Characteristic traits and skills of successful entrepreneurs

4 P3 The impact of small business on the economy of the country.6 P4 Importance of small businesses and business start-ups to the growth of the social economy. 8 P6 How aspects of entrepreneurial personality reflects entrepreneurial motivational 10 P7 Background and experience effect on entrepreneur skills.11 CONCLUSION 1 REFERENCES 3 INTRODUCTION Entrepreneurship is the process of creating a new enterprise by an individual using their innovative skills and knowledge, taking risks in order to maximize their profits. There exists

Assignment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Different types of Entrepreneurial ventures and how they relate towards Entrepreneur's
typology.......................................................................................................................................3
P2 Similarities and differences between entrepreneurial ventures............................................4
P3 The impact of small business on the economy of the country...............................................6
P4 Importance of small businesses and business start-ups to the growth of the social economy.
.....................................................................................................................................................7
P5 Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers............................................................................................8
P6 How aspects of entrepreneurial personality reflects entrepreneurial motivational..............10
P7 Background and experience effect on entrepreneur skills...................................................11
CONCLUSION................................................................................................................................1
REFERENCES................................................................................................................................3

INTRODUCTION
Entrepreneurship is the process of creating a new enterprise by an individual using their
innovative skills and knowledge, taking risks in order to maximize their profits. It also involves
arranging of inputs like land, labour, capital and entrepreneurship in order to develop a product
or service accordingly. There exists different types of Entrepreneurial ventures like Large scale,
scalable and small scale business that the report will include namely Mckinsey & company,
Beales and Nom Foods respectively. Mckinsey & company is an American Management
consultancy firm that was established in 1926 by James Mckinsey and the company has spread
its operations all around the world and provides employment to more than 27,000 employees all
around the world. On the other hand, Beales is an English department store chain that operates in
the United Kingdom ad was founded in the year 1881 by John Beale. Lastly, Nom Foods is a UK
based local health and nutrition company that was founded by Steph Croft Simont in 2013. The
current study will highlight a comparison between different types of entrepreneurial ventures and
their contribution towards the growth and development of nation's economy.
MAIN BODY
P1 Different types of Entrepreneurial ventures and how they relate towards Entrepreneur's
typology.
Entrepreneurship is concerned with the process of launching, developing and running a business
venture by doing innovation and taking risks is called entrepreneurship. There exists different
types of Entrepreneurial ventures like:
 Small business Entrepreneurship: Small scale business are the most commonly formed
businesses all around the world. In the United Kingdom, there are 5.7 million small scale
organizations that contribute towards 99% of all the businesses. The small enterprises
operate in very few places with minimum number of employees. These firms lack
innovation because of low capital funds for the research and development purposes.
Beales is a prime example of small business entrepreneurship as the store operates in just
22 locations with 450 employees.
 Scalable start-up Entrepreneurship: These type of businesses focus on innovation and use
their skills to develop a unique product, The focus of start-up entrepreneurship is to
identify the problems of customers and then develop a product/ service accordingly. The
entrepreneurs also receive initial funding from venture capitalists which helps in the
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future growth and profit maximization of the business. For instance, Nom Foods is a
scalable start-up as the company provides healthy food that provides adequate nutrition
and energy to the human body. The business received an initial funding from Crowd
cube, a British investment company which has helped Nom foods in diversifying its
operations and increased their profits significantly.
 Large company Entrepreneurship: The large scale companies focus on providing unique
products and services to its customers by indulging in continuous research and
development to produce an innovative product that helps in increasing the growth and
profitability of business. For instance, Mckinsey & company provides various services to
its customers like management consulting, financial consulting and investment decision-
making (Storey, 2016).
Entrepreneurial typologies:
 Entrepreneurial: The entrepreneurial typology is concerned with an individual taking
risks and using the innovative skills to develop a product or service that creates value for
customers. Scalable companies like Nom Foods can be related with entrepreneurial
typology,
 Intrapreneurship: The Intrapreneurship is an entrepreneur in a big organization. These
individuals are self-motivated, pro-active and action oriented individuals who easily take
decisions. These individuals are not afraid of failure and are always ready to take risks
and learn from the failure. Mckinsey & company is an example of Intrapreneurship as the
company operates on a large scale and is not afraid of taking risks and try innovative
things.
 Managerial: Managerial includes the employees within an organization that takes
decision for the organization and these people have entrepreneurial skills within them.
They contribute towards the decision-making in the organization and motivates, guide
and supervises other employees to work efficiently and effectively for the achievement of
organizational goals and objectives.
M1 Public and Private sector entrepreneurship
Public entrepreneurship- It is defined as those businesses which are partially or fully owned
and controlled by public authority or state. The government possess all rights on providing
directions to business for making effective decisions. There are few business which are involved
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in ownership of public for societal benefits. For instance national audit commission and
telecommunications.
Private entrepreneurship- It is defined as those business which is operating through helps of
commercial firms, people and others. They are not controlled or owned by central or state
government. For example, hospitality, retail, food leisure and so on.
P2 Similarities and differences between entrepreneurial ventures.
Differences Small-business-
entrepreneurship
Scalable start-up
entrepreneurship
Large company
entrepreneurship
Goals and Objectives The Beales company
does not have
specified goals and
objectives which
further reduces the
company' growth
prospects due to lack
of clarity.
The Nom foods, a
scalable start-up
enterprise offers
innovative and unique
products and services
to increase the
profitability of the
organization and thus
achieving the goals
and objectives.
Mckinsey& company
has set up SMART
(specific, measurable,
attainable, reliable and
time bound) goals and
objectives in order to
achieve them
effectively. Also, the
company then
compares the actual
performance with the
standard performance
in order to take
corrective actions.
Risk Although, the level of
risk is comparatively
lower but Beales faces
competition from
various players in the
market which affects
their growth prospects.
The risks are high
because the company
develops a unique
product and service
which have equal
chances of being a
success or failure.
Therefore, there exists
The risks are not that
high because the large
businesses often
manager to cover their
costs by selling huge
volume of products
and services.
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high level of risk.
Employees Although, being a
small scale business
the company provides
employment to around
450 people.
Nom Foods provide
employment to more
than 200 employees in
their organization.
Mckinsey & company
provides employment
to more than 27,000
people all around the
world.
Similarities:
There exists a similarity between all the three companies that all these organizations have
initiated with a unique concept which has contributed to their success and profitability. All the
three companies have identified the needs and wants of consumers, initiated an idea and then
developed the products and services accordingly.
Diverse range of Entrepreneurial ventures:
Public sector: The public sector organizations are controlled by government directly or
indirectly. The government invest huge funds into the growth and development of these
companies and the private sector companies provide strategic help to them. The public sector
enterprises focus on providing good quality products and services to its customers and also focus
on social welfare and development rather than profit maximization. The National health services
is an example of public sector enterprises that provides free health care and medical facilities to
the people of UK.
Corporate sector: The corporate sector are owned and managed by private entrepreneurs and it
focuses on providing good quality products and services to its customers in order to increase the
brand image of the business and maximize their profits. Mckinsey and company, Nom Foods and
the Beales are private sector companies that work with the sole objective of earning profits.
P3 The impact of small business on the economy of the country.
Small business are the crucial part of UK's economy because these businesses drive
growth, open new markets an also generates employment therefore there contribution is vital.
These business encourage innovation, competition and generate new ideas. It also helps in
improving the standard of living of people in the country by providing them good quality
products at competitive prices. In the view point of Burns, (2016) there are 5.4 million
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registered business in the UK, out of which 99.9% businesses fall under the category of small-
business.
 Turnover: In the view point of Burns, (2016) small and medium-sized business
contributed a combined turnover of total 2 trillion pounds in the year 2018. Also, the total
turnover amounts up to 52% of private sector's total turnover.
 Employment: According to Staniewski, Janowski,and Awruk, (2016) the SME'S also
provide employment to 16.3 million people in the United Kingdom that accounts for
60% of all private sector employment. It includes both self-employed individuals and
small companies that provide employment to people.
 Growth: The SME'S have witnessed a huge growth rate in the UK and is said to grow
even further at a rate of 50%. Also, among the Small businesses, the manufacturing
business seems to be the most confident in regard to growth and profitability aspects.
Also, according to Singh, (2015) the UK government is planning to invest 725 million pounds in
research and development regarding the growth and development of small scale industry. The
use of artificial intelligence and automated technologies will help in boosting the business of the
industry as the companies will be able to make strategic decisions and thus contribute towards
the improved economy of United Kingdom.
According to the research, it has also been identified that currently only one in five
SME'S are exporters and with the increased investment by government in the small business
industry, it has been estimated that there can be a rise in exporting firms by 9 and 12 percentage.
Further improvements in the exporting industry would alone add 1.15 billion pounds to annual
gross value added. Thus, it can be said that the Small scale business are the backbone of UK's
economy therefore it is imperative for the government to continuously improve the condition of
small scale industry as it would significantly contribute towards the economy of the country.
M2 Differences between small, medium and large businesses
It is evident that small, medium and large businesses contribute to economy in their own distinct
manner. Below is an illustration stating the contribution of businesses the economy.
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Source: Merchant Savvy, 2019
Interpretation: More than 99% of the businesses in UK belong to SME sector and their
contribution to the economy is significant. However their contribution to the employment is not
huge as most of the businesses encompass less than 50 employees. Medium enterprises in the
country carry a share of 12.6 in the employment and 15.4 in context of turnover which is decent.
There could be a higher share of businesses operating at medium level. Whereas large businesses
are few in number but carries a substantial share of 48.4 in turnover of the nation. The share of
employment which has been offered by large enterprises is 39.8% which is continuously falling
due to Brexit.
P4 Importance of small businesses and business start-ups to the growth of the social economy.
The social economy is based on co-operative, not for profit and voluntary rather than paid
activities carried out within different communities nationally and internationally. The small
businesses contribute towards the development and growth of social economy by providing good
quality products and services to the public thus improving their overall standard of living. Also,
the startup businesses use their innovative and creative development skills to develop a product
or service that helps in solving the problems of the public and thus makes their lives better.
Moreover, in the view point of Ravanfar, (2015) small startups and businesses also generate a
lot of employment opportunities in for the under developed section of society as they cannot
afford to hire high-skilled and motivated employees thus less skilled employees are hired and it
contributes towards balanced regional development and further makes them more efficient and
effective in performing the duties. Nom Foods and Beales provide employment to under skilled
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employees but with proper training and development, employee's productivity to perform the job
improves. Also, incentives and rewards are provided to employees so that they work with
complete concentration.
Although, the majority of the economy of the UK comprises small and medium scale
enterprises but the total revenue provided by large scale companies is much higher as these
companies provide a wide range of products and services to its customers and also manufacture
and sell their goods internationally. The exports also helps in bringing the foreign currency into
the country thus boosting the economy of the country. The large scale companies also spend high
amount of money on CSR activities which helps in the welfare of society in which the business
operates. Also, the large scale companies provide products at a competitive price by achieving
economies of scale which has helped them in maximizing the revenue. Mckinsey & Company is
located at 127 places and has more than 100,000 clients globally thus it contributes heavily
towards a country's economy.
P5 Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers.
An Entrepreneur is a person that transforms an idea into reality by grabbing the opportunity and
converting a suitable product or service from it by making use of resources available to him
whereas business managers are the individuals in the company that guides, supervises and
motivates the employees to work harder for the achievement of goals and objectives effectively
and efficiently.
The major character traits and skills that distinguish entrepreneurs and business managers are:
Basis Entrepreneurs Managers
Focus The major focus of
entrepreneurs is to solve a
problem by developing a
product/service and by setting
up their own business.
The major focus of managers
is to manager the ongoing
operations of an organization
by using their management
skills efficiently and
effectively.
Risk taking The Entrepreneurs have an
inherited attitude when it
The managers are risk averse
because they do not have the
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comes to risk taking as they
believe that it will help them in
retrieving their creativity and
innovation and also they can
learn better from the risks
taken by them (O’Mahoney,
and Sturdy, 2016).
authority to take risks on
behalf of the organization.
Also, most managers preserve
the integrity of the
organization by avoid taking
risks.
Decision making The entrepreneurs take
majority of their business
decisions by following their
gut feelings and intuition.
Also, these decisions are
calculated and analysed in
advance and can have a both
positive and negative impact
on the growth of organization.
The Entrepreneur takes
complete responsibility of the
decisions made by him.
The managers do not have the
power to take big decisions
related to the growth of the
organization. Although, they
take small level decisions
within the operations of the
organization (Miller, 2015).
Character skills and traits of Entrepreneurs are:
 Risk taking: It is the duty of an Entrepreneur to incessantly take risks as it would help in
the growth and development of the entire organization. Also, successful implementation
of risks increases the level of confidence of Entrepreneurs and increases their motivation
to achieve the goals and objectives. The founder of Nom Foods, Steph Croft Simont, took
the risk of developing healthy and nutritional food that includes only natural ingredients
and does not include sugar. The major risk was the acceptance of food products and its
taste. Successful implementation of risk helped in the growth and success of the
company. The Entrepreneur must take calculated risks otherwise it would hamper the
overall profitability and growth of the organization (Kirzner, 2015).
 Innovation: The Entrepreneurs always believe in the process of innovation and creativity
to develop a product or service. Innovation also helps in distinguishing a product or
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service from the rest of the players in the industry and thus gives the company a
competitive advantage. For instance, with the introduction of Tesla in the automotive
industry, the sales of other companies have gone down because Tesla is an innovative
product that runs on batteries rather than petrol or diesel. The unique innovation by Elon
Musk contributed towards the success of their car and further enhanced their brand
image. Although, innovation is important but it must be done by identifying the needs
and wants of consumers and analysing whether the innovation is important for customers
or not. Sometimes, unnecessary innovation can also cause losses to the organization as
consumers will not buy the product if they do not feel the need for it.
 Decision making: The most important trait of an Entrepreneur is decision-making as it
can lead to success or failure of the organization. The future of the company is dependent
on the decision taken by the entrepreneur. The decisions must be taken keeping in mind
various factors like optimum utilization of resources, time and cost factors. The founder
of Beales departmental store take decisions by considering all the elements as it increases
the authenticity and reliability of decisions (Hindley, 2016).
P6 How aspects of entrepreneurial personality reflects entrepreneurial motivational
Entrepreneurs possess different personality which leads them to motivation in their career and
become successful. They possess different personality from their parents, some entrepreneurial
personality are as follows:
 Passion: Entrepreneurs are not afraid of hard work as they are focused in achieving their
dreams and vision. They do what they love thus, they do not give up when any challenges
arise. Passion keeps them motivated towards their dreams and achieve success. Owner of
NOM foods was also passionate towards their dreams which keep them motivated in
driving success in its business (Hillary, 2017).
 Optimism: Owner of McKinsey & company is an optimistic personality and is self-
motivated and dedicated towards their work. They also motivate their colleagues by
communicating their dreams and inspire people.
 Creativity: Creative personality always look for doing something different and better.
Beales company owner is creative and has come up with online store, they always want to
change the world with their new and creative ideas. If an individual possess more
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creativity then an individual will be motivated and try to innovate products and services
to satisfy customers.
 Risk Takers: Failure and uncertainty does not stop them to take risk instead they are
motivate to face challenges and problems which come in between their goals. In order to
earn return on investment they take risks (Burns, 2016).
M3 Arguments related to entrepreneurial characteristics
 Passion: Establishing a business takes a lot of efforts, hard work, time and passion to
achieve an individuals goals.
 Optimism: Entrepreneurs are optimistic about future, and they vision for long term. They
do not think about the unsuccessfulness of the business instead they are always motivated
towards achieving their goals and communicate their vision with others to make them
understand their roles and responsibilities to meet success.
 Creativity: Entrepreneurs think differently i.e. out of box and create big ideas through
their creative thinking.
 Risk takers: Most of the entrepreneurs are risk-taking personality, to start their own
enterprise they take risk and implement new ideas to be successful in their business.
P7 Background and experience effect on entrepreneur skills.
The background experience does play a strong role in developing entrepreneurial skills
from a very young age. The current study will include the story of Steph Croft Simont founder of
Nom Foods. The positive impact of past experience was:
During her University days, Steph found out that she was allergic to packaged and junk
foods which led to various problems as her eating schedule got disturbed completely. Steph
started cooking food by herself in order to avoid allergies and other health related problems
which made her realize that there might be other people suffering from the same allergies.
Therefore, she decided to cook the food by herself and some positive reviews from friends and
family led to the discovery of Nom Foods. The food company was an instant success and just
after few days of its launch, the products were sold by Planet Organic and Whole foods. Steph
Croft still innovates some new food product and keeps on experimenting which keeps the
audience curious and has helped in increasing the brand image of the company.
Also, there have been various experiences where the past experiences have played a
negative impact on the Entrepreneurial skills. The owner of Beales departmental store John
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Beales has always been afraid to take risks because of certain poor experiences. Therefore, after
opening of Beales, John failed to take effective risks that could have contributed towards the
growth of the company which resulted in it becoming a medium scale organisation.
M4 Link between entrepreneurial characteristics and personal background.
The ability to identify the problem and convert it into a business opportunity made Steph
a successful Entrepreneur and her background played a crucial role in this successful journey.
Despite being ill, she utilised that time of her life in developing an innovative idea and thus
turned a negative event into a positive one. Similarly, John took a negative impact of his
background and failed to take into consideration effective risks which could have helped him in
succeeding.
CONCLUSION
From the above study, it can be concluded that Entrepreneurship is a natural skill as it
involves various factors like decision-making, risk taking and continuous innovation. The
Entrepreneurial ventures can be of all sizes like small, scalable start-ups and large scale
organizations. Also, the small business has a strong impact on the UK'S economy as it
contributes towards 99.99% of the total business of the country. Also, it generates huge
employment opportunities and further improves the quality of life of people. Thus, it can be
stated that Entrepreneurship requires a combination of different skills which if used effectively
and efficiently, can contribute towards the achievement of goals and objectives of the
organization.
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REFERENCES
Books and Journals:
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Hillary, R., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Hindley, B., 2016. Economics and small enterprises. Small Business: Theory and Policy, p.42.
Kirzner, I.M., 2015. Competition and entrepreneurship. University of Chicago press.
Miller, D., 2015. A downside to the entrepreneurial personality?.
O’Mahoney, J. and Sturdy, A., 2016. Power and the diffusion of management ideas: The case of
McKinsey & Co. Management Learning, 47(3), pp.247-265.
Ravanfar, M.M., 2015. Analyzing Organizational Structure based on 7s model of McKinsey.
Global Journal of Management And Business Research.
Singh, K., 2015. Marketing policies and practices of medium and large scale enterprises a
comparative study of Punjab and Haryana.
Staniewski, M.W., Janowski, K. and Awruk, K., 2016. Entrepreneurial personality dispositions
and selected indicators of company functioning. Journal of Business Research, 69(5),
pp.1939-1943.
Storey, D.J., 2016. Understanding the small business sector. Routledge.
Online:
. 2019. [Online] Available Through <>
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