Introduction
A lot of ventures have been organized so that the growth of the entrepreneurship can be promoted I the local areas but the growth of these types of ventures are entirely dependent upon the participation of the government and the private sector companies. A lot of ventures are possible with the help of entrepreneurship but it can only become possible with promotion and bright ideas (Ács, Z.J. and Audretsch, D.B. eds., 2006). It has been observed that the growth of a country’s economy is not dependent upon big companies but a lot of small business can create a drastic change in the economy of a nation.
With the help of the most senior member of the Federation of Small Business (FSB), the report has been created to demonstrate that small business ventures plays a great role in boosting the economy of a country. The report demonstrates the fact that small trading companies have the capacity to create entrepreneurship and a lot of methods have been used to demonstrate the growth of entrepreneurship in a society (Ács, Z.J. and Audretsch, D.B. eds., 2006). The report also demonstrates the fact that the environment in which the business ventures is being developed also plays a major role.
Task 1
P1 Different types of entrepreneurial ventures and explaining how they relate to the typology
Depending upon the different types of entrepreneurial ventures, there are basically four different types of ventures are possible. These are small business ventures, start ups, large apprehensions and social activities. These are being discussed in the paragraphs below:
Small Business Ventures
This type of business ventures are basically owned by a single person and have a little or small scope of development. The investment in this venture is low and the area benefitted with this project covers a limited area. The employees in this business venture are low and the chances of its development are also limited (Zahra, S.A., Gedajlovic, E., Neubaum, D.O. and Shulman, J.M., 2009). This business stream is mainly financed by banks and credit departments.
The pattern of ownership in this type of business organization is privately owned.
Start Ups
The Start Ups business is a very newly developed business ventures and the growth of this type of organization is considerable (Zahra, S.A., Gedajlovic, E., Neubaum, D.O. and Shulman, J.M., 2009). These business starts at a very small level but the growth of the organization at maturity is large and high.
The ownership pattern of this type of business organization is privately owned.
Large Apprehensions
A large apprehension organization is organized with a large capital investment and these are basically concerned by the organization or a company. This business venture expands and covers a large area thus the growth of the organization is maximum. This type of business tries to expand with the help f different means like customer strategic methods or offering different types of offers and sale.
The ownership pattern of this type of business organization is privately or publically owned.
Social Activities
The social activity type of organization is formed to serve social purposes. This type of organization is formed to serve social enterprises and basic requirements of the society. His type of organization basically does not generate profit and are concerned for the growth and the enrichment of the society (Wright, M., Birley, S. and Mosey, S., 2004).
The ownership pattern of this organization is socially owned.
Several types of entrepreneurship ventures can again be classified as social, private and public owned depending upon the nature of ownership. A close relationship has been developed between the various types of entrepreneurship and their ventures. The relationship of these organization and its ventures has been described below:
Schumpeterian Entrepreneurship
This is a type of business venture in which the entrepreneur works to generate small business income and make profit and operate in a closed chain (Wright, M., Birley, S. and Mosey, S., 2004). After a sudden amount of time the enterprise grows and expands to achieve the desired objectives.
The Schumpeterian entrepreneurship is related with large concern and social organization.
Managerial Business Owners
The managerial business owners are concerned to a limited area and are related to selected activities. They conduct various innovative process and lay stress on the growth of the organization. They generally work to generate profits and does not put great stress on growth and development (Wright, M., Birley, S. and Mosey, S., 2004).
Intrapreneurs
The intrapreneur is called the employee of the organization who works on behalf of the entrepreneur. They work hard and later on create their own organization. They are also very innovative in nature. The type of entrepreneurship can be applied for setting up of Start Up business.
P2 Explain the similarities and differences between the various types of entrepreneurial business enterprise
There are a variety of different types of business enterprise that has been presented below:
Small Organizations
These organizations have been set up to provide requirements to the business owner. These organizations have been set up to generate profits in a regular basis and are not innovative in nature (Liao, J.J. and Welsch, H., 2008). These organizations have been set up to create profit in an everyday ways. They have been set up to create a small business ventures and work in a small area.
Large Organizations
The aim of the large organization is to create a brand name and create a support of the stake holders. They have a large business ventures with huge capital investments which can boost the resource of profit and the amount of the wealth. They create a expansion to a larger scale and moves forward to a level of global expansion (Liao, J.J. and Welsch, H., 2008). They work in a large environment.
Social concerns
These organizations have been set up to serve the people of the humanity and the group of people. These organizations have been set up to create the development of the society and fulfill the needs of the community. They work with a large or even in a small work force (DeMartino, R. and Barbato, R., 2003).
Start Ups
The Start Ups have been formed by a creative and innovative mind of a society. They work for the growth and expansion of the organization. The innovativeness of these organizations has been set up to develop innovative products and serve their customers in a better way. They start in an initial level but soon expand to grow on a large scale (DeMartino, R. and Barbato, R., 2003).
P3 Demonstrate the impact of small business and micro organization in the economy of a country
The small business ventures is considered as the most important and most beneficial part of the economy of the nation. This has been approved by UK and various other well developed nations. They also consider that these small business ventures are the most important in most of the time (Thurik, R. and Wennekers, S., 2004).
Researches show that the strength of UK’s economy is mainly governed by these small business organizations and enterprise. The people of these organizations are higher innovative and creates new and well developed ideas that can boost the economy of UK (Thurik, R. and Wennekers, S., 2004). The living standard of the people also gets very advanced and is widely affected by this. Researches also shows that the 99% of the growth of economy of UK is mainly because of the SMU and thus the growth of UK is mainly concerned with the growth of SMU also. But the research of RSA showed that only 55% of the small business organization can continue for more than 5 years (Storey, D.J., 2016). The impact of the SMU of the boosting of economy of the nation has been described below:
- It has been observed that UK’s economy is mainly dependent upon small business ventures. Researches also showed that the total turnover of SMU at the end of the year was £ 1.6 trillion in the year 2014. With this enormous turnover of the company, the GDP of the nation also rouse to more than 47%.
- The SMU has a very substantial amount of labor force with an employment of more than 24.3 million people of UK (Storey, D.J., 2016).
- It has also been observed that the contribution of SMU in the nearby areas, district level, countrywide and worldwide level is a lot. The contribution and the growth of the SMU employed a lot of young and deserving candidate so that the financial stability of the organization can be maintained and the development of new products and technologies can also take place which can enhance the growth and living standard of the people (Storey, D.J., 2016). The expansion of these small business ventures to international level ca boost the economy of the nation to a large extent.
P4 Importance of small business ventures and Start-Ups on country’s economy
A direct relationship has been established between the economy of the nation and the behavior of the society. A lot of other conditions are also responsible for the growth of country’s economy like the tradition, culture, ethics and various other things that are responsible that can affect the behavior of the customers (Burns, P., 2010).
It has been already observed that the small business ventures and the Start Ups business creates a major impact on the economy of the nation. The new and developed ideas create a lot of innovative products that can improve the standard of living of the people. However, it has some adverse affect also that leads to confusion among the customers when a lot of products are available to the market (Dobbs, M. and Hamilton, R.T., 2007). But it has been observed that the small business ventures create a lot of impact on country’s economy but the breakdown of the company that has been observed in the research of RSA creates a significant burden to the growth of nation’s economy. Considering all the above facts and figures it can be said that these small business ventures create a huge impact on the economy of the nation (Dobbs, M. and Hamilton, R.T., 2007).
Task 2
P 5 Determine what makes a successful entrepreneur
There are lots of cases, which can gives us clear information that an industrialist is born not made. Although, there are lots of examples which can monitor the reality that the truth the experiences of life is expanded by the various persons who have made them to be the big industrialist and by this the collision upon their life. A conflict is swarmed by Barclays Bank at London, UK, upon the matter that an industrialist is born or made. The mass of the individualities were present in the conflict has decided that an industrialist is mostly made not born. Jamal Edwards, who is the inventor of the SB. TV opined being an industrialist is a topic of environment against foster. It has been stated that an industrialists are 5% born and 95% made (Drucker, P., 2014. ). It is instituted that the many industrialist have predicted the inclination to start ay new organization, where it is recognized that they are innovative and gives new ideas to the organization. According to the Edwards, when he was worked at HMV, he was irritated with the orders to innovate the new ideas. The suggestion is suggested by Edwards look like almost all the personalities are attend that conflict. Although, the declaration id declared by Dough Richards, creator of an institution for start-ups and also an investor of a TV show, named Dragon’s Den was excellent, that here only an industrialist are born. By the learning of various personalities like the capabilities to take risk, belief on you etc. This starts to increase or grow in any person (Baron, R.A. and Markman, G.D., 2003).
The methods for the increment of any enterprises are as follow:
Tenacity
It is very important for an industrialist to increase the tenacity to resolve the doubts of any new company or business. They all are considered to be constant, resolute and committed to increase their business in the ups.
Passion
The passion is the main things and also very important for any successful business. The victorious industrialist are not inclined by the gains but through the passion to take any awards through business. The passionate persons are very much aware by the increasing the creations and the innovations output and by this they gives the services to their clients or the customers in a better way and also according to the needs and wants of them.
Vision
This one is also very important for an industrialist to see all the ups and downs in vision. They must have the capability to recognise the clear change to do the increment and the promotion of any new product in a market to flourish grows the business. They must create the innovative things so that they can attract more people to increase their sale and also create their goodwill in the market.
Self- Belief
The self- confidence is very important because without this an industrialist cannot take a good decision for his or her company so if he or she does not have any confidence on him or her then they cannot run their business properly. There are lots of problem in the creation of any business so if the self confidence is absent then that person does not take the better decision for his or her company.
P6 Aspects that reflects the entrepreneurial personality upon the entrepreneurial motivational and the mindset
The most vital thing to do any agreement with the positive output of entrepreneurship is the increment in the behavior or body structure and the manner to do the agreement with lots of persons. It is to be considered that the capability to become the industrialist is by birth and inborn and it is found that the outside surrounding is also plays an important role to update the behavior and manner of any person (Haynie, J.M., Shepherd, D., Mosakowski, E. and Earley, P.C., 2010.). The following cases with the encouragement and the devotion of any person that polish his manners or behavior to become an industrialist:-
The factors to clear about anybody’s behavior and manners are as follow:
- The family is very important to become a good and respected person. The surrounding of any child is a very vital things and it plays a very important role in the increment of his innovations and also in thinking. The culture and tradition of a child by his or her family is very important because they are the motivators who encourage the child to do the innovative things and thus makes him or her independent person so that he or she chose a best for them (Neck, H.M. and Greene, P.G., 2011). A family must have to respect the child’s decision and they also go through by that so that the child does not fell alone in his path.
- Lifestyle: The word lifestyle is plays a very vital role to build any body’s life. The immorality in any person’s behavior is very harmful for any corporation because he or she does not have that mind who thinks so many ideas to develop the company. The scheduled life is very limited so it cannot help to increase the corporation. An industrialist must be a planner first so that he or she can imagine the new and also successful ideas so that the company will not going to see any loss. The varieties of decision can change the surroundings of an industrialist or those people’s also who belong to him. So in short the lifestyle of any person must be simple not be complicate so that he or she can do the work in a proper way and create a space in the market for them
- Culture and social factors: The manners of any person are belonging to the culture and society or the surrounding in which he or she had live. So this will help him or her to create the new ideas for the company and also vendors. An industrialist must engage to all the societal and the culture so that he or she can understand all the things easily and must absorb all the changes simply which has done in their surroundings.
P7 Background and experience of an individual that can hinder or foster entrepreneurship
One best example that can be used to prove the above point is the entrepreneurship in promoting Virgin Atlantic. Sir Richard Branson experienced a very negative experience in air planes because of their improper and inappropriate services. Sir Richard decided to set up his own air line with the help of investors and partners. This airline industry will offer all the facilities and services that are required by the passenger (Fayolle, A. and Gailly, B., 2015). The Kindle that has been developed by Amazon was manufactured keeping in mind about the high prices of the books and the bulk of heavy books to the readers so that the children can read the book at a new platform with newly developed and advanced method (Fayolle, A. and Gailly, B., 2015).
The CEO of Blackberry company has also banned the advertising and the introduction of any change which may foster the growth of the company’s economy. The Kodak Company has also faced the same situation which degrades the market value of the company because of improper decision and lack of planning (Postigo, S., Iacobucci, D. and Tamborini, M.F., 2006).
From the above mentioned example, it can be stated that the past experience of the individual can help to make proper judgment and frame entrepreneurship in an industry. The judgment that has been taken before was because of the lack of economic conditions or incapability but these things should have to be managed properly so that company’s growth cannot get hindered (Postigo, S., Iacobucci, D. and Tamborini, M.F., 2006).
Conclusion
The project has been designed to show the impact of internal and external factors that are related with the entrepreneurship and its relation on the economy of the nation. The factors that can degrade the economy of the nation have also been explored. The project has also been designed to demonstrate the importance of qualities of a individual and the intrinsic personality that affect the small business ventures. The importance of acquiring the personality is that it can help in taking business decision in an appropriate manner. Some examples have also been described in the report that enables us to understand the importance of obtaining the personality. Thus it has been clearly established that all these factors are very important to create new business ideas and set up a small business ventures.
Reference
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Liao, J.J. and Welsch, H., 2008. Patterns of venture gestation process: Exploring the differences between tech and non-tech nascent entrepreneurs. The Journal of High Technology Management Research, 19(2), pp.103-113.
Thurik, R. and Wennekers, S., 2004. Entrepreneurship, small business and economic growth. Journal of small business and enterprise development, 11(1), pp.140-149.
Storey, D.J., 2016. Understanding the small business sector. Routledge.
Burns, P., 2010. Entrepreneurship and Small Business: Start-up. Growth and Maturity. Palgrave Macmillan.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Baron, R.A. and Markman, G.D., 2003. Beyond social capital: The role of entrepreneurs’ social competence in their financial success. Journal of business venturing, 18(1), pp.41-60.
Haynie, J.M., Shepherd, D., Mosakowski, E. and Earley, P.C., 2010. A situated metacognitive model of the entrepreneurial mindset. Journal of business venturing, 25(2), pp.217-229.
Fayolle, A. and Gailly, B., 2015. The impact of entrepreneurship education on entrepreneurial attitudes and intention: Hysteresis and persistence. Journal of Small Business Management, 53(1), pp.75-93.
