Importance of Entrepreneurship Skills for Business Success

This report explores the significance of entrepreneurship skills in achieving business growth and development. To succeed, entrepreneurs must possess specific skills and capabilities that differentiate them from others and enable them to compete effectively. Additionally, factors like experience, background, and education play a crucial role in fostering or hindering entrepreneurial success.

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types of entrepreneurial ventures and their relation to the typology of
entrepreneurship...........................................................................................................................1
P2 Similarities and differences between entrepreneurial ventures..............................................2
TASK 2............................................................................................................................................4
P3 Interpretation of data and statistics on how small and micro business impact economy.......4
P4 Importance of small business and start ups for the growth of social economy......................6
TASK 3............................................................................................................................................7
P5: Characteristic Traits and Skills of Successful Entrepreneurs that differentiate them from
business managers........................................................................................................................7
P6. Aspects of entrepreneurial personality which reflect the motivation and mindset of
entrepreneur.................................................................................................................................9
TASK 4..........................................................................................................................................10
P7. Examining whether background and experience can hinder or foster entrepreneurship.....10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneurship is transforming an innovative idea into a successful business. It is the
study which is related to the study of that how business are created and what are the actual
process which are involved in the process of starting own business (Audretsch, 2012). An
entrepreneur is a person who work to convert an innovative idea in to a business. By
implementing new and innovative ideas entrepreneur help in the development of the economy,
just as small business and micro business do. Small business is a business which is operated on a
small scale. The following report contains the detail information about the various types of
entrepreneurial venture and it also states the similarities and differences between these ventures.
This report explains the assessment of relevant data and statistics about small business and its
impact on economy, it also explain the importance of small business and start ups for the growth
of social economy. This report also determine the skills and characteristic traits of a
entrepreneur, and the aspects of personality which reflect the entrepreneurial mindset and
motivation.
TASK 1
P1 Different types of entrepreneurial ventures and their relation to the typology of
entrepreneurship
Entrepreneurship is a method which creates new business at the market place with an aim
to increase the sale and profit margin. These entrepreneurship are also called as the small
business. It includes the conversion of innovative idea into a successful business, there are
mainly four types of entrepreneurial venture which are as follows:
 Small business Entrepreneurship: these are the business which are run at the risk of an
individual who is running a small business. In this of business the main objective of an
individual is to earn small profit and keep its business going with slow and steady
growth.
 Scalable start-ups entrepreneurship: Scaleable start up entrepreneurship are those
business in which the main aim of the entrepreneur is to earn maximum profit and they
set their vision in order to bring the change in the whole world (Barringer, 2015).
Entrepreneur hire highly qualified professional to operate its business and increase the
1

market growth of the company. The scalable start up entrepreneurship includes twitter,
Facebook, Instagram etc.
 Large company entrepreneurship: Large company entrepreneurship are the businesses
in which the entrepreneurs run their business of a large scale and maximize their profit
and increase its market growth and stability (Belz and Binder, 2017). In this types of
business they product the goods a per the taste and the preferences of the target customer.
These large company entrepreneurship produces good with an innovative and effective
technique in order to stand out in the competition. The mangers managing operations in
these entrepreneurship regularly send their employees on training and development
program to enhance their knowledge and skills resulting in the improvement in their
efficiency and increase the company's financial resources.
 Social Entrepreneurship: social entrepreneurship are the business which focus on the
development of the social need of the society and its customer. These business provided
the products which help in the reduction in the problems, the business which work for the
welfare of the society are mainly considered as an non-profit organisation.
Typology of the entrepreneurship
 The skeptical entrepreneur: Skeptical entrepreneur are the individuals who have the
capability of innovating new techniques in business, builder, opportunist who can garb
the opportunity etc. They analyses and identifies the business of other competitors and
take innovative decision to take competitive advantage.
 The builder entrepreneur: Builder entrepreneur are the individuals whose main aim si
to create their own business and bring new and innovative ideas to over come the
problems. They are the entrepreneur who believe in the creation of innovative product to
solve a problem and satisfy the need of their consumers.
 The specialist Entrepreneur: They are the entrepreneurs who start up their own
business with the help of their own capabilities and skills (Bridge and O'Neill, 2012).
These entrepreneurs have a complete knowledge about the field of work in which they
perform activity.
P2 Similarities and differences between entrepreneurial ventures.
Scalable and social entrepreneurship
2

There are many similarities between these types of entrepreneurship such as These are
the enterprises which involve the use of various software applications which includes, Facebook,
twitter, Instagram, etc. The main objective of this type of entrepreneurship is to earn profit and
increase their sales (Burns and Dewhurst, eds., 2016). In order to enhance their business for
future challenges they develop opportunities and over come those challengers. In this type of
entrepreneurship individual uses social networking sites such as, Facebook, twitter, Instagram,
etc. to promote their business. The main motto of these types of entrepreneur ship companies is
to increase the companies profits by satisfying its consumers social needs (Canina, Palacios and
Devece, 2012). These entrepreneurs raise future opportunities and face their current challenges in
order to get better outcomes.
As far as difference are concerned they are in order to fulfil the needs of their customers
these entrepreneurs uses various environmental factors. Their main focus is on their leadership
skills and and after the proper analysis of various options they invest in their business. They
mainly rely on their tangible and quantifiable measure of performance which includes, market
shares, financial indicators, etc. whereas Social business entrepreneurs focuses on the social
needs and wants of their customers. They put all their efforts in order to solve problems related
to various social factors. These entrepreneurs generate funds from the individuals of various
sectors and invest it in the charitable institutions. In this type of entrepreneurship business the
entrepreneurs measure all the social changes and performance.
TASK 2
P3 Interpretation of data and statistics on how small and micro business impact economy
The small and macro businesses play an important role development of economy of any
country (Gundry, Ofstein and Kickul, 2014). Eventually, entrepreneurial businesses are
categorised into two parts which are micro and small businesses. The micro business is a kind of
business that is small in nature, it requires less capital as well as less human resources to
implement various functions. This type of business can use less then five members and can
invest maximum $ 40000 capital. On the other side, small businesses are little larger in compare
to micro business. It includes more then five members as well as their owners can invest more
capital. Though both of businesses do not produce large amount of profit. Herein, the aspect of
united kingdom entrepreneurs are very important for enhancing the growth of their economy as
3

well development of country. Some impact of entrepreneurship on the economy are mentioned
below:
Increase in job opportunities- Entrepreneurs start the business with own risk and they
are able to hire new candidates to run their functions properly. It helps a country to overcoming
the issue of unemployment as well as eligible people get the desired jobs. In the context of united
kingdom, it helps their economy by providing jobs. Though, UK is a developed country but
unemployment is issue of most countries which is resolved by the entrepreneurship (Kirzner,
2015).
Increase in per capital income of individuals- Due to entrepreneurship, per capital
income of individuals can increase which somehow helps to the countries economy. This is why
because if people will have the job then automatically their income will increase which directly
help in boosting the country's economy. Herein, the UK if individuals will get the job then per
capital income of families and individuals will increase.
Optimum utilisation of country's resources- Small and large businesses use the
resources in an effective manner for better result. This is possible because they have limited
resources but they try to gain profit by using them effectively (Kiss, Danis and Cavusgil, 2012).
Due to this country's resources can not be waste. If small and micro businesses will utilise the
resources of any country then it will result in higher profitability.
Herein, the impact of micro and small businesses are mentioned in table and graph form
to understand easily. The data which are mentioned below shows the importance of these small
businesses in the context of UK:
4

The above mentioned table and graph shows the importance of small and micro
businesses for the united kingdom. In the table it is shown that from the year 2012, the value of
these organisations, is increasing continuously. In 2012 it was 100 which increased in next 6
years and became 130 in 2018. Same as in the graph, in which the value of small and micro
organisations is increasing continuously from year 2008 to 2018. Additionally, it will increase in
upcoming years. The above graph also explains the value added by SME's in the last previous
5

years. The above graph shows an increase contribution in the economy which estates that the
UK's economy will be boosted in the near future as it goes in the upward direction.
P4 Importance of small business and start ups for the growth of social economy
Social economy: Social economy states for analysing the collection of social objectives
form organisations. As per the European commission, it is analysed that social economic
organisations are divided in cooperative terms. The mutual societies and companies with social
enterprises not only remain based upon participation but also helps in maintaining social role for
organisations (Kuckertz, 2013). For a sustainable structure, it is essential to explore the
opportunities for small business enterprises. Some of crucial factors subject to developing the
social economy and scales are defined as follows:
Creation of employment
It is one of the significant factor of little and medium endeavour which can give
commitment so as to progress of work chances to expansive masses in the economy of joined
kingdom. It will wind up solid when little and medium endeavour begins and give chances to
individuals to working with them. It very well may be founded on the buyer and upgrade their
living of standard to give distinctive items. To extend the business as per nation so there is have
to giving pay and remuneration to their workers.
Meeting Social Purpose
In order to gain success evaluating of social requirements to enhance the living and social
standard of business, social status is indispensable element that not only improve living standard
but also clarify the social needs (Kuratko, 2016). Per capita income is the only measurement
parameter that helps in analysing the improvement and comparing the growth with significant
different. If there is an increment recorded in living standard than social standard will also
increase due to reciprocal effect.
Innovation
As all the factors are crucial, innovation is also consider to be the most significant factor
that support in contribution to economic and personal development. It simply means new
innovative product are helpful in satisfying customer needs that support in overall growth and
development of company. Innovative products and services are developed to fulfil demand of
customers.
Sustainability
6

This is consider to be the most significant factor that support an entrepreneur to
accomplish task and run business to gain profit and attain competitive advantage in long time
frame. Due to huge competition in each kind of business support in providing best quality goods
and services as per the environment perspectives. In today's era people are more aware about
environmental condition therefore they require product that fit to the nature. As an entrepreneur
it is the responsibility to focus on the things that are helpful in satisfying emerging needs and
wants of customer, this also beneficial for small business to good profit in large market (Lortie
and Castogiovanni, 2015).
TASK 3
P5: Characteristic Traits and Skills of Successful Entrepreneurs that differentiate them from
business managers
Entrepreneur refers to the individual who holds capability of manage an enterprise
effectively in order to fulfil requirement of customers along with earning profits. The main role
of successful entrepreneur is to maximise its profits for growing their business effectively. With
reference to the present report, Jeff Bezos and Marks Zuckerberg are considered for analysing
skills, traits of these entrepreneurs in effective manner (Mitchelmore and Rowley, 2013). Mark
Zuckerberg is founder of Facebook, who is one among the most successful entrepreneurs across
the world. Facebook is one of the best social network site which came with the innovated
concept that of connecting one person to another from long distance at social level. Whereas,
Jeff Bezos is owner of Amazon, an online shopping website. At present scale, Amazon is world's
biggest company which offers online services to customer.
Skills and Traits of Mark Zuckerberg and Jeff Bezos are explained as below:
Mark Zuckerberg Jeff Bezos
Traits
 Innovation: The entrepreneur
have used innovation as its key
trait and provided best concept
of connection to people with
creativity.
 Feedback Approach: Another
trait of Mark Zuckerberg was to
 Innovation: Jeff Bezos have have
also used innovation for success of
its company. The leader have
develop better online website
through which individuals can
shop product from their home
only.
7

take regular based feedbacks
from customers as well as their
staff members in to receive
better suggestion and develop
their social site I more
convenient manner.
 Experimentalist: The approach of
Mark Zuckerberg is to focus on
doing more and more experiments
for bringing new things at market
place.
Skills
 Motivator: Mark Zuckerberg
believes to motivates its
employees at regular basis in
order to improve their
performance and attain its own
objectives.
 Communication: The
entrepreneur also uses effective
communication skills in order
to become successful.
 Focused: The key skill of Jeff
Bezos is to focus on the actual
work which is being performed by
their company so that its best
output can be gained by them
 Mindfulness: Jeff Bezos uses
tactical skills to handle various
criticism situation in order to
become successful.
Characteris
tics
 Team-Player: Mark
Zuckerberg is a well known
team player as he effectively
coordinates with its team for
attaining their organisational
goals.
 Problem Solving: The
Entrepreneur is expertise in
resolving problems at
organisational level problems
so that workplace does not face
any disturbing environmental
issue.
 Risk-taker: Jeff Bezos is a risk
taker as he has left its well paid
Job and initiated his company that
is Amazon.
 Leadership: Jeff Bezos uses
effective leadership skills to lead
who team in one direction without
any issue.
8

P6. Aspects of entrepreneurial personality which reflect the motivation and mindset of
entrepreneur
Personality is defined as a group of traits as well as characteristics that a person have and
make them different from others. The practices performed by an entrepreneur is largely affected
by the kind of personality it posses as these traits affect the motivation as well as mind set of a
person which foster them to move forth and achieve success. Hence it can be said that
personality plays a significant role in action performed by an entrepreneur while operating
business practices (Sarasvathy and Venkataraman, 2011). The type of personality trait and their
impact over entrepreneur can be better understood with the implementation of Big Five Trait
model also termed as OCEAN model. It describe about different type of person as well as
personality trait they have. This model is explained below: Openness:- This factor refers to the kind of person who are open in gaining new
experience and always have an urge to try new things in order to gain knowledge. People
belongs to this category are more curious to adopt new pattern of performing their tasks.
Entrepreneur who stands high over this factor are usually more creative and focuses
toward bringing new innovational practices in their business to achieve more positive
result. Jeff Bezos is a great example of this characteristics as he is more focuses toward
brining innovative approaches for simplifying and improving the purchasing activities of
customers which was the min reason behind the success of Amazon. Conscientiousness:- People having this kind of trait are considered as more thoughtful,
having impulse control over their actions and goal oriented. These people believe more in
planning so that they would be able to perform their work in systematic and expertise
manner. Entrepreneur high at this trait tend to be strategic oriented and perform work
over planning (Canina, Palacios and Devece, 2012). Mark Zuckerberg is a great
strategical planner and as a result of which Facebook is having highest competitive
advantage at marketplace. Extraversion:- This personality trait generally have attributes like excitability,
sociability, emotional expressiveness and talkativeness. Individuals stand high over this
characteristics are more energetic as well as socialise in their actions. Entrepreneurs stand
high over this trait are having good communicational skills and always work toward
motivating their team members to perform well. Mark Zuckerberg is a team player who
9

always communicated visions as well as strategies with their employees in order to make
them perform well and more aligned toward goals. Agreeableness:- People having this trait are tend to be more cooperative and trustworthy
in their actions. Entrepreneur having this personality trait are tend to be more caring
toward its employees and support them in work. An example of this is Jeff Bezos who
always support its employees by providing guidelines over their work.
 Neuroticism:- People belongs to this trait feel more mood swing and usually having
emotional instability. Entrepreneur who stand low at this characteristics have the ability
to deal with stress and work as Mark Zuckerberg.
TASK 4
P7. Examining whether background and experience can hinder or foster entrepreneurship
Background and Experience are two most important factors that determine the
personality of an entrepreneur or any individual for that matter. The term 'background' relates to
the education, family, caste, creed, religion among others which contribute in developing the
cognitive ability of a person. For a successful entrepreneurs such as Jeff Bezos and Mark
Zuckerberg one can say that their background helped in creating the person that they are today.
Their Education and Life Experiences helped them in understanding the current as well as future
possibilities which were associated with technology. Mark Zuckerberg used their knowledge to
create a portal where his college mates as well as users out of college could interact with one
another online. Thus, converting a small idea into a new business model which is used
worldwide today.
On the other hand, experience too is a critical factor that contributes in hindering or
fostering entrepreneurship (Canina, Palacios and Devece, 2012). Life Experiences, both good
and bad, teach a person valuable lessons. Jeff Bezos was able to become a senior vice president
at the investment firm D. E. Shaw that helped in learning a lot about the business world. He left
this position four years later and went ahead to launch one of the biggest E-Commerce platform
seen yet by users today known as Amazon. His experience as well as determination helped him
in moulding his career and making him the entrepreneur that he has known to become.
Thus, one can say that growth and decline of entrepreneurship is highly dependent on the
type of personality an entrepreneur has, how they view the external world as well as have the
10

ability to become a risk taker. In addition to this, characteristic traits, skills, motivation and
mindset also help in determination of how well one is able to confront challenges and achieve
success by overcoming them. It is worthy to note that a business venture is an important scale to
measure the success of an entrepreneur as it helps them in implementing their ideas in the real
world and acknowledge the fact that whether they were successful or not in their motives.
Therefore, an entrepreneur needs to follow a definite set or procedures using their level of
expertise and experience that ensure that no deviation occurs from their plans that results in
failure to achieve their objectives (Sarasvathy and Venkataraman, 2011). Hence, one can say that
it is highly dependable on the entrepreneur themselves that whether their background and
experienced hinder or foster relationships.
CONCLUSION
From the above give report it can be summarised that entrepreneurship plays a crucial
role in growth and development of a country and its economy as well. But in order to make an
entrepreneurial business successful, an entrepreneur must poses certain skills and capabilities
which make it different from other and help in competing with them. In addition to this there are
some factors like experience, background and education of an entrepreneur also plays a crucial
role in its success as it foster or hinder them for performing a task.
11

REFERENCES
Books and Journals
Audretsch, D., 2012. Entrepreneurship research. Management Decision. 50(5). pp.755-764.
Barringer, B. R., 2015. Entrepreneurship: Successfully launching new ventures. Pearson
Education India.
Belz, F. M. and Binder, J. K., 2017. Sustainable entrepreneurship: A convergent process
model. Business Strategy and the Environment. 26(1). pp.1-17.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: Entrepreneurship and small business.
Macmillan International Higher Education.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Canina, L., Palacios, D. and Devece, C., 2012. Management theories linking individual and
organizational level analysis in entrepreneurship research. International
Entrepreneurship and Management Journal. 8(3). pp.271-284.
Gundry, L. K., Ofstein, L. F. and Kickul, J. R., 2014. Seeing around corners: How creativity
skills in entrepreneurship education influence innovation in business. The International
Journal of Management Education. 12(3). pp.529-538.
Kirzner, I. M., 2015. Competition and entrepreneurship. University of Chicago press.
Kiss, A. N., Danis, W. M. and Cavusgil, S. T., 2012. International entrepreneurship research in
emerging economies: A critical review and research agenda. Journal of Business
Venturing. 27(2). pp.266-290.
Kuckertz, A., 2013. Entrepreneurship education–status quo and prospective developments.
Journal of entrepreneurship education. 16. pp.59-71.
Kuratko, D. F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Lortie, J. and Castogiovanni, G., 2015. The theory of planned behavior in entrepreneurship
research: what we know and future directions. International Entrepreneurship and
Management Journal. 11(4). pp.935-957.
Mitchelmore, S. and Rowley, J., 2013. Entrepreneurial competencies of women entrepreneurs
pursuing business growth. Journal of small business and enterprise development. 20(1).
pp.125-142.
Sarasvathy, S. D. and Venkataraman, S., 2011. Entrepreneurship as method: Open questions for
an entrepreneurial future. Entrepreneurship theory and practice. 35(1). pp.113-135.
12