Impact of Entrepreneur Traits on Business Success

This assignment analyzes the relationship between entrepreneurial traits, firm characteristics, and business success, particularly focusing on Small and Medium Enterprises (SMEs) in Bangladesh. It examines research on personality traits, demographic factors, education, and the role of public procurement in fostering entrepreneurship. The task requires a critical evaluation of existing literature to understand how these factors contribute to SME success.

ENTREPRENEURSHIP
AND SMALL
BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1 ...........................................................................................................................................1
P1:Different types of entrepreneurial ventures and explaining how they relate to the typology
(different types) of entrepreneurship...........................................................................................1
P2: Similarities and differences between different types of entrepreneurial ventures...............2
P3: Impact of micro and small business on the economy.........................................................3
P4: Importance of small businesses and business start-ups on the growth of the social
economy......................................................................................................................................3
M1:Diverse range of entrepreneurial ventures to and an understanding of entrepreneurship in
both public and private sector.....................................................................................................4
M2:Evaluate the differences that small, medium and large businesses make to the economy...5
D1: Examining the scope, development and growth of entrepreneurship ventures....................5
D2: How small businesses have an impact on different levels of the economy.........................6
PART 2............................................................................................................................................6
P5: Characteristic traits and skills of a successful entrepreneur................................................6
P6: How entrepreneurial personality reflect entrepreneurial motivation and mindset................7
P7: How a person’s background and past experiences can hinder or foster entrepreneurship.. .7
M3: Examining different lines of argument relating to entrepreneurial characteristics............8
M4: Analysing the link between entrepreneurial characteristics and the influences of personal
.....................................................................................................................................................9
background and experience to successful entrepreneurs............................................................9
D3: Characteristic traits, skills and motivational drivers of successful entrepreneurs...............9
D4: Evaluate how background and experiences influences entrepreneurs, both positively and
negatively..................................................................................................................................10
CONCLUSION .............................................................................................................................10
References......................................................................................................................................11

INTRODUCTION
Present report is based on entrepreneurship and small business management.
Entrepreneurs play an important role in the growth of the economy. Different types of
entrepreneurs affect the economy in different ways. Report contain information like what are the
basic characteristics which should be there in every enterprise to be successful. Data is given in
the report how micro and small business enterprises affect or contribute in the growth of the
economy. Success of the any enterprise depend on many factors including the background of the
business owner including lifestyle, culture and many more(Blackburn, Hart and Wainwright,
2013). Success of every enterprise is directly link with the past experience of business owners.
Small enterprises plays a big role in the growth of the economy on various level including
local,regional or international. Enterprises has a scope of development and growth and by
describing this to the other people FSB can positively promote the entrepreneurship in the local
are.
PART 1
P1:Different types of entrepreneurial ventures and explaining how they relate to the typology
(different types) of entrepreneurship.
Entrepreneurship is a activity undertaken by a person in order to earn profit by undertaking
various business activities. Not all the entrepreneurs are same enterprises are same. They differs
in their size, number of employees work and fund invested in them. Types of entrepreneurial
ventures:
 Small business entrepreneurship: Groceries, travel agents, carpenters are the example of
small business enterprises. These are the enterprises start with very few number of
employees and very little finance is invested in the operations of these enterprises.
 Scalable start-up entrepreneurship: These are the enterprises who start the business
activity with an very innovative idea and attract a lot on investors or ventures capitalist to
invest in their business operations. These type of enterprise give focuses on searching an
innovative business model for their operations.
 Large business entrepreneurship: These type of enterprise activity start with a lot of fund
invested in its business activities(Bridge and O'Neill, 2012). These type of enterprises
offer variety of products to the customers.

 Social entrepreneurship: These enterprises are the innovators who make the [product in
order to solve the social problems. Profit earning is the secondary object of these
enterprises. These type of enterprises can be profit or non profit enterprises.
Types of topologies:
 Skeptical entrepreneur: These entrepreneur examining the business opportunities in order
to achieve the success.
 Research entrepreneur: These type of entrepreneur undertake the research in order t6o
learn something new and different.
 Determined entrepreneur: These type of enterprises attain or try to achieve success
without copying the idea of any successful enterprise.
P2: Similarities and differences between different types of entrepreneurial ventures.
Type of enterprise Similarities Differences
Small v/s large business
entrepreneur
Both enterprises undertake the
business operations to generate
profit from it(Burns, 2010).
The main difference between
these two enterprises is that
small amount of fund is
invested in the business
activities of small business
enterprises. On the other hand
large amount of funds is
invested in the business
operation of large business
enterprise.
Social v/s scalable business
enterprises
Both the enterprises start with
a very innovative and both
enterprises work in order to
satisfy the needs of the
customers.
Social enterprises can be nin
profit or can be profit oriented
whether on the other side
scalable start top business
undertake all the business
activities in order to make the
profit.

Different type of enterprises undertake the operations in order to achieve some goal and it is not
necessary that all the enterprises share the same goal or objective(Carland, Carland and Stewart,
2015). Objective of every enterprise is different from the other.
Objectives of small business enterprises:
 Profitability
 Productivity
 Customer service
 Growth
 Change management
Objectives of medium business enterprises:
 Capture large market share
 Finance management
 Employee growth
 Competitive analysis.
Objectives of different types of enterprise can only be achieved if they pose or have the traits or
characteristics which should be there in every enterprise to be successful.
P3: Impact of micro and small business on the economy.
Small businesses plays an important role in the growth of the economy. These business
starts with an very innovative idea and attract lot of investors in investing fund by providing
them an opportunity to earn high returns on their returns. These enterprises provide or generate
employment opportunities for the unemployed people of the nation contribute in increasing their
standard of living. These enterprises help in growth of the local economy by providing
employment. These enterprises give chance to the small skilled labour to show their talent to the
world(Carraher and Paridon, 2015). Talent of these skilled labour attract a lot of people and
investors from the country and contribute in increasing the level of economy in the international
level. These enterprises earn foreign currency and helps in growing the economy of the country.
P4: Importance of small businesses and business start-ups on the growth of the social economy.
Small businesses and business start ups helps a lot in the growth of the social economy of
the nation. These are the backbone of the UK economy and plays an essential role in the job
creation, introducing new products and markets and contribute a lot in the growth of the
economy. Main contributions of small business enterprises including innovation, employment

and adaptability in the UK economy(Chittithaworn and et.al., 2011). Small business enterprises
act as a important seedbed for new innovations. Other than this these plays a critical role in
driving economic growth. These enterprises increase competitive and attract large number of
visitors and investors. These helps in adding variety to the towns and cities and play an
important role in serving many communities in which they lived or based. These enterprise
increase competitiveness in the market and as a result their turnover also increases and aggregate
productivity also increases. Figures published by government of UK shows that 2.61 million
average jobs created by these enterprises between the year 1998 to 2010. These enterprises
provide a lot of help to the large companies by providing them vital resources and helps them in
completing their business operations. Such companies are able to better attract and provides
training to the new talent in order to develop innovative products. They make better in order to
satisfy or serve to the needs of the local communities. They contribute a lot in terms of creativity.
M1:Diverse range of entrepreneurial ventures to and an understanding of entrepreneurship in
both public and private sector.
There are four types of entrepreneurial ventures including small business enterprise,
social enterprises, large scale enterprises and scalable start up business. Small businesses
enterprises are the one which undertake business operations on a small level and less number of
employees work in it. These type of enterprise play an important role in the growth of the
economy and providing employment opportunities to the people of nation. On the other hand
large enterprises are the one whose annual turnover is very high and these enterprise undertake
business operations on a big level and also do international transactions. Scalable start up
enterprises are the one whose main motive is to capture a greater market share by providing
innovative products to the people of the country(Fassin, Van Rossem and Buelens, 2011). Social
enterprises is the another type of entrepreneurial venture whose main objective is to solve the
social problems. Profit is the secondary objective of these enterprises.
Entrepreneurship activity can be undertake by both public and private sectors. Way of
doing the work or undertake business operations is different in both the sectors. Study has
revealed that business activities of private sector enterprises are more effective than public sector
enterprises. Due to the economic recessions public enterprises face a lot of problems in carrying
out business activities. These changes force the public sector enterprises to renew their business
activities in order to increase the efficiency.

M2:Evaluate the differences that small, medium and large businesses make to the economy.
Many businesses starts with an innovative idea of one person. That person can be the one
who identify a gap between in the market and then in order to fulfil the gap that person undertake
business activities. These enterprises known as small business entrepreneurs who undertake
business operations on a small scale. Today's small business create lot of innovative products and
undertake innovations for the future generations in order to satisfy their needs(Dennis , 2011).
Today most UK businesses are small and contribute a lot in the growth of the economy.
Medium business enterprises are the one who undertake business operations on a large
level than small enterprises and on a small level than the large enterprises. These enterprises is a
link between small and large business enterprises. These enterprise provide financial help to the
small business enterprises and in addition these enterprises equipments to the large businesses.
Large business enterprises are more productive, pay higher wages and enjoy higher
profits and achieve more success in the international market. A country's economic performance
can be study by the number of big corporations in it. Most of these enterprises are export firms
and undertake lot of research and development. These enterprises contribute a lot in the growth
of the economy. These enterprise undertake export transactions and affect the intentional
economy. Government of the country give much emphasis on these enterprise as they generate
lot of profit every year and contribute a lot in GDP.
D1: Examining the scope, development and growth of entrepreneurship ventures.
In order to positively promote the entrepreneurship in the local area manager of FSB need
to critically study the scope and development of the entrepreneurship ventures. In today's market
the tastes and preferences of the customers are changing very fast and every enterprise tries to
study these needs in order to make an effective product to satisfy the demands of the customers.
There is a big scope of entrepreneurs because of the changing needs and demands of the
customers. Small enterprises can study the unsatisfied needs of the customers and then start the
business operations in order to satisfy the needs of the customer(Gorgievski, Ascalon and
Stephan, 2011). As these enterprises help a lot in increasing the overall GDP of the country and
contribute a in the growth of the company, government also provide various support to these
enterprises. These enterprises increase the standard of living of the people of the nation by
providing employment to them which indirectly helps in growth of the economy.

D2: How small businesses have an impact on different levels of the economy.
Small business enterprises have lot of impacts in the overall economy of the country.
These enterprises affect all the level of economy including local, regional and international.
These enterprises affect the economy of the country on local level by providing employment
opportunities. This affect the economy on international level by attracting large number of
visitors and investors from different countries. Because these enterprises affect the economy of
country in various ways so proper emphasis should be given on these industries in order to
increase their contribution in the overall development of the nation.
PART 2
P5: Characteristic traits and skills of a successful entrepreneur
There are number of characteristics which should be there in every entrepreneur to be successful.
These characteristics include the following:
 Passion motivation:- the every successful enterpriser has main key factor behind the
success i.e. passion to the business and the motivation. The passion help to create the
ideas for the business and motivation helps to force the entrepreneur to start the business.
 Risk taking:- the entrepreneur has the common characteristics of the risk taking. The
successful entrepreneur is always ready to face the risks which arises in the start up of
the business and in the ongoing business(Islam and et.al., 2011). By taking risk a
successful entrepreneur tries to eliminate the occurred risk within the organisation.
 Self believe and hard working:- the self believe and hard-working is the main
characteristics of the successful entrepreneur. The person beliefs in its decisions and
works hard for the achievement of the goals and objectives.
 Adaptability and flexibility:- the entrepreneur adapts to all the environment and tries to
grab the opportunities in the business world by eliminating the negative impacts of the
working environment.
 Money management:- the entrepreneur uses the fund available in the effective manner
and tries to grab the more benefits from the funds applied in the organisation. The proper
utilisation of the money helps the entrepreneur in increasing the profits and the success.
 Planning:- the successful entrepreneur is a good planner who plans significantly for the
achievement of the targets and goals. The good plans helps the entrepreneur to achieve
the targets within the time frame. The successful entrepreneur don't do over planning.

P6: How entrepreneurial personality reflect entrepreneurial motivation and mindset.
The personality of the entrepreneurial reflect the human mind set and their motivation.
This personality determine the improver in the organisation(Lee-Ross and Lashley, 2010). This
is create the many improves in the business and develop the best decision in this environment.
This personality also improving the company innovation plan and innovative ideas. As a advisor
of the company also create the human mindset and their motivation related to the work process.
As a superstar determine the product brand in the organisation. Their personality create the
human mindset related to the company product and environment.
The entrepreneur develop the best objectives and goals in the organisation. Advisor
create the personality of the entrepreneur this is define the human mind set related to the
company product and process of the new entry in the organisation. Personality reflecting the
human motivation theory including the self respect and their needs and wants in the company.
This is very important to develop the best plan ad smart objectives in the organisation. It
personality also reflecting the self actualisation that define the human creativity and
memorability in the organisation.
As a decision maker create the human mind set related to the product decision and
innovation of the company structure. This personality create the human attraction of the product
and places in the organisation. This is also define the many process and strategies of the human
development. Personality change the human mind set related to the purchasing the product and
developing the value of the organisation. As a innovative create the innovative plans and ideas
and develop the best decision regarding to the human mind set and their needs and wants.
P7: How a person’s background and past experiences can hinder or foster entrepreneurship.
Person's past experience refers to the learnings which affect the present decision taken by
the person or business owner. A recent study done in the UK discloses the fact that experience of
the business owner affect the decision making ability of the person. It is experience which can
affect the or motivate the entrepreneurs to undertake an innovative entrepreneurship. Innovative
entrepreneurship require lot of skills and ability to manage the change. A number of personal
attributes affect the innovative entrepreneurship. Skills and experience of the person have a
positive impact on the business activity because they provide basis for taking decisions.
Experience helps the business owner in taking more useful decisions relating to the business. It is
well said and many people believe in the fact that learning by doing. Learning by doing is the

best learning and a person gain the experience after doing many activities or taking important
decisions.
M3: Examining different lines of argument relating to entrepreneurial characteristics.
Characteristics include that basic traits or qualities which should be there in an enterprise
to be successful. There are large number of qualities describes by many authors which should be
there in every enterprise to be successful but the basic characteristics include risk taking
ability(Ligthelm, 2010). Taking risks means try something new undertake something new in
order to make a new product for the different communities. Whenever a company introduce a
new product before the public that there are both chances chance of success or chance of failure
so product innovation is a very risky concept same like this there are number of concepts or
decision taken by the companies of heavy risk. Whenever a company adopt any new technology
or taking complex decisions all these associated with a heavy risk so every company or firm has
to take risk in the business operations. If the firm fails to take risk than the firm can not achieve
the desired so risk taking is the essential characteristic which should be there in every enterprise
to be successful other than this there are number of characteristics which should be there in the
enterprises to be successful and these characteristic include the following:
 Motivation
 Creativity
 Versatility
 Vision
 Flexibility in business operation
 Skilled labour
These are the characteristics which should be there in the enterprise to achieve success. If any
enterprise has lack of capabilities than it will hinder the success of the enterprise. More skilled
the enterprise more easily it will achieve its objectives.
M4: Analysing the link between entrepreneurial characteristics and the influences of personal
background and experience to successful entrepreneurs.
There is direct link between the success and enterprise's characteristics. Characteristics of
the enterprise include its skilled labour, enterprise's own capability and many more factors. More
skilled will be the employees more there are chances that enterprise will achieve the success in
the competitive business market(Neck and Greene, 2011). Human resources are the big assets of

the enterprise. It is very necessary for every enterprise to give proper attention to the recruitment
process of the enterprise because recruiting high skilled labour will contribute more in the
success of the enterprise. And if the employees of the enterprise does not have the skills to face
the competition than it is the duty of the manager of the enterprise to conduct a training and
development programme for enhancing the skills of the labour in order to make them ready to
face the competitive work environment. Enhancement in the skills of the enterprise will
contribute a lot in the success of the enterprise.
In addition to the above one can see that there is a direct link between the personal
background and the decisions taken by the business owner. Personal background refers to the
family, family, education, culture and many more things. These factors help in making the
personality of the individual and personality affect the type of decisions taken by the business
owner. If the personality of a business owner is like that which influences him to take risk and
do the innovative things than that business owner will implemnt the innovation concept in the
business.
D3: Characteristic traits, skills and motivational drivers of successful entrepreneurs
As mentioned above there are number of characteristics which should be there in every
enterprise in order to achieve the success or desired results. Skills contribute a lot in the success
of the enterprise. Skills of the labour or managers of the enterprise helps them in perform their
duties more effectively and take better decisions in the benefit of enterprise. This is the
responsibility of manager of the enterprise to do or undertake every decision in order to enhance
the skills of the employees because employees plays an important role and contribute a lot in the
growth of the enterprise(Nga and Shamuganathan, 2010). Other than this in order to enhance the
skills of the enterprise or achieve it is very essential for every enterprise to implement the
innovation concept in the business operations. Skills include effectively managing the financial
reports of the enterprise. Other than this basic skills which should be there in every enterprise to
achieve success include commercial awareness, problem solving skill, innovative thinking and
many more.

D4: Evaluate how background and experiences influences entrepreneurs, both positively and
negatively.
Most of people think that experience of the business owner affect the present business
operations in positively way only but this is wrong because it can be possible that business owner
experience failures in the past and these failures affect the current decision taking ability of the
firms. If the enterprises achieve success in the part that this positive experience will influence the
businesses to take risk in the future also and this will influence the employees of the enterprise to
do the tasks in an innovative way(Preuss, 2011). On the others side if the experience of the
enterprise is negative or enterprises faces a lot of failures in the past than this will hinder the
decision making ability of the business owner and employees of the firm also and this will results
in that employees will lose the confidence in undertaking business activities.
CONCLUSION
From the information given above in the report it can be concluded that entrepreneurs
plays a big role in the overall growth of the economy of nation. This activity affect the economy
in all the levels including local, regional or international(Raposo and Do Paço, 2011). These
enterprises starts with an innovative ideas to attract large number of visitors and investors in
order to invest the funds. Small business enterprises are the backbone of the UK economy and
government of the UK should give more emphasis on these in order to increase their contribution
in the economy.
References
Books and journals

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