Entrepreneurship and Small Business

This report focuses on exploring the various types of entrepreneurial ventures, assessing the impact of small businesses on the economy, and determining and assessing key aspects of entrepreneurial mindset. It also examines the characteristics, traits, and skills of successful entrepreneurs and analyzes the aspects of entrepreneurial personality that reflect motivation and mindset. Additionally, it examines the background and experience of business owners that hinder or foster success.

Entrepreneurshi
p and Small
Business

Contents
INTRODUCTION...........................................................................................................................................3
Activity 1......................................................................................................................................................3
Brochure..................................................................................................................................................3
Activity 2......................................................................................................................................................4
TASK 3.......................................................................................................................................................4
P5. Determine the characteristics traits and skills of successful entrepreneurs which differentiate them
from other business managers..................................................................................................................4
P6. Analyse the aspects of entrepreneurial personality which reflect motivation and mind-set...............5
M3. Explore different lines of argument relating with business owners characteristics...........................6
D3. Demonstrate traits, skills and motivational drivers of successful entrepreneurs with example.........7
TASK 4.......................................................................................................................................................7
P7. Examine background and experience of business owners that hinder or foster in achieving success 7
M4. Analyse the link between entrepreneurial characteristics that influence personal background and
experience to specific successful entrepreneurs.......................................................................................8
D4.Critically evaluate background and experience which positively or negatively affects in business...8
CONCLUSION...............................................................................................................................................9
REFERENCES..........................................................................................................................................10

INTRODUCTION
Entrepreneurship refers to setting up of an enterprise by taking a huge amount of risk. An
entrepreneur is referred as a person who takes risk to start up a business (Arvanitis and Stucki,
2015). Entrepreneurship as an activity involves the use of creativity and innovation so that a
business can make more profits. There are various types of enterprises which can be classified
into small, medium and large. It involves taking risk and involves determination on the part of an
entrepreneur to succeed against all the odds. This is what makes it different from other activities.
Thus overall as an activity entrepreneurship is quite effective in generating employment as well
as also provides innovative products and services to the customers. In this report, focus will be
made on exploring the various types of entrepreneurial ventures present, assessment of impact of
small businesses on the economy, determination and assessment of key aspects of
entrepreneurial mindset. Additionally, focus will be made on different types of environments that
hinder or foster the process of entrepreneurship.

Activity 1
Brochure

Activity 2
TASK 3
P5. Determine the characteristics traits and skills of successful entrepreneurs which differentiate
them from other business managers
Characteristics of an entrepreneur-
 Innovator- An entrepreneur is an innovator who is able to bring innovations in the
products and services in the enterprise. It is a top-priority for an entrepreneur and
therefore the focus point of the entrepreneurial needs and requirements.
 Risk-taker- An entrepreneur is a risk-taker who takes high-level of risk to start a
business venture.
Characteristics of a business manager-

 Director- A business manager acts as a director and gives specific instructions to the
staff of the organizations. In this way the business manager ensures that the work is done
in a proper manner in the company.
 Administrator- A business manager is an administrator who is able to administrate in an
effective manner in the organizations. Therefore, a business manager is a person who is
able to do proper administration in the company.
Distinction between Entrepreneur and Business Manager-
Basis Entrepreneur Business Manager
Risk More risk is taken by an
entrepreneur when
compared to a Business
Manager.
Less risk is taken by a
business manager when
compared to an
Entrepreneur.
Innovation An Entrepreneur is able to
innovate effectively and
bring new products and
services.
A business manager does
not focuses much on the
innovation aspect.
Ownership An Entrepreneur is the
owner of the business.
A business manager may
not be the owner of a
business.
The example of two entrepreneurs has been applied in this project which is Elizabeth
Sarah Gooch and Tom Mercer that demonstrate their characteristics and skills as an inspiration
for other business managers to succeed. It is mentioned below as:-
Elizabeth Sarah Gooch:-
Characteristics:- This refers as the personality of behaviour or trait of an entrepreneur
which describes the ability of business owner to perform their actions with the motive to achieve
success in future (Das and Das, 2014). Some of these characteristics are expressed as under:-
 Target-Oriented:- The business owner perform their actions with motive to achieve
their target efficiently that create opportunity for growth and development of business to
remain stable. The Elizabeth Gooch is highly target-oriented as the goal of enterprise has
to be accomplished whether there may be any circumstance.
 Decision-maker:- It is the ability to develop innovative idea for strategic decision-
making procedure in planning to compete with rivalry. The Elizabeth Gooch is able to
forecast strategic marketing plan in order to sustain in perfect competition market with
their consecutive success.
Skills:- A skill is the ability of an entrepreneur to perform its actions in accordance with
the capability to fulfil determined result by giving time, energy, money, etc. Some of the skills
are mentioned below as:-

 Creative:- This skill refers as to generate creative management procedure that encourage
employees to perform action by building relation through engagement and involvement
(Gaddefors and Anderson, 2017). The Elizabeth Gooch is creative nature as it has the
capability to expertise their action which improves efficiency for achieving success.
 Communication skills:- It is the ability of an entrepreneur to communicate with
managers, leaders and employees through soft spoken skills that result in accomplishment
of goals and objectives. The Elizabeth Gooch has good communication skills as she
analyse verbal and non-verbal gestures of employees.
Tom Mercer:-
Characteristics:- The traits of a person are qualities or features that belong to them as
recognisable and as inspiration for other business managers being an ideal by leading them to
complete their task with eagerness. Some of these characteristics are explained as:-
 Self-Motivated:- The entrepreneur is motivated as it aims to achieve goal effectively and
efficiently by developing innovative idea and encouraging workers through tangible and
intangible rewards (Heinonen and Hytti, 2016). The Tom Mercer is self-motivated by
building employee relation through engagement and involvement that result in
achievement of success.
 Enthusiastic:- It is the intense enjoyment, interest or approval that getting pleasure of
good attitude for providing satisfaction to their customers with the ability to meet their
requirements. The Tom Mercer focus on pursuing dreams of fully utilising scarce
resources that leads to sustain in global market.
Skills:- It is described as the ability to do an activity or job well as being practiced again
and again which improve effectiveness and lead to achieve success by competing with rivalries.
This is further categorised into two domain-general and specific skills. Some of these skills are
described below as:-
 Build relations:- The main purpose of entrepreneur is to build relations among
employees by encouraging them to perform their task with co-ordination. The Tom
Mercer has capability to deal their business actions with engagement and involvement to
create opportunity for growth and development of business.
 Determination:- It is the role and responsibility of business person to direct and control
actions performed by their workers for restricting errors through corrective measures. The
Tom Mercer is determined as the ability to accomplish its target by analysing risk and to
manage them efficiently for remaining stable in global market.
P6. Analyse the aspects of entrepreneurial personality which reflect motivation and mind-set
The entrepreneurial personality trait is described on the basis of Ocean Personality Trait
which describes various factors of business owners while dealing with managers and employees
(Islam, 2014). The main purpose of every entrepreneur is to sustain in perfect competition

market through their internal strength to control weakness and external opportunity to overcome
threats.
Ocean Personality Trait:- This trait is also known as Big Five Personality Trait which
was developed in 1980. It is the model used to comprehend relationship between personality and
academic behaviours. Managers of Aldgate Angels implement this model to examine the various
personality and characteristic traits of their customer for building relationship in order to meet
their requirement through supplying qualitative products.
 Openness:- It is the ability of being open to managers and leaders by sharing their views
and information through meeting and analysing their performance capability to achieve
organisation goals and objectives (The Big Five Personality Traits, 2019). Managers of
Aldgate Angels can use this trait for being frank and open to their managers by
motivating them to perform their action with active participation. The Tom Mercer is
capable to learn new things and enjoy various experiences that usually scores high in
openness. It is essential for an entrepreneur to be more insightful and imaginative having
wide variety of interests.
 Conscientiousness:- This trait describes people with high degree of conscientiousness
are reliable and prompt (S usa and Novello, 2014). It includes personality of being
organised, methodic and thorough. Managers of Aldgate Angels have the tendency to
display self-discipline, act dutifully which relate people to control, regulate and direct
their impulses.
 Extraversion:- It is the trait which describes excitability, sociability, talkativeness,
assertiveness and high amounts of emotional expressiveness (Johnstone, 2016). The
Extraverts gets the energy and drive from others while introverts are self-driven from
driving themselves. Managers of Aldgate Angels can use this trait for dealing their
business activities by encouraging their manager to achieve individual and organisational
goal and objectives through giving rewards. These include bonus, incentives, promotion,
performance appraisal, security, life insurance, etc. The Elizabeth Gooch is capable of
talking to their employees related with their personal and official problems by co-
ordinating with them in problems through emotions.
 Agreeableness:- This personality involves warm, friendly, compassionate and co-
operative trait for being kind, affectionate and sympathetic. The people with lower levels
of agreeableness are more distant and have more competitive strategy to manipulate their
role. Managers of Aldgate Angels are willing to compromise their interest with others
through optimistic view of human nature. The company is beneficial in predicting
transformational leadership skills to sustain in perfect competition market through their
competitive strategies.
 Neuroticism:- It is also known as emotional stability trait which relates to degree of
negative emotions. People scores high on neuroticism often experience emotional
instability and negative emotions of entrepreneur (Kabange, 2019). Managers of Aldgate

Angels focus on the behaviour of entrepreneurs which includes being mood swings,
anxiety, irritability, sadness and tense. The company is mostly affected by the mood of
entrepreneur as it is the capability of business person to be patient and to control their
anger for controlling the actions of employees that result in stability at global market.
Elizabeth Sarah Gooch-
Family upbringing-
Due to her family background and the values which she received from her family
Elizabeth Sarah Gooch was able to become a successful entrepreneur. Therefore in this
manner family upbringing has helped her to become a successful entrepreneur.
Personal Motivation and Drivers-
The drive to do something new and the motivation to do something creative made sure
that Elizabeth Sarah Gooch was able to achieve the desired level of success.
Tom Mercer-
Family upbringing-
Due to the family upbringing, Tom Mercer was able to become a successful entrepreneur
because of the values given to him by the family.
Personal Motivation and Drivers-
The personal motivation and drivers were important for Tom Mercer to be able to
succeed in the field of entrepreneurship.
M3. Explore different lines of argument relating with business owners characteristics
The entrepreneurial characteristics traits and skills display the factors of values,
behaviours, ethos, norms, rules and regulations and code of conduct. It further describes the
family upbringings, lifestyles, cultural differences and personal motivational that drive
entrepreneur to co-ordinate with their managers, leaders and employees. These characteristics
trait and skills lead the whole organisation to achieve success through building employee
relations with engagement and involvement that create opportunity to sustain in global market.
D3. Demonstrate traits, skills and motivational drivers of successful entrepreneurs with example
The example of two entrepreneurs have been selected such as Elizabeth Gooch and Tom
Mercer whose characteristics are described as target-oriented, decision-maker, self-motivated and
enthusiastic. The skills of those business people are creative, communication skills, build relation
and determination. These entrepreneurs are highly characterised as:-
 Risk Assessment:- The entrepreneurs mainly deal with undertaking risk through
assessing its negative impact and how to control it with an effective manner to sustain in
perfect competition market. It is the main role and responsibility of every business person
to take risk as with the assumption that where there is a risk there is way to success.
 Risk Measurement:- The owners of business analyse the negative impact on business
and develop strategic decision-making procedure to minimise with the ability to attain
profits in future with capital generation.

TASK 4
P7. Examine background and experience of business owners that hinder or foster in achieving
success
The two examples of entrepreneur have been taken as Elizabeth Gooch and Tom Mercer
that are mentioned below with their background and experience. It is further analysed that how
their surroundings and practice of skills hinder or foster their business in achieving success. This
is explained as under:-
Elizabeth Gooch:-
 Background:- The background refers as the involvement of family, friends, relatives,
etc. The Elizabeth is daughter of William Villa-Real and was born on 27th June, 1757 to
June 1807. It was performing as an actress within a theatre company at Portsmouth. She
was also involved in liaisons with various princes and military leaders (Lekhanya and
Mason, 2014). It depict favourable and unfavourable affect on business by providing
funds from personal saving of their relatives. The Elizabeth Gooch has qualified her
education as being an English writer and further became Chief Executive Officer of EG
Solutions PLC. This foster business in accomplishment of success by easy available of
funds from family members that leads to have capital generation in future by properly
managing the risk undertaken.
 Experience:- The Elizabeth Gooch have not experienced in any other business before
which might create threat as there may be possibility of attaining large number of
mistakes while performing actions in business. The experience hinder business person as
she is not able to properly manage the business activities which delay in accomplishment
of success and poses uncontrollable risk to sustain in global market.
Tom Mercer:-
 Background:- The background refers to the surroundings of an entrepreneur which
includes friends and colleagues. The Tom Mercer was born on 10th November in 1964 at
Pittsburgh (Pennsylvania). He was a former professional tennis player from United States
of America (USA). The Tom Mercer has been post graduated in Master of Business
Administration and Master of Science. He is product manager of OPOWER as being
working for Software Company that provides behavioural energy efficiency. The
surroundings of business person hinder in accomplishment of success as they describe
that there is already various business in family which creates high competition to sustain
in perfect competition market.
 Experience:- The entrepreneur is positively affected as it have experienced a lot of new
practices while performing actions in various business (Michael, 2014). It foster the
entrepreneur to achieve success as it creates opportunity to restrict errors which occurred

in past life experiences that improve effectiveness and result in accomplishment of goals
and objectives efficiently.
Risks and uncertainties in a business start-up-
 Financial risk- There is a presence of financial risk in a business start-up. Therefore,
when the entrepreneurs are focusing on starting of something new then they should be
able to develop right strategies to mitigate the financial risk.
 Market risk- There is a risk in a business start-up in the market because the idea can fail
also. Therefore, the entrepreneurs should properly research on the idea before bringing it
in the market.
M4. Analyse the link between entrepreneurial characteristics that influence personal background
and experience to specific successful entrepreneurs
The link between entrepreneurial characteristics that influence personal background and
experience through improving operation, decision-making process, innovative ideas, quality and
time management. It is the ability of entrepreneurs to take risk with the possibility of managing it
effectively for attaining high return in future. The main purpose of every business owner is to
control its risk and threats that might negatively impact the sustainability of enterprise for
achieving success and to eliminate errors through their corrective measures.
D4.Critically evaluate background and experience which positively or negatively affects in
business
The experience and personal background of entrepreneurs may sometimes create hinder
or foster for business in achieving success. This encourages business to sustain in perfect
competition market by creating opportunity for growth and stability that increase the brand
reputation in the global market. The background and experience obstruct business in
accomplishment of success by increasing conflicts with relatives and describing that there is
already high competition in market.
CONCLUSION
From the above report, it can be concluded that entrepreneurship is a process of taking
risk in order to start a business. It aims to provide creative and innovative products to the
customers. An entrepreneur is a person who takes a lot of risk in setting up an enterprise.
Entrepreneur has to display certain qualities while taking up entrepreneurship as a profession
because these qualities are essential for ensuring success. There are different types of ventures
which can be termed as entrepreneurial, there are similarities and differences between these
ventures. There is a significant impact of entrepreneurial ventures on the economy of the
country. Entrepreneurship can impact social economy at different levels. Also, there are certain
characteristics and traits which make entrepreneurs different from other individuals and there are
different aspects of an entrepreneurial mindset. Background and experience of individuals can
either foster them towards entrepreneurship or hinder them from it.

REFERENCES
Books and journal
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Das, S. S. and Das, A., 2014. India shining? A two-wave study of business constraints upon
micro and small manufacturing firms in India. International Small Business
Journal. 32(2). pp.180-203.
Gaddefors, J. and Anderson, A. R., 2017. Entrepreneursheep and context: when entrepreneurship
is greater than entrepreneurs. International journal of entrepreneurial behavior &
research.
Heinonen, J. and Hytti, U., 2016. Entrepreneurship mission and content in Finnish policy
programmes. Journal of Small Business and Enterprise Development.
Islam, A., 2014. Economic growth and crime against small and medium sized enterprises in
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Johnstone, B., 2016. Ethnographic methods in entrepreneurship research. Lulu. com.
Kabange, M. M., 2019. The interplay of different types of capital on amplifying small business
entrepreneurship performance in Cameroon: a case of Douala and Yaounde (Doctoral
dissertation).
Lekhanya, L. M. and Mason, R. B., 2014. Selected key external factors influencing the success
of rural small and medium enterprises in South Africa. Journal of Enterprising
Culture. 22(03). pp.331-348.
Michael, S. C., 2014. Can franchising be an economic development strategy? An empirical
investigation. Small business economics. 42(3). pp.611-620.
Sousa, C. M. and Novello, S., 2014. The influence of distributor support and price adaptation on
the export performance of small and medium-sized enterprises. International Small
Business Journal. 32(4). pp.359-385.
Online
The Big Five Personality Traits. 2019. [Online]. Available through:
<https://www.verywellmind.com/the-big-five-personality-dimensions-2795422>