Small Business Success Factors

This assignment delves into the crucial factors contributing to the success of small businesses. It requires you to analyze various aspects like entrepreneur characteristics, market conditions, and strategic decisions that impact business performance. Furthermore, you'll examine the role of ethics and social responsibility in shaping successful entrepreneurial ventures.

Entrepreneurship
and small business
management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different type of entrepreneurial ventures and typology of entrepreneurship.......................1
P2 Similarities and differences between various entrepreneurial ventures.................................3
TASK 2............................................................................................................................................4
P3 Relevant statics and data related with impact of small businesses on economy....................4
P4 Importance of small businesses and start ups to growth of social economy.........................6
TASK 3............................................................................................................................................7
P5 Characteristics and traits of successful entrepreneurs...........................................................7
P6 Entrepreneurial personality reflect entrepreneurial motivation and mindset.........................8
TASK 4............................................................................................................................................9
P7 Background and experience can foster and hinder entrepreneurship....................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Entrepreneurs are the individuals who design unique and innovative products to attract
more number of customers and to earn huge amount of profits. Mainly there are four type of
enterprises such as small, large, social and scalable (Blackburn, Hart and Wainwright, 2013).
From all these, small business enterprise play a big role in economic growth and social
development of a country. These are the one who create employment opportunities for local
people which help in increase their standards of living (Storey and Greene, 2010). These
organisation help in maintain the economy of nation when big movements take place on
international level. ALDI, a multinational grocery retailer based in United Kingdom is taken
under this report for study. Various type of ventures and type of entrepreneurship typology is all
detailed under this report. Further, main similarities and differences between various enterprises
and how their activities affect by their past experience is all given in this. Along with this, impact
of start-ups on economy and contribution of these on social economy of a nation is also
mentioned in this.
TASK 1
P1 Different type of entrepreneurial ventures and typology of entrepreneurship
Entrepreneurship is a process of carry out research, identify the needs of customers,
design a product, launch and offer the same to satisfy the needs of customers to earn huge
amount of profits (Neck and Greene, 2011). Different firms offer unique and featured services to
its customers in order to capture a large market share. Various type of entrepreneurial ventures
can be understood by following points: Small business entrepreneurship: Today more than 90% businesses in UK are small
start ups. This type of enterprises are run and manage by an individual. Owner alone take
all important decision related with business and it operations (Schaper and et. al., 2014).
Hairdressers, grocery stores, travel agents, electricians consultants and plumbers all are
popular example of this. These type of business owners hire their family members to
manage or local individuals to manage business activities (Bridge and O'Neill, 2012).
Main feature of these type of businesses is that they start with a unique and innovative
idea which help attract large number of venture capitalist. Scalable start up entrepreneurship: This is another type of entrepreneurs who start
business operations with effective vision (Stokes, Wilson and Wilson, 2010). Focus of
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these type of firms is to change the world with minimum time. Huge number of venture
capitalist and financial investors are attract towards this type of entrepreneurs as they
offer high percentage of return. For execute business operations they hire bright and best
candidates (Blackburn, Hart and Wainwright, 2013). Main feature of these type of
entrepreneurs is that they first formulate and follow a business model for manage future
activities of enterprise. Large business entrepreneurship: Enterprise who execute their commercial activities at
big level, produce and offer variety of products to its target market in order to better
satisfy their needs and wants is come under this (Burns, 2010). Business operation of
these type of enterprises get affect by various factors exist in business environment such
as technology, government policy, competitors and many more. Due to execution of
business operation on big level these type of firms earn huge amount of profit every
year.
 Social entrepreneurs: Enterprises which carry out research and then undertake
production process to offer unique services and goods to customers in order to solve
customer's problems and issues (Bridge and O'Neill, 2012). Main aim of these type of
organisations is to contribute in social development rather then earn number of profits.
Main motive of these firms is to make the world a better place.
 Public entrepreneurs: These entrepreneurs are the one whose ownership remain in the
hands of government and all the ma jor decisions are taken by government.
 Private entrepreneurs: These enterprises are the which owned and managed by the
private hand and the main objective of these entrepreneurs is to earn huge amount of
profits.
P2 Similarities and differences between various entrepreneurial ventures
Type of enterprise Similarities Differences
Small v/s large
business enterprises
Similarity between small and large
business enterprise is that both firms
undertake different type of
commercial operation to increase
profits of enterprise (Carraher and
Paridon, 2015). Main aim of both
Main difference between small
and large business enterprises is
that small business firm execute
its commercial and other business
operations on small and local
level of country (Carland,
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organisations is to better satisfy the
needs of its customers.
Both organisation execute different
kind of research in order to known
well about their target customers
and to known what are the features
which must be there in products to
retain customers for long period of
time.
Both organisation start their
business operation with a unique
and innovative idea which attracts
large number of investors.
Carland and Stewart, 2015). On
the other hand large business
organisation execute their
commercial activities on big and
international level and earn more
amounts of profits as compare to
small business organisations.
Small enterprises require small
funds and financial resources to
execute business activities while
large business companies require
more amount of financial
resources to execute business
activities in an effective way
(Schaper, 2016).
Role of manager of small
business enterprise is simple as he
has to manager the business
operations on local level.
Contrary of this, role of manager
is very complex of lssarge
enterprises (Shane, 2012). Due to
diversification of business
activities in different countries
manager handle more
responsibility and burden. Small
businesses starts with small
amount of funds while its require
huge amount of money to carry
out large business.
Social v/s scalable Similarity between social and Main focus of social enterprise is
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business enterprise scalable business enterprises is both
firm offer and execute various
operation to offer unique and
innovative products to its target
market. Main focus of both
enterprises is to solve the social
problems of their target market
(Carraher and Paridon, 2015).
Both companies first identify the
needs of its customers and then
execute the production process to
fulfil special requirements of its
customers.
to contribute in social
development of society by offer
them solution for their problems
with or without profit. But on the
other hand scalable enterprise run
various activities just to increase
the amount of their profit.
Scalable firms do various efforts
in order to capture a larger market
share in minimum time
(Chittithaworn and et. al., 2011).
On the opposite of this social do
various efforts to to only solve the
problems of individuals and to
make the world a better place.
Main reason development of
social entrepreneurs is to
contribute more in social
development while on the other
hand scalable enterprise develop
to capture a larger market share in
short period of time.
TASK 2
P3 Relevant statistics and data related with impact of small businesses on economy
Commercial activities of small and micro business enterprises contribute a lot in
economic growth and development of a nation. Main contribution of this can be measure by
anlayse the social development of local people. Main feature of these type of organisation is that
it produce and offer innovative products to its target market in order to better satisfy their needs
and wants (Chittithaworn and et. al., 2011). These businesses attract number of venture capitalist
and offer them high return of growth. These are the one who offer and create number of
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employment opportunities form local people. They provide grounds of to local people to show
their skills and talents. All this directly contribute and increase standard of living of people
(Fassin, Van Rossem and Buelens, 2011). Business operations of these enterprises starts with a
innovative idea which attract number of investors as this provide them an opportunity to get high
return on their investments. Business activities of these firms contribute a lot in GDP of country
and ensure economic growth of nation. Due to its wide scope and financial returns this type of
enterprises attract number of potential individuals. These enterprises encourage the trade
activities in different type of areas and contribute more in both economic and social development
of nation (Dennis, 2011). These enterprises provide an opportunity to hand loom workers to
show their talent. Further, these firms provide training to employees to enhance their skills and to
make them able to survive in competitive environment.
Operations of these enterprise affect economy of country at various levels. At local level
this create and provide employment opportunities to local people of nation which increase their
standard of living. Further, on national level, these type of business ventures attract number of
investors by offer them high return on their investment. (Lee-Ross and Lashley, 2010) In case of
international level, enterprise conduct fairs to show the skills of artisans which attract large
number of visitors. This help country in earn foreign amount. In this way, business activities of
these firms attract the activities of a country on various level and at the same time offer quality
goods and services.
Other feature of small and micro businesses is that this increase competitiveness of
industry which help customers to choose quality products from variety of offers (Luiz, 2011).
Recruitment of skilled candidates and training offer to them increase creativity of sector. Further,
government of country also play a big role and provide support to these enterprises and
encourage top execute business operation on international level (Dennis, 2011). This provide an
opportunity to county to earn foreign exchange. All this increase wealth and contribute a lot in
economic growth of nation. Main contribution of small business enterprises is that they offer
employment opportunities to number of people and this can better understood by given picture:
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P4 Importance of small businesses and start ups to growth of social economy
Business activities of various enterprise largely affect the economy of that nation.
Expansion of business activities of small enterprises ensure economic development and vice
versa. Currently, number of small business enterprises are there which are working in United
Kingdom. These firms execute all activities with creativity which increase convenience level of
local citizens. All this help a country in maintain economy (Gorgievski, Ascalon and Stephan,
2011). Enterprises who execute their business activities on global level get affected by various
elements exist in business environment. In that case small business start-ups are the one who
help country in maintain economic level. Further, these offer employment to local people of
country which increase their wealth and standard of living. Further, they offer variety of products
to their target markets which help in solve their problems. Not only this, these firms also offer
consultancy and support services to large enterprises so they can execute big operation in an
effective way. These enterprises are the one who carry out research in order to identify the
features which must be there in company's product to better satisfy the needs of its customers.
Due to operating on a small level these firms offer featured products at affordable prices to its
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target market (Islam and et. al., 2011). Increase opportunities of employment decrease and help
in eliminate poverty from nation. Basically small business enterprises play a role of backbone in
social development of nation.
TASK 3
P5 Characteristics and traits of successful entrepreneurs
Trait refers to that special feature and characteristic of an individual or enterprise which
make it different and unique form other. This characteristics provide various short and long term
advantages to company. Main traits of two successful entrepreneurs Bill Gates and Mark
Zuckerberg which encourage them and help in achieve growth can be understood by following
points: Full of determination: It is very essential that every enterprise should have full of
determination to become a successful one and in order to execute all activities of
business in an effective way. Full determination encourage the individual taking risk
while on the other hand lack of determination create stress and various obstacles in whole
process of entrepreneurship (Lee-Ross and Lashley, 2010). Bill Gates and Mark
Zuckerberg both have this quality which make them successful and able to achieve
desired goals and objectives. Understanding about money management: This is one of the most unique and effective
skill which must be there in an entrepreneur to be successful. To achieve set goals and
objective it is very essential that individual must have detailed understanding and
knowledge about management of money. Understanding leads to undergrowth of
business activities while overspending leads to ruin the business operations. So t is very
important that entrepreneurs should have enough knowledge about how to spend money. Strategy: Strategy is known as sequence of steps follow by an entrepreneur to achieve
desired results and goals (Luiz, 2011). It is very essential that an effective strategy must
be formulate and implement by entrepreneurs for execute business operations. Both Bill
Gates and Mark Zuckerberg use effective strategy which contribute in their success. Passion about business: Passion about business simply means that entrepreneurs should
enjoy the work he do and help in create a positive and joyful environment at workplace
and all this leads success of enterprise (Neck and Greene, 2011). Lack of passion give
rise to unnecessary hurdles, increase stress and decrease profits and profitability. So it is
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very essential that an individual should have passion about business in order to achieve
success. Flexibility: This means that an entrepreneur should have the ability to introduce changes
in business activities and operation as per changing business conditions (Gorgievski,
Ascalon and Stephan, 2011). This help company in make products as per the
requirements of customers and satisfy them. This ensure and help organisation in capture
a larger market share and retain customers for long period of time. Risk taking ability: Success can not be possible without taking risk. Take adequate
amount of risk is one of the main features and essential to achieve success (Schaper and
et. al., 2014). It is very essential for an entrepreneurs to risk in order to get positive
results.
 Vision: Vision refer to that place which an enterprise want to get in coming years. Set an
effective vision is very essential for an enterprise to be successful (Islam and et. al.,
2011). It provide direction to both managers and employees and motivate workers to give
their best.
Characteristics Skeptical entrepreneur: These are the entrepreneurs who first carry out research in order
to find the reason behind success of other enterprises (Burns, 2010). These type of
entrepreneurs take the whole process of entrepreneurship in a positive way and evaluate
every aspect related with it in order to get positive results. Copycat entrepreneurs: As the name implies, these are the enterprises who first analyse
the success of other firms and copy the same to get success. Research entrepreneurs: These are the firms who undertake various type of research in
order to learn various new things related with the process of entrepreneurship. These are
the one who love to learns new and different things (Carland, Carland and Stewart,
2015). To achieve growth and success these entrepreneurs carry out different kind of
research on timely basis. Determined entrepreneurs: These are the one who thinks and success can be achieve
without copy the idea of other. They execute all activities to achieve maximum results
and positive outcomes.
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 Accomplished entrepreneurs: These are the organisation who go through with every
stage of entrepreneurship to get success. Aim of these type of firms is to make a legacy
and to achieve the same these enterprises carry out research in order to understand the
customer more better.
P6 Entrepreneurial personality reflect entrepreneurial motivation and mindset
To achieve success it is very essential for entrepreneurs to have motivation and positive
mindset as this add effectiveness in whole business process (Fassin, Van Rossem and Buelens,
2011). Two successful entrepreneurs Bill Gates and Mark Zuckerberg have this quality which
help them in capture a larger market share. Basically two factors positive mindset and motivation
are interlinked with each other. For example when a person carry a positive mindset then this
encourage and motivate him to execute various business activities in an effective way (Schaper,
2016). Motivation is the factor which encourage individuals to accept different kind of
challenges which help in get positive results. To become successful it is very essential for
entrepreneurs to have these two traits in their personality. Family of individual play a big role in
give shape to thoughts of an individual. An individual learn social norms and basic knowledge
from his family member. Traits of family members, culture and religion contribute a lot in give
shape to personality of an individual. Further, education level of individual also help in give
shape to way of his thinking. Higher education help individual and encourage him in take more
risks. In absence of motivation and positive mindset an entrepreneur can not achieve success
(Shane, 2012). Motivation encourage enterprises to execute complex operation in an effective
way which help in better satisfy the needs of customers and ate the same time provide number of
long advantages to company.
TASK 4
P7 Background and experience can foster and hinder entrepreneurship
Process of entrepreneurship get affected by number of elements. Background and life
experience of individual also play a big role in this. When individual has a positive past
experience then this encourage the individual and motivate him about future activities of
business (Stokes, Wilson and Wilson, 2010). This results in positive outcomes and foster the
process of entrepreneurship. Positive experience increase self confidence and motivate him to
effectively manage all activities of business. Opposite of this, negative experience decrease
morale and self confidence of individual which affect the activities of business in negative way.
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It is very essential for entrepreneurs to understand that success and failure are just result of
process of entrepreneurship. In case of failure entrepreneur should learn what the mistakes he
done and should learn not to do the same in future. In case of positive experience and
entrepreneur should try make it more effective.
Further some in born characteristics of individual also affect the activity of
entrepreneurship. Other factors which affect the attitudes and behaviour of individuals includes
his upbringing, personal traits, financial condition and education. All these factors give final
shape to the personality of a person and affect his process of making decisions. Positive
experience automatically enhance the effectiveness of process of entrepreneurship and negative
experience affect the same in negative way (Storey and Greene, 2010). To become successful all
efforts must be done by entrepreneurs to make the positive experience more effective and in case
of negative experience he should identify the mistakes and should try not to do the same in
future. In this way entrepreneurs can achieve set and desired results.
CONCLUSION
From the above information it can be concluded that different type of entrepreneurs
execute the process of entrepreneurship in order to achieve their desired goals and objectives.
Various traits and characteristics of entrepreneurs contribute a lot in final success of business.
Activities of enterprise largely affect by the typology they relate with. One of the main feature of
business activities of small business enterprises that it affect the economy of nation on various
levels including local economy to international. Further, these plays a significant role in growth
of social economy of nation. It is very essential that there must be specific characteristic and
skills must be there in entrepreneurs to be the successful one. Further, various factors are there
which reflect mindset and motivation of entrepreneurs. Along with this, past experience and
background of entrepreneurs affect the process of entrepreneurship.
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REFERENCES
Books and Journal
Blackburn, R. A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
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Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small business.
Palgrave Macmillan.
Burns, P., 2010. Entrepreneurship and Small Business: Start-up. Growth and Maturity. Palgrave
Macmillan.
Carland, J. C., Carland, J. W. and Stewart, W. H., 2015. Seeing what's not there: The enigma of
entrepreneurship. Journal of small business strategy. 7(1). pp.1-20.
Carraher, S. M. and Paridon, T. J., 2015. Entrepreneurship journal rankings across the discipline.
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Chittithaworn and et. al., 2011. Factors affecting business success of small & medium
enterprises (SMEs) in Thailand. Asian Social Science. 7(5). p.180.
Dennis Jr, W. J., 2011. Entrepreneurship, small business and public policy levers. Journal of
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Gorgievski, M. J., Ascalon, M.E. and Stephan, U., 2011. Small business owners' success criteria,
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Islam and et. al., 2011. Effect of entrepreneur and firm characteristics on the business success of
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