Introduction
Aspects of Entrepreneurial Ventures and Entrepreneurship will be analysed n this article. Entrepreneurship indicates to the process of starting new enterprise and bear all the risks of in order to generate revenue (Oosterbeek, Van Praag, and Ijsselstein, 2010). The person who create the enterprise and accept all the challenges with risks while creating the enterprise is the entrepreneur (Von Graevenitz, Harhoff, and Weber, 2010). Entrepreneurs ensure maximum use of their resource and capital to attain success. Different type of improbability exists in business which is called entrepreneurial venture (Fayolle, 2013). Entrepreneurial venture brings higher revenue for a company but it has same level of risk also. Either the venture will bring higher profit or higher loss.
Exploring and illustrating the range of entrepreneurial ventures:Entrepreneurial Ventures and Entrepreneurship
Entrepreneurial ventures and their relation with typology of entrepreneurship:Entrepreneurial Ventures and Entrepreneurship
Entrepreneurs produce and innovate new products that fulfil customers’ demand and make their life better. Entrepreneurship make the proprietors financially strong and reduce unemployment rate also. Different type of entrepreneurial ventures are evaluated below:
Small Business entrepreneurial venture: Small business is the entrepreneurial venture in which proprietors start business with their limited sources and capital (Neck, and Greene, 2011). Plumbers, electronics, groceries stores, internet commerce store etcetera are different types of small business. Proprietors set small business in order to generate profit by scheming, planning and executing the business therefore it is considered as entrepreneurial venture. Proprietors of this type of business start with own savings as capital or borrow from family, friends and from other available sources. Limited capital and resources are the weakness of the business for which the proprietors cannot expand their business. The ways of expanding small business are having partner who will invest on the business and will bear half risk also. In 2019, the amount of small business in UK was 5.82million which refers to the scope of small business to grow in the country (FSB, 2020). By establishing small business proprietors generate profit and also manages workforce for the unemployed people therefore it plays outstanding role in a country’s economy.
You may also be interested in: Differences among entrepreneurial ventures Impact of small businesses on the UK economy Importance of small businesses for social economy Traits and skills of successful entrepreneurs How background foster or hinder entrepreneurship
Large company entrepreneurial venture: Large Company are the business which keep growth through innovating new products and satisfying customers’ need but it has solid set of life cycles (Martin, McNally, and Kay, 2013). This type of entrepreneurs customize products and services according to customers’ taste, furthermore compete with their competitors strongly. Entrepreneurs find out new opportunities and utilize them to set their business. They always identify the change that comes to customers’ demand, utilizes technology and produce products of customers’ choice. Identifying customers’ changing demand is tough therefore this type of business is hard to operate.
Social entrepreneurial venture: Social entrepreneurs are those who work for social being by providing products and services that solves social demand and troubles; furthermore it can be both profitable or non-profitable (Raposo, and Do Paço, 2011). These entrepreneurs engage social entities and help people to lead their life in better way. Entrepreneurs may execute business in order to gain profit or not gain profit. Non-profitable social entrepreneurs expand business for the welfare of society. Social business is also considered as entrepreneurial venture because it goes with a systematic plan in order to generate revenue. For example, ‘Action for Business Limited’ in UK was established to support economic development and social solidity in severely disadvantaged area of Manningham in Bradford (The Guardian, 2012).
Scalable start-up entrepreneurial venture: Scalable start-up business is the business which is operated though scalable and repeatable business model that assists the business to generate high revenue and be prosperous (Rauch, and Hulsink, 2015). Innovative ideas are the key driver of the success of scalable start-up entrepreneurship. Entrepreneurs do not need to bear high incremental cost in order to generate high revenue in this business. For example, Chad Hurley, Steve Chen and Jawed Karim created You Tube in 2005 and the cost was software development (Studio Binder, 2020). People of all over the world use You Tube daily and company just need to update the software. About 5 million videos watched per day with more than 23 million channel on You Tube which refers the huge profit of the company (Studio Binder, 2020). This type of business goes on their systematic business model repeatedly and generate higher revenue therefore it is considered as entrepreneurial venture.
Likeliness and dissimilarities of entrepreneurial ventures:Entrepreneurial Ventures and Entrepreneurship
Entrepreneurial ventures are dissimilar from one another’s nature but they have some similarity also. All these are demonstrated below:
Generating revenue: Likeliness among entrepreneurial ventures is that all of them are set in order to generate revenue (Nabi et al., 2017). Small, large, scalable etcetera entrepreneurial ventures tend to generate high revenue.
All the ventures are executed in systematic way: All type of ventures are executed with proper planning, directing and managing which is other similarity of ventures (O’Connor, 2013). Every type of venture needs systematic plan in order to attain targeted success.
Size of all ventures are not same: Size of all ventures are different from each other (Fayolle, and Gailly, 2015). For example, size of small business are too small in the comparison with scalable and large entrepreneurship because these are huge in size. But social entrepreneurship can be both small and huge in size.
Conducting innovation interest are different from one another: Small business have less scope of bringing innovation and creativity because of their limited budget of business (Fayolle, and Gailly, 2015). They cannot invest in R&D to bring innovation. Whilst, scalable entrepreneurship fosters its success through innovating new products and services that makes customers’ highly satisfied and the company become profitable. On the other hand, large entrepreneurial ventures’ proprietors have less interest on innovation and serves customers with their experiences and well-organized services.
Market expansion potential is also different from each other: Small business does not get enough chance to expand their business because of less capital and innovative idea (Packham et al., 2010). Whilst, scalable and large entrepreneurship has financial stability and available innovative idea by which they can expand business easily. As like as scalable large entrepreneurship, social entrepreneurship also expands its business enormously.
Impact of small businesses on a country’s economy: Entrepreneurial Ventures and Entrepreneurship
Impact of micro and small businesses on a country’s economy:Entrepreneurial Ventures and Entrepreneurship
Small Business
Small business refers to the business which has 500 employees or less and the business can be privately owned and have partners also (Rideout, and Gray, 2013). Small business needs low investment to open, therefore entrepreneurs can start business with less difficulties. In UK’s economy, small business are playing outstanding role in making the economy stronger. There are 5.82 million small businesses in UK which is 99.3% of the country’s total business (FSB, 2020). All these companies have at least 49 employees (FSB, 2020). Small businesses have appointed more than 16.3 million people of UK which is 60% of total private sector employees’ rate (Bionic, 2019). It seems that small businesses have reduced unemployment rate from UK which has made the economy stronger than before and helped people to lead life in better way.
Micro Business
Micro business is the business which is operated with ten employees or less and too small on the basis of scale (Seikkula-Leino et al., 2010). Micro business is operated by sole proprietorship only. Proprietors do not face much legal issues in micro business which exists in other business therefore people can start anytime. In UK, there are 5.6 million micro businesses which is 96% of the total businesses of UK (Statista, 2020). Micro business needs less employees and less capital also therefore people of UK can start the business easily and number of the business is increasing. As a result, people is becoming independent by managing own income source and others’ also by appointing them. It is also making the economy stronger by making people employed. A graph on the increasing employees of number of UK micro business has been presented which refers the outstanding contribution of micro business on the country’s economy.
Above graph shows that UK has experienced the highest growth of non-employers (those that are small shops operated by one person). At the same time, the country has also watched the growth of small and medium sized business. However, large companies grew really slowly in the economy.
Usefulness of small business and business start-ups toward the social economic growth
Small business plays outstanding role across the world in making countries economically strong. These businesses keep innovating new ideas and produces of customers’ choice that makes these businesses successful. Usefulness of small business are:
Job opportunity: By establishing small business the proprietors become self-employed and makes more people financially strong through creating job opportunities (Vanevenhoven, and Liguori, 2013). It provides job opportunity for 60% people of UK (Bionic, 2019). The entrepreneurs of small business, contribute enormously in social welfare because people can lead their life better by being employed.
Innovating new things: This type of entrepreneurs work to innovate new products and services for customers by renewing old things (Zhang, Duysters, and Cloodt, 2014). For example, Mark Jukerberg invented Facebook which was a social media and new concept of communicating with people. Because of this social media people of all over the world can stay connected with each other.
Women and minorities get work opportunity: Small businesses create great work opportunity for women and minorities and they can earn money to make their life better (Liu, Walley, Pugh, and Adkins, 2020). 51% of UK population are covered by women (Ethnicity Facts and Figures, 2018). The country could not be able to attain economic progress without engaging them in work and small business has given the chance to women to earn. It is one of the best social welfare done by small business.
Makes the execution of large company easier: Large companies can collect raw materials from the small businesses that make their execution easier (Morris, Webb and Singhal, 2013). For example, large garment brand can purchase clothes from small entrepreneurs in order to make their brand’s cloth.
Tax remain in social economy: When people buy from small business, the tax remain in their social economy and it makes their community stronger (Küttim et al., 2014). Profit from the business also remain on their community when they purchase more from small business.
Key aspects of entrepreneurial mind-set:
Characteristics traits and skills that makes entrepreneurs successful and different from business managers
The characteristics that make entrepreneurs different from business manager are evaluated below:
Self- gratification: Entrepreneurs do their work to make themselves gratified because they love to work (Sánchez, 2013). Their business is their desire therefore give their hundred percent to their work. On the other hand, business managers do their work to make their boss satisfied.
Tend to be independent: Entrepreneurs want to make own decision and do own work which refers to their independent nature (Bae et al., 2014). They do business to manage won income source whilst, managers work under boss and have less desire of being independent.
Have the ability to lead teams: Entrepreneurs have to influence their teams effectively to work actively and lead them properly which is different from managers (Henry, Hill, and Leitch, 2017). Entrepreneurs have the passion, ability and knowledge which helps them to lead their team effectively and it ensures their success.
Guts of facing challenges and solve problems: They never get scared of challenges and face these challenges furthermore solve all problems which managers cannot (Walter, and Block, 2016). Entrepreneurs are capable to resolve problems that help them to be successful.
Search opportunities and utilize them: They find out available opportunities to achieve growth and utilize them properly to ensure the business growth (Arogundade, 2011). Managers cannot find out opportunities like entrepreneurs.
Positivity: Entrepreneurs face different type of situation while doing business but remain positive which help them to overcome the obstacles of their way (Vanevenhoven, 2013). They see positivity in all negative situation that managers are incapable to see.
Value and make good relations: Entrepreneurs value relations and make good relations that help them to get good suppliers and buyers which managers unable to make (Blenker et al., 2011). Good relation with buyers increase sales and good relation with suppliers ensure the supply of quality raw materials by which they can produce good products.
Aspects of entrepreneurial personality reflecting on entrepreneurial motivation and mind-set:Entrepreneurial Ventures and Entrepreneurship
Personality of entrepreneurs motivate them to attain success by giving full effort and set their mind to stay strong. The aspects of entrepreneurial personality that reflects entrepreneurial motivation are assessed below:
Hopefulness: Usually people stop doing any work when they see that they are not succeeding in that work but entrepreneurs never lose their hope (Piperopoulos, and Dimov, 2015). They never compromise on giving effort and work actively to attain own targets. Their hope makes them more confident and energize their mind. Therefore they can concentrate on their business that assists them to maximize the outcome from their business.
Desire: Succeeding in business is the desire of entrepreneurs that encourage them to work hard for the business and handle it with love (Matlay et al., 2010). In order to fulfil their desire of being succeed they work effectively and keep motivating themselves to gain the success. This desire gives them the energy to fight with every type of situation and get ready always to remove the barriers of their way.
Strong mind: When someone want something, they must have the courage to lose something for the achievement. Entrepreneurs have the strong mind and pay the price of achieving prosperity (Donnellon, Ollila, and Middleton, 2014). They never get sad after losing something because they know that something better is waiting for them in future.
Artistic manner: Entrepreneurs can do their work with efficient way and artistic manner (Valerio, Parton, and Robb, 2014). They can think differently than others therefore the way of doing their work is unique. The find outs new way of doing work and their creativity encourages them to implement their ideas.
Independent in nature: Entrepreneurs are independent in nature and they do not allow others to guide themselves and this nature set their mind to have own business (Karimi et al., 2010). They cannot tolerate when others try to lead them because they want to be their own boss. The independent nature encourage them to establish own business and do work according to their own way.
Positive hope: Entrepreneurs have the skill of being positive and this positive hope gives them courage of facing the complexities they face in operating business (Huber, Sloof, and Van Praag, 2014). This positivity makes their work easier for them by giving hope to see difficulties as driver of their prosperity.
Capable of making relation: Capability of making good relation with others also encourage entrepreneurs because they know that relations are one of the key driver of businesses’ success (Johansen, and Schanke, 2013). It also motivate them to be entrepreneur by informing that they will be able to operate business successfully by maintain relation with suppliers, buyers and others.
Good decision maker: Habitually entrepreneurs have the capability of making right decision which capability is rear to find and this habit boost up their mind to achieve success in own business (Jones, 2010). They can ensure better outcome from business by making right decision and habit also motivates them highly.
Different environments that foster or hinder entrepreneurship:Entrepreneurial Ventures and Entrepreneurship
Background and experience can hinder or foster entrepreneurship:
Knowledge that are achieved from experience and background assists entrepreneurs to open and operate their business. The business can be influenced by both positive and negative way because of the experiences an entrepreneur uses. How entrepreneurs’ business are fostered by their background and experience are evaluated below:
Active network fosters business growth: People have good relations with many suppliers and buyers of their previous company where they used to work (Matlay, and Jones, 2011). Entrepreneurs also have these type of network that they had made in their previous company which helps them to operate their business effectively. For example, network of active buyers can make the business profitable if the entrepreneurs become able to convince the buyers to be the buyer of their new business.
Experience of working in good culture fosters business: When people work in good culture, it helps them to gain good experiences such as: working cooperatively with each other, help each other, avoiding conflict etcetera. Entrepreneurs can utilize these experiences which they have gained from the good office culture and it will help them to adjust with the employees or partners of the business (Izedonmi, 2010). They will be able to cooperate with everyone and maintain the employees by passing these good experiences to them.
Experience of communicating effectively: Entrepreneurs learn how to communicate effectively with stakeholders while working for previous company which help them to communicate effectively with the related parties of own business (Martínez et al., 2010).
The experiences and background which hinder the business are:Entrepreneurial Ventures and Entrepreneurship
Bad culture of previous company: Sometimes entrepreneurs gain bad culture from their past workplace such as: engaging in conflict, breaking rules etcetera hinders the business (Arasti, Falavarjani, and Imanipour, 2012). They will not be able to provide better workplace for employees and misbehave with them which their boss had done with them. It will make employees annoyed and they will not work actively.
Demotivation and unfair policy: If the entrepreneurs did not get motivation in their workplace, they will not understand the value of motivating employees which will affect the business (Maritz, and Brown, 2013). Demotivated employees never work effectively and it harm the quality of the product and service of the company. If they have experience of unfair policy as like as: unfair salary, delay in giving salary etcetera and apply these on own business it will also make employees annoyed. As a result, employees will not give their best.
Conclusion
Entrepreneurs make themselves financially strong and create work opportunities for others in huge amount. As a result, economy of countries get stronger with the enhancement of entrepreneurial ventures. Two most used entrepreneurship type are small and micro business which are easy to start than other business. Both of the business plays excellent role in making countries’ economy stronger. Therefore, government of all country should make the business environment more flexible for small and micro business in order make themselves stronger by increasing GDP.