Entrepreneurship is basically a process of creating a new enterprise which includes bearing of all related risk with the aim of making the profit. An entrepreneur is an individual who takes initiative to start and run a business with limited resources and effective planning and is responsible for all risks and rewards of business venture (Brush and et. al., 2019). Mainly entrepreneur are having a mindset to start with a small business to eliminate the higher risk associated with large business venture which require more assets and finance. This assignment include various types of entrepreneurial ventures and also provide information about typology. Similarities and differences between entrepreneurship is also discussed. In this assignment impact of small business on growth of economy is also included. At last different characteristic and traits of entrepreneur and effect of background and experience on fostering of entrepreneurship is also included.
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P1) Different types of entrepreneurial ventures
Entrepreneurship can be defined as a process of setting up of a business or businesses, while considering and bearing all financial and other possible risk with the purpose of attaining highest level of profit. In every business environment different types of entrepreneurship or entrepreneurial venture are their some of which are described below:
Large company entrepreneurship-These are large sized organisation which require a large amount of finance and other resources for their set up. Large company entrepreneurship mainly operates at high scale their main motto is to earn maximum amount of profit. For having proper growth and to maintain a finite life cycle they are dependent on innovation and creativity so that new product and better services can be provided to remain successful in market through attracting more customers (Dominik and Banerji, 2019). Unilever and Tesco are a good example of Large company entrepreneurship of UK which are having a very good customer base and are also operating at international level.
Small business entrepreneurship-These organisation are relatively small in size and thus, require only a limited amount of finance and other resources. An organisation which is having less than 250 employees and operated and managed by a single private individual or a group of small number individual is known as small business entrepreneurship. These type of entrepreneurial ventures provide a significant opportunity to financial weaker section of society to start or establish a new business venture. Brightstar Financial is a example of small business organisation of UK which is providing financial and insurance services to its customers.
Local business- These are the companies or organisation which provides goods and services to local population. These are mainly small sized organisation like a local retailer shop, dairy shop, local saloon, etc. (Ferreira, Fernandes and Kraus, 2019). The main purpose of local business is to earn livelihood trough serving local people thus, its start-up cost is very low and provide a chance of self employment to local individuals. Hestory Men's Grooming is a local barber which can be taken as a example of local business of UK providing its services in Mayfair district of London .
Social entrepreneurship- These type of organisation are having a motto of creating a better world through providing social services and basis amenities to deprived or poor or helpless people. Social enterprises are focused on creating equality in society and works for upliftment of vulnerable group. Save the children is a type social entrepreneurship or NGO of UK which is making efforts for betterment of children and aim at providing a safe environment for survival of children and creating better education and economic opportunities for them (Gartner, 2019).
Types of typology
A group of people who are having similar characteristics and features are termed as a typology. Entrepreneurship or entrepreneur can be classified into various group or typology which are explained below:
Male entrepreneurs- The common features of male entrepreneurs are that they enjoy taking risk and are always focused towards better growth and expansion of business venture. Male entrepreneurs are more alert and aware about recent technological change and keeps on making innovation and technological improvements in its business venture. Male entrepreneurs mainly deals in large construction organization or in IT firms where they get better opportunity to show their skills and creativity (McMullen, 2019).
Female entrepreneurs-These type of entrepreneurs are more conservative and avoid taking higher risks. Female entrepreneurs mainly operates a small business and maintain a good relation with its customers and other stakeholders. Females entrepreneurs are more responsible towards society and always try to fulfil their corporate social responsibility and works for welfare of society and its stakeholders (Pages, 2019). Female entrepreneurs are more attracted towards fashion industry and small retail shops and mainly deals in clothing and other fashion accessories.
P2) Similarities and difference between entrepreneurial ventures
Similarities between various type of entrepreneurial ventures (Large company entrepreneurship, Small business entrepreneurship, Local business and Social entrepreneurship) are as follows:
- All these ventures aims at timely achievement of their goals and targets for which many factors are made by them (Pelz, 2019).
- All these organisation works for providing maximum satisfaction and best services to its customers to make its business successful.
Difference between entrepreneurial ventures
Large company entrepreneurship
Small and local business entrepreneurship,
Importance in economy
Large company provide better international or global relation which enhance growth rate of an economy.
Small and local business have a very crucial role in development of economy through providing job opportunity to weaker section of society.
Social entrepreneurship plays an important role maintaining equality in society or economy.
Large organisations is having a significant impact on growth of nation as plays an important role in enhancing foreign reserve of a nation through providing better international trade.
These organisation creates a positive impact on economy as provide better products and services to local people and also generates new opportunity of employment at local level.
It creates a positive compact on lives of vulnerable and poor people through fulfilling their basic needs (Randolph, Li and Daspit, 2019).
Scale of operation
Large company operates at high scales and have a vast are of operation and mainly have a large product portfolio to attract more customers.
Local and small business mainly operates at local level and its services are limited to local areas.
Scale of operation of social enterprises depends upon the numbers of employees and amount of charity and donation.
Geographical area served
They mainly operate at national level and always have their headquarters in big metropolitan city. They always desires to expand their business up to global level to get better market share and to attract more customers.
Only a limited geographical area is served by these organisations mainly, up to a district or city level.
They are not having any geographical limitation and can operate at local, national or international level as per the wish and desires of members.
The main features of large companies include need of huge amount of finance and resources and also have a large workforce (Ratten, Costa and Bogers, 2019).
Only a limited amount of finance and resources are required to set up a small or local business.
Financial requirements of social enterprises is met through charity and donation thus, does not create any liability for members.
There main objective is to maximize its profit and market share.
Main motto of small or local business is earn adequate amount of profit for better survival and living standard.
Main objective of social entrepreneurship is to provide welfare or social services for betterment of people.
P3)Statistical analysis of impact of small medium enterprise on economy of UK
Small and medium sized industry plays an important role in development and growth of an economy. They increase the number of job opportunities in an economy and also enhance the productivity or growth level (Runyan and Covin, 2019). Small business facilitates better growth rate and GDP of a nation which increases its financial strength and helps in building a strong economy. Use of following data and statistical graph is made to evaluate the importance and impact of small medium enterprise on economy of UK.
Illustration 1: Percentage of employment, turnover and businesses in different sector of UK,2016)
(Source 1 : Percentage of employment, turnover and businesses in different sector of UK,2016)
From the above graph it is clear that small companies play a significant role in growth of UK economy. In UK, small business account for 99.3% of all private sector at the start of 2016, and 99.9% were SMEs. It can be analysed or evaluate from above bar graph that small businesses are playing a crucial role in growth and development of economy of UK. It is clear from above graph that 99.3% part of all private sector organisation is formed by small businesses where as large business accounts for only 0.1%. Small businesses are also having an important role in creating more employment opportunity as SME accounts for 15.7 million jobs which is 60% of all jobs in private sector. Not only this, the annuls turnover of all the SME of UK is £1.8 trillion which is almost half of total turnover of UK (UK SME Data, Stats & Charts. 2017). Thus, it can be said that SME is having a very important and vital role in growth of economy of UK (UK SME Data, Stats & Charts,2017).
P4) Importance of small business and business start-up in growth of economy
Importance of small business and business start-up in growth of economy can be understood from following points:
At national level- One of the main problem faced by all the economise or nation is related with high rate of unemployment as larger organisation are not capable of providing employment to all individuals especially at local level. Thus, small business and new businesses start up solving this problem of unemployment though providing better chance and opportunity of new employment. Only a limited amount of resources and finance required to start a new small business which can be easily affordable by any individual. The risk of failure is of a small business is also low as compared to a large organisation as different types of tax benefits and rebate are provided to small business (Satar and John, 2019). Thus at national level, small business is important for generation of better employment opportunity to solve the problem of unemployment. It also improves the productivity and GDP of a nation.
At local level-Small and local business playing an important role in preserving local art and culture through providing a better opportunity to local artists to start their own business. Small business is also providing better quality product to local people at relative low price. Thus, it can be said at local level small business are necessary to improve the standard of living of local people through providing better product and more revenue by creating opportunity of self-employment.
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P5) Characteristics, traits and skill of successful entrepreneurs
The scope of entrepreneurs is quite wide which ranges from local entrepreneurs to global and societal entrepreneurs (Stirzaker, Galloway and Potter, 2019). To develop an understanding about entrepreneur skills, traits and characteristics of three entrepreneurs is explained below:
Elizabeth Gooch is currently a CEO and founder of EG solution which provides software operation management to its customers. She has started its business as a local or small scale business operation.
- SmartWorker- Elizabeth Gooch belies in doing smart work and always try to find better and more creative way of doing a work which is necessary to achieve the desired goals. Mangers are not so good in doing a work smartly and make use of traditional process for doing any task which reduces their efficiency.
- Passionate-Elizabeth Gooch is very passionate towards her work thus, does not feel tired or boredom from her work which increases her efficiency. On the other hand mangers take their work as an official duty and does not have much passion and love for their work.
- Innovative Thinker- Elizabeth Gooch is having a very innovative mind which is helpful in bringing new ideas in business which is necessary for any successful entrepreneur. Managers are not so good at innovation and creativity thus, are not much successful in their work.
- Leadership Skills- Elizabeth Gooch is very good at providing guidance and motivation to its employees which makes achievement of targets easy through creating a coordination in efforts of all employees. This skill of leadership is not founded in mangers as they believe in giving orders to their employees instead of guiding them.
- Confidence- For success of any entrepreneurship it is necessary to have confidence and faith in one decisions. Elizabeth Goochn is always confident about her ideas and beliefs which makes her decisions and ides more effective. Mangers are mainly doubtful about their ideas and always a have a fear of failure which hamper their performance.
- Disciplined- Elizabeth Gooch is very disciplined and always perform all her work on time with great efficiency and self-control. Managers are not having much self-control and also lacks in maintaining proper discipline.
He is a well-known Bangladeshi social entrepreneur, banker, economist and civil society leader also awarded with Nobel peace prize.
- Energetic –Muhammad Yunus is very enthusiastic and energetic about his work thus, he always feel motivated and cheerful towards his work. On the other hand, mangers are little lethargic thus, started feeling sophisticated and dull for its work.
- Open minded- Muhammad Yunus is quite open minded and always try to get better ideas and approaches for welfare of all stakeholders. Mangers are not so open minded and freak with any kind of change.
- Decisiveness - This trait of Muhammad Yunus provides him ability to properly understand a problem thus, makes him capable to take better and more successful decisions. On the others hand mangers mainly remain confused thus, not able to take firm decisions.
- Versatility- Because of this traitMuhammad Yunus is having a capability to perform various activities and functions which increase his efficiency and productivity. Mangers are not having much versatility thus they are not able to perform multi task.
- Time management - This skill of Muhammad Yunus makes him able to timely complete his work which reduces chances of last minute chaos. Mangers are not good at time management thus their targets are not achieved on time.
- Resilience –This skill of Muhammad Yunus provides him ability to handle the stress and adverse situation. With the quality of eagerness and determination he conquers all difficulties and keeps on moving. Mangers lack this skill of stress management thus feel stressful which hamper his performance.
He is an American business magnate and a global entrepreneur.
- Risk taker– Bill gates likes taking risk thus he is able to garb all possible opportunity while mangers are little conservative.
- High Perseverance– Bill gates makes continuous and efficient efforts to achieve the desired goals despite of all failure and difficulties. On the other hand, managers lack perseverance thus, they give up their targets very soon in case of adverse situation.
- Creativity– Bill gates is a highly creative person thus, he keeps on making innovative changes in his activities to meet the demands of consumers. Mangers are not much creativity and fear from failure thus not make much innovation.
- Determination- Bill gate is determinant and passionate for his work thus, instead of having fear from failure he tries to learn from failure. On other hand mangers are afraid from failures and tries to eliminate that.
- Communication skills– This skill has made Bill gate most successful as effective communication is key to success. With this skill Bill gates become capable to attract more customers and partners for its business. Manger are not having much effective communication skill thus chances of conflicts and confusion are more at workplace.
- Strategic Thinking-Bill gates is having skill to think strategically which improves his planning and decision making which is necessary for success of an organisation. Mangers believes in thinking simply without making any smart or strategic effort.
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P6) Entrepreneurial motivation and mind-set
Entrepreneurial personality is a sum total of behaviour and attitude of an entrepreneur which reflects the level of entrepreneurial motivation and mind-set (Thomas and Thomas, 2019). For the analysis of aspects of entrepreneurial personality use of OCEAN model is made which is described below:
- Openness– Individuals having this type of personality traits are very bold and creative and have very wide range of interest.
- Conscientiousness–People having this personality are mainly goal oriented and have effective organisational abilities (Tornikoski and Maalaoui, 2019).
- Extraversion– Individuals having this trait are energetic, emotionally expressive and more talkative. These kind of people are also more focused and responsible towards society.
- Agreeableness– These kind of persons are helpful, trustable and generous. This personality trait is characterised by feeling of kindness and empathy.
- Neuroticism– People having this type of personality are unhappy and emotionally unstable. They are full of sadness, anxiety and mood swings (Welter, Baker and Wirsching, 2019).
Bill gate is having openness personality trait as he is bold and creative in his work. He is risk taker which makes him bold and ability of strategic thinking makes him more creative and innovative.
Muhammad Yunus comes under Extraversion personality trait as he is a social entrepreneurs who is more concerned towards society. He is also quite energetic thus, remain enthusiastic and cheerful towards his work.
Elizabeth Gooch is belonging to Conscientiousness personality trait as she is goal oriented and very disciplined in her work which provides her better organisational capabilities.
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P7) Background and experience of entrepreneurs
Impact on fostering entrepreneurship
The financial conditions of family of Elizabeth Gooch was not so good and his father was having a small businesses thus, not capable to earn much money.
She had completed her study in entrepreneurship at 18 and soon started working for HSBC bank.
Father of Elizabeth was an entrepreneurs thus, provide proper guidance to her daughter in selecting her way as an entrepreneur. Her experience of working in a bank is also helpful for her as it provide better understanding of financial market.
He was born in a Bengali Muslim family and his father was a Jeweller. His entire childhood was spent in a small village of Bangladesh.
He obtained his PhD in economics from Vanderbilt University. Hiswork experience started from 1976 when he came up with an idea of microcredit to help poor villagers.
His is basically from a village of Bangladesh thus, from childhood he was aware about the challenges faced by poor villagers. This experiences of his life motivated him to provide better welfare services to these villagers.
He was born in Washington and his father was a prominent lawyer. He belongs to a upper middle class family.
Gate was a voracious reader in childhood which has provided him a lot knowledge. He was enrolled at Harvard university but in 1975 he drooped college to pursue his business.
From childhood he was actively involved in student affairs and leadership and atmosphere of his family encouraged him to become competitive and strive for excellence. This has provided him leadership quality and his habit of reading book has also provided him many knowledge.
From this report, it can be concluded that many types of entrepreneurial ventures are there in a business environment which includes, larger, local, small, etc. various typology of entrepreneur is also there like male and female entrepreneur. Small business plays an important role in growth of economy at different level like at national level it create more job opportunity. There are various skills and traits of entrepreneur which makes them successful and different from mangers. At last it can be summarised that background and experience of entrepreneur have significant effect on its fostering entrepreneurship. Assignments online help can make a big differnce in one's life and can make his career.
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Books and Journals
- Brush, C. and et. al., 2019. A gendered look at entrepreneurship ecosystems.Small Business Economics.53(2). pp.393-408.
- Dominik, M. T. and Banerji, D., 2019. US community college entrepreneurship educator practices.Journal of Small Business and Enterprise Development.26(2). pp.228-242.
- Ferreira, J. J., Fernandes, C. I. and Kraus, S., 2019. Entrepreneurship research: mapping intellectual structures and research trends.Review of Managerial Science.13(1). pp.181-205.
- Gartner, W. B., 2019. A good man is hard to find: project management, entrepreneurship and serendipity.International Journal of Managing Projects in Business.12(1). pp.114-119.
- McMullen, J. S., 2019. A wakeup call for the field of entrepreneurship and its evaluators.Journal of Business Venturing.34(3). pp.413-417.
- Pages, P. W. P. E., 2019. Professor Dr. Rüdiger KabstHuman Resource Management, Small and Medium-Sized Businesses and Entrepreneurship.
- Pelz, M., 2019. Can Management Accounting Be Helpful for Young and Small Companies? Systematic Review of a Paradox.International Journal of Management Reviews.21(2). pp.256-274.
- Randolph, R. V. D. G., Li, Z. and Daspit, J. J., 2019. Toward a Typology of Family Firm Corporate Entrepreneurship.Journal of Small Business Management.
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- Runyan, R. C. and Covin, J. G., 2019. Small Business Orientation: A Construct Proposal.Entrepreneurship Theory and Practice.43(3). pp.529-552.
- Satar, M. S. and John, S., 2019. The critical success factors of social entrepreneurship in India: an empirical study.International Journal of Entrepreneurship and Small Business.37(3). pp.309-341.
- Stirzaker, R., Galloway, L. and Potter, L., 2019. Business, Aging, and Socioemotional Selectivity: A Qualitative Study of Gray Entrepreneurship.Journal of Small Business Management.
- Thomas, B. C. and Thomas, A. M., 2019.The Business of New Process Diffusion: Management of the Early Float Glass Start-ups. Routledge.
- Tornikoski, E. and Maalaoui, A., 2019. Critical reflections–The Theory of Planned Behaviour: An interview with Icek Ajzen with implications for entrepreneurship research.International Small Business Journal, p.0266242619829681.
- Welter, F., Baker, T. and Wirsching, K., 2019. Three waves and counting: the rising tide of contextualization in entrepreneurship research.Small Business Economics.52(2). pp.319-330.