Factors Influencing Entrepreneurship Success

The assignment explores the key factors that contribute to entrepreneurial success. It highlights the importance of family background, education, and character traits in shaping an individual's ability to become a successful entrepreneur. The document uses real-life examples, such as Steve Jobs and Alan Sugar, to illustrate how these factors can impact entrepreneurial outcomes.

Entrepreneurship and
small business
management

Table of Contents
INTRODUCTION...........................................................................................................................3
P1............................................................................................................................................3
P2............................................................................................................................................5
P3............................................................................................................................................6
P4............................................................................................................................................8
P5............................................................................................................................................9
P6..........................................................................................................................................11
P7..........................................................................................................................................12
CONCLUSION..............................................................................................................................13

INTRODUCTION
Entrepreneurship is a set of formative action in order to set a business as to generate large
amount of profit. In a simple term, entrepreneurship is an ability to set and maintain a business
associated with different types of risk factor in order to make profit. Entrepreneur is an
individual who set their business along with various types of limited resources and capital. Small
sector business acts as an most important part of an economy, which effectively aid country to
develop their economy as a whole. Present study has been done on entrepreneurship and small
business management. In this project, discussions has been made on numerous range of
entrepreneurial ventures along with similarities and variations in between entrepreneurial
ventures. In addition to this, report covers impact of micro and small scale business organisations
on economy and different types of traits and characteristics of a successful entrepreneur. Lastly,
numerous aspects of entrepreneurial personality affects on their motivation and mindset in
which experience and background create both hindrances and foster entrepreneurship that is
included in this report.
P1
Entrepreneurship is an important concept that defines about taking risk to set up a new
organisation by using new concept and thought by accessing emerging needs and wants of
consumer base. All businesses should be established to earn profit and growth for that they use
various strategies and tactics for effective decision making (Bae and et.al ., 2014). Accordingly
they have to use style to form a new business, the entrepreneurial venture that divides into five
different groups of individuals. It elaborates various topologies of entrepreneurs that are as
follows:
Small business entrepreneurship:
In small business entrepreneurship consist of size of business and their scope to establish
business opportunities and growth to work independently for earn their livelihood (Barringer,
2015). Their earning and livelihood depends on various factors that are sector or industry in
which it deals. Such as various types of entrepreneurs that are grocery stores, travel and tour
operators are small business entrepreneurs give their major contribution in economy and live
their livelihood. The young innovators come in that category because they initially work at small
level and after that expand their business to enlarge business opportunities in for development.

Large company entrepreneurship:
These types of business ventures deals or operate at a large scale because they have large
investment and capture huge market base to remain always competitive in marketplace. They
produce products as well as services as per the requirement and demand of consumers that are
very dynamic in nature. Due to high capabilities they can easily modified products and services
as per consumers needs and wants. In large company entrepreneurship come natural
entrepreneurs that possess enough talent and capabilities to capture large market share to remain
always competitive in market place by giving their best.
Social entrepreneurship:
In that kind of entrepreneurship, firm build some new products and services that helps in
fulfilling needs and demands for social benefit (Bo, De-Haan and Strom, 2016). These
businesses should be form for motive of social benefit and fulfil future needs of consumers in
proper way. Their main intension is welfare of society and after that earn money. In social
entrepreneurs the entrepreneurial typology which come under it that is revitalised tycoons that
possess higher experience and majorly women's working.
Typology of entrepreneurship:-
Typologies of entrepreneurship helps in explore traits and behaviour that gives high
propensity to become an successful entrepreneur (Braunerhjelm, Ding and Thulin, 2018). By
conducting interviews with standardised questionnaire, organisation can reach at target
objectives and goals. The different entrepreneurial ventures and their effectiveness are describe
below:
The young innovators:
The young innovators start their business at small level and mostly segment to young
people and in which mostly are females that interested in taking risk. Their main motive is to
develop and enhance and can establish as a big player into marketplace with help of social
media. This topology of entrepreneurship will fall in small entrepreneurial venture.
Revitalised tycoons:
The revitalised tycoons are middle aged people and remain biased little bit for females.
They possess experience and also occupy some other positions. Now they think about put
forward in path of entrepreneurship to develop or foster their self interest. This type of
entrepreneurial topology will fall in social business entrepreneur or large business entrepreneur.

The natural entrepreneurs:
In natural entrepreneur in which consist of mature males and have natural natural talent
and capabilities. They suffer from many hardships in their life and after that move on path to
exhilarate experience. They are self motivated and give their best in organisational development.
These typologies of entrepreneurship are very important for choosing right kind of business in
which an individual take interest and can give their best. This topology is fall under large
entrepreneurial venture.
P2
Entrepreneurial ventures are very important for organisational development and
enhancement to enlarge business opportunities. There are some factors or attributes that helps in
With the help of different factors or attributes organisation can be able to demonstrate
differentiation and similarities. There are various set of similarities and differences are done for
entrepreneurial ventures:
Differences:-
 Financial goals: Small businesses are majorly work to attain financial independence by
creating profitable business that can give them regular income. With main aim is to pass
that business to next generation or selling their business. On other hand high impact
entrepreneur expect to achieve limited income for their business but at last get wealth in 3
to 5 years.
 Mapping criteria: On the basis of this small business deals at low scale with not much
investment and resources with capabilities to reach at desirable outcomes. Their
employees are local people and family members (Burns, 2016). large organisation based
on satisfying needs and wants of consumers in better way. They have various objectives
and goals such as small firms work on their survival on other hand large organisation
work for enlarge business opportunities in better way.
 Rewards: The small business entrepreneur typically tackles a business concern
possibility with the expected to generate a decent living - operating cash flow - in a
comparatively little time period. In contrast, the high-impact entrepreneur is chiefly
adjusted on the near/mid-term exit value of the business organization, as opposing to the
potentiality for near-term operational cash flow.
Similarities:

The main similarities among small, large and social enterprises that are analysing
requirements and demand of customers in very depth and every organisation work to earn profit
(Bruton and et.al, 2015).
Offering innovative products and services:
All come in market with new offerings and goods that satisfy consumers wants in
distinctive way. All commercial activities and procedures should be adopted to enlarge business
opportunities to earn profit. Along with this, another similarity among these ventures is that all of
them required funds as well as new ideas in order to operate their business in effective manner.
Different but equally important:
All Small businesses are the heart of an economy and important part and their objectives
are some kind of similar with other kinds of entrepreneurial ventures. For example small scale
entrepreneurs and social entrepreneurs have different goals and objectives but they equally work
for economic development. As they the motive of social entrepreneur is public welfare on otheir
hand small scales work for survival for themselves.
Risk taking:
The small business are taking risk but that are comparatively less from the large business
enterprises to expand their business in positive manner. On other hand large business enterprise
are also taking risk but they scope wide in economy.
Decision making:
The another major aspect that at small level all decisions should be taken by owner of the
organisation that lead the whole organisation. On other hand in large scale entrepreneurs in that
whole organisation handle and operated by higher authority.
P3
Micro and small business enterprises plays an important role in achieving organisational
goals and objectives by giving employment opportunities to masses. In micro and macro
business in which no more than 10 and up to fifty employees can give their services and their
annual turnover of not more than £ 2 million are compulsory. They require capital which is less
then £ 1.5 million to enter into marketplace (Cassar, Ittner and Cavalluzzo, 2015.). In UK, most
of the businesses come under category of SME. They plays significant role in the development of
economy to reach at desirable targets with help of some major attributes that are as follows:
Employment enhancement:

Small and medium business enterprises helps in giving large scale of employment
opportunities to local citizens and raise standard of people (Chell and et.al ., 2016). They recruit
people who do not specialised in not so many works and activities but can be able to give best I
one area. High employment rate is very opportunistic condition in which every one can
contribute in economic development and attain large share of market.
High case flow:
Small and medium business enterprises by identifying requirement of service users and
can generate high cash flow that helps in both economic and organisational development. Hence
they help in smooth case flow generation to enlarge business opportunities.
Infrastructural development:
The another major contribution of SME is that it aid in infrastructure development by
investing huge amount in national income. That is an important indicator of economic growth
and enhancement. It is helpful in development of country by opening schools and hospitals that
are great indicator of economic development.
In the UK, there are some 5.7 million SMEs , which report for over 99% of private sector firms
and 60% of total UK private sector employment. SMEs also report for approximately for 73% of
Illustration 1: Brexit’s impact on small businesses 2019

all net private sector job conception in the UK, creating about two million jobs. So all are
important factors to remain always prosperous in economy (An entrepreneurial typology, 2014).
Small and medium business enterprises are very important for organisational
development and enhancement and contribute in raising standard of people by satisfying their
emerging needs and wants in proper way (Chi, Tansuhaj and Sun, 2016).
from the above graph it summarised that contribution of SMEs rises year by year and it
provide contribution the development of economy and enhancement by increasing standard of
people and also enhance their per capita income. (DAILY, KIEFF and WILMARTH JR, 2014).
Illustration 2: Impact of SMEs on growth of an economy
(Source: Impact of SMEs on growth of an economy, 2018)
Through above given graph it can be analysis that economy of United Kingdom is
affected in positive manner by development of small and medium business. As it show that from
year 2008 to 2012 economy get affect in both negative and positive manner this will leads to
increase as well as decrease in economy. But the economy of United Kingdom is increasing or
growing from year 2012 till 2018 which is beneficial for the country. From the above data and
statistics it has been summarised that role of SMEs are vital in economy because they are not
only create employment opportunities but also provide great living standard to people so that

they can also contribute for economic development (Impact of SMEs in growth of economy,
2018).
P4
Small and medium enterprises are very significant in economic and social enhancement
by giving employment opportunities, innovation and sustainability in business and its
environment. There are some key attributes that shows value of SME in economic advancement
that are as follows:
Large employment opportunities:
One of the major contribution of small business venture towards the economy of United
Kingdom is that they generate huge employment opportunities for local, national and
international peoples (Davidsson, 2015). By employment opportunity company able to enhance
other's standard of living. They proved beneficial for organisation as well individual to enhance
their living standard and also contribute in economic development. It also create value in life of
individuals and organisations that are very much crucial.
Innovation:
The one of important factor in economic development is to offer products and services in
an innovative way that helps in advancement of masses (Edecker and et.al., 2014). They function
as to identify hidden demand as well as requirements of services user and catering them effective
services so that they can live their life in pleasant way. With the help of innovation an
organisation and individual can be enrich their lives and also contributes in economic
development. It enables to contribute in giving delighted experience to consumer base and
enlarge business opportunities. Through the development of small business entrepreneur there is
enhancement of innovation which help in improving condition of country and its population.
Social status:
The one of important attribute is to give social status to people so that they can majorly
contributes in economic development. Social status is very important that gives enhancement to
economy by giving them advance goods and services. Through establishment of small
entrepreneur company able to enhance job opportunities which help in improving social status of
peoples living in respective country. SMEs contributes in giving social status to people by giving
them advance products and services and also provide wide employment opportunities to them
that directly and indirectly contributes in enhance their social status.

Sustainability:
Sustainability is one of important factor that are very necessary for organisation to lead in
marketplace for long time. To gain competitive advantage organisation have according to needs
and wants of consumers offer products and services by observing their traits and behaviour. By
save environment and build eco friendly products and services that helps in enhancement of
their living standard and enables to measure results or outputs in better way so that resources
should be saved. SMEs also proved beneficial to give sustainability to market as well as
individual they conduct through research and development to bring advance products in market
place that give sustainability to them. So SMEs are very much important for an organisation to
remain always competitive in marketplace.
P5
Entrepreneurs plays very important role and responsibilities in giving products and
services in an innovative way by accessing needs and wants of masses. Entrepreneurs helps in
enhance employment opportunities and also raise standard of people. In order to develop
entrepreneurial skills and traits individual have to possess some characteristic that are very
important for individual and group of individuals to attain large market share. In addition to
some traits that possess by an entrepreneur and it differentiate from manager.
Duncan bannatyne:
Duncan bannatyne is an Scottish entrepreneur, philosopher and an author and deals in
hotels, health and clubs and media, TV with property (Dees, 2017). He is one of most successful
personality and their appearance as a great business angel on BBC program. Duncan has some
personality and traits that differ them from their managers.
Alan sugar:
Alan Michael Sugar, that is a British business magnate, connect with media and a great
political advisor. To succeed and build an strong with differ image in market they have some
traits and skills set that differ from the manager that are as follows:
Entrepreneurial traits and skills:
Strong leadership qualities:
In a business firm leaders plays very important role with responsibility in order to get
desirable goals and objectives. Alan sugar is an individual who value their goals and objectives
in any condition or circumstance that differ from a manager to remain always productive enough

(Demil and et.al ., 2015.). A leader is an great influencer which affects works and activities of
an individual by behaving in an motivated way that helps in reaching desirable goals and
objectives. By earn their trust and respect of their team members they act and behave in a very
positive manner and give their best in organisational development. Alan sugar is well known
name in Britain for coordination organisational works and activities and achieve in best way. In
that context managers are differ from leader that they can only manage and lead at some extent
on other hand leader have great power that they can coordinate and give their judgement
accordingly. So managers not lead the whole organisation but leaders can.
Highly self motivated:
Leader is one who remain always self motivated to inspire and motivate to others in
achieving goals and objectives. In order to get success no one can sit back and wait to come on
their door that is an impossible thing for an individual. To become successful entrepreneur
Duncan face many tasks and challenges into their own world and accordingly take actions to
confront them. On other hand managers are not fully self motivated and sometimes they have to
take initiatives and deliverable that help to remain always inspired to get desirable goals and
objectives. In case of Duncan bannatyne they do not need motivation from others but they are
give their best to achieve desirable goals and objectives. In that context managers are not as
much motivated as leaders because they have some limitations regarding power, time and duties
that restrict to remain motivated to give their best.
Strong sense of basic ethics and integrity:
To sustain for long time in market organisation and entrepreneurs have to maintain a long
relationship with their consumers and stakeholders. Code of ethics and integrity is an important
aspect to give best in organisational and individual growth and enhancement. To remain always
competitive in market place organisation and entrepreneurs plays very important role to give
their best in organisational development. In that case entrepreneurs are very helpful in establish
their own code of ethics that fulfil their development and related initiatives of them. Alan sugar
is one of great personality that pay attention on each activity of their organisation by framing
effective ethics that are very helpful in attain goals and objectives (Fernhaber, Gilbert and
McDougall, 2014). there are some skills and traits that they are more risk taking and give their
best in organisational development by taking all decisions by taking responsibilities. Leader
possess wide knowledge and information about business ethics in comparison to the manager

because they have long experience of that field and always remain conscious for organisational
development and build trust in consumers. So they have wide difference in their roles and
responsibilities at large extent.
P6
To become a successful entrepreneur, an individual have to possess unique personality
and trait that helps in coordinate and manage to gain high market share and become loyal in front
of their consumer base. These aspects helps in reflection of entrepreneurial mindset and motivate
them to give their best in organisational development . In an entrepreneur, some qualities and
traits plays important role that differentiate them from others that can be easily understand by
using big five model of personality trait that are as follows:
Openness:
In that traits imagination and insight of an entrepreneur includes and people who possess
that trait are high in their interest and very curious to know unique attributes (Drucker, 2014)).
This is one of important attribute that helps in engage people directly and reap benefits from
them to enlarge business opportunities because they are able to tackle new things and challenges
easily. When an entrepreneur have high imagination power that proved beneficial to enlarge
business opportunities to attain goals and objectives. Through this they able to take decision and
communicate with other in effective and appropriate manner. This will also help in
understanding situation of other through which they able to take proper decision. By that trait
and characteristic an entrepreneur possess wide knowledge and information of various fields and
work on major spheres in which improvement are very much crucial to enlarge business
opportunities.
Conscientiousness:
In that feature of traits and behaviour of an entrepreneur includes high level of thoughts
and processes, great control on works and activities, goal focused behaviour. High level of
conscientiousness helps to organise mind and their thought process. It helps them to think in
forward manner and also affect behaviour of others. With the help of that trait and behaviour an
entrepreneur can be able to focus on goals and objectives and get attention on spheres in which
major work are potential to reap out benefits out of it.
Extraversion:

In this, traits or behaviour consist of excitability, sociability and assertiveness and social
concerning nature and emotional person. When people are high in extraversion are outgoing in
nature and possess quality to remain energetic in social circumstances. Through this they able to
communicate with others which help in decision making procedure of an entrepreneur. This will
also help them in communicating with customers in effective and appropriate manner. With the
help of their trait and behaviour entrepreneur can be able to understand the problems of people
because they are very much emotional in nature so that it helps to build trust on organisational
works and activities.
Agreeableness:
This kind of personality trait includes trust, selflessness, kindness,love and affection
which are important factors that help to become an successful entrepreneur. By this entrepreneur
able to understand feeling of others and creating trust among subordinates which leads to
operation of business function effectively. With that behaviour an individual can able to
understand problems of subordinates and create strong relationship in them that ultimately
proved beneficial for organisation.
Neuroticism:
In that kind of personality trait consist of sadness, moodiness and emotional instability
affect business goals and objectives. If an individual high in that trait mood get swing, anxiety.
Hence they are not able to give their best in organisational development and advancement. These
factors help them in understand need and requirement of customers or employees which leads to
development of effective decision making.
P7
To become a successful entrepreneur, some factors and attributes in which some hinder
or foster to reach at target objectives effectively. In order to these factors plays major role to
build an strong mindset for reach at desirable targets that are as follows:
Family background:
Family background refers to details of person's family, their education level and
experience of work. In it also consist of family's social, culture and their class background that
helps in hiders or foster to attain desirable goals and objectives (Dees, 2017). Family support to
take some risk helps to become an successful entrepreneur by accessing needs and wants of
consumer base. The family members of Alan sugar belong from Jewish family and they

forefathers in business so that factor influence him to become an entrepreneur. Family
background is essential because by it a person can feel motivated or demotivated it is totally
depend on financial or social factor of a family. Such as if family background is not good and a
person want to open a business unit then they may face difficulties in this. For an example Steve
jobs comes from backward ground but they take motivation from that and become an successful
entrepreneur.
Education:
The another important factor that is educational background in which an individual have
management and administration knowledge that can easily coordinate works and activities. On
other hand an person taking learning of giving things and attributes in an innovative way that are
an important attribute that helps to become entrepreneur and give new things to people for
raising standard of people (Davidsson, 2015.). Alan sugar in age of 16 leaves their school and
worked for civil services in statistician in ministry of education. After that they start selling radio
aerials for cars and electronic goods. Education is one of important factor that helps in giving
assistance to become a successful entrepreneur in the whole world for an example Steve Jobs
have keen interest in computers and other related field that also get education in computer
science that helps to become an entrepreneur.
Character traits:
In character traits consist of some key skills and capabilities that helps them to differ
from other managers and people who give their services in organisational development. To
become an successful entrepreneur an individual have some traits in which passion, motivation
and optimistic in thinking and creative enough in giving their best attributes for both organisation
and an individual development. In case of Duncan bannatyne that always remain optimistic in
adverse situations also to maintain and attain desirable goals and objectives. So these factors and
attributes are very important for organisation and an individual to gain large market opportunities
. Family background, experience and education are major factors that directly influence to
become an successful entrepreneur that should be proved with the help of above mentioned
attributes. Characteristics traits are very much important to become a successful entrepreneur by
contributing and developing interest in major spheres such as Bill gates come from business
background and have knowledge of business and their family are highly educated.

CONCLUSION
As per the above report it has been summarised that entrepreneurship and small business
management is a wide and very important concept for economy and its development. Small and
medium business enterprises largely contributes in enlarge business opportunities by contributing
in enhancement of employment. It also helps in raise living standard of people by giving best
attributes and products by accessing their needs and wants. To succeed in business an
entrepreneur needs some skills and traits that are useful for them to attain desirable goals and
objectives. There are various kinds of entrepreneurship and ventures that helps in gain
enhancement of market and enlarge business opportunities.