Entrepreneurship and Small Business: Impact and Characteristics Report

This report, focusing on entrepreneurship and small business management, explores various types of entrepreneurial ventures, including small business entrepreneurship, scalable start-ups, and large company entrepreneurship, highlighting their definitions, characteristics, roles, and objectives. It analyzes the impact of micro and small businesses on the economy, emphasizing employment generation, increased cash flow, and infrastructure development. The report also examines the importance of small businesses and start-ups in providing job opportunities and fostering innovation. Furthermore, it delves into the characteristic traits and skills of successful entrepreneurs, such as decision-making, problem-solving, confidence, discipline, passion, and risk-taking, using Andrew Carnegie and Bill Gates as examples. It assesses how entrepreneurial personalities reflect motivation and mindset through the Big Five Model of personality theory, and discusses how background and experience can influence entrepreneurship, providing a comprehensive overview of the subject.

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODDUCTION...................................................................................................................3
ACTIVITY 1..............................................................................................................................3
Types of entrepreneurial ventures..........................................................................................3
Similarities & difference between entrepreneurial ventures..................................................5
How micro and small business impact on the economy........................................................5
Importance of small business and business start-ups.............................................................7
ACTIVITY 2..............................................................................................................................7
Characteristic traits & skills of successful entrepreneurs......................................................7
Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mindset............................................................................................................................9
How background and experience can hinder or foster entrepreneurship...............................9
CONCLUSION........................................................................................................................11
REFERENCES.........................................................................................................................12

INTRODDUCTION
Entrepreneurship is the activity of an entrepreneur which start the new venture in
order to generate above average profits. In this regard business has been started so that sales
can be maximize by satisfying the desires of consumers and it help the corporation to grab
more market share. In the success of a business management plays a vital role in context to
the growth. To better this concept Make it Work has been chosen which is global business
consultancy firm which advise building entrepreneurs on how to be successful with their
venture. There are various topics has been covered in this report such as: to explain various
types of entrepreneurial ventures, similarities & difference among entrepreneurial ventures.
Along with this it also discuss about impact of small businesses on the economy and to assess
key aspects of an entrepreneurial mindset.
ACTIVITY 1
Types of entrepreneurial ventures
Entrepreneurial ventures are the business of different sizes & scope that are managed
by an entrepreneur which having distinct purposes. If entrepreneur has innovative idea than
small start ups can grow its business within short period of time. It is required to provide
better products and services in order to fulfil the desires of consumers and price should be
reasonable and there are different types of entrepreneurial ventures which are as mention
below:
Small business entrepreneurship: These businesses operates at small level and they
are small in nature and required less capital. Its revenue generation depends on that industry
in which they belong. They emphasis to generate more profits so that they can sustain for a
long term. As an instance travel, grocery stores etc (Wright and Stigliani, 2013).
Scalable start up: In this type of business a person makes creative idea and look for
an action plan. It is recently presented business enterprise who will be developed in selected
market. In this type of business entrepreneur won’t dispatch business in vast market.
Large company entrepreneurship: These type of ventures are operated in large
market and have more resources to perform the business activities. They more emphasis
towards innovative technology in order o satisfy the desires of consumers.

Typology of entrepreneurship:
The Revitalised Tycoons: They are more likely to be middle aged with a slight bias
towards females but they are generally experienced & have held other positions.
The time honoured traditionalists: These are more likely to be male and older and
they are more confident due to their achievements and want to create something of their own.

Similarities & difference between entrepreneurial ventures
As there are various similarities and differences can be seen in entrepreneurial
ventures which are as mention as below:
Basis Small business Scalable start up Large Company
Definition It is that type of
business that requires
minimum investment
to perform the business
operations.
It is a business which is
operated to accomplish
its vision within
suitable planning &
strategies.
To operate its business
at large market and
have more market
share.
Characteristics To perform the
business operations
they need limited
resources and less
government
interferences.
It has focuses on
making more venture
capital so that business
can expand within very
short time.
As per the market
conditions and desires
of consumers
fluctuations can be
seen in the business.
Roles To generate profits
limited resources can
be uses.
It has role to search
respectable & scalable
model.
To provide quality
products to fulfil the
desired of consumers.
Objectives To maintain profits
(Tessema Gerba,
2012).
It has objective to
invite investors for the
purpose of financial
support and emphasis
towards new ideas.
As the primary
objective is to satisfy
the desires of
consumers by using
innovative technology.
How micro and small business impact on the economy.
For the growth and development of economy small and micro business has contribute
a lot. Due to these production has been increase and people get employed and per capital
income of individuals will also increase. It also contribute in GDP. Make it Work can
encourage the micro and small businesses to contribute for the development of economy.

As Micro and small businesses are emphasis to grab more market share and for that
purpose it focuses to provide quality products and services in order to fulfil the demands of
consumers. They does not have huge resources and more capital to make investment for the
purpose to expand the business. As the impact of micro and macro corporations on economy
are as describe below:
Employment generation: Micro and macro organisation creates the job opportunities
to the people and hire individuals so that they can perform in order to achieve the goals of
corporation. So it is beneficial to generate employment in the country and due to it
individuals can manage bread and butter for their livelihood. If people are employed than
spending power will increase and it also contribute in the growth of economy. For the
development of country employment generation is very important (Sullivan and Meek, 2012).
More cash flow: As micro and macro businesses increase the cash flow within the
country because they provide job opportunities to the individuals and due to purchasing
power and per capital income will increase as a result people does not hesitate to buy the
things. So due to it more money will be circulate in the economy which is important for the
growth and development.
Infrastructure development: As small and micro businesses has contributed in the
national income of the country as because it pay tax to the government of United Kingdom.

Taxes are the main source of revenue and it is used for the development of infrastructure
which involves construction of roads, bridge, college, hospitals, building etc.
As from the above chart it has been analysed that micro business has contributed
18.9% towards employment where as small business has contributed 23.4% towards the
employment generation in UK which is helpful for the economy growth and development.
Importance of small business and business start-ups
As social economy has formed by affluent types of ventures, corporations and firms
which involves associations and mutuals. For the development of social economy start ups
plays a vital role. For the government it is important to provide support in context to its
growth. Due to the Brexit there are various issues has been faced by the small business and
start-ups . In this regard Make it Work can encourage the small business to sustain in the
market so that they can earn profits. As start ups and small business does not much affected
due to the economic changes and it provide help the country to face to crisis in context to the
growth of social economy. As the importance of this as describe as below:
Providing more job opportunities: As small businesses and start-ups has creates the
job opportunities for the people of country. As because when they start their business they
need employees and for that purpose workers has been hired so that work can be done in
effective manner and predefined goals can be accomplish (Scarborough, 2016).
Emerge innovative products: As small businesses and start ups has emphasis towards
the new product and innovative so that they can expand the business and grab the market. It
is helpful to earn profit which help the business to sustain for a long term.
ACTIVITY 2
Characteristic traits & skills of successful entrepreneurs
As entrepreneurs are the persons who think innovative to develop a business idea so
that they introduce a valuable product and it help them to capture more market share. As
there are various entrepreneurs which have different traits and skills and it involves Andrew
Carnegie and Bill Gates. As Andrew Carnegie was born in the year 1835 and in the year 1889
they owned Carnegie Steel Corporation and it is the largest kind in the world. Whereas Bill
Gates is an business magnate, investor, philanthropist and author and it known as principal
founder of Microsoft Corporation. In the year 1975 it introduced Microsoft that is the biggest

PC software company. Both of them has introduced an innovative idea to get success and
they are very renowned persons in the world. Both of them have various skills which are
mention below:
Skills:
Decision making: As both the entrepreneurs have good decision making skills and
that’s the reason are very much famous in the world because of their effective decisions and
thinking.
Problem solving: Bill Gates and Andrew Carnegie both have of problem solving skills
and in many adverse situations they take better decisions by analysing the problem so that it
can be resolve (Koellinger and Roy Thurik, 2012).
Traits:
Confident: Both of the entrepreneurs are very much confident about their business
decision and it brings positivity which is very useful for the individuals. This specific trait
makes them different from the other managers.
Disciplined: As Andrew Carnegie and Bill Gates both are very disciplined in personal
as well as professional life. This trait does not seen in other managers so it make them
different from others.
Characteristics:
Passionate: Andrew Carnegie and Bill Gates both of them very passionate about their
work and which help them to achieve the goals and objectives and become a successful
entrepreneur. For other entrepreneurs it is very difficult to be passionate about their work.
Risk taking: To take the risk is important for the business growth and both of them
take the risk to start its own business at this huge level and it helps them to generate above
average profits. This things cannot be seen in other managers.
So these traits, skills and characteristic of Andrew Carnegie and Bill gates help them to get
huge success and it does not found in other managers (Gordon and Jack, 2012).

Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mindset
To have an attractive personality is required for the entrepreneurs so that other
individuals can feel motivated and attract towards them. As Andrew Carnegie and Bill Gates
both of them have an attractive personality which reflect entrepreneurial motivation &
mindset. For that purpose it is require to have effective qualities and skills so that a person
can become successful. As Big Five Model of personality theory is very useful that assist
entrepreneurs to acquire specific skills & traits and these are as mention as below:
Openness to experience: This tactics has consist of six elements which are as: active,
imagination, preference of variety, aesthetic sensitivity, intellectual curiosity & attentiveness
in context to the inner feelings. These traits are important for an entrepreneur who want to
make start up in effective manner. Apart from this it always ready to take challenges so that it
can achieve the predefined objectives.
Conscientiousness: For an entrepreneur it is important to emphasis towards the
vision and goal so that it can achieve the targets within stipulated time frame and as per the
requirement.
Agreeableness: This consist of trustworthy, cooperative & coordinative that is
required for an entrepreneur and along with this it is important to have innovative ideas so
that business can grow and get success. In this regard workers feel motivated to work better
in order to achieve the goals of company (Fayolle, 2013).
Extraversion: As per this it is important for the entrepreneurs to be assertive,
energetic, talkative in order to maintain healthy relationship with the workers and it is also
helpful to build loyalty which is helpful for the growth and success of enterprise.
How background and experience can hinder or foster entrepreneurship
For an individual it is important to have good background so that it can get some
inherent qualities and skills which is very help for the entrepreneurship. As well as working
experience is also important because it is helpful to develop understanding about the business
so that goals can be accomplish effectively and as per the requirement. It is also helpful to
gain the knowledge that how to handle the situations at work place in order to achieve the
objectives. Andrew Carnegie and Bill Gates have good experience and background which
help them to become a successful entrepreneur and it involves:

Background of Bill gates:
As Bill Gates has born in the year 1955 and the father William Gates was a lawyer
Bill Gates had enjoyed the process of working with computers & arranges with an
organisation that is Computer Center Corporation.
From the early age it was very committed towards its work.
Experience:
In the life there are various problems has been arise such as less funding.
It have studied computer programming to gain the experience (Blackburn and Wainwright,
2013).
Background of Andrew Carnegie :
It had born in 1835 and one it is most renowned & famous industrialist of his time.
The formal education has ended when it left Scotland where it had no more than a few year’s
schooling and works as Bobbin at cotton factory.
Experience:
It was a messenger in a telegraph office & secretary operator for the superintendent of
Pittsburgh division.
The investment has made by Andrew Carnegie in coal, iron and oil corporations.
Background and experience are very helpful for the entrepreneurs and it help them to
take better decisions in order to resolve the problems and develop their thinking to gain the
knowledge. As Andrew Carnegie and Bill Gates both of them has faced various challenges in
their life and both of them was very positive in their life that’s why they achieve great
success.
Impact of background & experience on entrepreneurs, both positively & negatively:
Positive impact: As both of them has faced many problems in their life but they never
give up and remain positive which help them to get tremendous success and growth.

Negative impact: Initial days they face some problems due to shortage of cash and
there were many hurdles which restrict them to achieve success at initial stage (Audretsch,
2012).
CONCLUSION
As from the above report, it has been concluded that entrepreneurial and small
business have contributed a lot in the growth of nation. In the growth of social economy start
ups has contributed and it is helpful in context to the development. As there are various traits
and characteristics that make entrepreneurs different from other business managers. As
experience and background are also helpful in context to the success of entrepreneurs.

REFERENCES
Books and Journals:
Audretsch, D., 2012. Entrepreneurship research. Management Decision. 50(5). pp.755-764.
Blackburn, R .A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and
enterprise development.20(1). pp.8-27.
Fayolle, A., 2013. Personal views on the future of entrepreneurship
education. Entrepreneurship & Regional Development.25(7-8). pp.692-701.
Gordon, I., Hamilton, E. and Jack, S., 2012. A study of a university-led entrepreneurship
education programme for small business owner/managers. Entrepreneurship &
Regional Development. 24(9-10),. pp.767-805.
Koellinger, P. D. and Roy Thurik, A., 2012. Entrepreneurship and the business cycle. Review
of Economics and Statistics. 94(4). pp.1143-1156.
Oly Ndubisi, N. and Iftikhar, K., 2012. Relationship between entrepreneurship, innovation
and performance: Comparing small and medium-size enterprises. Journal of
Research in Marketing and entrepreneurship.14(2). pp.214-236.
Scarborough, N. M., 2016. Essentials of entrepreneurship and small business management.
Pearson.
Sullivan, D. M. and Meek, W. R., 2012. Gender and entrepreneurship: a review and process
model. Journal of Managerial Psychology, 27(5), pp.428-458.
Tessema Gerba, D., 2012. Impact of entrepreneurship education on entrepreneurial intentions
of business and engineering students in Ethiopia. African Journal of Economic and
Management Studies.3(2). pp.258-277.
Vanevenhoven, J., 2013. Advances and challenges in entrepreneurship education. Journal of
small business management. 51(3),. pp.466-470.
Wright, M. and Stigliani, I., 2013. Entrepreneurship and growth. International Small Business
Journal 31(1).pp.3-22.