Entrepreneurship and Small Business Success

This assignment delves into the realm of entrepreneurship and explores its core principles. It examines the historical evolution of entrepreneurial thought, analyzes the impact of entrepreneurship on urban growth, and discusses how opportunity identification plays a crucial role in launching successful ventures. The importance of legitimizing entrepreneurial identities through narratives of failure is also highlighted. The assignment emphasizes the factors that contribute to small business success and concludes by examining the influence of entrepreneurial culture on regional development.

ENTREPRENEURSHIP
1

Table of Contents
Introduction......................................................................................................................................3
LO1: Explore and illustrate the range of venture types that might be considered entrepreneurial. 3
Anatomy of Ventures and their relationship (P1)............................................................................3
Conformities and Distinctions between entrepreneurial ventures (P2)...........................................4
LO2: Assess the impact of small businesses on the economy.........................................................5
The significance of Small enterprises on Economy (P3).................................................................5
Explanation of importance and contribution of small businesses and business start-ups to social
economic growth (P4)......................................................................................................................6
Task 3: LO3: Determination and assessment of key entrepreneurial mindset aspects....................8
Differences between successful entrepreneurs and other business managers (P5).........................8
Assessment of aspects of entrepreneurial personality (P6)...........................................................11
Task 4: Examination of different environments............................................................................13
Effects of experience and background in entrepreneurship (P7)...................................................13
Conclusion.....................................................................................................................................14
Reference List................................................................................................................................15
2

Introduction
Entrepreneurship is the part of taking new risk setting up a business. It is essential for economic
growth and development. Persons who think to start a new organization for independent work
must understand how to be a successful entrepreneur. Entrepreneurship includes taking the
proper initiative after making an environmental analysis to do something new in a competitive
environment. It enhances new business ventures that share a commitment to convert an idea into
a profitable business. It is also needed to know that for good entrepreneurship some techniques
should be known to reach the new customers correctly. Proper risk taking capacity can make an
entrepreneur successful. If high risk can be correctly implemented then higher rate of return is
assured.
LO1: Explore and illustrate the range of venture types that might be
considered entrepreneurial
Anatomy of Ventures and their relationship (P1)
Concept of entrepreneurship
Act of starting and setting up own business rather than working for others. They
encounter huge number of issue while setting up business. such issues salary of employees,
unavailability of resources and income generation issue etc. Entrepreneurship is termed as
3

launching a business which can help in generating employment for the country. There are four
types of entrepreneurship ventures which are as follows: Small scale entrepreneurship ventures: This type enterprise are small in size and are
generally in form of start ups . This kind of businesses are run by two or more more
person. Entrepreneur of this business hires local are people to provide them employment.
These businesses are usually run with aim of fulfilling own needs with revenue generated
revenue. Example of this entrepreneurship venture are : grocery stores, general stores,
small shops etc. Scalable entrepreneurship ventures : They are different fro small businesses. They start
a n enterprise with aim of making changes in world. They hire candidates which are best
suitable for their company. Bright and expert employees are hired by them. They get
funding for their business from big enterprises. They find out business models which is
scalable. Large entrepreneurship ventures : These business are long terms businesses. They
implement innovation in their products. Their major aim is lead the competitive market
by making enhancements in products. They make product to satisfy needs of customers
which in turn helps them in generating more revenue.
 Social entrepreneurship : This kind of enterprise are run to fulfill social need of local
community people. their major objective is to provide product and services which can
help local are people in their livelihood. These ventures are non profitable in nature.
Example of thes venture are NGO, voluntary organizations.
Entrepreneur generally gets engage in small scale business because there is low risk in this kind
of businesses. In this people generally initiates start up business. start up are opened with the aim
of getting revenue which can help them to bear their livelihood.
Scope and typology of entrepreneurship:
 It is impulsive and helps in generating employment for people.
 innovation is required in entrepreneurship to lead the market.
 There is always a risk in this business. It requires patience in any entrepreneur to
get revenue from businesses.
4

Serial entrepreneur : This type of entrepreneur always gives new ideas and works with aim to
create new businesses. They comes up with innovative ideas that are needed for nay venture to
increase its revenue.
Female entrepreneur: These are women entrepreneur who start small business to by adopting
innovative ideas. Example founder of green goddess Miss Melissa Wells.
Social entrepreneur : These are the entrepreneur who use innovative ideas to help the
community people in their livelihood. Example : Chalpeltown Baths & community business.
P 2
Similarities and difference between different entrepreneurship ventures
Difference and similarities between type of entrepreneurship ventures :
Small
entrepreneurship
ventures
Scalable
entrepreneurship
ventures
Large
entrepreneurship
ventures
Social
entrepreneurship
ventures
In this kind of
entrepreneurship
business are run
privately.
Scalable are run
publicly.
These are also run
publicly.
Social businesses are
both private and public
in nature.
These businesses
involves grocery stores ,
travel agencies.
In this start up like stock
brokers and retail stores.
This includes big
enterprises and
companies.
It consist of NGO and
non profit companies.
These enterprises can be
run by any one.
These are run by two or
more people which who
wants to implement new
ideas.
These are started by
people, who have large
amount of money to
invest in.
Social ones are run by
government authorities.
5

Local people are not
hired in this kind of
business.
They hire local people to
provide them
employment.
Experiences and expert
people are hired by them
.
Local people are
engaged in this type of
business.
Less revenue and profit
is generated by them.
Revenue is more than
small ventures.
High amount of profit. They do not work for
generating profit.
Similarities and differences between men and women entrepreneurs:
Entrepreneurship ventures run by men Entrepreneurship ventures run by women
Male entrepreneurs makes effective decision. Female entrepreneurs faces difficulty in
decision making process.
These businesses focuses on economy. Focus in on social contribution.
They are task oriented They aims on making positive relationship
with employees.
Example Alex Brownsell – Co-Founder of Bleach
London UK
Example : Peter Jones founder of UK's first
enterprise academy.
The significance of Small enterprises on Economy (P3)
As per data regarding UK economy, there are 5.4 million small private business enterprises in
the year 2015. In the year 2016, 1,50,000 enterprises are added with that amount
(smallbusiness.co.uk, 2016). UK government is supportive regarding the expansion of small
scale business which creates new employment opportunities. If the number of business compared
since the year 2000, then it can be cited that 1.9 million has been increased and this has been a
remarkable addition (smallbusiness.co.uk, 2016). A government initiative along with individual
initiatives enhances to grow the businesses. This initiative creates growth opportunity and
6

ultimately a business can flourish internationally. In terms of data, it can be said that Growth
perspective for small business is very high in UK economy (smallbusiness.co.uk, 2016). If new
entrepreneurship is assisted in any country by the government positively then it reveals a sign of
huge growth in future. A small business first competes in domestic market and day by day it can
grow positively.
Small enterprises are very important for the economy of developing countries. Revenue
generated form these businesses help in generating employment for the country. Job creation by
these enterprises increase economy the region. These ventures in UK helps in opening new
market and creations of employment opportunities. These businesses should be encouraged by
government in order to improve economy of the country.
Finally, when it will earn huge amount of revenues, it will try to increase the business
internationally. In such a way small scale organization can improve the economic growth of a
country. A small and medium scale business can ensure rapid growth of the domestic economy
which changes the lifestyle of a nation. It is possible in UK economy because UK is having lots
of opportunities to start and grow small business enterprise which reveals in the growth trend in
UK economy. If systematic strategies can be taken then it is easy to mobilize the economic
growth of a nation.
Explanation of importance and contribution of small businesses and business
start-ups to social economic growth (P4)
Ács et al. (2014, p.483) have mentioned that the exit of Britain from the European Union, also
known as ‘Brexit’ has made headlines all over the world. The UK government, as well as those
who voted for it, is of the opinion that Brexit has a severe long-term impact on economic growth
of that region. Those impacts are expected to be positive, as the UK wants sole control over its
market without interference from other countries. Other important reasons include an attempt to
restrict the overwhelmingly large number of immigrants into the country, as well as to bypass
several types of trade restrictions. Main aims also include implementation of policies that enable
restriction of low-level workers and attract high-level workers to the labor market.
Observations made by Baum et al. (2014, p.92) have indicated that following Brexit, it is
expected that overall market of Britain will be more or less fluctuating in the coming years.
7

Businesses, especially small and medium-sized businesses, are expected to be important in the
coming years as well. It is no secret that these businesses and business start-ups of these kinds
are already very vital parts of the overall economic growth of Britain. Their importance may
become even more pronounced in the coming years.
According to Bruni et al. (2014, p.87) it is a known fact that small businesses do not generate as
much revenue as their larger multinational counterparts. However, they are very crucial
contributors to the strength of distinct levels of an economy like local and national economies.
They are the providers of a large number5 of employment opportunities, which is expected to
come in very handy in the time period immediately following Brexit. This time period covers the
present era, and their importance in this regard also makes them overall building blocks for their
larger counterparts in business.
Carland et al. (2015, p.19) have mentioned that they represent a vast majority of all employer
firms, and have been observed to generate nearly 64% of overall new jobs. Social economy deals
with non – governmental organizations, as well as humanitarian organizations such as charities
and donation parties. Observations regarding small businesses have made it abundantly clear that
they are the main providers of jobs for people who do not for the government or any government
based entity. Thus, it is clear that social economy requires the growth of small businesses in
order to grow as a sector itself.
Since small businesses and start – ups of similar nature are among the leading contributors to the
field of generation of new jobs, they are expected to aid in the growth of new jobs and entities of
social economy as a whole as well. Smaller sized businesses contribute very deeply to the growth
of local economies because they bring in growth as well as innovation to local communities of
particular regions. People who generally fail to find employment in large corporations or
government offices often find employment and job opportunities in these businesses. Thus, the
UK is a very reliable and safe place for starting any venture of this kind. The overall platform
provided by the current scenario of Britain has made it easier and better to start new
entrepreneurial ventures that are not aimed for expansion into global dimensions.
According to Carland Jr et al. (2015, p.63) another feature of these kinds of ventures is their
immense ability to change and adapt to nearly all kinds of circumstances, regardless of how
8

drastic the changes are. Businesses of this scale are generally oriented according to their
customers and their demands, so their overall structure is formulated accordingly. Any changes
that are extremely sudden, such as most changes of social economy, are met accordingly. Most
small business ventures are able to adapt to these changes extremely quickly, and this ensures a
very loyal customer base. This loyalty from their targeted customers as well as their flexibility in
adapting to any kind of situation help them stay afloat in times of economic crisis.
One of the main reasons that small businesses play crucial roles in contributing to social
economic growth is their immense scope for growth. Since they are able to grow and adapt
according to social and national circumstances fairly quickly, they are important contributors to
the overall social economy of Britain, especially following Brexit.
Task 3: LO3: Determination and assessment of key entrepreneurial mindset
aspects
Differences between successful entrepreneurs and other business managers
(P5)
Castello et al. (2016, p.79) mentioned that entrepreneurs mainly differ from business managers
in their ways of thinking. James Dyson and Simon Cowell are two successful entrepreneurs
based in Britain. They have managed to achieve great and lasting success in their fields of
interest, primarily due to their passion as well as their willingness to go to extra lengths for
completing their work. They displayed a high level of courage under tiring and distressing
circumstances. Their courage was also one of the traits that allowed them to open their business
ventures in the first place.
9

Drucker (2014, p.77) has observed that Dyson is a great engineer who managed to give a shape
to his dreams when he went through with developing better vacuum cleaners. His passion for the
development of the best possible vacuum cleaners led to him implementing his innovative ideas
to a whole new level. His creations, such as Dyson Ball and Dual Cycloner vacuum cleaner, have
attracted significant interest from successful people and investors alike. His main traits are the
ability to improvise and innovate, for he was able to take and existing item and innovate it in a
way that enabled it to become even more efficient.
Cowell earned his fortune as a producer in television. He worked for a company named EMI
Music Publishing, before eventually going up the ranks. His success led him to eventually break
away from that company and subsequently create his own. His company went on to become one
of the leaders in the music industry. His interest in television led to him being involved in
various ventures of TV, which in turn contributed to his already immense fortune. His most
defining traits are his tendency to be brutally honest, and his bravery in going through with his
ideas regardless of what other people think about him.
10

Figure 1: Managerial way of thinking
(Source: Glaeser et al. 2015, p.518)
According to Glaeser et al. (2015, p.518) studies regarding the two aforementioned successful
entrepreneurs clearly, indicate that they think in a manner that is different from average business
managers. Most managers use a way of thinking that is based on casual reasoning. They are able
to formulate strategies and tactics that are based on existing methodologies that have already
been observed in past scenarios. They use existing strategies for different circumstances; they
just decide which tactic is best for implementation during certain situations.
Entrepreneurs, including the ones mentioned before, have a way of thinking that is specifically
termed as effectual reasoning. They evaluate all features of a product or a circumstance to the
fullest. They look for even the tiniest details since they know that the inspiration for an idea can
come from virtually any source. Evaluation of the uniqueness of a field or product where they
want to implement their ideas leads to them properly assessing the advantages and disadvantages
attached to them. They thus gain a very good idea regarding the best possible use of resources
under different circumstances.
11

Figure 2: Entrepreneurial way of thinking
(Source: Glaeser et al. 2015, p.518)
Green and Smith (2013, p.1) have stated that another criterion where they differ from general
business managers is their higher level of willingness to take risks. While it is true that managers
are also known to take risks, their level of risk-taking pales in comparison to that of
entrepreneurs. Entrepreneurs like the aforementioned have taken risks that could have potentially
been catastrophic for them in the long run, a decision that business managers are generally not
known to take. Business managers generally set their objectives based on tangible goals while
clearly determining the most effective course of action. On the other hand, entrepreneurs are
known to chart their own path after careful observation, and once they have decided that they
will go down a certain path, they do so without any kind of fear regarding the potential risk of
the situation. Simply put, entrepreneurs are better at creating and implementing a new vision,
whereas managers are generally good at overall execution.
Assessment of aspects of entrepreneurial personality (P6)
Cowell, on the other hand, earned and worked his way to the top. His initial job was that of
working in the mail room of a company named EMI Music Publishing. His time and experiences
there led to him developing a proper understanding of the music industry and eventual the
television industry as a whole as well. His hard working nature, background, as well as the fact
that he has experienced working at nearly all levels of a company, helped him develop a no-
nonsense attitude. He developed into a person displaying brutal honesty.
As stated by Schaper et al. (2014, p.82) it is abundantly clear that his motivations to open his
own company stemmed from his passion for the television industry as a whole. His experiences
in another company prepared him for all the risks and potential situations that he would have to
deal with in his own company. His observant nature, which is a hallmark of all successful
entrepreneurs, helped him in assessing the good and bad marketing tactics. These helped him
develop his own company, which, coupled with his knowledge, went on to become a major
player in the music industry.
12

Storey (2016, p.85) has stated that main factors of motivation have been observed to arise from
them observing certain facets and aspects of their surrounding environment. These aspects and
factors had a deep impression on them, and they strove to implement their own ideas into them.
For Dyson, vacuum cleaners and other gadgets provided him the motivation to create even more
modified versions of them so as to make their use even more handy and comfortable than it
already was. Similarly, Cowell, whose passion for television continues to this day, observed the
good and the bad about the tactics and strategies implemented by the company that employed
him, and incorporated them into his own distinct vision for a successful enterprise. Thus, main
aspects of entrepreneurial personality are observant nature, passion, courage to take relevant
risks and innovative minds.
Dimensions of OCEAN acronym in personality of entrepreneur :
OCEAN model gives five dimensions of personality which should be in entrepreneur.
These dimensions are as follows : Openness to experience : This attribute involves curiosity to learn new things, ability to
innovate and creativity. In this a person requires imaginative thinking and novelty in
ideas. Conscientiousness : This attribute requires self discipline and thoughtfulness in a
person. High level of consciences is required in individual. Extraversion : This trait requires positiveness, high energy and talkativeness in an
individual. Risk taking personality s required in this trait. Agreeableness : This attribute includes comparison and cooperativeness. An
entrepreneur should be helpful and trust worthy. Neuroticism : High level of emotional stability should be there in a person.
Role of personality in entrepreneurship
It can be stated that personality plays vital role in entrepreneurship. From the above
example of Dyson it can be conclude that he posses very innovative thinking which helped him
in making gadget which were never though before. He was very passionate and curious. This
personality has supported him to be a successful entrepreneur. On the other hand Cowell who is
13

the founder of EMI music publishing. He was hard working and self disciplined man. These
personality traits has supported in becoming successful music publisher.
Task 4: Examination of different environments
Effects of experience and background in entrepreneurship (P7)
As stated by Stuetzer et al. (2017, p.9) the examples of Dyson and Cowell are clear enough in
stating the importance of background and experience to entrepreneurship. Both of them
experienced times which enabled them to go through with their tasks at later points of their lives.
Their personal backgrounds of belonging to households that were never very rich, coupled with
their own passion enabled them to understand all aspects of people belonging to middle-class
societies. Since they were both born into such households, both understand the meaning of labor
and the value of money. They both developed a passion for a field at a young age.
A common feature here is that their personal backgrounds enabled them to come in direct contact
with their fields of passion in the first place. A common personality point that they both share is
being determined to complete what they set out to do. Their personal background thus helped in
broadening their minds to incorporate a wider view of their surroundings, which turned out to be
immensely beneficial in their success as entrepreneurs later in their lives.
Schaper et al. (2014, p.82) have observed that their experiences helped them immensely in most
cases as well. Cowell’s experience as a worker in a company helped him in getting a better
appreciation of all levels of employees in a company. It also exposed him to the working
methods of companies in the music industry, which in turn helped him in developing better
14

marketing and producing strategies for his own company down the road. His continued passion
is also a result of his experiences, as he gained a better understanding of the industry he is so
passionate about. To this day, he continues to be involved in the television industry.
According to Hart et al. (2015, p.96) Dyson’s experiences also helped him in developing his
innovations. His experiences in failing at creating his desired prototypes illuminated him to the
path he eventually had to take to create a successful prototype. His determination actually
enabled him to succeed time and time again. He has always acknowledged the fact that his
experiences with failure, as well as his experiencing his father's death at a relatively early age,
enabled him to succeed eventually. He took those sad experiences as a lesson and took
inspiration from them to formulate methods that enabled him to succeed as an inventor and
entrepreneur. He went on to be the founder of his own company, the Dyson Company, which is a
major organization of its type in the market.
Conclusion
It is concluded that entrepreneurship is indeed beneficial for overall growth and development of
the economy. The fact that countries that have managed to achieve a drastic reduction in poverty
over the last few years reinforces this fact. Small business ventures and business start-ups of their
types are among the most significant contributors to the growth of social, as well as overall
economic growth. These businesses have been observed to be significant contributors towards
the generation of jobs and reduction of employment rates in Britain. Successful entrepreneurs
share a few common traits, such as observant natures and the determination to succeed regardless
of potential risks. Hence, it is concluded that personal experiences and backgrounds shape
personalities and working methods of entrepreneurs and directly affect their ventures.
15

Reference List
Ács, Z.J., Autio, E. and Szerb, L., (2014). National systems of entrepreneurship: Measurement
issues and policy implications. Research Policy, 43(3), pp.476-494.
Baum, J.R., Frese, M. and Baron, R.A., (2014). The psychology of entrepreneurship. Psychology
Press.
Bruni, A., Gherardi, S. and Poggio, B., (2014). Gender and entrepreneurship: An ethnographic
approach. Abingddon: Routledge.
Carland, J.C., Carland, J.W. and Stewart, W.H., (2015). Seeing what's not there: The enigma of
entrepreneurship. Journal of small business strategy, 7(1), pp.1-20.
Carland Jr, J.W., Carland, J.A.C. and Carland III, J.W.T., (2015). Self-actualization: The zenith
of entrepreneurship. Journal of Small Business Strategy, 6(1), pp.53-66.
Carraher, S.M. and Paridon, T.J., (2015). Entrepreneurship journal rankings across the
discipline. Journal of Small Business Strategy, 19(2), pp.89-98.
Castello, I., Barbera, D. and Vaara, E., (2016), January. Legitimizing Entrepreneurship Identities
through Failure Narratives. In Academy of Management Proceedings, 2016(1), pp.15535.
Academy of Management.
16

Drucker, P., (2014). Innovation and entrepreneurship. Abingdon: Routledge.
Glaeser, E.L., Kerr, S.P. and Kerr, W.R., (2015). Entrepreneurship and urban growth: An
empirical assessment with historical mines. Review of Economics and Statistics, 97(2), pp.498-
520.
Green, K.M. and Smith, M.W., (2013). Opportunity identification exercises as an introduction to
entrepreneurship. Journal of Business Cases and Applications, 7(3), p-1.
Hart, M., Levie, J., Bonner, K. and Drews, C.C., (2015). Global Entrepreneurship Monitor
United Kingdom 2014 Monitoring Report.
Kirzner, I.M., (2015). Competition and entrepreneurship. Chicago:University of Chicago press.
Schaper, M.T., Volery, T., Weber, P.C. and Gibson, B., (2014). Entrepreneurship and small
business.
smallbusiness.co.uk (2016) The actual statistics of small business success Available at:
http://smallbusiness.co.uk/the-actual-statistics-of-small-business-success-2526561/ [Accessed on
7 April 2017]
Storey, D.J. ed., (2016). Entrepreneurship and new firm. Abingdon: Abingdon: Routledge.
Stuetzer, M., Audretsch, D.B., Obschonka, M., Gosling, S.D., Rentfrow, P.J. and Potter, J.,
(2017). Entrepreneurship culture, knowledge spillovers and the growth of regions. Regional
Studies, 19(5), pp.1-11.
Wach, K. and Wehrman, C., (2014). Entrepreneurship in International Business: International
Entrepreneurship as the Intersection of Two Fields. International Entrepreneurship and
Corporate Growth in Visegrad Countries, 6(2), pp.9-22.
17