Entrepreneurship is the process in which new and innovative ideas are generated and can easily develop creative ideas. It assists the organization to sell unique products to users. It results in increasing the satisfaction level of firm. This helps the company to enhance the revenues and can enhance the market share (entrepreneur, 2018). Hence it can expand their operations and task in various countries Assignment describes about a successful entrepreneur Joe Woods and they had started a IT business. They sell online credit and debit cards to all companies. Report explains about range of entrepreneur ventures and different types that are considered entrepreneurial. It also explain about the evaluation of impact of small business on economy. It also describes about the assessing the key aspects of entrepreneurial mindset. It also discuses about the evaluating different environment that can foster or hin
P.1 Different types of entrepreneurial ventures and their relation with typology
Entrepreneurship:It is the process through which a person creates innovative strategies and policies. It helps the company to effectively manage all activities and operations. So organization can earn huge revenues. Hence it results in growth and development of firm.
Different types of entrepreneurial ventures:
There are various entrepreneurial ventures which are operated by a single person. They take huge risk so that enterprises can earn huge revenues. All ventures are completely different from each other and has various objectives. Hence they operate their activities and function sin different manner. Different types of entrepreneurial ventures are described below:
Large entrepreneurship: It is kind of entrepreneurship which includes maximum amount of funds and risk so that they can operate all their activities and operations (Arend, Sarooghi and Burkemper, 2015). Thy use innovative and creative technologies and legislations so that they can easily increase the satisfaction level of all customers. It also helps in creating the suitability in the business.
Social entrepreneurship:In this organization creates new plan and policies so that they can give contribution to social activities and operations. This is done so that they can give solution to problems and issues of all people. These business are not created for performing activities and operations bur they ate started to perform activities so that they can help the poor people. Enterprises can give funds to charitable institutions so that company can assist these institutions.
Scalable start ups entrepreneurship:These business have potential and capabilities to become successful entrepreneurs. Main objective of these entrepreneurs is high and they believe that they can perform activities and operations if there any changes in company. It involve maximum risks and revenues (Boh, De-Haan and Strom, 2016). These enterprises are to be funded by crazy capitalist which can take huge risk and wants to earn more profits. Main objective is to make changes and to modify the universe by creating innovative ideas and thoughts. These business need huge fund as then only they can operate their activities.
Small business entrepreneurship:It involves different tasks and various functions in which staff members are less than 50 and it has turnover of 6.5 billion. It needs less amount of capital and less risk so that business operations and activities are effectively and efficiently managed. Small business such as consultants, plumbers, electricians and agents etc.
Typologies of entrepreneurship:
There are different companies which are available and they delvers their products and services of that they can develop the society. Main objective is to satisfy the needs and wants of all people. It also leads to growth of economy. Typologies are described below:
Serial entrepreneurs:These entrepreneurs starts a business and after the successful running of business, then they start the new venture. It also includes different enterprises who exist with the innovative plans and policies This helps to run their activities and operations effectively and efficiently. In day to day activities and proper and efficient functioning, entrepreneurs can give their full efforts and dedication. Main objective is to earn huge revenues. They are related to buis entrepreneurship ventures.
Lifestyle ventures:It is a small company that administers and control, independence and control the company. Main objective is to attract many people and there is optimum and effective utilization of all resources. It also helps in giving the flexibility in meetings, seminars and other places(Henry, Foss and Ahl,2016). Main objective is to earn huge revenues for their living and they can earn livelihood by becoming an entrepreneur. It can be related to small business entrepreneurship.
Female entrepreneurs:The business depends on female skills and capabilities. In this organization controls and manages by the women. They have 51% g the shares across the globe.
Male entrepreneurship; This organization depends on men's capability and skills and power. These organizationals are managed and montor by men. They have 49% of the shares.
P.2 Similarities and differences between different kinds of entrepreneurial ventures
In market there are different business which have some similarities and differences. Similarities and differences which are described below:
These ventures provide the flexibility in places, time and places.
These types of ventures emphasis on keeping the status and goodwill of firm (Drucker, 2014). Through this company can generate huge revenues.
They do not have any objective or aim. Hence they can take advantages and benefits in limited time period.
It is a small business and it is created for performing activities and they can receive benefits in less time.
Company needs operations and technologies so that they can enhance their revenues.
It is also started to earn huge profits.
It put focus on the large market and they put extra initiatives so that company can easily accomplish the foals and objectives.
It put focus on the market share and it also emphases on initiatives and tries to earn huge revenues.
They do not communicate the data and information regarding the growth of business operation and activities.
These companies provide all information and data about external and internal process of firm to financial analysis on daily basis.
They do not create strategy to prepare and establish the venture.
They launches their operations in effective and efficient manner. They do not create strategies.
They establish business in order earn livelihood of their family.
These entrepreneur work to earn more money and doesn't use profit for personal use (Katz, 2014). They are the switchers that means they establish business and then sell it to third party to start again a new venture.
P3 Assessment and interpretation of data to analyse micro and small business impact on the economy
Small enterprises are consider as a backbo0ne of a country's economy in driving the growth, creating jobs and opening new market therefore they contribution is very essential. Though micro and small businesses doesn't generate much revenue as compare to large organisation still these firm contribute toward the growth of national economy. Micro and small companies refers to the business which consist of not more than 50 employees(Kickul and Lyons, 2016). These businesses support in the economical growth of a country in three ways such as it provides an opportunity to achieve financial independence, creates employment opportunities and encourage innovation. Small businesses generally provides a chance to individual for pursuing their passion which have a direct impact over the growth of economy.
SME contribute toward country's economy by bringing new innovative ideas by establishing small enterprises. These businesses attract peoples who have an ability to enhance the existing commodities or who can bring new product and services to the market, so it allows these peoples to act upon their ideas and make their dream into real business. Large organisations are very much dependent over the small companies for performing certain business operations through outsourcing.
Sometimes small business are come out of big and unique ideas which no body believes and became successful. These businesses provide stable economy and financial strength of a nation by providing and also provide broader range of new employment opportunity. Small businesses are the engine of growth which allows citizens as well as government in acquiring the goods and services they require. Some SME are more customer oriented as they have the capability to being adapt and quickly response to economic climate which is dynamic in nature. This results increase in number of loyal customers to micro and small enterprises during economical crises which in turn will help company in dealing with tough situations and also strengthen local economies(Kirzner, 2015). As small company is not consist of complex organisational structure as compare to large corporations hence their worker's productivity is higher. Owners are also directly involve in management operations which help them in observing the productivity of employees directly and decisions are also taken quickly.
Small business enterprises plays an essential role in economical growth of a country by contributing in several ways such as
Generate employment:- After Brexit majority of people who works in MNCs lost their job that bring changes in spending behaviour of people lives in UK. This results in slow down of economical growth as people lost their job so they don't have much fund to expand. At that time small businesses contribute toward bringing out the economy of country from these crises by providing employment opportunity to people who lost their job. Further this also provide some people an opportunity to have an source of regular income that have an huge impact over the economical growth of UK.
Flow of foreign currency:- Small businesses are born out from some unique idea that also attract investors to invest in businesses. This ensure continue flow of FDI in country that support toward the growth the economy. Apart from this small businesses in UK also involve in export activities which also support in growth of economy by bringing foreign currency.
Job opportunities created by SME provides an economic advantage to the nation's economy especially in retail and manufacturing sector. As micro and small business organisations are more labour intensive hence increase in employability will increase the standard of living of the citizens (Küttim and et. al., 2014). These companies generally give chance to candidates who are less skilled and having no working experience so that they can improve their capability along with their job. These types of employment practices is beneficial for the economy in two ways:
- These organisation hire workers who finds difficulty in getting job which in turn will reduce unemployment from nation.
- Another advantage is that by providing employment to unskilled workers company can provide them on job training and can bring efficiency in their as much they require. This help in increasing productivity by employing low paid personnels which means high production at low price.
Therefore, micro and small business contribute toward the national economy to a large extent and also assist in country' development which in turn will increase the GDP rate.
P4. Importance of small business or start up in social economy after Brexit
Small business enterprises refers to the corporations which are owned and managed independently by individual or group of individuals which is limited in term of its size and revenue. These companies includes small number of employees which is not more than 50 and have low sales volume (Impact of small-business in UK economy,2018). There are number of issues and difficulties which are faced by nations economy during the time of Brexit, which is shorthand of British exit. It refers to the decision of UK for leaving European Union which as roiled away the global market, British pounds value has been fallen down to the lowest level. Following [points shows the impact of Brexit:
- After the Brexit, UK government has formulated new rules and regulations for start ups and small business enterprises so that they can assists in improving the condition of nations economy.
- Small and micro business help UK in increasing the GDP rate of the country as it is a great factor in the growth of a country. Brexit leads to decrease in the GDP rate which has a huge impact over the small enterprises in term of their business operations, as customers prefer to purchase products and services from SME's.
- During Brexit there is an increase in unemployment rate of country which is a great downfall of the UK economy. At that time small enterprises provides job opportunities which helped in improving the standard of living.
Therefore, from the above points it has been clear that start ups and small businesses plays a very essential role in growth and development of country's economy. These companies also help in improving the condition of economy by providing job opportunities to the candidates who are not getting job in large organisations (Link, Siegel and Wright, eds., 2015). Brexit has a huge impact over the multinational companies as they fin difficulties in adopting changes and also suffer from sever loss.
On the other side small enterprises and start ups which doesn't follows complex structure as compare to large organisations, easily get adopted to changes and also help in improving the economical condition of a country by reducing the unemployment of nation. Following are some ways in which micro and small businesses assists the economical growth of nation,
- Small firms and start ups help in maintaining and controlling the unemployment ratio by providing job opportunities to large number of candidates.
- Micro organisation also assists in the growth of UK economy by contributing more toward the revenue and income after Brexit.
P5. Determination of characteristics, traits and skills of successful entrepreneur
Entrepreneur is a person who set up a business by taking all the financial risk and reward of the venture for generating more profit. These are commonly known as innovator and a source e of new ideas or business processes. Entrepreneurs who start-up a business by taking risk became successful and are rewarded with profit, growth opportunities and fame. Successful entrepreneurs are more motivated and create new ways of leading organisation effectively. Any individual can became a successful entrepreneur by adopting training, learning education, skills, abilities (Lofstrom, Bates and Parker, 2014). There are some famous personalities who started their own business at a lower level and now became a successful businessmen.
- Walt Disney:- He started as a farm boy and use to draw cartoon pictures for fun. In his adulthood, Walt Disney got job in an art studio to create magazines and newspaper ads. He is more interested in animation and started his own animation company. Disney's first cartoon character was Oswald the lucky rabbit but is owned by Universal picture as Walt was working with them. Later he left Universal Picture and created a new character Mickey Mouse taken Disney's company to new heights and he became successful.
- Steve Jobs:- He was the chairman and co- founder of apple. Steve job dropped college because of financial problem faced by family. Job started a computer company with his friend which is known as apple and has forever changed the electronics industry. Later he launches a number of electronic devices such as iPhone, iPod, iMac and many more.
So, it is very essential to have some unique traits, talent and skills for operating an organisation effectively, generating higher revenue and also assists in becoming a successful entrepreneur.
Characteristics, skills and traits of successful entrepreneurs are as follows:-
- Hard worker:-Entrepreneurs must have the capability to handle all the critical situations and are always being ready to take challenges, they never afraid to take risk (Phillips and et. al., 2015). For becoming successful they must be hard working and should concentrate toward their goal and objectives. An entrepreneur must be passionate about their work and believe in work harder. They must have a will to provide extra hours for their business operations to make their business succeed. As successful entrepreneur is one who always willing to identifies various methods to perform task more effectively.
- Adaptable and flexible:-An entrepreneur must be flexible and adaptable in nature so that they can handle all the risk factors that may affect the business and can able to adopt the changing situations. These factors help in bringing efficiency and contribute toward the growth of company. As there are number of issues and factors that are being faced by entrepreneur while performing its business operations that may affect the functioning of a company. In order to deal with this situation an entrepreneur must be adoptable to situation so that they can formulate strategies or appropriate decision can be taken according to threats present in environment. This help an entrepreneur to achieve competitive advantage in marketplace.
- Good communication:-An entrepreneur must have good communication skill, as this feature help in delivering the core information to their important persons and inspire his team. Apart form this skill an entrepreneur must also be a good listener and he must listen to the issues their employees are facing in order to building a good relation with them. As effective communication help in developing trust among employees and also work toward clarifying the role and activities to be perform by an individual that remove chances of delay and repetition of work. This further support entrepreneur in motivate and encourage its employees to work toward the accomplishment of goal.
P6. Identify various aspects of entrepreneurial personality
Personality refers to the combination of various traits, qualities and characteristics which makes an individual differ from others. Entrepreneurial quality affects the performance of an individual as they have the capability to take higher risk. Every person is different in term of their personal trait which can be better understood by using big five trait model:
- Agreeableness:-This personality dimensions include traits such as trust, affection and kindness. Entrepreneur who highly agreeableness in nature tend to be more cooperative and easily get trusted by their workforce in comparison to the person who tend to have low agreeableness. This feature help them in managing their employees more effectively and can easily influence them to perform work as per their business requirement.
- Extraversion :-This personality trait generally includes attributes such as talkative, assertive, social, emotional expressiveness, out spoken and also open to share their ideas, view, opinions (Scarborough, 2016). This feature help entrepreneur in communicating their nexpectations as well as it also them in motivating their workforce.
- Conscientiousness :-This personality trait explains that an entrepreneur must be focused toward their work as well as goals and objectives which they have to achieve. This is most essential feature as it reflects the capability of a person to perform work. Further it also help entrepreneurs in achieving their set aims & objective and also contribute toward the success of business.
- Openness to experience:-This trait includes various attributes like insightfulness or imagination and entrepreneur who stands high in this trait tend to be more creative and adventurous. This feature help entrepreneur in bringing new and innovative ways to perform work as well as brings efficiency in their business operations. As business environment is dynamic in nature and there are various factors which brings changes in business operations. Hence this trait develop an ability in an entrepreneur to deal with such changes and protect business using creative and innovative ideas from running businesses without any difficulties.
- Neuroticism :-This traits includes factors like sadness, moodiness and emotional instability. Neuroticism state that for being a successful entrepreneur a person must have stability in his emotions so that they can achieve their desired goals and objectives. As people who stand high over this traits generally experience anger, mood swing, anxiety etc. which limits them in performing well.
Every person is differ in term of their personal traits and in order to become more successful like Walt Disney and Steve Jobs, an entrepreneur must have certain skills and ability which make them different from others (Siegel and Wright, 2015). These skills can be inborn and they can also be learned from experience or developed through training, education or learning etc.
P7. Background and experience that can foster entrepreneurship
While starting or establishing a business, an entrepreneur faces number of issues that may influence the functioning of business and these occurrences of these problems may either foster or hinder an individual. To became successful it is very essential for a person to learn from its mistakes as past issues build up the ability to deal with upcoming difficulties.
Steve Jobs and Walt Disney are the two successful entrepreneurs who motivate others to perform well in their life as well as business. Walt Disney was an animator and entrepreneurs of a American animation industry (Skoggard, 2016). He work as a farm boy and use to create ads for newspaper and magazine before being an entrepreneur. Later he started his own animation company and created a cartoon character named Mickey Mouse which was the reason behind his success.
Apart from this Steve Jobs was an another successful entrepreneur who motivates by his success story. He dropped his college due to financial problem and before becoming an entrepreneur he faced various difficulties throughout his journey. Later he started a company with his friend and launched his first computer which was known as APPLE I and changes the whole image of electronic industry. While working together they both get succeed and Job launches various other gadgets such as iPhone, iPod. From both of above case it is understandable that there are some unique traits that makes an individual different from others and also make them successful throughout their life.
Various elements which affects the style, action and decision making of an entrepreneur are as follows:
- Education:-This is a very essential factor which greatly influence the way he performs action and decision making process of a person as well as also build up various skills that help in dealing with situations (Wright, 2014). Education helps in shaping up the behaviour of an individual and assist them in decision making process during entrepreneurship practices.
- Personal traits:-This factor involves certain characteristics which a person either learn from education, training, past experiences and certain practices or they are inborn. Some personal factors which make a entrepreneur successful are time management skills, leadership skills, interpersonal skills and communication skills. Steve Jobs and Walt Disney have interpersonal and leadership skills which foster them to perform certain actions for becoming successful entrepreneur.
- Background:-The background of an individual is also major factor which either foster or hinder them for performing (Zahra, Newey and Li, 2014). As in above cases, the Steve job faces various difficulties which created barrier in their career and they might hinder them to perform actions, but he taken them as an experience and move ahead to become successful.
From the above project it has been concluded that entrepreneurs are the persons who are unique in term of their skills ability and they also help in developing social and economical factors of a country. As they take an initiation to start up a businesses by bringing some unique idea with an aim to offer product or services which is new to market and will improve the living of people. Apart from this by establishing new business they provide employment opportunity to people that further contribute toward the improving the standard of living and economical status of country. But for becoming a successful there are certain skill and abilities that an entrepreneur must have such as hard working, good communication and adaptability which foster them to accomplish their goals and move ahead to achieve greater success in their life.
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