Unit 2 Entrepreneurship And Small Business Management Level 3
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Entrepreneurship in small business management identifies the way to make innovation in business as well as manage and develop new ideas in business. Entrepreneurs have ability to identify business problems and solve them with effectively communicating the ideas. Small business management is comprised start business to make new idea's, new techniques and technologies. Small business management is defined align-mates and coordinates of multiple activity in organization. This report comprised all are the small business ventures and their types and impacted on small business management (Burns, 2016). In this report also determined all the scope and development ideas and similarities in small business and characteristics traits of successful entrepreneur. Small business management has an ability to adopt innovation in their business and implement ideas to grow business. An entrepreneurship have skills to increased business and achieve goals and also have ability to maintained all the idea of business.
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P1. Entrepreneurial ventures and the way they relate to the typology of entrepreneurship:
Entrepreneur venture is owners of organizations who are attempts to make profitable for business. An entrepreneur is about risk, failure and success and learn from it. Entrepreneur venture identified many context in which public, social, corporate etc. They also included start-ups of business and how to improved business ideas and techniques (Schaper and et.al. 2014).
Entrepreneur ventures has four types defines the area where successful entrepreneurship increased their small business.
- Small business entrepreneur- Most of the entrepreneurs start their business at small platforms. In the UK, 5.7 million organizations start their business at small platforms. The small business definitions is success to feed the family and make profit. The small business such as Travel agents, internet commerce, store-fronts, plumber, consultants, carpenters, hairdressers, electricians etc. They are anyone who runs his/her own business and they hire local employees or family (Storey,2016.). Small business cannot provide the scale to attract venture capital, they find their business via family/friends small business loan.
- Scalable Start-up Entrepreneurship- The entrepreneur start their business knowing from day one that their vision could change the world. The scalable business attract their investors to invest them. They convince investor to help financially. They hire the best and the brightest employees for business. Scalable business is trying to innovation in their business and trying to increase as well. The scalable start-ups in innovation cluster (Silicon Valley, New York, Shanghai, Israel, etc.)
- Large Company Entrepreneurship- The large company have finite life cycle. They always remain their customers test, new competitors, new technologies, and legislation etc. large enterprises trying to developed innovation in their business and also grow business in large platform (Sahut and Peris-Ortiz, 2014). Large company create entirely new products sold into new customers in new markets. The large company examines all the marketing strategies and techniques and includes their idea in their business.
- Social Entrepreneurship- Social entrepreneur is mostly focused on creating products and services that solve social problems. Social entrepreneur making goals to make worlds better and place better, not to take market share. Social entrepreneur is always works on not profit organization and profit both.
Typology of business ventures defines all kinds of business ventures works in small platforms, they determine needs of business and their topology as well. Small business faced many problems but their entrepreneur is solved according to their minds they also having their opportunities relates to their business and business needs.
P2 Similarities and differences between entrepreneurial ventures:
An entrepreneur takes risks in their business, the difference and similarities is high impact on entrepreneurship both kinds of entrepreneur take risk and make goal in business (Goss, 2015). They manage and growing their business in various platforms and increase business continuously. There is following example of those difference-
- Financial goals- Most of small business entrepreneur are looking to achieve financial independence by building a profitable business that can pay them regular income. In contrast, the high impact entrepreneur expects to achieve limited income from the business and includes a substantial. The small business entrepreneur is primarily out to generate income. In financially the small business entrepreneur started their business to invest few and they also hire family and friends so they store some money from another investment.
- Risk profile- The small business entrepreneur is typically tackles a business opportunity with potential to generate a decent living ideas. Small business entrepreneur is always ready to take risk because they not invest more money in business. Entrepreneur is maintained the ideas which handle all risk in business platforms. While starting any new business is a risk. Small business is survival rates, to hire employees, to managing marketing rates etc.
- Financing strategies- The small business entrepreneur is always made strategies to increase business and earn profit as well. They develop new strategies which Includes ideas and new techniques which is improved their development strategies and also increasing popularity of products as well (Schaper and et.al., 2016). The financing in business is make sure business profit and improve their business growth as well and also improve to maintain the ideas of all generation. They developed planes in business to adopt all financial projects and implements them into the business as well. The organization is mainly affected to financial condition a great entrepreneur has ability to solve the financial problems and achieving goal in business.
- Employee’s recruitment and compensation- The small mainly started a small area they mostly hire their family and friends to increase business they hire employees to outside area. They interviewing people and appoint the each employees for their job position. They start training for people who are interest to do additional work. And motivate them to achieve goals in business. Some employees left their job form business affective entrepreneur works to holds their employees to long time and increase companies popularity.
P3. Statistics, micro and small business impact on the economy:
Small business enterprises are crucial part of economy. They trying to present 99% of all enterprises and employ an increasing number of persons. Most of the enterprises is not dependent and belong to any groups. But in small business enterprises are part of a group. This is most common techniques in manufacturing and to a lesser degree in knowledge- intensives business services. Small business enterprises is important in terms of employment and gross value added. This terms included in mostly Finland, Denmark and Norway (Reis and Cabral, 20150). In Germany they account for 43% of gross value created by small business enterprises and employ 34% of the total number of persons implements by SME.
Micro and small business impact on economy- Small business owner have great impact on economy. These business is might be small but their impact is high. Small business mostly impact on the large business firms they present smiler types of the products and. In the small business some times' comes with big idea's and techniques which growing their business certainly. The small business impacts on economy to established new products and service which is beneficently to UK economy. People having every facilities in the market. Small business entrepreneur most aim is provided proper service to people and better products in the market. Small business examines each and everything about the business then present their business in market, they also remain what services provide to customers and customers test as well. There are following that business gave on economy-
- Economic growth- Small business remain their growth and how to maintain it. Not all business remain small businesses. Small business is always trying to achieve goals in their fields. They try to increase their economic growth.
- Mapping the future- This is one of the major impact on economy. Small business enterprises is start innovation in their business they invent new products or have new idea to improve their products (Cohen and Wirtz, 2018). They trying to attract their customers to implements new things in their business.
- Giving back- Smaller business is process the ability to adopts to changing their business climates and make their business customer oriented. Successful business is support to pay taxes, including local taxes. For examples schools and local governments offices etc.
P4 Importance of small businesses and business starts-ups to the growth of social economy:
Importance of small businesses- Small business are crucial part of any organizations. They responsible for all activities in the company. Small business started to the small management and small area. Small business management manage all the products and services in their organization. Small business enterprises includes those are which is placed on small platforms. Importance of small business includes those areas which increase their importance-
- Job Creators-Small business create more jobs than larger firms. The small business responsible for creating 81.4 percent new jobs in UK. Small business meet with those needs with new jobs crated all time. Small business enterprises create opportunities for those people who are interested to starts-ups their career. They develop more facilities for people who are mainly attracts with jobs.
- Innovative Minds- The small business employees have minds to create new things and implements innovative ideas in minds. They using technical skills and common sense to create new inventions technologies. They develop new things which useful to business and their fields (Cohen and Wirtz, 2018). Small business entrepreneur have ideas to maintain their business growth
- Major employer- Small business enterprises provide opportunities in their organizations works with us and make career. Most of SMEs are provided highly jobs so employ can develop their skills and goals in their platforms.
- Exporting importance- Small business are important due to their role in exporting to other nations. Ninety-seven percent of identified exports are small business. 26 percent of the export value their products they ship to customer in other country.
Business starts-ups to the growth of social
economy-Small business aim to increase growth of economy. They are mainly depended to their service and their products popularity. In Japanese food business they serve much food items to their customers but most of the dishes are their signature dish which represent their business growth and fame as well. They marketing their business to various platforms (Lan and et.al, 2014). Small business established growth of business. They trying to new things to innovate business and their idea's.
- Investing in products and service people need- Small business management present their products in market. Small business organization provide service and products according to customers needs they mainly provide that kinds of products which are based of general needs of customers. Small business entrepreneur examine and remain all needs of people who are highly attached to purchase and selling products in the market.
- Providing employment opportunities- New business need to hire employees. They appoint new employees and trained them. The growth of economy also depends on quality of products. Many small enterprises are give opportunities for those people who are started third career.
- New technologies promote efficiency- Small business entrepreneur has ability to developed new ideas and products of service. Small business growth I also developed by new techniques, new technologies.
- Addressing environmental challenges- In the small business innovation is important when new enterprises faced challenges to competitors. The challenges are lowering global greenhouse, combating climate change and preserving biodiversity in the environments.
P5 Characteristic traits and skills of successful entrepreneurs:
Successful entrepreneur have many characteristics and traits common with one other. Following are-
- Passion and motivation- Successful entrepreneur passionate to their work. They doing their work in proper manner and with full concentrates. They motivate their employees to do hard work and have skills to manage all work all time. Entrepreneur have ability to hold their employees to long and motivated them to achieve goals.
- Not afraid to take risk- Entrepreneur is in their business never afraid to take risk. They take risk to develop new things and present in the market. They try to achieve goals In their business and maintain their business profile (Feldman and et.al, 2014). Successful entrepreneur always ready to take risk in their platforms.
- Self belief, hard work and disciplined dedication- An entrepreneur believes in themselves and are confident and dedicated to their project. They try to disciplined in their work and also motivate other to do works. Entrepreneurs focus on and faith idea may be misconstrued as stubbornness.
- Products and marketing knowledge-Successful entrepreneur have full knowledge of market they know what time and which products present in market and what customers need. The entrepreneur have ability to set selling products according to market rate. So customers can attract to buying their products.
- Strong money management- In this entrepreneur have planned for present and future financial and set aside an emergency fund. They secure their funds for future and make new projects in business. Small business entrepreneurs are keeps a complete handle on cash flow.
Skills of successful entrepreneurs- for starting business every successful entrepreneur have skills to improving business and growing business. There are common skills have every entrepreneurs-
- Resiliency- It describes in business many ups and downs comes business can never goes exactly they way the business plan described it. These skills determine the entrepreneur have nerve go to wrong directions (Gartner and Brush, 2014).
- Focus- Entrepreneur have ability to focus on every steps on business to achieve goal. They focus on their works and focus on develop new things which help to increase business and make new opportunities for business.
- Invest for the long-term- Most for entrepreneur are not patient and they focus only what comes next. That strategy takes lot time to success business. Entrepreneur has only focused those what make their business successful.
- Find and manage people- Entrepreneur learned from those people who are successful in own fields they buying inspiring people and learn new things and implements in their business. They need to learn to network to meet the right people.
- Sell- Many entrepreneurs is sales person whether they want to be or not. They selling their products, ideas, service to customers, investors or employees. They know about how selling their products and service whether customers are ready or not. They how to let them go and move on.
- Learn- In this entrepreneur know about the market is constantly changing. They stay up to date on new systems, technology and industry trends.
- Self reflection- Entrepreneur allow downtime to reflect on the past and plan for the future. Always working only leads to burnout physically and emotionally.
P6 Entrepreneurial aspect's personality reflect entrepreneurial motivation and mindset:
Entrepreneur personality-Entrepreneur personality traits include the characteristic, motives, attitudes, abilities and values which is shapes individual person's experience and actions. Personality traits are causes the mental and behavioural processes of individuals. Entrepreneur have personality to maintained all the business assets and data which relevant to their business. A successful business has quality to adopts new things and implements in their business. The entrepreneur has quality to ensure their future growth and what kinds of venture affects the business. The big personality traits are experience people who are able to manage their work and notifying them (Morris, 2015). A great entrepreneur mange their work with their employees and growing business. In entrepreneur personality traits they find the way here more experienced people implements their ideas and their energy.
Entrepreneur motivation and mindset- Entrepreneur are all different. They all have a different entrepreneur mindset that contributes to their success. Every successful entrepreneur have mind set to achieve goals in a business. Entrepreneur challenges to their competitors to present better products in the market. There are following mind set of entrepreneur implements in their business-
- Reach out to customers first- Small business entrepreneur developments their products and examine their popularity with customers. They reach customers first and check products is working with the market or not.
- Find a new market for existing product- After established product's entrepreneur finds a similar product in their fields. They examine products and service after that they innovation in them and present better products in the market according to their competitors.
- Use networking to build your business- Most of entrepreneur is talk about the importance of business, but same of specific about how and why networking importance in business. Networking helps business to communicate one entrepreneur to another entrepreneur. Now days all entrepreneur is used networking in their business.
- Understand the power of brand- Many entrepreneurs presented their products with brand name they understand the power of brands. Brands are helps to selling products in a market they try to use the best idea for represent their business with brands.
- Always maintain quality control- Entrepreneur always present best quality products and service in the market. They maintain their products quality and fulfil customers needs.
- Take ownership- In the ownership entrepreneur have ability to handled owners ships in business. There works to handled all employee's management and ensure they work according to their skills or not.
P7 Background and experience can hinder or foster entrepreneurship:
The main aims of each entrepreneur is different when it comes to business and take business decisions making process. Those types difference are affects on entrepreneur personality. In this entrepreneur have experience to handle all the area of business and maintain their work. Importance in an entrepreneur and they are derived from factors such as eduction and life experience. These aspects that make the individual to surpass the challenges in the way. One of the main terms are to modifying each elements on business and implements in the business. It is also important that risk taking factors in an entrepreneur have developed through time with the factors such as knowledge is acquired. Entrepreneurial understand the all risk and challenges what they involve in their business. A small business entrepreneur risk is one fundamental factor that he or shoe must understand in all its aspect, because risk doesn't mean blinding taking a leap of faith, rather constituting the idea through the calculation of challenges faced in the past. Makes the entire process effectively and efficient.
Some factors hinder entrepreneurship- there most of the factors which hinders entrepreneurship following are-
- Lack of resources- Most difficult to sell something when some have nothing to offer. Most of entrepreneur faced that time when they have nothing to offers to their customers. They cannot making do anything for their customers because they have nothing to offer.
- Lack of education- Most of entrepreneur have lack of knowledge about their business but they gain profit in their business. They have skills to runs business in proper manner and according to customer satisfaction.
- Lake of customers- Some time entrepreneur fails to run business, some time in small business there is no one around who can afford there services and they going to make a living off of it. They quit business and try to developed new business (Volkmann and Audretsch, 2017).
- Lake of access- Some time entrepreneur face the transportation problems. They cannot selling their products where they want to send them. These problems are general and occur in many organizations.
- Lake of utilities- in this entrepreneur having demands access to clean water and electricians opens up many entrepreneurial opportunities. This absence greatly diminishes the ways in which people can earn more income.
- Lake of security- Some entrepreneur avoid the security of business and they fill engaged on developed plans, where criminals stolen their business ideas and formula which going to most affects on business. The entrepreneur lose everything and have start all over.
- Corruption- Governments also demands for established new business legal formality and business licenses or seize property without warning. Some entrepreneur governments also demands for legal formalities which is totally affected to the business. For example- some governments employees demands for lot of many for complete legal formality in business They try to blackmail people to pay money or spoil their business. This most hinders in entrepreneurial lief they are mostly affects business and customers also who are connected to business.
In this above report comprised how the entrepreneurship works in small business management. They define in small business entrepreneur mange all the area such as development, maintained, motivate, provide proper service to customers. They also define ability of entrepreneur to handled all the marketing service and selling products to the market. Small business management is start with small platforms but they have big idea's to develop business and increase them. In this report also comprised the characteristic's traits of successful business who are runs business successful (Goss, 2015). They also determine the entrepreneur venture and their topology which describe the entrepreneur works in different fields and their works are effects to improve their business. In these reports also concluded how micro and small business impacts on UK economy. In the end this reports comprised the many hinders are described the in business environments and they effect to business.
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