Entrepreneurship and Small Business
Contents
P1 &
M1. Different types of entrepreneurship ventures and relation to typology
P2. Exploration of the similarities and differences
between these three entrepreneurial ventures
P4.
Importance of small businesses and business start-ups to the growth of social
economy
M2.
Difference small, medium and large businesses make to the UK economy
P6. The
entrepreneurial personality reflect entrepreneurial motivation and mind set
P7 &
M4. Examining about how background and experience can hinder or foster
entrepreneurship
Introduction
Day to day business and various enterprises
become more popular due to it freedom, nature and other advantages. Among of
them businesses, small business becomes more popular among the entrepreneur
because of having various special criteria such as it is easy to open, easily
managed, limited capital, flexibility, no profit share and other. A small
business is type of business that has limited capital and less number of
employees or no employees. The person who takes risk to start up called small entrepreneur.
This report is based on the Entrepreneurship and Small Business that it will be
discuss the various types of entrepreneurships in UK. Among the entrepreneurships,
there are some similarities and some dissimilarity that also will be
illustrated. Small business has great impact on the UK economy as well. Then
the report also showed the importance of small business started and grow in UK
economy as well. Then the entrepreneur character will be showed in here which
can make different to other. Entrepreneur personality, knowledge and experience
impact will be showed here.
LO1
P1 & M1. Different types of
entrepreneurship ventures and relation to typology
Entrepreneur
is an individual who takes risk to start a business and operates the business with
his own willingness. These businesses get chance to be the future industry. An
entrepreneur is the individual who has limited resource, idea and planning
about any distinct matter where risk is also existed and get profit as the reward
of risk taking. There are various types of
entrepreneurship ventures existed in the UK market at present base on the size, nature, activity and others. These
entrepreneurships are as following-
Small
Business Entrepreneurship: Small Business
Entrepreneurship is the business where a person takes total risk for business
with having limited capital. Small business is managed by the own, his family
or sometime hired employee. The capital managed from family member and friends.
This is the most popular business all over the world as well as also popular in
UK that every day there is many small businesses lunched. According to statistics,
there are 5.5 million small businesses in London whereas 97,000 was previous
year (Casnocha, 2011).
This is not public sector business and non-governmental employees’ business
such as travel agency, tourism, Barber shop and other small level of business. This
is also related to Business Entrepreneurship because it is creative, motivated,
capital investment, risk taking, Versatility and others. This type of business
has developed in corporate or private sector.
Scalable
Start-up Entrepreneurship- A start-up entrepreneurship
venture is new emerged business that mainly developed with having new product
idea, innovative product, service and process. The vision of this entrepreneurship
is growing very firstly within the market as well. The capital is managed by
the financial investor where it successful ratio is higher. The crazy financial
investor mainly come to light lime through this business. This entrepreneurship
is also type of ventures because it taking higher risks and innovating things (Mullins, 2013). This is on
corporate sector business ventures.
Large
Scale Business Entrepreneurships: A large scale
business is the entrepreneurship where there are many employees, large capital
and has balance sheet. There are more than five thousand employees worked, the
capital is more than 1.5 billion and total balance sheet over 2 billion. The
large scale business entrepreneurship has finite life cycles. Such kind of
entrepreneurship grows largely with having sustaining innovation and new
variety of product based on the customer demand and test. The large scale
business entrepreneurship’s size and culture makes the disorderly innovation
intensively to execute. This business is related to the entrepreneurship
because there are some characteristic such as risk taking to starting,
innovating product idea, higher level of energy and high need of achievement .
Social
Entrepreneurship- Social
Entrepreneurship is the entrepreneurship that is developed for solving problem
related to the social or environmental issues in particular area by creating product
and service. The vision of the business is to make better place. This venture
has developed for non-profit, for-profit, or hybrid. This is also type of
venture because it is motivated, innovative organization and risk taking but in
minimal level (Mair and Noboa, 2006). Most of the cases, this venture is developed by the
public sector and sometime in corporate sector. This organization is also called
the charity organization.
P2. Exploration
of the similarities and differences between these three entrepreneurial
ventures
The four types of entrepreneurial
ventures have explained above where have some differences and similarities
found as well. Small business can take worker one or two to manager in some
countries where this is also restricted in
other country to the business legislation to start.
Small business has
taking the full risk of the business in case of risk taking behaviour whereas a
group of people takes risk in large Scalable Start-up business venture. Large
Scale Business Entrepreneurship is known as public sector business where the
risk of the business is distributed to the existing member of the organization
as well. Among of the businesses, social entrepreneurship is lower risking
business ventures where there is no risk or little risk of the ventures. But
all the entrepreneurship ventures have taken risk to sustain in the market that
it called the similarity.
The small business, scalable
start-up and social entrepreneurship are easy to start where the large scale
business entrepreneurship is difficult to staring and among of them small
business is more easy to start. Though small venture is easy to start but there
is higher risk contain in the operation. In social business, there is no or
little risk to start and organized (Mair and Noboa, 2006). Social and small business is also easy to start and social
business uses more new latest technology to be faster grower. All the business
has taking loan taking facility whereas small and saleable start-up business
should take own responsibility.
To manage start-up venture, the skilled
employees are needed and to be recruited because it is the most critical
business venture in business venture to be effectively and successfully. The social
business operation and function is similar to other ventures where the aim,
mission and vision are different (Mullins, 2013).
All these businesses have
also faces some challenges and this can handle with properly by manager where
small business has only one person to manager the whole problem because there
is no authority except the owner. The problem can be easily handled in large
scale of business because it has great management structure.
LO2
P3. Assess and critically examine the
percentage of micro and small business that contribute to the GDP
The business report published by the Rhodes
(2016) showed that about 5.5 million
business organisation found in United Kingdom. Among the fast growing businesses,
there are about 99% businesses ventures are in small and medium entrepreneurship
ventures and the number of micro business is 96% that
is about 5.3 million. In this yearly report, it is also showed that the micro
level business has 0 to 9 people as employees and the 32% employees accounted
to this business where as 19% employees turnover from this business as well so
that it can said day to day micro and small business is being developed because
it has lower turnover rate. The cause behind this is easy to open and
management. So, small and micro business has importance to contribute the national
economy and wealth distribution.
In London, there are around 10,000 resident adults and 1,464 propel are engaged
in businesses where in North East is only 679 person. In 2015, 14,000 employees increased but in 2016 the
number comes around 84,000 that is 2 present compare to all employees (Financial Time, 2017).
Additionally, this statistics is also showed that there
are about 74% businesses related
to the service oriented organisation as well that is called the one kind of
small business and entry 79% employees and turnover 72% from here. The hosted
business are only 5% from total business and 10% people ensure entry and 15% turnover
that means this is negative going. Small business was started to grow in
business world from 2000 on an average 3% yearly. But in 2016, the number of
small business is increased at 2 million that number is 59% of total business duration (Ons, 2017).
Form the time beginning 2000, the small and micro business becomes higher in
growing where other business become downfallen.
Figure: Enterprises
in UK, 2016
Source: Financial Time (2017)
The small business is more in Southern England than UK. In England there are around 4.8
million private businesses, 325,000 in Scotland and 222,000 in Wales. This
report is also showed that 1 million businesses in London and South East have
900,000 employees. Around 823,000(15%) employees work in SME sector as Professional,
Scientific & Technical employees and only 10% employees are in Retail
sector (Ons, 2017).
There are large and
great impact on the Micro and Small business to the
national economy to GDP growing. The one fourth of the business are non-employers and do not adopt to VAT
or PAYE registration. According to National Statistics 2016, there are 2.5
million hosted in the private sector including to the VAT or PAYE registry. There
are also un-registered businesses around 3 million. The national and local
government help them to grow because it support in the critical stage of
economy and gives more support to the education, health care and transport
sectors (Financial
Time, 2017). Due to the Brexit, the economic condition become
threated where it can be overcame through small and micro business.
P4. Importance of small businesses and business
start-ups to the growth of social economy
Social entrepreneur ventures are the entrepreneur
that main aim is to social service and welfare for people to eradicate the
social problem where profit is not main concern as well. From intrapreneurial
perspective, the social businesses are started where many large scale organizations
contribute to start up this as their additional part and from social
responsibility. The operation system of this business is like other business
but the goal and objective of this are changed that main objective is to help
people or social welfare.
According to Social Enterprise UK (2017), around 70,000 social enterprises has
been grown in 2012 that has great contribute to the national economy as well
around £18.5 billion and there are millions of people are related to it. The Social
Entrepreneurship report 2009, shows that there are younger people are eager to engage
it whereas their age was 18 to 24 years and rate is 4.4%. Besides the younger
people the elder people are also interested to social enterprises business about
1.7% involvements.
The national economy is also great impact
on the growing market of small and micro business. This business ensures the
job facility for the local people where before they were not engaged to any
economic activities. The unemployed people get the employment facility that
enhances the GDP of national economy (World Bank, 2017). The total TAX and VAT
paying quantity is higher than any other business sector that is also helpful
for national economy. The Welfare trust
fund has been developed with the national income from TAX
and VAT paying and contributes to social development. Small and micro business
has frequently changed because there is no bureaucratic problem and easy to
change as well that helps to grows social economy (Williamson et al, 2006).
M2. Difference small, medium and large
businesses make to the UK economy
The small, medium and large businesses
statistics is discuss above and among of the business, small business has much
more contribution. The medium size business is also help to national economy
whereas large business becomes threaten due to Brexit where they faces economic
crisis to sustain in the market where as small business can change their system
because it is more flexible to change (World Bank, 2017). After economic
crisis, the Financial Time conducts a survey on CEO of large company where most
of them show their fractionation and gloomy mentality. From the all organizations
only 8% have expectation slightly to improve and rest of the businesses are
not. In macroeconomic prospects, only 21% companies have expectation and 43%
said exposed negatively to their condition.
Task 3
P5 & M3. The characteristic traits and
skills of a successful entrepreneur that differentiates them from other
business managers
To be success entrepreneur, few traits and
skills are essential to make differentiate from one entrepreneur to others. The
skills and traits are needed to be successes that are as following-
Passion & Motivation- Passion is the behaviour of entrepreneur that has zeal to get something. The passion of an
entrepreneur is to develop the business after getting loss sometime. Motivation
is also forced an entrepreneur to change the plan of business and motived to
him for taking steps (Lee and Tsang, 2001).
Risk
Taking- This is the best characteristic of a
successful entrepreneur where it brings success to the business where the
failure entrepreneur do not take this as well. The profit is called the reward
of taking risk. Risk taking behaviour is essential to make differentiate to
others.
Self-belief,
Hard work & Disciplined Dedication- Self-belief,
Hard work & Disciplined Dedication all these are needed to keep in successful
entrepreneur where an entrepreneur can devote to work.
Adaptability
& Flexibility- Adaptability & Flexibility are
essential nature of an entrepreneur where it takes every situation easily and changes
the nature as their wants.
Money
Management- Money management is essential for
business where it grows capital and other expenditure in business. The loan
managing capacity is also included this characterises that differentiate to
other entrepreneur (Lee and Tsang, 2001).
Planning- Planning is the also essential characteristic for an entrepreneur
where without planning he can be failed that characteristic can be different
the successful entrepreneur.
Networking
Abilities- Network making among various levels can
be treated as the great skills of an entrepreneur where it increase or enhances
the business among friend and family that a successful entrepreneur does (Lee
and Tsang, 2001).
These are the determined traits and skills
that help an entrepreneur to be differentiate than other as success
entrepreneurs from other business entrepreneurs.
P6. The entrepreneurial
personality reflect entrepreneurial motivation and mind set
Entrepreneurial personality has a great
impact on the business where it helps to change the other person mentality as
well. The personality shows the entrepreneurial traits and skills that are
including risk taking, hardworking, networking, managing, plan and others. These
personality can motivated the others and mind-set of the manager. The reason of
taking risk of an entrepreneur is developed by motivating himself that is
helpful for job life. Motivation is so much important to be success in small
business. Motivation gives an entrepreneur to start and business, plan making, risk
taking and others where motivation works as medicine for mind (Taormina and
Kin-Mei Lao, 2007). The mind-set of the entrepreneur helps the employees also
to be motivated. Due to have aggressive behaviour an entrepreneur makes the employees
negative attitude. So, entrepreneurial motivation treats as the model of small
business.
Personality of an entrepreneur has great
impact on the small and micro business and mindset of the other people as well.
An entrepreneurhas have to be planted to their
work that helps the business area to enhacne. The great caracteristic of an entrepreneur
is risk taking behaviour where it helps to stronger to reach objective. An entrepreneurial
identity is varied from person to person where it is essential to reflect on
business. Personality is essential for mind-set to other entrepreneur and
related person . So every entrepreneur
has to be kept practicing the personality to be success in entrepreneurial
activities.
P7 & M4. Examining about how
background and experience can hinder or foster entrepreneurship
Entrepreneurship Background refers the
personal experience and experience where it gives much advantage to the conduct
the entrepreneurship. This is the incident that a person faced before and
gathers experience through the incident. Experience of an entrepreneur is gain
the real field knowledge from realistic incident. Both of the things are
essential for becoming a successful entrepreneur. For example- For the first
time an entrepreneur stared a business that become losses that is experience
and a person comes from business family and he knows the business very well
that is background information about the person. The new entrepreneur becomes
loses due to buyer shortage (Taormina and Kin-Mei Lao, 2007). From this, it can
understand the matter from the background information. If the entrepreneur
explores the cause of failing then he gather experience rather the background information.
But analysing the background information, a person can understand the knowledge
that is also essential but less effective than experience.
Both of the background and experience can foster
entrepreneurship that brings positive result as well. These can teach the entrepreneur
what should be done in future and what not by falling some situation as well. In
this regarded, background and experience can foster entrepreneurship.
Conclusion
After all in concluding remark it can be
said that there are various entrepreneurships and particular entrepreneurship
has great impact on the national economy and entrepreneurship has some
similarity and dissimilarity. Today’s people have softer cornet to small and
micro business that helps to economic growth. The character of an entrepreneur
is essential that is called the indicator of success. Entrepreneur background
information and experience is also important for success.
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