Analysis of Entrepreneurship and Small Business Management

This assignment provides a detailed analysis of various studies and research papers related to entrepreneurship and small business management. It covers topics such as the role of micro and small enterprises in economic development, the impact of experimental basic managerial training on productivity, and the importance of social entrepreneurship and sustainability. The assignment also touches on international entrepreneurship policy research, entrepreneurial behavior and risk, and the future trajectory of entrepreneurship.

ENTREPRENEURSHIP AND
SMALL BUSINESS
ENTERPRISE

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 Types of entrepreneurial ventures..........................................................................................1
P2 similarities and differences between different types of entrepreneurship ventures..............2
Differences between micro, small and medium sizes enterprises :.............................................3
Scope of entrepreneurship :.........................................................................................................4
Roles of private enterprises :.......................................................................................................5
role of public enterprises ;...........................................................................................................5
M1...............................................................................................................................................5
P3 Micro and small businesses impact on the economy.............................................................6
P4 Importance of small scale business and business starts ups on the growth of social
economy......................................................................................................................................6
M2...............................................................................................................................................8
P5 Factors which makes a successful Entrepreneur ...................................................................8
M3...............................................................................................................................................9
P6 Personality of entrepreneur reflect on entrepreneurial motivations and mindset ................9
P7 How background and past experience can effect on foster entrepreneurship.....................10
M4............................................................................................................................................11
D3 .............................................................................................................................................11
D4 .............................................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneurial defines as the innovations and creativity to develop business. Small
business enterprises are an independent authority. New or existing small business are supported
by SBDC (small business development corporation). Present report is based on small business
that carry to make development in further aspects (Burns, 2016). In addition to this, it covers
different types of entrepreneurial ventures. Furthermore, roles, characteristic, differences of
several entrepreneurs describes. Moreover, it helps to provide small business part to create
growth and effective results. At last, there are different entrepreneurs describe who possess
innovative characteristics. (Burns, 2016)
PART 1
P1 Types of entrepreneurial ventures
There are four types of entrepreneurial ventures like small business entrepreneurship, scalable
start up entrepreneurship, large company entrepreneurship and social entrepreneurship.
1) entrepreneurship of small business : In a small business entrepreneurship, they hire local
employees or members of family. These types of businesses are barely profitable.
Anyone who runs their own business, are entrepreneurs(Burns, 2016.). The main aim of
these types of business is to fulfil the needs and requirements of the family and then make
a profit, to take over any industry is not aim of these types of business because they don't
provide the scale to attract capital of ventures . Related to the typology of small
enterprises there are some kinds of benefits like : less time in solve the problems of
customer, easy to handle client's concerns and questions immediately, ability to giving
services to the customers. In small enterprises, they are able to send experts on a lesser
cost. Overheads cost are lesser than other enterprises, it is more flexible because of
accepting market conditions immediately(Schaper, And et.al., 2014).
2) Entrepreneurship of scalable start-up : where small business means risk and return is
reasonable, whether scalable start-up means risk and return is unreasonable. The vision of
the scalable start up business is to make a large or new market, they willing to make best
of time and money(Lofstrom,, Bates, and Parker, 2014). In the order to related with
typology of entrepreneurship, there are some benefits like independence to choice all
aspects, entering cost is low, high quality of life, independence to ask question and so on.
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3) Entrepreneurship of large company : there are requirements to create new products and
to sold into new customers. In an entrepreneurship of large company there are changes in
legislation, new technologies and taste of customers(Amato, And et.al., 2017). There are
some benefits in according to related with typology of entrepreneurship like :
 accessibility to finance
 expansion and growth
 higher capacity to take risk
 talent of attracting customers
 benefits from many types of advertisement
 overhead cost will be lesser
 labour division
4) Social entrepreneurship : these are innovators or entrepreneurs who focus on creating that
products or services which can solve the social problems and needs. By using of other
entrepreneurs and start up companies, they develop fund and investment to solve the problems of
environmental issues. This entrepreneurship is applicable to different type of organization with
variety of sizes and beliefs(Burns, 2016). Social entrepreneurship is facilitated by using of social
networking sites or social media websites. Social entrepreneurship is not a new idea but in
present time it has become a popular among academic research. Social entrepreneurship can be
divided into different categories like community based, social responsibility based, society
economic based or industry professionals based. These enterprises are the best way to raise
capital of an organization by relating with typology of entrepreneurship. It is easy to promote and
marketing of their product and service. It is cost effectiveness enterprise. (Burns, 2016)
P2 similarities and differences between different types of entrepreneurship ventures
Differences between private or public sector entrepreneurship ventures :
Private sector Public sector
Structure of organisation Structure of organization is
easy to understand
Structure of public org. is
complex with various tasks.
performance Performance related to return Performance is based on
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on investment multiple indicators and targets.
Issues of management Management includes issues
related to shareholders and
financial stringency.
Management includes issues
related to private sectors
Meaning Private enterprises means an
enterprise which is controlled
and managed by private
entrepreneurs.
Public enterprise means an
enterprise which is controlled
and managed by central
government or any local
authority
objectives Objectives of private
enterprises is to maximize
profit, to maximize
shareholders wealth and fulfil
wants of the customers.
Objectives of public
enterprises is to secure welfare
of public, to reduce gape
distinction of income
distribution.
forms Forms of these enterprises can
be sole proprietor, franchise
and limited companies.
Forms of these enterprises can
be divided into three parts like
public corporation,
governmental company and
departmental undertakings.
Similarities between private or public sector entrepreneurship ventures :
1) common skills and techniques are used to handled both enterprises.
2) Both enterprises concerned profit making.
3) Private enterprises are influenced by public enterprises and public enterprises are also
influenced by private enterprises.
4) Lot of rules and regulations are exercising on both of the enterprises.
5) Both enterprises adopt creativity and innovativeness to improve themselves.
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Differences between micro, small and medium sizes enterprises :
1) micro enterprises : micro enterprise means a small sized enterprises like ice cream
parlour or cafe. These enterprises are established with small size of capital and minimum
numbers of employees(Lofstrom,, Bates, and Parker, 2014). It usually start with less than
10 members. Investment in these types enterprises is up to rupees 10 lakhs.
2) Small enterprises : small enterprises means a small number of workers and small volume
of sales. These types of enterprises are limited in size and it is freedom owned company.
Investment in these types of enterprises is more than 10 lakhs rupees but less than 2 crore
rupees(Dees, 2017.).
3) Medium enterprises : in this enterprise, there are employees fewer than 250 persons.
Investment in medium enterprises is more than rupees 5 crore but less than rupees 10
crore.
Scope of entrepreneurship :
Small scale enterprises gives good scope to the growth of activities. Entrepreneur has the best
opportunity in selling service or a product(Amato, And et.al., 2017.). Entrepreneur can get better
outcomes if the organization is in small size. Scope of entrepreneurial activities in small
enterprises can be divided into three parts like :
1) service sector
2) industrial sector
3) agriculture sector
In industrial sector, small scale enterprises play an important role to get better outcomes and in
reducing the gap distinction between distribution channel(Bruton, And et.al.., 2015.). An
entrepreneur can get opportunity in the agriculture sectors like farming. Because of the rapid
expansion of service sector, its important has also increased. Service sector provides great
opportunities to entrepreneurs in business like in auto repair, welding repair and so on. Rural
economy is also the best opportunity for the entrepreneurs to develop and increase their business.
The scope of entrepreneurship is vital in India or in abroad(Dees, , 2017).
Characteristics of private, public and social enterprises :
1) independence to produce more goods in private enterprise.
2) Independence to sell products and goods
3) freedom in deciding price of a product
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4) independence to make profit
5) there is control of government in public enterprises
6) it gives public service
7) monopoly factor in public enterprise
8) public enterprises are generally stable
9) social enterprises concerns about social problems
10) social enterprises are possessed by their innovative ideas.
Roles of private enterprises :
1) to develop the infrastructure and maintain services(Dees, 2017)
2) to promote existing businesses
3) encourage development of community
4) to promote small and micro businesses
5) to attract investments
role of public enterprises ;
1) public enterprises are responsible for maximization of welfare (human welfare )
2) public enterprises have to give maximum efforts to achieve social goals
3) public enterprises face the strong criticism by the politicians and public.
The main role of private enterprises is to give support to the economic growth and reduced
poverty in region(Bruton, And et.al.., ). Not only private sector, even government has also played
a key role in economic growth and to reduced poverty. The private sector generates 60% of the
funds and 90% of jobs in developing countries. To support partners governments, it plays a main
role in built better environment and culture, to provide goods and services to public. Many of the
business and companies wants to partnering with the private sector. For this, companies do
public private partnership. There are many benefits in the term of public private partnership.
These type of partnership have designed to draw investment of private enterprises into public
assets(Dees, 2017.).
M1
In according to the entrepreneurship ventures, it is all about risk and success(Burns, 2016.).
Entrepreneurship venture will explore and identify many contexts including start up, small,
micro and large enterprises. Entrepreneurship can be explained as innovating and higher value of
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resources. Many different social aspects can create opportunities for entrepreneurs. Roles,
responsibilities and their scopes are also included in entrepreneurship ventures.(Bruton, And
et.al.., )
P3 Micro and small businesses impact on the economy
Micro and small businesses (SME) play important role in the economy, small enterprise
are related to private sector, and also the source of innovation and diversification. Micro and
small businesses are very crucial for successful economic growth. It involves growth,
community, organisation, employment and skills (Liedholm, and Mead 2013). Small entities
help in increasing employment opportunity in the nation and supports in improve GDP. SMEs
help in reduction poverty by providing jobs. It contributes at the time of financial crises' situation
when big organization fail to conduct their operations smoothly. SMEs is also providing funding
through the financial institution retained profit, the financial market, use of bank and government
monetary policy. Retained profit refers to these profit which are use in future for expand more
businesses this profit is use only buy new plant, machinery, computer, etc to improve the
conditions of the business as well economy.
The term of SME impact on economy development of the nations and exceeds their
share,providing 40 percent to 80 percent total manufacturing employment . The over all shares of
small businesses firms providing jobs and giving a lots of benefits to the society. Small scale
businesses help to improve the living standard of the people and it creates variety if jobs and
giving a great output to the economy. Small corporations build-up a relations with large scale
enterprise because large businesses are also help increase their productivity and also help
expand their businesses. Small scale businesses have always play a vital role in the economy
development of the country.
New product manufacture by small scale industries and they produce number of
consumer goods and the main motive to fulfil the need of consumers (Mano , and et.al 2012 ).
These goods are produced by small scale industries in low rate to complete the need of poorer
small scale enterprise also contribute 40 percent to the export of the nations. product such as
handicraft, gems, sports goods, jewellery, woolen garments, food items, chemicals these are the
good and services include in export business. They contribute both directly and directly export
and earn more profit through foreign exchange. Small scale corporations provide more
opportunities for entrepreneurs with limited resources and earning more profit.
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P4 Importance of small scale business and business starts ups on the growth of social economy
The role played by small scale businesses has significant and great impact on the
economy of the country. The total innovation comes in the social economy of the country is
about 60-70%. Their are many companies which started their business from small scale
businesses and nurtured their businesses into big businesses. SSI participates in the mainstreams
economy which contribute to the output. SSI is a first step to elaborate the businesses. Small
scale businesses contribute directly to the growth of the economy. SSI are very significant
towards eradication of poverty, removing unemployment, rural development and creating
regional balance in growth and development (Laukkanen and Tornikoski, 2018). It is estimated
that in manufacturing sector, it contributing about 40-45% of gross value of output and to the
large sector, small scale industries are contributing about more than five times of employment
generation. There are many point which shows the importance of small scale industries which
has directly impact on the economy of the countries but it very sad that government is not giving
support to encourage the small scale businesses.
The following are the roles played by SSI which proves their importance in economic
development:
Employment Generation
Small scale industries are generating about more than five time to the large sectors. The
techniques use by them is labour intensive, hence it provide employment opportunities to number
of people. In rural sectors and in unorganized sectors the employment provided by SSI is
adorable. It providing employment to the people engage in the traditional arts, specially Hand-
craft works. SSI are not only for skilled workers, unskilled workers also have opportunities in
small scale businesses.
Facilitates female growths
Small scale industries are providing employment to women who can go outside for work
and also to them who cannot go outside for any work (Spence and et.al., 2018). They are leading
great position in providing employment to women's. The tailoring works, preparing matchsticks,
hand craft work and preparing carry bags, these all are the works which provide in-door
employment by small scale industries.
Helps in mobilization of resources
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Small scale businesses helps in mobilizing the local resource. It can utilize good amount
of talent, saving and entrepreneurial skills and qualities in rural sectors. The knowledge, skills,
talent and qualities which remain unutilized and which remain idle is used by Small scale
industries in efficiently.
Helps in promoting exports
Their is phenomenon growth registered by small scale industries in exports over the
years. The exports recorded is 393 crores in 1973-74 has increased upto 71,244 crores in₹ ₹
2003-04. Small scale industries contributes about 35% of total exports. It also helps in increasing
the country's foreign exchanges.
M2
The contribution of SSI to economy of country globally cannot overplay but medium and large
scale business globally make large contribution to the economy. The role in economical
development of SSI to the economy (Durst and Roth, 2018). The capital structure of small
business is less in compare to large scale businesses. SSI cannot build its own investment in
infrastructure but large scale can manage all. The investment in SSI is limited to 25lakh and
MSSI is upto 1Crore and LSI is upto 5Crore.
PART 2
P5 Factors which makes a successful Entrepreneur
When in the hope of profit and to get success, a person set up a business and take a
financial risk. To take benefits of opportunities, taking initiatives by organising a venture, and be
a decision maker that what,how, when and where to do and what, how and how much to produce
is a Entrepreneur (The Success Factors of an Entrepreneur, 2009). An entrepreneur has a high
risk factor, controller and decision maker of a business. Entrepreneur is mainly Sole proprietor,
partner and a person who has majority of shares in an incorporated sectors. A successful
entrepreneur is one who proves him best by taking risk and using the opportunities and take the
decision. Peter Jones, Simon Cowell and Duncan Bannatyne are the famous entrepreneur of
United kingdom.
The most crucial elements and the factors that can make a successful Entrepreneur:
Willingness to take action: If a person who afraid to take a real action cannot be a
successful entrepreneur, person should have power to take a immediate action. Action is
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something which led entrepreneur to Success. To be a successful entrepreneur, one should have
capabilities to take action.
Patience: To be a successful entrepreneur, person should have quality of patience. When
the business is start it takes around six months or an year or more to remain in the market and
earn profit. Person should have patience when business is running in loss, entrepreneur journey is
not an easy journey.
Entrepreneurial Intelligence: To be a successful entrepreneur, he must have
entrepreneurial intelligence by making all the possible arrangements and taking toughest
decision when needed. For bringing uniqueness in the business the entrepreneurial intelligence is
very much important.
Ability of Team Work: To become successful entrepreneur, the ability to work in team
and with the team is very necessary in the business (Hornsby and et.al., 2018). A single person
cannot do everything and doesn't posses all the qualities, because there is no Superman in real
life, every business needs a team of member to attain the target of the business.
Risk Taking: Entrepreneur is one who take a risk of starting a business. A successful
entrepreneur has ability to calculate the risk factor promptly. To get success in the business
entrepreneur should use Risk Management Principles which lead to success.
Self Confidence: To become a successfully entrepreneur, person should have capabilities
of self confidence, as it is key to success. Entrepreneur should feel confidence on the decision
which he takes, he should not loose his confidence in any manner.
M3
Entrepreneur have many characteristics like entrepreneur have passion and motivated
person and he does not afraid to take any risk in the business, he have patience, self belief, hard
work and many other characteristics (Kuratko and Morris, 2018). But these all characteristics is
not present in all the entrepreneur, as many entrepreneur does not take risk and close the business
and does not have patience to run the business in loss.
P6 Personality of entrepreneur reflect on entrepreneurial motivations and mindset
Entrepreneur are all different personality and they have different mindset they
contribute to their efforts in the businesses. The personality of businessperson have a great
contributions his successful in their business. If entrepreneur has good quality and commanding
personality, it reflect his skills, motivation and mindset. Today business is very complex every
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one cannot manage so the organisation needs to skilled persons to understand the complications
and solving the problems of the businesses. A business man must be hand working habitual to
concentrate on work for long time if entrepreneur are not hard working they cannot influences to
their employees in this situation they are only suffer losses in their businesses. For example Mark
Zuckerberg he is a great entrepreneur, like every other businessman he is also innovative and
successful person.
When he stared working on his Facebook he giving full time his businesses and
motivated his employees. According to his personality he is very intelligent, great team leader,
build the right relations with the people, inspiring person. He proved to be a good foe company
because he know the value, commitments and trust of the businesses. His main motive to faith
his work and he motivating other team member for achieving the goal of the company. Mark
Zuckerberg is very aggressive regarding his work but he is encouraging leader also. He is
independently thinker and innovative person. Marks is always open mined giving suggestion his
employees for increasing their work efficiency. He encourages his people to attempt his work do
better. So every entrepreneur should try to develop their knowledge, skill creating a healthy
environment in organisation. Entrepreneur personality effects his personal relationships and they
easily find out the actual problems of the business and solve easily. Every successful
businessman aim to increase their work efficiency and generating more profitability.
For example Sundar pichai is also the successful business man he is very intellectual and
his personality reflect his motivation and mindset. This person is very hard worker and m
he take corrective actions and always motivate his employees. He is great leader at this time
people use his google applications , softer also. Google is the relevant source of information all
most people in this world using this app it is very useful gathering the informations. So Sundar
focus on his work in very effective manner. So every entrepreneur should work hard like him
and aim to achieve a success his work. Different culture is also effect on the entrepreneur
personality as well as corporations also. Marks and Sunder pichai both are good leader and his
lifestyle also effect on their businesses. Both of the Personal motivations also influences with
other and they know how to maintain relationship with their employee as well customer. They
are proactive personality and their target to not only earning they create their business good
image in the world.
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P7 How background and past experience can effect on foster entrepreneurship
Entrepreneur establish business and create a job they identity the problems of the
businesses. So background and past experience help to finding a actual hurdles of the company.
Through these aspect remove the problems of businesses and share a past experience with
employee it help to improving the quality of work. Marks zuckerberg background and past
experience he is very innovative person but when he was start his businesses he face many
hurdles in their life. His family background was not good his financially conditions is not well so
he face that problem but he never stop Marks concrete on his work. So his background effect on
his businesses he faces hurdle in business like lack of finance, resources are limited. But his
work experience are reflected his work. He is motivated person and his past experience is also
effected his company. Entrepreneur focus on there business how to manage itself finding a
creativity ways to assessing the finances. When Business man start his own business he need to
maximum cash and support his family background.
Entrepreneurship has been face many hurdle and challenges in businesses the aim of
company encouraging their employees. Richard Branson is also great business man his motive
to improve your self and avoid negative things and do work hard. Background and past
experience play a very important role in entrepreneur life. Both are hard worker and achieving
the goal of the organisation. Every successful entrepreneur need to improve their skills,
knowledge, motivating to others. Background and past experience is also increasing their ability
to do work so is is very necessary for achieve the goal of the businesses. Entrepreneur are
important for the economic they create lot of opportunities and growth of the individuals as wells
employees. Entrepreneurship and economic development make new policies of the business,
develop institute, and change his background as well personality also.
M4
Entrepreneur are help to develop their business and expand their work in efficient
manner (Marcucci , 2014 ). Entrepreneurship is the process of actions of business man who is a
person always take a risk for high return and always searching a new and share their ideas also.
They main motive to giving opportunities of the employees and increasing the productivity of the
business. Their back ground and past experience is also help them for achieving the goal of the
enterprise.
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D3
Entrepreneur should innovative and good decision maker like Marks zuckerberg and
Sunder pichai both are famous and great leader (Kithae, and et.al2012 ). Both are motivated and
they always concrete on their work and giving a lot of opportunities to other people. They build a
relationship with people and risk taker.
D4
Background and experiences are always influences entrepreneurs, both positively and
negatively like Richard Branson is the real example of the successful business he was very
positive thinker and he avoid negative point (Ghanem, 2013) . He is focused only positive point
and work hard. His back ground also effect Richard also face many hurdles in his life but he was
very motivated entrepreneur.
CONCLUSION
Entrepreneurial is very importance for growth of businesses they create innovations and
creativity of the enterprises. The impact on the small businesses in economic grow very rapidly
and providing various opportunities of the employees. According to this concept it is clearly
defined the important of entrepreneur and role of the entrepreneurship. Both of the aspect are
very important for the growth of the company. The main motive to every entrepreneur to
increasing their profitability to the business and expand their resources. They also provide jobs,
development in the economic. Entrepreneur play a very essential role in the businesses they main
focus how to take right decision for long run business.
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REFERENCES
Books and Journals
Amato, C., And et.al., 2017. Regulatory modes and entrepreneurship: the mediational role of
alertness in small business success. Journal of Small Business Management, 55(S1), pp.27-
42.
Bruton, G., And et.al.., 2015. New financial alternatives in seeding entrepreneurship:
Microfinance, crowdfunding, and peer‐to‐peer innovations. Entrepreneurship Theory and
Practice, 39(1), pp.9-26.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Dees, J.G., 2017. 1 The Meaning of Social Entrepreneurship. In Case Studies in Social
Entrepreneurship and Sustainability(pp. 34-42). Routledge.
Durst, S. and Roth, S., 2018. International Journal of Entrepreneurship and Small Business:
Special Issue on:" Entrepreneurship: Made in German (Language)".
Ghanem, H., 2013.Role of micro and small enterprises in Egypt's economic transition. Brookings.
Hornsby, J. S., and et.al., 2018. Entrepreneurship Everywhere: Across Campus, Across
Communities, and Across Borders. Journal of Small Business Management. 56(1). pp.4-
10.
Kithae.P.P.Gakure, R. and Munyao, L., 2012. The Place of Micro and Small Enterprises in
Achievement of Kenya’s Vision 2030. Journal of US-China Public Administration, 9(12)
pp.1432-1440.
Kuratko, D. F. and Morris, M. H., 2018. Examining the Future Trajectory of
Entrepreneurship. Journal of Small Business Management. 56(1). pp.11-23.
Laukkanen, M. and Tornikoski, E. T., 2018. Causal mapping small business advisors’ belief
systems: a case of entrepreneurship policy research. International Journal of
Entrepreneurial Behavior & Research.
Liedholm. C.E. and Mead D.C. 2013. Small enterprises and economic development: the dynamics
of micro and small enterprises. Routledge.
Lofstrom, M., Bates, T. and Parker, S.C., 2014. Why are some people more likely to become
small-businesses owners than others: Entrepreneurship entry and industry-specific
barriers. Journal of Business Venturing, 29(2), pp.232-251.
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Mano. Y. Iddrisu A. Yoshino Y. and SonobeT.2012. How can micro and small enterprises in sub-
Saharan Africa become more productive? The impacts of experimental basic managerial
training. World Development,40(3) pp.458-468
Marcucci P.N. 2014. Jobs, gender and small enterprises in Africa and Asia: Lessons drawn from
Bangladesh, the Philippines, Tunisia and Zimbabwe.
Schaper, M.T. And et.al., 2014. Entrepreneurship and small business.
Spence, L .J, and et.al., 2018.Research Handbook on Small Business Social Responsibility: Global
Perspectives. Edward Elgar Publishing.
Online
The Success Factors of an Entrepreneur. 2009. [Online]. Accessed through:
<http://smallbusiness.chron.com/success-factors-entrepreneur-2289.html>.
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