This assessment will cover the following questions:
- Analyse and define the range of ventures types which are considered by entrepreneurs.
- Describe the impact of small businesses on the company.
- Identify and evaluate the key aspects of entrepreneurial mindset.
- Discuss the different environments that foster or hinder entrepreneurship.
Every large company start from small business that is run operated and owned by an entrepreneur so management of entrepreneurship and small business is necessary for growth and success of business in the industry. This report explains about different types of entrepreneurial ventures and the way they are related to typology of entrepreneurship. Similarities and difference between entrepreneurial venture to understand entrepreneurship in both public and corporate sector. It also importance and impacts of small-business and business start up to growth of social economy. The report also explains characteristic, traits and skills of successful entrepreneur that differentiate it from manager of business. It also describes about various aspects of entrepreneurial personality that reflect entrepreneurial motivation and mindset. At last, it presents background and experience of entrepreneur that can hinder or foster entrepreneurship.
P1 Different Types of Entrepreneurial Ventures and The Way They Are Related to Typology
An enterprise is institution that start its operations for earning profit by offering products and services to people living in the society. Entrepreneur is the person or individual who planed to start and run business with some capital and resource to bear all risk and rewards associated with company (M'zungu, Merrilees, and Miller,2019). Entrepreneur is the person mindset that bring innovation and creative ideas for launching new products and services and entrepreneurship is mindset of individual to take estimated risk with confidence to achieve predetermine objectives. There are different types of entrepreneur venture or entrepreneurship such as social, growth and lifestyle entrepreneurship that are explained below:
Such companies are developed and run to provide solution of social, cultural and environment issues thus business is run for social cause. It improves living standard of people by providing services and product at reasonable rates to people living in the society (Christensen and et.al., 2020). Thus, it raised its fund through member of company and operates it business on small scale to provide benefits to people thus its motive is not to earn profit. For example: Action for business limited company provide support to community by providing help in finance related information company and is established to promote economic development and social upliftment.
These are such enterprise that objectives is to grow and expand its profitability and market share by providing qualitative products and services to customer. They use innovative technology and bring creative ideas to gain competitive advantages in the industry. High tech, high growth and lifestyles entrepreneurship come under private companies as they main purpose is to maximize profit by continuous innovation and expansion of business. For examples: ASDA is a private company that operates its business in UK and is established to maximise its profit and market share by offering products and services at reasonable rates.
These companies raise its from public by trading its share in open market or through stock exchange thus owned by public and operates its function to provide benefits to society. It is not similar to social enterprise as it is not intended to earn profit for owners or members of company. It provides ranges of government services such as public transport, education, healthcare and military for protection and safety of people. It has limited market share and profit margin in the market. For example: Marks and Spencer is a public company that is specialized in clothing, food and home products operates it business across nation.
Typology of Entrepreneurship
Serial entrepreneur: Person that bring continuous new ideas and innovation to start business thus it does not use same idea to start a business (Belenzon, Chatterji and Daley, 2017). High tech and lifestyles firms are started by such entrepreneur as they need to be innovative and creative in order to gain competitive advantages in the market.
- Social Entrepreneur: The owner established company for addressing social and environmental issue thus it runs enterprise with an aim to provide various benefits to society (Croce and Ughetto, 2019). Social enterprise are run by such people to provide benefits to society and member of company for the profit earned.
- Female Entrepreneur: Such company are owned, operated and managed by women to earn profit by offering products and services to customers. Female entrepreneurship has steady increased in United kingdom during 20 and 21 centuries. Small-business and private firms are run and operated by such women in order to earn living or to increase their wealth from profit earned.
- Male Entrepreneur: It includes that firms that is operated and owned by male entrepreneur as they have ability to take more financial risk as compared to females. Peter Jones is one of the well know business Tycoon that provides various products and services to customers and have its business in industry such as television, travel and real estate.
Similarities Between Lifestyles and Serial Entrepreneur
Lifestyles entrepreneurship are those that is established by owner to live a luxurious live by maximizing its profit. On the other-hand serial entrepreneur is person that bring continuous innovative ideas.
- Strong-willed Entrepreneurs: These entrepreneurs have strong willed and determination to start and run business by bearing all its associated risk and rewards (Smith, 2017 ). Both Lifestyles and serial entrepreneur have strong will and are confident to run business by bringing continuous innovation and creative ideas in the company to gain competitive advantages in the industry.
- Creating a Brand Image: Most of the company operates its business to build strong brand image as it helps in increasing sales and market share of company. Lifestyles and serial entrepreneur focus is to create strong brand image by providing innovative and qualitative products and services to customers.
Similarities Between Female and Male Entrepreneur
Both female and male entrepreneur are highly motivated and determined to start business and earn profit by satisfying needs of customers. They put lot of effort and time for the success and growth of an enterprise in the industry (Leppänen, McKenny and Short, 2019). For example: Kim Antoniou started Kafoodle to provide delicious food she was motivated and excited to start business as he likes to make food. On the other-hand Sir Charles Blyth was highly motivated to start Challenges business as he was interested in sailing and was first person to sail non-stops.
Difference Between Lifestyles and Serial Entrepreneur
Lifestyles entrepreneur focus is to grow and expand business for long term whereas serial entrepreneur jump from one business to another by bring new ideas and innovation thus not start business for long term. Tim Ferriss is a lifestyle entrepreneur that started business of sport nutrition to enjoy his lifestyles by maximising profit (Belenzon, Chatterji and Daley, 2017). Now, Tim Feriss is an advisor for 20 companies including Facebook and twitter. On the other-hand George Karibian is serial entrepreneur who founded two companies Telecom and Eurooffice then venture into Paymentsense, Judo pay and capital on Tap.
Difference Between Female and Male Entrepreneur
Mostly women start there business in mid of first or second career whereas male start business in its initial stage of education. It can be explained through Facebook and gateway examples as Gateway was started by Ted Waitt in early twenties on the other hand Facebook was started by Marks Zukerburg when he was in college.
Raising of Funds:
Female doesn't easily get investor as most people think that women has less experience and knowledge of business (Manesh and Rialp-Criado, 2019). Thus, it would not able to run business properly and repay investment. On the other-hand investor are willing to investment money in business whose owner is male as they think it has more knowledge and experience. For example: Waitt has to use its personal saving to start and operate business whereas Marks Zukerburg is able to raise fund through angel investors.
P3 Impact of Micro and Small-Business on The Economy
A business that have less than 10 employees and turnover valued 250000 per year and is sub category of small-business established to grow and expand its business in the future (Granz, Henn and Lutz, 2020). Small cafe, bakery are examples of micro business that are started by owner for earning living for himself and his family thus it has limited capital, resources and operates at small scale.
An enterprise that have less than 50 employees owned and operated by single individual, proprietorship having limited capital, resource and market share depending upon industry. Such as small grocery store, restaurants, guest house are some examples of small scale business that have started their business with limited capital.
Elaborate More on Micro and Small Business Section.
It is a business that employees large number of people and brings competition and innovation in the economic. It has annual turnover below €50 million or balance sheet below €43 million thus employees less than 250 employees.
SMEs helps in economic development of UK as it account for 99% of all UK firms and has contributed to 60% of employment in private sector. It is important as bring productivity growth and innovation in UK and create 1.9 million jobs in 2015. As per SBA estimate small-business employees 30.2 million out of 58.9 million workers. Turnover of small-medium scale business is around £2.0 trillion and 99% of business is run by small and medium enterprise thus help in growth and sustainability of economy (Bionic’s guides to business essentials. 2019.)
Nature and Characteristic of Partnership, Sole Proprietor and Private:
- Partnership: Companies that are owned and operated by number of people or more than two people with an agreement between them to bear all losses and profit of the company in specific proportion (Hui and Gerber, 2017). It is owned by number of people, have unlimited liability, share profit as per mutual agreement and voluntary registration are characteristic of partnership.
- Sole Proprietary: It in an individual plans to start and run enterprise by using its personal saving or borrowing money from friend and family to earn living by earning profit. Individual is solely responsible for all losses of business and enjoy rewards of company (Burt, 2019). Thus, person only take all crucial decision of company and have small market share and profit margin.
- Private: Whereas enterprise that are owned and operated by private individual in partnership or cooperation with another to maximize its profitability by providing qualitative services to people.
Such as ASDA is large private company that is operating its business across UK to provide qualitative products and services at reasonable rates. Thus, has maximized market share and profitability with large number of employees for achievement of organisational goals.
P4 Importance of Small Business and Business Start-up to Growth of Social Economy
Small-business have limited capital and resource that are established to earn profit for better living in the society. Whereas start-up business are small version of large companies that is temporarily established to know various way business can significant impact on current market. Brexit is a withdrawal of United kingdom from European Union which impact on import and export of small and start-up business as UK was leading partner in trade with EU.
It was found that SME was compelled by UK department for energy, business and industrial strategy in 2016. 25% of them think Brexit as obstacle in success of small and medium enterprise while 1.25 m business think it had lead to increase in business to 16% (More than a million UK small businesses see Brexit as major obstacle tosuccess. 2019 ). As per 57% of Scottish SMEs Brexit will be negative impact on business.
The SME that were internationally oriented such as tech firms have been affected adversely as export has reduces. Uncertainty about future regulation and access and increased import cost are also threat from SME. Thus, two third SME had cancelled plan for capital investment and less focused to increased export sales. Thus, Brexit posses opportunities and threats for small and start-up business.
P5 Characteristics, Traits and Skills of Successful Entrepreneurs
There are various characteristics, traits and skills such as passion, determination, motivation ability to take risk, creativity, and competitiveness that are required for a successful entrepreneur to operates its business successfully in the industry. It can be explained through the following examples of various entrepreneurs:
Before you support the section with examples, give a brief explanation of the characteristics, traits, and skills needed to be a successful entrepreneur.
He is CEO of Ubiqutek whose brand name is Rootwade that is use electricity to kill weeds thus offering sustainable and scalable alternative to chemical herbicides. He was innovative and creative it developed technology that can reduce carbon emission, soil erosion and spread of diseases and water consumption (Breazeale and Hustedde, 2017). Highly motivate and passionate allows him to expands and grow it business across nation by providing innovative products to people. Determination, commitment and competitiveness spirit promote its business to gain competitive advantages by facing various challenges and risk.
He established challenges business that organize world toughest Yacht races thus breaking down barriers to adventures sport. He was highly motivated, passionate and ability to take risk as he was first person to sail non-stop around the world that motivate and influences him to start a business by taking risk (Hoppe, 2016). Self starter characteristic of it helps in gaining competitive advantages in the market. Confidence and open-minded helps in identifying opportunities to start a business whereas confidence helps him to stay positive for growth and survive of business.
P6 Entrepreneurial Personality Represent Mindset and Motivation of Entrepreneur
Entrepreneur personality such as self-discipline, passionate and effective management of time and people represent mindset and motivation level. If a person is self-discipline and perform its work on time than it represent that it will be motivated to work hard for achievement of objective on time. It states its mindset that it give importance to time and want every work to be done within time limits (Elo and et.al., 2018). Individual is strong and determined it encouraged or motivate him to take risk and mindset to start business by bearing all risk and reward associated with it. On the other-hand if individual is passionate and have certain skill related to business than it can motivate it to meet challenges and to remain positive (Westhead and Solesvik, 2016). Thus, it has positive mindset towards business and interested in growth and success of company. Therefore, it can be said that entrepreneur personality represent motivation and mindset of a person.
From the above report it can be explained that entrepreneur needs various characteristic, traits and skill for success of enterprise. This skill and knowledge are sometimes born and sometimes they are learned and developed from personal experience of individual. Various types of entrepreneurial venture are there such as social enterprise, public and private company that are owned and operated by social entrepreneur, serial and female entrepreneur. Small medium business promote economic development by generating large number of employment and turnover. It can also be concluded from above report entrepreneur personality represent motivation level and mindset of entrepreneur. Thus, it concluded that successful entrepreneur help in growth and survival of business in the industry.
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