The Importance of Entrepreneurial Qualities

The provided text is a comprehensive analysis of entrepreneurial qualities, focusing on the importance of entrepreneurs in creating successful enterprises that contribute to economic growth. The document references various studies and research papers on entrepreneurship, small business policy, and related topics. A detailed list of references is included, providing further insight into the subject matter.

ENTREPRENEURSHIP AND
SMALL BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Different types of entrepreneurial ventures and how they related to topology of
entrepreneurship.....................................................................................................................3
P2:Similarities and difference between entrepreneurial ventures..........................................4
TASK 2............................................................................................................................................5
P3: Impact of Micro and Small businesses on Economy.......................................................5
P4: Importance of small businesses and start ups in social and economical growth after Brexit
................................................................................................................................................8
TASK 3............................................................................................................................................9
P5: Characteristics, Skills and Traits of a successful entrepreneur........................................9
P6: Aspects of the entrepreneurial personality which reflect their motivation and mindset10
TASK 4..........................................................................................................................................11
P7: Explanation on how backgrounds and experiences can hinder or foster entrepreneurship 11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneurship refers to in which an individual establish a business with the motive of to
generate profit by introducing some innovative products or services and bring life changing
solutions. The entrepreneurs also known as job creator as they provide employment to other
people through their venture. This report is based over entrepreneurship and small business
management on a seminar which is organised by HMRC in the UK to provide complete
knowledge about entrepreneurship to the employees. This report contains examination of
different types of entrepreneurial ventures and how they relate to topology of entrepreneurship. It
present similarities and difference between entrepreneurial businesses. It elaborates statistical
data of small businesses and their impact on economy development of UK. At last explain about
traits and characteristics of an entrepreneurs with their experiences and backgrounds of an
individual.
TASK 1
P1. Different types of entrepreneurial ventures and how they related to topology of
entrepreneurship
Entrepreneurship is the process in which an individual establish a new venture which is small
initially. Whereas an entrepreneur set-up, organize and manage a venture along with tasking risk
of the business in order to gain profit. An individual come up with new or innovative idea to
change the market trend (Alexander, 2017).
There are several types of entrepreneurial ventures which run their businesses in the business
environment which is explained below:
 Large scale venture: It refers to the business in which they have large business cycle.
They are keeps on growing by introducing new and innovative products and services. The
intense competition, changing in the taste and preference of customers, introduction of
new technologies in the market create more pressure to the innovation. So, the large
organization can make new innovation and sell it to the market. As small company do
this by collaborate with some large enterprise or make disruptive product by themselves.
Where large businesses didn't execute this disruptive product in the market because of its
size and culture.

 Scalable start-up venture:- This type of ventures already knows that their vision can
change the world. The Entrepreneurs are always in the search of new opportunities which
exist in the market. The ventures brings new innovations in the market and aims to grow
the business. After, developing their business they sell it to some other and search for
another opportunity (Bennett, 2014).
 Social Venture:- In this entrepreneurship an entrepreneur make an innovative product or
services which can satisfy the need and wants of the society. The goal of entrepreneurs
are in this to make a better place not to make any profit or market share just provide
services to the society.
 Small Venture:- This is type of venture in which operated or owned by anyone and runs
at lower level. These venture includes plumbers, grocery stores, travel agent. The aim of
this business is just to fulfils their basic requirement.
There are certain topologies in which all these ventures are operated. Following is the description
of entrepreneurs topologies:-
 The young entrepreneurs:- This types of entrepreneurs who are young, small and
majority of entrepreneurs are females. The young individuals who are more ability to take
risk and develop their business also want to become key players in the business world
with the help of social media. The Natural Entrepreneurs:- This segment of entrepreneurs are more mature and
majority of individual are male. The individual have natural entrepreneurial skills, self-
motivated and believes that the main success is inside you. The entrepreneurs have good
experience of hardship and still believe to gain more experience and knowledge (Chell
and Karataş-Özkan, 2014)
P2:Similarities and difference between entrepreneurial ventures
Business venture considered as a small business. In the business venture two or more
people or groups invested with the expectations that business will give them financial gain in the
future. First, need analyse and identified by the entrepreneurs for a product and services and then
develop the idea, implement the idea into market then introduce the product or services.
Maximum business ventures are created on the basis of demand in the market or lack of supply
in the market.
Similarities:

Similarities between social venture and scalable start-up ventures:-The both ventures
run their business with the motive to improve the life style of people and want to change the
world.
Similarities between scalable start-up ventures and small ventures:- The scalable
start-up operates its business with the motive of to change the world by improving the life of
people. Whereas small business operates to fulfil their basic need by develop their business. As
both enterprises doesn't focuses on profit making.
Similarities between social venture and large scale ventures:- Social venture focuses
on the provide products which satisfy the need of the people. Large ventures emphasis on the
manufacture the products according to the demand in the market. As both concentrated on
providing the products which is required by the society (Drucker, 2014).
Similarities between scalable start-up and large venture:- The large and scalable
ventures focuses on the introduction of new and innovative products which bring change in the
society.
Differences:-
Differences between scalable start-ups and small ventures:- Scalable ventures are
setup to bring new product and services in the marketplace. The income source in this venture
are from short term loan, family, friends etc. Whereas, small ventures establish their business
with the aim of to earn daily source of income or for their livelihood. The finance arranged from
relatives, loans, savings etc.
Differences between social ventures and large scale businesses:- The social venture
are establish with the aim of to improve the life of people by offering required products and
services. The finance comes from government, charity etc. Large scale enterprises are set-up to
earn more and more profit and for sustainable development (Goss, 2015). This enterprises have
several source to arrange finance equity fund, capital, long term loans etc.
TASK 2
P3: Impact of Micro and Small businesses on Economy
Micro and Small Enterprises refers to the small scale businesses that can be differentiated
according to the size of the investment made. Micro scale businesses are the businesses, where,
the workers does not exceed from 5 or 6 employees, whereas, Small Scale business can be

identified as the one in which the employees does not exceed out of 50. There existence may be
low but they create a huge difference in the economy of United Kingdom as they create
employment, sustain development and initiate growth. The government as well play a very
important role in the success of these enterprises as government creates a supportive
environment for these enterprises (Mango, 2014). It is very important to have a sustainable
environment where the enterprises can work out of their innovation and creativity as it will be a
better step for the economy. Other than that, if there would be new and small business in the
market it will be an easy task to attract more investors into the country. The benefits experienced
by the economy are:
Employment Generation: When a new enterprise will enter in to the market, it will
create lots of opportunities for the people of the country. It will help in creating more
employment as people will get more jobs and the purchasing power of the people will rise and it
will help the economy to develop. Other than that, it is very important for the youth of the
country to feel there are plenty of opportunities available in the market to choose from and their
future is secured in the country. It also helps in increasing the GDP of the country which is very
important to stand in the market.
Promoting Creativity: It is very important for a country to have a competitive advantage,
like, Japan high speed bullet train or Korea's infrastructure , similarly, to create an advantage in
the world, it is very important to initiate innovation and creativity in the market and for that
government should support the people of the country and create a suitable environment. For that,
country can decrease the taxes or provide easy loans and many more to enhance the innovation in
the people of their country (Mazzarol, 2014).
So, it is very important in a country to support the Small and Micro enterprises as they
are the essential element who supports the country's anchor. So, the role of these enterprises is
very crucial in the development of social factors as well as economical factors.

Source: Business Statistics of United Kingdom, 2018
The following graph suggests that the growth of private business in the country has only
raised. As the small and micro enterprises has give a boost to the various other sectors by
providing employment and support by taking the load of GDP.
Source: Inflation rate in the UK, 2018
Illustration 1: Business Statistics of United Kingdom
Illustration 2: Inflation rate in the UK

This graph suggests that the inflation has raised a lot after the Brexit but the small and
micro industry controlled it by providing jobs to the people who has lost it at the time of inflation
and also these enterprises supported the economy by stabilising the business environment of the
country.
P4: Importance of small businesses and start ups in social and economical growth after Brexit
Small scale businesses and start-ups plays a very significant role for the success of any
economy as described above, but, it also plays a major role for the stability of an economy when
it just suffered from a niche. Such a role in the economy of United Kingdom was performed by
Brexit. Brexit is a combination of words British and Exit. It happened when the United Kingdom
exits from the European Union. EU was formed with the 28 member countries located all over
Europe to initiate trade practices among these countries. Brexit performed a huge role in
unbalancing the economy of the United Kingdom as the whole economy has to suffer after it. It
happened because of the big enterprises established in the country operating because of
European Union closed down, resulted in people losing their jobs (Mugler, 2017).
But at the time of Brexit, no one thought that Britain will able to sustain with as the
political as well as economic environment was down. At the same time, people have lost their
jobs because of the closure of large business enterprises. But out of all, one of the most important
sector suffered was of Real-Estate. The property prices were all time low and the small and
micro enterprises working in this area faced the sea because of the low demand.
At the time of inflation rate going high and GDP of the country going down, small and
micro enterprises supported the country as they provided jobs, balanced the GDP and promoted
innovation by bringing new ways of technology and ideas to stand out in the market. This also
helped in improving the living standard of people faced by the people after Brexit. They
provided several benefits to the country like new innovative business enterprises, job
opportunities, high income, growth in GDP and various other benefits as well.
But out of all the sectors that suffered, Small and Micro business came out as a success.
As many new small and micro business entered into the market which provided jobs to the
people and helped in re-establishment of the economy of the country (Mullen, 2016).

TASK 3
P5: Characteristics, Skills and Traits of a successful entrepreneur
An entrepreneur is an individual who identifies and runs its business venture instead of
working as an employee. An entrepreneur who always tend to think something new or innovate
some new product or services for improve the life of people by providing which satisfy their
needs an wants. An entrepreneur have a ability to take risk at each level of business because they
know without risk there is less return and with high risk there is high return (Obeng, Robson and
Haugh, 2014). So, the entrepreneur is always ready to take risk with the aim to high profit and to
run the business for long term. An entrepreneur plays an major role in the economy. They are the
job creators who provide jobs to many unemployed people through their businesses and bring
development in the economy. Entrepreneurs uses resources whether tangible or intangible
transform them in new potential and then bring new opportunity in the market. The entrepreneurs
also brings social change in the society like they introduce new innovations as well as
technologies which reduce the dependency of people into existing methods. In the same manner,
they also contributed to the charity, trust and also towards CSR activities. Among of these
entrepreneurs there are two entrepreneurs who brings new trend in at global level like Mark
Zuckerberg( the owner and founder of Facebook) and Jeff Bozos( Founder and chairman of
Amazon). Both are very well known for their struggles and inventions. The unique idea of both
has changed the picture of businesses. Some of the characteristics of theses two entrepreneurs are
as follows:
Self Motivated:- Self motivation plays an important role in the life of an entrepreneur. If
someone wants to succeed in life so, they have to push themselves. As an entrepreneur you are
not accountable to answer anyone it means that you have to move alone to achieve your goal. As
an entrepreneur dedication towards work is necessary whether face any loss or not because loss
and profit is a part of life for an entrepreneur (Rey-Martí, Porcar and Mas-Tur, 2015).
Skills:- There are various skills which an successful entrepreneur posses such as good
communication skills which make him competent, Leadership and motivation, Active listening,
Problem solving, creative thinking, recognize opportunities, decision making and ability to work
under pressure any many more which help them to grow and develop.

Traits:- The traits which an entrepreneurs carries such as strong work ethic, passion,
determination towards work, creativity, initiator, competitiveness, confidence, open minded and
disciplined resilience (Sweet, 2017).
P6: Aspects of the entrepreneurial personality which reflect their motivation and mindset
There some characteristics and skills which reflects the motivation an an mindset of an
successful entrepreneur like as named above:-
Strong leadership:- The entrepreneurs must have a strong leadership over its venture.
The less leadership the less workflow in the organization and a result low productivity. So,
leaders need work in an effective way to make their employees and business efficient. A leader
should have a strong communication skill because through communication they get control over
mass team of people and focuses towards common goal by motivating them. A positive work
qualities and confidence helps leader to earn respect and trust from his team (Santos, 2017).
Creative thinking:- It is most important for an entrepreneur to have a creative thinking
in order to achieve the goal. Creative thinking also beneficial for execute the business plan or to
mapping the business model. As it is also required when arranging finance for a company,
handling the questions of shareholders, for investing in the share market and other financial
institutions all are the main source of funds for any start-ups. Creative thinking also need to
innovate new new products according to the demand in a market. For example, Jeff Bezos
introducing an idea to open an online platform for the people from where they can easily
purchase anything as they want without much efforts and then introduced Amazon.
Ability of risk-taking:- Bearing risk is the most important factor for start any start-ups.
The higher the risk the higher the return and lower the risk the lower the return. The risk is
associated with every type of ventures it is totally depend upon the entrepreneurs how they
handle any manages the risk.
Ability to work hard:- Hard work is necessary to gain something. As an entrepreneur
the person have potential to give proper time and effort to its business. Successful entrepreneurs
doesn't sleep at night as well when they really dedicated towards their work.

TASK 4
P7: Explanation on how backgrounds and experiences can hinder or foster entrepreneurship
The life of entrepreneurs are much influence by their surroundings in which they are living it
includes society, beliefs, values, religions, experiences and financial stability of an individual. As
to start a business very important factor that plays a major role is finance. It is said to be state
that the person who is more financially stable have a capability to establish a business but
through networking as well an entrepreneur can arrange finance. It is said that mother and father
are the role model of an individual (Waithiegeni Kibui, 2015). So, the family support plays an
important role behind the success of an entrepreneur. The person learns initially from family
members and also take motivation to do something. The entrepreneurs like other people learn
from their family and society that how to overcome the obstacles of life without losing the hope.
Positivity is also comes from the behaviour of the surroundings. The entrepreneurs born where
there is lots of positivity which make them effective and enthusiastic at the time of loss as well.
So, because of family their performances increases and make them a good person like Jeff Bezos
the support and struggle of his parents made him a successful entrepreneur in his life (Schaper,
2016).
Whereas experiences along with family background is the second most important factor
behind every successful entrepreneurs. If the person faced any bad situations in his past then he
is able to handle any challenging or difficult situation in the future as well. As the business is all
about challenges and struggles without this no business can grow and develop. The experiences
of an entrepreneurs make them competent and able to overcome all the situations. So, both the
factors influence a positive impact on the life of an entrepreneur and help them to become strong
person.

CONCLUSION
From the above report it has been concluded that an entrepreneur job is not easy. They
have to work in an environment and make certain decisions in a small amount of time for the
success of their enterprise. Their work involves lots of risks and an entrepreneur has to work out
of it and continuously tries to create an advantage and place for themselves in the market. But,
there are certain qualities that an entrepreneur possess which makes them different from the
others. The enterprise created by an entrepreneur plays a vital role in the economy in front of
various large, small, micro and medium enterprise as this is the thing for which the entrepreneur
is known for.

REFERENCES
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