ENTREPRENEURSHIP AND SMALL BUSINESSES MANAGEMENT
Introduction
Entrepreneurship aims to develop, manage, and organize a business venture by taking different risks in order to make a profit. In today's economy, entrepreneurship is combined with labor, land, capital, and natural resources which can produce profits. Entrepreneurship development is very much essential as it influences the economic prosperity and growth of a country. This enables the organization to create a strong free market economy. The entrepreneurs aim to provide assistance in the identification of effective opportunities for the organization. These opportunities help the organization to create innovative and effective services for the society. The present study focuses on the different types of entrepreneurial venture and how they create an impact on the economy. Moreover, the study focuses on the impact of small business on the economy along with assessing the mindset of the entrepreneur that hinders or fosters entrepreneurship.
LO1 Explore and illustrate the range of different ventures that are entrepreneurial
P1 Examine different entrepreneurial ventures and explain how they relate to entrepreneurial topology
Entrepreneurship defines the ability to take proper action and offering the courage that helps in preserving and committing to all the available challenges and problems that benefits an organization. According to Basu and Bharti (2016), entrepreneurs possess the ability to transform vision into a business. Entrepreneurs help the organization to identify several opportunities to make use of the available resources in an efficient manner. It helps to set up a promising future for the organization. Entrepreneurs in small organizations help them by identifying various areas that they need to work on along with providing many ways that help the organization in promoting their new products and services. The activities of entrepreneurship vary from organization to organization. The different kinds of entrepreneurial ventures are discussed below:
Private entrepreneurship
Private entrepreneurship refers to the activities of an entrepreneur, where it deals with all the prevalent process. The process at first deals with the identification of many opportunities which benefits the business in terms of overall growth. Countries consist of different entrepreneurial ventures, mostly in terms of medium and small organizations. Moreover, this entrepreneurship influences in contributing to the economy of the nation by providing employment opportunities along with value-added initiatives.
Corporate Entrepreneurship
Large organizations deal with this type of entrepreneurial activities. For maintaining and developing the business operations, large organizations expand their entrepreneurial activities. This activity includes producing new products or services that help in attracting and retaining more customers. The corporate entrepreneurs mainly focus on the organization culture and process for creating a suitable and friendly working environment. This enables them to handle risks efficiently along with gaining more future opportunities.
Intrapreneurship
According to Blackburn (2016), this is an innovative strategy which is used in encouraging the employees of the organization for delivering innovative products and services. After the employee ideas are approved by the high-level organizational management, the organization focuses on financing in the development and research field. This entrepreneurship helps the organization by enhancing the workplace activities.
Public sector entrepreneurship
This consists of the entrepreneurial activities that are all carried out by the government. These type of public sector entrepreneurial organizations aims to offer good services to the people of the nation. Generally, they act as a corporate entrepreneurial venture with the same sort of corporate entrepreneurial principles which helps them to manage the business efficiently.
Social entrepreneurship
It consists of the entrepreneurial activities that are mainly performed by the social organizations like NGOs, non-profit organizations and many more. The process assists in identifying various social issues which are mainly performed by the community and the implementation of entrepreneurial activities enable the organization in creating, finding, and managing various ventures.
Academic entrepreneurship
These entrepreneurial activities are mainly performed by the research and academic institutions. It aims with innovation in enabling the organization to move towards the intellectual property rights. This type of entrepreneurship only exists in research and development enterprises.
P2 Explore the differences between different entrepreneurial ventures
The differences and similarities between two of the entrepreneurial ventures are discussed below:
Lifestyle entrepreneurship
Lifestyle entrepreneurship is termed as the purpose of an individual who forms a business venture not to make profits but to change the lifestyle. According to Boateng (2018), a lifestyle entrepreneur mainly focuses on the business rewards or sometimes they possess the business venture as their passion.
Social entrepreneurship
Social entrepreneurship defines the techniques through which organizations are allowed to fund, develop, and implement solutions to the environmental, social, and cultural issues within the organization. This entrepreneurship concept varies from organization to organization in terms of beliefs, size, and goals.
Topic Lifestyle entrepreneurshipSocial entrepreneurship
Investment
They do not seek investors as they operate their business functions with their own funds. They seek investors for expanding the business.
a) They are very much limited
b) They do not tend to make profitsThey always tend to make profits
Exit strategyThey do not have any exit plan or strategyThey have an exit strategy
Working hourThey maintain a balance between work and lifeThey can work for more time for gaining more money
LO2 Explore the impact of small business on the economy
P3 Assess the relevant statistics and data to explain the impact of small or micro business on the economy
The role of entrepreneurship provides a contribution to the nation by developing its economic condition. The countries included are UK, USA, Australia and much more which offers many small or micro business ventures. It enhances the country's economic condition by identifying and creating many employment opportunities along with delivering innovative products and services to the customers. It creates a vast impact on both the local and national levels. According to Hussain et al. (2014), the development of entrepreneurship sees a revolution which has provided eighty percent new jobs in the small business sectors. Moreover, it has also been recorded that there are now more new innovative products and services for the customers as well. A small business comprises of merely five hundred employees. The economic role of the small business enterprises are as follows:
Fulfilling all the customer requirements
Dealing with risks to sustain in the market
Providing employment opportunities to skilled workers
Delivering innovative products
Contribution to the country’s economy in terms of financial help
Enhancing the rate of productivity
It creates impact at different levels in the following ways:
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