An entrepreneur is the individual who tries to start and run a new business with proper resource allocation and utilisation of the capabilities for establishing the business at the market (Miocevic and Morgan, 2018). Through this assessment, it is possible to understand the entrepreneurial venture at the market and contribution of the venture of the entrepreneurs in the economy. In this regard, the venture types of the entrepreneurs will be analysed through which it is also possible to assess the impacts of small business on the economy.
The entrepreneurs are responsible for developing a new venture for the business and taking the risk and rewards of the business entries and in this regard the role of the entrepreneurs are crucial to develop proper strategic planning to make the business successful so that the individual can achieve success by reducing the threats of the business. There are four types of entrepreneurial ventures such as small business entrepreneurship, scalable start-up entrepreneurship, large company entrepreneurship and social entrepreneurship. Under the small business entrepreneurship, the business is such as grocery stores, hairdresser, consultants, travel agents, internet commerce storefronts, carpenters, plumbers, electricians etc. They try to utilise the organisational resources as well as own capabilities to start up the business and establish the firm successfully. Most of the entrepreneurs are profitable in the small and medium sized business where they cannot provide scale for venture capital, rather they try to finance their business with small business loans so that it is possible for them to achieve the business target. On the other hand, scalable start up is another typo of venture of the enterprise in which the entrepreneurs try to raise investment for crazy financing options for the consumers. This is scalable business model were the entrepreneurs aim at high scale of the business to fuel rapid expansion at the small period of time. Scalable start up in the innovation and creativity is effective in which the investors as well as the entrepreneurs focus on high investment to achieve high return on investment (Koryak et al., 2015).
In addition to these, there is large company enterprises in which the entrepreneurs focus on expanding the business of the large firm through sustainable investment, innovation and continuous creativity, providing new services and delivering different products that can match the customer’s expectations. Changes in the customer tastes and preferences and new technological upgradation and legislative structure can be handled by the entrepreneurs in the large-scale business through developing effective strategic planning. Acquiring innovative companies and attempting to build high relationship for venture capital, increasing innovation and creativity and hiring efficient staff are the contributing factors for the large business to achieve success. The size of the companies int his type of entrepreneurship venture is large and the numbers of employees ae also high to perform the organisational activities. On the other hand, there are social entrepreneurship in which the entrepreneurs are the innovators who focus on the creating products and services that solve the social needs and problems in the social communities across the globe (Donckels and Miettinen, 2019). The entrepreneurs aim at creating wealth for the social communities and this may be in different types such as non-profit firms, profit maximising firm or hybrid, where the major focus of the entrepreneurs in the social entrepreneurship is to maximise wealth and wellbeing of the individuals in the society so that the people can access social services for staying with a good standard of living condition in the society.
Hereby, there are different types of venture of the entrepreneurs in both the public and corporate firms where the entrepreneurs try to manage the business activities through increasing innovation and creativity for achieving the success of establishing the firm successfully int he markets. In this regard, developing a good webpage for the establishment of the business requires the small size entrepreneurial venture type in which the entrepreneurs can focus on developing the webpage for increasing the brand visibility in the market and retain the customers through the web page of the company (Gutiérrez, Segura and Bayardo, 2016). This is an innovative strategic planning for the small business which is tone type of entrepreneurial venture where the entrepreneurs invest to achieve success and developing webpage for the small business is one of the effective strategic planning for retaining long run customers for the organisational product and services.
Small business is considered as an effective platform for creating values for the social communities as well as achieving success in near future. There is significant growth of the small business in the UK where the profitability and sales volume of the small business is increasing at an effective pace which further contribute in economic growth and social development. As per the figure below, all the small businesses in the countries UK and European Union countries are increasing at a rapid rate and there are huge number of individuals who are engaged with the small sized business in the counties across the globe. This has major contribution on the economy of the countries.
Figure 1: Values added of small business
(Source: Altinay et al., 2016)
As per the figure below, it can be stated that, small business creates a huge volume of employment int he UK as compared to medium sized firm and large enterprise. It further indicates that, there is high rate of job creation int eh UK economy for such growth in small business and thus the small business is able to resolve the problem of unemployment in the economy which positively contributes on social development and economic growth. Hereby, the small sized business is beneficial for mitigating he level of unemployment in the economy as well as it provides an opportunity to the individual in the UK economy to get employed and earn more in future. This also contribute in improving the disposable income of the people where the entrepreneurs are able to carte jobs in the economy by hiring more people in the small people. There is 48% job creation in the UK economy for small business as compared to the medium sized business creating 12% job and large enterprises creating 40% job in the society (Moen, Heggeseth, and Lome, 2016).
Figure 2: Contribution of small sized firms in the economy
(Source: Rodríguez, and Nieto, 2016)
In addition to these, 99.3% business in the UK are considered as small sized business where the growth in private business is rapid and the entrepreneurs are able to contribute in the society by ensuring economic growth and social development (Love and Roper, 2015). This indicates that, there is high contribution of the small sized business where the entrepreneur is also able to raise the National Income of the country through increasing their business activities as well as enhancing their performnace in the market. For example, the retail clothing industry is growing rapidly in the UK which is also considered as a small business. As per the international context, the small and micro business are successful to raise find and achieve success. In addition to these, employing the local workers, adapting the climate changes, and high sales volume of the small business are the positive impacts on the economy. The number of private firms in small sized business is increasing at a higher rate where the entrepreneurs are successful to caret values for the social communities as a whole by delivering high return on investment. Contributing to local government with taxes as well as growing small business to a corporation are also contributing positively to improve national income of the country as a whole. Efficiency of the entrepreneurs as well as efforts to make the clients happy and job creation are the positive impact on the economy of the small business.
Growing impacts of small sized business in the economy
It can be concluded that, like the large size business, it is not required to invest a huge amount in the small business and it is effective of the entrepreneurs to develop proper strategic planning as per the understanding and knowledge of the entrepreneurs where the individual has the right to develop the strategies and invest as per his or her capabilities to achieve success in the market. In the recent years, the small business focus on internationalise the business through increasing their online activities. The small sized business contributes in the economy through job creation, enhancing national income, high performance in the country, digitalisation and internationalisation of the business and contributing to local government with taxes.
The mindset of the entrepreneur is playing a crucial role to establish the business and start up with proper innovation and creativity and in this regard the entrepreneurs must have proper personality and entrepreneurship trait to become a successful entrepreneur. Growth mind set of the entrepreneurs is effective for achieving future success where the entrepreneurs are trying to explore opportunities through continuous research and development so that he or she can mitigate the challenges and develop proper strategic planning to establish the business.
Through the presentation, it is possible to represent the mindset of the entrepreneurs in case of conducting small business, international business or providing social service to the customers. It is necessary to have proper knowledge and skill so that they can develop proper strategic planning for making the business successfully. Moreover, the experience of the entrepreneurs and their personality trait are also important to treat the people at the business and lead them towards achieving the organisational success. It is the responsibility of the entrepreneurs to explore new opportunities in the market after proper analyses of the market and conducting more research for product promotion so that they can serve the customers in a better way.
The entrepreneurs need to have active listening power and interest on acquiring new skill and knowledge so that it is possible to conduct market research and identify the customer’s actual neds and preferences as it is necessary to acknowledge the requirements of the customers for developing the business and delivering quality products which can satisfy the customers. The entrepreneurs need to be active always while establishing the business and the individuals needs to have proper knowledge and technical skill to establish the business. In this regard, it is necessary for the entrepreneurs to have proper knowledge about the business and understanding the needs and preferences of the customers first. Hereby, the entrepreneur’s first preferences are to reach out the customer’s taste and requirements so that the entrepreneurs can improve their understanding about the developing suitable products and services that attracts the customer and the entrepreneurs also can have the opportunity to satisfy eh customers successfully (Piperopoulos, 2016).
Problem solving skill is necessary for the entrepreneurs to improve their abilities to resolve the existing problems and explore more opportunities through research and development program. In addition to these, problem solving skill is one of the best skills of the entrepreneurs through which it is possible for the entrepreneurs to analyse the present business condition and resolve the existing problem by exploring new opportunities in the market. In this regard, the entrepreneurs need to find a new market for the existing products so that it can retain the customers and strengthen their customer base for long run. Exploring the market opportunities as well as problem solving skill are effective to develop the business efficiently.
The skill for networking in the business is necessary to build string corporate relationship which is necessary for enhancing investment and expanding the business strategically. The skill of networking the business is also effective for the entrepreneurs through which it is possible to conduct effective negotiation and build strong relationship with other business entities and leaders int eh market for improving the business chain for conducting the activities int eh market proficiently. Networking is important or the business to increase return on investment as well as increase the chance of venture capital and encourage more foreign investment for future success (Harrison, Burnard, and Paul, 2018).
The skill for developing proper vision is necessary for becoming a successful entrepreneur. Keeping control over the vision and mission of the company is another skill where the entrepreneurs try to control; their aim and objective to develop proper planning for achieving the ultimate aim. Keeping control of the vision is also effective to communicate the vision with the subordinates of the business and develop proper strategic planning for future success.
In depth knowledge and technical skill is required for the entrepreneurs to conduct the business operational activities and ensure technological advancement for making the business successful. Knowledge about research and development is necessary to improve product variety and maintain effective product lien for future so that the business scan deliver high quality of products and services to the customers. In this regard, the entrepreneurs are responsible to conduct effective research and development program or increasing product differentiation and satisfy the customers with upgraded products.
Technical skill will provide a scope to increase innovation and creativity of the business where the entrepreneurs can achieve success in a unique way. The entrepreneurs also need to have technological skill for encouraging innovation and creativity by implementing updated technology so that the entrepreneurs can achieve the vision in a unique way, int e recent years the customers are interested with updated technology And the people are trying to be updated by internet or social media platform ad in this regard the entrepreneurs needs to promote their business through using latest technology so that it can attract the customers at the market. Hereby, for enhancing innovation and creativity, it is necessary for the entrepreneurs to have technical skill and knowledge (Lee et al., 2016).
Figure 3: Personality trait of entrepreneurs
(Source: Gedik, Miman, and Kesici, 2015)
Personality trait is one of the effective factors that is required for becoming a good entrepreneur. Need for achievement and proper focus on control and self-efficacy are necessary personality which influence and motivate the entrepreneur to achieve success efficiently. Continuous innovation and creativity are another personality where the entrepreneur focus on conducting research and exploring market opportunities to establish the business successfully. Communicative skill is necessary which provides a scope to interact with the business leaders and managers to develop strong team so that the entrepreneur can perform better through developing working in partnership strategy. This is also beneficial to share each other’s experience and improve their performnace as a whole. Strong stress tolerance, control over other employees, shared vision, communication and showing empathy and interpersonal skill are effective personality trait of the entrepreneurs to become successful.
The characteristics of the entrepreneurs include independent, creative, optimistic, flexible visionary, hardworking, goal oriented and motivated which contributes in achieving success where the entrepreneurs are able to analyse the present business situation and explore more opportunities to achieve the pre-specified vision.
Figure 4: Characteristics of entrepreneurs
(Source: Obschonka et al., 2017)
As power the entrepreneurial trait, the factors such as foresight, ethical leadership, ability to learn from mistake, time management, decisive, versatility, and initiative are effective to become a good entrepreneur.
Figure 5: Entrepreneurship trait
(Source: Chen, and Thompson, 2016)
For a local entrepreneur, the characteristic and skill are important where the individual can analyse the local market and acknowledge the needs and preferences of the local customers. It is also necessary to have proper knowledge about the strategy to reach the customers and be practical about the business activities so that it is possible to establish the business in the locality.
Of the global entrepreneurs, it is necessary to have proper knowledge about the requirements of the customers at different geographical areas worldwide. Being visionary and strong knowledge and experience and technical background are necessary to reach the customers across the globe. Moreover, being optimistic and passionate as well as being confident and the abilities to learn from mistake are necessary skill and characterises for the global entrepreneurs. Apart from that, proper managerial skill is beneficial to manage the employees and managers across the international borders to make the business successful.
The characteristic of social entrepreneurs is different from global and local entrepreneurs where the social entrepreneurs are mission leader, change agents, social values creator, socially alert, opinion leader, dedicated to the aim of the society, highly accountable and emotionally charged. The social entrepreneurs must have proper knowledge about the activities which enhance social development so that the people can enjoy social services and fulfil their basic needs.
Entrepreneurial skill and characteristics are effective for achieving business success where the entrepreneurs can explore more business opportunities to achieve success. In this regard, the experience and knowledge of the entrepreneurs are effective to develop proper planning for performing the business operations and manage the employees to establish he small business and gain competitive advantage in the market. The background and experience of the entrepreneurs are important in all the cases including local, global and social entrepreneurs where they try to utilise their knowledge and skill to meet their aims and vision.
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