Entrepreneurship is one of the major concept in terms of establishing any new business unit in the market. This can be defined as the way by which a person design, execute and run a new venture(Acs, Autio and Szerb, 2014). This can be initially identified as small businesses with less number of resources and definite goals and objectives. A person who indulged in these kind of activities is commonly known as entrepreneurs. It is very important for every country to support the idea of entrepreneurship so that it can provide best companies to the counties and thus customer will also get best possible products and services (Morris, Kuratko and Covin, 2010). This will lead to create growth opportunities to the nation. This report mainly focuses upon various entrepreneurial ventures and its relationship with typology. There are also similarities and differences between the major entrepreneurial ventures.
P1 Different types of entrepreneurial ventures and its relation with typology.
Ventures can be defined as the the ways by which different companies are having different intension, goal, aim, and purpose in the market. Given below are the major entrepreneurial ventures:
Start up companies- This can be understood as those companies which are newly entered into the market (Alvarez and Barney, 2010). This is very clear from its name as well that start up companies came in the market with some limited resources and their main aim is to full fill the needs and wants of the customer without giving much preference to the profit margins.
Social- These type of ventures mainly find the ways with the help of which they can provide solution to the numerous social issues.
Corporate- These kind of companies are mainly investing their money in all innovative start up ventures. They are well established in the market and thus can expand their business very easily.
Public sector- They are focused towards giving best public services and thus plays a major role in the market.
On the basis of above mentioned entrepreneurial ventures, various types of typology can be described.
Small business- This kind of business can be defined as the way by which companies came into the market with less number of resource. Their main struggle is to deal with the level of competition and can act as per the demand of the customers (Chrisman, Chua and Levie, 2010). They initially do not focus towards making profit and with the help of strong strategies, they can attain the level of sustainability in the market.
Scalable start ups- Under this type of entrepreneurship, companies mainly have a strong marketing plan and with the help of self-confidence they can have a strong future as well in the market.
Large companies- They are having stability in the market with adequate amount of market shares and profit (Naudé, 2010). They are meant to become a market leader by expanding their business operations.
Social entrepreneurship- They are not in the market for the purpose of making profit or market shares. They are in the market to work for the profit of the
P2 Similarities and differences between various types of entrepreneurial ventures.
Given below are major similarities and differences among various types of entrepreneurial ventures:
1 one of the major similarities between above mentioned ventures is that they all comes under the head of entrepreneurship. Their purpose in the market may vary but main intention lies between the idea of working for one or the other goal.
- They all have to follow some legal aspects of the country without with they can not commence their business (Dennis Jr, 2011). There are some basic legislation and policies with the help of which the company will be able to stand in the market.
3 They are affected by a number of factors in context of micro and macro environment. External factors may include political, economic, social, technological, legal and environmental aspects. The different venture needs to be aware about the affects that can be caused due to the mentioned external factors.
Roles- Private, public, social and start up companies are all varies in the terns of their roles and responsibility in the market. Private companies are independent from the interference of government laws. Public companies are solely governed under the direction of government. Their roles are as per their goals.
Characteristic- Private company has an independent structure. Public companies have a constant structure described by the government. Social ventures are having easy code of conduct and thus, people can rely on them. Start ups on the other hand do not have a lot of investment in the market.
Objective- Main aim of start up companies is to provide just what is required by the customers. They are not meant fro earning profit in the market (Fassin, Van Rossem and Buelens, 2011). Their core objective is to survive and sustain in the market. Public companies are their in the market to provide basic services to the public. Private companies on the other hand deliver products and services and in the mean time, they are also concern about making profit. Social companies are totally different from above mentioned entrepreneurial ventures. They are into the market just to solve various issues of common people. They just work for the benefit of pubic and thus do not have any personal interest of earning profit in the market.
P3 Impact of micro business on the economy.
Every country adopts one or the other means by which they can achieve a level of growth in their economy (Nga, and Shamuganathan, 2010). The concept of entrepreneurship is one such way by which an economy can flourish. This is because introduction of new start up companies will result in the generation of funds in the economy. This will be helpful in improving the shape pf the economy by fulfilling all the needs and wants of the common people. Micro business can be defined as that business unit which is solely meant for the purpose of making products and services which are required by the consumers. They do not have very large expansion of their business in the market. Impact of micro business can be independently seen on local, regional, national and international level.
Local economy- Mainly all the small and micro business do not start its operation at a large scale. Initially they choose local economy in order to start their business. The core objective of small business can be evaluated on the ground of local economy (Helfat and Winter, 2011). This is because micro business does not have so much of funds and that is why they choose a local area and identify the needs and wants of the people living over there. In this way, they provide product and services in order to full fill the demand of local public. This provides a level of stability to the local economy. Small and micro business are having a huge impact on the local level in the UK, it is providing a employment around 48% of all private sector which is enough to show the significance of this sector.
Regional level- Once a start up company successfully made their name in the local market, their next step is to move towards regional economy. Their business operations now cover a large area people in order to provide best products and services. Regional economy will also attain a level of growth as new small companies are coming in the market just for the purpose of fulfilling the current needs and wants of the consumers. Around 5.5 million business has started in the year of 2016, these are supporting in providing better products and services to societies. Most of these business are based on the needs of the locals which is analysed by the owners of small and micro business owners.
National level- It is a known fact that national economy can clearly indicates the condition of entire country (Kirzner, 2015). It is made with the combination of local as well as regional economy. If local and regional economy is achieving growth that means, this will affect the entire growth of national economy. On the national level, these micro and small business are providing around 16 million employment to those people which are semi skilled. This factor is similar to 60% jobs of private sector which shows the scope and area covered by the small and micro business in the UK. It is providing support in the economy and utilised to unemployed people in growing the social economy.
International economy- This can be defined as the way by which the overall economic condition of the various nations can be seen. With the combination of various countries’ local, regional and national economy, finally international economic condition can be evaluated. Small business will definitely provides growth in the international economy as they are initially boosting the local, regional and national economy as well.
P4 Impact of micro business on social economy.
From the above discussion, it can be concluded that micro and small business is very helpful in order to determine the economic growth of local, regional, national as well as international economy (Nga and Shamuganathan, 2010). Social economy is a combination of private and public sector organisation which finally delivers their products and services to the betterment of society. In this way, micro business also has a great impact on social economy. Diversity of enterprises such as mutuals, cooperatives, associations and social enterprises sharing same values and beliefs commonly known as social economy. Given below are the major means with the help of which the impact of micro business can be seen on social economy.
Social economic will be flourished- As it has been already mentioned that small and micro business plays a major role in order to increase the effectiveness of the economy (Morris, Kuratko and Covin, 2010). But in context of social economy, the various elements with the help of which it is made get flourished. Most of the entrepreneur takes loans government bank to start their own business which helps to the locals to purchase their needed products. most of the small and micro business are started according to the needs and demands of society so it is supportive to accomplish targeted needs and demands.
Common people will get desired products and services- Social economy comprises with various cooperatives, mutual, associations and social enterprise. With the introduction of small and micro business, consumer will get what they want. All the needs and demand of the customers can be full filled. It supports to locals to get their desired products and services in their budget which can help to them to retain their life and enjoy by getting these products and services.
The potency of social economy will increase- It is a known fact that small business is very important in order to provide the best products and services to the common people. That is why, it can be concluded that all the different aspects of social economy will get a level of growth with the introduction of start up companies.
P5 Characteristics of a successful entrepreneur and whether they are made or born.
It has been observed that there are certain traits that can be seen in different individuals. As far as entrepreneurs is concern about, it can be clearly noticed that they posses some basic traits which make them a successful entrepreneur in the market (Naudé, 2010). Mark Zuckerberg is one such example who shows all the possible characteristics of being a successful entrepreneur can be reflected. Given below are the major traits that can be seen in the successful entrepreneurs:
Role model- This is so far the most important trait that can be seen in successful entrepreneurs such as Mark Zuckerberg. He is a role model for the rest of the people who are working in the organization. This will help the employees to act just like their management because they are liable for introducing and come up with some or the other kind of business idea in the market
Dynamic personality- It is very important for an entrepreneur who is successful to be dynamic in personality. They must have to be active in nature so that they can run the entire company in the most effective manner.
Act like a motivator- It is essential to be having that much guts that the entrepreneur can motivate their team members. In this way only, they would be able to achieve their target. Motivation is the only key to be successful in the market.
Leadership quality- As an entrepreneur is the person who comes up with the idea of business in the market and thus they finally execute the plan (Nga and Shamuganathan, 2010). That is why it is required by them to be a leader and lead the entire group of employees who are liable for performing the task within the organization.
Shows empathy- It is important for a successful entrepreneur to understand the needs and wants of their employees because if employees are satisfied, then only they will be able to perform as per the direction of the organization. This characteristic can be clearly seen in Mark Zuckerberg.
Punctual and positive attitude- This is again one of the major trait that can be found in one or the other successful entrepreneur like the mentioned one in this report (Puffer, McCarthy and Boisot, 2010. It is essential for them to show positive attitude in any kind of situation. They also need to be punctual so that all the objectives, goal and target can be achieved at the right time.
Now it is again a topic of full discussion that whether an entrepreneur is born or made. In this respect, it can be concluded that there are some people who are having inborn qualities of being a successful entrepreneurs. On the other side, there are some people who develop their interest in entrepreneurship and learn several techniques and methods with the help of which they can establish a business plan in the market.
Thus it can be concluded that there are some basic traits which must be poses by a successful entrepreneur. This will help them to become a role model for rest of the market and prove themselves by becoming one of the known personalities.
P6 Ways by which entrepreneurial personality shows entrepreneurial motivation.
From the above mentioned points, it can be concluded that there are some essential traits that can be seen in the successful entrepreneurs (Nga and Shamuganathan, 2010). Their personality is also made with some effective characteristics. With the help of these personality, it will be very easy to evaluate entrepreneurial motivational.
There are various factors which directly shapes the personality of individuals. Given below are some of the factors:
Family upbringing- It is a well known fact that family is responsible for cultivating basic values and belief in an individual. That is why, the nature of an individual will entirely affected by the way their upbringing was. If a person is having ethics and morals, this will be surely helpful in building the personality of a successful entrepreneur.
Lifestyle- This can be seen from the way a person lives their life. It may include their usual schedule of a day. This will leaves a great impact on the ways a person will put forward their business idea in the market.
Cultural differences- This can be seen from the ways by which different values and beliefs followed by different religions (Puffer, McCarthy and Boisot, 2010). This may included some or the other kind of restrictions and freedom. This will definitely reflect in the business plan proposed by entrepreneurs.
Personal motivation- This one is one the most important factor which is responsible for motivating an individual. They can give their best if they have personal motivation. It is essential for the successful entrepreneur to be more energetic in nature. In this way only thy can solve their purpose of building up of new business unit in the market.
On the basis of above, it can be concluded that there are several factors which directly affects the personality of an individual.
P7 Person’s background and past experience can foster and hinder entrepreneurship.
It is a well known fact that a person’s past experience can have both negative as well as positive impact on entrepreneurship. If their background does not have any bitter experiences that mean it will act like a booster in terms of entrepreneurship. On the other side, if there were some bad experiences then this will be seen by the worst performance of entrepreneur. Thus, a person’s past experiences plays a vital role in order to determine the level of effectiveness of entrepreneurship (Russo and Perrini, 2010). There are some factors which act like person’s background and past experiences such as types of education, national culture, economic circumstances and character trait. This will definitely foster as well as hinder the concept of entrepreneurship.
Type of education- it is very important in a life of an individual to be educated. This is because educations make a person’s mind most broad and creative. In context of entrepreneurship, it can also be concluded that with the help of education, a person can use various concept of entrepreneurial ventures in reality. With the help of their knowledge they can run their business in the market. As Bill Gates is one of the successful entrepreneur of the world he has a personal interest in computer programmings so his parents admitted him in the same field in Harvard University where he takes a huge knowledge and information which helps to him in fostering to work better in his computer programming field.
National culture- It can be very well estimated that one country vary from the other one in context of their culture (Russo and Perrini, 2010). It may include their values, cultures, beliefs and norms. All the people living in nation will be highly affected by their culture. It is also true that the basic legislation will also comprise as per the culture of the nation. That is why, rules and regulations regarding opening up of any new ventures will be highly affected by their national culture. Mark Zuckerberg is American citizen and he is totally influenced by his national culture. He believes that friends, family and society is essential for a person to live so he has made a messenger which can help to people to communicate with each other.
Economic circumstances- It is so far true that a companies success will always depends upon the type of economy in which they operating (Samwel Mwasalwiba, 2010). It is very important for any start up or large company to choose a growing economy in which they can make profit and market shares.
Character traits- there are several traits that are found in the personality of an individual. These characteristics are responsible for directing the thoughts of an individual (Samwel Mwasalwiba, 2010). With the help of several qualities like leadership, empathy, dynamic personality and many more, a person can build up the skills of being an successful entrepreneurs.
Thus it can be concluded that past experiences and background of an individual will definitely play a major role in determining the success rate of entrepreneurship.
From the above report, it can be concluded that small and micro business plays a major role in order to providing best economic conditions. This is because they come up with best and creative business idea and thus, can create so much of money in the market. Common people will get the product and services as per their needs, wants and demands. They also have so much impact on social economy. This report will further reveal that there are some basic traits that are found in all most all successful entrepreneurs. Some of the entrepreneurs are born and on the other side, there are some entrepreneur who does not have any inborn qualities but with the help of learning, they become a successful entrepreneur. Person’s past experiences and background plays a major role in order to determine the effectiveness of entrepreneurship. For example, level of education, national culture, economic circumstances and persona traits.
Books and Journals
Acs, Z.J., Autio, E. and Szerb, L., 2014. National systems of entrepreneurship: Measurement issues and policy implications. Research Policy, 43(3), pp. 476-494.
Alvarez, S.A. and Barney, J.B., 2010. Entrepreneurship and epistemology: The philosophical underpinnings of the study of entrepreneurial opportunities. Academy of Management annals, 4(1). pp. 557-583.
Bosma, N. and Levie, J., 2010. Global entrepreneurship monitor: 2009 global report.
Chrisman, J.J., Chua, J.H and Barnett, T., 2012. Family involvement, family influence, and family‐centered non‐economic goals in small firms. Entrepreneurship theory and practice, 36(2). pp. 267-293.
Dennis Jr, W.J., 2011. Entrepreneurship, small business and public policy levers. Journal of Small Business Management. 49(1). pp.92-106.
Fassin, Y., Van Rossem, A. and Buelens, M., 2011. Small-business owner-managers’ perceptions of business ethics and CSR-related concepts. Journal of Business ethics. 98(3). pp.425-453.
Helfat, C.E. and Winter, S.G., 2011. Untangling dynamic and operational capabilities: Strategy for the (N) ever‐changing world. Strategic management journal, 32(11). pp. 1243-1250.
Kirzner, I.M., 2015. Competition and entrepreneurship. University of Chicago press.
Morris, M.H., Kuratko, D.F. and Covin, J.G., 2010. Corporate entrepreneurship & innovation. Cengage Learning.
Naudé, W., 2010. Entrepreneurship, developing countries, and development economics: new approaches and insights. Small business economics, 34(1). p.1.
Nga, J.K.H. and Shamuganathan, G., 2010. The influence of personality traits and demographic factors on social entrepreneurship start up intentions. Journal of business ethics, 95(2), pp.259-282.
Nga, J.K.H. and Shamuganathan, G., 2010. The influence of personality traits and demographic factors on social entrepreneurship start up intentions. Journal of business ethics, 95(2). pp. 259-282.
Puffer, S.M., McCarthy, D.J. and Boisot, M., 2010. Entrepreneurship in Russia and China: The impact of formal institutional voids. Entrepreneurship theory and practice, 34(3). pp. 441-467.
Russo, A. and Perrini, F., 2010. Investigating stakeholder theory and social capital: CSR in large firms and SMEs. Journal of Business ethics, 91(2). pp. 207-221.
Samwel Mwasalwiba, E., 2010. Entrepreneurship education: a review of its objectives, teaching methods, and impact indicators. Education+ Training, 52(1). pp. 20-47.
Entrepreneurship: Characteristics,Importance, Types, and Functions of Entrepreneurship. 2016. [Online]. Available Through: <http://www.yourarticlelibrary.com/entrepreneur/entrepreneurship-characteristicsimportance-types-and-functions-of-entrepreneurship/5228/>. [Accessed On 20th August 2017].