- Determine different types of entrepreneurial ventures and their relation with typology of entrepreneurship.
- Explore similarities and difference between entrepreneurial ventures.
- Use relevant data to determine the impact of micro and small business on economy.
- Explain the importance of small businesses and start-ups on economic growth.
- Use examples of entrepreneurs to determine the characteristics and skills of successful entrepreneur.
- Assess how aspects of entrepreneurial personality reflect their motivation to become entrepreneurs.
- Determine how backgrounds and experiences of entrepreneurs can hinder or foster entrepreneurship.
In order to define the entrepreneurship and small business management it is necessary to understand what is entrepreneurship. It is a risk bearing activity to develop and manage an organisation along with making profit. The most example of entrepreneurship is starting a new business. It is combination of land, labour and natural resources or capital. By collaborate all these components' entrepreneurship gain profit and achieve success. Furthermore, there are different types of entrepreneurial ventures are described in this report and also linked relation with typology of entrepreneurship(Burns, 2016.).. There are different roles, characteristics and objectives of the entrepreneurship ventures. Similarities and differences between private and public sectors are also described. Micro and small businesses contribute to the economy in huge manner. These are the business by which government can expand the activities of large scale businesses. Apart from these, there are different types of skills and characteristics of entrepreneurs described which makes differentiate from others.
P1 Types of entrepreneurial ventures :-
Generally there are four types of entrepreneurial ventures which are as follows :
Entrepreneurship of small business: in this type of business, they generally hire local employees or members of their family. These types of businesses are barely profitable. The main objective of these businesses is to fulfil the requirements and needs of their family members. They acquire profit after satisfy the needs and requirements of their family members. They do not have aim to take over the any industry or collaboration with others(Burns, 2016.).
Entrepreneurship of scalable start up: in these types of business, risk and return are unreasonable. The main objective of this business is to set up or start up a new business and make a large new market. These types of businesses provide job opportunities to local people. They also desire to make best of the time and money.
Entrepreneurship of large company: these types of companies make new product and sold its products into new market and new targeted customers. It includes a huge number of changes such as changes in legislation, new technology advancement and taste or preferences of customers(Lofstrom, Bates and Parker, 2014).. According to relate with typology of entre...it provides different types of benefits such as :
- expansion and growth
- attract new customer
- labour division
- capabilities of taking risk
- provide accessibility to finance
Social entrepreneurship: these businesses are generally related to the social activities. They focus on solving the problems and complexities of social activities. They develop fund to resolve the environmental issues which affect their business. In prior approach, companies do not take interest in social entrepreneurship but in now days this entrepreneurship are one of the best using approach in large scale businesses.
P2 similarities and differences between different types of entrepreneurship ventures :
Similarities between private and public sectors are as follows:
these both entrepreneurship are using same skills and techniques to solve and handle the situations(Lofstrom, Bates and Parker, 2014).
aim of these both entrepreneurship is to gain more profit from their regular activities.
A huge numbers of policies and regulations exist in both of the entrepreneurship.
Both entrepreneurship adopts innovative and creative thought and ideas to improve their position in competitive market.
Characteristics of private, public and social enterprises :
- freedom to make more goods in private organization.
- Independence to exchange commodity and goods
- freedom in determinant cost of a product
- victory to make net profit
- there is control of authorities in public enterprises
- it snaps public service(Lofstrom, Bates and Parker, 2014).
- monopoly factor in public enterprise
- public enterprises are specifically stable
- social group concerns about social difficulties.
- social enterprises are obsessed by their advanced ideas.
- Roles of private enterprises :
- to create the structure and keep maintain the services(Dees, 2017)
- to encourage existing business organization
- encourage improvement of ownership
- to support small and micro businesses
- to pull investments
- role of public enterprises;
- public enterprises are liable for maximisation of goodness (human welfare )
- public enterprises have to spring extreme attempt to attain social goals
- public enterprises face the powerful critical appraisal by the politicians.
The main part of private enterprises is to supply help to the economic growth and decreased poorness in region(Bruton, And et.al.., ). Not only private sector, even governance has also played a key role in economic growth and to decreased wealth. The private sector generates 60% of the funds and 90% of jobs in processing countries. To assist domestic partner governments, it shows a main function in assembled better environment and culture, to provide goods and services to public. Many of the business organization and institutions neediness to partnering with the private sector. For this, institutions do public private partnership. There are many welfares in the term of public private partnership. These type of relationship have fashioned to drawing card investment funds of private enterprises into public assets(Dees, 2017.).
P3 Impact of micro and small business on the economy
- Impact are as follows :
- Support the expert efforts
- Sharp the process of an organization
- Obtain new customers
Small businesses help in the growth of economy because it launch new markets and opening new markets it provides jobs to the local people. People get jobs thus their living standard is also increased. Income is increased thus economy will increase automatically(Lofstrom, Bates and Parker, 2014).
P4 Importance of small business and start ups businesses on the growth of social economy
Small businesses play a major role in local economies. While these businesses does not generate large money but contribute a large amount in economy. These businesses present new opportunities to the local employees. These businesses are generally combination of 500 employees or fewer. According to the case study, these businesses generate 65% of new jobs(Henrekson, and Sanandaji, 2014. ).
P5 Characteristic and traits of successful entrepreneurs
There are different types of skills and qualities which make a man become successful entrepreneur(Lofstrom, Bates and Parker, 2014).. These attributes can be defined as disciplined, confidence, open minded, self starter, competitive, creativity, determination, strong communication skills, strong work ethics and passion. These are the features of a successful entrepreneur. People with these qualities differentiate them from other entrepreneurs. Explanation is as follows :
Disciplined: successful entrepreneurs are always disciplined. They are able to take quick decision in their every day activity towards the achievement of their goal.
Open minded: successful entrepreneurs always accept the changes because they take the hanges as opportunities. They are open minded means they accept the facts of everyone and generate their ideas on those facts to increase the work efficiency(Lofstrom, Bates and Parker, 2014)..
Confident: this is the main attribute of successful entrepreneurs. They are always being confident about their decisions. They are confident about their knowledge that they will achieve success by implement these ideas or strategies. They never ask to anyone that whether they will succeed or fail(Lofstrom, Bates and Parker, 2014)..
Self starter: entrepreneurs always start their business on their guts. They know if something should be done then that has to be done by them. They create parameters of such activities and then start to do activities in practical. After the completion, they compare the both activities such as expected and actual activity. If any deficiency occurred, then they analysed and find out the causes to solve the problem.
Creativity: creativity and innovative ideas can be bring by the entrepreneurs only. Creativity is an activity which makes a distinction between unrelated situations. They produce a new product or add some new ideas in existing product.
Communication skills: having a good communication skill is also required for a successful entrepreneurship. Without communication skills, a person can not connect with other persons which are needed for their organisation. It is necessary to communicate with all the departments in an organization and also communicate with external factors(Amato and et.al., 2017)..
P6 Aspects of entrepreneurial personality reflect mindset of successful entrepreneurship
Entrepreneurs have all different mindset. Mind set of successful entrepreneurs can motivate the new start up entrepreneurship(Lofstrom, Bates and Parker, 2014). They have different mindset which makes them different from others. It is the characteristics which make them successful. There are mindset of successful of entrepreneurship which reflect the personality as follows.
- Customer comes first: a successful entrepreneur always keep customer first while other partners think product development should come first.
- Identify the new market for their exist product : always identify the new markets and new segmented customers through targeting method;
- Use technological advancement to build wide network: there are huge changes in the technology. Thus, successful entrepreneurs always try to use best of the technological advancement.
- give return on investment without expectations(Lofstrom, Bates and Parker, 2014).
- Control on the vision: it is necessary to keep control on the vision and activities done in the organisation;
- Power of brand: it is necessary to understand the power of the brand of your business's products(Amato and et.al., 2017).
Focus on the strengths of your business: if a business knows the strengths of its employees then it will become successful. Focus on the strengths rather than trying to overcome the weaknesses exists in the organisation.
Maintain quality control: always maintain the quality of the products.
You may also like this: