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- Discuss different entrepreneurial ventures.
- Differentiate between different entrepreneurial ventures.
Entrepreneurship is considered as designing, launching and running a new business, which is often initially a small business. businesses created by the people are called entrepreneurs. Small business managementis a process entrepreneurs use when running theirbusinessoperations. Entrepreneurs may need to understand how to manage employees, accurately report financial information, acquire economic resources orbusinessassets, and make variousbusinessdecisions. This report covers issues such as entrepreneurial ventures and their typology, similarities and differences between entrepreneurial ventures, impact of micro and small business on the economy, importance of small business and start ups to the growth of the social economy, traits and skills of entrepreneurs that helps them to differentiate from managers of the company, background and experience of entrepreneurs and how entrepreneurs stay motivated and how their mind set is different.
Entrepreneurial ventures and typology of entrepreneurship.
Entrepreneurial ventures is focused on providing services related to advises and suggestions to start ups and companies who are operating as mid stage. Role of ventures are different and it changes according to the stage of the company.
Small Business Entrepreneurship
Majority of the companies dealing in the market are operating on a small scale. According to facts and figures around 80 per cent of the companies are working and maintain their operations on the level of small enterprise but even then they are the ones who are providing employment approximately to 50 per cent of the individuals who are dealing in the sector of private sector. Employees hired in these companies are on the scale of around 1 to 5 people. These companies are not able to gain the attention of venture capital as they maintain their operations on a small scale. For starting or commencing their operations they take helps from their family, friends or ask for personal loans from banks. Usually people who are consultants, carpenters, hairstylists, plumbers etc. starts businesses on these scale. These businesses are started up on a low scale of investment (Campos and et.al., 2017)
Scalable start up Entrepreneurship
When an entrepreneur is fully aware of the forces of market and has gained confidence through their skills which make them believe that their vision can help bring change in the market. These type of entrepreneurship is known as scalable start up. These type of businesses approach venture capitalists in order to raise capital for maintaining the operations. It also helps them to employ efficient and skilled employees to work with. Entrepreneurs first find out the nature of the business then they take the use of the capital which they raised it through venture capitalists. There is high involvement of risk in the company and the return on investment is also not predictable. This is the reason why there are not much companies who are operating in this sector. For instance companies such as Snapchat, whats app, Facebook etc. which are maintained their operations successfully online are included into this sector. Entrepreneurial ventures such as these is linked with the typology which is same that is scalable typology. Motive of these ventures is to get repeated sales. These companies focuses on stealing the share in the market of different companies by bringing innovation. Get Assignment Examples.Talk to our Experts!
Large Scale Entrepreneurship
Companies operating on a large scale such as Samsung, Microsoft, Apple comes into this scale of operations. These companies launch new products with new innovation. Companies such as these focus on achieving growth in aggressive way by using every available resources with them which can lead them to achieve the goal. They deal with more no of operations and handle more clients. Also in order to maintain their operations they require more employees. (Dunne, et.al., 2016). these type of entrepreneurship is characterized on the basis of their dealings and clients. The scale in which they operate involves a huge risk. The volume in which the business communicates helps to determine the nature of the entrepreneurship. For instance- Uber, google, Amazon etc. are the ideas of large scale entrepreneurship
Social Entrepreneurship
These type of entrepreneurs takes initiatives for helping and providing benefits to the welfare of the people. They work and focus on making those products which can help people who are underprivileged. Their motive is to work for the benefit of society not to maximize their profits. Typology of social entrepreneurs is linked with these entrepreneurs as they are stable in making decisions, creative and have the qualities to achieve the goal. This type of step is taken by companies who are operating as start ups so that they can develop and contribute more to the social factors for the betterment of environment.(Gelaidan and Abdullateef, 2017) These type of entrepreneurs use the profits generated by the activities for the welfare of the society. For instance- students who are in college can form a group to create an organization related to this aspect and encourage people with the aim of reducing the waste and protect the environment which will make a contribution for the benefit of environment.
Similarities and differences between entrepreneurial ventures
|
Similarities |
Small |
Large enterprise |
Social enterprise |
|
Innovation or unique idea High Risk Ownership structure |
Usually small companies has less unique attributes but they are bringing more innovative ideas as compared to the companies who operate on a large scale. If the company is not able to generate enough profits and bring an idea which can help them to sustain in the market as if they don't then they it is a risk for them as any competitor can take over their operations. The ownership structure varies according to the form of the structure as sole properties requires only one person. Partnership requires two or more people etc. |
Companies who operate on a large scale also needs to bring innovation on a continuous basis so that they can survive in the market and achieve growth.
Companies operating on a large scale involves a high risk as any mistake or error in their work which decreases the level of satisfaction to the consumers. This involves a huge risk as company may loose their share of profits or their position in the market. Companies who operates on a large scale has different types of structure according to the nature of the business such as divisional, functional, geographic and the matrix. Many of the companies uses a structure which is hybrid as it allows them to apply a combination of different models into one strategy. |
Companies who operate in the social sector also bring innovative and unique ideas to conduct more charitable events and get more donation. Companies who operate as a social enterprise also has to deal with a lot of risk. If they are not able to get the donations or host a charitable event which attracts people to contribute a part of their income. If they are not able to get the donations then they won't be abel to work successfully for the welfare of the people.
The structure of social companies is totally based on the participation or voluntary entry by the groups of stakeholders such as community, clients, users etc. or by the trustees of the company. Profits of the company are distributed and shared to their stakeholders with the aim of using it for the welfare of the community.
|
|
Differences |
Small enterprise |
Large enterprise |
Social enterprise |
|
No of employees |
Companies which maintains their operations on a small scale employs people from 10 to 250 people. It depends on the nature of the business. Main motive of these companies is to earn profits and sustain the market so that they can serve for a long period of time.
These type of companies operate on small or medium scale. For instance they cover their operations in London. Companies operating on a small scale generates small amount of profits. |
Companies which are operating on a large scale sector employs more than 250 people as it is required to maintain the operations. Objectives of these types of companies is to earn high profits, increase their share in market, achieve growth and enter into untapped markets.
These type of companies operates on a large scale.(Hechavarria, D., and et.al., 2019) for instance they maintain their operations in the country and the overseas market such as UK or in other countries.
Companies operating on a large scale generates huge amount of profits as it is required so that they can achieve growth and maintain their operations. |
Companies dealing as social enterprise has no fixed employees as they work with a team who has voluntarily choose to contribute for the welfare of the people.
Main motive of these type of companies is to earn for the welfare of the people. These type of companies mostly operate on a small scale. For instance these type of companies maintains their operations for a specific area or town such as Hertfordshire. Profits earned by these type of companies are not too less and not too large. |
Differences in different organization
|
Criteria |
Small |
Large |
Social |
|
No of employees |
Small companies hire people less than 100 workers |
These firms hire more than 1000 employees |
Social firms have no limitation for employees because people are engaged on volunteer bases. |
|
Profit |
These firms generate less than 56 GBP profit (median profit) |
Hilton hotel is big firm that has generated 8.91 billion profit in the year 2019 |
Red cross is working as social firm and in the year 2018 it has generated 243.3 million profit. |
|
Objective |
Their main agenda is to sustain in market for longer duration. |
They work for expansion and becoming market leaders |
These firms have aim to work for social welfare and improve life of people. |
|
Size |
Small firms are limited to local area only hence operates in limited locations only. |
Hilton hotel is operating in 5757 locations and its operating income in 2019 was 1.43 billion. It has around 169000 employees. |
Red cross has 32500 volunteers those who are working globally. It has employed 3500 staff members. |
Similarities
|
|
Small |
Large |
Social |
|
Innovation and having unique ideas |
Small companies find new ideas to generate more sales. |
Large companies implement innovative ideas so that profit can be raised and customers are attracted. |
These firms also find out new ideas and implement innovative ideas so that better services can be provided to large audience. |
|
High risk |
Small companies are on high financial risk because if people do not take interest in its products then firm may face huge loss. |
These firm also face risk of competition hence they are also in high risk situation. |
Social firms may fail to serve the needed person on time hence these are on high risk, sometimes they do not get fund to manage operations. |
|
Ownership structure |
Small companies' owner are responsible for all decisions and liabilities. |
In large firm ownership structure is handled by board of directors but there also if company face loss then owner has to face problems. |
Social firms also have ownership structure where NGO provide funds but decisions are taken by particular authority only. |
Impact of micro and small businesses on the economy.
Micro Business and Small business
Impact on Economy
Small business are those business who employs and work with more than 12 people and the minimum capital required to start them is more than € 30,000 to 40,000 then it will be considered as small business. Micro business are those which can be commenced in less than € 30,000 as the required capital then it is a micro business. Also if the owner of the company is working as a sole trader with no employees or with less than 6 employees then also it will be considered as micro business. Currently the economy of the country is below the level due to Brexit which is the reason that the government is forcing an immense pressure on the company so that they can help the economy to achieve growth, Different scale of business contributes differently as it depends on the sector they are dealing in, the growth in the economy etc (Burkman, Garrett and Posner, 2019). Many of the companies are deciding to expand their operations which will help them to create more opportunities and contribute to the economy. Inflation in the economy will reduce the disposable income in the households which limits the spending power of people. Mostly these leave a impact on the companies which operates on a low level of scale. (Karabulut, 2016) Businesses who deal in the line of export and import has to keep factors in mind such as economy and currency exchange rate of the country. There is a major role played by small and micro organizations in the economy of UK. In Uk there are total 1155385 micro sized organizations are in UK. These organizations are providing employment to 4206000 people in UK. The complete turnover of these business is around 595013 Millions Euros. There are total 211295 small enterprises are their which are providing employment to 4117000 people in UK. Total turnover of These organizations is around 629163 Million Euros (UK SME Data, Stats & Charts, 2020). This is major part in the Economy of Unites Kingdom. This is how the role of Small and micro organization is huge in economy of UK. Order assignment help from our experts!
Contribution in terms of taxes
Contribution made by both micro and small business is around € 1.5 trillion and it was approximately 50 per cent of total contribution of the private sector.The basic rate for a business which operates on this scale is 20 per cent and it differs according to the variation in the profit that the company earns.
Contribution in reducing unemployment
They have increased the rate of employment as compared to the companies who are operating on a large scale. the rate of employment has been growing because of micro and small business as they are employing over 50 per cent of people working in the private sector as compared to the companies who are operating on a large scale. Over 16 million people has been employed by both categories of companies which is 58 per cent of the employment opportunities provided by the private sector. This is one of the reasons that they have been successful in creating so many job opportunities for the people of the country. It helps to know that micro and small business has helped them to achieve growth.
Bringing innovation
Mostly they are contributing in the economy by bringing innovation in the market. On top of that the government of the country is also funding a hefty amount in the department of research and development which is more than € 700 million . This will help these companies to bring more innovation into the market which will help the economy to grow (Laukkanen and Tornikoski, 2018)
Importance of businesses who operates on small scale and business start-ups to the growth of the social economy
Mutuals, foundations, charities and associations are considered at a national level but it does not help the companies who deals in social economy to compete in an effective manner against the provision of goods and services.
Importance of Start Ups on growth of social economy
These companies require people to take their services and make them reach it to potential customers which helps in reducing the level of unemployment in the country. This is considered as beneficial for the people as well as the economy as it will help to bring growth in the economy (Mallett and Wapshott, 2020). Many of the entrepreneurs raise capital either with their money or raise capital with the help of investors. It is when the business will grow it will help the economy to grow as the money shared is with society which is beneficial for the economy (Masurel and Masurel, 2019). Start ups helps to increase the level of innovation with that it brings new technologies into the market which will automatically improve the standard of living. Apart from this many of the business who has recently commenced their operations is focusing on working for the welfare of people in rural areas. GDP is the aspect which is necessary when it comes to enhancing the growth of the economy. If more start ups are supported then UK will be increase the amount of cash flow in the country and become the fastest growing country (Niemann, Kotzé and Mannya, 2018).
Importance of Small Business on growth of social economy-
Companies who employs approximately 500 people are turned out as small business. It is these type of companies who are helping to reduce the level of employment. According to sources these companies employs 60 per cent of population of UK. If they are not able to maintain their operations then many people will loose their jobs which will strike the economy in a negative manner (Proksch, Stranz and Pinkwart, 2018). Businesses operating on small scale are in touch with the customers which helps them to know what type of products they want and this help them to try out new ways and methods to effectively deliver products which keeps the customer satisfied. It is because of the small businesses local economies is able to function. They helps the community to benefit from that as they create more opportunities of job which helps them to increase their level of income ( Ruiz-Arroyo and et.al., 2017). They deals with customers on a day to day basis which helps them to adapt according to the needs and wants of people. This helps them to attain the level of consumer loyalty which will help them in recession over companies who are operating on large scale. Companies who are operating on a large scale won't get customers as people will remain loyal to small businesses in the market.
Characteristic traits and skills of successful entrepreneurs that makes them different from other business managers
Motivated
This is considered as one of the most important trait and characteristics of entrepreneurs. In order to achieve big they push themselves really hard. They have to take their own decisions and they do not have to respond to anyone else. It is necessary for them to stay motivated and dedicated towards their goals so that they can grow forward (Sebikari, 2019).
Risk Taking
In order to be successful it is necessary to take risks. If they keep on earning in their comfort zone and remain safe then they will not be able to achieve big. Entrepreneur calculates the level of risk involved so that they can assess the viability of idea so that they can predict that if or not it is a option that will be a positive outcome.
Flexibility
Entrepreneurs need to adapt change according to the current trends in the market. This will help the entrepreneur to find and come up with an effective solution to their problems.
Management skills and knowledge
Entrepreneurs have adequate skills of managing the money which helps them to reduce the level of dependency on other people to maintain their cash flow. It gives them an insight about the current condition of the company (Setti, 2017).
Passion
They are passionate towards their work which keeps them motivated. This helps them to think with new and different approach of work which helps them to be successful.
Business managers are those people who addresses and looks after the affairs of the business so that they can achieve their operations successfully.
Difference between entrepreneurs and business managers
|
Characteristics |
Entrepreneur |
Business Manager |
|
Motivation |
Entrepreneurs get motivated when they achieve their goals and objectives (Sozuer, Altuntas and Semercioz, 2017). for instance- when they achieve their goals they will gain more confidence for their next project. |
Business managers of the company gets motivated by gaining the power they have in the company according to their position. For instance- by getting a promotion they will gain the confidence on the decision they take for the company. |
|
Risk Taking |
Taking risk is in the nature of entrepreneurs. They evaluate the risk and help the company to move forward. For instance- any move or decision taken by the entrepreneur does not guarantee that it will be successful it also involves a risk from suffering of losses. |
Business manager do not take any risks they just maintain the condition of the company. For instance- managers only follow the decisions and plans made by the entrepreneurs which does not involve them into risk. |
|
Flexibility |
Entrepreneurs are flexible to change and approach as they remain informal. For instance- entrepreneurs changes their style of leadership according to the expectations of the situation. |
Business managers of the company remains formal in every approach and condition. For instance- they cannot be flexible as they have to follow the guidelines of the company. |
|
Management and knowledge |
Managers and knowledge of the entrepreneurs is up to an extent as they deal in many lines and with many people which increases their knowledge. For instance- they are the ones who communicates outside and grasp the details of the market before taking a decision. |
Management and knowledge of the managers is limited to the company. For instance- they communicate inside the company which limits their knowledge to the outside world. |
Aspects of the personality of entrepreneurs reflect entrepreneurial motivation and mind-set
Mind set and motivation of entrepreneur can be understood with the help of big 5 trait model.
Openness
This aspect helps in putting the focus on the abilities such as insight of the situation, prediction for an outcome. This helps them to bring change for others. For instance the idea of Harry Potter took place when the author J.K. Rowling missed her train. Entrepreneurs who have high amount of these abilities will be useful to become more creative and trying out new approaches at different situations. Other who do not possess these qualities may not be able to perceive the outcome or imagining things. The imagination and insight that J.K. Rowling has helped her to become a successful entrepreneur.
Conscientiousness
Some entrepreneurs have decent behavior and control over their decisions which helps them to move towards their goals and objectives. For instance- Richard Branson who owns the Virgin Group continuously thinks as he thought in order to find out a solution to an problem can be achieved through this. These type of people do not miss their deadline so that they maintain a sustainable reputation in the market. Thoughts, knowledge and work with the aim of achieving goals has helped him to be a successful entrepreneur ( Tiwari and Goel, 2017).
Extraversion
This term can also be addressed as extroversion. Qualities such as talkative, philanthropist and who expresses their feelings towards things in found in some entrepreneurs which makes them relate able to this aspect. For instance J.K Rowling donated half of her income which made her loose the title of being a billionaire and become a millionaire. Also at many interviews she had opened up about her past life. Also these type of people enjoy to stay with others, it makes them feel excited and energized which is the reason why they like to donate to those people who are in need and don't have much resources.
Agreeableness
This trait is about agreeing with someone else's point of view and work according to their vision. For instance- when Richard Branson was young he took advises of lot of experienced entrepreneurs which helped him to change his thought process. Also J.K. Rowling listened to many of her co workers to develop the idea for finishing his series Harry Potter. The nature that both the entrepreneurs has helped them to reach success as if they were of different nature and with a high amount of attitude then they won't listen to other people and won't be able to reach where they are.
Neuroticism
This trait highlights the mood and feelings of entrepreneur with the stability of handling their emotions. People who possess this trait goes through a lot of emotional problems such as instability of emotions and those who don't have it in high amount does not face these problems. For instance J.K. Rowling has low amount of this trait which is why she was able to control her issues which she had to face from her husband. On the top of that there were also financial problems but she handled them all and these things has somewhere helped her to achieve success.
Background and experience can hinder or foster entrepreneurship.
Richard Branson
Full name of the entrepreneur is Richard Charles Nicholas Branson who is a British based investor, author and philanthropist. He founded his company Virgin in the year 1970 which made him successful. With the help of that he has invested in various companies and currently he holds shares in more than 400 companies. He dropped out school at 16 and then started his first business which was a mail order record business. He named that as Virgin stores and after that he started chain of record business. After that in 1980 he commenced his airlines by Virgin Airlines, he diversified many business such as in 2004 many he started a space tourism center by Virgin Galactic. Throughout his path he met many people who are successful in their fields which helped him to know that every entrepreneur has different perception and way to perceive things and everyone use approaches in a different manner according to their set of abilities. He has many successful companies under his name and he has also been awarded at the Buckingham Palace with the honor of knight in 2016 for his work. The father of Branson was an attorney and the mother worked in many fields such as flight attendant. Other than that she learned to fly the glider which was a big achievement at that time. She trained with the Royal Air Force and serve at the time of second world war. This has also helped Richard Branson as he was raised in a environment which was active, brave and hearty which helped him to take big decisions on his own. There are different factors are their which had played important role in the success of Richard Branson. These factors are- Mr. Branson have selected the profession that he enjoy most. He is high visible to public and this thing make him famous among other businessman's. His effective leadership made him successful to deal with various challenges and opportunities of market place. His innovative and creative nature also make him a great entrepreneur. This is how all these factors have lead the success of Richard Branson in International market. Struggling with your dissertation, get our dissertation editing services at best prices.
J.K. Rowling
She is known for her novel series Harry Potter but she is a multi tasker in life as she is a author, television producer, philanthropist, screenplay writer. Most of the fame she has gathered is from her book Harry Potter. Her book sold more than 500 million copies which made it the best selling among all. Before all of this she had to face a very depressing phase as she got divorced and had no money to take care of her child until she came up with the idea of Harry Potter and its success made her billionaire. She donated a huge part of her income in charities and because of that she lost her title of being a billionaire. Even after that her net worth stands at 600 million Euros which makes her 197th richest person in UK. These hefty amount of donations has helped the company to become the president of Gingerbread charity. Apart from this for the labor party she has donated up to 1 million Euros. The childhood of the author was happy and she had a lot of friends which helped her to remain motivated throughout her life and she made it as her aim to be a successful author since when she was just 6 years old. There are different attributes in personality make J. K. Rowling as great entrepreneur. She is a dreamer and goal oriented. This thing have made her effective in achieving various targets in lifetime. Disciplined and resilient nature also helped her to become a good entrepreneur. The activeness towards new ideas also have supported to become successful entrepreneur.
Their background states that both Richard Branson and J.K. Rowling were from poor families which means that they no opportunities in hand which could have helped them to reach the current level of success they have achieved in life. This states that their talent and hard working nature has helped them achieve the current success.
Conclusion
From the above studies it has been concluded that every entrepreneur has different type of thought and through that they take their decisions which helps them to guide the path to success. The basic difference between entrepreneurs and managers are that entrepreneurs possess wide area of knowledge and has the ability to take risks whereas managers of the company have to deal with the orders and instructions given by the entrepreneurs. Micro and small business has left a positive impact on the economy of the UK as they are helping to improve the standard of living by bringing innovation. Apart from that they have helped to reduce the level of employment which has benefited the people to leave disposable income which increases the buying power of people. Entrepreneurs such as Richard Branson and J.K. Rowling's past life and experiences have been highlighted in this report which states that handwork, talent and efficient working can help an entrepreneur to reach success and inspire other people to become one. Also it is mentioned in the report that the personality has a huge influence on the level of motivation and the thought process and the way of perceiving things on entrepreneur.
Also Read- Introduction to Business Communication
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