Question :
As a senior member of FSB knowledge of entrepreneurship is developed with the help of various questions:
- Various business ventures along with their impact on the economy.
- Understanding the traits and skills of the entrepreneurs either hinders or fosters the performance.
Answer :
INTRODUCTION
Entrepreneurship is described as the process which is linked with the development of new business ideas in order to earn high growth and profitability from their ventures. This is the most important aspect in this modern world. An entrepreneur is a person who is having the responsibility in order to execute a similar operations marketplace. The importance of entrepreneurs is that they are developing new ideas for the business thus it results in earning high profitability (Blackburn, Hart and Wainwright, 2013). There are some entrepreneurs who are running the business and developing new ideas with the main motive of earning profits from their ventures. The assignment based on the implication of Austin Fraser and they are involved in recruitment people all around the UK. The undermentioned report is based on different entrepreneurial ventures, the impact of small business operations on the economy, skills, and traits of an entrepreneur, and in the end, those factors are analyzed which are useful in hinder or foster entrepreneurship.
TASK 1
P1 Examining different entrepreneurial ventures and their relation to the typology
The process of starting a business can be carried out in different ways by various firms but there aims is similar which is linked with achievement of financial stability at market places. The new business which is started by entrepreneurs are evaluate below as:
Small Business Entrepreneurship
The small business operations are similar to those of self employed business activities. The main aim of starting the enterprise is related with achieving financial stability. Example: Plumbers, consultants, grocery stores and carpenter as there operations are running at smaller thus less number of employees are involved in business operations. They are running business in order to fulfil needs of their family member.
The small business entity are linked with the topology of survival ventures. There main aims is linked with making an individual survive in this competitive era. These business which are running at smaller scales are not registered and they are trusting on faith among the parties. Monetary transactions are the most important of exchange while taking about these ventures.
Scaleable start-up entrepreneurship
The entity is having sufficient resources in order to expand their business operations at higher level. The enterprise who are involved in this operations thinks that vision can change the mind set of people and they will achieve success in their operations. The business is offered financial help for their operations by Venture capitalists as it helps them in executing their innovative ideas. These entity are highly risk taking but their operations are carried out at smaller scales. The entrepreneurial topology related with the business is aggressive growth. There ventures are helpful in order to carry out the innovative plans at market areas. The venture capitalist provide assistance and directions to execute their business activities at market place.
Large Company Entrepreneurship
The another name for this business is Corporate entrepreneurship. In order to maintain growth and stability at market places the firms are carrying out research and development activities in order to identify those plans and strategies by which they can sustain strong images foe long time period at market places thus achieving highest level of profitability from their business operations. This is the vital factor while making comparison with the rivalries who are dealing in similar business as it results in putting mega entity at highest position in market place (Bridge and O'Neill, 2012)
The topology which are linked with these types of ventures are known as growth business ventures. The mega entity aims at achieving growth and stability in business environment with the assistance of these ventures.
Social entrepreneurship
The main aim of these business is linked with offering those products and services to customers which are beneficial fore them in order to attain attain growth and development in society. The entrepreneurs are mainly focused on identifying those factors by which the problems faced by them can be easily resolute. Example: The new business of online consultancy of doctor have helped the older age population of economy in order to get medical services sitting at home.
These ventures are termed as lifestyle ventures as they are valuable in order to fulfil needs and wants of the people of the society thus achieving monetary benefits. If there is not sufficient funds then it results in decrease in business operations.
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P2 Exploring similarities and differences between entrepreneurial ventures
The ventures which are described below indicates the similarity and differences for performing different types of business operations.
TASK 2
P3 Analysing and Interpreting of relevant data and statistics in order to interpret impact of small business operations on economy
The small business entity plays an important role in overall growth and development of the economy. There was a report which was presented in the houses of the Parliament which interprets that there are around 5.5 million business operations carried out all across the globe in which 99% of the business are classified under the category of medium and small business organisation. The total value gained consist of overall 50% of the total growth rates of the economy.
While measuring in terms of employment it is analysed that the private sector business in the economy are providing employment opportunities to more then 65% of the overall workforce all over the globe. The statistics indexes indicates the value of small business operation for the growth and success of economy (Carsrud and Brännback, 2011)
There was maximisation in the total number of business operations in the year 2016 as large number of people were employed. The total growth rate was calculated on the basis of +-4% of the self business activities in United Kingdom. The main turnover of the business operation was accounted to 1.9 trillion which was similar to the efforts for the development of economy by the private business in country. The most crucial business activities in UK is of the proprietor which is calculated as 3.5 million (Goss, 2015)
There it can be analysed from the above mentioned data that country can achieve growth and success in their operations by running self employment activities. These business are not only responsible for enhancing growth of the country but also contributes their efforts to the yearly turnover and the statistics related to employment of the country. The government of the country have to develop plans and strategies in order to enhance the overall growth rates in the UK economy. On the other hand the contribution of business in the steel and construction industries are marginal which results in 2% of the overall business operations.
The small business activities have not only given their contribution towards economic aspects but they also plays a very important role in developing innovative and creative ideas by which the business operations can be expanded all around the globe. There is competition among small business which results in providing values to the overall economy. There is overall development of economy at the regional level along with the activities of small business operations. The exporting of goods in the economy will be maximised which results in achieving balanced growth in the overall economy.
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P4 Contribution of start-ups and small business on social economy
The social economic factors are described as the growth and development of people of the economy rather then giving emphasis on the financial values achieved from the overall business activities. The social grounds place individuals to earn profits (Gorgievski, Ascalon and Stephan, 2011). The implication of these business entities are related with welfare of the people of overall economy. The above ventures plays an important role in order to enhance the overall growth and productivity ratios from the economy thus establish a strong and positive imprints on the overall growth and development of UK social economy. The main advantages which have been gathered from the business operations are evaluated below as:
Employment
This is the most important factor in which a person receives a job according to his skills and capabilities. The entrepreneurial and small business operations has significantly resulted in overall growth and development of business activities all around the globe. According to the data published it was evaluated that around 60% of the employees are working in private sector and this is the most vital factors in social development.
Living Standard of people
The small business have raised the living standard of people who are living in UK (Chittithaworn and et. al., 2011). This has become possible as there are large number of people who have developed new and innovative ideas in order to start their ventures and provide employment to large group of people.
Regional Development
There is unequal contribution towards the overall development of nation as the industries are almost set up at limited areas. The entrepreneurs always try to start their business in which there are no industries thus they contribute towards the development of economy. This is the most beneficial factor as it will help people in order to ensure connectivity, electricity, schools and building hospitals. Therefore all these venture are beneficial in order to ensure equitable and regional development of nation.
Exports
This is vital term which is used for sending goods outside the boundaries of the nation. This helps in ensuring social growth and development in the economy. The total volume of goods exported will not only result in positive impacts on economy but also stabilising currency rates in the economy. The revenues generated are helpful when there is recession in the economy.
Community development:
The activities of entity are beneficial in community developed. This factor consist of the development of roads, schools, hospitals. The development of community ensures that there is skilled and talented workforce recruited for performing business operations. All the resources which are available in the economy should also be used in the most effectual and planned manner.
TASK 3
P5 Traits and skills of successful entrepreneurs
An entrepreneur in a company is needed to gain certain set of skills and traits. It will help in completing difficult tasks in a successful manner (George and Bock, 2011) Characteristics are generally defined as some factors that are possessed by an individual which shows intellectual skills of him.
Characteristics of entrepreneurs are:
Passionate
The term passion means desire to get something in any manner. Being passionate in business helps a person in attaining goals and objectives of a company in a successful manner. Therefore, it is the most necessary characteristic that an entrepreneur should have. It shows hard working quality of such persons in an enterprise.
Optimistic
This type of characteristics is also essential for business tycoons. It reflects innovative and higher order of thinking skills in such persons (Chrisman and et. al., 2012) It would help organisations in getting intellectual ideas through which they can create modifications and serves high qualitative and creative products in a company. In addition to this, optimisation skills aid a person to being positive and face difficult situation while operating business in an easy manner.
Confidence:
This vital characteristic of entrepreneurs shows positive attitude of a person in a company. Confidence level of them creates good impression on other people who are working around such persons to resolve factors in an easy manner. But this characteristic sometime give negative impression also if confidence become over-confidence. So, people are needed to control their level of attitude or confidence through which performances of them could not let down.
Thinker
A person also required to possess such type of characteristic of entrepreneurs as it will help in serving unique products or services to customers.
The important Skills of entrepreneurs are:-
Skills reflects the abilities and capabilities of a person through which a particular task completed in an efficient manner. An entrepreneur must possess variety of skills which help him in successfully compete in the market and achieve desired results. The list of required skills in an entrepreneur are:
Communication
This can also be referred to as interpersonal skill of an individual. This type of abilities help a person in developing a good relation and share views easily with other persons. In addition to this, in a company people are needed to communicate with each other in an effective way. Through good communications a company can make effective relationship with clients (Dennis Jr, 2011)
Decision making
This type of ability is also helpful in making good decisions in a company which proves to be effective for improving overall performance. These decisions are generally based on implementing strategies, creating modifications, distributing roles and responsibilities etc.
Leadership
It is the most beneficial ability that a person should have while working in industries. This type of ability helps managers to influence people or a group towards goals and objectives of business. It helps in managing relationship among all employees in a company.
Time management
Under this section, entrepreneurs are required to manage work of all persons in an efficient manner. It is helpful in accomplishing a task in a given period of time.
P6 Aspects of entrepreneurial personality
Personality is reflected as the set of attitude and behaviour of people. The personality is denoted by how effectively each business operations are carried out. The big 5 models is described below as:
Extraversion
The person is more energetic and outspoken is known as extraversion. This factor can help managers in motivating the employees to achieve their set targets as they can easily share their feelings with others.
Agreeableness
This is another trait which is based on encouraging positive behaviour among persons. There is harmony and cooperation among the employees as mangers is very much honest to them. Thus employees finish their working in an ideal manner.
Conscientiousness
The traits of leaders are useful in order to achieve business goals and objectives in desired time frame. The personality of leaders consist of factors such as goal oriented, brilliant etc thus all the resources which are available in the economy are utilised in effectual and planned manner (Drucker, 2014).
Emotional Stability:
This is an important factor as managers should retain their employees for long time durations they should not scold them thus enhancing their profitability index.
Openness to Experience: An entrepreneur is a person who develops new and innovative ideas and turns them into reality. Thus employees are open to share their new thoughts this helps in motivating employees and they will achieve growth in their ventures.
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TASK 4
P7 Ways in which background and experience hinder and foster entrepreneurship
Personal background plays an important role in order to develop entrepreneurial spirit in a person. The person always learn from the environment in which he is grown up. Thus these elements can foster or hinder relations. People at schools are thought to respect others and this is the major factor of their syllabus. Entrepreneurs are providing job opportunities to people thus results in overall growth and development of economy.
The most important factor is background as person should have enough knowledge about their working. They should develop those ideas which can be executed at market place and their family members should support them in their operations (Fassin, Van Rossem and Buelens, 2011)
Example
The owner of Virgin group Richard Branson belongs from a very humble background. He was having formal education but his desire was not killed and he achieved success in his operation and have currently employed 400 employees who are working for his business activity.
If person is having good knowledge about the market areas then he can easily develop entrepreneurial spirit. This resulttence.s in both hindering or foster relations. If person having knowledge about market then he can collect fund and start his operations and if person does not have any knowledge then might be he is not educated so he cannot understand the market situation. Thus the combined factor of knowledge and experience is Persistence
Example
The own of Phones 4u is an entrepreneur known as John Caudwell. He had to face difficulties in the starting but he was having the passion so he started an workshop and today he had fulfilled all his dream. The current revenues earned from his business are 2 million euros.
CONCLUSION
From the above report it has been concluded that entrepreneurs are the most valuable part of business organisation as they are developing new and innovative ideas about running a business thus providing employment to large group of people. The major classification of entrepreneurs are of corporate, social and individual. The skill and attitude of an enterprise are beneficial in order to achieve set business goals and objectives in desired time thus achieving success in their operation.
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