart from this many websites are available which helps to differentiate intellectual property rights from another to be same effectively.
P3 Interpret and assess relevant data and statistic to illustrate the impact micro and small
business have on the economy.
In accordance with the data, there are about 5.5 million private sector businesses in the year 2016 which shows that it has raised tremendously since 2015. All these are effective enough to raise their economy in effective manner. Further, by the year 2017, there were about 5.7 million private sector businesses by the end of 2017. Moreover, this this is an increase in 197000 businesses since 2016. On annual turnover, SME’s contributes about £1.9 trillion which is 51% of all private sector turnover in UK. As per the future aspect, there will be increase more entrepreneurial ventures that will contribute effective towards the growth and development of the country. In accordance with the statistics from the year 2017, there were 32.21 million people in work and the employment rate was about 75.3% higher than earlier year. Further, this has also bought some changes in unemployed rate. Annual turnover of SME’s is about 16.1 million, which is 60% of all private sector employment in UK. Apart from this, the number of VAT (Value Added Tax) and PAYE (Pay-As-You-Earn) businesses in UK has continued to grow to 2.67 million in 2017. When compared with previous year, it was 2016.
Size: Size of the small and medium organisation play major role in case of gaining proper success in market, there are numbers of companies are working in industry which has large numbers of areas where sufficient development can be seen. So size of venture defines about profit capacity of business.
Turnover: Turnover of the business can be examined such capacity of the business in order to getting success in industry. Wide range of turnover is being generated by business owners in respect to making contribution on economic development in such areas in the UK.
Profit: Profitability is also another factor which can be seen in order to increasing the rate of entrepreneurship in the market of UK, where they all are offering attractive products and services to existing customers in order to gaining expected amount of profitability in industry.
International aspects of entrepreneurship:
At the international level, it can be seen that, there are large numbers of increment can be seen in case of entrepreneurship sector. There are different types of regulations and legislative provision are being given for different-different level. So each country has its specific norms of running start-up business which makes impact in profitability generation of the business in industry in relevant manner (Hagedoorn, Lokshin and Malo, 2018). Hence, international aspects of the start-ups can be impact on doing business in unique prospect. Start-ups must need to consider country's norms while establishing their venture in several nations.
P4 The role and importance of small firms in economic development
There are several types of roles and importance can be seen in order to development of various tasks of the businesses. It can be said that, the small and medium businesses are making contribution in such areas where sufficient development can be gained. In case of UK, there are numbers of SMEs are running in order to completion of each task. It has been seen that, small businesses can be applied in some areas where small business present new employment opportunities and serve as the building blocks of the UK. It can be said that, in the nation, small and medium businesses has been made great impact in corporation sector of firm and economic development of nation as well (Siqueira, Webb and Bruton, 2016).
There are multiple types of small and medium businesses are working in industry in case of proper development in such areas, where various types of employment has been increased in the market. In can be said that, there are large numbers of companies are working in industry, small and medium size of businesses are operating in the market and they all are generating small amount of profitability and productivity in industry. From the last few decades, it has been seen that, numbers of small and medium businesses are working in industry and more than 90% population of the UK, is working in small and medium size of businesses. It can be said that, there are numbers of SMEs increasing frequently year by year in industry and they are making contribution in such a way where sufficient development in economy of the country can be seen. Those employees who cannot get job in large organisation has been given job in small businesses (Bergmann, Hundt and Sternberg, 2016). So it is generating large numbers of employment opportunities to all employees in the country, which contribution to economic growth of the UK.
P5 Successful entrepreneur factors and elements associated with traits and skills
A successful entrepreneur requires good skills, knowledge and characteristics to manage and control business smoothly and effectively.
Passionate and motivator: A passionate entrepreneur always willing to do something innovative and effective. Motivation helps to do work over and over again till its not completed without getting bored. Passion is something which keeps you awake at night till the work is finished. This will also help to encourage employees working in the firm in order to achieve desired goals and objectives.
Risk taker: It can be said that a successful entrepreneur takes risks supported with strategies and plans. It is very crucial for a entrepreneur to take risks that it helps to take advantage of future opportunities as well as current situations. Strategies and plans are made by entrepreneur in order to protect from harm and losses.
Self-believer and hard worker: Entrepreneur should believe in themselves that they are confident about their work. Hard working in small businesses will help to expand operational activities and profitability. Financial and non-financial activities management should be effective in order to increase profits and production (Sabouri and Safarpour, 2015).
Knowledge of products and market: Entrepreneur always keep effective knowledge of products and services offered in the market towards customers in order to make relevant changes according to the taste and preferences. This will also help to assess demands and requirements of customers from which the production process is managed.
Planning and strategies: Planning and strategies are one of the crucial aspect of a successful entrepreneur that it will help to recover from losses and also increase profitability by making production process more effective and efficient. This will help to enhance profitability.
Flexible: Flexibility will help business and entrepreneur both to manage changes effectively. Flexible nature of a entrepreneur will help him or her to make necessary changes in products and services as well as operational activities. This will also help to provide solutions in difficult situations.
In addition to this, there are so many theories and models proposed by authors in order to evaluate characteristics, traits, personalities and psychologists of a successful entrepreneur. The common elements are discussed below:
The need to achieve ambition
It can be said that entrepreneurs try hard to achieve their ambitions and goals to become successful. They have ability to set objectives and targets for both workers and company and also tend to be proactive and dedicated towards their work and vision. They plan for the future uncertainties in order to manage risks and other factors that affect business operations and profitability.
It is very crucial for a entrepreneur to take risks that it helps to take advantage of future opportunities as well as current situations (Rostamkalaei and Freel, 2016). Strategies and plans are made by entrepreneur in order to protect from harm and losses. This will help to drive production and profitability.
Vision and perception
A vision is necessary to achieve some initial targets and goals. An entrepreneur should ensure aim and objective of business is according to the interest. This is the most important aspect that he should have interest in business activities which will help to manage difficult conditions.
P6 The entrepreneurial personality reflect entrepreneurial motivation and mindset.
It has been analysed that every entrepreneur has various skills, knowledge and characteristics which helps to operate internal and external activities of business. Such aspects reflect personality of an entrepreneur towards his mindset and motivation.
Take actions: A successful entrepreneur always take right actions in difficult conditions. This will also reflect the decision power of entrepreneur towards business various conditions. It can be said that a successful entrepreneur takes risks supported with strategies and plans. They take risks because they believe in themselves and confident about their work.
Independent: A successful entrepreneur takes advice from everyone but complete all the work individually and effectively (Siegel and Wright, 2015). The knowledge and skill will help to become independent which also reduce the chances of making mistakes weather it is in task or decision.
Desire to do something innovative: Innovation is necessary at workplace that a successful entrepreneur bring innovations at work place in order to gain competitive advantage and productivity. Innovation and Hard work done by entrepreneur and employees in small businesses will help to expand operational activities and profitability.
Policies and encouragement: Policies are made by management in order to run business smoothly and effectively and encouragement is provided to increase skills and productivity for employees. Policies will help workers to understand roles and responsibilities regarding their individual work which helps to engage them in various tasks by providing encouragement effectively.
Management of resources: Management of financial and non-financial resources is important for business in order to manage profitability and effectiveness of production. This will also help to assess demands and requirements of resources within firm from which the production process is managed.
Thus, it can concluded that an effective entrepreneur personality aspects reflect the mindset and motivation. This will help to identify and determine how effective he or she is towards managing various business operational activities in order to increase production and profitability effectively.
P7 Different environment can hinder or foster entrepreneurship
It can be said that a successful entrepreneur goes through many different phases. There are a lot of environmental factors which wither increase or decrease ability or entrepreneurship effectively. Background and experience of entrepreneur is affected by behaviour and psychology. There are so many factors that hinder skills of an entrepreneur such as lack of proper education and information, no experience of financial management etc. In regard to thought about the exploration for business visionaries advancement, it has been seen there are distinctive components exist that execute to make victories (Carraher, Welsh and Svilokos, 2016). It has been seen that reward and downsides predominantly make affect on the business program. There are a few components exist that effect on the cultivating business enterprise which helps to achieve wanted outcomes and results. Some of them are described below:
Education: Education of business person predominantly make affect on the grounds that along these lines, they increment their abilities and improvement program at work environment. In this thought, it has been seen that abnormal state of training expected to play out a few objectives and targets in the business conditions. Education level of entrepreneur decides the amount of knowledge and skills possessed by him or her at workplace and during the studies. This will have a great impact on business and decisions made by entrepreneur in various conditions effectively and efficiently. In addition to this, Education is one of the effective method to improve the personality and professionalism of the individual by which they can learn something new.
Family Foundation: Family background and foundation is also a important aspect of businessand entrepreneur that which has a great impact on abilities, capabilities and working environment. For an example, if the family background of entrepreneur is related to business environment than the entrepreneur will posses more skills and knowledge regrading business operational activities (Le Roy and Czakon, 2016). Apart from this if the family background is not from any business sector than the entrepreneur should have to acquire skills and knowledge on individual basis effectively. Thus, it can be said that family background has a great impact on entrepreneur in terms of hinder and foster entrepreneurship.
Experience: Experience is an another factor which affect entrepreneur, entrepreneurship in both positive and negative terms. This will help to address determined objective With help of effective experience, individual can learn the various skill, ability knowledge and capability regarding the work. On the experience basis, entrepreneur is able to handle mistakes and make decisions regarding various resources uses in business which hinder or foster entrepreneurship effectively.
National culture: National culture can be defined as The set of norms, behaviours, beliefs and customs that exist within the population of a sovereign nation. International companies develop management and other practices in accordance with the national culture they are operating in. This will have a impact on entrepreneurship that dynamic and complex culture will decrease effectiveness of entrepreneur in order to make decisions and hinder entrepreneurship. The cultural factors should be determined and managed by entrepreneur which will help to foster entrepreneurship efficiently (Lavia López and Hiebl, 2014).
Economic circumstances: Economic circumstances can be described as Circumstances which are factors or conditions that play a part in determining an outcome. Given the current economic circumstances, a lot of good candidates just can't find jobs. The word circumstances first came onto the scene in the early 13th century, meaning “conditions surrounding and accompanying an event.” This will also have a impact on business and entrepreneur towards his or her entrepreneurship. Economic development will help to maximise chances of developing local and domestic market which will also help entrepreneur to foster his or her entrepreneurship by adopting various skills and knowledge that are focused on improving and developing production and profitability.
There are various risks and uncertainties of business start-up which should be mitigated by entrepreneurs effectively in order to drive business performance.
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Market Uncertainty: Two years from now, will there really be a market for our products and services? The assumptions should be relevant to manage uncertainties in business.
Technological Uncertainty:Have entrepreneur made the right bets in terms of the technologies to develop and or the platforms to use for our products and services which helps to manage technological uncertainties (Wach, 2015).
Competitive Uncertainty: Even if entrepreneur assumptions regarding the market and technologies are on the mark, will we reach the goal-post before our competitors do? The competitive advantage is required to manage market share.
Organizational Uncertainty: Do entrepreneur have the right leadership and the right team to execute on plans and strategies.? This should be ensured by entrepreneur in order to manage and control business operational activities and structure (Daniel, Domenico and Sharma, 2015).
Financial Uncertainty: Will entrepreneur have the capital needed to meet our needs until a successful exit? Management of financial and non-financial activities and operations is important to manage capital and cash which helps to increase effectiveness of production process which lead towards profitability (Thébaud, 2015).
It can be analysed from the above report that there are different types of entrepreneurs associated with various types of typologies. There is a major positive impact of small-businesses in order to improve and develop economic growth of United Kingdom. It is important that it helps to reduce various issues regarding development of country such as employment, opportunities and many other things to boost economical growth. There are several ways from which the business and entrepreneur is able to protect their intellectual property rights such as US patent and trademark office provides information regarding trademarks, patents and policies. A successful entrepreneur requires good skills, knowledge and characteristics to manage and control business smoothly and effectively. effective entrepreneur personality aspects reflect the mindset and motivation. In addition to this, there are so many factors that hinder skills of an entrepreneur such as lack of proper education and information, no experience of financial management etc.
Abebe, M., 2014. Electronic commerce adoption, entrepreneurial orientation and small-and medium-sized enterprise (SME) performance.Journal of small business and enterprise development21(1) pp.100-116.
Bergmann, H., Hundt, C. and Sternberg, R., 2016. What makes student entrepreneurs? On the relevance (and irrelevance) of the university and the regional context for student start-ups.Small Business Economics47(1) pp.53-76.
Cacciotti, G. and Hayton, J.C., 2015. Fear and entrepreneurship: A review and research agenda.International Journal of Management Reviews17(2) pp.165-190.
Carraher, S.M., Welsh, D.H. and Svilokos, A., 2016. Validation of a measure of social entrepreneurship.European Journal of International Management10(4) pp.386-402.
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