Introduction
Entrepreneurship is a process of starting a new venture by implementing innovative and unique ideas. The present topic is based on the entrepreneurship their prospects and opportunities in today business market. Different entrepreneurial ventures and their scope, growth, and development is also going to discuss here in this report. It will also include their contribution to the national economy, towards the local communities and their prospects in the global market.
LO1 Explore and illustrate the range of venture types that might be considered entrepreneurial
Entrepreneurship, entrepreneurial activity, and enterprise
The process of starting and running a new start-up business is called entrepreneurship, and the individual who aspires to establish his/her own business by taking financial risks is an entrepreneur.
Differences between serial entrepreneurs, entrepreneurs and owner-managers.
Serial entrepreneurs are that individual who comes up with new ideas and tries to start a fresh business continually but gives the responsibility to others to operate the business and again gears up to start a new venture (Walter and Block, 2016).
Where as a typical entrepreneur comes up with a solo idea normally starts and tries to stick with the present business for operating it smoothly.
Owner-managers are that person who is a strong pillar of a new business who always tries to realize their community needs by monitoring and operating various functional activities of their firm.
P1 Examine different types of entrepreneurial ventures and explain how they relate to the typology of entrepreneurship.
The different types of entrepreneurial ventures
Small business
According to UK companies, Act 2006 small business can be defined as the venture, which is a privately owned, such as grocery stores, travel agencies and many more. The turnover of a small business is £6.5 million and hardly comprises employees, which are not more than 50.
Micro business
A micro business is a subordinate class of a small business having less than ten employees including the owner. House planning, cosmetology, computer services are some of the examples of micro business (Zahra and Wright, 2016).
Medium sized business
A medium sized business comprises of £ 41 Million comprise employees of 100 or less than that and E-Commerce Business, restaurant business are some of the examples.
Large business
Large businesses are huge corporate firms having more than thousands of employees. Some of the examples of large businesses are large-scale industries, public corporations, etc.
P2 Explore the similarities and differences between entrepreneurial ventures.
Similarities
All the entrepreneurial ventures have a similar intention to operate their business successfully and to earn maximum benefits as much as possible.
All of them targets to implement innovative ideas to enhance their business.
Differences
The number of employees and the turnover varies according to the size of the business.
The organizational structure and business competence are poles apart.
M1 Investigate a diverse range of entrepreneurial ventures to demonstrate an understanding of entrepreneurship in both the public and corporate sector
All the entrepreneurial ventures are different from each other and to segregate them it is very important to conclude them based on business entrepreneurship and social entrepreneurship
Whether in a public sector or corporate sector entrepreneurship encompass the target of achieving maximum profits by evolving innovative ideas.
Entrepreneurs can recognize valuable opportunities and to implement available resources to manufacture innovative goods and services.
Intrapreneurs are those individuals who try to utilize entrepreneur skills without acquiring the risks and normally works in large industries and strive to recognize and utilize the available opportunities (Davidsson, 2015).
An entrepreneur is free to control or operate the business according to his or her terms, and an intrapreneur has to depend on the entrepreneur decisions and instruction to operate their business operational activities.
An entrepreneur bears all over risks of the business whereas the entrepreneur does not abide the all over business risk of the venture.
D1 Critically examine the scope, development, and growth of entrepreneurial ventures
Scope
The entrepreneurial venture can seek out for high returns on low investments.
They are not restricted to a small-scale business and search for opportunities not only in the community level but also in national level or international business level.
It is an attempt to boost self-employment and to recognize self-capabilities to generate a new venture and make a source of income.
Development and growth
The growth and development of entrepreneurial ventures are affected by different factors
Political factors
Various govt rules, policies and strict regulations influence and impact on the business operations and productivity. Thus the venture must operate their business following and abiding the rules and policies that have been implemented by the government.
Economic factors
The economic growth affects the entrepreneurial growth and development in many ways such as in terms of capital, raw material and market demand of commodities and services. Keeping knowledge of income and economic statues of a specific region where the ventures are operating their business is very important to enhance their growth and development.
Social and Cultural factors
Diversified cultural and moral values, religious among the societies are one of the important factors, and it mostly affects the entrepreneurial growth in international level. Producing goods and services that will value their target customers principles and ethics will be very beneficial for doing great business in the market (Welter et al., 2017).
Technological factor
Due to modernized and innovative technological tools and equipment, these business ventures find various difficulties to implement those whether due to limited resources or lack of knowledge to access those technological tools. Therefore, it is important for them to keep an eye on new and latest technologies.
D2 Critically examine how small businesses have an impact on different levels of the economy in a local, regional, national and international context
Local and Regional
Small business can contribute to the local economy of a specific region of a country by stimulating employment opportunities to the local communities. It will provide them a chance where they can prove their talent and skills. Setting up a new business in remote areas can enhance the development of that region (Dees, 2017).
National
The small business through earning a good profit by their business ventures contributes to developing the economy of the country. It helps to generate employment and overall income of the country
International
Globally it generates opportunities for other small ventures to mark their brand in the global market and it promotes export, import facilities, and makes the process for other entrepreneurial ventures.
Conclusion
From the above report, it can be easily concluded that entrepreneurial ventures have good and excellent opportunities globally. It not only provides new prospects for new talent to prosper their ideas through small business but also generates employment to the local communities of secluded areas of a specific region.
LO2: Assess the impact of small business on the economy.
Introduction
Small business has put a positive impact on the economy. First, it increased the Turnover rate, and on the other hand, it provides various employment opportunities to the individuals. Moreover, in 2014, the small as well as medium-sized based businesses had achieved a composed turnover rate of Euro 1.6 trillion. Besides these, among all small businesses, not all small businesses are employers. For example, sole traders are the one who wants to work independently. However, in UKIV, SMEs contributed their efforts for the job creation. In UKII (United Kingdom Institute of Informatics), the small businesses provide numerous job opportunities to the more than 24.3 million individual. It accounts for 81% overall workforce and 60% of employment of all types of the private sector. For increasing business growth, the SMEs plays a major role. It is essential to stop a business from becoming a passive, as well as allows all kind of active industries to increase above unproductive or dormant ones.
P3. Interpret and assess relevant data and statistics to illustrate how micro and small businesses impact on the economy.
Big data is used for analyzing the impacts of small and medium-sized enterprises on the economy of the United Kingdom.
Statistics:
60 percent of the overall employment
Turn over – Euro 1.6 trillion
81 percent of the total workforce
37% of the small and medium-sized enterprises engaged in innovative activities.
The SME collect 46% of the revenue from the businesses of the manufacturing industries.
P4. Explain the importance of small businesses and business start-ups to the growth of the social economy.
Social economy refers to as a rich or wealthy diversity which is formed with the help of the organizations and enterprises such as paritarian institutions, social enterprises, foundations, associations, mutuals, and cooperatives are sharing common features and values:
Independence from some public authorities
Autonomous management
Application and defense of the responsibility and solidarity principles
Demographic governance
For instance, regional or sectoral organizations( associations of renewable energy).
In the United Kingdom, the SMEs( Small and medium-sized enterprises) are the engine for the economy of the United Kingdom. Moreover, SMEs lead to social stability, economic growth and job creation. Besides these, for increasing the development and growth of the social economy of the United Kingdom, these enterprises stimulate innovation and entrepreneurship, as well as they, are very significant for boosting the employment and competitiveness within the UK’s social economy. Moreover, they contribute over 60% of overall employment and 55% of Gross Domestic Product in the country. They put a positive impact on GDP as well as also create some economic opportunities for the individuals of the United Kingdom. Moreover, it also contributes 70% of the overall revenue to the social economy of the UK.
Figure: share of various enterprises in the United Kingdom
M2 Evaluate the differences that small, medium and large businesses make to the economy, applying relevant data and statistics.
Difference between the large, medium and small businesses
In small businesses, overall 99 employees are employed, and in medium-sized businesses up to 199 employees are employed, and in large businesses, more than 500 employees work together. Mediums sized business attract the financing from some outside investors, and it collects money from some venture capital organizations. The small businesses got financing from their owners’ savings. However, large businesses can raise capital by selling their corporate bonds or by selling some stock shares to the general public. Besides these, small and medium businesses drive their more attention to the niche market, but larger business offers more services and product to the different types of consumers.
D2. Critically examine how small businesses have an impact on different levels of the economy in a local, regional, national and international context.
In the local level, the small businesses increase the opportunities of local job and the tax base for providing the business opportunities to the local people. In this particular level, they need low maintenance and less infrastructure. They made interrelationships possible between the economy and the local government of the United Kingdom. Apart from these, in all the levels including, local, regional, national and international level, they generate numerous income opportunities for the individuals. Moreover, in all these levels, they have provided opportunities to the individuals to attain financial independence. Besides these, they have encouraged innovations and create some job opportunities for all the levels.
Conclusion
It has been mentioned in this part that the small and medium-sized enterprises are responsible for the economic growth and development in the United Kingdom. It has positively influenced the social economy of the United Kingdom. Moreover, in the country, some differences have been found between the medium, small and large businesses.
LO3: Determine and assess the key aspects of an entrepreneurial mindset.
Introduction
In this part, some essential skills of the entrepreneurs are included such as flexibility, creativity and risk tolerance. The major difference between the business managers and the entrepreneurs is that the managers are the risk-averse and entrepreneurs are the risk takers.
P5. Determine the characteristic traits and skills of successful entrepreneurs (Alan Sugar) that differentiate them from other business managers.
Characteristic traits of some successful entrepreneurs such as Alan Sugar:
Collaboration
Decisiveness
Flexibility
Risk tolerance
Versatility
Vision
Persuasiveness
Creativity
Motivation
Disciplined
Confidence
Open minded
Self-starter
Competitiveness
Determination
Strong individual skills
Strong or vigorous work ethics
Passion
Innovative
Energetic
leader
Essential skills of the entrepreneurs
Self- reliance
Self-reflection
Learn
Sell
Manage and find people
Focus
Resiliency
Initiative
Decision making
Problem-solving
Formulation
Creative thinking
Ambition
creativity
Willingness to learn
Risk-taking
Courage
Confidence
Assertiveness
Perseverance
Capability to listen
Some differences are there between the business managers and successful entrepreneurs. However, the entrepreneurs have that ability to enlarge the business, but the business managers are not that much capable of enlarging the business of their organizations.
Differences between successful entrepreneurs and business managers:
Entrepreneurs
Business managers
Entrepreneurs can be casual or informal
The approach of the business managers used for every issue is very formal.
From the enterprises, the entrepreneur earns rewards for their efforts.
The companies provide remunerations to business managers.
The achievements are the main motivation factor for the entrepreneurs.
The managers got motivated by the capability and power of their position.
The entrepreneurs are focusing on starting as well as they are expanding their business ideas.
They focused on daily based smooth functioning.
Entrepreneurs are visionary as well as bears all types of business risks.
The business managers worked for their salary and did not bear any types of business risks.
The entrepreneurs are the risk takers.
The managers are the risk-averse.
P6 Assess how aspects of the entrepreneurial personality of Alan Sugar reflect his entrepreneurial motivation and mindset
In the United Kingdom, Alan Sugar is the famous and well known entrepreneurs. Moreover, Alan Sugar used some essential skills during an apprentice is intelligence, hard graft, ability to develop the relationships of positive working, good timing, humility, seizing the specific moment and tenacity. Moreover, Alan Sugar became one of the successful entrepreneurs because, among all entrepreneurs, Mr. Alan understood the ownership power and continually pursued all types of new opportunities. Besides these, Mr. Alan had conquered all type of business goals and objectives with the help of persistence and perseverance. Apart from these, Alan Sugar had good leadership, and with the help of it, Mr. Alan provides the various business guide to the business persons.
M3. Explore and examine different lines of argument relating to entrepreneurial characteristics
The personal traits of successful entrepreneurs are:
Charismatic
Energetic
Impatient
Manipulative
Visionary
Creative
Opportunistic behavior
Tolerance of ambiguity and uncertainty
Self- motivation
Proactive approach
Some researchers have been conducted the researches over these personal traits, but they found that not any single trait characterizes the entrepreneurs.
Moreover, the implication has been found in the entrepreneurial traits that it easily developed during childhood but is it not acquired these traits during childhood. According to the research, the researchers agreed that the drive, passion, and vision are the essential qualities of the entrepreneurial leaders, but they suggested that the traits like loyalty, relentless and flexibility are not that much effective. Therefore, for this particular reason, they ranked these traits much lower.
D3. Drawing from Scenario 3, Analyse the characteristic traits, skills and motivational drivers of successful entrepreneurs, supported by specific examples (Professor Muhammad Yunus)
Characteristics traits of successful entrepreneurs:
Flexibility
Visionary
Ambiguity tolerance
High energy
Assertiveness
Innovative and creative
Emotional stability
Conceptual ability
Strong desires for independence
Successful entrepreneurs used some essential skills such as :
The entrepreneurs have some technical skills including service/product knowledge and industry/ market understanding.
Risk taking and courage
Creativity
Confidence or assertiveness
Motivation drivers of the entrepreneurs:
Fairness
Independence
Camaraderie
Authority
Achievement
Safety or security
for example, For reducing the poverty, Mohammed Yunus introduced micro- credit systems for helping millions of individuals.
Conclusion
It has been concluded in this part that some differences have been found between the business managers and the entrepreneurs. Moreover, successful entrepreneurs have some characteristic traits such as flexibility, high energy and visionary.
LO4: examine the different environments that foster or hinder entrepreneurship.
Introduction
This particular section drives the attention toward the experience and background of the entrepreneurs. Moreover, good background, as well as good experience, are important for fostering the entrepreneurship.
P7. Examine, using scenario 3 (Muhammad Yunus), how background and experience can hinder or foster entrepreneurship
With the help of education, entrepreneurs can develop entrepreneurial mindsets and capacities. Moreover, they can increase motivation and awareness among individuals. Many researchers explained that the knowledge of a successful entrepreneurs comes from the working experience, education and personal background of the entrepreneurs. Apart from these, if the education or personal background of an entrepreneur is not good than it is not possible for that entrepreneur to achieve success in the entrepreneurship. Without a working experience, an entrepreneur cannot guide the people effectively.
M4 Using scenario 2 (Alan Sugar), Analyse the link between entrepreneurial characteristics and the influence of personal background and experience to specific successful entrepreneurs.
The essential entrepreneurial characteristics are:
Resourceful
Flexible
Persuasive
Future-oriented
Optimistic
Motivated
Passionate
Creative
Decisive
Adventurous
All these are the entrepreneurial characteristics of successful entrepreneurs.
Moreover, without having a good and strong working experience and personal background, an entrepreneur cannot achieve these effective entrepreneurial characteristics. Besides these, these characteristics are created in an individual during childhood. Therefore, it has been proved that the entrepreneurial characteristics are connected with the experience and personal background of a successful entrepreneur.
D4 Critically evaluate how background and experience influence entrepreneurs, both positively and negatively, by comparing and contrasting examples (D4). Compare Alan Sugar and Muhammad Yunus in your critical evaluation.
In the personal background, economic position or status of a family, family type and family size is included. Moreover, the good or strong family background provides a good source of entrepreneurship. In the family, social or occupational status influenced mobility. Apart from these, if the entrepreneur has spent some time in new or fresh ventures than very easily, that entrepreneur will achieve success. Other experience factors including technical experience, management, business years and age are not linked with the performance of the entrepreneurs.
Nega atively, if the entrepreneur is not having good family status or type than it is not easy for that entrepreneur to become a successful entrepreneur. Moreover, if the entrepreneur did not spend the time on new ventures that it is not possible for the entrepreneur to achieve success in entrepreneurship.
The Muhammad Yunus and Alan Sugar had spent times on essential reasons, that’s the reason, both the entrepreneurs became famous in all over the world.
Conclusion
It has been mentioned in this last part that without the good or strong background and experience, the entrepreneurs cannot achieve success in their carriers. Besides these, experience or background have that power to influence the entrepreneurship.
References
Dees, J.G., 2017. 1 The Meaning of Social Entrepreneurship. In Case studies in social entrepreneurship and sustainability (pp. 34-42). Routledge.
Welter, F., Baker, T., Audretsch, D.B. and Gartner, W.B., 2017. Everyday entrepreneurship—a call for entrepreneurship research to embrace entrepreneurial diversity.
Davidsson, P., 2015. Entrepreneurial opportunities and the entrepreneurship nexus: A re-conceptualization. Journal of Business Venturing, 30(5), pp.674-695.
Walter, S.G. and Block, J.H., 2016. Outcomes of entrepreneurship education: An institutional perspective. Journal of Business Venturing, 31(2), pp.216-233.
Zahra, S.A. and Wright, M., 2016. Understanding the social role of entrepreneurship. Journal of Management Studies, 53(4), pp.610-629.