Entrepreneurial Ventures and Exploration of the Entrepreneurial Mindset
Contents
1. Different types of Entrepreneurial ventures 4
2. Similarities and difference between entrepreneur ventures 5
3. Understanding of entrepreneurship in both public and private sector 5
4. Impact of small business and startups on the economy 7
5. Importance of small business and startup to the Social Economy Growth 8
6. Difference that Small business and large business make to economy 9
7. Characteristics and traits of successful entrepreneurs 10
8. How entrepreneur personality reflects to the entrepreneurial motivation and mind-set 11
9. How background and experience can hinder or foster entrepreneurship 13
10. Link between entrepreneur personal background and entrepreneur characteristics 14
Introduction
This Report provides the understanding of the types of business in UK and what are their advantages and disadvantages by focusing on the Small Business Enterprises of the country. SME’s in UK contributes to the 50% of the revenue in UK also it will analyze the total impact of SME’s in the UK. Then further this report differentiates the skills of the entrepreneurs and of the business manager then it explains the entrepreneur personality that reflects the motivation and the mindsets of the entrepreneur also explains the traits, skills and characteristics of the entrepreneur that is needed to be a successful entrepreneur and in the end it tries to evaluate the link between the entrepreneur characteristics and personal background. This report goes through of these aspects by taking the example of Issa brothers. It can also be seen that in UK biggest employment opportunities are developed because of the SME’s in the country.
LO1
Sole proprietorship –They are the most famous type of business in the world. These types of ventures are managed and controlled by the single individual, or company and also can be limited liability partnership. The funding in such kind of business is done by the single person the person can take loan from the bank in order commence the sole trader type of business. These days, start-ups are taking over the world, they are also a kind of sole trader business where a person has a particular idea about the business which he considers to be an innovative and profitable, and if the idea works properly then there are chances that soon such sole can become the big corporation by capturing the market. In UK almost 60% of businesses are sole trader.
Partnership – When two or more person come together to carry out business activities and share the profit and loss for the same then such business is known as partnership they are generally formed when the 2 or more person have same idea to earn the profit and they agree to implement such ideas by starting the partnership. They are managed by the partners and every partner has its own responsibilities. The profit is shared between the partners according to the ratio set in the partnership contractor. The liability in the partnership on the partners is unlimited (Morris et al. 2018).
Company – They are known as the biggest form of business and operate as a single legal entity under the law. They operate in a scale business and have the ability to earn huge profit. The owners of such ventures are the shareholders of the company and it is managed by the directors that are appointed by the shareholders. They are hard register and operate also the business of such type are required great knowledge, skills and innovation, if company lacks any of these then the venture might not provide enough profit. The products that are made by the companies are generally in demand also the company type of business enjoy the company reputation as they considered to be a brand.
Limited liability partnership –This is a partnership where the liability of at least one partner in the partnership is limitedand other partner liability is same as the general partnership. In such type of partnership the other partners are not liable for the negligence or the misconduct of other partner. In UK limited liability partnership is considered to be a corporate body that means its legal existence will be continued independent of its members. The responsibility in LLP is to extend as it is written in the contract. Also in LLP the members have to pay the company tax as well as personal tax.
2. Similarities and difference between entrepreneur ventures
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Similarity
Dissimilarity
Sole trader and partnership
Sole trader and partnership both are the personal business and has no separate legal entity. Once the owner dies the business also ends (Basole et al. 2018).
In sole trader there is need of one owner only while in partnership there is need of two partners at least
Partnership and corporation
Both of them are managed and controlled by more than one person also the liability is not on the single person
Partnership has no separate legal entity while the corporation has the separate legal entity
Partnership and limited liability partnership
They both are pretty much same and have the same purpose and same principles the managerial function as well as the structure of the business is also same.
The only difference in both of them is that in one the liability is of one partner is limited and the other partners liability is fixed to the amount of shares that person holds
3. Understanding of entrepreneurship in both public and private sector
There are various entrepreneurial ventures they are diverse in their type and kind but largely it depends on the purpose of the business. The purpose is the most important thing and it is the one that differentiate between the private sector enterprise and public sector enterprise so if the purpose of private and public entrepreneurship can be determined then it will provide with much better understanding.
The company whether it is private or public both deals with the products and the services and earns the profit selling them into the market. Both the companies provide such products and services to the customers that is in demand in the market they also try to expand themselves as much as they can so that they can reach to the customers (Chandra et al. 2021).
The difference that both of the companies have is that the private business entrepreneurs focus on the profit while the public business entrepreneur focus on the needs of the customers and on the products as they want the society to develop and grow while private just want their profit to grow.
This is difference is there because the public sector companies are owned by the government while the private sector is owned by individuals who have entered into the business just to seek the profit.
For example Sainsbury of UK is public limited company and Tesco is private limited company. Sainsbury is customer focused company while Tesco is profit oriented.
LO2
4. Impact of small business and startups on the economy
Small business have the huge impact on the country’s economy, they are the backbone of the country. The combined turnover of the small businesses in UK in the year 2018 was of £2 trillion, which explains its significance and not only that it also amounts to 52% of the private sector turnover in UK. SME’s provides employment to millions of people in UK so it provides sustainability and growth to UK so they provide –
Revenue - they provide revenue to the country as 50% of the growth in the economy is due to them
Jobs – they provide the employment in the country 52% of the employment is provided by the SME’s in UK
Infrastructure – these small SME’s also helps the country in growing their infrastructure as these companies develop their offices store and many other things that directly creates a better infrastructure.
Figure 1 market-inspection.co.uk
In the case of Asdathat was started as the small business now owns more than 5200 petrol stations, largely in Europe and US, they provide employment to 33000 people because of this the large enterprises are unable to hike their petrol prices as they give the competition to them so the Asda’s entry into the corporate business will be good for them as they are earning huge profit and when the company earns huge profit it is better for them to form their business into company as it will provide them major relaxation and also
The small Business and startups are very important for the country’s growth. In UK they provide the huge employment as well they have good share in the UK’s economy
They are important because –
They increase competition and bring innovation – the SMEs provide the healthy competition to the other companies as a result the product that is provided to the customers in the end is generally of good quality and also in low prices. Then they bring innovations with them for example Uber that came up with the idea of cab as a result satisfaction to the customer is provided (Burns 2016).
Technological advancements – Startups comes with the new technologies that can later help the other companies.
Global community – SMEs create the positive influence all over the globe as they reduce the cultural differences in employees and the customers. The technological advancement and innovation also helps the global community to grow better.
Respond better to the economic changes - SMEs are better is responding to the economic changes in the world as the most of the business in UK is of SMEs so they are the one that handles the economic issues in the company and in recent changes the SMEs are getting more funded.
Small and Medium business – As above stated the most of the economy of UK is due to the small business. They bring more than 50% of revenue to the country and provide the employment to more than 50% of the population in UK they provide good competition to other companies hence the product that comes into the market is generally of good type due to the competition and also is low in price (Toth 2019).
Large business – In UK there are almost 8000 large business accounting to 0.1% of businesses but still provides the 39% of employment to the country and 48% of the revenue in country is generated by them. They have huge contribution to the country’s economy as well as they also help the small business by financing them they try to spread themselves all over the world (Natter 2018).
LO3
There is huge difference in between the entrepreneurs and business managers some of their skills must be same but the entrepreneurs generally possess the better skills when compared to the business managers.
The entrepreneur needs to be a good manager but business manager not necessarily need to be a good entrepreneur. There are certain characteristics of a good successful entrepreneur – (Tarver 2019).
Self –motivated
Passionate
Understanding
Management skills
Flexible
Has a good network
Successful entrepreneur skills
Knows how to sell the product
Good communication skills
Fast learner
Making the good business strategy
Successful entrepreneur traits
They are generally confident
Adapting to the situation
Always learning attitude
Determined
Accepts the failure and works on them
So above stated are the skills that generally a successful entrepreneur possesses and because of it they take their business to the success at the same time when it is compared to the skills of the manager there will be certain difference (Franco and Prata 2019).
Manager of the business needs any of the skills that an entrepreneur possesses but they do not need all of it as they just need to manage the business so qualities like flexible, understanding and good management are some of them that are needed by the good manager to be successful in managing the business.
In the case of Issa brothers they tend to have most of these traits, characteristics and skills as a result they have reached the success in the business.
Entrepreneur must have the good personality as it the major reason that because of which the people get attracted to them and employees listens to them.
Some of the major aspects of the entrepreneur personality are –
They must be passionate
Should not be afraid to take risk
They should know how to control the business
Achieving something great
Should know how to manage the stress
Innovation is key to success
Proactive personality
The provided personality is really important for the entrepreneur as, if an entrepreneur is having such personality then they are easily able to solve major problems they face while establishing their business. The biggest problem that entrepreneur face is that to keep motivated through and if the personality of the entrepreneur is good then they are easily able to set their business, the entrepreneurs also need to bring the innovative ideas in the company in order to bring necessary changes in the company. Then if the entrepreneur knows how to tackle the different situation as well knows how to manage the stress then in that case the entrepreneur stays focused and manages the employees in a better way (Obschonka et al 2019).
In the case of Issa brother, they were innovative as well as the risk takers it was their personality that made their business big, The Issa brothers put the retail in the petrol station as they thought that there was need of such to the customers also it was a risky business to do but the Issa brothers were not afraid of the risk as a result they found the success.
LO4
The background of the individual is one of the most important things and that can help the person to grow as well as affects his business in a negative way all depends on the kind pf background the person came from. The background of the person is deeply affected by the friends, family and other supporting staff that motivated them to achieve something big. Like if an individual came from the strong financial background then the person will not be afraid to take risk in the business and will stay confident throughout in his business activities and if the entrepreneur does not get support from the friends and the family or do not have good financial background then he will think twice before taking the risk that is why the people from the good financial background finds the success in the business rather than the person from the weak financial background. Then there is personal experience that is another big aspect to find success in the business and can be said that this is the most important one as it is said that there is nothing greater than the personal experience. If the person has the personal experience then he would know what to do and what not to do and if the person’s experience is good then he will be confident with his decision and if his past experience is bad then in that case he will not be enough confident in taking the business decisions majorly will not take much of a risk (Bignotti and Le Roux 2020).
In the case of Issa brothers their personal experience was the major reason that came so long, they just used their experience in the business and achieved the success out of it. They started retail on their petrol station because they knew that people might find it attracting also both of them are brothers that means they know each other very deeply hence they provide motivation to each other.
The entrepreneur person background comes as the most important aspect in the business and it helps them to tackle the many situations that they might face while ending their business. The Entrepreneur characteristics such as flexible, passionate, self-motivated and many more helps them to find the success even when there less opportunity to the success and if they are patient in their business then some day they tend to find the success in their business (Kuratko 2016).Issa brothers are started their business with single petrol forecourt I Bury, Manchester, 2001 and now they have 5,200 petrol station it explains a lot about their business growth and expansion that too in a very few years, this explains lot about their characteristics and person background. The Issa brothers used to work in the garage with their father and from that they hit upon the idea to transform the filling station to the shopping station so they were very innovative in their approach and as they have got the back of each other that provides them with the enough motivation one needed. The Issa brothers are known to be the quick learners as well as the soft spoken people this is the quality that always attract the people as result people tend to have faith on such kind of people. Then they risked their business by putting a lot of amount on the retailing sector but as their approach was good and was backing by the past experience they were confident enough to pull it off and now they are billionaire (Mustoe 2020).
Conclusion
This report concludes that in UK there are various kinds of business structures like sole proprietorship, partnership, company and limited liability partnership and each one of them has its advantages and disadvantages. The SME’s provides the biggest contribution to the UK’s economy as well as creates the highest employment opportunities. The Issa brothers were having only petrol station in the year 2001 and from that now they hold 5200 petrol station majorly in Europe and in America all of this due to their innovation and their entrepreneur skills as they are known to be fast learners as well as soft spoken people. It can be said that if the person want to opt for the company form of business then he must have the innovative idea and certain skills so that he can find the success the person must opt for the SME’s in the starting and they expand it like the Issa brother as by this the person do not face much loss and with the process of expanding he also learns various skills as well as about the market.
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