Factors Influencing Small Business Success

This assignment examines the multifaceted factors contributing to the success of small and medium enterprises (SMEs). It delves into a range of influential elements, including financial aspects, entrepreneurial characteristics, market dynamics, government policies, and ethical considerations. Drawing upon scholarly articles and research findings, the assignment aims to provide a comprehensive understanding of the key drivers behind SME success.

ENTREPRENEURSHIP

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Different types of entrepreneurial ventures and its relation with typology .........................3
P2. Differences and Similarities among various entrepreneurial ventures.................................5
P3. Impact of micro and small business on the economy...........................................................6
P4. Explain the importance of small business and start ups on the growth of social economy..7
M1. .............................................................................................................................................9
M2...............................................................................................................................................9
D1................................................................................................................................................9
D2................................................................................................................................................9
TASK 2............................................................................................................................................9
P5. Determine the characteristic traits and skills possessed by successful entrepreneur............9
P6.Aspects of entrepreneurial personality that reflect motivation and mindset........................10
P7. Person's background and past experiences that can hinder of foster entrepreneurship......10
M3.............................................................................................................................................10
M4.............................................................................................................................................10
D3..............................................................................................................................................10
D4..............................................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneurship is the important process of initiating a new business or venture in order
to carry out the whole process in effective and efficient way. It involve coming up with
innovative and fresh thoughts and ideas and it is conducted by entrepreneur. Every business
organisation exist due to some aims and objectives that has to be fulfilled in set time period. This
report highlight different types of entrepreneurship ventures and its impact on the economy.
Apart from it, there are certain characteristics, skills that must be possessed by business man in
order to conduct it in successful manner. Person's background and past experiences can either
hinder or foster entrepreneurship thus, it plays an important role in entrepreneur's life. There are
number of factors that affect the business performance in many ways. This report also throws
light on numerous risks and rewards that are associated while starting a business organisation
hence, it must also be focused upon properly.
TASK 1
P1. Different types of entrepreneurial ventures and its relation with typology
Entrepreneurial venture are established in order to accomplish set targets in set time
period. Their primary motive is to earn high financial gains and outcomes. Another objectives
include creating high market share and growth.
Entrepreneur is defined as an individual who come up with innovative and new thoughts
for running business organisation. They have to perform several duties so that their final aims
could be accomplished in proper time period (Ackermann, 2012). There are number of resources
of diverse nature and types that has to be coordinated together for completing the work task in
conducive mode. There are different types of entrepreneurial ventures that is present in business
environment are discussed below: Social Enterprises: This type of business organisation is constructed for rendering social
services to people of society. Their basic aim do not include earning huge profits but to
satisfy demands and wants of people effectively. It include non cooperative societies that
is established for some purpose or action. Large scale business: It is created for conducting large scale operations and work
process that include high amount of capital and investments. It is very much different
from small scale business in number of grounds.

 Small scale business: It is constituted by single individual who make plans and
procedures for conducting their own business. It include plumber, carpenter, small
departmental and general stores. The chief characteristic of this enterprise is that it is
carried out by family members by investing their own savings and money.
 Start Up ventures: It refers to opening up of new business entity that has not been
initiated yet in the environment by any business man. There are number of risks that are
associated with it hence, entrepreneur must carry out work process properly. There are
investors that are present which provide financial aid to them (Blackburn, Hart, and
Wainwright, 2013).
Relationship of entrepreneurship with typologies: Female entrepreneurs: As the name suggests, business is carried out by female
members. They perform operations and transactions similar to male members. They take
all risks and obstacles that come on their way while running business. Social Businessperson: They perform all work tasks that lead to upliftment of standard
of living of individual present in society. They are voluntary organisation that is not
established for earning profits.
 Serial entrepreneurs: It refers to business activity that has been performed by single
person. It is carried forward to other individual after some period of time. They have to
manage all resources that are required to carry out business organisation in correct
manner.
P2. Differences and Similarities among various entrepreneurial ventures
Business environment is consisted of number of entrepreneurial ventures that are
different and similar on some basis that are described below:
Male entrepreneurs Female entrepreneurs
Differences Differences
 Male business man are strong and stiff
in their nature and run their business
accordingly. They are quite inflexible
in their decisions and want to achieve
their final goals and objectives in
 Female entrepreneurs are somewhere
soft and practical in nature. They
manage all their work together whether
it is household related work or business
related. They are expert in maintaining

particular time period without any
hindrance.
balance between their overall work
structure.
Similarities Similarities
 They perform all business in
accordance to set plans that involve
producing quality goods and services
that lead to satisfaction of consumer's
needs and wants.
 They have to focus on various threats
and opportunities that are present in
business environment that can either
hinder or foster the overall functioning
of the business.
 They also work similar to male
business man by carrying out all
operations and transactions which is
directly linked with fulfilment of
customer's requirements in effective
manner.
 They also face several opportunities
and threats in conducive way so that
they can able to full fill their ultimate
aim.
Lifestyle ventures Serial ventures
Differences Differences
 They basically make huge investments
while conducting their work process.
They make lots of market research
before producing any particular
products and services.
 They have to come with innovative and
new ideas every time they are
performing their functions and work.
 In this type of business organisation,
single entrepreneurs carry out their
respective work process that result in
accomplishing final aims and
objectives. Their basic objective to
maintain good relationship with their
customers for longer period of time.
Similarities Similarities
 They always come up with new and
innovative aspects and concepts that
allow to fulfilment of chief aim and
purpose.
 They also upgrade themselves in
accordance to current needs that are
prevailing in market so that they can
maintain their competitive edge in

 They make heavy investments for
conducting their work operations so
that customer's demands and objectives
get fulfilled in proper way.
 They have to work in accordance to
customer's demands that can be
favourable and unfavourable some
times.
competitive business environment.
 Serial entrepreneurs have to make huge
investments in number of key areas that
is directly linked with attainment of
vision and mission for which they exist.
 They also have to draft their policies
and procedures while considering
demands of people that are present in
market.
P3. Impact of micro and small business on the economy
There are number of business organisations that is of different size and nature. Some are
large scaled and other are small sized, but both play important role in the economy where they
are operating. These impacts can be positive or negative depending on the final results and
outcomes which can be favourable or unfavourable (Bridge, and O'Neill, 2012). Small scale
business organisation operates at micro level which is operated with limited amount of capital
and resources. They have to make arrangements for acquiring capital from number of sources.
On the other hand they play a vital role by making contribution in GDP growth of the economy
where they are operating. They also make employment opportunities for number of people who
can earn their significant amount of livelihood. There are number of impacts that is imposed on
the economy: Impact on local society: Small business organisation pose a huge impact on local society
in number of ways. It involve producing those products and services that lead to satisfy
customer' demands properly. Thus, they contribute in enhancing the local community
appropriately. Rules and regulations that are framed by government sector is also to be
taken into consideration while conducting business organisation thus it poses huge impact
on local society. Impact of regional areas: It include impact on state level at number of ways that include
making of number of policies and procedures in accordance to Government instruction so
that it lead to fulfilment of final objectives in effective manner.

 National and international impacts: It involve number of changes that take place at
national and international level. There are number of competitors that are present in
market place which poses huge impact on small scale business entities.
Different types of business organisations that are present in business environment is as follows: Small sized organisation: It refers to all sole traders, partnership institutes that are
characterised by having limited amount of employees and their operations are also less.
All these are focused in achieving final purpose and objectives. Micro Business organisation: They also operate at small level that hire large number of
employees into their system. They work according to set objectives and aims that has to
be achieved in particular time period.
 Medium sized business organisation: They are large in size as compared to small and
micro organisation in terms of employees, operations and overall set targets. They have
proper formulated strategies and procedures that must be followed while conducting their
work.
P4. Explain the importance of small business and start ups on the growth of social economy
Small business organisations and start ups play vital role in growth of social economy so
that final aims can be attained in proper manner. Being a small scale business entity they have to
take decisions accordingly. They have to make number of policies, rules for their business so that
ultimate goals can be reached in particular time period. They play very important role in the
society where they are operating. Government also play essential role in this respect by
formulating specific actions that must be executed by small business entity. They make proper
arrangements for providing financial aids so that they can set up their identity for longer period
of time (Bruton, Ahlstrom, and Li, 2010). Start ups is the business that is run for the first time in
the economy. Both these organisation system contribute significantly in growth of the economy
which are discussed below:
 Small and micro businesses helps in creating number of employment opportunities for the
people where it is operating. It is directly linked in enhancing the quality of living f
people.
 They also concentrate on carrying out their tasks that do not result in polluting the
surroundings where they are carrying out their productions and manufacturing process.
Thus, they focus on making the environment healthy and pollution free.

 They also assists in reducing the unemployment ratios of that area to significant level.
 Every business require different types of resources that results in running the business
organisation system. There are number of activities that need resources thus, business
have to provide attention for locating these resources for optimum utilisation and to
minimize wastages (Welter, 2011).
 Businesses have to work in dynamic environment where changes are not stable hence,
small and micro organisations have to maintain healthy competitive environment. It do
not hinder their overall performance and growth.
 Another importance include its contribution of significant percentage in overall GDP
growth and share, that is directly linked with growth of whole economy system.
 These firms are constructed for earning huge profits and gains therefore, government
provide number of opportunities so that final target can be earned.
 Start ups enable to bring new and innovative ideas into the system so that overall
development and productivity could be achieved. Generation of healthy competition will
result into growth of society (Burns, 2010).
 It bring changes in positive manner into the society that results into growth and
development of environment in efficient mode.
M1.
There are different type of business ventures having distinctive features and
characteristics. Organisational sectors is broadly divided into two parts that include private and
public sectors. Both are different from each other on number of grounds and basis. Public sector
organisation refers to enterprises that is controlled by government body whereas private segment
is directly owner by some party or individual that aims in fulfilment of set goals and objectives.
M2.
All business organisations whether it is small, medium and large plays a important role in
the economy. They are consider important part of business environment where they are running
and executing (Chittithaworn, and et, 2011). Small and medium sized organisations employ large
number of people and contributes 99% of all enterprises which are present in system. It mostly
show significant growth in service sections. Large sized businesses have more capital as
compared to small and medium ones.

D1.
Every entrepreneurial ventures play significant roles in the economy where they are
established. As there are several benefits that are enjoyed by the economy in the form of
generation of employment opportunities, contribution in GDP growth and create positive growth
in the society (Cowling, Liu, and Ledger, 2012).
D2.
Business organisation system have pose impact on local, regional and national and
international society in number of ways. It can be favourable for some business organisation and
unfavourable for other ones. There are number of advantages that are accepted by system in
generation of employment opportunities and development of overall economy at significant level
(Stokes, Wilson, and Wilson, 2010).
TASK 2
P5. Determine the characteristic traits and skills possessed by successful entrepreneur
Every entrepreneur do not become successful in running business. There are certain
characteristics and features that must be possessed by business man so that they can be
successful in their work process. Thus, there are specific skills that must be present in
entrepreneurs to conduct business in correct manner. There are number of set examples of well
established entrepreneurs who are doing well in their fields (Schaper, 2014). Every individuals
are different from each other on various number of grounds, skills, capabilities and attitudes.
There are examples of some successful leaders who are doing well in their areas that are
discussed below:
 Steve Jobs: He is the owner of Apple company who is in top among technology industry.
He has done lots of hard work in his life by facing so many struggles and got the results
which whole world knows about it. He has set example for many entrepreneurs who
follow his ways and actions in proper manner.
 Bill Gates: He is the owner of Microsoft Company and is among the richest personality
in the world. His company is earning huge revenues and profits and its turnover is very
high. He had started from very small level and reach at higher level after performing
significant hard work. He has also established examples for many business man and they
are following his path to become successful.

From the above discussed examples of successful entrepreneurs it has been noticed that
no individual is born entrepreneur as every persona has to develop themselves in order to
become successful and established (Dennis, 2011). There are number of skills and characteristics
that must be present in every entrepreneurs which are illustrated below: Must Possess Innovative skills: Innovation plays an important role while conducting
business in today's competitive world. It is defined as coming up with new ideas,
thoughts for carrying out work process in order to stand apart from other competitors.
Thus, entrepreneur must possess innovative skills (Shane, 2012). Hard working: Every work process involve hard work that has to be performed by
entrepreneur to achieve final end and objectives. Hence, entrepreneur must do hard work
to reach final set targets. Flexible in nature: Business have to be operated in dynamic environment where nothing
is fixed hence, entrepreneurs must be flexible in nature so that they can take proper
decision can be taken in right period of time. Facing risks and Challenges: Risks and challenges are part and parcel of business
organisations. Hence, entrepreneurs must prepare themselves to face these issues so that
their performance do not get hinder.
 Confident: Entrepreneur must be honest and confident in his decision so that final aims
can be realized in proper time period.
P6.Aspects of entrepreneurial personality that reflect motivation and mindset
Every entrepreneurs are different from each other and possess diverse behaviour, attitude
and mindset which is shown in their working process (Fassin, Van Rossem, and Buelens, 2011).
There are certain entrepreneurial personality that may reflect the entrepreneurial mindset and
motivation, which are discussed below: Goal Centred: This is very much important for the entrepreneur to be goal and aim
focused so that their actions must lead to achievement of final vision and mission for
which that business has been constructed. Out Spoken: It is very much important for the entrepreneur to be out- spoken in his
nature. As it is their basic aim to influence mind of the customers that are present in
market place. So that they can able to gain high sales volume and gains. It also involve

effective communication system so that they can communicate their information to their
consumers and clients (Hall, Daneke, and Lenox, 2010). Experience Holder: Experiences also play essential role in conducting business
organisation. It can be good and bad but both help the entrepreneur as it supply learning
to them. Therefore, experiences contribute in fulfilment of final goals and objectives in
constructive way.
 Influencing Behaviour: It is the responsibility of entrepreneur to influence customer's
mind in such a manner so that their sales volume could increase at significant level and
lead to achievement of final vision in constructive style. Hence, influential behaviour
play a important role in this regard.
P7. Person's background and past experiences that can hinder of foster entrepreneurship
Every entrepreneurs must contain some backgrounds and experiences that either foster or
hinder the performance of business organisation. Therefore, both the aspects have a huge impact
on entrepreneurship process. There are number of issues and challenges that may occur while
conducting business operations and functions. Thus, entrepreneur's background and experiences
helps in formulating proper and correct structure. Background can be defined as culture,
customs, values and beliefs that is associated with the entrepreneurs. All these criteria provide
the framework of taking decisions in proper manner. If background is weak it will affect the
business performance in many ways (Ligthelm, 2010). But if background is strong than it
positively contribute in running overall work process in effective means. Backgrounds involve
financial aspects, knowledge, skills, management abilities that is required for smooth processing
of business organisation. Education background also contribute in fostering of entrepreneurship
process as it enable entrepreneur to conduct final process with proper focus and attention as they
can make difference between wrong and right decisions.
On the other hand, experiences also contribute in fostering or hindering of business
performance. Past experiences that may be positive and negative but it somewhere assist the
functioning of organisation. For instance, if experience is good and positive than, entrepreneur
can apply to their business in present time hence, it foster the entrepreneurship procedure. Bad
and negative experiences hinder the overall performance and productivity level. Thus, it is
consider as a learning for the business man so that they can apply to their system in decorous

way. Thus, it can be concluded that background and experiences assists in performing job
efficaciously and expeditiously (Nga,and Shamuganathan, 2010).
M3
To become a successful entrepreneur, individual must contain definite skills and
characteristics that directly enable them to conduct their business impressively. Some important
skills include innovation, communication, change management and many other. All these
features enable them to establish their business for longer period of time in market place.
M4
Personal backgrounds and experiences pose a direct link with entrepreneurial
characteristics. These aspects provide a framework of taking decisions in proper manner as it
play a role of learning process. Backgrounds include beliefs, customs, values that must be
possessed by individual (Preuss, 2011).
D3
There are number of successful entrepreneurs that are present in business environment
that have set examples for others. Steve Jobs, Thomas Cook, Bill Gates are some of the examples
of successful entrepreneurs which have certain attributes which enable them construct their
image in competitive world.
D4.
Backgrounds and experiences may hinder and foster the business performance. Thus, it
may pose negative and positive impact on overall business organisation. It helps in drawing the
policies and objectives while considering these areas properly and correctly (Schaltegger, and
Wagner, 2011). It involve education, financial backgrounds of the individual that is directly
connected with the business performance.
CONCLUSION
From the above prepared report it has been concluded that entrepreneurship is a
important process which is conducted by entrepreneur with the use of number of resources.
There are number of ventures that are present in business environment and are different from
each other on certain basis and types. All these contribute in social economy significantly. There

are certain skills, characteristics that must be possessed by entrepreneur to be successful in their
business. Government also play essential role by framing number of policies that allow small and
medium sized business to grow at higher level.

REFERENCES
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