Factors Influencing Entrepreneurial Personality

The assignment discusses the importance of various factors in shaping an entrepreneur's personality. Education, family background, and social networks are identified as key influencers. Successful entrepreneurs such as Simon Cowell, Richard Branson, and Peter Jones are used as examples to illustrate how these factors have contributed to their success.

Entrepreneurship and
Small Business
Management
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Table of Contents
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................3
P1 ...........................................................................................................................................3
P2 ...........................................................................................................................................4
TASK 2............................................................................................................................................6
P3 ...........................................................................................................................................6
P4 ...........................................................................................................................................8
TASK 3............................................................................................................................................9
P5 ...........................................................................................................................................9
P6 .........................................................................................................................................10
TASK 4..........................................................................................................................................10
P7 .........................................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13
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INTRODUCTION
Entrepreneurship is consider as a procedure in which company launch, design and run a
new venture. People who are responsible for setting up these businesses are known as
entrepreneurs. It is a capability for creating a business thereby taking a risk so that profit can be
made (Ács, Autio and Szerb, 2014). Micro business Venture are essential part for increasing
economy of nation, new ideas of entrepreneurs are supported by government up to great extent.
The respective assignment is based on entrepreneurship and small business management. It
comprises of various kinds of new enterprise, similarities among them along with dissimilarities.
Moreover, it will include effect of small & micro businesses on nation economy has been
interpreted. Their importance, characteristic traits and skills are identified. Apart from this, ways
in which personality of entrepreneur impact mindset of people is assessed and manner in which
experience can prevent entrepreneurship is covered.
TASK 1
P1
Entrepreneurship is creative procedure in which an individual established a new business
is set up by making use of effectual and innovative ideas. According to Jared Tanner,
entrepreneur is a person who has a passion for for an idea that they are willing to take risks in
almost everything by which dreams can be transformed into reality. By making use of limited
number of resources entrepreneur has to make their business successful. They must take risk and
should not remain confined by which they can make their share their part enhancing economy
local, national and international. There are various type of entrepreneurial business ventures,
some major of them are explain below:-
Small business enterprise: UK has large figure of little businesses. It has been recovered
that UK has high rate of evolution of entrepreneurs within small businesses. This type of venture
are operate through small amount worker, owners, family members or friends. Examples are
small production houses or internet cafes (Blackburn, Hart and Wainwright, 2013) (Bosma and
et. al., 2012).
Scalable start-up enterprise: In this entrepreneurs aims at creation of innovative and
qualitative services or products. In this entrepreneur have full confidence on their idea and they
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believe that by this they will be able to gain high profits. For expanding their businesses they
need capital investment.
Large company entrepreneurship: These firms aim to furnish unique offerings by which
they can retain customers as well as stay within market for longer time frame and remain
competitive (Bridge and O'Neill, 2012).
Social enterprise: Entrepreneur focus on creation of offerings for enhancement of
society. Entrepreneur converts idea into products which will lead to progress within society.
Serial entrepreneurs: An individual who starts various businesses within a short interval
of time and tends to engage in new ideas so that work can be carried out simultaneously are
referred to serial entrepreneurs. For an instance, Phil is a marketing expert who has experience of
around 15 years in an advertising industry and has around three businesses (What is a Serial
Entrepreneur, 2019).
Intrapreneurs: An individual who is assigned with task of development of innovative
project or idea in an organisation is referred to intrapreneur. They are usually given autonomy to
work on project that may lead a firm to have affirmative impact on their overall performance.
Owner-managers: They are the employees who have a position within an incorporated
enterprise in which they are liable to work alone or in a team for holding control ownership of
enterprise. They possess authority to act on behalf with respect to contracts as well as other
organisations.
Description of Entrepreneurship ventures and its Typologies:
Topology mention to categorization and representation of property as per particular
examples with respect to their plan, style, form and structure. Different types of topologies are
defined below:
Survival Ventures: They are indulged in accomplish primary need and demand. These
businesses ventures are unregistered as well as they don't conduct their operations at their office.
They do not possess any kind of banking history and they make use of limited resources for
carrying out operations (Choi and Majumdar, 2014).
Lifestyle Ventures: They are formed to attain high level of productivity. They possess
fixed number of employees and they are mainly small business organisations. They do not
expand and are not capable of growth.
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Managed Growth Ventures: Their aim is to achieve stable growth and expand
themselves within market. They are medium sized organisations which are in continuous
reinvestment mode.
Aggressive Growth Ventures: They make use of technology to attain innovative
potential. By utilisation of equity capital more exponential growth can be attained. By this they
will be able to take their business into global market.
Sole traders: They are individuals who carry out their business exclusively by
themselves. They are responsible for managing and controlling entire operations along with
profits and loss that have been occurred. They are proprietor.
Partnership: This is a form of business in which two or more people are responsible for
carrying out entire responsibilities of of organisation and are also liable for profits as well as
losses that take place.
P2
By making use of diverse types of factors, sameness as well as dissimilarity in an activity
and task can be efficiently carried out (Chrisman and et. al., 2012). Below mentioned table
describe about similarity and diverseness of entrepreneur business ventures.
Entrepreneurial
venture type
Sameness Dissimilarities
Small v/s Large
Entrepreneurial venture
 These type of
enterprises both small
and large execute their
functions through
contribution of all
possible reimbursement
to their consumers
through established
certain their certain
demand and needs in a
most appropriate and
efficient way (Decker
 Suitable isolation in
between large scale and
small business
enterprises can be
successfully carried out
by evaluation of their
financial conditions.
Like, large scale
organisations control
its venture with
massive requirement
of capital for carry
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and et. al., 2014).
 Both the small and
large enterprises
ensures that the best
value product and
services are offered to
the customers as it is
important for the
survival of each.
efficiently carry out
their everyday business
activities. Further
more, of the
perspective small
business venture
operate and conduct its
business activities
along with limited
source of informant as
well as fund.
Social v/s Scalable
Enterprise
 Both social and
scalable type of
entrepreneurs provide
new services to the
market which helps in
increasing the options
with the users of same.
A new concept is
brought to the market
which further helps in
raising the current
living standards of the
market.
 Enterprises like social
and scalable execute
their business functions
with a intention to raise
their business within
short interval of time
period by contribution
 Social entrepreneurs
have prime goal of
providing welfare to
the society with an aim
of developing the
current state of market
on the other hand
Scalable entrepreneurs
take the risk of
operating in the
business world with a
prime goal of earning
profit in return.
Entrepreneurs in
scalable enterprises
carry out their daily
operations while
satisfying large number
of customers in order to
amplify profitability of
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of best effective
services.
enterprise. While on
the other hand,
entrepreneurs of social
enterprises resolve
business issues and
conflicts in a way so
that help them in
managing business
activities in a effective
manner.
Lifestyle & survival
Entrepreneurial Venture
These kind of ventures manage
its routine business activities
with an intention to receive
huge profit along with desired
success. Furthermore, such
firms also intend towards
creation of elevated end
goodwill within a marketplace.
In lifestyle venture, individual
done business activities
according to their passion and
interest. They execute all
organisational process as per
their area of interest (George
and Bock, 2011). Like fashion
bloggers and travel bloggers.
Entrepreneurs of survival
venture manage their business
activities in a way so that they
can attain long their m benefits
and desired growth for a long
run duration easily.
TASK 2
P3
Micro businesses are organisation whose annual sales and assets value is less than
$250,000 per year and have less than five employees which includes owner also. Small
businesses are privately owned by sole proprietorships, partnerships and corporations which have
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less employees and the annual revenue is also less as compared to regular sized corporations or
businesses.
United Kingdom is a hub of micro, small and medium term entities where almost 4.1
billion companies function within the nation. The below mentioned graphical representation
depicts that 87% of overall economy of nation is run by such businesses, resulting in a
substantial outcome on GDP accounting to nearly 6.1%.
(Source: Impact of Economy on UK, 2016)
Along with this, there are abundant numbers of reimbursement which they use to render
with in society, which also creates an impact on the economy as well as community. This
provides assistance to UK to get job prospects by which they can give their effort within job,
thereby earning funds for satisfying the operational needs. The job opportunities which are
provided by such entities are available largely for minor sections of society and are for untrained
and unqualified persons within society (Kirzner, 2015). Also, it will assist them in creation of
enhancement to life style of people from minor or inferior sections of society, so that individuals
can raise the way of living by accomplishing required needs and demands.
P4
Social economy refers to an intended framework for understanding financial relationship
in between organisations within society. It is refers to set of business as well as economic
activities that are formulated by rich diversities like mutual associations, cooperatives, etc.
Social economy is created by surplus of firms as well as enterprises like mutuals, foundations,
associations, paritarian institutions and social enterprises. Social economy creates a strong
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impact of providing employment, leads to innovation in services and also makes relevant impact
on society as they have innovative products and services which will make their life more simpler.
Small-businesses as well as start-ups are crucial within social economy as they render the locals
with employment options. It can be understood like this, when a new business is started they they
obviously need employees to carry out their operations. Similarly, when a start-up is opened then
it is obvious that they will be offering something new or might be some kind enhancements
within products that are being offered by others. It will lead to accomplishment of social needs as
well as local development.
In an economy some of these organisations hold a significant function in relation to
expansion of country in economical and societal aspects. As they facilitate them to attract
sufficient number of customers en route for their products and services which are being offered
by them, so that they (minor sections of society) can benefit from such offerings at very little
expenditure. This all will assist organisations to generate large amount of revenue and also aid
them in achieve enormous probability in terms of profitability (Kiss, Danis and Cavusgil, 2012).
Also, it will direct them towards growth, development and expansion of their business at market
place, thereby contributing to development of nation's economy. In addition to that, an extra
advantage that they render for social economy is massive employment percentage. Small and
micro business has opted to hire employees to complete their goals at low wages, by which their
cost of production will remain small. For this, they are used to hire employees from weaker or
inferior sections of society who will easily agree to work and also these people are uneducated
and do not possess lots of knowledge. Also this assists them to make work force (Kuratko,
2016). This all facilitate people who are uneducated and are from lower section of society to earn
their basic living requirements and improve their standards of living by earn some thing. By this
they will be able to attain money for satisfying their daily basic needs. This all will assist people
to get opportunities by which such individuals can become equal section of society while
contributing to well being of nation.
TASK 3
P5
Entrepreneurial mindset refers to a way in which an individual approach to certain
situations through which they feel inspired, empowered and are capable of taking responsibilities
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into their hands. They also linked with taking calculated risks which sometimes might lead them
to failure but it will not happen always. They possess different mind-set, they are illustrated here.
Decisiveness leads an entrepreneur to success, this will lead them to acquire ability for looking
into situations or problems and make decisions accordingly. Confidence is other mind-set of an
individual, it is essential which enables them to carry out their operations affirmatively as well as
enthusiastically. Accountability, it denotes that entrepreneur needs to take liability of their work
they have done as well as results obtained from them both in terms of either, success or failure is
attained. Resilience, as an entrepreneur by taking risks, they will be able to deal with mistakes
they have made and tackle them. Every individual possess some characteristics which makes
these people different from each other. It is necessary for an entrepreneur to remain up to date
with time so that they can enhance their skills and capabilities (Ács, Autio and Szerb, 2014).
Entrepreneurial mind set can be defined as building block of entrepreneurship which assists them
to evaluate the opportunity, creation of value and capturing that value by which relevant
profitability can be attained in enhanced manner. Entrepreneurs are not born rather than they are
made by making use of the opportunities they get and having the innovative aspects to different
perspectives. Some traits of entrepreneur comprises of capabilities, adaptability, confidence,
knowledge, etc. With respect to this, skills and characteristics of entrepreneurs is mentioned
below:
Peter David Jones
He is British entrepreneur who has created there own academy in which young people are
taught skills of entrepreneurship. Attributes and skills have been mentioned below:
Characteristic of Peter Jones:
Passionate: It is one of the best attribute which is possessed by an individual. It assist
them to increase probability of success in effectual manner. Peter Jones is very passionate about
their profession, this can be understood by number of times they have taken risk due to which
there was loss of around 200,000 euros.
Innovative Thinking: Entrepreneurs possess this characteristic it can be in any field either
property, retail, gadgets or anything. By this entrepreneur can realise their skills and Peter Jones
has started teaching this aspect to young people (Blackburn, Hart and Wainwright, 2013).
Skills of Peter Jones:
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Time management: For carrying out business it is necessary to have this skill as it will
assist in accomplishment of goals within appropriate time frame. Peter Jones make sure that they
manage their work as given time and utilise extra time by teaching young entrepreneurs.
Confident: It assists entrepreneur to make their business prosperous. High level of
confidence assist in accomplishment of tasks in trenchant way thereby leads entrepreneur to
attain their objectives and goals.
Entrepreneurs are not born rather they learn from experiences and knowledge they have
gained at their school time, graduation or from home. They enable them to grow as an individual
and apply those skills while furnishing their services.
P6
Each individual has their own characteristics which make them different from others and
allows them to push themselves by which they can attain their targets as well as goals. To have
their own personality individual must acknowledge their skills.
Openness: People who are open to learn, gain experience up to high extent. By this they
will be able to possess insightful, imaginative and wide range of interests. This will lead to high
sales which in turn enhance productivity (Bosma and et. al., 2012).
Conscientiousness: For carrying out business operations in appropriate manner,
entrepreneur needs to be completely aware about what they are about to do and how it can be
carried out so that success can be attained. For this they also need to have conscious mind and
must be adaptable to changing environment.
Extraversion: Individuals possess traits such as excitability, talkativeness and sociability.
Individuals possess broad level of introversion towards people surrounding them but people who
have lower level of extraversion signify that they are reserved and are not open (Aspects of
Entrepreneurial personality, 2017).
Self-dependence: Entrepreneur is a self dependent as this skill enable them to turn their
dreams and views into reality by taking risks and making use of opportunities which comes in
their way. By this they are able to control their actions by analysing their achievement as well as
make use of their actions to have enhanced results.
Along with this, entrepreneurs possess power as well as control over employees working
under them. Furthermore, they also possess abilities to take risks which makes them strong with
respect to certain aspects and enable them to gain knowledge with respect to various
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perspectives. This lead them to grow as an individual. Overall, there is an affirmative impact on
entrepreneurial mind-set.
TASK 4
P7
Entrepreneurship refers to process of development, intuition, organisation, management
and execution of a prosperous undertaking. It can be said to be the willingness as well as
capacity of individual for initiating and formulating innovative ideas by which they can carry out
their operations smoothly (Bridge and O'Neill, 2012). Entrepreneur is also called innovator who
have knowledge of different aspects through which they can have innovative ideas. Each
entrepreneur possess different qualities like openness, passion, creativity, risk taking and there
are many more. The abilities of entrepreneur are dependent on different factors, they are
mentioned below:
Education: It is an important factor for an individual as idea can be generated by that. It
will assist to take into account different factors and analyse their impact. Entrepreneurs have
developed their mind by working at younger age (Choi and Majumdar, 2014). To understand this
take an example of Simon Cowell, they have learned music from their family. Their father was
property developer and mother was ballet performer. Laurence Graff is dropped out from school
at 14 and was scrubbing toilets. But later on had a polished diamond trading firm within
Switzerland. Peter Jones had their schooling from Desborough and The Windsor Boys' School
They have a passion for tennis.
Family background: It has great influence on minds on entrepreneurs. An individual
who has been brought up within challenging environment knows how to react in specific
situation and ways for handling it. Like Simon Cowell has gone through various hardships in
their life but this all lead them to grow as an individual. Richard struggled within schooling and
was dropped when he was 16 years old. At the age of 21 Peter was married and had their own
home.
Social Networks: It assists in development of healthy relationship for the rationale of
gaining knowledge. Networking holds crucial part within an individual's life (Chrisman and et.
al., 2012). Skills are improved by individuals by making contacts with other people and by
acquisition of more experiences by taking into consideration the manner in which ideas of social
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networking are carried out. Simon established social networking which assisted in creating
impact on different people. Richard Branson has developed the networks as it is necessary for an
entrepreneur (founder of Virgin group) to develop the enhanced relation with people as by this
they can know the people around them. Peter John carried out their love of tennis by teaching
lessons to others and also gained money from the same.
All this have a strong positive impact on them as they gained a lot of experience from this
and it also assisted them to grow as an individual.
CONCLUSION
It has been concluded from the above report that there are large number of ventures are
persist within an business environment. The different type of ventures which are identified
includes social, scalable and large. All these ventures have their huge contribution in the process
of the development of the nation. The development that can be gathered by nation with the help
of operation of these ventures includes creation of_1559045703 (2) job and improvement of
living standard. To become the successful entrepreneur must have the good skills and
characteristics. The important skills which must needed to have includes communication and
problem solving.
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REFERENCES
Books and Journals
Online
Aspects of Entrepreneurial personality. 2017. [Online]. Available through:
<http://smallbusiness.chron.com/important-small-businesses-local-economies-
5251.html>.
What is a Serial Entrepreneur. 2019. [Online]. Available through:
<https://www.myaccountingcourse.com/accounting-dictionary/serial-entrepreneur>.
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