Entrepreneurship is define as the ability and willingness for developing, organising and managing a particular business venture along with the risk associated with it in order to make a good profit. Entrepreneurship is the communication of men, material, machine and capital which in result produces profit. There are various kind of entrepreneurial ventures which are discussed in this report. Also certain qualities of entrepreneur are been explained that lead to the successful implication of the business in the market and the effects of these small ventures in the economy (Amato and et.al. , 2017).
P1. Different types of entrepreneurial ventures and their relation with typology
There are following types of entrepreneurship ventures which are as follows:
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- Small Business Entrepreneurship
These are the type of ventures where the person runs the business for accomplishing their objectives to earn profit. Ina company, they hire members of the family or employees who are local to run businesses for them or along with him or his family members. The measure for the success is very simple as they are satisfied with the fact of paying bills without any problem and can avail small luxuries such as travel. This small business entrepreneurship is capable of earning good profit in a market. Examples are grocery store, salons and street food vendors
- Scalable Start-up Entrepreneurship
It is that kind of entrepreneurship venture which is considered to be business which has emerged newly which has an aim to meet the needs of particular market through providing various offerings .They has a high failure rate but even a small rate of success can influence the business a lot. They are the risk taker and have an attitude of changing the world with some innovative concepts. Examples for this venture are web and software based businesses such as twitter, face book etc.
- Large Company Entrepreneurship
These are large firms which have huge employees of at least 5000 strength and have a turnover for about 1.5 billion. It includes the process of introducing new ideas and opportunities for business within their established organisation that helps to enhance the competitive position of the company.
- Social Entrepreneurship
Social Entrepreneurship is those kinds of businesses which are considered as innovators but also focuses on the status of world and thinks about the welfare of the society. They are known as the agents to bring transformation in the world by introducing various positive changes. Example is Hamlet Food who has a partnership with Gawad Kalinga whose aim is to eliminate poverty (Brenkert, 2017).
Entrepreneur Ventures are mainly focused on providing advisory services to those companies which are at early as well as at mid stage. They also provide help to those companies which are facing trouble by enhancing their business model. Role of these ventures depends upon the company's stage. They always take on an board for providing advices and helping them to develop their strategies along with their implementation plans and improving the networks.
P2. Similarities and differences between various entrepreneurial ventures
- Emphasis on Team or Individuals
Here the investors in private businesses invest on the basics of company's team for leadership and other organisation that provide support to it, also earning a good profit against it. Whereas investors for the social ventures are those who are willing to donate their money for charity or a noble cause rather than for earning profits.
- Perceptions of Values
For an entrepreneur who runs a business, their values lie in earning profit by providing offerings in the market place to those who can afford to buy it. They are dependent on shareholders and investors for profit generation. For the social entrepreneurs also, values lie in earning profit but not for themselves, instead to provide support to the cause. They are totally dependent on the generation of social benefits to society and also transforming it which lacks resources for fulfilling their needs.
- Measuring Profitability
Various business entrepreneurs focus on earning profit which provides benefit to their stakeholders including shareholders or private investors. Their measure for profitability is increase in the interest of various stakeholders, whereas social entrepreneurs also focuses on earning a good profit and the measure of profitability is determined by how much they are able to contribute for the noble cause which benefits the society.
- Approach to Wealth Creation
It is very different as business entrepreneurial ventures are driven to provide some innovative offerings in the market which provides benefits to the consumers, which results in earning wealth against it whereas social entrepreneurial ventures creates wealth and use it just as a tool for effecting social changes. The degree of changing the minds and reversing sufferings or injustice represents the success of social entrepreneurship venture
Despite having differences, every entrepreneurial ventures have some similarities which can be having an objective which is the base of the business, earning a good profit for fulfilling their goals and objectives, providing various products and services to the commercial markets, satisfying the need, wants and desire of the customer, creating a unique position in market, finding the investor for supporting their businesses, bringing innovative ideas to the society, the process of exploring every aspects related to business never goes out of the legacy, growth is the major concern which determines the measure for profitability (Dees, 2017).
P3. Impact of micro and small business on the economy
Small businesses are very important for creating job, to support community and also entrepreneurship. They might not generate as much revenues like larger organisation but they are t integral part of an economy. They are considered as the building blocks for corporate giants.
There are positive impacts of small businesses which are discussed below:
Not every small business remain small in the marketing , there are some examples like Wal-Mart, Burt's Bees began as a small ventures but now they are considered to be biggest ventures which established themselves in local as well as international markets, providing support to economic prosperity of a nation.
Mapping the future
One of the major aspects of the small businesses is that they have a crucial contribution to the local economies by introducing innovations and growth to it. They tend to develop the spirit of entrepreneurship by attracting various individuals who have the ability to invent new kind of products. This is mostly observed in computer and tech industries.
Returning the favour
This venture has a positive influence on the community as well as nation also. When customer starts visiting to these small companies, they start to give back on the local communities. They support the local community by paying taxes which includes local taxes as well, which in result support the functioning of various schools and local government offices, police departments and others. As they are highly customer orientated, who possess an ability to adapt the changes which occur in the environment with a quick pace (Drucker, 2014).
SMEs and the Economy
- Small business enterprises has a share of about 99.3 percent in the private sector of UK
- Total employment in UK is about 16.1 million which consist of 60 percent in the private sector
- The combine annual turnover of small ventures s about 1.9 trillion which is 51% of turnover of all the private sector.
- They are important because they represent about 99 percent of all the companies and their number of hiring employees is increasing
- Most companies in United Kingdom are independent which do not belong to any enterprise group but small sized enterprises are the important part of that group. It is basically in the field of manufacturing.
- Dependent category in SMEs are very crucial for employment and Gross value added(GVA), especially for smaller countries .Therefore, a large part of the total growth can be created by small ventures which can be attributed to SMEs which are dependent.
- In most of the countries,SMEs which are dependent are more open for international trade as compared to independent SMEs (Kazanjian, Drazin and Glynn, 2017).
- They are also exposed to certain risk which are associated with international trade.
Total Percentage Share of Entrepreneur
There are many business which has completely transformed the economy such as Lend invest, Captify, Hello fresh, Y plan are now considered as esteemed business. They have raised their business over £213m in a combined manner.
P4.importance of small businesses and business start-ups on the growth of the social economy
Small businesses and business start-ups have an important impact on the growth of the social economy which are discussed as below
These small new ventures brings competition into those areas which becomes stale. A start up which is agile is able to provide innovative new technology which is faster than those who are already present in the market, these ventures are always looking for the change in thinking and behaviour of the customer by providing them new kind of products.
Small businesses mainly operates through in local areas which provides them a strong urge to hire local employees and providing opportunity to earn or to do business with them whereas big corporates moves towards the new areas and already has a team which can improve the city's population but does not provide any new job growth in the particular region.
The main feature of a small businesses is the flexibility and can be stared by any individual which in result makes them more diversified in the areas of from, function, culture and potential as compared to large corporations. The greater diversity leads to the economy to face tough competitions effectively with great ease.
Many start ups and even small businesses fails which can be regarded as a positive aspect because this turnover gives other a chance to learn, recover and rebuild which provides benefit for the long run and leading them towards new growth.
They have the highest percentage of providing employment in the private sector. These businesses have the capacity to employ employees less than 500 which in result provide job opportunities to various type of employees and depend upon them for success (Kirzner, 2015).
Small businesses are important as they provide the opportunity of exporting to other nation.97 percent of the total exporters are these small ventures which is able to produce 26 percent of the total export value through their various offerings which they ship to other countries. This aspect of exporting goods helps to keep the economy strong by generating huge revenues.
P5. characteristic traits and skills of an entrepreneur
There are various characteristics and skills in Richard Branson which leads him towards the direction of success:
He has the best quality of being self motivated. He was always ready to take various challenges and face obstacles that create resistance in the achievement of their objectives.He always has the desire to achieve more and beyond the expectation. There were certain qualities like passion, pride and desire which made him better day by day and also to motivate their subordinate to achieve extraordinary achievements.
He always try to hold people around him and themselves to a standard which is very high in both personal as well as professional level. To achieve that high standard one that to make their values strong and be committed to the words or actions and not to make excuse for any failure.
He is regarded as the confident personalities. He might not have it already but with practice and learning it can be achieved. It is regarded as the inner perception of ones ability to perform a particular role. He confidently handles every situation and takes decision which can be truly successfully or not. HE IS open to new experiences and welcomes every failure.
Optimism and Positivity
He is an optimist and a positive person. He perceive every aspects of a situation very positively and is a opportunity seeker. He has a quality of being optimist which means he seeks for positive aspects. Whether the project is too difficult or there are many obstacles for accomplishing the objectives , they face it with full energy and tries to overcome every difficulty (Meyer, Neck and Meeks, 2017).
Most of the successful entrepreneurs are having a magnetising and charming personality which inspires other people who are around them. He promotes devotion in his subordinate so that they make do the work with a zeal of providing quality productivity by facing every challenges for completing that particular task with full confidence. This characteristic of being charismatic requires the person to go out of their comfort zone and learning how to command the aspects like attention and speaking to groups of various sizes and handling them effectively.
P6.aspects of the entrepreneurial personality that reflect entrepreneurial motivation and mindset
Richard Branson had basic concepts which reflects the entrepreneurial motivation and mindset can be curiosity, connections and value creation. These are not regarded as skills instead are considered as an attitude and dispositions. These aspects of entrepreneurial personalities are very different from technical knowledge and skills for solving problems and can be regarded as disciplinary practices and knowledge.
Where his curiosity is considered as demonstrating various factors regarding the change in the world. Exploring the contrarian view for the solutions which are accepted. Another aspect such as connections includes integrating information from sources fro gaining insight and also assessing and managing risk associated with it. Creation of value includes identifying those unexpected opportunities which can create extra ordinary value and can persist through and also can learn from failure.
The personality of Richard Branson is majorly shaped by the family upbringing, lifestyles, cultural differences and personal motivation. He left the school and joined as an apprentice which leads him to provide the knowledge of the field for which he was curious. He was from from that kind of family where freedom to express was provided to every family member than he is able to think various innovative and creative ideas, his out of the box thinking is always appreciated and motivated in the family that boost his confidence to develop innovative things for the world. His looking forward and hard working kind of lifestyle makes him to think for something bigger and achievable in-spite of ordinary things that can be achieved in life. Ads he got early exposure to the outer world in adolescence it lead to understand the cultural difference which in future helps him to make policies with respect to these differences and making people to work accordingly. His Personal motivation played a very important role when the people surrounding them shows faith to him then he gets personally motivated and is able to take appropriate decision (Obeng and Blundel, 2015).
P7.how a person’s background and past experiences can hinder or foster entrepreneurship
Richard Branson who is known as the CEO of the Virgin Group belonged to the family where the independent thinkers were allowed to express and the society supported his idea. He belongs to a family here his father was a barrister as he was provided an independence for expressing his views effectively and along with that he was motivated to think in a logical manner and should ask logical reasoning for everything that is occurring around him. His mother was a flight attendant that provided him a base for thinking about airlines and getting to know its every detailed information. He was a dropout but was supported by the family for every decision this took him towards the journey of being an entrepreneur. From the childhood he was very creative and innovative but due to a disease called dyslexia he was not able to continue his school but this does not lead his mindset to get demotivated and he pursued there where he wanted to see him. As There are various cultural practices and values which are followed by every society and also has a influence on actions of the individual which is stated above. Different culture and belief also effect the mindset of individual as some beliefs does not allows to practice trade as their family profession is something else which one cannot change. Family background affects the entrepreneurship quality of a person; factors such as family size, type and economic status influences a lot. As some follows the paternal business which they continue in future. Some wants to start a trade where economic status of a person facilitates this decision, he can start his own business very easily otherwise he has to fund the sources for investment for his project which might be not that easy as it sounds (Saleem, 2017). Education of a person leads him to understand the outside world and provides him basic knowledge and also skills that helps him to deal with problems that are most likely to occur daily. Education plays a crucial role in inculcating entrepreneurial values .With the help of education he gets introduced to various aspects for the business which he might not have been discovered earlier. Attitude of the society also matters a lot as if it supports the individual for his new venture and tries to accept his new ideas , then he might get motivated and builds up confidence to provide more offerings to satisfy their needs, wants and desire and on the contrary if the society shows the negative attitude then he might get depressed or demotivated and could be able to perform or think to provide more creative ideas. Motives forces the man to take actions and entrepreneurial growth requires motives such as making of profits, acquisition of prestige and attaining social status. A person who is ambitious and talented might take risk and innovate. The strength for these motives are provided by culture of the society (Scarborough, 2015).
It has has been concluded that various kind of entrepreneurial ventures are Small, large, scalable start ups and social entrepreneurial ventures which has many differences and similarities. These small business plays an important role for the economy as they provide employment and also generate revenues. These small ventures are run by entrepreneurs which has some quality traits like self motivation, standards, optimism and etc. which makes them a successful in their field.
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.
- Brenkert, G.G., 2017. Entrepreneurship, ethics, and the good society. In Entrepreneurship (pp. 85-128). Routledge.