The objective of this report is to enhance understanding of learner in the context of entrepreneurship practices in order to determine its effective contribution in economy development practices. The area that this report is going to cover are:
- Identify a range of different type of ventures that can be considered entrepreneurial.
- Evaluate the impact of small business over the economy.
- Discuss the key aspects of entrepreneurial mind-set.
- Examine various environment that can hinder and foster entrepreneurship.
Concept of entrepreneurship is complex yet simple in nature and this is mainly being done with the purpose of earning financial security and thus this is the reason process of business is being started. Main focus of entrepreneur is upon bringing innovation and manufacturing new kind of products and services for the customers for gaining competitive advantage (Baum, Frese and Baron, 2014). Giving out new kind of experience is the major motive and thus by this they are able to attain growth and success. There are number of things which will be discussed within this report like having tools and techniques which can be used for exploring various kind of entrepreneurs within economical sector. There are various kind of factors which in turn can mainly affect the entrepreneurship in negative manner.
P1. Examining different entrepreneurial ventures and their relation with the typology of entrepreneurship
An entrepreneur is the one who mainly supplies the risk capital and thus mainly monitors and thus control the business activities. Entrepreneur can be found in many forms like sole proprietor, a partner or the one who majorly owns the majority of shares within incorporated venture. In marketplace, there are mainly four types of entrepreneur ventures which are established when business is being started:
- Small business Entrepreneurship: There are numerous entrepreneurs within current situation who are trying to enter within market of United kingdom by setting up of new kind of businesses. In market of UK, there are mainly about the 5.7 million small business which in turn has almost area of 11.7% of the business. This has led to minimising the unemployment rate which has almost covered the 50% of non governmental workers (Bhachu, 2017). There are various examples of this kind of business like grocery stores, agencies, wood store and the electricity products and these are being done with motive of getting financially secured and fulfil the basic needs. For this case, typology which can be linked is the fulfilling the basic needs and financially secured.
- Scalable Start up Entrepreneurship: In this kind of style, entrepreneur mainly starts the business with the aim of bringing change within the social and economical factors by attaining vision. It is highly needed to have various kind of resources in order to make the business and vision successful and thus for that investors are being seek out by entrepreneur who shares the same kind of mindset. Besides this, it Is highly necessary to have high level and experienced employees to work upon the vision. This kind of planning and taking effectual steps can lead to attain growth and success. Typology which is being related is the implementation of aggressive growth ventures. There are numerous kind of factors which are highly involved within the process of entrepreneurship and they highly focus upon the completing the objectives by taking out the skills and abilities by developing in better mode.
- Large Scale Entrepreneurship: In this sort of enterprise style, business is significantly being directed on substantial scale as they are being shaped with enormous measure of store. There are different strategies and instruments which are being used to pick up development and achievement and those systems can resemble advancement in new sort of items, utilizing most recent advances and perceiving the example of rivalry. The principle focal point of business person is on deciding and examining the genuine needs and wants of clients inside commercial centre and in this way fulfilling them in most extreme way (Burrows, 2015). The typology which is identified with extensive scale enterprise is on concentrating on manageability which will help them to develop and get achievement which they have wanted and that would b be able to done by catching expansive number of clients and piece of the overall industry and fulfilling clients in better way.
- Social Entrepreneurship: This sort of business enterprise primarily centres around assembling certain items and administrations which can be utilized to satisfy the requirements and locate the best possible answer for the social needs and issues. In this, business visionaries have principle thought process and that is improving economy a place with the goal that flourishing can be seen. These are predominantly non-benefit or mixture in nature (Butler, 2012). The sort of typology which can be identified with this sort of enterprise style is conduct in regards to development and achievement so it can empower individuals who are living in an economy so as to create themselves and along these lines live with better way of life.
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P2 Similarities and Differences between Entrepreneurial Ventures
There are many of the factors along with grounds for where similarity and differences which can be judged which are being described below:
Lifestyle Ventures or the business
Serial Entrepreneurs ventures
Female Entrepreneur Business
Male Entrepreneur Business
P3 Impact of micro and small businesses on the economy
There are various kind of small business within marketplace and thus they play crucial role in developing the economy. This is the major concern of the UK Govt. as these business will have high number of shares in market (Dacin, Dacin and Tracey, 2011). Numerous kind of factors for the respective country which in turn can mainly affect in positive and negative manner. Various kind of factors are like GDP rate, Import and Export rate, Unemployment rate and many more.
There are various kind of economical factors like UK which in turn can put number of factors like in 2017, there are about 7.2 million business which are operating in successful manner on small scale level. About 97% of the business which are small in nature which in turn can contribute for develop and growth factor. In United Kingdom, 33% is the unemployment rate which in turn can create 19% of the turnover (George and Bock, 2011). In current situation, 7 million small business are mainly present which is juts the double of the records which is 3.5 million in approx manner.
There is not much exact data in index which is formulated and thus they are mainly classified with some kind of basic conditions which are applied and this will resolve the issues and basic needs which are described below:
- Micro Business: Conduction of operations and business is being done with the motive of getting security in monetary term. There are mainly about 10-15 staff members who are employed within this business and the revenue is about $2 million dollars. Main focus is upon having strong position within marketplace so that revenue can be generated for attaining growth and success. This kind of business mainly works in form of Sole proprietorship where there is low level of funds are involved (Grimaldi and et. al., 2011). Certain kind of area by which arrangement of fund is being done. There are various kind of examples which can be taken is shops, coffee-shop, carpenters, workshop and many more. High capital is not required within the business.
- Small Business: This business is little in nature however it is considerably more high when contrasted with miniaturized scale level business. This can be expressed as one of the real distinction between amongst miniaturized scale and little scale business. It fundamentally comprise of less then 50 workers and turnover is approx 10 million dollars. The primary focal point of this sort of business enterprise style is catching huge number of clients in greatest level. In this, organization can be seen among business as it positively includes great measure of assets and that is at some point unrealistic for single individual to mastermind it. This sort of business is by and large private in nature as the range of Govt. does not influence the procedure of business. This kind of business can be either in organization or sole proprietorship.
- Medium Business: This kind of business is huge in nature when compared to small and micro level of business as this will mainly need the huge kind of amount of funds and thus launch business. This type of business which has around 250 staff members and the turnover is about 50 million dollars (Hitt and et. al., 2011). Revenue is being generated and that is the motive of business which in turn can mainly contribute in social and economical factors. There is the legal contract among two or more then two person of company for certain objective.
There are various areas within the economy which in turn will mainly impact SME'S:
- Employment: There is mainly about the 90% which in turn has been mainly captured by the small scale business which in turn helps out in giving out the employment which is about 50 to non Govt. workers. Ample of opportunities are being given who are looking for the job and get employed and this in turn will mainly reduce the unemployment rate which in turn can mainly be contributed for social development (Landes, Mokyr, and Baumol, 2012).
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