Introduction
Entrepreneurship is the way to develop new business by identifying different risks associated with financial and other management problems. Entrepreneurial ventures can have various ownership structures or entrepreneurs have certain capabilities and skills to formulate business functions. Also, the experience and background develop a major effect on entrepreneurship that can increase and improves the activities of the company. The report is based on Instacart Inc. which is a leading grocery delivery services in the United States in the year 2012. The company was established by Apoorva Mehta and his two friends, Max Mullen and Brandon Leonardo.
The main purpose of this assignment is to analyze various forms of entrepreneurs’ ventures and examine the relation with typologies. In addition to this, skills and mindset are necessary for a person at the time of start-up business which is discussed along with concentrate on methods of experience and personal background that are direct influences on new business.
Task 1
What does an entrepreneur v / s intrapreneur is and, why becomes an entrepreneur
An entrepreneur is an individual who develops new business and bears the various risk and enjoying several rewards or awards. The entrepreneur is mainly seen as an innovator, creator, and thinker, develop new ideas, and manage business procedures (Acs, et. al., 2017).
| Basis | Entrepreneur | Intrapreneur |
| Meaning | It refers to a person who is developing his own business along with new concepts and thoughts. | This is defined as an employee of a company that is responsible for undertaking innovation in introducing goods, services, and processes. |
| Resources | Entrepreneur use own resources | Use resources are given by an organization |
| Capital | Income will be increased by the entrepreneur | Financed by business |
| Approach | Intuitive | Restorative |
| Enterprise | Newly developed company | Current business |
| Dependency | Independent | Dependent |
| Work for | Developing a leading place in the large market area | Alter and renew the current business system and its culture |
Some individuals become entrepreneurs as they observed that it is compulsory for their career growth. Such a person’s previous knowledge and experience in the job market in education make them realize that working for another company is not fit for their character and skills. Entrepreneurs are mainly driven by the requirement to gain success and control their journey according to their needs (Barba-Sánchez, et. al., 2018).
Characteristics and attributes of an entrepreneur
The entrepreneur has various skills and abilities which lead them towards higher success and growth level. For this, they only need to choose the right direction for increasing their company’s goodwill.
| Successful entrepreneur | Unsuccessful entrepreneur |
| Develop an effective strategic plan | Creates a sugar coated plan |
| Mainly concerned on the return of investment | Mainly focus on the cost of investment |
| Take responsibility for their failure | Blame others for the business failure situation |
| Provide due credits to others | Claim all the credits and brag about them |
| Consider alteration as an opportunity | Consider changes as an issue |
| Already prepare for failure when success comes | Celebrate success more when it comes to growth |
Different types of entrepreneurship drawing attention to their similarities and differences
| Different entrepreneurship | Similarities | Differences |
| Scalable business | In this, the main purpose of the entrepreneur is to gain huge income and increase customer satisfaction by offering quality based goods and services to customers. | These entrepreneurs are taking funds and investment money from their friends or family which are too risky. |
| Small business | The main purpose of this type of entrepreneur is to acquire income and enhancing profitability by gaining the attention of buyers. | This has limited market control and they have to gain required funds. The profit margin is lower and low development chances. |
| Large businesses | The main motive of this entrepreneur is to attain the necessary revenue and concentrate on customer satisfaction levels (Block, et. al., 2018). | These forms of entrepreneurs have a wide expansion of the entire marketplace and reach the global level of customers by using the latest technology. |
| Social businesses | In this, the entrepreneur focuses on giving necessary help and supports the country people. They are performing work for improving people’s living standards. | The main motive of this entrepreneur is not to gain income and they are giving help to community people. |
Show entrepreneurship in private and public enterprises with some examples
Private enterprise defines the enterprise regulated, controlled, and managed by a private person. The major motive of this enterprise is to gain huge profits and income. For example, clothing boutique, ICICI bank, grocery shop and so more.
Public enterprise refers to such enterprise which is managed, owned, and managed by the government and its entities (Doern, 2016). Its main goal is to deliver services to the society people. For example, telecommunication, transportation companies, airlines, etc.
Role of SMEs (micro, small and medium enterprises) and characteristics of SMEs
The role of SME is to make sure that facts and information are correct so that the project deliverables may achieve the needs and requirements of the company stakeholders, standards, policies, laws, and practices in a better manner.
Micro: It is a small business that sells its goods and services to the local areas. Less than 10 employees are working in this enterprise.
Small: It is that enterprise in which investment in plant and machinery is more than 25 lakh but it does not exceed 5 crores.
Medium: It is such an enterprise where the investment of money in machinery and plant is more than 5 crore and not exceed 10 crores.
Characteristics of SMEs:
The small and medium enterprise mainly has limited resources. This is highly true for a new start-up business due to the lack of monitoring and checking the records on the company to entire desired investors and bankers (Hassan, et. al., 2015). There are various features of SMEs that are described as follows:
- Smaller teams of worker
- Lower-income and profitability
- Limited area of some locations
- Small market places
- Sole businesses
Task 2
Define creativity & innovation and the importance of creativity & innovation
Innovation is such a procedure that turns the new concept into commercial success and whole usage. The invention is the development of new concepts and ideas. It is also an essential concern for the business and its main role is to develop and coordinate with the market area. Innovation in all individual areas applies to goods development, methods of management, method of doing work, and many more (Kibler, et. al., 2015).
Creativity is that action that converts new and imaginative ideas and opinions into reality. It is important for a business that assists in managing business operations. Creativity assists in improving the key skills and abilities of an individual. It is analyzed that a person who has creative people can live with uncertainty as they can adapt their thinking to allow for continuous flow of information.
Explain these three main areas to protect and how to protect their image
- Brand name and logo: It is an important aspect of the product in which the company needs to use the creative brand name and its logo which attracts a large number of customers towards their organization’s products or services. The logo and brand name are required factors that assist in protecting any company image in a large marketplace.
- Patents: This is also an essential element as it assists in safeguard and keeps secure any business invention from others. It can protect any goods, design, and procedure which can easily achieve their certain specification as per its originality, suitability, reliability, and utility in a better manner (Koryak, et. al., 2015). In most of the cases analyzed that, any patent can be protected as an invention for up to 20 years.
- Design registration: This is one of the required factors which should be focused on the company. It helps in enhancing the market responsiveness of a commodity and also increasing the goodwill of a firm in the market area. It assists in improving product competitiveness as it denies their third parties from stealing a registered design.
Contribution of SMEs in the UK economy
This has been observed that in each sector, small and micro business capture higher section and contributes to the UK economic growth rate. In the United Kingdom, there is a various small business that enhanced their services in different industries and around 4.5 million SMEs are established in all the over the UK that is 99% of all businesses in this country (Kozubíková, et. al., 2015). It is indicated that revenue is regulated and generated by these companies which have contributed to the GDP growth of the UK. In such businesses, around 96% of businesses are generally considered as micro firms in which approximately 0-9 workers are employed. These businesses are providing more than 33% of job employment to the people and around 22% in total turnover rate.
Figure 1: Various business-sized businesses in UK, 2019
(Source: Various business-sized businesses in UK, 2019)
As per the above graph, it is analyzed that there are different small and micro businesses which are gain higher growth as compared to the medium and large levels of businesses in the UK. This is also observed that both small and micro business increases the amount by 37% of the total turnover rate and it gives around 47% of job opportunities in the United Kingdom.
Importance of start-ups and social enterprise
Both the startups and social enterprises are generally contributed and acquire economic and social level according to the characteristics of company functions or operations. The start-up business mainly concentrates on adopting the latest and new technology and develops creative products for gaining higher growth. Such businesses are mainly agile and capable to form an effective idea into a commodity and improving it as per the demand of customers. It is analyzed that start-up may be a small sector but they are playing an important role in contributing share to the country’s economy (Kuratko, et. al., 2018). They also create job opportunities and improving the current situation of the nation. They help in improving the job patterns and gives job chances to both professional and experienced individuals. Small businesses are essential in the UK as it provides great opportunities for the entrepreneur and develops different jobs for people. They foster local economies, keep the amount to home, and helps their societies as well.
A social enterprise is important because it assists in gaining huge income and identifying success while supporting others over the world. The main motive of such an enterprise is to motivate, encourage, and develop social changes in the communities. These businesses are developed to support people on a financial basis, they provide revenue generation opportunities that help to meet poor people’s basic needs or requirements.
Advantages and disadvantages of small and medium enterprises to the UK economy
Advantages:
SMEs help in generating huge levels of job opportunities all over the UK. They assist in developing group abilities and skills among employees so they can help them in future work and other activities. The stability of the United Kingdom mainly relies on low unemployment rates (Kuratko, et. al., 2015).
Disadvantages:
The main issue of the small and medium enterprises is that they face a lack of financial support at the beginning of the business, poor managerial skills or abilities, inappropriate legal laws and frameworks, poor infrastructure, increasing inflation rates, and huge competition, and many more.
Task 3
Explain briefly the entrepreneur characteristics and skills
An entrepreneur is a person who starts a new business, enjoying the profits and bearing major risks in the process. The entrepreneurs become successful by taking major risks in the start-up process where they are rewarded with benefits, growth, fame and opportunities in the market place (McGowan, et. al., 2015).
Characteristics
There are various characteristics for the entrepreneurship which are highly useful in the business functioning.
Decisive – this leadership characteristic should be present in entrepreneurs as it provides the ability to balance the costs for the process of collection of information and decision making. This skill provides awareness for competing costs which makes the decisive leader.
Risk-taking– the risk-taking characteristics in the entrepreneur will motivate them to step out from their comfort zones and recognizing success and failure which are necessary for the growth of a business (Ratten, 2016).
Confident– entrepreneurs should be a confidant of their decisions and actions which will benefit them in the various business activities as confidence is the important skill for leaders.
Willingness – willingness in acting according to the innovative ideas and creative working for the success of the business plan is a very important skill in leaders.
Innovative – leaders should be innovative which will enhance the range of opportunities for the business field in the market place. The innovation skills will provide more chances for growth and development as the entrepreneurs are known for the innovative ideas and decisions they take for success in the market.
Enterprising – this is the skill which provides the abilities to do things creatively and makes them successful in the business field. The enterprising is very important for entrepreneurship leaders.
Skills
Curiosity– Curiosity is an important skill for entrepreneurs as curiosity increases the range of opportunities in the market place. Curiosity in leaders will enhance the chances for innovative ideas and creativity in working style for growth and development.
Time management – time management is a challenging skill which should be present in leaders as success is based on the time management of the work.
Efficiency – work efficiency should be present in leaders as it increases the demand for business in the market due to the effectiveness of work in business activities.
Strategic thinking –strategic thinking involves the creation of strategies for better performance and process which will be more effective and efficient for the working policies.
Resilience & communication – resilience and communication are important for the entrepreneurs as it will provide the ability to adapt in the different course of action for business stability and progress. Communication skills should be present in the leader as it helps in gaining various kinds of advantages in business fields for the growth and development of the start-up (Rey-Martí, et. al., 2015). The communication will provide the various opportunities on global levels for the business activities to develop on greater ranges.
Difference between manager and entrepreneur
| Manager | Entrepreneur |
| An employee of an organisation works for a salary does not bear any risks. | Owner of the business, who bears financial and other risks. |
| Focus on the smooth functioning of the business. | Focus on starting and expanding business |
| Motivation comes from position ranking. | Motivation comes from achievements. |
| The approach is formal in business issues. | The approach can be information or casual. |
| Risk-averse | Risk-taker |
Explain briefly the personal entrepreneurial tendency
The personal entrepreneurial tendency is the natural tendency for responsiveness and innovation in business activities. Most of the entrepreneurs do not have the natural tendency in the organisation, systemizing of things and reproduction of results from the process which fails. The personal entrepreneurial tendency is very important for the entrepreneurs to be successful as these tendencies are very important for the successful implementation of the activities of a business in which innovation and responsiveness will be used for the start-up program (Spence, et. al., 2016). The personal entrepreneurial tendency includes the various kinds of skills and characteristics which are important for the running of the business in the competitive market place.
Explain how an entrepreneur, personality reflect its mindset and motivation
The personality of the entrepreneur is very important for the business functionality as it reflects the mindset and motivation of the owner. The mindset of the entrepreneur includes the group of skills which is used for the taking up of opportunities to overcoming of problems and issues and helps in the success of the business. The personality will reflect on the motivation of the person as the activities will be effective and efficient for the whole process. The entrepreneur will take the staff together with his personality and motivate them for the better mindset on terms of reflection of his personality among the business functionalities.
Task 4
Successful entrepreneur and environmental factors hinder or foster his business
Jeffrey Preston Bezos (or Jeff Bezos) is an American internet entrepreneur who is best known as the CEO of Amazon company. He was born in Albuquerque and raised in Houston and Miami. Bezos holds a degree in electrical engineering and computer science from Princeton University. He is an American who started Amazon in the mid-’90s which is now a leading e-commerce website which made Jeff Bezos, a leading entrepreneur in all over the world. Bezos is the wealthiest entrepreneur in all over the world due to the increasing use of the Amazon Company which provides the net worth of more than $200 billion on yearly basis.
How these factors contribute to his success
Jeff Bezos is the entrepreneur who worked hard for his targets and goals and achieved them with his good leadership skills and characteristics. He posses the most useful and impactful leadership and entrepreneur skill set which is the contributing factor to his success. The created the website retail services which are now serving their customers on a global platform. the factors such as creativity, innovation, motivation, decisiveness, communication, strategic thinking, time management, resilience, risk-taking, enterprising, confidence are the major contribution to his success in the current time (Staniewski, 2016). The entrepreneur skills and characteristics helped in overcoming the ups and downs to Bezos which resulted in the current outcomes of the company which is leading to global levels. These factors contributed to the success of the entrepreneur to achieve targeted goals and objectives.
Entrepreneur and risk
Rewards or benefits
Jeff Bezos enjoy a range of rewards and benefits as he is the CEO of the Amazon Company. He is the owner which provides him with the sense of satisfaction in his life as he builds his own company in which he receives the benefits of income without working for the bosses of other companies. The income is massive for the entrepreneur as he receives the most profits gained by the company. He can work on flexible hours as a reward of his own company in which no one can point him for his flexible working period. The rewards for the entrepreneur also includes getting fame and wealthy with good publicity and getting feedback from the customers who are satisfied with the services of the company. The various kinds of benefits will be provided for the owner as he will enjoy the most benefits of the company because he is the boss and everyone works under his surveillance. He just needs to manage the working culture and spent time on the upcoming interests of the company. There is a large number of employees work for Jeff Bezos who is the owner of the company and a well-known industrialist.
Explain briefly the risks that he may face and how he can address them.
The entrepreneur has to face the risks with the same responsibility in which they receive the rewards and benefits. There are various kinds of risks available for the entrepreneurs in which the major portion of the risks needs to be faced directly by the owner which is the entrepreneur Jeff Bezos in this scenario. Jeff Bezos need to sacrifice his long and erratic hours for the smooth functioning and enhancement of the performance of Amazon Company which is his responsibility as the owner. The unforeseen changes in the market environment can occur on sudden circumstances which can either adversely impact on the business functioning or the opposite. Either case, Jeff Bezos need to handle as he is responsible for financial or other kinds of risks just like for the benefits of the company. The lack of management experience can occur at some times which need to be held responsible for using the examples from the market place (Staniewski, 2016). The potential financial losses from the variation in a market situation also come in the pocket of the entrepreneur. These are some of the risks which need to be addressed by Jeff Bezos as his responsibility towards his business. These risks will affect mostly to the entrepreneur as the leader of the business. The entrepreneurship shows equality in the facing of benefits and risks for the owner of the business. There are no partial signs in which only benefits will be given, but risks also come on situations. The risks can be addressed using his leadership skills and characteristics which are important for the settlement of the risks factors.
Conclusion
From the above-described report, it is concluded that an entrepreneur is a person who has the ability and skill to perform effective work and reach the desired goals of the business. It is necessary for an entrepreneur is to focus on developing new ideas and creative thoughts that can assist them in smoothly run their business operations. The report discusses that small business can impact on UK economy that may create major influences on the job opportunities, GDP rates, innovative skills, local communities, and many more. An individual characteristic helps in showing their attitude towards another person and how they will treat others. There are various attributes and characteristics also described in this assignment along with identifying its background, culture, etc.
References
Acs, Z.J., Stam, E., Audretsch, D.B. and O’Connor, A., 2017. The lineages of the entrepreneurial ecosystem approach. Small Business Economics, 49(1), pp.1-10.
Barba-Sánchez, V. and Atienza-Sahuquillo, C., 2018. Entrepreneurial intention among engineering students: The role of entrepreneurship education. European Research on Management and Business Economics, 24(1), pp.53-61.
Block, J.H., Colombo, M.G., Cumming, D.J. and Vismara, S., 2018. New players in entrepreneurial finance and why they are there. Small Business Economics, 50(2), pp.239-250.
Doern, R., 2016. Entrepreneurship and crisis management: The experiences of small businesses during the London 2011 riots. International Small Business Journal, 34(3), pp.276-302.
Hassan, S., Ahmad Nadzim, S.Z. and Shiratuddin, N., 2015. Strategic use of social media for small business based on the AIDA model. Procedia-Social and Behavioral Sciences, 172, pp.262-269.
Kibler, E., Wainwright, T., Kautonen, T. and Blackburn, R., 2015. Can social exclusion against “older entrepreneurs” be managed?. Journal of Small Business Management, 53(sup1), pp.193-208.
Koryak, O., Mole, K.F., Lockett, A., Hayton, J.C., Ucbasaran, D. and Hodgkinson, G.P., 2015. Entrepreneurial leadership, capabilities and firm growth. International Small Business Journal, 33(1), pp.89-105.
Kozubíková, L., Belás, J., Bilan, Y. and Bartoš, P., 2015. Personal characteristics of entrepreneurs in the context of perception and management of business risk in the SME segment. Economics and Sociology.
Kuratko, D.F. and Morris, M.H., 2018. Examining the future trajectory of entrepreneurship. Journal of Small Business Management, 56(1), pp.11-23.
Kuratko, D.F., Morris, M.H. and Schindehutte, M., 2015. Understanding the dynamics of entrepreneurship through framework approaches. Small Business Economics, 45(1), pp.1-13.
McGowan, P., Cooper, S., Durkin, M. and O’kane, C., 2015. The influence of social and human capital in developing young women as entrepreneurial business leaders. Journal of Small Business Management, 53(3), pp.645-661.
Ratten, V., 2016. Female entrepreneurship and the role of customer knowledge development, innovation outcome expectations and culture on intentions to start informal business ventures. International Journal of Entrepreneurship and Small Business, 27(2-3), pp.262-272.
Rey-Martí, A., Porcar, A.T. and Mas-Tur, A., 2015. Linking female entrepreneurs’ motivation to business survival. Journal of business research, 68(4), pp.810-814.
Spence, L.J., 2016. Small business social responsibility: Expanding core CSR theory. Business & Society, 55(1), pp.23-55.
Staniewski, M.W., 2016. The contribution of business experience and knowledge to successful entrepreneurship. Journal of Business Research, 69(11), pp.5147-5152.