D6010578 Unit 6 Entrepreneurship and Small Business Management HND Business Level 5
D6010578 Unit 6 Entrepreneurship and Small Business Management HND Business Level 5
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‘Entrepreneurship’ is a effective procedure that used to designing, processing and launching a new venture in an economy. People who used to implement these techniques in their strategic management process are known as entrepreneurs. This process describe as willingness and desired of individual person to introduce a new venture along with any risk in order to make money and profit. This is a large process that include business start up techniques, management strategies, fund management and economic as well as market analysis to getting desired growth and income. This process helps to identify business opportunities from target market to develop necessary resources and funds as well (Ackermann, 2012). This report includes different type of entrepreneurial venture, similarities and differences between entrepreneurial ventures as well as Micro and small business impact on the economy. It also represent Importance of small businesses and business starts-ups to the growth of social economy, Characteristic traits and skills of successful entrepreneurs, Personality of entrepreneur act as a motivational tool and Background and experiences which can hinder or foster entrepreneurship.
P1 Different types of entrepreneurial ventures
Introduction – This present task explain about different types of entrepreneur ventures, Typology of Entrepreneurship, Relationship between ‘types of entrepreneurial ventures’ and the ‘typology of entrepreneurship’ and Life Cycle of Entrepreneurial Firms.
In a economy different type of enterprises are establish for making money and getting appropriate growth as well. Main objective of these organisation is to create their appropriate image and goodwill in target market (Blackburn, Hart and Wainwright, 2013). Through these activities, they can easily create strong relation with target customers to maximise organisation's sales and revenue at a time. For this individual require to create impactful strategy to implement effectiveness in their firm. In target market these enterprises faces strong competition through existing ventures. So for this owner of these firms requires to make strong plans to face those challenges easily. Entrepreneurship and entrepreneur are two different terms as -
Entrepreneurship – This is a procedure that used to design, create and introduce a new business in targeted economy. It is describe capacity and willingness of individual to develop a venture along with any kind of risk in order to getting desired growth and income as well. In simple words, this term is used to starting a new business in effective manner.
Entrepreneur – These are the individuals who create impactful strategy to establish a new venture in target economy. They take risk in order to getting desired competitive advantages as well as make a profit. In this procedure they implement innovative ideas and advance technology to maximise their organisation and its service values.
Typology of Entrepreneurship -
Individual Entrepreneurship – These type of Entrepreneurship are carried out by a individual person who have specific right to make any changes in them. They has authority of ownership and also a right or license to use it and disposal of property. For them it is requires to use all resources properly and allocate appropriate funds for firm. Moreover to mange resources it is required to utilize them effectively and properly.
Corporate Entrepreneurship – This is a traditional form of entrepreneurship in which all the organisation wants to get effective growth and success in target market to achieve higher competitive advantages easily. For this firm requires to create appropriate framework that used to support innovation and creative ideas. This process basically used to develop new venture, process and strategies inside of an existing organisation to maximise its values, growth and revenues as well (Bridge and O'Neill, 2012).
Public Sector Entrepreneurship – These type of entrepreneurship are basically used to make effective modification in public initiatives and policy which is carried out by different groups or individual. For this entrepreneur requires to use conductive and strategic process to engaging in such activities to face uncertainty. In these initiatives, public sector Entrepreneurship requires to use advance technology and innovative ideas to make impactful modifications.
Types of Entrepreneurial Ventures
Start-up – This term is basically uses for a new development in economy that can be a beginning of company. These are the new ventures and companies that implement new and innovative ideas to enter into the market. High risk are associated with their activities but large number of opportunities are available for capturing target market (Bruton, Ahlstrom and Li, 2010).
New Development – This is a appropriate process in which individual develop new ideas and thoughts to implement effectiveness in their business. These can be product, strategy and business development in target market. Through this they can easily get higher competitive advantages.
Joint Venture – This process basically used to be with another company to accomplish a specific target, goal or objective. In it two or more business entities are shared ownership, risk and returns as well. Main objective of this process is to access a new market, maximise efficiency and share risk for higher investments (Burns, 2010).
Partnership – This is a business process which is established by two or more people to achieve their target objective and goals as well. Partnership is a formal agreement in which all parties might share profit and liabilities with a mutual understanding or the bases of their contribution in firm.
Relationship between ‘types of entrepreneurial ventures’ and the ‘typology of entrepreneurship’ -
Individual Entrepreneurship and Start-up – This typology of entrepreneurship is interrelated with the type of Entrepreneurial Ventures because in this individual uses new development to establish a new venture.
Corporate Entrepreneurship and Joint Venture – In this process two or more business entities share ownership to achieve higher competitive advantages and desired growth easily. This type of entrepreneurial ventures is starts with a effective framework to implement strategic procedure properly (Chittithaworn and et. al., 2011).
Life Cycle of Entrepreneurial Firms
Birth stage – This is the first stage of business start-up in which individual create a proper framework to canvassed creative ideas and thoughts to make it official. In this process entrepreneur requires to analyse possible sources to go though it properly. For this they also requires to analyse self potential to enter in a new market with their fresh ideas.
Breakthrough stage – In this stage, enterprise is ready to go in new market to build their own goodwill in front of target customers. In it, owner make several changes in products and services on the bases of initial feedbacks from target customers. These kind of changes make them confuse and create struggling condition in competitive market.
Maturity stage – This is proper maturity stage in which entrepreneur understand all the marketing functions and other struggle that helps to provide them higher growth and profits as well.
Conclusion – In this above task it has been determine that definition of Entrepreneurship and Entrepreneur, typologies of Entrepreneurship and Types of Entrepreneurial Ventures. After this it has been represent interrelation between these two terms as typologies of Entrepreneurship and Types of Entrepreneurial Ventures. At last it is represent Life Cycle of Entrepreneurial Firms.
P2 Explore the similarities and differences between entrepreneurial ventures
Introduction – This task is going to discuss about difference and similarity between entrepreneurial ventures and definition of Intrapreneurship as well as Social Entrepreneurship.
In a economy different type of business organisations are establish with different objectives and goals as well. They find different type of business opportunities from the target market on the bases of their strategy and business approaches (Cowling, Liu and Ledger, 2012). There are appropriate differences between several entrepreneurial ventures are given below as -
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Lifestyle Venture – These type of business ventures are set up by individual with the aim of enjoy particular lifestyle. They are known as creative mind who implement their strategies in business process appropriately. These kind of venture provide higher satisfaction to their owner as well as customers at the same level.
Smaller Profit Venture – These are privately owned organisations that have limited number of employees and resources. This type of organisations are earn minor annual revenue in the comparison of high growth organisation. These kind of organisations take higher risk to create their own marketing image in competitive market. For them entrepreneur requires to make impactful strategy to build strong relation with target customers (Dennis Jr, 2011).
High Growth Venture – Some of the business organisations are establish to design their own purpose that helps to achieve high growth. These kind of business owners create appropriate objectives and strategies to getting rapid growth easily. For this they uses different kind of marketing procedure such as different promotional tools, advertisement process, door to door marketing and develop a effective pool with investors to getting appropriate capital organisation. These kind of business venture are very different to Lifestyle and Smaller Profit business organisations.
Similarities of entrepreneurial ventures
New ideas – All the business organisations are establish in the economy through new and creative ideas. This procedure mostly uses by Smaller Profit and High Growth Ventures. Through this they are easily implement new and effective alteration in their business procedure and products. New ideas can be beneficial fir those organisation who wants to provide effective and creative services to their customers properly. For this entrepreneur requires to use innovative ideas and strategic process to getting desired business advantages easily (Down, 2010).
Being risky – All the entrepreneur develop their business organisations along with any kind of risk in order to getting desired growth and income easily. These type of activities helps to provide different opportunities to business organisations. Mostly Smaller Profit and High Growth Venture takes any kind of risk to build their own marketing image easily. Main motive behind this process is to getting effective profit and rapid growth in target market on the bass of their products and services as well.
Established by open-minded entrepreneurs - Lifestyle and Smaller Profit Venture are basically established by open minded entrepreneurs. These type of owners only wants to implement their ideas and thoughts in business process to getting higher satisfaction and growth as well. These kind of ventures are build to create their own market image before earning profit or growth.
Innovative products – All the business organisations are establish to create their positive image or to getting desired profit. For this, they provide innovative products to target customers that helps to capture their eyes toward these kind of services. Lifestyle, Smaller Profit and High Growth Venture provide their quality services to consumers on the bases of their own expectation and demand as well (Fassin, Rossem, and Buelens, 2011).
Intrapreneurship – They are the existing individual person of organisation who provide their effective services by introducing new product in venture by their create ideas and thoughts. For them it is require to understand organisation's and market requirement or need as well. Through this they can easily implement innovative techniques in their business process to build new imnage and goodwill in target market. These kind of business ideas are helpful to providing desired growth and success to an business organisation.
Social Entrepreneurship – These are the individuals who develop a new venture of for social care activities. There main objective is to serve effective and desired services to poor and needy people on the bases of the personal requirement and need as well. These type of business organisations are very different to Smaller Profit and High Growth Venture because they are not expand their business to make money or profit. These kind of individuals are get appropriate fund through governmental bodies and financial institutions (Hall, Daneke and Lenox, 2010).
Conclusion – This task has been represent difference and similarity in entrepreneurial ventures. This is also represent definition of Intrapreneurship and Social Entrepreneurship to understand their roles and responsibility in an organisation.
P3 Micro and small business impact on the economy
Introduction – This task is properly based on data representation of of employment or economic growth or Gross Domestic Product , Impact of medium-sized businesses on economy, Impact of large businesses on economy as well as Impact of SMEs on Local Economy such as London or any other local areas.
Number of SMEs start ups – In UK approx 5.5 million privately owned organisations was established in the year of 2016 These industries are maxi9mise their structure of 97000 since 2015 as well as approx 2.0 million more than in 2000. SME in specific areas are accountable for 99.3% of each and very private sector organisation is expand in 2016 and 99.9% were totally belongs to small size of business structure.
Number of employing businesses – These type of sectors provider their in contribution in economy development by providing effective services through employment process. They also provide their effective services in employment was 15.7million which is 60% of all private sector employment in UK (Ligthelm, 2010).
Number of employments provided – Small business organisation provider their effective services to those individuals who are required for effective growth. Number of employment supply is 14,000 (+1%) since 2015, in which number of non employees are approx. 84,000 (+2%).
Annual turnover of SMEs – Small Medium enterprises was create effective turnover of £1.8 trillion which is approx. 47% of all private sector turnover in UK.
SMEs (0-249 employees)
Small businesses (0-49 employees)
With no employees2
250 or more employees
Impact of SMEs on Local Economy such as London or any other local areas – Small and medium size business organisation are ballistically established to getting effective growth and income in target market. Main objective of these organisations is to provide quality services in Local Economy such as London or any other local areas. Through this they are easily develop strong relation with target customers.
Impact of medium-sized businesses on economy – These type of business organisation are develop to getting effective and rapid growth in a economy. Through this economy get appropriate growth through several tax policies and employment services. All the owners of these medium sized organisation are create their strong strategy to develop their business properly in economy. Through this they provide effective growth and development as well.
Impact of large businesses on economy - Large scale business organisations has major impact on economy development. These type of firms develop several path for international treading process to getting higher growth and income as well. Large businesses firms provide their effective services for tax policy and further development services (Nga and Shamuganathan, 2010).
Conclusion – This above task has been determine Number of SMEs start ups, Number of employing businesses, Number of employments provided, Annual turnover of SMEs, Number of registered SMEs for VAT and PAYE. At last it has represent Impact of SMEs on Local Economy such as London or any other local areas, Impact of medium-sized businesses on economy and Impact of large businesses on economy.
P4 Importance of small businesses and business starts-ups to the growth of social economy
Introduction – This present task explain about Social Economy and Social Enterprise. This is also represent Corporate Social Responsibility as well as Importance of SMEs in growth of ‘Social Economy’.
Social Economy – It is formed and developed by rich variety of an organisation that includes associations, mutuals, cooperatives and social enterprises which are share mutual values and features within small business. Along with this, social economy and administration have assorted sizes which range from small business enterprise to large companies and huge groups which are seen as leaders in their market place and this will operate in the entire economic industry.
Social Enterprise – A social enterprise is that organisation which apply commercial strategies and policies which help in increasing the social, financial and environmental welfare this will includes maximising the social impact along with gaining high amount of income. It is important enterprise which is used while increasing the growth and success level of an organisation (Preuss, 2011).
Corporate Social Responsibility – It is considered as the business approach which do contribute in the sustainable development by delivering economic, Social and environmental benefits. It is such which include various aspects as human rights, health and safety, environmental affects and also lead to contribute to economic development. Moreover, few company has somewhere achieved from different efforts with unique CSR initiatives, even though it is quite complex to follow all the aspects of CSR.
Importance of SMEs in growth of ‘Social Economy’ - In UK, after the Brexit the economy was not stable which affected the country in huge way and further the government of UK moved forward and supported small company to come in and grow in great way, which did help in bringing stability in economy of UK. For country the development of the SME is very much needed aspect and small firms has succeed in getting stable and helped in developing social economy (Schaltegger and Wagner, 2011).
Conclusion – This task has represent several elements such as Social Economy and Enterprise, Corporate Social Responsibility as well as Importance of SMEs in growth of ‘Social Economy’.
P5 Characteristic traits and skills of successful entrepreneurs
Introduction – This task is explain about individual's Characteristics and skills that impact on their performance management technique. It is also represent different elements of Characteristics and skills that are related to successful entrepreneurs.
Personal Characteristics and Skills – These are skills and working ability of individual that helps to make them different from others (Schaper and et.al., 2014). Each and every person has different skills and Characteristics that requires to identify properly to provide appropriate responsibilities to them.
Personal characteristics of successful entrepreneurs-
Need for achievement – These are Characteristics of individual that determine their personal need for getting desired achievements. In this process they analyse several areas of working to achieve higher success easily.
Self-confidence – A person should have to be confident toward their working approaches and abilities. Through this they can easily represent their ideas and thoughts in front of others.
Openness to change – It is requires that person always have to be ready to adopt several changes in modification in their working approaches. Through this they can easily enhance their skills.
Highly motivated – For entrepreneur, it s required to always be motivated toward their organisational goals and objective to achieve higher success easily (Shane, 2012).
Skills of successful entrepreneurs
Business skills – For entrepreneur, it is required that they have business skill to deal in competitive market easily. Through this they can easily develop effectiveness in their business approaches.
Technical skills – In this era, it is required that a entrepreneur has technical skills to implement innovative ideas in their business process. Through this they can easily maximise organisational profitability and productivity as well.
Communication skills – This is required that a entrepreneur has impactful communication skills to provide appropriate direction to their employees and deals with other competitors easily. These kind of skills are beneficial to build appropriate relation with target customers.
Decision-making skills – For a entrepreneur, it is require to take appropriate decision for their business organisation that should have top be beneficial for others. Through this they can easily solve issues and problems of employee in effective manner (Stokes, Wilson and Wilson, 2010).
Entrepreneurs are born or made – Entrepreneurship is a skill of individual that are made by their own life experience. Some of the entrepreneurs are born with innate ability while as some started their venture come up with new ideas and creative thoughts. For example – Jamshedji Tata was belongs to a businessmen family, so their thoughts and ideas are belongs to innate ability.
Conclusion – As per the above task it has been concluded that a entrepreneur should have to be specific Characteristics and skills that helps to enhance their working performance and abili8ty as well.
P6 Personality of entrepreneur act as a motivational tool
Introduction – This task is discussing about mindset of entrepreneur and different kind of factors that affect their decision making techniques.
Mindset – This is a personal thinking of individual for a specific matter and task. In this process individual set their mind toward a exact point that helps to provide them career shaping.
Mindset of successful entrepreneurs-
Wanting more than money- For a entrepreneur it is require to understand values of objectives and goals rather than money and profit. Through this they can easily motive themself toward future targets.
Not missing opportunities – A entrepreneurs should have to be quick to adopt several opportunities from target market to getting desired success easily.
Positive thought – This is a most important process that helps to getting positive outcome of business strategies.
Taking responsibility – A person should have to be responsible toward their business approaches.
Unemployment – Some of the entrepreneurs choose their career path in entrepreneurship due to unemployment in economy.
Home & family commitments – A person who belongs to entrepreneurs family, will most probably choose their career in this field as Jamshedji Tata (Welter, 2011).
Entrepreneurial education- Some of the individual are take their education in the field of Entrepreneurship.
Family upbringing – Some of the family upbringing move individual's path in Entrepreneurship procedure.
Conclusion – This task has represent Mindset of successful entrepreneurs and impact of Situational factors on their future growth.
P7 Background and experiences which can hinder or foster entrepreneurship
Introduction – This reports is discussing about personal background, education and other terms that are related to specific entrepreneur.
Personal background - Jamshedji Tata is a well known entrepreneur who is founder of Tata group. He was born in 3rd March 1839. They belongs to a entrepreneur family.
Education – He was take eduction from Elphinestone College, Mumbai as a Green scholar.
Experience – Jamshedji Tata started their working career with their father and involved himself in business industry. They went in several countries top expand his fathers business.
Social environment - Jamshedji Tata was wants to expand thei father's business but due to some issues and social impacts they start a new venture which is known as Tata group.
Link between Characteristics and Background’ of an entrepreneur – For a entrepreneur, it is requires to analyse their skills and Characteristics properly that help them to enhance their working skill properly. These kind of elements are related to their Background that increase business approaches.
Conclusion- This task summarised Personal background, Education, Experience and Link between Characteristics and Background’ of an entrepreneur.
From the above report it has been summarised that entrepreneurship is appropriate procedure that helps to design, develop and create a new venture in economy. Main objective of these organisations to work for economy and social care development process. For this entrepreneur requires to use innovative ideas and techniques to maximise their business growth and provide desired success easily.
Ackermann, S.J. ed., 2012. Are small firms important? Their role and impact. Springer Science & Business Media.
Blackburn, R.A., Hart, M. and Wainwright, T., 2013. Small business performance: business, strategy and owner-manager characteristics. Journal of small business and enterprise development. 20(1). pp.8-27.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small business. Palgrave Macmillan.
Bruton, G.D., Ahlstrom, D. and Li, H.L., 2010. Institutional theory and entrepreneurship: where are we now and where do we need to move in the future?. Entrepreneurship theory and practice. 34(3). pp.421-440.
Burns, P., 2010. Entrepreneurship and Small Business: Start-up. Growth and Maturity. Palgrave Macmillan.
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