Developing Entrepreneurial Skills Assignment
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Entrepreneurs are one of the crucial factors in an economy which creates value in the society by using skills and innovative ideas as well as producing output efficiently. Therefore, successful entrepreneurs are considered as a factor for economic growth which is effective to enhance opportunities of entrepreneurs, where failure of entrepreneurship causes losses of resources in an economy.
P1 Types of entrepreneurial ventures
Entrepreneurial ventures can be distinguished into different types such as small businesses, scalable start-ups, large companies and social entrepreneurship. Small businesses can be referred to as small scale operating businesses. Generally, small scale businesses are operated by an individual, which aims to utilise resources and turn them into profit. Scalable start-up can be defined as the business, which starts its journey from a unique innovative business idea. Morris et al. (2018), the start-ups are effective in creating its own market week with different products and services and it focuses on scaling-up its business operation domain or area with the period of time. With effective and unique products and services, start-up businesses are growing more efficiently than other traditional businesses (Morris et al. 2018). Large companies or businesses can be referred to the businesses which have several divisions and branches and different regions in a domestic as well as International market which have focused on its expansion of capacity with new technologies. Moreover, business organisations are focusing on expanding businesses in new market economies. Social entrepreneurship can be defined as the businesses which are focused on increasing the benefits of society as well as mankind.
According to Gur?u et al. (2020), typology of entrepreneurship can be defined as the characteristics of entrepreneurs which can be categorised under 4 categories such as imitation discovery, construction and allocate. Different entrepreneurship ventures are related with all categories of typology which focuses on enhancing business opportunities by using these typologies.
P2 Similarities and differences between entrepreneurial ventures
Different types of finches in entrepreneurship are associated with some differences as well as similarities (König et al. 2019).
Every business focuses on enhancing their profit or income with creating value. Small businesses, large businesses as well as scalable start-ups are focusing on enhancing their market share with innovative unique and creative products which creates value in the society as well as provides effective return.
All business on earning profit from its operations; therefore, every business venture's sole aim is to earn profit by operating a business in the long run as well as short run. Exit for social entrepreneurship, businesses focus on utilising as well as exploiting resources to turn it into profit.
Innovation of new products and services is effective to increase their business operation areas as well as achieve business goals that are profitable. Except for small businesses all businesses have capacity for innovation and discovery through research and development to hold an effective market share (König et al. 2019).
Along with similar it is there are several differences among different types of entrepreneur Ventures.
Motives of business
Although, all businesses are focused on earning high profit from its business operations; the long-term goals are slightly different from it solve profit motive. For instance, social business ventures are focused on creating value in society and earning profit. Scalable start-ups focus on expanding its business and creating a new market for the products and services provided by the business whereas large companies are focusing on entering new markets and expanding their businesses.
Risks of business management
Business organisations face different risks in business operations. For instance, small businesses and social entrepreneurs are facing low risk in their business operations whereas scalable start-ups and large companies are taking high risks to earn higher profit through their business operations.
M1 Diverse range of entrepreneurial ventures
Entrepreneurship of a corporate sector refers to the business which has the sole motive to earn profit only, whereas public sector organisations are focusing on managing activities of government as well as some business activities with minimal profit or management of resources (Irfan et al. 2018). Public sector organisations are all also involved in creation of product and services for generating revenue providing employment and enhancing optimisation of resources. In other words, public sector entrepreneurship can be defined as social entrepreneurship does not have any target market rather producing welfare and benefits for society. On the other hand, the corporate sector is focusing on fulfilling its aim and objectives along with profit making. The corporate sector can be categorised under large companies who are responsible for creating value and increasing the number of consumers to enhance its profit. Corporate sector is focused on utilising its resources and increasing its productivity rather than the benefits of society, which makes differences between public sector organisations.
D1 Scope, development, and growth of ventures
Entrepreneurial ventures have seven scope and growth opportunities in eight existing business operating areas and markets. Large companies are focusing on developing its new market for operation and enhancing its growth with expanding its businesses which contributes significantly in the output of an economy. Scalable start-ups are not focusing on first growth rate rather developing a reliable market with its products and services; however it can be noted that successful scalable start-up businesses grow in the long run and become a large company which operates in multiple regions. Social entrepreneurs are focusing on utilising social resources and protecting different factors and welfare of society (Irfan et al. 2018). Small businesses are facing issues regarding scaling up their business operation and expanding, although small businesses are operating in Star Plus to expand its businesses it requires funds, where the facing issues. Social entrepreneurs do not focus on spending on businesses to enhance profitability but focus on increasing social benefits. In the case of large companies, it does not focus on social benefit rather it focuses on benefits and making profit which is also the motive of scalable start-up organisations. Large scale operation is the primary focus which would provide opportunity for growth as well as development of business.
P3 Impact of micro and small businesses on the economy
Small and micro businesses are one of the crucial tools for economic development and an output increment in an economy. The type of economy consists of most large businesses. The UK accounts for 5.5 SME business, which is associated with 99 percent of business community people in the UK. Small businesses are providing opportunities to work individually as well as with a small workforce to earn sufficient profit from its business operations. Small businesses feature working with less than 50 employees. All labourers are the most effective sector which creates employment and provides value to the economy. 3 out of 5 people are employed in SMEs, which provides maximum employment to the economy (Fsb.org.uk, 2021). The only employment in small and micro businesses is approximately 16.3 million which is accounting for 61 % of the total employed population (Fsb.org.uk, 2021). It signifies that small and micro businesses are contributing significantly in the economy regarding income generation output production as well as providing effective support to the UK economy. Turnover of this business is nearly £ 2.3 trillion, which is equal to 52% of UK’s GDP (Fsb.org.uk, 2021).
Figure 1: Number of small and micro business in the UK in 2021
(Source: Statista.com, 2022)
This business is effective to support unemployed people financially by providing employment and reducing burden. Although large companies are providing significant contributions to the economy of the UK, small and micro businesses are providing support to the economy. Moreover, it also ensures social welfare with higher employment and earning. Small and micro businesses are presented in different sectors of the UK. The maximum number of SMEs are in the construction sector followed by retail, administrative, information and communication and other factors, which have been represented in figure 1 (Statista.com, 2022).
P4 Importance of small businesses and start-ups in economy
Small businesses are providing a significant contribution to the economy of the UK, whereas the start-ups businesses in the UK are also significantly rising. The rising of start-up businesses in the economy provides opportunity to increase innovation and creativity in the product market to provide value services to its consumers. The rise of start-up businesses consists of several aspects which creates value in the economy as well as benefits in the economy. As per the report of the government of UK investments in start-up businesses has increased by 127 percent since 2018; Government of the UK is also claiming that both of the start-up companies are approximately 50 billion which is providing employment to the people of more than 35000 (Gov.uk, 2021). Technological development is one of the aspects of growing economic capacity which helps to enhance productivity as well as efficiency. Majority of the start-ups in the UK are occurring because of technological development and innovation, which is effective to economic output.
Small businesses in the UK are also increasing day by day which are effective to boost overall output of the economy as it includes all businesses who are self-employed, owning small businesses. 5.5 million Small businesses across the country are providing effective value and output to the economy (Fsb.org.uk, 2021).
M2 Evaluate differences between businesses
SMEs can be defined as the businesses which are associated with employees ranging 0 to 250 (Parliament.uk, 2021). However, SMS can be further divided into three categories such as micro businesses, small businesses and medium businesses which can be categorised according to their number of employees. As per the report of the UK parliament it has been seen that the number of businesses with no employees, that is, self-employed businesses is approximately 4175,000 which provides employment to 4539,000 people in the UK. Moreover, the turnover of these self-employed businesses is more than £ 303 billion. It accounts for 17% employment through the economy. The micro businesses, which are associated with 0 to 9 employees only and it accounts for 55,83,000 businesses and employment to 1,63,33,000 people, which accounts for 21% of total employment (Parliament.uk, 2021).
Table 1: Private sector businesses in the UK in 2021
(Source: Parliament.uk, 2021)
Small businesses consist of 10 to 49 people, which accounts for 211,000 businesses in the UK and providing employment to 41,11,000 people. Medium businesses are working with people between 50 to 250, which provides employment to 34,74,000 employees with a turnover of £ 650 billion in a year. Large businesses are categorised as the businesses which are working with more than 250 employees. Total number of large businesses in the UK is approximately 800, which provides employment to 10 million people with a business turnover of more than £ 2.13 trillion (Parliament.uk, 2021). The contribution of large businesses is lesser than the contribution of all SMEs. Figure 2 has shown that the number of business in the UK. The figure represents that the number of micro organisations is the highest.
Figure 2: Private sector business in the UK in 2021
(Source: Parliament.uk, 2021)
D2 Impact of small businesses on the economy
Growth of small businesses in an economy provides a wider support to the growth of output of the economy however there are several impacts on different levels of economy. Development and rising of small businesses provide efficient support to the local communities, whereas medium businesses are providing support to the in terms of employment output generation, new service providing and others. Innovative start-ups are also considered under the SMEs sector of the UK which consists of several innovative products, which enhance value production in the economy of the UK. It provides support to the local community in terms of employment generation, new products and services and others which are effective to provide long-term support to the economy as well as sustainable development of the national economy. Moon over the growth of the national economy is also effective to invite investment from the foreign countries as well as domestic organisations (Parliament.uk, 2021). The growing business also provides opportunities to include several ethnic people, along with strong participation of females in the business operations.
- This report deals with understanding different aspects of entrepreneurship
- The winning mindset of entrepreneurs, their characteristics and personality will be studied
- Examples of successful local and global entrepreneurs will also be provided
There are some crucial attributes in an individual that promotes entrepreneurial mindset and develops entrepreneurial skills. This report deals with the understanding of these aspects of entrepreneurship. At first three examples will be provided of successful global as well as local entrepreneurs in order to illustrate the characteristic skills and traits of entrepreneurship that have contributed to the success of their companies. The difference that these successful entrepreneurs have in comparison to traditional business managers will also be understood in this regard. The ways in which the personality of an entrepreneur such as lifestyle, cultural difference, dedication and family background reflects their mindset and motivation will also be identified with proper examples. It will be followed by evaluation of different arguments about entrepreneurial characteristics and how they affect and influence business.
P5 characteristic traits and skills of successful entrepreneurs
- There are some key characteristic traits and skills of an entrepreneur
- They generate new ideas, take risks and have determination to achieve their goals
- They have leadership and communication skills as well (Agung et al. 2018).
Specific characteristic skills and traits have been found to be a crucial factor that differentiates entrepreneurs from other business managers. These characteristic traits and skills have contributed towards the success of entrepreneurs.
Some of the important characteristic traits of an entrepreneur which has been identified in this regard can be listed as:
- Having great vision for the entrepreneurial ideas and determination to achieve their identified goals
- Being able to generate new ideas and having the capability to think out of the box to solve existing problems
- Being ready to take risks to achieve goals and always feeling motivated for the idea
There are some significant skills that are also necessary in this regard in an entrepreneur in order to be successful such as
- Having good time management skills to make sure that the involved tasks are carried out on time and are not delayed
- Great leadership skills to manage manpower and show them path
- Good communication and negotiation skills to deal with clients and suppliers in an efficient manner
P6 Assess of entrepreneurial personality reflect
- The entrepreneurial personality reflects on the mindset and motivation of entrepreneurs
- The person who is averse to taking risks cannot be good entrepreneurs (Mensah et al. 2021).
- Person who get easily discouraged and lack in motivation cannot be good entrepreneurs as well
There are multiple aspects in which entrepreneur motivation and mindset of an individual gets affected by their personality. It has been found that there are certain personality characteristics that promote entrepreneurial thinking while others do not. The individuals who are less averse to taking risk for instance can never be good entrepreneurs as they would be required to take several risks in their entrepreneurial journey to make their business grow and stand out in the market. It can also be said that being an entrepreneur requires one to be extremely competitive and motivated throughout their journey of entrepreneurship. The person who easily gets discouraged and doesn't have the motivation to face the multiple challenges that will be thrown to them in their jouranye cannot be good entrepreneurs as well as they would lack the entrepreneurial mindset which is extremely crucial and a major necessity for success.
M3 Explore and examine different lines of argument
- Entrepreneurial characteristics is subject to arguments
- One characteristic cannot be said to be door to success for entrepreneurs (Kerr et al. 2018).
- People succeed even without some major characteristics
There are different lines of argument when it comes to the characteristics and personality of entrepreneurs that needs to be properly examined and explored. It has widely been accepted for instance that on should have good leadership skills to be a successful entrepreneur but this is not necessarily true as there are many entrepreneurs who don't have much leadership skills but they still build the business on their own due to their innovative idea, their approach and the motivation to succeed and achieve their dreams. The same can be said about those people who don't have enough communication and negotiation skills. Even though it is necessary, it is not a factor that confirms entrepreneurial success. There are many entrepreneurs who have good communication skills but still fail in their journey as it has to be equally backed with motivation, courage and path breaking business ideas to achieve goals.
D3 Characteristic traits, skills, and motivational drivers
- Philip green is a successful entrepreneur and founder of Arcadia group
- Laurence Graff founded Graff diamonds
- Both these entrepreneurs had the characteristics of not giving up
There are many successful entrepreneurs in the UK who have set up an example of entrepreneurship with their characteristics, skills, traits, motivation and success. There have been differentiating motivational drivers but what makes them similar is the common attribute of not giving up and being motivated to achieve their goals and vision of entrepreneurship. Philip Green for instance is the founder of Arcadia group which is one of the successful retail businesses present in the country. He started at a young age of 15 after leaving school as a shoe importer and established his business by 21. Another entrepreneur Laurence Graff left his studies at 15 and became a dealer in diamonds. This underlines one of the major characteristics of successful entrepreneurs and it is that they have hunger for success right from a young age and cannot ever live a life of normalcy like others. They want to make an impact on the world and have hunger for success which helps them in their entrepreneurial journey. Their intricate involvement in the business throughout the process is another major success contributing factor or characteristic.
P7 Background and experience
- Personal background and experience affects the entrepreneurs
- It can foster or hinder entrepreneurship (Hadi and Abdullah, 2018).
- Bad experiences in life can encourage one to build a better life for themselves
The personal experience and background of an individual can affect the entrepreneurial success they would achieve in life. These experiences can hinder as well as foster the journey. Philip green for instance who is the founder of Arcadia groups of retail started doing business at the age of 15 after leaving his school. This leaving of schools at such a young age and going into business was compelled due to his personal background and experience of his life. This is what encouraged him in his entrepreneurial journey. On the other hand some people, due to hardships they face, might get discouraged. This is also true for people who have been living a comfortable life since their childhood and did not feel any need of indulging in entrepreneurship.
M4 Analyze entrepreneurial characteristics and the influence of personal background and experience
- Entrepreneurial characteristics develops through personal experiences
- Personal background of entrepreneurs can be major success factor (Chioda et al. 2021).
- There is a clear link between successful entrepreneurs and their personal experience
Some of the important characteristics that are needed to be successful in entrepreneurship as identified before are being determined and motivated, having clear vision and focus, risk taker and having great communication and man management skills but this does not come easily to them. It is their life experience and background that shapes them this way. An individual who did not have much in life initially for instance would not shy away from losing anything and be fearless in their approach by taking several risks in life whereas others who had a good economic background would have extreme fear of losing on their fortunes because of which they would be extra cautious. Laurence Graff has been intricately involved in each stage of his business which reflect his passion for his job that got inculcated in him at an earlier age as he left his schools at the age of 15. This experience developed his entrepreneurial characteristics of being motivated.
D4 Influences entrepreneurs
- The people with humble background do not look down upon work
- They are ready to do several different tasks that are required (Shabbir and Kassim, 2019).
- Life experiences also encourage entrepreneurial ideas
The entrepreneurs while setting up their entrepreneurial business don't necessarily have the required expertise and team that is required to carry out such intricate and complex tasks. This often requires them to indulge in several activities which they otherwise would not have taken part in. The people that had humble backgrounds don't look down upon work and meet with different people without discrimination which is a necessary attribute of a good leader which is necessary for entrepreneurship. Entrepreneurship often requires help from relatives and friends. Individuals who did not have support from them can negatively impact their journey.
- Several necessary characteristics of entrepreneur has been studied
- Link with background and experience was understood
- Real life examples of successful entrepreneurs was taken
In this report, an extensive analysis of the necessary attributes of successful entrepreneurs has been carried out to understand what makes them succeed in their business. Evaluation of the impact that background and experiences has on the success as well as failure of the entrepreneurial ideas was also studied in this regard. This was understood by taking real life examples of successful entrepreneurs of the UK such as Philip Green and Laurence Graff.
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