Entrepreneurship and Personal Background

This assignment examines the relationship between personal background and entrepreneurial success. It delves into the characteristics of entrepreneurs, highlighting how factors like family influence and life experiences shape their personalities and business approaches. Case studies of Richard Branson and Anita Roddick illustrate this connection, demonstrating how diverse backgrounds can contribute to remarkable entrepreneurial achievements.

Entrepreneurship

INTRODUCTION
In this world, vital role is played by both small and large businesses in the economy of a
country. The word 'Entrepreneur' is derived from French word “Entreprendre” means, “to
undertake”. An enterpriser is the owner of a business organization who identifies opportunity,
develop, organize and manage company venture, to achieve goals by undertaking risks in a
commercial enterprise (Cooper and Folta, 2017). For instance, starting up of a new businesses is
an entrepreneurship. As, an entrepreneur success they possesses characteristics such as
passionate, motivated, ensure financial stability towards their business. In this report
heterogeneous ventures of entrepreneurship, their typology, closeness and divergence, small and
micro businesses impact on an economy which is explained with the help of statistics, impact of
new business ventures and small business, mindset and characteristics of two successful
entrepreneurs is discussed, motivation, impacts of background experience are analysed.
TASK 1
P1.Examine different types of entrepreneurial ventures and explain typology of
entrepreneurship.
The entrepreneurial venture is made up of two words that is entrepreneur which means to
undertake things and a venture refer to a word journey in respect to gain a profit by taking up
risk of loss or failure. An entrepreneur venture refers to an organization that helps to get
opportunity by innovation and creativity in order to improve and produce their economy and
value in the existing competitive world. It is all about the risk, failure, ambiguity and learning
from it. A business venture can invest in a group or by an individual that bring a financial gain.
These are created according to demand or lack of supply in a market (Aldrich, 2017). It will
enhance the participation and sharpen their ability to recommand and evaluate opportunities for
a new ventures. An entrepreneurial venture involves commencement of a company, idea
generating, sales and marketing strategies and set up for growth.
Types of entrepreneurial ventures
To assess the extent to which businessperson venture is categorized into four. These are
described under as follow:
Basically there are four types of typology in entrepreneurship, these are as follows:
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 Small business entrepreneurship: This typology includes the small businesses such as
grocery stores, consultants, plumbers, carpenters, electricians, etc. or entrepreneurs.
Local employees or family members handle such kind of business. For instance, if a
person is doing business of hairdresser, needs to frugal for an investment to set up their
business. It require information about market, visit local vendors and other related
factors.
 Scalable start-up Entrepreneurship: In this typology of entrepreneur, they begin
institution from day one can change their world. They hire best and brightest which can
easily manageable according to a situation arises in an organization (Meyer, Neck and
Meeks, 2017). It includes managed growth venture which can be maintained apparently
condition of work.
 Large company Entrepreneurship: These typology have bounded life cycles. It can be
affected by changes in tastes, new technology, offering products by variants in existing
one, entry of new firm, etc. can create pressure for more troubled innovation. This type
of typology is related to an aggressive entrepreneurial venture which refer to high rate of
income required at the time of establishment of a firm.
Social Entrepreneurship: It is an innovator who focuses on creating products and
services which are generally used to resolve the problems. These includes business which can be
non profit, for profit or hybrid type of an enterprise.
Typology of entrepreneurship
 Survival Venture: This project assist in identifying these venture that are posed with
remarkable dilemma. Purpose of this kind of business is to create a source of income for
an enterprise. Survival venture is utilised for an individual primary source of financial
gain. Primary source of livelihood is created for individual in such kind of venture.
 Lifestyle Venture: It refers to the daily operations activities in an existing competitive
world. Although, it related to the standard of living according to trend and culture
adopted by a surrounding environment (Acs, Autio and Szerb, 2014). This type of
venture consider the gauge for selection which includes local small firms that should be
less than five year old, local competitiveness, rising performance from present
operations, focuses on two or more location in a market place and so on.
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 Managed growth Venture: This type of venture uses selection criteria such as ongoing
growth of a firm by its effective location, introducing new products and services, entry of
new company into markets, development of regional brand and many more.
 Aggressive growth venture: It refers to firms which are selected on the basis such as
record of high revenue enhancement for a three year period, high rate of stability as on
developing objectives, efforts to compete in domestic or an international level, depends
on equity investors in increasing the capital of a business firm.
P2. Explore the similarities and differences between entrepreneurial ventures.
The similarities and differences between entrepreneurial venture and entrepreneurship are
describe in detailed as below:
Similarities
Lifestyle business and Scalable company
Both the companies need a huge amount of investment as both these have same
requirement to sustain in a market for long term (Landes, Mokyr and Baumol, 2012). In this,
they need those investors who can take high risk for the stability of a business. Both these have
same motive of best and brightest employees to be chosen. As these both require focus on
livelihood and the maintain their working conditions for better results.
Survival venture and small business entrepreneurship
Basic need of small business and survival venture is the source of fund to arrange their
investment. Both of these involves low and medium class people who wants to run their own
business. And the fundamental necessities is to feed the family and make profit from there
investment.
Managed growth Venture and large companies
In this part of similarities, the managed and large companies has a limited life cycle as
these both firms are working in proper and well planned manner. These both are sustained due to
a changes which are acquired by the business organization. Due to changes it creates pressure
among their employees in a workplace. Hence, both the firms size and culture make turbulent
innovation which is difficult to execute.
Differences
Lifestyle business and Scalable company
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In a lifestyle business, it is related to sustain a particular level of income for the founder
or owners. It is a purpose to facilitate a particular lifestyle (Butler, 2012). This is tends to be
someone constraining at the time of expanding a business. It never overcomes that limitation.
Therefore, it applies that such a firm have a hard time in living its primary proprietor.
In a scalable company, they have an ability to flex and expand similar product or service without
substantial changes rather than same kind of items. It led to decrease in marginal cost, where
production increases, resources can be provided for next time growth of services.
Survival venture and small business entrepreneurship
Small business company seeking to achieve financial independence by building
profitable firm that can pay their employees regular income. At initial level, entrepreneur is
primarily focuses on profit and to feed their family. Whereas, in survival venture it concentrate
on business activity to create livelihood income for an enterprise for a monetary gain.
Managed growth Venture and large companies
Managed growth venture refers to a firm which are well managed business for a long
run. These companies efforts more for funds and other things which are required (Jennings and
Brush, 2013). Whereas, in a large companies they have sufficient funds to produce there
business and also it is easy for them to arrange it.
TASK 2
P3. How micro and small businesses impact on the economy.
As a small business proprietor is challenging. In UK, it plays a crucial role in the
economic growth and sustainability of a country. New jobs and possibility of getting more,
without any doubt, in turn contributes to bigger economic growth of a country. Therefore, it
helps in economy boost and increases the employment opportunities. They come from various
types of background, each have own intellect for pursuing self business (Kazanjian, Drazin and
Glynn, 2017). There are three fundamental ways that small and micro companies contribute to a
nation. It gives people a possibility to attain financial independence, boost creativity and create
job opportunities. Small and micro businesses are an engine of development that allows both
government and citizen to take goods and services they want to increase. These generate a wide
variety of new job opportunities.
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It's easy to estimate their value if an employer neglect to aspect at the statistics. Once, a
small business starts doing well, it oftens needs more investment amount to grow. Many of a
companies decides to access stock market of a capital to issue an initial public offering. It
increases the stock accessible to large investors (Hughes and et. al., 2012). This is much easier
and safer to invest in small cap stocks as it provides healthy returns and growth of shares from a
share market place. Given an economic and development benefits of fast growing and high
impact companies like ensoft and wiser, supports for micro and small enterprise has appeared as
a top priority in the global agenda.
P4. Importance small businesses and business start –ups
British exit from European nation (BREXIT) is taken on 23rd of June,2016 by UK. 28
European countries form EU club which provides them opportunity to work together. This
makes trade possible with one another freely. British feels that their culture, independence and
place is affected by being a member of EU so they think that it is necessary for them to leave
EU.Aim of EU is to provide or to expand trade between different countries and create jobs and
lower prices.
Economy of BREXIT and other countries is affected by this. This situation
counterbalance economy of all member countries. Value of pound has decreased in market
which has never happened in last 30 years. It save the billions of pounds which British spend for
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remaining its membership every year. Rate of unemployment has increased as most of people
enter UK as they think they can get better career opportunities. Trade cost and traffic is high
due to which BREXIT face decrease in foreign investment of country.
Small business help in development of the society economy up to large extent (McKenzie and
Woodruff, 2013).
Create employment- It provide jobs to many unemployed people which big businesses
didn't provided. Employment is provided in small scale by emerging enterprises.
Increase in GDP- SME generating their own revenues and also support in the revenue
generation for the country which directly increase GDP of the nation.
Variety of products- there is no guarantee that large companies will be successful
resulted in rise of online sales. Customers likely to buy product and services online which
directly increase variety of products.
TASK 3
P5. Characteristics, traits and skills of two successful entrepreneurs
Entrepreneur is a person who forms a new venture, project or activity. The person who in
place of working as an employee, starts and runs their own business for getting profit and
success (Kiss, Danis and Cavusgil, 2012). Successful entrepreneur is a person whose main aim is
grow current venture so it will assist in earning profit. He is a entrepreneur who get success only
after proper evaluation of the risk and rewards in the organisation.
It is essential for a flourishing entrepreneur to have quality of being passionate, right
belief, self confidence and ability to plan effectively so that objectives established could be
fulfilled.
Richard Branson and Anita Roddick two booming entrepreneurs who are undertaken in
this segment to examine their trait and skills at the same time differentiating them from business
managers.
Richard Branson is among one of the most well known and successful entrepreneurs. He
started his carrier at the age of 16 years by dropping school. After leaving school,he founded a
magazine called student. He launched virgin records in early 1970 now it is one of renowned
conglomerate in the world . He founded virgin with the idea of begin a mail order record
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company to help funds in his magazine efforts. Virgin group is made up of around four hundred
companies.
Apart from this,they have several characteristic,traits and skills which assist them in availing
success
Learn from failure- Person who learns from his failure always get success. Nobody get
the first thing right (Bruton and et. al., 2015). Successful person never stops from non
achievement, they learn from that and move on. Richard learns from his mistakes and
experiences which helped him in developing one of profitable companies in the United
Kingdom.
Calculate Risks- Big risk ,gave big rewards. Risk open all the doors of
change,progression and success. Business who calculated risk properly able to grow. Richard
understand where the boundaries,according to that they extend their personal and professional
capabilities. Where as business manager undertakes approach which is less risky so that
established goals could be fulfilled.
Creative- Trying new things can resultant in success or failure. Branson believe in doing
anything at least once,he venture into a new and unexpected industry. He always stepping out of
his comfort zone like in a new industries to face challenges. Unlike managers who always try to
replicate mode of operations carried out in business.
Long term thinking- Business is start with the aim that its for long run (Gedajlovic and
et. al., 2013). when Richard start virgin he didn't see that it will end after few time. He begins a
whole range of services for the customer. Success depends on idea and let it grow.
Guidance with the right people- Person should surround with the person who have
abilities and skills to guide in business grow. Richard surrounds himself with business coaches
and mentors which able to guide himself. These people help virgin's expanding and support in
accomplishing missions and vision. The managers in business organisation are provided with a
task to follow guidelines which are provided by the senior staff.
Anita Roddick founded the body shop in 1976. The body shop make his big presence in
global cosmetic business which gave success to his business and make roddick the richest
woman in England. Her company was first among the commercial cosmetic outlets which
prohibit use of ingredients tested on animals and promote fair trade for benefit of society. She
create a line of cosmetic from natural ingredients. No two successful entrepreneurs are same all
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have some different qualities and different way of thinking. Some skills are presented below
which make her successful-
Passion- Person should passionate about the work they do. This same passion help Anita
to innovate continuously and overcome obstacles of their way. She succeed because she believe
everything with such a passion that it become reality. Whereas this trait is mostly absent in
business managers working in the organisations (Fayolle and Gailly, 2015).
Social Responsibility- In today's scenario,masses get attracted to business who fulfils
social responsibility. Anita got famous because of her focus on welfare of the society. she
support for causes greens peace,banning animal test, saving the fore stand so on. Managers on
the other hand are mostly focused on the fulfilment of personal requirements and responsibility.
Risk taker- Person who take risk to converting anew idea into reality all long way to go.
As an entrepreneur Anita roddick have deal with lot of uncertainty to get success,by bring a
thing which is new to the world and never existed before. Managers are always ready to take risk
for the business to make profit.
Vision- Every entrepreneur has vision which gave motivation to work. It helps them to
grow and get success. Roddick vision is to provide beauty product which is made up of natural
ingredient for masses. Managers are not visionary their vision is limited only to current
situation.
P6. Entrepreneurial personality as discussed in P5, reflect entrepreneurial motivation and
mindset.
Entrepreneur qualities motivate others as they able to know on going that particular path
they are able to achieve the desired result (Burrows, 2015). There features help in making more
entrepreneurs as people know how they can become a successful entrepreneur.
Passion- Passion means do the work which can motivate. Anita roddick believed in their
ideas that it is viable. She gave all his efforts and dedication to make beauty products with
organic ingredient to get placed in human life. From her individual learned from them that they
do such work which doesn't make them sleep and not able to make them bored. It a thing which
person love to do.
Learning- For learning it is not necessary that it is done only in universities and college.
It can be possible in the real world. Richard Branson leave his study at very early age which is
16 years and whatever he learns only from the environment they work. Richard learns from his
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past mistakes and experiences which helped him in making his a profitable organisation of the
United Kingdom. From him individual, able to know that learning is a continuous process, they
have to acquire where ever they go. They can adopt this knowledge in the modification of the
current procedure. People should learn from their mistake and never get stop after being failed.
No one get success at first attempt (Audretsch, 2012).
Guidance with right people- Richards always surrounded with highly motivated and
skilful persons which help him in performing the task which he is not able to do by owns. As he
himself not able to perform all kind of activities that why he required persons who can guide.
They need different persons who have techniques and skill different from you. This tell new
entrepreneurs to make a group of persons who have different skills and knowledge from each
other so that business able to grow.
Confident- Individual become a successful entrepreneur only after confident about their
dream. Anita roddick believe in his idea of providing beauty product to masses which is made up
of natural ingredient. Blooming entrepreneur never thought whether they succeed or not they
only follow their heart. It teach new start up people that they should confident about their
knowledge has the capability to make business grow.
TASK 4
P7. Examine how background and experience can hinder or foster entrepreneurship.
The factors that are influence the decision to start a business includes personal
background, education, national culture, economic traits and its characteristics. Literacy and life
experience is a greater catalyst in arrangement of an individual personality, which applies same
to an entrepreneur (Bhachu, 2017).
Development of entrepreneurship depends upon the past of the entrepreneur. The family
is the first place from where people learn social values and lifestyles. The good and bad time in
the family assist in the process of entrepreneurship.
One of the major important term which is used in respect of an entrepreneurship is a “risk”. It is
a thought that carries a enormous possibility as well as problems of an individuals. It is
important to involves risk taking elements to formulated through time with a factors such as
knowledge , skills and life experience are acquired.
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As we discussed above two entrepreneurs which is Anita roddick and Richard
Branson,their background have a great effect on them. Background is a situation which can
motivate or demotivate any persons.
Richard Branson struggled in school and dropped at 16 years of age. His father Edward
James Branson was a barrister. His mother Eve Branson worked as flight attendant. Richard
struggle with dyslexia,made a hard time for him in educational institution. According to
him ,business idea comes from his childhood. His family close to him and always guided with
the saying that you should respect and treat people with fairness. Branson background is so
positive that gave him freedom and strength to do whatever he want to do. His parents and sister
always support him even when he leave school at every early age and at the route of starting new
venture If his family does not provide him mental strength then he may not what he is now
(Clarysse, Tartari and Salter, 2011).
Anita roddick born in Littlehampton,England, she is third child out of four children. she
studied in a kibbutz in Israel. she grew up working in the cafe which was owned by his parents.
That cafe help in developing a strong work ethic and learning about working of business,which
help him later at the time of starting his own business “The body shop”. Her main aim is to only
survive not to become rich. Roddick mother,put her to trained as a teacher. But his love to
adventure not able to resist in classroom which made her to travel the world. The journey,make
acquainted her with the rituals and customs of other world cultures,including the forms of health
and body care. All this thing help her in starting a new venture of body products.
CONCLUSION
In the reference to this project report, it is concluded that the effort of business concern
or the entrepreneurial ventures towards a growth of the region as well as nation. This file also
conducted a detailed study on the attributes of entrepreneurs and entrepreneurship. An
entrepreneur requires several qualities to become successful and their background or experience
will also impacts on their style of working.
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