N100 : Entrepreneurship and Small Business Management

Part 1

P1: Provide an introduction to the report by examining different types of entrepreneurial ventures and explaining how they relate to the typology (different types) of entrepreneurship. Your introduction should aim to define entrepreneurship and explore entrepreneurship scope and typology.

P2: Building on the different types of entrepreneurial ventures explored in P1, you are now required to explore the similarities and differences between each. You could consider the roles, characteristics and objectives of different types of ventures: private; public; social enterprises - as well as different sized ventures: micro; small; medium.

P3: Present, interpret and assess relevant data and statistic to illustrate the impact micro and small business have on the economy. You should consider local, regional, national and international economic impacts.

P4: Building on the information you provided for P3, you must explain the importance that small businesses and business start-ups on the growth of the social economy.

Part 2

P5: Determine what makes a successful entrepreneur. You could consider examples of successful entrepreneurs and determine the characteristic traits and skills they possess. Similarly, you could explore whether entrepreneurs are born or made and whether entrepreneurship skills can be learned over time.

P6: Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and mindset. You may wish to consider how personality is shaped by family upbringing, lifestyle, cultural differences and personal motivation and drivers amongst other factors.

P7: Examine, using relevant examples, how a person’s background and past experiences can hinder or foster entrepreneurship. Factors to consider may include level and type of education, national culture, economic circumstances and character traits. The risks and rewards of starting a business should also be considered.

Entrepreneurs are the independent individual who is aspiring to invest in a venture in order to achieve the objectives.

The term entrepreneurship can be defined as the process of recognising the scope and then converting the opportunity into marketable products or services with the help of innovation so that the venture can creates value and wealth to the society.

The person operating the entire method of entrepreneurship is called the entrepreneur. He/she is responsible for the successful running of the organization. They have to use their skills and knowledge to bring the best outcome from the industry and get the industry work in an efficient manner. They are the hard working, confident optimists who strive for integrity. They tend to tool the failure to learn more and use the lessons to make their production and working style better. Entrepreneurial venture depends upon the type of business unit that the individual has created. A business venture can be a private, social, public sector and based on the venture the typology of entrepreneur can be identified. However, the term intrepreneurship means a strategy that is innovative and creative in nature and encourages the employee in an organization to create a new idea. The employees have to approve the idea and the management finances the research. It allows and encourages the activities in the organization (Kirzner 2015). Thus interpreneurship is responsibility to encourage the performance and motivate the workers in an organization to get creative and innovative ideas to transact the business and make a position in the market.

The study will deal with the small scale entrepreneurship. The scope and responsibility of the entrepreneurship is to produce goods or services that can serve the human needs, selling trade and exchange of goods. The entrepreneur is responsible to identify the scope and opportunity and converting them to marketable product with innovative and creative means (Dodgson 2018). They target to sell these products in the market and make profit.

There are different types of entrepreneurship such as:

• Corporate entrepreneurship
• Academic entrepreneurship
• Private entrepreneurship
• Social entrepreneurship
• Public sector entrepreneurship

Corporate entrepreneurship: defines to the entrepreneurship that is carried out in large corporation. It includes the behaviour of the entrepreneur in the corporate sector thsu managing the workers in a huge extend and handling the entire process of a big organization. The large companies need such type of entrepreneurship where the activities are continuously expanded and diversified to sustain its existence (Goli? 2014). They need to produce new strategies and skills in the organization to improve the condition and make the entire system sustainable for expansion and growth.

Private entrepreneurship: it refers to a situation where the entrepreneur targets to find opportunity to build a platform to identity of the business. The scope that the business might proceed with has to be identifies by the entrepreneur. The role or task of the entrepreneur in this case is to find ways for the growth of the business, plan to harvest the strategy, setting up an entity for the business, contributes to the nation by providing job to the countrymen and helping the poor section of the society.

Social entrepreneurship: it defines the entrepreneurship carried out by the social enterprises or the NGO’s. Such organizations tends to identify the issues faced by the society or the social issues faced by the individual. It includes identification of the problems and establishing approached that will help the organization to meet the social challenges and make a better way of social ROI. They tend to help the weaker section of the society who might get some extra benefit to live or conduct a better life style if these organizations help them by their strategies and innovative ideas (Drucker 2014). They try to help the society will cheap products so that everyone gets the opportunity to lead a better life, they try to resolve social conflicts that hamper the life style of the people in the society.

Public entrepreneurship: the entrepreneurship that are linked with the public sectors are targeted to carry out the tasks that are government related companies has to do. Mostly the organizations are formed as a part of the nation’s privatization which aims to provide efficient and effective service to the public or the people in the country. These companies target to provide better service and efficient service to the customer, unlike the private sectors that only intend to meet their goal and earn profit. Such enterprises are customer oriented and not profit oriented (Drucker 2014). They generally engage themselves to the joint venture, equity participation, and management buyouts.

Academic entrepreneurship: this includes the research and development of new products, processes and system with the objective that the creativity will lead to intellectual property rights and commercialization through outright sale, technology licensing, and creation of better ventures.

The term intrapreneur was acknowledged in the year 1992 by the American Dictionary which means a person with a large corporation who takes direct responsibility to turn tan idea to a profitable finished product along with risk and innovation. It is always necessary and common that whenever there is a scope for betterment or success there will be a scope for risk and threat to the organization or the individual.  

Scope of entrepreneurship:

Emergence of opportunity- they seek the opportunity in the organization to build a better platform for the organization. They look for the best chanced that the business might use to make betterment in their work process.

P2: Comparison between Social and Private Entrepreneurship:

Private entrepreneurship:

The role of a private entrepreneur focuses on making profit from the business activities. They ideate and start up a venture with the objective of making profit

They are business oriented and try to make profit from each and every activity conducted by them. Their main goal is to satisfy the customer so that they can process with the business activity. Their primary motive is to earn revenue. They need to earn revenue to maintain their business conduction and serve the customers. Initially they look for gap in the market where they can implement their own strategy and product to the customers and make their own position in the market. They intend to find the requirement of the customers so that they can provide the service to them and earn profit from it. They are highly professional and only targets to meet their goal to earn profit (Dees 2017). The size of such business can be of any range small, medium or large where the entrepreneurs intend to expand their business and find a better outcome. The structure of this business is completely professional and profit oriented. They do not tend to spend any extra time or energy for any social work.

Social entrepreneurship:

The role of a social entrepreneur is to imitate a venture for creating value for the society. The target is to serve the society or the people in the society. Their motive is to look for the well -being of the people in the society.

The social entrepreneurs try to meet the requirement of the people in the society with a very less profit margin or sometime no profit is gained from their activity. Their primary motive is to serve the nation. Unlike the business entrepreneurs they do not target for the profit making strategy. The only motivation they have while transacting business is to provide support to the society (Schaper et al. 2014). They try to make the planet a better place to live and that too with a very less profit level. Their job might not produce profit or income to them however they are satisfied with the thought that they are serving the society. They invest a considerable time, effort and energy to serve the society without anything in return (Burns 2016). The size of such organization are generally large as they are sponsored by a number of people and an individual is not able to conduct the entire work on his own. Thus such organization needs the cooperation and coordination a few number of people to work together.

The structure of this organization is generally flexible and they only tend to find better scope for serving the society and nothing else.

It can be concluded from the above discussion that the similarities in between the two concepts are that fact that an entrepreneur be it private or social is liable for the venture. The entrepreneur is responsible for the success or failure of the venture.

Depending on the size of the venture the entrepreneurs’ role and responsibilities vary, for example in case of a small scale entrepreneur the responsibility of the human resource will be less as the number of people associated with the business is low on the other hand for a large scale business entrepreneur the responsibility and the arrangement of the structure of organisation in terms of human resource will be different.

P3: SMEs in UK

The small scale industry is considered to be small scale industry if their sale is as much as $35.5and has an employee count of 1500. However this is considered only in US. The other parts of the world considers businesses to be small scale if the sale of the organization is less than $7million and has less than 500 employees (Robson 2017). These types f industries are basically dependant on their owner or owners who try to find a platform for their business in the market. However, sometimes these industries are supported by the federation like the federation of small scale industry (Burns 2016). There is a significant rise in the investment of private sector business in UK according to the Centre for Entrepreneurs, approximately 660,000 organisations were established, which is a rise from the count of 2015 that is approximately 608,000 (Bounds 2017). The private sector in UK account for 99.9% SMEs, most of which do not have any employees, apart from the owner. This makes for 76% of businesses did not employ anyone aside from the owner. Business in an economy plays the most important part in developing the economy of a country. The Government of UK encourages trade and business in the economy which is proven by the lucrative trade policies.

P4: Importance of SME in economy

The small to medium entrepreneurs are present all over the world and their contribution to the economy is heavily affective (Örnek and Danyal 2015). The developing countries with major income discrepancies among the rich and the poor are benefitted from this industry. The unemployed section are getting employed due to the introduction of this economic system. The introduction of the SME in the market has reduced the difference between the employed and the unemployed. At the same time the introduction of SME plays the role of the nursery for the larger forms in future. They are next generation of the successful firms in future and thus must be encouraged to grow with full potentiality.

The introduction of the small and medium scale industry has helped the society in various ways like:

• Producing local brand
• Creating new brands
• Employing the unemployed section
• Reducing the export or import cost
• Reduction in price of the product
• Reduction in the making charge
• Zero tax for international exchange

Thus the organization are trying to create a better opportunity in the best possible way to the society.

One of the successful small scale business is the Freshbooks that was started with the motivation to provide cloud based solution for the firms. The company was founded in the year 2002. They initially started to provide solution to the firms who required their solutions and presently they have greatly surprised the entire nation with their success and progress (Pires et al. 2013).  They had firstly offered free service to the customers for the first one year, however, they tested their design in the market and learned a lot. The reason behind their success was their study and research about their development in the society. They had felt the necessity to improve their working structure and do something that would attract the customer. They did so and finally they made a place for themselves in the market.

P5: Successful entrepreneur

One of the examples of a successful entrepreneur of a business venture is Jeff Bezos the owner and CEO of Amazon. The venture started as a humble start up from the garage of his house, the scale of business was small. He established the business in 1994, however in 2017, Bezos was declared as the richest man, owning to the hike in the share prices of the company. Some of the most important characteristic traits that have enabled him to achieve success are:

Passion: In several interviews Bezos has explained his passion for reading books and the trends in information technology that has driven him with the idea of merging the two passions into one business venture.

Visionary: Bezos is a far-sighted man and over the years with the help of his visionary approach in innovation and change has been successfully able to come up with products and services which have changed the trends in the industry.

Innovation: he has encouraged innovation in the process as well as in business products and has also encouraged changes in the operation. He has flexibility in this method which has allowed him to remain relevant in the business operation.

The traits of an entrepreneur can be born with like behavioural traits such as patience, resilience, strong will etc. However, there are several skills in the process which can be further developed with experience and knowledge. There are examples of famous entrepreneurs who follow and bring up the family business like Mukesh Ambani, where as Jeff Bezos is a person who has build the organisation with his own resilience.

P6: Personality trait of a successful entrepreneur

The entrepreneur is the backbone of every business. Their behaviour, personality, thinking style determines the scope for development and success of an organization. The behaviour of the entrepreneur determines the way the entire organization will run. It has to be a blended mixture of adjusting, compromising, strict, strong and determined behaviour (Bullough, Renko and Myatt 2014). Yet there are few traditional trait that the entrepreneur must maintain such as:

• Passion: the entrepreneurs who do not intend to earn money but give a quality work to the customer plays a vital role in every organization. They try to bring their best out of everything they do for the business. The organization that could have been an average one becomes highly innovative and creative for the customers. The difference in their style and working method makes the organization different from any other organization. They  try to highlight the best of the business, thus automatically the customers get attracted to such organization and hence they become successful ones.
• Resilience: there can be many situations to face as an entrepreneur. The failure and the success has to be faced with full enthusiasm in an organization. The entrepreneur should have the capacity to fall down in a failure and again get up for a betterment in the work growth. They should never accept the fact they have failed instead they should find better ways to achieve success in the next move.
• Strong sense of self: the entrepreneur will be facing huge number of problems that might disappoint him at times. However, he/she should have the potential to overcome them and have faith on himself and on the business. The sense of self confidence is very much required in every field. The trait if being self -confident and self- motivated is highly required in every entrepreneur. This is helpful not only to motivate himself but also to motivate the other workers and stakeholders related to the organization.
• Flexibility- the entrepreneur should have the capacity to adapt the challenges and changes faced by the organization. The entrepreneur should be flexible enough to accept and make changes that are required by the organization and will help the organization in various ways. The entrepreneurs should make sure that they are able to discover the requirement of the business and how the business is progressing.
• Vision: the entrepreneurs are solely responsible for the benefit of the organization. They must have the vision to understand the requirement for the business and understand that how the business can be proceeded. The entrepreneur should have the proper vision to understand the scope where the business can be proceeded to and how to manage the situation in the business that will benefit the organization.

According to Aggarwal et al. (2009), found that 75 percent of the entrepreneurs ranked among the top 30 percent of the high school class, with a majority (52.4 percent) ranking their performance among the top 10 percent. This proves that educational is important for a person’s development as an entrepreneur.

P7: Influences of upbringing, lifestyle and cultural background on an entrepreneur

The personality trait of an individual is heavily directed by the social circumstances they have been brought up in. The culture that a person is brought up in influences the behavioural traits of the person, and that reflects as an entrepreneur as well. The education plays an important role be it academic or experience as it gives a person idea regarding the venture as well as develops traits to become an entrepreneur.

The traits of an entrepreneur is developed and nurtured in the way they are brought up, for example if a person is brought up in an Indian culture will have different approach with dealing with conflicts from a person who is Greek.  

Preconceived notion of certain aspects that has been instilled in a human being form birth will impact the way he or she runs a business as well.  For example if a person is brought up in a closed environment, he or she will have a closed approach towards the business, this might be a hindrance in the success of the business.

Conclusion: 

Thus it can be concluded that an entrepreneur are the reason for a business to stand tall and strong in the competitive market. They have all the strategy and condition that build the base or the foundation of the business (Toma et al. 2014). They entrepreneur is responsible to identify the best worker in the organization who would serve the organization for a betterment and thus give the enterprise a higher scope to succeed. They hunt the talent in the society that will best fit the position required in the organization.

They have to maintain a clear communication with the organization hierarchical positions and maintain the working system in progress. The entrepreneur is responsible for every decision making in an organization. They are responsible for decision making and planning for the organization. They are involved in every aspect of working of the organization and actions that directly influences the organization. Thus the entrepreneurs are an important factor for every organization.

References:

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