In order to define entrepreneurship, it is necessary to understand what is an entrepreneur. Entrepreneurs are the person who start their business on their own responsibilities and authorities. It is a very risky process. In order to this, this report include different types of ventures of entrepreneurship as small, medium and large scale business. These all enterprises are different as per the number of employees, amount of investment and purpose. Small and medium businesses are the backbone of the society. Furthermore, this report also consider the similarities and dissimilarities between all these types of entrepreneurial ventures. These enterprises play an important role in the growth of the business(Hong, Song and Yoo, 2015). There are various advantages such as it helps in increasing the standard of living of their employees, create job opportunities and so on. It also contributes to the growth of social economy. This report includes interpret and assessment of relative data. In this way, this report evolves various traits and attributes of a successful entrepreneur which make differentiate them from others.
P1 Types of entrepreneurial ventures
- Entrepreneurship of small business: These businesses are generally in form of grocery stores, hairdressers, carpenters and electricians. Small businesses hire and recruit local employees. Mostly the workers in this business are their family members. The main objective of is to make profit after fulfil the requirements of their family members. The source of investment and fund through their friends or via family. They are not capable to attract the venture capital(Blauth, Mauer and Brettel, 2014). Small businesses run their business not to overtake other businesses as they do not have much capital and profitability margin to take over.
- Entrepreneurship of scalable start-up: Scalable start-up means risk and return is indefensible whether small business means risk and return is reasonable. The primary aim is to make a large or spic-and-span marketplace, they craved to create foremost of time and wealth. In the order to attending with classification of entrepreneurship, there are various benefits like immunity to pick any prospects, incoming cost is down, high quality of living and freedom to ask question or so on(Hong, Song and Yoo, 2015).
- Entrepreneurship of large company : These businesses are large in area and are has different other characteristics such as approachability to economic expansion, skills to attract new customers, indirect expenses will be decrease and high ability to face off risks and hazards In the context of changing in market environment(Freire-Gibb and Nielsen, 2014). According to large companies' entrepreneurship, there are huge changes in legislations, rules, regulations and laws. It is required for large companies to develop new products and brands than sold it into new-targeted marketplace to maintain position.
- Social entrepreneurship: This entrepreneurship is relevant to assorted forms of organisations with variety of sizes and feelings. Social entrepreneurship can be classified into antithetic parts like community, social responsibility, society economic or industry professionals based. It combines commercialism and ethical complexities in a way that better the lives of people attached to the reason. They don’t standard their success in position of net profit alone(Freire-Gibb and Nielsen, 2014). Success to social entrepreneurship refers that they have reinforced the global, however they specify that. There are different examples of social entrepreneurship such as TOMS, Grameen Bank and Badala.org. The main features are to achieve large-scale environmental and social modifications.
P2. Similarities and differences between different types of entrepreneurial ventures
Differences between small, medium and large sizes enterprises:
Small business means that organisations which are freedom owned and operated to gain profit. These generally have less than 500 employees. Small enterprises can be defined in the context of financial measures as profits, value of assets and liabilities. Furthermore, large-scale enterprises need a huge amount of funds and investments in the industry.
Distinction between all these enterprises on the basis of following points:
- Decision -making: Large enterprises take long time in taking decision regard to any activity due to higher number of employees in the organisation(Blauth, Mauer and Brettel, 2014). In this way, SMEs means small and medium enterprises take quick decisions which hinder the progress of the business while delay in taking decisions can decrease the progress of the company as large enterprises.
- Attitude: Attitude refers to taking risks. Large enterprises can take higher risk in their operations because of their higher capital and assets. Large-scale businesses have to develop new products and sold it into new markets. This is a risk factor to launch new commodities into a new geographical unit. However, large enterprises are taking risks and adapting all changes of market(Blauth, Mauer and Brettel, 2014). In this way, small and medium enterprises are not able to take higher amount of risk. They alert to the antagonistic impacts of external factors as they impact the business in strong manner.
- Resources: In small and medium size enterprises, allocation of resources is great in the manner of requirements. As there are limited functions and departments due to less number of employees so to allocate the resources in proper way is too easy(Hong, Song and Yoo, 2015). In this way, large enterprises cannot apportion the sources in correct manner to attain success because there are large number of departments and employees. That is why it is difficult to allot accordingly.
The primary principals of small enterprises is to be economical, record expenses, keep profit and loss statement, discover free stuff and keep it smiles. These principles assist the administration to acquire knowledge from mistakes and feat it galactic with the tools available in the construction(Hong, Song and Yoo, 2015). In addition to this, several other features such as lower receipts, few employees, lower profitability margin, small market areas and fewer locations. These are mostly laggard and steady growing enterprise. Number of workers are less than 250 and finance is more than 5 crore but less than 10 crore.
P3 Impacts of MSMEs and large businesses on economy
MSMEs and large enterprises plays an important role in growth of Indian economy. There are various importance of these enterprises such as :
- To generate large scale employment : MSMEs generally select the employees from local areas. According to the recent case study, these businesses generate 71% of job opportunities. Small businesses always keep moving the economy of nation. They make job chances and raise the standard of living of their workers(Blauth, Mauer and Brettel, 2014). It assists in social economy by agonistic al surroundings, local hiring, diversity and turnover.
- New and innovative ideas : Small and medium businesses are mostly connected with the external factors of marketplace. They always try to make something new and different. It is required for large scale business to create new products and sold it into new markets. Thus, they develop new ideas into existing product by modifying its colour, design, brand name.
- Mapping the future : The small and medium size enterprises or large enterprises always update with the current and recent trend in the market. Before launching any strategy or new product they map these changes by the using of different techniques(Bridgstock, 2015). By mapping the future, they are able to produce the product as per the requirements.
- Economic growth : As above discussed, these enterprises create and develop different opportunities of job in the local area by which living standard of their employees is increased. By the improvement in living standard, I also improve the purchasing power of the employees which is indirectly relevant to economic growth of the nation.
There are three fundamental ways that these enterprises contribute in growth of economy(Audretsch and Belitski, 2014). They afford people the chances to succeed financial freedom, boost creativity, and develop employment opportunities. Small businesses bring forth a wide assortment of new employment opportunities. Stability of economy of our nation is in portion related upon a stable economy and the fiscal capability traced from these businesses(Bruton And et.al.., 2015). These enterprises are a motor and an engine of maturation that permits both citizens and the authorities to adopt the goods and services they require in growing. In addition to this, it permits real people with great opinion and thought to act upon them and create their business an actuality.
P4 Importance of small business and start ups businesses on the growth of social economy
- Wealth creating and sharing : The main objective of the start up business is to establish the new markets and by the establishing of these new business entity, entrepreneurs put their own resources and try to attract others to invest in their business as capital or assets. This activity increases the mobilizes(Burns, 2016). Which allows people to get more advantages from these successful business. This way of excavation assets that outcomes in wealth creation and distribution is one of the basic abjuratory and objectives of economic development.
- create jobs : These businesses create new markets for sale the products and services. Launching of new markets means opportunity of higher jobs. These enterprises generally select local people from the location where it is going to start their business(Audretsch and Belitski, 2014). By increasing in opportunities of jobs, people can increase their standard of living which is beneficial in growth of social economy.
- balanced regional development : Mostly entrepreneurs set new markets in less developed and backward areas help with regional development(Dees, 2017). By setting up the business in these areas improves the infrastructural benefits like better roads, electricity, schools, shopping malls, and water supply systems. In addition to this, these improvements can maintain the balance between developed and undeveloped areas.
- GDP : Increase in the GDP and per capital income is one of the most required objective of social economic development. Small and start-up businesses comprised of 40 million units that gives opportunities of job for more than 100 million people. This addition makes more utilization of available resources such as land, labour and capital to create products and services(Edwards-Schachter and et.al., 2015).
- standard of living : As above discussed, these enterprises increased the opportunities of jobs by which standard of living is also increased. Development in the standard of living of employees in a society is another key of economic growth. Entrepreneurship plays a fundamental role in raising the standard of living in a society. Just developed job opportunities is not enough in improving the standard of living. It also required the development in creativity and innovation which leads to betterments in the employee's life quality.
- community development : By the increasing level in standard of living, job opportunity, development in GDP and many more advantages leads in development of community(Freire-Gibb and Nielsen, 2014). In addition to this, these all above discussed features helpful in developing the situation of community and society.
P5 Determine the characteristics and skills of successful entrepreneurs
- Planning : There are diverse “p” words reckon in the business. P words refers to passion, perseverance, persistence and planning. It exists in every business but dealing with these prospectuses are different. Successful entrepreneur always consider the planning prospectus because without scheming or designing any task in organisation an entrepreneur can not attain success.
- Empathy : This is also a main identifying feature of a successful entrepreneur. By this skill or attribute an entrepreneur can lead the things and needs which is required by the customers point of view. A successful entrepreneur have this skill to identify exact what customer need to sell by you(Bruton And et.al.., 2015).
- Fairness : It is essential to be fair with everyone. An entrepreneur transacting with antithetical prospects of market such as with seller, workers or customers. So, it is required to be fair with all these prospectuses to maintain the loyalty.
- Transferable values : This characteristic is nearly connected to fairness attribute. Without believing in what they are doing and to whom they are going to be sell, entrepreneur can not build structure of business.
- Smart work : In present time where the market is cut throat competitive market, it is necessary to do smart work with hard work. Many of the employees have the attributes of smart working but they are not able to use these smart tricks because proper leading is not given. A successful entrepreneur have the quality of smart work by knowledge to how to use these smart tricks.
- Communication skills : It is one of the most skill of a successful entrepreneur. As we all know that communication is the fundamental part of every organisation(Bridgstock, 2015). Without communication no one can interconnect with others. Without communication in an organisation, business can not achieve success.
- Listening skills : In communication, just talking is not enough, listening is also compulsory. To listen the issues and complexities of the employees is required. A successful entrepreneur have the skill of listening which make differentiate him form others.
- Self starter : Entrepreneurs are the self starter. They start their business on their own responsibilities and authorities. All businessmen start their business but some of them can achieve success because they have the above discussed attributes and skills(Blauth, Mauer and Brettel, 2014).
- Creativity and innovative : To create new things is necessary to maintain the position in the market. Customer,'s behaviour is continuously changing according to the changes in the culture or market so produce the commodity according to the taste and preferences of the consumers is very difficult task which only can be done by successful entrepreneur.
P6 Assessment of entrepreneurial personality which reflect entrepreneurial mindset and motivation
- Customer comes first : This is the fundamental and primary characteristic of entrepreneurial personality that it always keep customers first in their marketing strategy. They always consider those activities by which they can grab the attention of customers and attract them towards their products and services(Bilton and Cummings, 2014). To gain higher profitability margin is the second objective of a successful entrepreneur in an organisation.
- Maintain quality control : As above discussed, a successful entrepreneur always keep customer first that is why the primary objective in this way is to maintain the quality of the product to satisfy the needs and requirements of the entrepreneurs. It is the mindset of the successful entrepreneurs that to attain higher profitability margin with the increasing in sales volume with the consideration of quality control.
- Focus on strength : Galore of the entrepreneurs centred on the get over the weaknesses of the organization but a successful entrepreneur centred on their strengths. They attempt to raise the strengths rather than overcome the weaknesses(Audretsch and Belitski, 2014). It is axiomatic that it is essential to get over the weaknesses but it does not mean to decline the strength and ability of its business. SWOT analysis is a model by which entrepreneur can analyse the strengths and weaknesses of its business.
- Control on vision : By focusing on the strengths, overcoming the weaknesses, consider the opportunities and threatening factors, company can control on the vision and mission. It is essential to become a successful entrepreneur that analyse the internal and external factors which may be affect the business. Which can be done through pestle analysis model and Herzberg's two factor theory.
- Using technological advancement : There is a huge change in the market by the digitization. To adopt the technological advancement in the current running business is not easy process because generally employees do not accept the changes in their function and activities(Amato And et.al., 2017). But a successful entrepreneur have a personality to force the employees to adopt these technologies in their current activities.
P7 How can person's background and experience can foster the entrepreneurship
There are various factors which can hinder or foster the entrepreneurship. Background of entrepreneurs includes behavioural determinants, demographics, human capital and network. Explanation of these factors as below :In person's background it includes
Behavioural determinants : This is the main factor in person's background that they all have different behavioural qualities and motivations. No person will be same. As behavioural is a dynamic process as per the changes in market or external factors so it will be the main factor which can foster the entrepreneurship(Freire-Gibb and Nielsen, 2014).
Demographics : It includes age, gender, class, religion or immigrant status. These all factors can foster the entrepreneurship in which gender is the most considerable factor. Such as aconsiderable amount of syntactic category difference survive in entrepreneurial activity. Obstacles to women's entrepreneurship are usually studied and consider approach to funding, culturally built perceptions on abilities, and conventional traits of entrepreneurs.
Human capital : There are some outlined key findings which provide the importance of human capital in the background of entrepreneur such as education, family circumstances, career experiences and causal ambiguity(Hong, Song and Yoo, 2015).
Furthermore, apart from person's background there are several psychological factors which may also hinder or foster entrepreneurship such as demandaccomplishment, withdrawal of state honour, motives and others. Family background consider size and type of family or economic status of family. Aspect of a family in business yield a point of industrial entrepreneurship.
From the above report it can be concluded that there are various types of entrepreneurship. Furthermore, it includes the characteristics of entrepreneurs which makes them different from others and successful entrepreneur. One of the main point which is attribute of a successful entrepreneur is their mindset and personality. This attributes can hinder or foster entrepreneurship. In addition to this, there are contrary environments which hinder the entrepreneurship such as family members, family background, education level and neighbours. Furthermore, this report includes the importance of small and start up businesses in the growth of social economy. From the current report, it can be resulted that Planning, Empathy, Fairness, Transferable, values, Smart work, Communication skills, Listening skills, Self starter, Creativity and innovative are the main characteristics of a successful entrepreneur. Furthermore, Customer comes first,Maintain quality control, Focus on strength, Control on vision, Using technological advancement and Identify the market are the entrepreneurial personality which reflect entrepreneurial mindset and motivation.
- Amato, C., And et.al., 2017. Regulatory modes and entrepreneurship: the mediational role of alertness in small business success.Journal of Small Business Management.55(S1). pp.27-42.
- Audretsch, D. B. and Belitski, M., 2014. The missing pillar: The creativity theory of knowledge spillover entrepreneurship. Small Business Economics. 41(4). pp.819-836.
- Bilton, C. and Cummings, S., 2014. Handbook of management and creativity. Edward Elgar Publishing.
- Blauth, M., Mauer, R. and Brettel, M., 2014. Fostering creativity in new product development through entrepreneurial decision making. Creativity and Innovation Management. 23(4). pp.495-509.