Entrepreneur plays an important role in very small as well as large business. The report helps to understand the meaning and scope of entrepreneurship and also presents different barriers to start up business. The report deals with Jacob Edward Cohen who is one of the best entrepreneur in UK and opens a largest store TESCO in United Kingdom. It presents different types of entrepreneurial ventures and also explore the differences and similarities between them. The report also interpret different data and present how it micro and small business impact on the economy of UK. It explain the importance of small business to the growth of social economy and also present the economy of UK and the importance of society. The report presents characteristic of Jack and other entrepreneur. The report assess how Jack's entrepreneurial personality is different from other which reflect their mindset and entrepreneurial motivation. The report also examine that how background and experience can prevent or hinder the entrepreneurship.
P1 Presenting different types of entrepreneurial ventures
Entrepreneur refers to that person who are willing to develop or organize any business along with their risk as well as profit and Entrepreneurship is the study of how a new business are created or the actual process of starting a new business by a successful entrepreneur. There are basically four types of entrepreneur ventures and these are mentioned below:
- Small Business Entrepreneurship: This type of business refers to independently-owned and their aim is to fulfill all the needs and demands of their family members. Their objective is to grow their business into ling term business in order to maximize profit with possibility of eventual sale to employees or their family members (Cooper and Folta, 2017). They did not take loans from ventures and they used to take loans from the banks or micro loans and even generated revenue or can take loans from their relative or family members. For example, restaurants, beauty parlour, small retail stores etc.
- Large company Entrepreneurship: they mainly offers new products and most of them grow through innovations by using different technologies in order to attract their customers and their aim is to maximize profit. They used to follow different rules and regulations made by the customers and implement those into their business. For Example: TESCO, General Motors etc.
- Social Entrepreneurship: it refers to those entrepreneur who mainly focus on creating new products in order to fulfill or solve the needs of society. They are generally non- profit organizations whose aim is not to collect revenue or not to acquire market share. Their goal is to make the world a better place for people. Examples, those organization who work for the welfare of society (Kirzner, 2015).
- Wennekers and Thurik: Entrepreneurs are those who have the skills to promote their business in further level of success. Through their empirical research, they want to enhances their competitive advantages in market but they work in small firms only. Wennekers also states that these type of entrepreneur understand the role of entrepreneurship in the growth of economy.
- Schumpeterian Entrepreneur: This type of entrepreneur basically work in order to contribute in their economic growth as well as through their innovative skills they want to develop the business and promote them for their future growth.
- Intrapreneur: This are those entrepreneur who promote through their different innovative things and through marketing they develop new strategies and promote their business for profit maximization. They mostly work in large firms with a good idea of promoting the project into forward direction.
- Managerial Business owner: This type of entrepreneur are those person who have small business but they are known by their different attributes as per the interest of the company. Such as owner, manager and entrepreneur owner and entrepreneur owner manager.
Typologies of entrepreneurship
- Serial Entrepreneur: These are those entrepreneur who continuously comes up with their new ideas and then start their business. Through their new and innovative ideas they further expand their business and also create firm structure to maintain the focus.
- Based on Gender: when the business are owned and managed by the men then they are called men entrepreneur. On the other side, if women are defined and managed the work then the business are owned by the women.
- Scalable Startup Entrepreneurship: they are quite different from the small scale entrepreneurship and they mostly try to innovate and uses high advanced technologies in order to create new market place and change in current market place. Their aim is to use advance technologies into the business and even they attract investment from passionate Venture Capitalist such as government grants, subsidies or their personal funds (Entrepreneurial Ventures, 2018).
They are directly linked to the typologies of the entrepreneurship and as per the Author Smith, who define two type of entrepreneurs one is craftsman and another is opportunist entrepreneur and the main factor which makes them different from each other is the growth orientation of opportunist entrepreneur but later on its is further modified by different author and these typologies help in making decision process for the business growth and development. Later on, Miles and Snow developed four basic types of typologies which are prospector, Innovator, follower and reactor (Storey, 2016). These typologies are mostly help to understand the nature of relationship between a type and its subject/ object. Entrepreneurs are mostly concerned with these typologies in order to motivate their staff for the well functioning and to achieve all goals and targets of a company. They are also help to identify the factors that affect the future progress of a company as well as their actions.
P2 Presenting the similarities and difference between entrepreneur ventures.
There are basically four types of entrepreneur ventures and they all have similarities as well as differences which makes them unique from each other. These are mentioned below:
Similarities: small business entrepreneurship are mostly achieve financial independence and their aim is to build profitable business. In order to achieve the goals, they can transfer the business into their family members. on the other side, large business entrepreneurship, also wants to generate more income by using different innovative products to their business. All the entrepreneurship ventures aim is to serve the best products to their customers and wants to fulfill their demands. While starting a business, they all take risk whether the business will be successful or not. However, scalable and large business entrepreneurship uses different innovative products which help to provide better products to their users. Well mannered small companies always tries to adapt anticipating market trends and use different technologies in order to achieve the targets of the companies while on the other side social entrepreneur also make new offers in order to fulfill the demands of society (Parker, 2018). The time and attention of entrepreneurial management is always diverting to find out new products and services. Through their innovations, they always try to attract wide number of customers and reach to the further level of success. Basic similarities between all the entrepreneurship ventures is they all take loans from bank in order to grow their business and achieve their defined objectives. All the entrepreneur ventures aim is to provide best products or services to their customers and tries to fulfill their demand.
- Aim: Scalable enterprises are mostly come up with new innovative products and they are totally different from other entrepreneur ventures their aim is to generate significant wealth for the investors. On the other side, small business enterprise's aim is to only earn good revenue from the business and to grow their business more in order to generate more profit. Its main objective is to generate a payroll taxes and jobs for the unemployed people in United Kingdom. While large company entrepreneurship main aim is to maximize more profit as compared to other and social entrepreneurship aim is to serve the products for the welfare of the society (Lipset, 2018).
- Employees: Large companies have greater number of employees as compared to other ventures while social entrepreneurship have sufficient number of employees as compared to others because they work for the uplift the standard of living which is totally different from others ventures.
- Capital: For small business, they take loans from their family members while large companies they use bank loans for their business growth. On the other side, social enterprise, they uses charity funds for the better growth of the business (Freel, 2018).
- Turnover: Large business venture basically help in the economy of the UK but small business contribute their big amount in the economy of UK such that basically they contribute almost 90 percent of their money for while on the other side social entrepreneurship makes only 10 to 15 percent of their amount.
- Purpose: small business helps to fulfill all the needs and demands of their family members while Large business main purpose is to to maximize profit and on the other side social entrepreneurship helps for the welfare of the society.
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P3 Presenting different data to illustrate impact of micro and small business on economy
Small and Medium Sized firm has played a great contribution in the growth of economy. They are the major source of providing new jobs as 99% of Private Sector is held by SME's. Small sized firm are the seedbeds of Innovation and thus help in flourishing the growth of economy. In 2015, there were 5.4 million private sector businesses in which there were 1.3 million employing businesses that accounts for 60-70% of total employment in United Kingdom (Westlake and et. al., 2012).
SME helps in growing and developing of Economy in many ways these are:
Economic Growth: Small sized business plays a vital role in economic growth as most SME jobs are in services sector that accounts for two-third of economic activity and employment in OCED. Further, SME play a vital role in developing and boasting local economies of the region as they promote usage of local resources and talent for their business and employ local people which help in increasing contribution of local economies.
More over the number of Small Sized businesses grew by 18% whereas Medium Sized business grew by 21%. There was downfall in the growth of Large business by 3% due to merger and takeover activity.
Job Creation: Small business plays a major role in creating job opportunities in the economy as SME are more labor intensive rather than capital intensive. In 2016, SME employment was 15.6 million that accounts to be 60% of total employment in private sector. The employment in large sector was 10.5 million that accounts to be 40% of total private sector jobs thus, it can be interpret that SME are the major source of Job creation in the economy.
Turnover: It is important to calculate the economic growth and contribution by any sector in economy. Small and Medium Sized business has shown an impressive growth given contribution of £1.8 trillion that accounts to 47% of all private sector businesses (Gonçalves, Carrara and Schmittel, 2016).
Large business shows more turnover then SME as they contribute£ 2.0 trillion hat accounts to 53% of total turnover contribution by private sector business in United Kingdom.
Small business are the backbone of the industry because they contribute their big portion in the economy of the UK. Through their innovative ideas and driving growth small business encourages to flourish. The small business size firms of the UK are beneficial and have symbiotic relationship with the country's overall performance. Even they contribute around 46 percent of the total amount and raise the economy of the UK.
Impact on Industry: United Kingdom is composed of two main form of industry that is retail and manufacturing. Almost every three businesses out of ten falls into this category. Further, Wholesale, retail and Repair accounted for 15% of all SME employment and over one-third of SME turnover in the UK private sector. Thus, it can be interpreted how much SME contributes in the growth and development of United Kingdom.
P4 Importance of small business and business start-up to the growth of social economy
Small business are vital to success and growth of United Kingdom economy. They help in job creation, economic growth, local and regional development, encourages healthy competition, etc. thus, contribution made by Small business is vital and important for the growth of social economy. It influences Social economy in various ways:
- Create Stability: Small business help in creating stability as they generate revenue and financial strength that help in creating stable economy. They provide resources, Products/services which is required by large corporations, citizens and government department.
- Balanced Regional Development: Small business help in developing backward regional areas as they set up new businesses and industries for the growth of these less developed area. This result in developing of infrastructure, better links to road and railways, stable supply of electricity and water, development of school and hospitals in these backward areas (Amendolagine, Capolupo and Ferri, 2014).
- Developing personal relationship: Small business basically help to maintain the personal relationship between employees and customers which no other entrepreneurship will maintained that is why to start up the business with small business is helpful.
- Low overhead and response quickly: The biggest advantage to start up the business is to have low overhead cost as compared to others which creates direct impact on the social economy and in small business there is little hierarchy and it is quite flexible as compared to others and also reach the quick decision whenever it is required.
- There is a huge importance of small business and business start up to growth of social economy as it also help in the country's economy. This business not only help in success stories but they also help to meet the demand of local peoples need. It has been analyzed that most of the UK business are small and generally people try to invest their money on small business in order to grow.
- The small business are not require any extra expenses in order to strat up new business. Therefore, it is mostly prefer by the peoples to start their business at small level. Even the starting cost of the business are not as much high as large business are, hence to start the business with small business is quite beneficial for the people who are looking forward to start a new business.
- There are various advantages of introducing small business because to start with this they contributed in the improvement of social economy (Benefits of Small Business, 2018). They also help in bringing the growth and innovations to the community in order to meet the basic need of the society.
- · The small business basically aim is to attract talent who invent new products and to implement new innovations or solutions for the existing ideas. The biggest advantage of small business is they prepare to take risk and gives an opportunity to stay ahead in the competitive market.
Entrepreneurship is the simplest activity which is done to establish the business in order to taking the financial risk in the hope of profit earning. It further divided into many sections such as small business entrepreneurship, large company, scalable start ups.
There are various types of entrepreneur ventures that play an important role in different countries economy and these are small business entrepreneurship, large company, scalable start up companies and social entrepreneurship. They all have different aim and objectives in order to fulfill the demand of customers (Hitt and Duane Ireland, 2017).
The growth of ventures are helpful to the economy of the country and as a result, these help to raise country economy. The growth and scope of venture especially in small scale will help for the economy of the country and it will help to raise profit.
Small business have wide scope in United Kingdom and they creates wide impact on the business as well as entrepreneurs too. The scope and growth of the business is totally depend on the skills of an entrepreneur. Small business help in maintaining the sustainability in the economy of the nation.
Entrepreneurial characteristic such as good leadership qualities and motivation skills also influence the personal background. In the context of Jack Cohen, he also possess best qualities to become a good entrepreneur and also faces numerous problems which are directly relate to their past but he remain unaffected and as a result become one of the best entrepreneur in UK.
Jack Cohen was one of the best entrepreneur who founded TESCO at very young age and now the company is one of the best leading supermarket in UK. This is basically done by Jack because of having motivation skills and good marketing strategies and have good background experience which came up from his past experience (Parker, 2018). Jack also have courage and energetic with innovative thinking that makes him different from others and with his critical thinking and good motivator, become one of the best entrepreneur in UK.
Jack Cohen background is not as much good as other such that their financial status is not as strong which help Jack to work as per the needs. On the other side, Simon Cowell who is an English Reality show judge also did not have good background. But they both struggle and achieve the goals and objectives of their future requirement. They both show that background and experience influence entrepreneur by both positive and negative way.
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This report concludes that Entrepreneur are people who grabs the opportunities, take risk and create innovative products that helps in promoting economic development. Entrepreneur emerges from different forms of entrepreneurial ventures and through their innovative outlook they create great opportunities for development and promotion of economy of UK. Further, these Small and micro businesses create a great impact on developing and promoting social and economic growth of country by creating stability, job opportunities and generate revenue to the society. Further, the report shows how the characteristics, traits and skill of successful entrepreneurs help them to differentiate it from other people. Entrepreneur has the skills like, Time and Money management, risk taking and Open-minded attitude which help him to grab each opportunity and transfer it into reality. Sir Jack Cohen has used its entrepreneurial traits and skills to create small grocer shop into leading Supermarket chain Tesco which is third largest retail company in the world.
Books and Journals
Amendolagine, V., Capolupo, R. and Ferri, G., 2014. Innovativeness, offshoring and black economy decisions. Evidence from Italian manufacturing firms. International Business Review. 23(6). pp.1153-1166.
Cooper, A. and Folta, T., 2017. Entrepreneurship and high‐technology clusters.The Blackwell handbook of entrepreneurship, pp.348-367.
Dees, J. G., 2017. 1 The Meaning of Social Entrepreneurship. InCase Studies in Social Entrepreneurship and Sustainability(pp. 34-42). Routledge.
Freel, M., 2018. Entrepreneurship, Innovation and Small Business.Blackburn, R., Clercq, DD, &.
Gonçalves, C. P., Carrara, K. and Schmittel, R. M., 2016. The phenomenon of social enterprises: are we keeping watch on this cultural practice?. VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations. 27(4). pp.1585-1610.
Hitt, M. and Duane Ireland, R., 2017. The intersection of entrepreneurship and strategic management research.The Blackwell handbook of entrepreneurship, pp.45-63.
Kirzner, I. M., 2015.Competition and entrepreneurship. University of Chicago press.
Lipset, S. M., 2018. Values, education, and entrepreneurship. InPromise Of Development(pp. 39-75). Routledge.
Naranjo-Valencia, J. C. and et.al., 2018. Entrepreneurship and Innovation: Evidence in Colombian SMEs. InHandbook of Research on Intrapreneurship and Organizational Sustainability in SMEs(pp. 294-316). IGI Global.
Parker, S. C., 2018.The economics of entrepreneurship. Cambridge University Press.
Reuber, A. R. and et.al., 2018. International entrepreneurship: The pursuit of entrepreneurial opportunities across national borders.
Storey, D. J., 2016.Entrepreneurship and new firm. Routledge.
Westlake, S., and et. al., 2012. The Innovation Index-Measuring the UK’s Investment Innovation and its Effects. List of contributors viii Preface xi Introduction.\ p.71.