The Importance of Entrepreneurship and Small Business

This assignment provides an in-depth analysis of entrepreneurship and small business characteristics, highlighting the essential skills, traits, and background experience required for success. It also discusses the benefits and drawbacks of entrepreneurship, including high risks, long-time success requirements, and the importance of impactful strategy. The report summarizes that a successful entrepreneur has different working approaches that help them to reflect in personality motivation and mind-set.

Entrepreneurial Ventures

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 3............................................................................................................................................1
P5 Characteristics, traits and skills of successful entrepreneurs.................................................1
P6 Aspects of the entrepreneurial personality reflect entrepreneurial motivation and mind-set 3
TASK 4............................................................................................................................................5
P7 Examine how background and experience can hinder or foster entrepreneurship................5
CONCLUSION................................................................................................................................6
REFERENCES ...............................................................................................................................7

INTRODUCTION
Entrepreneurship is known as skill and willingness of individual to develop a business
venture and manage all organisational activities properly. In this process, an entrepreneur create
innovative ideas and thoughts to implement them accurately in their business activities and
approaches. Their main objective is to take any kind of risk in order to make desirable profit and
income (Blackburn and et. al., 2013). Entrepreneurship and these ventures play a most important
role in economic development and growth. In this procedure entrepreneur provide their own
contribution to build appropriate goodwill in global marketplace. This report represent
Characteristics, traits and skills of successful entrepreneurs.
TASK 3
P5 Characteristics, traits and skills of successful entrepreneurs
Manager and entrepreneur are two different components of an organisation. A successful
entrepreneur have specific skill and characteristic which help them to achieve target objectives
and goals in appropriate manner. Manager is an individual who have an responsibility to
monitor, control and administer organisational activities while as entrepreneur is known as an
individual who create ideas to taking risk in order to set up a new venture. Characteristic, skills
and traits of successful entrepreneurs are different to each other as -
Bill gates – He is an successful entrepreneur who known as an business magnate and
investor. Bill gates is the founder of Microsoft Corporation. This organisation is world's largest
PC software company which was established in the year of 1975. Bill gates takes higher position
in the list of world's wealthiest people by their own skills and working approaches.
Giorgio Armani- He is an successful Italian fashion designer who formed his own
company Armani in 1975. This company is known as an world's luxurious shoes, watches,
fashion wears, accessories retail and manufacturing firm. Giorgio Armani is an successful
entrepreneur and designer of Italian origin (Bridge and O'Neill, 2012).
Characteristics, traits and skills of Bill gates -
 Hard work and confidence: This is a most important skills which is having by Bill gates
in their working approaches. An individual should have to work hard regarding their
business to achieve their future goals and objectives easily. For this they require to make
creative thoughts and ideas to implement them properly in their organisation. An
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entrepreneur requires to analyse each marketing aspect consistently to getting proper
information regarding customer's demand and further trends. These things help to make
desirable modifications and changes in organisational services.
 Planning: For a entrepreneur, it is require to make planning for their future objectives
and targets. These thinks helps to analyse and examine furthers issues and hurdles that
are going to arise in future. So for this they can easily make impactful strategy and plan
to reduce its negative impact and control them properly. In this procedure an entrepreneur
can easily create preplans about organisation's budget and management of financial
resources.
 Punctuality: Bill gates is a successful entrepreneur because they are very punctual in
their working approaches. These skills enhance ability of an individual to face several
challenges easily and appropriately. For an entrepreneur it is require to manage their
work and future task in appropriate manner to getting opportunities and future advantages
easily (Burns, 2010).
 Focused: A person should have to be focused toward their future goals and objectives
that they wants to achieve. For this they require to make appropriate plan and strategy to
follow their objectives properly. Through this they can provide guidelines and direction
to their workforce toward future goals and target as well.
 Quick learner : For an entrepreneur, it is require to adopt and learn several elements
quickly. Bill gates is quick learner and through this they easily accept new challenges or
advancement of technology and implement them in their business process. This
procedure helps to enhance skills and knowledge of an individual for further aspects.
Through this they can easily having competitive advantages, market position and
goodwill.
Characteristics, traits and skills of Giorgio Armani -
 Communication skills: For an entrepreneur, it is required to having impactful
communication skill that help them to understand their customers requirement, need and
issues to resolve them properly. Through this they can easily build strong and appropriate
relationship with target audience to getting long term benefits easily. Main objective of
this skill to understand service users desires and provide them higher satisfaction through
quality products (Dennis Jr, 2011).
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 Money management: This is a most important skill that an entrepreneur requires to
have. Through this they can easily manage financial resources and funds according to
their future objectives that are requires to achieve properly. For this a person should have
to be very focused toward their business approaches.
 Risk taking: This is a quality of entrepreneur in which they take any kind of risk in order
to make desirable profit and income. For this, they implement their creative ideas and
thoughts in their new venture to getting higher growth easily. Through this they can get
challenges and several opportunities from target market (Dunn and Liang, 2011).
 Flexibility: For an entrepreneur, it is require to implement flexibility in their working
approaches. This skill posses them to make changes and modification in their services as
well as products on the bases of customer's and market demand. Through this, they can
easily provide higher satisfaction to consumers. Giorgio Armani has quality and skill to
adopt advance technology in their business procedure and represent attractive products in
front of target market and audience as well.
 Problem solving skills: For an entrepreneur, it is require to analyse each and every
aspect properly to resolve issues and conflicts from their new venture. Through this, they
can easily build positive environment at their work place. These skills of and
entrepreneur helps to build positiver and impactful relation with their employees to
understand their requirement, problems and resolve them in proper manner.
P6 Aspects of the entrepreneurial personality reflect entrepreneurial motivation and mind-set
Entrepreneurs have specific skills and characteristics which make them different to
others. Through this, they motivate others to achieve future targets and goals. Their personality
includes different aspects as attitude, characteristic, working ability, quick thinker mind, risk
taking ability and creativity (Fassin and et. al., 2011). These personality reflect entrepreneurial
motivation and mind-set toward their new start up. Bill gates and Giorgio Armani are two
successful entrepreneur who create build their own venture successfully in market. Their
working approaches and characteristic motivate others to implement effectiveness in their
business strategy. In this process they focusing on many issues and problems that can affect their
business policy and procedure. Entrepreneurs always manage their funds, business approaches,
financial and others resources to build effectiveness in their business. These developing plans
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and strategy make them different to others. Bill gates and Giorgio Armani actively deals with
several issues and problems but they make impactful strategy to reduce its negative impact
easily. These skills and characteristic make them different and successful to others. To getting
higher business advantages they work with optimistic and positive mindset to achieve future
target and goals. There are some other personalities aspects of these entrepreneur are given
below as -
OCEAN theory
 Openness: For a entrepreneur, it is require to be open minded, optimistic and transparent.
For them it is important to face new challenges and adopt innovation to create a new era
easily (George and Bock, 2011). Through this they can easily motive others to work
effectively in optimistically. These type of thinking and working approach make them
different to others. For them it s require to adopt innovative idea and creative thoughts to
make desirable modification in their new venture.
 Conscientiousness: An entrepreneur should have to consistent and focused toward their
future objectives and business activities. For them it is require to be punctual to complete
their task and work to getting further opportunities easily. In this procedure they require
to analyse and examine each activity that affect their future objectives and goals. After
this they require to make impactful strategy to getting desirable outcomes.
 Extraversion: An entrepreneur should have to extrovert who manage effective
communication with other. Through they can easily understand requirement, need,
desires of their consumers. These activities also help to resolve issues and problems of
employees and consumers. A impactful communication always helps to build positive
relationship with others or in business these activities provide long term benefits. An
extrovert entrepreneur can easily adopt different ideas from others (Gorgievski and et. al.,
2011).
 Agreeableness: For an entrepreneur, it is required to be cooperative and trustworthy with
other. Through this they can easily handle challenging situation by understanding each
and every element in proper manner. These aspects helps to build positive relations with
others to getting long term benefits and others opportunities. Agreeableness helps to
cooperate with other situations in effective and proper way.
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 Neuroticism: This is basically determine emotions and feelings of an individual. This is a
personality trait of an entrepreneur that help to make them respond in different situation.
In stressful situations they perform like worse and then in ordinary situations they feel
frustrated and threatening. For an individual or entrepreneur, it is require to control
themselves while deal with these situations.
TASK 4
P7 Examine how background and experience can hinder or foster entrepreneurship
For an entrepreneur, it is require to manage their working skill in effective manner to
getting higher benefits easily. Each and every individual understand and learn their different
working approaches from their family, education and personal background. These are the
elements that help to enhance social values and lifestyle of a person. Some of these elements
helps to shape their career and further growth as well. It impacts positively or negatively on a
individual's working approaches (Henrekson and Sanandaji, 2014). A person learn several
element and objectives from their personal education. This is help to develop their career in a
positive way.
Benefits of entrepreneurship-
 Maximise Potential skills – Entrepreneurship is skill and willingness of individual to
start up a new venture in target market. This is help to maximise skills and working
ability of a person. Through this an individual easily enhance their skills as
Communication, Focused, Punctuality and confidence level as well.
 Creation of successful path – Entrepreneurship help to create successful path for an
individual to getting higher benefits easily. Through this a person can easily implement
their new ideas and thoughts in business process to getting higher benefits easily.
Through this they can easily get competitive advantages from target market.
 Contribution in development of society – Entrepreneur venture establish to provide
their own contribution in development of society and their lifestyle. Through this, they
can easily build effective and positive market value of an organisation. In this process,
entrepreneur analyse customer's and market demand to provide them quality products and
services in effective manner. Through this they can easily provide them higher
satisfaction.
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Drawbacks of entrepreneurship
 Large risks – This process consider higher risk while establishing a new venture in
market. It can be financial, manpower and resources utilization. For this entrepreneur
require to make impactful strategy to getting desirable profits and income as well
(Ligthelm, 2010).
 Requires long time to success – For successfully establish a venture, an entrepreneur
requires to take a appropriate time and duration. In this they require to implement future
strategy and planning to getting higher and desirable benefits easily.
CONCLUSION
As per the above report it has been summarised that entrepreneurship is desire and
willingness of an individual to start up a new venture successfully. In this process, they require
some specific and quality sills, traits and characteristic that helps to make them different to
others. All these approaches can be beneficial for them to achieving future objectives and goal in
appropriate way. A successful entrepreneur have different working approaches that help them to
reflect in personality motivation and mind-set. In this process their background and experience
reflect entrepreneurship ability of them.
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REFERENCES
Books and Journals
Blackburn, R.A. And et. al., 2013. Small business performance: business, strategy and owner-
manager characteristics. Journal of small business and enterprise development. 20(1).
pp.8-27.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small
business. Palgrave Macmillan.
Burns, P., 2010. Entrepreneurship and Small Business: Start-up. Growth and Maturity. Palgrave
Macmillan.
Dennis Jr, W.J., 2011. Entrepreneurship, small business and public policy levers. Journal of
Small Business Management. 49(1). pp.92-106.
Dunn, P. and Liang, K., 2011. A COMPARISON OF ENTREPRENEURSHIP/SMALL
BUSINESS AND FINANCE PROFESSORS'REACTION TO SELECTED
ENTREPRENEURIAL AND SMALL BUSINESS FINANCIAL PLANNING AND
MANAGEMENT ISSUES. Journal of Entrepreneurship Education. 14. p.93.
Fassin, Y., and et. al., M., 2011. Small-business owner-managers’ perceptions of business ethics
and CSR-related concepts. Journal of Business ethics. 98(3). pp.425-453.
George, G. and Bock, A.J., 2011. The business model in practice and its implications for
entrepreneurship research. Entrepreneurship theory and practice. 35(1). pp.83-111.
Gorgievski, and et. al., 2011. Small business owners' success criteria, a values approach to
personal differences. Journal of Small Business Management. 49(2). pp.207-232.
Henrekson, M. and Sanandaji, T., 2014. Small business activity does not measure
entrepreneurship. Proceedings of the National Academy of Sciences. 111(5). pp.1760-
1765.
Ligthelm, A.A., 2010. Entrepreneurship and small business sustainability. Southern African
Business Review. 14(3).
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