Entrepreneurship and Small business Management
Table of Contents
In this rapidly changeable business environment, all small and large organizations continuously struggle to improve their performance efficiency through the support of positive entrepreneurial skills. In the small business process, entrepreneurship is operated interchangeably. This task discusses the small business case scenario, from the standpoint of different entrepreneurial ventures. Aspects of entrepreneurial characteristics are discussed through understanding its comparison with the skill of a business manager. this study can develop a strategic dimension for small business to gain long term sustainability.
Various types of entrepreneurial ventures and its interrelation with the typology of entrepreneurship
In this modernized business process, the small business organization has enhanced positive entrepreneurship chunk to foster standard performance at all levels. As per the case scenario, Richard Branson has suggested the best tactical way in regards to a successful business. As per his comment, entrepreneurship is required to recognize the gap in the production and marketing strategy within the organization. It is required for both small and large scale business process. This report enlightens the different entrepreneurship ventures and their range within the public and corporate business process.
Types of entrepreneurial ventures
To understand the in-depth view of this conception, a different type of entrepreneurial ventures need to be recognized.
Figure 1: Entrepreneurial ventures
(Source: Morris, 2015)
Start-up business is a primitive field, where the entrepreneurial implication is required to create a positive mindset in regards to sustainable performance. According to Bruhn et al., (2018), entrepreneurs of start-up businesses should have a clear understanding of business vision within a changed as well as a transformed market. During start-up, entrepreneurs are taking the support of external financial investors for developing the business venture in a precise way. It has been visualized that often entrepreneurs are taking the support of merger & acquisition with other small companies to strengthen their business stability in a competitive market. On this scale, entrepreneurs are facing difficulties while the incorporated business solution has no surety to tackle different consequences. Therefore, the explicit decision can hamper the growth as well as the performance of such start-up companies.
Entrepreneurship of small scale business
It has been visualized that, in the upcoming market environment in the UK, most of the business will take the form of small businesses. As per the report of 2017, 5.7 million businesses are operating in the UK. On this scale, over 99% of businesses are small as well as medium-sized businesses. Also, it has been reported that 33% of employment and 22% turnover is accounted for by the micro-businesses (files.parliament.UK, 2018). Among 5.4 million micro-businesses, the employment rate also dependent on their performance (Dilworth, 2017).
Figure 2: Share of Enterprises in the UK
(Source: files. parliament.UK, 2018)
In this case, entrepreneurs are hiring employees from a local place. Entrepreneurs primarily do not have any ambition to build a business worth $100 million. They are primarily accelerating this business for enhancing internal profit through the collaboration of positive teamwork.
In this business case, entrepreneurship strategy is prioritized on solving social problems. As per the opinion of Bruton et al. (2015), entrepreneurs are applying such skills through understanding the possible changes within the social perimeter. This type of business is operated as a nonprofit business but they are supportive to make a positive environment for the hybrid companies, who want to make a sustainable profit. In this case, the managerial aim has been structured to make a positive business environment rather than making maximum profit share.
Large scale entrepreneurship
Large scale entrepreneurship is considered as a part of corporate objectives. In this case, companies are trying to create the health care sector. The act of patenting medical innovation for sustaining long term success. Therefore, entrepreneurs want to maintain a competitive position in this market. The theories are applied here for evolving new technologies as per the current trend of consumers. Business change cannot sustain long. Hence, they need innovation or disruptive innovation has been taken by entrepreneurs due to rapid changes in consumer trends.
The interrelation of entrepreneurial typologies with mentioned ventures
As per the viewpoint of Burns (2016), typologies can be utilized for understanding the relationship between type as well as the subject. For entrepreneurs and small business managers, this relation can be recognized based on the choice of activities. For all types’ typologies are needs of the power, the need of achievements, and attitude to profits as well as decision-making style. In this scale, the entrepreneurship dimension is dependent on the level of self-concept, creativity, commitment as well as purpose. In terms of value, these typologies are required to be applied based on entrepreneurial characteristics. Therefore, the mentioned ventures have a positive link with the typologies to understand the way or method for marinating long term success. In this case, typologies are related to lifestyle entrepreneurship, corporate entrepreneurship, individual entrepreneurship, and social entrepreneurship. These typologies are required to create value within the incorporated business model of entrepreneurs. The individual is related to small and medium scale business and corporate is related to the large business process
In the current form of business, large-scale businesses are seeking money first; charities are seeking the impact on social parameters. As per the opinion of Cassar et al. (2015), social entrepreneurs want to maintain balance within the profit and external impact. Social entrepreneurship covers the direction of decision making strategy. Through understanding the typologies, it can be said that significant differences are visualized in individual and corporate entrepreneurship. According to Chen et al. (2017), for small-scale and start-up business processes, individual entrepreneurship typology needs to be understood. In individual entrepreneurship, entrepreneurs involve local partners and often family members. However, personal risk status is relatively high in such an entrepreneurship venture but the entire ownership is under the control of the owner. On the other hand, Dees (2017) commented that corporate entrepreneurship is linked with the large business operation, where other associates are also involved. Therefore, entrepreneurs have to pay attention to their partners for making any decision for business purposes. However, corporate entrepreneurs can offer employees freedom regarding various opportunities. This type of venture is dependent on the venture rather than loss.
SME business process is dependent upon the human capital rather than internal resources. Both small scale and large scale entrepreneurial ventures are dependent on consumer change. In this case, a decision has been taken based on the changed trend of consumers.
A diverse range of entrepreneurial ventures in regards to the incorporated way in both public as well as the corporate sector
The comparative analysis has been displayed that entrepreneurship has both positive as well as negative consequences. As per the opinion of Drover et al. (2017), entrepreneurship, as well as entrepreneurship management in the public sector, is an important segment, where the entrepreneur’s interest is prioritized on resource constraints. In the dynamic business field, an organization needs to generate new economic activity for maintaining stability. Here, the entrepreneurial strategic range is diversified in regards to tolerance of responsiveness. Social entrepreneurship is ranged from broad to narrow and it refers to innovative activity for-profit sectors. Corporate sector entrepreneurship is defined as a part of the economy for generating profit. It is not owned by government-oriented services and government property. These companies are handling the entire strategic dimension based on their own decision as well as philosophy. They are not directly doing business with the company’s clients. In the case of the corporate sector, entrepreneurs are specific individuals who are innovating as well as producing the goods that will benefit the company at all levels. On the other hand, public sector corporations are selling their shares in the stock market. In this case, the strategic dimension is different to hold long-term economic growth.
In the above section, a different concept of entrepreneurship has been discussed but now conceptual understanding is required to recognize the scope as well as developmental growth in business. Entrepreneurship is the basic concept to foster a standard business process. As per the opinion of Giroux (2016), entrepreneurs can maintain the business standard by recognizing the risk in the business process. These risks can be related to certain economic downfall as well as changes in social parameters. In this competitive business market, organizations often struggle against the threat of various consequences (Spartz and Weber, 2015). After Brexit, consumer’s perception of spending becomes reduced as a result of inflation. This status can be identified by the entrepreneurs to resolve barriers in marketing. Through understanding the social conception, entrepreneurs can direct the entire business objectives toward the dimension of long term success. To maintain competitive stability, entrepreneurs play a key role in marketing business that cannot sustain long. Hence, they need innovation. Their dynamic integration relies upon four major elements, which are mentioned as follows.
- Charisma for attracting capital as per the exploration
- Development of different marketable business cannot sustain long. Hence, they need innovation
- Developmental of different marketing skills
Through maintaining these core elements, entrepreneurs can maintain the consumer’s expectations. It can be fostered through creating positive change in the marketing function. Therefore, entrepreneurship activity has positive scope for fostering efficiency in the business process.
It can be deduced that various entrepreneurial ventures are related to the typologies of lifestyle entrepreneurship, corporate entrepreneurship, individual entrepreneurship, and social entrepreneurship. These components have separate strategic differences as well as similarities. On the other hand, the entrepreneurial strategy is required in their dynamic integration for fostering standard business growth.
In this jeopardized business environment, organizations are always trying to create more positive business tactics. In this scale, entrepreneurship is required to be taken towards a fruitful direction. This task delivers the conceptual understanding of entrepreneurial characteristics and their impact on business processes. This analysis is based on the case scenario of Nom Foods.
Steph Croft Simon has founded Nom Food, which was the first organic popcorn brand in the UK. The organization has delivered its product as per the consumer’s perception in the UK market. Now, the analysis is required to reflect an image of their entrepreneurial characteristics. Entrepreneurs and managers are playing an important role in the business community. As per the opinion of Grimm et al. (2017), both managers and entrepreneurs are sharing the same characteristics but their traits are different at all levels.
Figure 3: Characteristic skills
(Source: Hietanen, 2015)
Entrepreneurs have to maintain a positive environment through their skills of motivation. This motivational characteristic is required to boost up the subordinate’s work as well as effort. They can recognize the gap in employee performance and can empower them for achieving the committed objectives. As per the case scenario, the owner of Nom Food has a positive capability to motivate employees. The strong and positive collaboration of employees is the basic reason for their success in the UK market. Steph Croft Simon has maintained a sustainable workplace through the support of motivational traits.
Creativity and Persuasiveness
This characteristic trait is required for developing the ideas in regards to the invention as well as innovation. Through creativity, entrepreneurs can introduce a new business or an old business with standard modification. As per the case scenario, Nom Food has been introduced despite available same product companies within the industry. As per the entrepreneurial view in case, organic popcorn product will be preferred by the consumers as it is free from artificial flavors and refined sugars. Therefore, she has the creative idea for operating a business within changing market trends. Here the trend is prioritized on consumer’s health.
Risk and Tolerance
These characteristics traits are important for entrepreneurs to identify the possible risks in the emerging market. As per the case scenario, over the last five years, popcorn has enjoyed positive economic growth but penetration is not maintained as per committed business-standard. In this case, the entrepreneur has done market research as the primary focus to innovate different product concepts. Therefore, their characteristics skill of her is positive.
Comparison of entrepreneurial traits with managers
The focus of the entrepreneur is concerned primarily with the necessary components of a start-up business. In this scale, the managerial focus is prioritized on business sustainability. In this case, Steph Croft Simon has undertaken a positive idea on product creativity and marketing plan. This conception is focused entirely on stable a start-up company like Nom Foods. Entrepreneurs have tended upon visionaries. They see a potential market for a product and turn the vision into reality. In this case, managers are concerned o with the other’s vision. In the case study of Nom Food, the entrepreneur has taken a standard approach through executing a standard strategic vision at all levels.
Aspects of entrepreneurial personality and its reflection on the entrepreneurial mindset as well as motivation
The personality traits are dependent on the entrepreneur’s characteristics trait. As per the opinion of Hietanen (2015), an entrepreneur’s personality has a positive link with the strategic end of the business mindset. In business, process mindset is a derivative of service improvement as well as innovation. The personality aspects and its link with the Nom Food business management is as follows
Improvement personality of an entrepreneur is related to create transformation on own strategic vision as well as business dimension. As per the case scenario, Nom Food owner has created strategic innovation on the current product which is ‘Organic Popcorn’. From this standpoint, it can be said that the entrepreneur is very much sincere to take effective decisions on business improvement. She has understood that through improving the product, Nom spread of foodborne disease. Part 9. Washing and drying of hands to reduce microbial contamination. Journal of Food can get strong brand value. This scenario reflects the tactical mindset from the angle of improvement ideology.
The artistic personality of an entrepreneur is required to execute the creative decision on business essentials. This is required for product design, workplace development as well as service planning. As per the case scenario, Steph Croft Simon has designed the product through innovation. She has designed the product of ‘organic popcorn’ with the standard decision on the production process. As the product will be free from artificial flavors, the entrepreneur has positive attributes to get suitable ingredients. She has also planned the product plan based on consumer tend in the current market. Therefore, artistic personality has been fostered with a standard image.
A visionary personality is indeed required as an entrepreneur to structure the mindset on the business outcome. This means is the developed product or service will be suitable for consumers or not (Mauer et al., 2017). Therefore, vision is required to understand the stability of a start-up or small business organization. In this landscape, the entrepreneur of Nom meeting the consumer needs. In the case of the café, the consumers often need to eat, fresh and tastefully prepared Food has displayed positive attributes on the product as well as service process design. As a part of a consumer-driven business approach, the Owner has delivered their products by taking primitive priority on consumer’s health. Therefore, this is reflected in an image of an entrepreneurial mindset in regards to a different personality.
Entrepreneurs initiate the plan for business decisions by recognizing the economical risks. In this case, characteristic traits of an entrepreneur play an important role to maintain a positive business-standard. Jamali et al. (2017) argued that entrepreneurs are facing issues in the business process due to several consequences from political, legal, social as well as economic backgrounds. In support of this argument, Kearney and Meynhardt (2016) demonstrated that the characteristic skill of an entrepreneur is significant to maintain a profitable business organization.
An entrepreneur’s decision may create a positive or negative impact but often such a decision may not be supported by the associated stakeholders. Kellermanns et al. (2016) argued that entrepreneurial decisions need to maintain the level of stakeholder interest. In this case, stakeholders are supporters, teammates, customers, and others. To resolve operational conflict entrepreneur has to maintain ethical standards on all decisions. On the other hand, Kromminga (2016) commented that negotiation skill is required for understanding the competitive forces. This skill is required in market intuition, where entrepreneurs have to undertake standard objectives for products as well as services. Often, the business processes cannot be stabled as per the committed vision. In this case, negotiation skill is required for handling all sorts of burdens within the market.
Now, these arguments are discussed about the different required skills or attributes. Now the question is ‘is such skills are present from the birth of an individual, who is now an entrepreneur?’
The answer is no in response to this question. In the viewpoint of Kuratko et al. (2018) entrepreneurship skills are not part of a person’s instinctive skills. These attributes are developing in an entrepreneur based on personal experience as well as the impact of family background. Through practical understanding in a different scenario, entrepreneurs can understand the different dimensions of skill implication. During such practical implication, entrepreneurs can understand the required field for applying the required ideology.
Gene speaks but nowadays experience and proper training enable an individual to develop their skills. An individual who never belongs from a business background can even succeed in its own business. An individual belonging to a business background might fail to perform better activities because of a lack of proper knowledge of running a business. Running an organization needs proper skills and labor and if an individual feels that, he/she can control those activities without and conception, he/she can never succeed in the future. Entrepreneurial characteristic helps an individual to handle the odd situations and to make accurate decision-making to run the business successfully, while experience helps the entrepreneur to understand the upcoming hindrances that the organization can face (Markman, 2014). This allows the individual to take proper measures from before and to overcome the odd in the most tactful way.
The background of an individual supports the individual to run the business confidently, but if the individual lacks the proper skills of being an entrepreneur then the individual can face a huge loss. This can even lead to the disseverment of the organization. The experience of an individual can even choke an organization because the entrepreneur might have a bad experience with him/her in past and might treat the employees in the same manner, which can limit the organization to function in the desired manner. On the other hand, the experience can even guide the entrepreneur to guide the employees in the required manner, which can aid the business to perform their best and to coordinate. As for this case study, the owner of the business was having proper education regarding what she was doing. This aided her to develop their products in the desired manner and her educational knowledge has helped her in marketing for their business in the best way. This allowed her to develop their business in a unique manner (Love and Roper, 2015). This has helped her in flourishing and sustaining their business in the industry. This shows that background never matters that much if it comes to skill development. Yes, the background can provide the support for funding and sources of promotion very easily, which is a drawback that an individual faces who do not have that support. Other than this, experience and skills are the essential elements that an individual must possess to develop and to tackle the odds of the startup business.
In the current scenario, Steph Croft-Simons has launched Nom Popcorn in 2015. She has taken different dimensions of marketing approach through implicating her positive attributes, which are prioritized on both consumer perception as well as organizational profit. In this case, the entrepreneurial characteristics are not inborn. She had taken standard business objectives for achieving the target business vision. She has displayed a perfect example of different characteristic traits to identify the gap in market performances. The owner has not only applied her skill to stable the market but also she has taken initiatives through recognizing possible business outcomes. In this landscape, motivational characteristics are important to foster a sustainable workplace. As commented by Li and Rama (2015), without the support of employees, an organization cannot maintain standard performances. In this case, Croft-Simon has maintained these fundamental requirements. On the other hand, a risk-driven approach has been applied properly by her. Over the last years, the popcorn market has not gained positive growth as per expectation. In this case, she had taken a sincere attribute on market research for understanding the risk in upcoming business performances. Therefore, these skills are the primitive factor in regards to business success.
It can be deduced that entrepreneurial traits have a positive role to recognise the gap in business performance as per the committed objectives. The entrepreneur of Nom Food has developed a positive standard based on personal attributes and skills, which is required to maintain a strategic mindset.
As per the gathered information of the study, the chosen organization has a small structure and the organization is following the needed entrepreneur strategies to grow and sustain its business in the market of the UK. The chosen organization and the owner of the business have the needed characteristics, which has helped the business to flourish within the chosen market. The development of the product is another expertise that the owner of the firm holds, which allows the business to process their business activities in the needed approach. The skills and characteristics of the entrepreneur have guided the business process and have helped in meeting the decided goals and objectives.
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