The persons who have special attributes and new ideas and views to explore a new venture or establish a new business, start up and try to reach top in market are called Entrepreneurs. These are personalities with strong view point and try to explore globally and try to improve the way of living of complete community (Alsos, Carter and Ljunggren, eds., 2011). It simply requires complete vision. And goals and objectives to achieve to be an entrepreneur. With deep knowledge and good marketing skills they grab big opportunities which come in their way. Every entrepreneur has a desired goal and perspective with their tar
P1 Types of entrepreneurship
Entrepreneurship :it is all about the starting new business or creating a new design of business which is starting from small. The people who start a new business are entrepreneurs. The owners of new business should know how to manage all things whether loss or profit. This is the risk which depends on us how to manage them. It is the process through which we gain knowledge and act like managers (Baum, Frese and Baron, 2014). These are the people who go beyond the thinking and think something out of box. They take risk and initiative from which gain profit. Risk is the important part of their working. Higher the risk higher the profit. From economics point of view it is the mixture of land, labour, capital which generate profit. Everybody do entrepreneurship but the people who get success who think out of box.
Determined entrepreneurship -these are the people who think and focus on one thing that in any situation we have to do our work. They face every situation and cope with them. They see possibility in every work and do that work (Barringer, 2012. They make positive mindset about the work and see possibility in every impossible work.
Accomplish entrepreneurship -this type of people gone through every stages of work and gain success. They faced every situation and gained success and now enjoying the freedom of doing the work wisely. They understand their customer very well and solve their complex issues for them. By experience they find out the best things in you to achieve the success. If freedom given to employees in manner they work they do best work for you.
Intrapreneur -the person who possess all skill of entrepreneur but work in an organisation. They work on their innovative ideas and make it presentable in the company. They never think about the success or failure because they have enough skills, knowledge, finances and contacts for their work. They take full responsibility of their work and turn into profitable one.
Serial entrepreneur -these type of people have innovative ideas and start a venture and play a very important role in the company regarding the growth. Later on they are given someone else work to start a new venture. This is best for any individual to work on new ideas so that they gain enough knowledge and success.
Lifestyle entrepreneurship – these are the people who change their lifestyle for their work and their main purpose of life is not to run behind the profit. They do their work because of their passion which keeps them from away from boredom.
Social entrepreneur – these are the people who through by making change in the society. They do their work by making aware people about social issues like poverty, education and all tat traditional work which are in practising till now. These people changes the tradition and make new things to work out.
Growth entrepreneur -the main aim of the people is the overall growth of business. They emphasis on the raising money from outside. They try that things in innovative way so that our business grow faster. Growth entrepreneur work is to growth of business in tremendous way.
P2 Similarities and dissimilarities between ventures
There are different types of ventures based on their capabilities :
Small Business Ventures : Ventures which are started with small amount of capital invested with the help of their relatives and family friends in order to generate revenue so that new and innovative products can be launched are small business (Awogbenle and Iwuamadi, 2010). They have sole proprietorship with small market area. Employees are also fewer in number.
Scalable Start-Up Ventures : Entrepreneurs of these ventures are highly educated and have big dreams to capture the whole market. They are funded by large equity institutions by giving a detail report of their project. They are new to the market and their aim is same as of small business venture i.e. to to achieve a big platform. But these fail usually. They have partnership with other business so that their business can run smoothly.
Social venture : It contributes it part for the betterment of the society and and does everything for its improvement. Employment rate also increases by their contribution.
Now micro, small and medium scale business are discussed
Micro business: Micro business involves less amount of people, and most of the statistical data in UK is maintained by Industrial-strategy (Barringer, 2012). So if the reports are studied then only 1-9 are employed in the business if micro level. Many opportunities are offered to people in micro business.
Small Business : These businesses are owned by single proprietors and similarly here also few employees are appointed in the business. So it results in low revenue generation. UK report says that only 50 employees work in small business.
Medium Business : The employees are are more in number. The decisions taken by employees and owner both. Professional participate at every stage in medium scale business. So a diversified and wide customer base line is generated (Bosma and Levie, 2010).
A firm which which do not issue its shareholders and stock to public is private company. While where initial public offerings are traded publicly is called public business.
P3 Effect of micro and small business have on the economy
Micro and small business have major outcomes economically. These enterprises strive hard to maintain its sustainability in the market. Their main focus is to generate large amount of profit in the competitive market. The impact of these businesses are :
Future Growth : UK government is taking positive steps to evolve small business as Brexit has directly influenced the economy of UK. Small enterprises help in the enhancement of GDP by the revenues generated due to increase in supply and demand of services and products aof these businesses in the market (Bruton, Ahlstrom, D. and Li, 2010). Subsidies have also been declared on some hogh rated product and incentives have been declared in the export import process nationwide.
Job Opportunity : Local people have improved their standards as small and micro businesses have provided them job opportunity. Their life styles have been modified. As the per ca pita income of person is increasing the economy at regional level is improving. These job opportunities contribute in the productivity of services and products so that customers get satisfied completely (Carraher and Paridon, 2015). It can be said that its playing a dual role in economic structure region wise also and at national level also. More and more local people are employed in these business and hence they are more encouraged after their establishment.
Increase in GDP : Employees of these businesses are on other hand influenced through increase in GDP rate. For example wages, paying salaries, have affected the GDP rate of country to large level.
Adaptability : Due to advancement in technology and continuous establishment of small business
the owners are getting deep knowledge and are more encouraged for their innovative products and services. Feasibility of products is easily calculated through social media, electronic media and printing media.
Growth of small medium size enterprise in UK is remarkable from where it has been identified that there are 1. 5 million small enterprise among which 46000 self employed partnership and almost 3.3 million appeared as sole proprietorship (BUSINESS POPULATION ESTIMATES FOR THE UK AND REGIONS 2014, 2014). Moreover, small medium size firm has created 15.2 million employment opportunities which reflects increasing contribution of SME's in UK.
P4 Importance of small businesses and business start-ups on the growth of the social economy.
Utilization of technology and its development have made a lot in revolutionary and evolutionary way (Carsrud and Brännback, 2011). Fresh measures are introduced to the world by small and start up businesses. They provide good quality products, convenience and values to their end customers.
Social and Economic Development : These enterprises always participate for local employees by providing job opportunities and incorporates them according to their requirement.
Step-down towards many problems : As small and startup businesses have started, job opportunities created by these businesses have reduced poverty and and unemployment rate in aggregate. So this has resulted in equal distribution of wealth all around the nation . Due to more wealth, people are able to invest more and raise their profit in full amount (Chittithaworn and et. al., 2011). This has resulted in nourishment of UK's economy. By providing convenience, society is being taken care off nad various business activities are performed for its betterment.
Trade Of UK: Effects are worse after Brexit, as the trading connections with EU would be in danger, so UK 's trade would face more effects. UK is having a feeling of constant threat as EU took whole responsibility of carrying out trade in UK. This would reduce dependency of EU on funds provided through external sources. So there are chances for the improvement of international trade with other countries. B.O.P has taken charge to list all deals which UK does with other countries (Dacin, Dacin and Matear, 2010).
Social-Security : Social security is major focus by these businesses. So to take care of welfare, benefits and its major requirements is its major priority. They give this security to these societies as well.
P5 Traits, skills and characteristics of successful of Bill Gates and J.K. Rowling
The traits, skills and characteristics are certain quality that can make a person different from rest of the people. To be successful it is important for entrepreneurs to have various sets of skills and characteristic. Regarding this, The business show 2018, two successful entrepreneur who shared their thoughts related to the way they become successful. Two successful entrepreneurs which are identified are Bill gates and J.K Rowling, Here below are provided few characteristics and traits of the successful entrepreneur that are as follows:
Passionate:. To accomplish the desired aim in the life it is important to be passionate toward the goal (Morris, Kuratko and Covin, 2010). After listening from both successful entrepreneur that are J K. Rowling and Bill Gates. It developed knowledge that both are passionate toward their aim which make them successful in their respective field.
Risk Takers: It is important for an individual to take risk if it want to become successful entrepreneur. It is analysed that J.K. Rowling and Bill Gates both have taken many risks to become successful in their life. They addressed those risk with the use of their skills and knowledge in their respective fields (Dacin, Dacin and Matear, 2010)..
- Innovative: To be innovative is considered as one of the unique skill that can be seen in people. Therefore, it can be stated that both K. Rowling and Bill Gates are enough innovative which assist them to become successful entrepreneur.
- Leadership: An entrepreneur has to work with his or her team members. At times of failure, team gets demotivated (DeNisi, 2015). Only successful entrepreneur entrepreneurs can regain their motivation and influence them on the right path and right direction through their effective leadership skills. Both Bill Gates and J.K. Rowling were successful leaders.
An entrepreneur should be work with the teams so that mission and vision can be accomplished. However, demotivation in team can easily affect the success. It is identified that both J.K. Rowling and Bill Gates have good leadership skills (George and Bock, 2011). They focus on working with team and motivate them which make them successful leaders
- Self Confidence:
If an individual gets fail they may be demotivate or loos their confidence of becoming and entrepreneur. Therefore, it can be stated that only successful entrepreneur can deal with the situation ad become successful (Bridge and O'Neill, 2012).. One of the characteristics which is identified in both Bill Gates and J.K. Rowling is that they are self confident
- Persistent: To being determined related to the task or job is can be stated as unique quality that can rarely be noticed while becoming successful entrepreneur. In order to accomplish desired aim and objectives it is important for an individual to be persistent toward the job and goals (Baum, Frese and Baron, 2014).. Therefore, it can be stated that both K. Rowling and Bill Gates were persistent for their work and aim as it lead to make them different in their respective fields.
P6 Aspects which reflect entrepreneurial motivation and mind sets
In order to shows the entrepreneurial motivation and mind set of successful entrepreneurs such as Steve Jobs and Bill Gates, OCEAN framework is considered (Storey, 2016).. This model assist in describing the five types of personality and each individual fail in one of these types. Here below is provided these personalities in details.
- Openness: It shows the level of intellectual creativity, preference and curiosity in the person. It is analysed that K. Rowling who is writer and an entrepreneur was enough creative and intellectual (Welter, 2011). Apart from this, Bill Gates is one of the success full entrepreneurs He was the founder of biggest IT firm at the time when it comes to his profession.
- Conscientiousness: It can be demonstrated through the tendency of being self-disciplined and stable. It can be noticed that both successful entrepreneurs that are Steve Jobs and Bill Gates have this quality (Case study in Psychology: Data Analytics applied to analyze human personality based on Big Five model). They were focused toward the goal and self disciplined which lead to make them different from others. They both has established their own firm and are on top.
- Extraversion: Extraversion this personality of an individual reflects the positive energy, talkativeness and sociability. It is noticed that both Bill gates and J.K. Rowling posses these qualities which make them successful (Oosterbeek, Van Praag and Ijsselstein, 2010). They both have positive energy and they can easily grab attention while communication.
- Agreeableness: It is considered as quality of begin compassionate and cooperative. It is quality which can be only identify in the entrepreneurs (Baum et al., 2014). They work with cooperation and in a team (Obschonka and Stuetzer, 2017). Along with this they motivate their employees to work hard for accomplishing desires goal.
It is a quality which reflect that person mood and sadness, If an individua is highly Neuroticism then it may be not stable (DeNisi, 2015). It is a quality which is not identified in both J.K. Rowling and Bill Gates and due to this reason, they were be able to successful in their goals.
Hence, from the analysis of above model it can be stated that both the successful entrepreneurs possess qualities which make them successful in their respective fields.
P7 Investigating background and experiences of entrepreneurs
In respect to accomplish dreams and aspirations successful entrepreneurs may faced various of issues and difficulties because of their background and experience. Bill Gates parents are not enough rich to provide high quality education (Davis et al., 2016). Similar to this, J.K Rowling also not rich to take education like others. In contrast to this statement the part will shows the way background and experience can easily hinder or foster the growth and development of an entrepreneur. It is identified that Bill gates was drop out of from the Harvard university. Along with this, he also suffers from many family problems at the time of taking his first step of introducing Microsoft. Different types of risk which is faced by Bill Gates are family issue, lack of knowledge etc. But he never gave up his dreams and at present he is one of the successful entrepreneur (Edwards-Schachter et al., 2015). On the other side, J.K Rowling has completed his college but he faced many issues because of cultural issues. But he defeat each and every problem and barrier and now become successful. He introduced new book of Harry Potter and this book become famous in all over the world. Apart from this, there are some factors that can foster them. It lead to depend on an individual that he want to open run from it or they learn from it Bill Gate is known as one of the biggest founder of IT company as it possess openness trait. On the other side J.K Rowling was individual who is create writer. After facing many issues and problems then accomplish success. It is because they are self confident and motivated toward their work. Hence, it can be stated that background and experience of an individual can easily foster and hinder while becoming a successful entrepreneur (Obschonka and Stuetzer, 2017).
From the above report it is concluded, ventures which are started with small amount of capital invested with the help of their relatives and family friends in order to generate revenue so that new and innovative products can be launched are small business. Further it is concluded that, to accomplish the desired aim in the life it is important to be passionate toward the goal. It is important for an individual to take risk if it want to become successful entrepreneur. To be innovative is considered as one of the unique skill that can be seen in people. Extraversion this personality of an individual reflects the positive energy, talkativeness and sociability. In respect to accomplish dreams and aspirations successful entrepreneurs may faced various of issues and difficulties because of their background and experience
- Baum, J.R., Frese, M. and Baron, R.A. 2014. Born to be an entrepreneur? Revisiting the personality approach to entrepreneurship In: The psychology of entrepreneurship. Psychology Press, pp. 73–98.
- Caliendo, M., Fossen, F. and Kritikos, A.S. 2014. Personality characteristics and the decisions to become and stay self-employed. Small Business Economics. 42(4),pp.787–814.
- Davis, M.H., Hall, J.A. and Mayer, P.S. 2016. Developing a new measure of entrepreneurial mindset: Reliability, validity, and implications for practitioners. Consulting Psychology Journal: Practice and Research. 68(1),p.21.
- DeNisi, A.S. 2015. Some further thoughts on the entrepreneurial personality. SAGE Publications Sage CA: Los Angeles, CA.
- Edwards-Schachter, M., García-Granero, A., Sánchez-Barrioluengo, M., Quesada-Pineda, H. and Amara, N. 2015. Disentangling competences: Interrelationships on creativity, innovation and entrepreneurship. Thinking Skills and Creativity. 16,pp.27–39.
- Henry, C., Hill, F. and Leitch, C. 2017. Entrepreneurship Education and Training: The Issue of Effectiveness: The Issue of Effectiveness. Routledge.
- Obschonka, M. and Stuetzer, M. 2017. Integrating psychological approaches to entrepreneurship: the Entrepreneurial Personality System (EPS). Small Business Economics. 49(1),pp.203–231.