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Entrepreneurship And Small Business Management BTEC HND Business Level 4 Regent College

INTRODUCTION

Entrepreneurship is the skills of the person that support the person in establishing the new business and operating it in smooth manner. Small business contributes well in the economy development of the nation (Schaper, 2016). Present study will discuss different types of entrepreneurial ventures and their topology. Furthermore, it will explain similarities and difference in these different enterprises. Furthermore, report will describe contribution of small business in the growth of economy. In addition, skills of entrepreneurs will be illustrated with the examples.  Study will examine impact of background, experiences on entrepr

TASK 1

P1 Different types of entrepreneurial ventures and topology

            Entrepreneurship is the ability of the person that makes the person able to establish a new business and earn profit (Schaper. and et.al., 2014). There are several ventures that have unique character tics. These are explained as below:

  • Local business entrepreneurship: It is the type of business which conducts at small level. Travel agents, plumbers, stores etc. are examples of such type of business units.  These are opened by single person or by the family members (Abreu and Grinevich, 2013). Their main agenda is to earn profit for their survivals. They have limited funds thus; they have to carry out the operations at limited areas. They invest own money in the business. They conduct market research and analysis needs of consumers. On the bases of their needs they offer them goods and services. It supports these entrepreneurship in generating profit ((Stimpson and et.al., 2016)).Their topology is to earn more profit and sustain in the market for longer duration.
  • Scalable start up entrepreneurship: It is another type of business. They have innovative ideas that support the business owner in attracting investors (Stimpson and et.al., 2016). The target of the organization is to implement innovative ideas so that unique products can be provided to the consumers. In order to accomplish their objectives they always try to recruit skilled people those who have fresh talent. This supports in bringing innovation in the business. Silicon Valley is the great example of such type of entrepreneurship venture. Their topology is to serve innovative products to the market and offer amazing services to consumers (Scott, 2016). They have such amazing ideas of new technologies that support these firms in managing their operations well and gaining success in the market ((Stimpson and et.al., 2016)).
  • Global entrepreneurship: They are the large business units. Their main focus is on the growth and expansion of business unity. They always concentrate of needs of consumers and look at the competitor strategy. According to these elements, these firms make their strategy. This helps them in gaining competitive advantage and sustaining in the market for longer duration. They have adequate financial resources (Dorantes, Hallam and Zanella, 2017). They get funds from banks or other investors. That funds support these entities in conducting their business at large scale. They have advanced technologies which supports the entrepreneurship ventures in minimizing mistakes and enhancing efficiency level of operation.
  • Serial entrepreneurship: They are such ventures which pay more operations on day to day functioning of business. Such type of business is developed by other persons and these entrepreneurs help these firms in their expansion. For example Sir Richard Branson is the person who has supported in development of Virgin group (Schaper, 2016).
  • Female entrepreneurship: They are the business units those which are run by female person. They take initiative to start a new business and work for making it large organization.
  • Social entrepreneurship: they are another type of ventures those which work for social welfare. Their agenda is not to earn profit, they just work for the welfare of population (Stimpson and et.al., 2016).

Activities of Entrepreneur

Entrepreneur are those business person (small or big) who takes lots of responsibilities of company and manage them efficiently. Here is the work they do.

They check for the products to be sent to the clients. They plan for new products to be created. The better the quality of product, the more the sale will be. And this gives profit to business. As they know the requirement of customer so can create another product and make their clients happy and this can increase the growth. They connect with everyone. They build healthy relations with everyone around to study human behaviour.

Entrepreneur time to time plans for new and exciting things that benefit the company. It can be either developing new ideas for present business or new product or can be planning for next business. They can provide new ideas on marketing. They have the ability to mentor someone and that makes them different from others as employees under them learn from them.

Difference between Intrapreneur and Entrepreneur

Basis of difference

Intrapreneur

Entrepreneur

 

Level of dependency

Intrapreneur (employee) is dependent on entrepreneur.

 

Entrepreneur (owner) is independent on his own actions

Fund raising

No involvement in fund raising activity

Funds are raised by the former themselves required for carry out operations

Risk-taking attitude

They does bear full risk associated with the business operations

Entrepreneurs

 are risk –bearer

Operations

Intrapreneur operates from within the company itself

 

The former operates from outside the company

Micro ventures: These are such entities those which conduct their operations at micro level and these firms do not employ many employees. These firms implement maintenance of working business model in order to sustain in the market for longer duration. These micro entities are run by limited number of people and all these persons invest their own capital in order to run business effectively.

Small ventures: These are such ventures that focus on incremental strategic growth aspects.  These organizations earn moderate revenues. They hire less than 50 employees at workplace those who contribute well in achieving goal of business unit. The main aim of small ventures is to raise their profit and sustain in the market for longer duration.

Medium ventures: These are another type of ventures those which adopt scalability model.  They are able to take bank loan and collect funds from venture capitalists. These enterprises are able to offer good quality goods. Their main agenda is to gain competitive advantage and expand their business across the world.

P2 similarities and difference between entrepreneurial ventures

Each venture is different from others and have own uniqueness. One of the major differences between global and local entrepreneurial venture is their size and scope. Local ventures are conducting their operations at limited areas (Schaper. and et.al., 2014). They have limited resources thus, they are of small size. Whereas global ventures operate across the world. They have huge funds which support in expanding their business and running it in smooth manner. These global businesses are able to hire more than 50 employees in organization. Whereas local ventures have to recruit limited people in the workplace. Global entrepreneurial ventures implement tall structure. As they have many branches in many locations thus, they cannot directly communicate with each employees thus, they adopt tall structure whereas local business adopt flat structure so that their workers feel satisfied in the firm and retain in the organization for longer duration (Abreu and Grinevich, 2013).

Female and male entrepreneur ventures are different from each others. In the female ventures a woman take initiatives to run the business. Individual control over the firm and carry out entire operation in their own supervision. Whereas Male venture are run by Male person. Individual always take risk so that entity can grow well in short duration (Stimpson and et.al., 2016).

Serial ventures monitor day to day operations of the business. They have limited funds. They generally gets funds from close people such as families, friends etc. Whereas global organizations have adequate sources of collecting funds such as bank loan, investors etc. They earn high profit as compare to serial ventures. Agenda of serial entrepreneur is to provide innovative products to the consumers where global business units concentrate on expansion of business by providing satisfactory services to the end users (Dorantes, Hallam and Zanella, 2017).

Difference between public and private entrepreneurial ventures

Private organizations works to generate more profit but public firms aim to offer high quality products and services to consumers. Private firms are able to make their decision as per their own concerns. They do not have to bear interruption of government but in public firm’s government take decision for conducting the operations. Stake holding of government in public firms are high as compare to private entities. Private companies do not much bother about

Similarities:   On other hand both private and public organizations like to serve their consumers well. They always ensure to satisfy their consumers well so that companies can retain its workers in the organization for longer duration. Private and public firms both work to earn more profit and sustain in the market for longer duration.

Apart from many difference there are many similarities in these various ventures. On of the main same thing between local and global entrepreneurial venture is that they both try to serve their consumers well. They know that consumers are the key stakeholders of the business. Overall success of business unit highly depends upon these people. Thus, they always conduct market research in order to identify needs of end users (Schaper. and et.al., 2014). According to their needs they offer them goods and services so that consumers become loyal towards the brand. Both try to retain its skilled labor in the workplace for longer duration. They always try that their talented people share their innovative ideas so that entity can make positive changes in the firm which can support in the growth of the entity.  Serial and female both ventures concentrate on implementing new things in the business that can support in the growth of business unit (Stimpson and et.al., 2016). Social entrepreneurs and serial ventures have similarities in developing the products. They both try to satisfy their consumers by offering them such products that can fulfill their requirements (Stimpson and et.al., 2016).

TASK 2

P 3 impact of micro and small business on economy

Micro and small businesses are such firm that operates their business at limited areas. They have limited number of employees and have limited funds to conduct their operations. These firms always work for the development of economy condition (Stimpson and et.al., 2016). After Brexit many big organizations have faced huge complication. Britain was the country which was highly depended upon the export and import business. But after Brixit trade relationship with the nations have been finished. This has created issue for the large organizations to carry out their business (Stimpson and et.al., 20166).  They have terminated most of these employees at that time which has created issue for the nation because at that time value of currency got down to great extent. At that time small business have contributed well in developing economy condition of the country. In the year 2014 these small and medium size firms have generated 5.2 million revenues. That has helped in improving GDP rate. Furthermore, when big firms were failed to conduct their operations in smooth manner that time small firms have given jobs to many people and has contributed in increasing employment opportunities for them (Abreu and Grinevich, 2013).

Number of SMEs start-ups in UK

Approx. 6,60,000

Number of employing business

1.3 million

Number of employments provided

1.61 million

Annual turnover of SMEs

1.9 trillion

 

The above depicted table clearly shows that contribution of small business enterprises is highly significant in offering employment opportunities. Hence, referring the level of turnover and employment it can be depicted that contribution of small business start-ups is highly significant in the economic growth and development.

P 4 Explain the significance that small businesses on the growth of social economy.

Statically records show that UK is the country where many small size business are running smoothly. They are providing quality products at affordable rate to the consumers. It approximately contribute 5% in the economy development of nation (Stimpson and et.al., 2016). From the records of 2015 it is shown that these micro firms have helped in reducing 3% poverty rate. These entities have given job opportunities to the young people by this way per capita income of the nation has been improved.   UK is the region where every year small business contributes in improving standard of living of approx 65% population (Abreu and Grinevich, 2013). There are many people those who are educated but are not having experience. Thus, big organizations do not hire these people. In such condition these micro firms give them opportunity to work with them and gain experience. By this way they get chance to work with the large business units. This opens many career opportunity options for them that assist in reducing poverty for the nation. In this manner small and micro firms contribute in developing economy condition of the nation.

United Kingdom is the tourism destination where every year many travelers come and spend money (Schaper, 2016). With the help of this activity local firms get chance to generate more profit. By this way these entities pay more tax to the government. This money is utilized by them for the development of country.  4% employment is generated by small and micro organizations every year in the nation. That has supported in providing income sources to the public and fulfilling their basic needs. When Uk was suffering from economic crises at that time these small corporation have contributed well in balancing the condition of the nation and helped in increasing value of currency (Stimpson aet.al., 2016).

TASK 3

P5 Characteristics as well as abilities of successful entrepreneur

A person who has desire to become successful entrepreneur needs to develop some special capabilities as well as   core competencies. Successful entrepreneur also have depth knowledge about business. These people have some special qualities such as high risk bearing capacity, high influencing power which allows them to differentiate themselves from other people within an enterprise. Successful entrepreneur also have leadership qualities which are generally used by them for guiding as well as motivating people to work for benefit of company. These people also have decision making capacity which helps them in making suitable plans , strategies or judgment for business. In addition to this, an entrepreneur also haver certain other qualities as well as skills such as :

Freedom directed-It is the unique quality of successful entrepreneur is that they have experience which helps them in managing the business in systematic as well as effective manner.

Knowledge about managing business-

Visionary – These people have high visionary power which allows them and they are realistic in nature. Successful entrepreneur establishes Smart objectives which are to be achieved by an employee within the specific time duration. They have high analytical skills which an individual used for identifying the methods or innovative ways to drive firm towards accomplishment of objectives.

Persuasive- Successful entrepreneur has the capability as well as the knowledge about the techniques which can be used for dealing as well as coping up with difficult as well as complex situation. An individual has high potential to transform risk into opportunities.

It is still topic for the debate whether entrepreneur born or made. Many of the authors have founded that an entrepreneur has some qualities which are good gifted while few abilities or core competencies are gained by them through working as life experiences.

Comparison between traits, abilities as well as competencies of manager and an entrepreneur.

There is very big difference between traits, abilities and core competencies of manager as well as an entrepreneur. Business owner is recognized as a person who establish a company and have the responsibility to run the business in ethical as well as systematic manner. On the other hand, manager is a person who works full or part-time for an enterprise.

Manager is the person who have responsibility to manage business operations, so it is essential for them to have specific knowledge about the field. Whereas, an entrepreneur are responsible for controlling as well as managing all the aspects of business. So, business owners are required to develop depth knowledge about the business and they also need to have much working experience.

An entrepreneur has high risk bearing capacity as compared to managers. In addition to this business owner also have high decision-making power. On the other hand, managers in an organization has high influencing power which they can use for motivating other employees to improve their performance and make their essential contribution in driving firm towards accomplishment of objectives.

Managers are less conscious about business as compared to entrepreneur. Managers are only concerned about completing their tasks as well as fulfilling their responsibility towards company (Bridge, and O'Neill, 2012.)

For instance, Philip green is the present-day CEO of Arcadia group. Arcadia group is a conglomeration of various popular retails organisation. Background and experience of Philip green was drop-out from the school  and after that at the age of  fifteen years   he has worked for   shoe  company. After getting some working experience  Philip green has  planned to establish  his own firm. Six years later and worked his way up from there. Philip green started his first business at age of 21  importing jeans from the far east to  sell in London he has a mindset of successful entrepreneur. This  situation of  Philip green  represents that he have passion of gaining knowledge and learning thing which has helped him in establishing  as well as managing his business in successful manner. In addition to this Philip has planned to start up his own company which shows that he has risk bearing capacity. Innovation skills has assisted him in becoming successful entrepreneur.

P6 Assessing the way aspects of the entrepreneurial personality reflect entrepreneurial motivation and mindset

Entrepreneurial mindset is defined as specific state of mind which drives human action towards entrepreneurial activities. It is the unique quality of an individual hose who have entrepreneur mindset that they have high potential to explore as well as capture various business opportunities. Motivated, highly talented and successful entrepreneur have good innovation skills and these people believes in creating new values. An entrepreneur is considered to be as a dynamic actor and these people have high level of desire to change. Successful business owner has confidence and such people believe that they can make difference. These people also have passion for making things happen. Entrepreneurial mindset is also referred to as combination of abilities, core competencies bas well as behavior that is adopted by an individual personally or professionally. It also includes flexibility of an individual to adapt change, risk taking capacity, creativity, problem solving capabilities, self-motivation etc. As per the trait approach entrepreneur possess set of abilities related to internal control, planning, goal setting, independence and decision making. Trait approach states that an entrepreneur is required to be strongly motivated. As  self-motivation will help an individual in overcoming several obstacles or hurdles which might occurred in establishing new business venture. An entrepreneur is required to have control on their activities. As this skills will assist a person in generating the effective outcome (Brenkert, 2017)

TASK 4

P7 Assessing the way persons background as well as past experience can hinder foster entrepreneurship

Business owner work under the constraints of their environment There are several factors which has direct as well as significant influence on the choice of establishing a company. Some of the constituents or variables includes culture, economic factors, family background, culture, personality etc.

Personal background-This variable includes the previous employment experience, family background, gender, psychological traits have direct as well as significant effect on the choice of business owner related to establishing new business venture. Business owner gain several opportunities and gain knowledge or develop innovative idea from the personal background. Personal background also includes level of education, social values, lifestyle etc.

National culture-This constituents also have major influence on the decision of an entrepreneur related to starting up new company. Cultural background has direct as well as significant influence on reason for opening new company. This type of influence can arise from traditions or trends prevailing in the society. National culture has direct as well as major influence on business owner intention or objective of establishing new business venture.

Economic circumstances – Economic environment exercises the most direct and immediate influence on entrepreneurship. This factor includes the availability of financial resources which are required for establishing as well as running business in systematic manner. Availability of funds encourages an enterprise to establish new business venture. It is considered to be as an important part of decision. An entrepreneur making decision or judgment related to starting new business venture by considering the fact the return that will be gained by an entrepreneur by making investment on establishing new business. An individual plans to establish new business venture due to two reason such as need of money and lack of job opportunities. These factors have direct as well as major effect on the personal well as professional growth of an entrepreneur.

Character and traits-there are several entrepreneurship and business skills, experience that will have a positive influence on innovative entrepreneurship This factor has significant influence on decision related to starting up of new business venture. It includes the risk bearing capacity of an entrepreneur, knowledge about particular field, interest,skills, core competencies etc. Innovative abilities are required by business owner for managing the changes and dealing with several obstacles which might arise in establishing new business or company. In addition to this there are several other attributes need to be developed by business owner which includes visionary leadership as well as change oriented. The character as well as traits have positive influence on the entrepreneur decision relating to opening a new business venture. It allows an entrepreneur to explore as well as capture various business opportunities. Traits and skills allows business owner to develop potential or strength for managing the risks (Blackburn, Hart and Wainwright, 2013)

According to Big five theory, a successful entrepreneur have five personality traits these are :

Neurotic ism: As per this concept, business owner should avoid taking emotional decisions. An individual those who are highly emotional in nature are considered to be unstable. However. A person with low on this trait considered to be as emotionally stable. Person with Low emotional level is calm, even tempered and have high level of confidence which enables them to make suitable business decision.

Extroversion: an entrepreneur with this type of personality trait are generally more concerned about their roles as well as responsibilities within an organization. These people are generally much talkative and assertive in nature.

Openness :An entrepreneur with this type of trait are generally have high desire to create new things. These people generally have creative thinking which helps them in finding solution to several business problems. An entrepreneur with this type of personality trait have positive relationship with knowledge as well as intelligence.

Agreeableness: An entrepreneur with this type of trait are generally caring in nature.

Consciousness: People with this type of personality trait motivates and drives other people towards achievement of goals by providing employees with suitable guidance (Barringer and Ireland,  2010)

CONCLUSION

It has been concluded from the report that there are several types of entrepreneurial topologies. Study has successfully demonstrated the way different entrepreneurial venture are related to the typologies. It has also highlighted the several skills posses by successful entrepreneur. Project has also explained the similarities as well as difference between several entrepreneurial venture. Brief description has been provided in the assignment related to the effect of small medium enterprise on the economy of the nation. It has been concluded from the project that small medium enterprise is making significant contribution in economic development of nation. Study has also explained the way an individual background as well as past experience hinder foster entrepr

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