Entrepreneurship and small business management

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P1: Different Type of Entrepreneurial Ventures and their relation with typology of entrepreneurship

Small Business Entrepreneurship: Small business entrepreneurship refers to small businesses that are developed and run by individuals. These businesses are grocery stores, hairdressers, travel agents, carpenters, electricians, etc. These people run their own businesses. Local or family people are hired by them to help them (Guerra, Clarysse and Wadhwa, 2019). Profit earned from these businesses is very minimum and individual is able to fulfil only basic needs in most of the cases.

Scalable Start-up Entrepreneurship: Entrepreneurs who know that their vision could change the world start this type of businesses. Investment and funding of these type of businesses are sourced from venture capitalist who are able to see the benefits and profits that company will have. Employees who are hired in this type of companies are bright and best among the available. These businesses are generally successful and entrepreneurs' focus remains on increasing scale of the business, which requires more venture capital. The entrepreneurs that start and run these type of businesses can be considered as research entrepreneurs. They first research possibilities, what they can offer and in what manner their research can change the world. These entrepreneurs do not believe in copying idea of someone else. Facebook is an example of this entrepreneurship venture.

Large Company Entrepreneurship: Companies that have a definite life cycle and sustain in business through constant innovation and offering new products are this kind of entrepreneurship ventures. These companies require huge capital investment and focus on providing what customer are willing to buy. Such companies are affected by various factors like change in customer taste, new technologies, legislation change and competitors. These companies and ventures produce their products in large quantity and offer their products to large number of people by setting their customer focus. Profit earned by these companies are huge and disbursement mostly depends on the legal structure of the company. These type of ventures are started and run by entrepreneurs that can be considered as determined entrepreneurs; they believe that their vision will work and they are able to achieve what they want to achieve. Many times these entrepreneurs leave legacy that businesses run beyond their lifetime; for this, their focus remains on scaling.

Social Entrepreneurship: Innovators who start their venture so that they can solve problems of society and make the world a better place. Their businesses can be non-profit, for-profit or hybrid, but their main concern is solving problems of individuals in society (Leitch and Volery, 2017). Entrepreneurs who wish to serve society and its people by providing what is required to them and what can add value to the life of individuals if they are having it. These thoughts and vision encourage individual to become social entrepreneurs.

P2: Similarities and Differences between Entrepreneurial Ventures

Similarities or common features of entrepreneurial ventures are as follows:

Except Small business entrepreneurs, all other businesses seek to provide something that is innovative and what people have not experienced yet.

Except Social business entrepreneurship: other businesses are focused on increasing their profit, which may be different in its size on the basis of nature and size of the venture (Mazzarol and Reboud, 2017). For example, multinational company entrepreneur is likely to earn more profit than a large company operating within the boundary of a nation.

Scalable Start-up and Large company entrepreneurship both intend to increase their scale; scalable start-up clearly do this, but large companies do this without shoeing this. This is because Large companies grow taking time and scalable start-ups do it in a rapid phase.

Large company entrepreneurship and Scalable Start-up entrepreneurship both have a similarity that both companies requires and hire the best available talent and base their success on the effectiveness of their employees and talent.

Difference in Entrepreneurial Ventures:

most basic difference in small businesses and large and scalable businesses is profit earned by these ventures.

Intentions of profit in scalable businesses and large companies are also different. Large companies and scalable businesses try to earn as much profit as possible but social entrepreneurs intend to provide value-adding products to society and their intentions for profit are either no profit or even if they are earning profit, that is also very reasonable.

Another important difference in these ventures is that people and employees required. Small businesses requires fewer employees and sometimes owner alone is enough On the other hand, many employees required at scalable start-ups and large companies and seek to have the best talent.

Growth of small businesses is also different from other businesses like scalable and large companies and even social enterprises.

Objectives behind entrepreneurship is another important difference in these entrepreneurial ventures. Small entrepreneurship starts with the objective that owner can fulfil their and their family's requirements (Morris et al., 2018). Scalable start-up entrepreneurship starts with the objective that it will be able to change the world. Large businesses starts with an objective to earn profit and social entrepreneurship starts with an objective to serve people of a society.

These were the difference that different types of entrepreneurial ventures have.

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P3 Impact of Micro and Small businesses on the Economy

Small and microbusinesses have a huge contribution to the economy, and the reason is that they are more in number, and a big proportion of the businesses in all the countries are covered by small businesses. Small and microbusinesses contribute around 55 percent of total GDP, 60 to 70 percent of employment, and 90 percent of the business population.

This illustration presents data about individuals who are engaged in various types of businesses, and among them, businesses that require 0 to 1 employees are highest in quantity. These are followed by businesses that require 2 to 4 employees, and the number of businesses keeps falling, respectively, as the number of employees required increases. Businesses that require 200 to 249 employees are the least, and businesses that require 500 or more employees are the third. These businesses are companies and similar big business organisations. Data presented through this illustration in the form of information belongs to businesses in the UK.

This illustration shows the businesses and their size on the basis of businesses. This illustration presents that the number of businesses is highest that employ less than 100 employees. percentage of these businesses is 69.7 percent, around 70 percent. 

This businesses also make an impact on the economy as they are available and present at every place and part of the world. These businesses do run with the help of people that are physically around the place where business is situated. These businesses fulfil needs of local businesses. Many of these types of businesses provide assistance to big businesses and in this way they contribute to big businesses. impact of small businesses on the economy have also increased from the time E-commerce websites have entered the market (Kersten et al.,  2017). These websites have increased their accessibility, and they are able to supply their products out of a fixed place and premises. 

P4: Importance of Small Businesses and Business Start-ups to the growth of the Social Economy

Social economies refer to economies that are formed by enterprises and organisations that share common values and features. This type of economy examines social norm, ethics, emerging popular sentiments and other philosophies that affect consumer behaviour and buying power of customers. This can be explained as relationship between social and economic factors. Social factors are values and norms of society and people who are a part of the society and economic factor refer to buying nature of those people of the society (Visser, 2017). Combining both these factors, social economy refers to how values and norms of society affect their decisions about buying. importance of small business and Start-up businesses to growth of social economy is as follows:

Providing services that are required to and affordable to society

Small businesses that operate at a small level do have a correct idea about the requirements of the people in a society, and these business owners know what the status of the people is at a particular place where they are working and what kind of thing individuals can buy (Vezina, Malo, and Ben Selma, 2017). This businesses then provides things accordingly to their customers.

Special focus on Environment

Small businesses and start-ups do have a special focus for the environment, whereas big companies' affect the environment negatively. This is the reason that small businesses and start-ups are liked by people, as they do not harm environment.

Chances of unethical practices are reduced

Small-business and start-ups are operated and managed by fewer people, resulting in less influence on business practices. This results in reduced risk of unethical practices being employed at small businesses. This is an important factor and a significant contributor to social economy. reason behind this is that social economy focus on ethical practices and small and start-ups are also ethical in nature.

Employment to Local People

Social economies focus on the well-being of individuals rather than increasing profit (Taylor, 2018). Small businesses usually hire local people that show their concern for people and not for profit, Local people may not always be as competent as required but still they are hired by small businesses and start-ups.

Increasing Taxation for Local Government

Small-businesses and start-ups increase taxation for government, which the government can use for social causes of local people. This is also an important contribution for the growth of the social economy. 

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P5: Characteristic Traits and Skills of successful Entrepreneurs

Characteristic traits are something that are based on the character of an individual, and traits that an individual possesses differentiate entrepreneurs from other business managers. Skills are techniques for completing something efficiently (Karabulut, 2016). traits and Skills of successful entrepreneurs are as follows:

Passion: Passion is a very important trait that successful entrepreneurs have in their character. Passion is a factor that refuses to accept defeat and encourages individuals to try and keep putting their efforts unless they achieve what they are willing to achieve. Successful entrepreneurs do surely have this trait that differentiates them from other business managers. Passion also requires patience, which is very difficult for everyone and only successful people do have that quality.

Strong Work Ethic: Successful entrepreneurs always work ethically and avoid taking short-cuts for their work. They usually do what is right and not what is easy This is an important trait that successful entrepreneurs do have. Doing things what is right and avoiding short-cuts ensures sustainability of result and success.

Creativity—creativity is an important element of success and successful entrepreneurs are always creative and look for ways to accomplish their work more effectively. Entrepreneurs are also  sought to find creative solutions to their work. They know how they can present something that already exists with an element of creativity, making it different.

Skills that successful entrepreneurs do possess are:

Strong People Skills: People skills are very important for success and entrepreneurs also have strong people skills. They are very good at convincing people and making people do what they want them to do. This is also helpful while selling their offering and motivating employees. Understanding what is required to someone is also an important element of success and also builds positive image of entrepreneur. Successful people do have these skills and business managers may not have this skill.

Communication Skills: This is an important skill possessed by successful entrepreneurs. Strong communication skills help entrepreneurs communicate their vision and mission effectively. Strong communication skills includes effectiveness in all forms of communication, whether oral or written (Lynch et al., 2017). Communication skills are very helpful in building a positive and impressive image in society and among employees and stakeholders.

This report includes Mark Zuckerberg as a successful entrepreneur, and it has been seen and found that he possesses all these skills and traits, which have contributed to his success as an entrepreneur.

P6 Aspects of Entrepreneurial Personality Reflect entrepreneurial Motivation and Mindset

Aspects of entrepreneurial personality that reflect entrepreneurial motivation and mindset are as follows:

Open-minded: The personalities of successful entrepreneurs show that they are open-minded and considers everyone's opinion and way of thinking. This allows them to see from a broad point of view. This also enrich them with many ideas and suggestions that they can use for their purpose. Open-minded people are generally liked by everyone and when people are open-minded, they reflect that their mindset is entrepreneurial.

Ownership: entrepreneurs are required to have high locus of control and are required to have trust in themselves and their ability (Olivari, 2016). This contributes in their success and strengthens their determination for achieving their goals and objectives. Entrepreneurs are also seen to have a need to control their fate. They also take ownership of every work they perform, whether it is successful or failure.

Connection/Networking: This aspect of the personality of entrepreneurs is out of their own and their relation with others. Successful entrepreneurs are required to have connections that can contribute to growing their idea and help to add value in their idea and their undertakings. Networking helps for collaborative bonds and when these relations have an element of emotion, these helps to generate more efforts that financial rewards can not.

Self-Respect: One of the most important aspect of an individual's personality is that they have respect for themselves and their ideas and respect their abilities (Van Ness and Seifert, 2016). Self-respect is very important for everyone, especially for those who want to succeed in life. This generates and builds motivation for entrepreneurs to make efforts for achievement of their vision.

Customer Orientation: Entrepreneurs do have an orientation for customers, and that is what makes them put their efforts into fulfil customer needs and customer requirements. Entrepreneurs attempt to fill the gap between available products and customers' needs. This is important for every successful entrepreneur, and this quality of entrepreneurs is visible through their personality and reflects that they have an entrepreneurial mindset.

Have Mentors and Role models. Successful entrepreneurs do have mentors that guide and direct them. Like all other successful people, successful entrepreneurs also have role models. Role models are supposed to motivate individuals. They are seen to follow footprints of their role model and do what is being told them by their mentor (Korber and McNaughton, 2018). Respect that entrepreneurs give to their mentors and role models reflects their mindset and motivation for entrepreneurship.

Mark Zuckerberg do have all these characteristics and personality He is running his business in modern style and these all aspects are implied in his personality and are visible in various forms at different time.

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P7 Role of Background and Experience in fostering and Hiding Entrepreneurship

Many times it is seen that the background and experience of individuals help in fostering entrepreneurship. With concern to background factors that affect entrepreneurship are family, educational background and experience in relative field of entrepreneurship or the idea that individual has about their entrepreneurial venture (Muralidharan and Pathak, 2018). For instance, if an individual wants to open a restaurant, his knowledge and experience working as a chef will be very helpful to foster his entrepreneurship. This factor, when are applied for Mark Zuckerberg's entrepreneurship, shows that:

As per Mark Zuckerberg, entrepreneurship is about creating change and not about creating companies. This kind of thinking that gives rise to entrepreneurship comes from the education and background of an individual. Mark Zuckerberg's this thinking helped foster his entrepreneurship.

Other factors that fostered Mark Zuckerberg's entrepreneurship are his education. Facebook is all about utilization of technology, taking advantage of advanced technology, and also about advancing technology. Mark Zuckerberg, from a very young age, started using technology and writing software. Which later helped him to design and develop Facebook. This is not only software but a multinational organization.

Family Background and Community Influences: An important factor that contributes to fostering entrepreneurship is family background and community influences. Many times entrepreneurs who are less confident with their idea get influenced by their community and family background. These factors not just foster entrepreneurship but also hinder entrepreneurship. Many times entrepreneurs chose not to work on their idea of entrepreneurship due to community influence and family background.

Experience is also an important factor that fosters and hinders entrepreneurship. Entrepreneurs who face failure in their early attempts lose their confidence and stop themselves from trying again and taking actions again (Aslam et al., 2017). These failures also foster entrepreneurship when entrepreneurs learn from their failure and are passionate to achieve their objectives and turn their vision into reality.

Though there are millions of entrepreneurs, those who are really successful are less in quantity, and these were few factors that foster their entrepreneurship, and those who failed and could not succeed were also affected by these factors only. 

FINAL SUMMARY

Based on the discussion included in this report, which focused on the topic of entrepreneurship and its various facets, it can be concluded that entrepreneurship is the endeavor of individuals driven by a vision and a strong desire to realize that vision. Entrepreneurs create and manage companies that are fueled by their own unique and inventive ideas. The present report encompasses an analysis of the commonalities and distinctiveness among the diverse categories of ventures that are classified as entrepreneurial in nature. A small business venture differs from others the most. Despite its reputation as a small business that requires little capital and labor, this enterprise plays a significant role in the economy and is important for fostering a social economy. Traits and skills that entrepreneurs have and aspects of their personalities have also been discussed in this report that differentiate entrepreneurs from other business managers. If students require more assistance in comprehending these entrepreneurial ideas, a homework helper can offer extra guidance.

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