Entrepreneurship is one of the fundamental components for the economic and social growth. It brings forth not only national development but also regional as well as local too. For this reason, even though the entire concept of entrepreneurship seems simple, the entire working of it is complex and dynamic; and also each of the entrepreneurial capabilities in an individual differs from one another in respect of the life experience and knowledge they acquired. The report aims to discuss the aspect of entrepreneur and entrepreneurship in an extensive way.
P1: Provide an introduction to the report by examining different types of entrepreneurial ventures and explaining how they relate to the typology (different types) of entrepreneurship. Your introduction should aim to define entrepreneurship and explore entrepreneurship scope and typology
P4: Building on the information you provided for P3, you must explain the importance that small businesses and business start-ups on the growth of the social economy
Ducker (2014) defines the process of entrepreneurship as one of the most creative approach towards the business and business activities to organize, manage and lead people within the organization towards the organizational goal. It is also important an effective entrepreneurship will bring forth positive change and development for the organization. Ducker (2014) points out that the overall entrepreneurial activities consist of innovative way of developing and enacting materials, the techniques in which the developed materials are utilized and adopted, and finally expand the entire process of production or the manufacturing.
On the other side, Kirzner (2015) signifies the mental ability that an entrepreneur should have during the operation, in order to bring order and harmony to the chaos, this involves all the risk that are hidden in the business and marketing activities. Krirzner (2015) also associates the term ‘entrepreneurship’ with the words ‘innovation and creativeness’ , which in turn contributes to the growth and sustainability of the organization as a whole.
It is a known fact that the current and the future business, and also other important sector dwells upon effective and efficient entrepreneurial skills of the individuals. Ducker (2014), one of the fundamental aspect of the concept of entrepreneurship is to formulate a vision for the company, and through time implementing it in the most strategic and timely way. Hence, assessing true entrepreneurship does not only confines within walls of an organization and the development of a specific organization, rather it influences and contributes to the overall local and national economy as well, and also take into consideration all environmental requirements during the momentum.
Here are the various kinds of entrepreneurship in accordance with its companies or the organization associated with:
Large Corporations: When it comes to large corporations, it has a certain life cycle; and this mainly because they acquire growth as well as sustainability through synthesizing new services and products, and also through the business of the persisting products and services respectively. When it comes to large corporations, they are always subjected to competition; hence it is important for them to mould their products and services accordingly with the changing business environment and trend, and the most adaptive and effective change can be bought forth by efficient entrepreneurs. According to Kirzner (2015), the innovative and creative ability of the entrepreneur manifests best during the turning point or the imminent change.
Entrepreneurship of Small Businesses: When it comes to small businesses, UK has an immense rate in the sprout of start-ups. According to Shattner (2016), there is a tremendous growth in the emergence of startups in UK, in the year 2015-16 only, there were more than 3630 startups sprouted in UK only. It is also important to convey the very fact that these startups are also contributing to the overall employment in UK to more than 19.8%. Local and regional supermarkets, internet cafes and stores, consulting companies, automobile retailers and even small-scale production houses constitutes some of the small-business startups emerged in the last few years in UK. The formations of these companies are through few members or even as a family business model.
Scalable Business Startups and Entrepreneurship: The ventures that have the goal to dynamically change the entire persisting model, says Ducker (2015). This type of entrepreneurial ventures focuses more on the quality and in the creative aspect of the business, and for this reason they involves efficient personnel as their workforce. As the term itself suggests, the main aim of these companies are the ‘scale’, which indicates the financial investment and the venture capital funds for the expansion.
Social Entrepreneurship: The fundamental aim of this kind of entrepreneurship is to develop the products and services for the betterment and progress of the people and societal systems. The entrepreneur of these firms focuses to produce and implements products or services that would lead to effective and efficiency of the society and environment, and also towards the betterment of the population.
P2: Building on the different types of entrepreneurial ventures explored in P1, you are now required to explore the similarities and differences between each. You could consider the roles, characteristics and objectives of different types of ventures: private; public; social enterprises - as well as different sized ventures: micro; small; medium.
The similarities and the dissimilarities are of different types of entrepreneurial ventures according to Schaper et al (2014) are;
| Type of Entrepreneurial Ventures | Attribute of the venture | Roles | Goals |
| Business Entrepreneurship | The main attribute of the business is to generate revenue and profit. | Since the main aim of these ventures is to generate profit and revenue, the role they acquire is also competitive in nature. For this, they would indulge in ht e production of quality product or services or both in order to win the customer segment | As discussed in the ‘role’ section, the main aim of the business company is acquire maximum revenue and profit, and through this to become the leading company in the respective industry and also to acquire maximum market share. |
| Social Entrepreneurship | Social entrepreneurship is mainly oriented on the betterment of the society, people and the environment | Social entrepreneurship’s role is to synthesize product and service for the overall betterment and improvement of the three afore said areas, and that is people, society and the environment | Through development of the effective and efficient products and services that would influence and improve the ongoing condition of the environment, people’s living and through this society as a whole |
| Macro Entrepreneurship | Macro entrepreneurship is largely managed and lead by business founders and owners of large businesses. For them, their main vision is to bring change within the industry they are established through more market shares and expanded revenue, and establish themselves as leaders of it. | The entrepreneurs of these types take the role of the captain, and through this a better understanding of the organization they are at work can be understood with all its strength and weaknesses. Hence, by strategizing suitable market and operational strategies to become successful and acquire market shares in the respective industry. | Goal is to become the market leaders and successful in acquiring the maximum market segment. |
| Micro Entrepreneurship |
Founded and operated as a small-scale, within minimal investment. When it comes to small business or the macro-entrepreneurship, the maximum number of employees would range 5-10, since the initial annual revenue would range from £50,000-£100,000.
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Although the workspace for the employees are comparably small than that of the macro entrepreneurial ventures, it is important to comprehend the very fact that these small businesses would provide an efficient ground for the employees to acquire industry knowledge and to develop efficiency. For this reason a better understanding and knowhow on the activities, operations and the role they have to play would empower the entrepreneur in efficient entrepreneurship. |
To generate maximum profit within the established industry
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P3: Present, interpret and assess relevant data and statistic to illustrate the impact micro and small business have on the economy. You should consider local, regional, national and international economic impacts.
As discussed earlier in this reported startups or in other words small-scale businesses are sprouting in a significant rate in the country of UK. As Shattner (2016) posited in the Forbes article, more than 3500 startups in UK alone during the time period of 2015-16. One of the main reasons for this phenomenon is the nation’s political and economical condition that is favoring the start as well as growth of these companies. Shattner (2016) also says that there is a major contribution by these small scale companies towards the country’s economy, for this reason the political and legislative factors are immensely favoring the country in its economic and financial position.
Parker et al (2012) in their international business journal states that there are various factors, which are contributing to this strong economic condition in the UK for the small businesses and they includes the overall industry growth rate and the revenue turnover. In the 2015 ‘Telegraph.uk’ article by Elizabeth Anderson, a whopping amount of £ 5.7 Billion was accounted in the year 2014-15 alone as micro business turnover, and in comparison to the total turnover that is evaluated in the UK’s small-medium-large businesses, this accounted to 13.7%. On the other side, the employment rates have risen with the sprout of startups during those periods of time.
It is estimated that more than 27 million people are employed under small-scale businesses across UK and this includes both men and women. If the total workforce in UK has to be estimated, among the total workforce 25.7% is considered to be employed in small scale businesses (Anderson, 2017). It is also important to signify the fact that the overall business growth of the small scale is surging, in comparison to the big companies in UK, and according to Anderson (2017) the major reason for this growth factor is the introduction of innovativeness and creativeness in the strategic and operational area in the small businesses. When comparing these factors with the big companies, innovative and creative’s are lesser in percentage says Anderson (2017).
Ducker (2015) asserts that importance of creativity and innovation in business are crucial for its growth and sustainability, hence in this case UK’s small business have developed and implemented various creative and innovative techniques in acquiring business and market leadership. And Anderson (2017) affirms this fact that a larger percentage of the sprouting as well as the existing small businesses are heavily indulging in the development and implementation of creative and innovative strategies for the growth and sustainability. From this, it can be comprehended that the small businesses in UK are currently a major contributors of the business ideas and also contributing to the overall economic growth of the country. On the other side Parker et al (2012) affirms that small-businesses or the companies in UK played a major role in surpassing the difficulties and challenges faced by the nation during the 2007-08 global recession.
When it comes to UK business sectors, there are mainly three business industry that played and still playing crucial role in the economic growth, and they are the ‘Hospitality Industry’, Real-estate Industry and the ‘wholesale-retail industry’. And it is in these three industries that maximum numbers of startups are occurring throughout UK. According to Storey (2016), 39.8% of the total revenue constitutes and is generated from these three major sectors. It is also important to note the fact among the 10 companies that get registered in each week of a month, at least four of them belongs to any of these three industries discussed as per Storey (2016).
As discussed before, the small businesses in UK play a very crucial role in the economic growth and sustainability of the country. A larger percentage of the populations within UK are employed or in other words working in small-businesses and these small-enterprises acts as a core generator of employment in the industry. With these employment, the flow of cash within the economy becomes and effective (Lewis, 2013). Many of the small businesses, which became successful and also emerging, are opening up significant opportunities for the local and regional population of UK. With these facts, information and data discussed, it becomes clear that small-businesses are without a doubt one of main component and spine for the economic growth and sustainability in UK.
New jobs and new opportunities are getting created by the small businesses without a doubt, which in turn contributes to the bigger economic growth of the country itself. Apart of being a major reason for the economic boost and employment, small businesses in UK are also playing an important role in modernizing the entire UK’s financial structure as well as the lifestyle. Hence by understanding the entire facts tabled here, it becomes clearer on the very role of small businesses and its contribution towards social as well as financial economy of the nation.
P5: Determine what makes a successful entrepreneur. You could consider examples of successful entrepreneurs and determine the characteristic traits and skills they possess. Similarly, you could explore whether entrepreneurs are born or made and whether entrepreneurship skills can be learned over time.
Entrepreneur or entrepreneurship is a concept that surpasses the mere confinement of business management. When it comes to success of an entrepreneur in the current context, he or she should surpass the conventional way of starting and managing a business, and reach towards a new level where innovation and business go hand in hand. It is also important for an entrepreneur to develop ideas in accordance with the changing business environment and implement those business ideas in the form of strategy towards the business. Hence a mere ability or a skill is not sufficient in an entrepreneur; it rather requires passion and desire too.
During an recent article, Richard Branson, the Co-founder of the company Virgin Groups asserted that there are numerous factors that influences a entrepreneur. One of the main assertions he made was on taking the risk, since entrepreneurs should always be ready to take risk (Branson, 2013). According to him, risk brings forth tremendous opportunity for the business as well as for the personal growth of the entrepreneur. Apart from it, it is also important for the entrepreneur to be adaptive towards the situation, especially when it comes to leadership styles (Branson, 2013).
When it comes to question whether leaders or the entrepreneurs are made or born, there a two notions sustained among the scholarly world; where one side posit that ‘entrepreneurs are made’ and the other says ‘entrepreneurs are born.’ Baum et al (2014) in their book, ‘The Psychology of Entrepreneurs,’ asserts that the entrepreneurs are made, rather than the notion of being born is merely an old one according to them. They add that it is the external environment of an individual, which supports and moulds the internal aspect of that individual; and entrepreneurship, which is a combine factor of leadership and management skill, is mostly formed through that external stimulus as per Baum et al (2014).
P6: Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and mindset. You may wish to consider how personality is shaped by family upbringing, lifestyle, cultural differences and personal motivation and drivers amongst other factors.
There are various elements that constitute an success entrepreneur, according to Ducker (2014), it includes the ability to innovate, risk taking, development and implementation of new business ideas and even acquiring dynamic leadership and management skills. Understanding these aspects, it becomes clear that entrepreneur is an individual who reinvents from time to time in order to become competitive. There is a greater correlation between the entrepreneurial personality towards entrepreneurial motivation and mindset. Baum et al (2014) affirms that the entrepreneurial personality is majorly formed from the childhood itself, and the external environment in which he or she grew has a greater influence on the personality. The individuals who are bought up in an environment of creativity and freedom have shown prominent traits of leadership and management, than that of the individuals who are born and bought up in strict childhood environment. It is also important that these individuals who possess these positive personality traits acquire more skills in understanding their fellow men or the workers, which in turn contributes to the overall mindset and above all towards entrepreneurial motivation.
P7: Examine, using relevant examples, how a person’s background and past experiences can hinder or foster entrepreneurship. Factors to consider may include level and type of education, national culture, economic circumstances and character traits. The risks and rewards of starting a business should also be considered.
The approach of each entrepreneur is different when it comes to business and decision making process. These differences are mainly because of the personality traits they acquired through time and life experiences. Education and the life experience is a greater catalyst in the formation of an individual personality, and the same applies to an entrepreneur too. Baum et al (2014) points that traits such as self-motivation, self-management and coordination is important in an entrepreneur and they are derived from factors such as education and life experience, since it is these aspects that make the individual to surpass the challenges in the way.
For example, Richard Branson says that his risk taking ability is mainly formed from his past experiences, since he believes that with each challenge an opportunity and knowledge opens up for the individual. Assessing his positive view or the character towards the business, it becomes clearer that this was formed through the education or the knowledge he received through the life experience.
One of the main and the more prominent terms that has been uttered throughout the scholarly articles on the subject of entrepreneurship is the word ‘risk’. The concept of risk carries a tremendous opportunity as well as challenges for the individuals, and it is one of the profound character traits in a successful entrepreneur. It is also important that this risk taking factors in an entrepreneur have developed through time with the factors such as knowledge and the life experience in which that knowledge is acquired. Therefore for an entrepreneur who is initialing a business startup, risk is one fundamental factor that he or she must understand in all its aspect, because risk does not mean blindingly taking a leap of faith, rather constituting the idea through the calculation of challenges faced in the past, makes the entire process effective and efficient.
M3 To achieve M3 you are required to develop your response to P5 and P6 by exploring and examining different lines of argument relating to entrepreneurial characteristics
Task P5 and P6, explores more into the concept of entrepreneur and entrepreneurship. One of the fundamental questions has been explored here, what makes the entrepreneur successful, and as the discussion detailed there is not one but many elements at play for its success. This affirms the notion that each of the entrepreneurs has same as well as different approach towards their business, and this approach is greatly influenced by the character traits or the personality of the individual, which formulated through the course of time.
M4 To achieve M4 you are required to develop your response to P7 by analysing the link between entrepreneurial characteristics and the influences of personal background and experience to specific successful entrepreneurs, differences that small, medium and large businesses make to the economy, applying relevant data and statistics.
Task P7 extensively explores the entrepreneurship through the concept that entrepreneurs are born. Each of the positive or the negative attribute that a entrepreneur has, is because of the past experience and the knowledge he or she accumulated through that experience. Since the notion has been affirmed that the entrepreneurs are born, it becomes a clear factor that accumulated life experience has a greater role to play in the formation of the entrepreneurship. The example of Richard Branson himself would clarify this notion, since his risk taking ability is mainly an acquired skill, in which he have already dealt with the same situation before in his business experience. When each of the challenges are surpassed, it gives an extra confidence for the entrepreneur to face the next, as discussed in the earlier part the ability to take risk does not mean to take a leap of faith, rather a calculated move towards the challenges and opportunities.
Conclusion:
The report explores the concept of entrepreneur and entrepreneurship in an extensive way. It also discusses the contribution of business or the entrepreneurial ventures towards the growth of the region as well as for the nation. On the other side, the report also conducted a detailed study on the attribute of entrepreneurs and entrepreneurship.
References:
Anderson, E. (2017). Britain hits record number of startups as more aspiring entrepreneurs take the plunge. Telegraph.co.uk. Retrieved 8 July 2017, from http://www.telegraph.co.uk/finance/businessclub/11692123/Britain-hits-record-number-of-startups-as-more-aspiring-entrepreneurs-take-the-plunge.html
Baum, J. R., Frese, M., & Baron, R. A. (Eds.). (2014). The psychology of entrepreneurship. Psychology Press.
Drucker, P. (2014). Innovation and entrepreneurship. Routledge.
Kirzner, I. M. (2015). Competition and entrepreneurship. University of Chicago press.
Lewis, W. A. (2013). Theory of economic growth (Vol. 7). Routledge.
Parker, S. C., Congregado, E., & Golpe, A. A. (2012). Is entrepreneurship a leading or lagging indicator of the business cycle? Evidence from UK self-employment data. International Small Business Journal, 30(7), 736-753.
Branson, R. (2013). Richard Branson on Taking Risks.
Schaper, M. T., Volery, T., Weber, P. C., & Gibson, B. (2014). Entrepreneurship and small business.
Shattner, W. (2017). Forbes Welcome. Forbes.com. Retrieved 8 July 2017, from https://www.forbes.com/sites/yoavvilner/2016/01/18/16-london-based-startups-ready-to-take-on-2016/
Storey, D. J. (2016). Understanding the small business sector. Routledge.
Anderson, E. (2017). Britain hits record number of startups as more aspiring entrepreneurs take the plunge. Telegraph.co.uk. Retrieved 8 July 2017, from http://www.telegraph.co.uk/finance/businessclub/11692123/Britain-hits-record-number-of-startups-as-more-aspiring-entrepreneurs-take-the-plunge.html
Baum, J. R., Frese, M., & Baron, R. A. (Eds.). (2014). The psychology of entrepreneurship. Psychology Press.
Drucker, P. (2014). Innovation and entrepreneurship. Routledge.
Kirzner, I. M. (2015). Competition and entrepreneurship. University of Chicago press.
Lewis, W. A. (2013). Theory of economic growth (Vol. 7). Routledge.
Parker, S. C., Congregado, E., & Golpe, A. A. (2012). Is entrepreneurship a leading or lagging indicator of the business cycle? Evidence from UK self-employment data. International Small Business Journal, 30(7), 736-753.
Branson, R. (2013). Richard Branson on Taking Risks.
Schaper, M. T., Volery, T., Weber, P. C., & Gibson, B. (2014). Entrepreneurship and small business.
Shattner, W. (2017). Forbes Welcome. Forbes.com. Retrieved 8 July 2017, from https://www.forbes.com/sites/yoavvilner/2016/01/18/16-london-based-startups-ready-to-take-on-2016/
Storey, D. J. (2016). Understanding the small business sector. Routledge.
