An entrepreneur does not work for an employer, runs a small venture and undertaking all the risks and rewards associated with the start-up. The entrepreneur is commonly known as the innovator, who is a source for new ideas, businesses, goods and services and also procedures. The entrepreneurs are known for playing the biggest role in the economy. These are key people who are known for having requisite skills to perform a given task. These people can measure the current and future needs and present ideas to the market. Entrepreneurs are known for taking risks into the markets and rewarded with continued opportunities. According to the economists, entrepreneurship is critical to the production process and other factors of production of being the capital, labor and resources. The entrepreneur must combine the resources to procure goods or services. The company needs to create the typical business plan, acquire resources and get into financing. The entrepreneur needs to take leadership as a responsibility and business management. Entrepreneurs are faced with different obstacles-hiring and retaining talent, obtaining the different sources of finance and overcoming bureaucracy. The concept of capital funding is very challenging and most of the entrepreneurs undergo bootstrapping. These entrepreneurs, finance the business through different methods like using the own money. The entrepreneurs are also focused on decreasing the labor costs, factoring receivables and minimizing inventory.
P1 Entrepreneurship Scope and Typology
The entrepreneurial spirit can be recognized and difficult to define. The entrepreneurship is a dynamic integration of 4 elements-
A comprehensive study has been done on the entrepreneurship typologies.
These are classified as under-
Based on the size, these can be classified as follows-
Similarities and Differences between Private, Public and Social Enterprises
The private and public sectors like the social enterprises work towards the enhancements of products and services on a continuous basis. There are certain dimensions of similarities and differences which exist in three types of entrepreneurship identified and these include-primary motives, accountability towards key stakeholders of the company, approach towards risk, failure orientation. Empirical efforts have been undertaken for the entrepreneurship definition in private and public sectors. Public sectors outsource the services through private sectors, comprising of the stabilized financial sources and highly bureaucratic in nature. This can reduce the likelihood of entrepreneurial spirit within the organization.
Most of the research work has been undertaken on the private entrepreneurship. This is mainly due to innovation and a new approach towards the business problems. Environmental complexity requires changing the firm’s strategy and organizational structure. The private and public enterprises must adapt themselves to increased complexity. Entrepreneurship is regarded as more complex process as it requires service innovation. As the environmental conditions may change, systematic entrepreneurship must be brought into the process. The public sector organizations can produce a superior organizational performance. The entrepreneurial activity develops through the positive rewards in the public sector and this is attributed to the recognition of an individual’s contribution within the different groups (Szerb, 2013).
Roles and Characteristics and Objectives of Private Enterprises
Roles and Characteristics and Objectives of Public Enterprises
Roles and Characteristics and Objectives of Social Enterprises
Similarities and Differences between Micro, Small and Medium Enterprises
A micro enterprise is a venture where the capital investment in plant and machinery is lesser than Rs.25 lakhs and Medium enterprise is an enterprise where the capital investment is more than Rs.5 crores but does not exceed Rs.10 crores. Small enterprises are non-subsidiary and independent firms which have less number of employees and this varies across different countries. Micro, Small and Medium enterprises engage in strategic alliances and partnerships maintain a strategic plan that includes partnerships. MSME’s Cater to the needs of the consumer and this mainly includes the supply chain integration. The foremost focus is on providing high quality products and effective service.
The MSME’s need to answer the following questions-If a customer provides multiyear contracts. The enterprises can engage in spot contracts, but this is good for small revenues and advantages of integrated supply chain can be maximum. The MSME (Micro, small and medium enterprises) should have the close business association and evaluation of employee’s interaction with suppliers is must. Whether the business documents and information has been shared between the customer and employers? This requires successful integration, which requires sharing of information across the different departments.
Roles and Characteristics and Objectives of Micro Enterprises
Roles and Characteristics and Objectives of small Enterprises
Roles and Characteristics and Objectives of Medium Enterprises
An overview of how the small and micro businesses have an impact on the economic growth and development of the country has been studied. The role of small and medium scale enterprises revolves around the formulation of government policies. The industrial plants are highly dependent on import and capital intensive. The impact of small and micro businesses can be felt in the following manner. The firms need to estimate the requirement of law materials and labors and mobilize the local savings. The small and micro businesses must engage in associations with larger industries. There is a higher provision for the regional balance and must provide opportunity for the employments to semi-skilled workers and training the managers. The developing countries are highly dependent on the risk taking factors of small and medium enterprises.
The MSME density must be in congruence with the income level distribution variables. The high income countries when compared with Sub-Saharan Africa are at two opposite ends. The Latin America is known to have more micro and small enterprises per 1,000 people. These countries have a high dependence on mineral resources. The number of micro and small enterprises per 1000 people has shown a positive increase from year 2000 to year 2009. The central Asia and Europe have experienced the biggest boom by 20 percent. This fast pace have been resulted due to the continuance of privatization in the economy. In the high- income generation economies, Micro and small enterprises have denser business structure, but employ the larger workforce. The formal enterprises have employed more than 45 percent of the labor force and this shows the positive economic development and job creativity. These variables highlight the significance of Micro and small enterprises to employ more than half of the global population and contributing to 35 percent employment opportunities in developing nations.
Start-ups are innovative and newly established ventures which have up to 10 employees. Start-ups are known to have the very informal structure and the association with SME’s is the prime motive. During the first five years of establishment, a venture can be considered as a start-up.
Startups have a direct relation to the economic diversity and job opportunities in the West. If there would have been no startups, there will be no net growth in jobs. The new and innovative technologies can create opportunities. A positive progress can eliminate the disruption process and create a competitive advantage to generate value. The small businesses and small startups are known to create the new communicative technologies and enhance the efficiencies. Just imagine the number of infinite apps which have dominated the old technologies around the globe. The market dominance is a positive variable which emerges with innovative products and consumer needs.
Employment Opportunities
India requires 5 million jobs every 6 months and large enterprises are unable to create the jobs. The role played by the startups is significant as these are the innovation centers. The economy must maintain the vitality, diligent and healthy environment and individual companies can attain the goals and objectives. Start-venture entrepreneurship is crucial and this brings competitive dynamics into the business world. The start-up company must implement the best possible functional model which is the best fit for its products and services in the market. The large corporations follow a disruptive route due to the answers to the number of stakeholders. The corporate governance and CSR are the two facets of any organizations which must be adhered to. A company’s director has a voice in the crucial decisions and management of the company.
The Agile Startups
The new ventures work in a changing environment and try to maximize the revenue through innovation. Startups are agile in nature and encourage forward linkages that can help in stimulation of economic development process. The startups can act as the changing catalytic agents and this result in the chain reaction. As soon as an enterprise has been established, the industrialization process to be set forward. This in turn generates demand for the products and services. This can be illustrated through the help of an example-At present, India has more than 2000 conventional handicraft groups ranging from various skills to wooden industries. This industry employs more than 15 percent of the total population.
The developed countries are looking for some of the ways through which untapped potential can be tapped from the markets. There are different countries which are taking initiatives to associate with Indian startups. The startups require huge foreign funds which can help in boosting the country growth. At present, India is home to more than 5000 startups and this will contribute to the generation of 2 lakh jobs every year. The developing nations have been launching campaigns which can facilitate the role of startups in an economy.
A successful entrepreneur has certain skills and traits which sets it apart from others. These are enumerated below-
The concept behind the reflection of entrepreneurial personality is relevant to situational understanding. The entrepreneurs need to have the understanding of opportunity recognition. Every entrepreneur has a different set of characteristics and the concept of being accurately ‘fit’ is largely dependent on the different key players. The strengths, shortcomings, benefits of a founder are taken into account. However, it must be noted there is no concept behind the existence of perfect entrepreneur. Significantly, there are growth minded entrepreneurs who possess the desirable characteristics. Opportunity recognition process within an individual personality is a cognitive construct that requires a behavioral pattern which may not be a trait.
The entrepreneurs operate with a given framework of time and this requires domain related information which enables the individual to identify the opportunities. What is an important quality of opportunity recognition? Most of the developments into entrepreneurship personality are theoretical. The entrepreneurs can optimize the resources. Entrepreneurial self-efficiency is an explanatory variable which determines the strength of an individual and how this will have an impact on the future course of actions. What is the association which exists between the behavior and intentions? In order to complete the actions as decided by intention, a behavior control is a must. This process is close to self-determination. These are beliefs which can be strengthened in different ways. The mastering of psychological state (Like emotional attachment) can enhance the reduced performance. Social learning has two variations-perceptions and attitudes and these must be resolved so as to have a brief concise of pursing the intended activities.
An entrepreneur interested into different skill areas like innovation, management, financial control and need to find answers to make high revenue at market. Entrepreneurs have demonstrated innovation and risk taking are two factors which need to be differentiated. The researchers are of the order which suggests Entrepreneurial self-efficiency requires potential and must also deal with the issues of instability. There are few complex issues which must be addressed when the association between the performance and Entrepreneurial self-efficiency is reviewed.
The Entrepreneurial self-efficiency is majorly affected through the Entrepreneurial performance. However, an enterprise may have models for testing the associations. A practical implication is to provide training to new entrepreneurs and what is the cognitive belief system of them. The researchers have studied the impact of the environment on Entrepreneurial self-efficiency. The industry has its own regrets and which are different from the non-entrepreneurs. Self –efficiency and perseverance are two variables which must be recognized with earned income and cost. The Income generated is one of the variables which decide the personal success. There are certain implications of the idea behind new entrepreneurs which respect for the principle of self-efficiency. The training must be provided to categorize entrepreneurial construct, especially when whole startup tenure is considered. The business management and entrepreneurship must be considered two different activities. An entrepreneur must reflect the difference while undertaking the management decisions and business decisions.
Entrepreneurship is influenced through the different variables. These are education, culture and technological development taking place within the society. The environmental conditions have a strong influence over the person’s background and this is directly proportional on hindering or fostering the entrepreneurship. The emergence of entrepreneurship can be termed as positive and requires consistent entrepreneurial growth. The Fostering of entrepreneurship is possible through the conducive and facilitate environmental conditions and this induces emergence of entrepreneurship. The negative influences include the inhibiting environmental resources and thereby hindering the process of entrepreneurship.
People who are traditionally engaged in family businesses have an employee attitude and most of them fall outside the establishment. The present job market has the strong independence culture. The consumerism culture encourages entrepreneurship and develops the spirit of innovation.
When an entrepreneur starts a new business, he or she is not aware of the duration the business will take to turn into profitability. Due to the fluctuations in the economy and consumer trends can have a lot of impetus to the business as a whole. When starting the new business, the industry experience is must. Long hours of work may be required to be done by the individuals and may not enjoy working in the disciplines which have new realms.
The reward associated with the startups includes the income. Costs must be controlled to a reasonable extent. The autonomy and security which are accompanied with the starting of a new business model is high. The entrepreneurship requires mastering the art of every discipline and striking a perfect balance between the objectives of the venture and government.
Conclusion
Planning an entrepreneurial business will provide you with all the rewards that a successful entrepreneur is searching for. The mitigation of risk is possible by the evaluation of strategic alternatives. The entrepreneurship, business can succeed in next 5 years, but may have the original business model. The entrepreneurs need to focus on the independent business and build the long term and real value for money. The enterprise needs to be involved with retention of employees and resource optimization. If a start-up is able to generate the consistent income for a period of 5 years or more, and recover the original investment, then it can be a successful venture.
References
Agarwal, R. and Braguinsky, S. (2014). Industry Evolution and Entrepreneurship: Steven Klepper’s Contributions to Industrial Organization, Strategy, Technological Change, and Entrepreneurship. Strategic Entrepreneurship Journal, 9(4), pp.380-397.
Szerb, L. (2013). The Comparison of the Global Entrepreneurship Monitor and the Global Entrepreneurship and Development Index Methodologies. Foundations and Trends® in Entrepreneurship, 9(1), pp.1-142.
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