Entrepreneurship is a process to improve the business by taking financial risks(Kirzner, 2015). Most of the entrepreneurs start with the small business and put their innovative ideas in it. This present report is based on Elizabeth Gooch which has started work with HSBC bank and after the same, they start their own business, EG consulting to use their innovative mind and after sometime, they change it into EG Solutions PLC which gives more profits to them. Tom Mercer is also using innovative ideas and started their own business, Moma Foods. The whole report is based on these two cases and it clarify different questions like; different types of entrepreneurships, impact of small business on UK economy and its importance in the growth of social economy.
P1. Different types of entrepreneurship ventures and their relationship with typology
Entrepreneurship means starting up of new venture with most of the innovative ideas and its basic aim is to earn profits and introduce the new job opportunities for society. It is the process of introducing new ideas and projects in the market for a healthy competition. The basic aim is to earn profit by bearing many risks(Fayolle, 2013George, G. and Bock, A.J., 2011Herrington, M. and et. al., 2010Jones, R. and Rowley, J., 2011). The risk can be of failure of business, arranging of appropriate funds, etc. So, the entrepreneur should made all the strategies and policies by taking into mind such things. Following are the types of entrepreneurship which are discussed as below:
Small business venture: Small business ventures are the first step or initial stage of business. In this, entrepreneur starts its own business at a small level just with an aim to earn profit by taking all risks and introducing new opportunities. It includes small business like a shop of grocery and many things. Local stores of United Kingdom whose basic aim is profit are the best suitable types of small ventures.
Scaleable start-up ventures: These are those types of ventures whose basic aim is just to change the mind-set of everyone(Ebert and et. al., 2014). Rate of entrepreneur in this venture is low because success of these ventures is not good as compared to others. EG solutions is a profit based business and it became the scaleable venture because it changes the vision of society after getting failure for back to back two years.
Large business ventures: These ventures need a huge amount of investment into them so they can give their best services. They have to introduce new projects and services so that they can survive in the market. Their establishment is compulsory for their owners. Tesco is the best example related to large ventures because it is a super market that explores its business all over the world.
Social venture: These types of ventures only work for the society. Their basic aim is to just improve the way of living or standard of life of others. They work for the environment or for societies. They work to solve the problems or issues of society(.Durst and Runar Edvardsson, 2012). Big society capital of United Kingdom provides adequate funds for social sector for working on the society issues.
P2. Similarities and differences between social entrepreneurship and lifestyle entrepreneurship
Following are the similarities and differences within social entrepreneurship and lifestyle entrepreneurship-
Lifestyle entrepreneurship: The lifestyle entrepreneurship can be termed as a lifestyle that an individual wants. Some examples of this entrepreneurship in social media, travelling etc. all those activities of lifestyle are come under lifestyle entrepreneurship.
Social entrepreneurship: The activities which are in favour of society or related to society are termed as social entrepreneurship. Like helps others and saving the environment etc. Big Society capital is an organisation which has establish for social development. Barnsley Community Build is an organisation where they are providing training and employment in the construction sector to provide employment to young people.
Both these activities, that is, social and lifestyle entrepreneurship have the same goal. Their main aim is to get success of their own. In social entrepreneurship, they have to think for society but also, for their profits(Drucker, 2014). In lifestyle entrepreneurship, they have to achieve the goals of success of their business. Both the activities create some values to their goods and services. They have to make a positive impact on them.
These both are having some differences regarding the scope, development and growth in their sectors.
Scope: The scope of social business is to motivate social benefits of society whereas, lifestyle entrepreneurship is not promoting the social benefits but it promotes only the lifestyle.
Development: By development taking as a base both the activities made a difference between them. It is because; lifestyle entrepreneurship is a vast growing enterprise. Its expansion is larger than social enterprise. Social enterprise is a low growing activity because it cannot attracts people towards it(Dennis Jr, 2011).
Growth: The lifestyle activity grows more than the social activity because lifestyle entrepreneurship is a profit making activity and social activity is not completely based on profits.
P3 Characteristic, traits and skills of Elizabeth Gooch and Tom Mercer
Elizabeth Gooch is the most successful female entrepreneur in the UK and they are having different types of characteristic and skills which has develop them as a successful entrepreneur, some of them are here;
Characteristic: They are having start their work from by HSBC bank and after it they start their own business after 8 years, it shows their determination power to achieve a target which makes their different from the others(Defourny and Nyssens, 2010). She is having a brief knowledge in finance sector which motivates the to work in the banking.
Skills: The lady is having planning and implementation skills which helps them to make strategies for their future projects. They start their business in just a few amount which she borrowed from their family members and relative. It shows their believe on their own planning.
Tom Mercer is a founder of MOMA Foods which emphasise on to deliver high quality nutritions food to travellers and driver which have a need of quality packaged food.
Characteristic: Tom is having a vision for their future which helps them to make a strategy on a different types of products and in a different sector. They start business in 2006, after completing their education which shows their depth to achieve their task with proper planning.
Skills: Tom is highly determined for their work and they are having capabilities to produce their production any how. Tom is having a marketing knowledge which is showing in their marketing tactics which they used in their business(Dacin, Dacin and Matear, 2010). They are focus to achieve a target in their life by hard work in which they start their work in night to make production according to make effective supply to their customers.
P4 Assessment of aspects of the entrepreneurial personality of Elizabeth Gooch and Tom Mercer
Elizabeth Gooch are having highly determine to be a on a standard level in their life and they utilise their skills and characteristic to provide employment to others. She achieved their target position by using their own interpersonal skills, planning, strategies and implementation of it's to be on respected position. She has a positive attitude on failure and they believe to learn from them to make better work for next time. As she said to their shareholders to be determined for their goals, it shows their mind set towards to their goals.
Tom Mercer is also famous entrepreneur which achieved a respectable position by their hard work and marketing tactics. They start their production and according to this, they made business contact to make their supplies to them(Chittithaworn and et. al., 2011). They have start their business in food industry which has a never ending demand and as well as they made their target on high quality nutritions foods which is a need of the drivers to eat fast and eat healthy. They built up their relations with TESCO to take some initial raw materials which are waste for them. They had put their stalls in different areas where they can make large and direct sale to provide convenience to them.
P5 Personal background and experience can hinder or foster entrepreneurship
Personal background and experience has a influence on the persons and it emphasise on the thinking level which decide the success and failure of a person. In the case of Elizabeth Gooch, she had started their work from HSBC bank and render their services for a year which is enough to a person to learn how a big organisation works. It motivates them to start their own personal business. So this is a foster factor for them which leads them to be a entrepreneur and use their skills to start their own business.
In the case of the Tom Mercer, he had a vision for their future which helps to him to develop their business ideas in the actualization. He has stated their career as a city worker which makes a compulsion for them to start thinking for them to provide better breakfast which contains all the nutritions which helps them to be healthy to perform their business activities(Carsrud and Brännback, 2011). So this one helps him to make better work which is a market demand by this they are leading on the market now.
The above concluded report is having focus on the entrepreneurship and small business management which is based on two entrepreneurs Tom Mercer and Elizabeth Gooch both are having a high position in the market. This report is having factors related to the UK economy which makes a clarification on the support of SME'S in UK economy and it's importance in to reduce the threats and increase the UK economy. It has a focus on the characteristic and skills which are helps to them to start up their small business and takes to it on high levels.
- Alsos, G.A., Carter, S. and Ljunggren, E. eds., 2011. The handbook of research on entrepreneurship in agriculture and rural development. Edward Elgar Publishing.
- Awogbenle, A.C. and Iwuamadi, K.C., 2010. Youth unemployment: Entrepreneurship development programme as an intervention mechanism. African Journal of Business Management. 4(6). p.831.
- Barringer, B., 2012. Entrepreneurship: Successfully Launching New Ventures, (2012).
- Bosma, N.S. and Levie, J., 2010. Global Entrepreneurship Monitor 2009 Executive Report.
- 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.
- Carraher, S.M. and Paridon, T.J., 2015. Entrepreneurship journal rankings across the discipline. Journal of Small Business Strategy. 19(2). pp.89-98.
- Carsrud, A. and Brännback, M., 2011. Entrepreneurial motivations: what do we still need to know?. Journal of Small Business Management. 49(1). pp.9-26.
- Chittithaworn, C and et. al., 2011. Factors affecting business success of small & medium enterprises (SMEs) in Thailand. Asian Social Science. 7(5). p.180.