The Psychology of Entrepreneurship

This assignment delves into the psychology behind entrepreneurship. It requires students to analyze various psychological theories, concepts, and factors that influence entrepreneurial decision-making, behavior, and success. The provided list of references covers diverse perspectives on entrepreneurship, ethics, innovation, education, and institutional influences.

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P.1 Different types of entrepreneurship and it's relation with typology.....................................1
P.2 Similarities and differences between entrepreneurial ventures............................................2
TASK 2 ...........................................................................................................................................4
P.3 Interpretation of data to show impact of micro and small business on economy.................4
P.4 Contribution of small enterprise to development of social economy...................................6
TASK 3 ...........................................................................................................................................7
P.5 Features and skills of 2 successful entrepreneurs.................................................................7
P.6 Influence of entrepreneurial personality...............................................................................8
TASK 4 ...........................................................................................................................................9
P.7 Experience and background can prevent or contribute entrepreneurship.............................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneurship is person who innovates new ideas and perform innovation in the
business. So firm can generate innovative ideas and can earn more profits. So it can increase
market share and organization can easily expand operations in various countries. Thus company
can maintain unique and positive image in market as well as in front of users. Report discusses
about Hays plc which is a recruitment enterprise (Schaper and et,. al., 2014). It is founded in
1867 at U.K. Project describes about evaluation of different types of entrepreneurship ventures
relation with typology of entrepreneurship and similarities and differences between enterprises.
Assignment discusses about interpretation of relevant data,statistics to show methods through
which small businesses impact on economy and ways in which small occupations which
contribute to growth of social economy after Brexit. Report explains about
characteristic,skills,traits of two successful entrepreneurs which differentiates from
managers,procedures in which assessment of entrepreneurship aspects can impact motivation and
the ways in which background and experience can hinder or foster entrepreneurship.
TASK 1
P.1 Different types of entrepreneurship and it's relation with typology
Entrepreneur: They are the people who creates innovative,new and unique ideas in the
business.
Entrepreneurship: It is the process in which entrepreneur can create new and innovative ideas
in business. Thus it helps in creating growth and development of firm.
Entrepreneurship Ventures: It includes enterprises in which entrepreneur can create new and
innovative ideas and can earn more revenues. They evaluate customer needs and revenues and
then starts their business.
Types of entrepreneurs-
It includes 4 types of entrepreneur. First is Small business management in which people
who starts small business in U.K. They generally increases standard of living of poor persons by
providing basic needs and facilities (Shepherd, 2015). For example through some small ships
company can increase profits. Second is Scalable start up entrepreneurship is enterprise which
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mainly focus on vision and mission (Storey, 2016). So thus organization can recruit
educated ,qualified and talented employees so tat they can give creative and unique ideas fir the
firm. Through this firm can earn more revenues and can easily expand the operations. They
select staff members according to their capabilities and thus firm can achieve their mission.
Third is Large start up entrepreneurship in which entrepreneurs evaluates demand and
requirements of all customers and satisfy their needs. Typology is to increase happiness and
satisfaction level of all users. Hence they can achieve their objectives and can earn more
revenues. This helps them in earning more revenues and can expand their operations on large
scale. Fourth is Social entrepreneurship: In this entrepreneurship it focuses on giving solutions
to social issues and problems. Typology is to increase standard of living of all people and fulfil
all their needs. Hence firm can earn more revenues and can increase the market share. It also
leads to development of economy. Hence it results to growth and success of firm.
Types of entrepreneurs:
First is Male in which they evaluate demand of people and have more skills as compared to other
ventures. Second is Female in which they are less skilful as compared to male venture and focus
on capturing more users.
Relationship of typology with entrepreneurial ventures: Typologies are-
First is Survival ventures in which enterprises can fulfil basic requirements of all
persons. They can easily be linked to small scale entrepreneurs as their objective is to satisfy
needs of people. Second is Lifestyle ventures in which enterprises help in fulfilling all require
and needs of people. It can be linked to large scale entrepreneurs as their goals is to monitor
demand of all persons and thus creates unique and new ideas in company.
Third is Managed growth ventures in which persons know that by using different
techniques and procedures they can earn more revenues and can expand the operations. They can
be linked to social ventures as they can increase user satisfaction by solving social problems and
thus company can easily increase the profits. They can also connected to scalable entrepreneurs
as they know the that by selecting talented staff members they can bring innovation in
company (Williams and Vorley,2015).
P.2 Similarities and differences between entrepreneurial ventures
Various similarities and differences in entrepreneurship ventures in Hays are-
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Lifestyle ventures Serial ventures
Similarities
These people develop new and unique ideas for
firm. For creating new innovation they decide
which activity they had to perform first.
Second is Educated,qualified and talented
employees delegate various functions in proper
way. Thus employees can perform all activities
efficiently. Third is they are created for not
earn more revenues.
Similarities
They start their business through creative and
unique ideas and focus on achieving them.
Second is in which enterprises have qualified
and talented employees so hence they can
transfer tasks in effective manner. Hence they
can give good results. These ventures have
objective to fulfil social needs of all poor
people and gives many benefits to society.
Differences
First is that enterprises has main objective is to
enhance social an economic standard of all
people. Through this they can earn more
profits and can expand their operations. Second
is owner has right to control all activities an
operations in business. So thus they can take
all decisions. Third is They starts their business
with zeal and enthusiasm so hence they do not
create strategies to run their activities
Differences
First is these enterprises mainly focuses on
developing new and innovative ides so that
they can increase their profits and can enhance
their image. It leads to growth and
development in long run.
Second is the venture in which
qualified,talented staff members have control
over all tasks in business. Thus they take
effective and efficient decisions. Third is they
run their business through a effective strategy
so that they can run their operation's in proper
and effective manner.
Female entrepreneurs Male entrepreneurs
Similarities
First is these entrepreneurs evaluate the needs
and wants of all people. So according to their
demand, firm can create innovative products.
Second is they put emphasis on gaining
Similarities
First is these enterprises create new and unique
ideas according to choice and preferences of all
individuals. Hence they can increase their
revenues and can expand their operations.
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attention of more customers. Through this they
can earn more revenues and can enhance their
image.
Second is they focus on gaining attention of all
people. It helps firm in expansion and
widening of business.
Differences
First is these entrepreneurs have less
skills,capabilities and potential. So hence they
can bring much innovation and change in firm.
Second is these entrepreneurs have more
communication skills and patience as
compared to male ventures.
They can control the feelings. Thus they can
create more innovative ideas as firm can recruit
more talented employees through proper
interactive skills. Third is these entrepreneurs
focuses on prices,methods and procedures to
achieve the objectives and goals.
Differences
First is these entrepreneurs have more
skills,capabilities and potential for preforming
any activity. So hence they can bring
innovation and change in company.
Second is they do not have much interactive
skills and less patience than female ventures.
They have less patience. Third is they do not
focus on the ways and methods to achieve the
goals and objectives. They mainly focus on
goals and targets.
TASK 2
P.3 Interpretation of data to show impact of micro and small business on economy
There are various factors which can influence the economy. Examples can be Growth
rate,GDP etc. It can have good as well as bad impact on economy. Different economic factors
which have good influence on economy (Ács, Autio, and Szerb, 2014). Approximately 6.5
Million are small scale enterprises. 99% incudes small scale business through which there us
growth of economy. There is sales of approximate 20% and 35% rate of jobs which are given
to all people. There is vast expansion of small scale enterprises as compared to past years.
Approximately of 8 billion small scale bushiness are operating in the country.
Classification: Business can be divided into 3 parts-
Micro business: It runs on small scale. It has less no of staff members as compared to other
businesses. This enterprise has 15-20 staff members. It has profits of around $3 million sales.
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They start as sole proprietorship as they have less resources and money. They main goals is to
growth and expand their business.
Small business: It operated on huge scale (Wright, 2014). This venture has around has 70
workers and have 10 billion of turnover. More resource,money and capital is required to start this
venture. For example car workshops,big garages and restaurants etc. They emphasis on attracting
more users.
Medium business: They lies between micro and small businesses. It has around 280 staff
members and have 70 billion of turnover. They start as partnership in which 2 or more
employees are required to start the business (Ács, Autio, and Szerb, 2014).
(Source: Entrepreneurship, 2017)
There are 4 areas in which influences economy. They are-
Employment: Through development of small and medium enterprises they are giving jibs to
60% of non government workers. This helps in increasing the earning level of these people.
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Illustration 1: Entrepreneurship

Hence they can start they own small businesses and can earn some money. It can improve
working conditions of these people (Baum, Frese and Baron,2014). They can also tell their
friends and relatives. Through this they can also gets employment and save money or start some
small business. Through this it can generate income of nation. Thus it leads to growth and
development of economy. It have positive impact on economy.
Foreign direct investment: A small and scale business need money and resources to start up
these ventures. Hence they buy fixed assets from foreign companies. So hence it increases the
money level of country. It leads to success and development of economy. This money can be
utilized for good purpose and it can increase the investment which directly results in increasing
income of economy. Through this many small and large business can be operated in country.
Backward areas- Through development of small and small scale entrepreneurs it has provided
jobs to many small farmers and poor people (Brenkert, 2017). It incudes poor
farmers,agriculturist who already have huge debt burden. Through thus they can save their
money or use it in providing education to children. It leads to increase in income and growth of
economy.
Increases the national income: It helps in providing jobs to many people so hence it tries to
reduce differences among poor and rich people. Thus it incarnates the earning level of country.
This leads to growth and development of economy. So it can enhances the GDP of country.
P.4 Contribution of small enterprise to development of social economy
Social economy is performing all task through which company can satisfy social and
economic requirements of all people.
Brexit has huge influence on economy. Many people do not have jobs and they have less
money to fulfil basic needs. In various states of Britain there are less money which is basic
source of increasing standard. It has reduced employment rate due to Brexit. There is reduction
in international trade due to decrease in import and export with countries of Europe as firms who
are performing business in U.K. have to ask from government for trade purpose. But there is
opening many small and medium scale enterprises. So due to this it has provided jobs to many
people. Hence they can increase their earning level and they can also start small business or they
can save money. Thus these firms have widens their business in various nations. Hence firm can
improve situation as they get money and facilitates through these small and medium scale firms.
Therefore they can earn more profits and can increase the market share.
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In present circumstances these enterprise have provided many job opportunity to many
people. Many staff members have fear in their minds that their business is shut down after
Brexit. Due to development of small scale businesses they have provided not only job to these
people but had given security of job when they are facing hard time. They select employees and
give them less wages. Through this way firm can provide job to many people and at same time it
gives various advantages to firm. It can earn profits by hiring competent employees. It helps in
improving working conditions of many people. Thus they can start some small businesses or can
save the money (Bruton and et. al., 2015). So it helps in development and of backward and small
cities.
It is also operated in large cities and towns. Here only small scale business can grow very
rapidly (Chen and et. al., 2014). It provides jobs to many people. It can increase employment
ratio in many cities. Hence it can increase the revenues of that particular nation. This is not only
a singe benefit that firm gains but it can also increase their earnings. So it can easily expand and
diversify their business in many countries.
It is not only expanding their operations in big cities but it can easily expand their
operations in rural areas also. There are various small scale and medium scale enterprises which
is start operating in rural sectors. Hence it provides job to many poor
farmers,artisans,agriculturalists etc. Through this they can use this money for productive
purposes such as in education and medical facilities for their children. They can also start some
business through which they can improve their living standard. As a result through this business
it can increases the living standard and income of rural sectors. Firm can also increases their
income. It results in growth and development of economy.
TASK 3
P.5 Features and skills of 2 successful entrepreneurs
There are various entrepreneurs who are really popular in market. There is circumstance
that people achieved aggressive objectives and they can become inspiration to all of them. So
hence there are 2 popular and admirable entrepreneurs.
Firstly in Warren Buffett who is inspirational and popular entrepreneur. They invest their
earning and take risks when they was a child. They generally spends their money in those
enterprises which they do not know that it can give high returns or not. As all individuals spends
their money in business which can give huge profits with minimum risks. They do research in
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market and do not monitor the demands of people. Without having knowledge of market
conditions Warren Buffett spends money in these enterprises.
Warren Buffett do not perform environment scanning. They only observes the individual
who is implementing their ideas. Then according they invest their money. They are unique and
different from other popular entrepreneurs as they do not hesitate in spending their money in
areas where there is risk that it can provide losses. All persons invest huge amount of money in
stocks as there is risk that it can give losses but they had spend money in share market .So they
are very different from other entrepreneurs (Fayolle, and Gailly, 2015).
Second is Marks Zukerberg who is also inspiration and popular entrepreneur. They do not
take huge risks in market (Katz, 2014). They do not invest money in those ventures which give
huge risks. They do not perform environment scanning and thus do not evaluate the requirements
of all people. They receives advices and feedback from big professionals and experts related to
spending money in which sector. After this they can take decision related to spending of money.
They are also very different from other entrepreneurs as all invests their money where is less risk
and after monitoring requirements,choice and preferences of all users. But they are very unique
and different from others as they receives advices from experts and then spends their money.
Marks Zukerberg has very unique thinking and attitude which is different from other
popular entrepreneurs. They have impulsive and assertive attitude and they do not monitor
conditions of market. Hence they directly spends their money in the ventures and they think that
instead of future and not rapid growth they want that there is immediate growth which is
necessary to expand their operations. Due to this reason they spend their money in a firm. They
have different thinking and ideas as compared to other popular entrepreneurs.
P.6 Influence of entrepreneurial personality
Earning more revenues or materialist attitude are characteristics of popular entrepreneur.
But this feature is not founded in many popular and inspirational entrepreneurs. Various skills
and potential can be founded in popular and admirable entrepreneurs. First is Warren Buffet
who do not take huge risks in market. Their goal is not to become rich. They think that
perception,thinking and guidance,joy,happiness is important. Hence they can get feeling of
pleasure and satisfaction in spending money in stocks. These feelings of Warren Buffett can be
achieved only when they spend their money in share market. They do not perform research
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where thy have to invest their money in any area of field. Due to this they are different from
other entrepreneurs.
Warren Buffett thinks that patience is skill which all entrepreneurs can possess. They
think that money cannot be spend in unnecessary areas but it can be saved for useful purposes.
They can save the money and hence they can spend money in areas which can give long term
returns .They can invest money in those investments through which they can get high returns in
many years. Through this they can earn more profits. Thus it leads to success and long term
growth of entrepreneur (Kirzner, 2015). Through their patience it actually determines their
thinking,perception and mindset. Hence through this mindset and motivational feature it takes
this entrepreneur to successful heights (Kuratko, 2016).
Second is Marks Zukerberg is person who have totally different mindset and feature
which is unique and distinctive from others. They have to set short term target that they have to
develop themselves and accomplish growth in less time period. They do not have to compromise
to gain this growth and success. They want that they can become leader in industry.
Due to this entrepreneurial assets and characteristics they have different perception and
aggressive attitude. They have thought that they can create many unique and innovative ideas
through which different and distinct products can be launched. Through this they can increase
revenues for their business. Hence they can easily enhance market share. They can also give
tough competition to other rival companies. All other business man and business women thought
that there can be modification in business then only they can attract many customers. But they
have a different perception and thinking that there can be change in processes,activities and tasks
in business so that they can gain attention of all users in less time. Due to this they can expand
their operations in very less time period. So hence due to their aggressive attitude they gets
motivation to enhance market share by gaining attention of all consumers.
So due to varied characteristics,features and other aspects they have unique mindset and
different level of motivation so that they can achieve their targets and it sets apart from other
competitors.
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TASK 4
P.7 Experience and background can prevent or contribute entrepreneurship
Family support and experience plays a major role in becoming entrepreneurs. Warren
Buffett both works in cool and calm environment in which the can bring innovative ideas and
thoughts. Factors that hinder or promote entrepreneurs are-
Personal preferences: Due to their varied thinking it can promote them to become entrepreneur.
Warren Buffett can take high risks in business and due to this they can promote entrepreneur. On
another hand Marks Zuckerberg have a thinking that they can gain more users and can enhance
market share in less time period. Due to this characteristics of both entrepreneurs they can easily
become entrepreneurs.
Support of country: In many nations including Asia and other countries. So due to this reason
they cannot think of new and unique ideas in business (Lipset, 2018). This nation mainly
emphasis on spending their money on necessities such as water,clothing etc. Hence they cannot
think of unique and distinctive ideas to innovate their products. Thus country do not encourage
and guide to become entrepreneurs (Lofstrom, Bates and Parker, 2014). Hence due to this
obstruction both cannot become entrepreneurs. As encourage from very important then only
entrepreneurship can become popularity and successful in market. But then also these two can
become popular and successful.
Past experiences: Both of their family members,friends and other relatives had guided and
supported them so that they can create innovative ideas in firm. Their parents had guided and
supported hem a lot. At small level Warren Buffet starts promoting small products in market and
starts thinking of new and innovative and unique ideas. They have choose subject of business
which also promotes them to become entrepreneur.
Economic impact: If there is deflation in country and bomb blasts in country then it has negative
impact on these two persons. Due to this factors they cannot become entrepreneurs. There are no
favourable conditions through which both Warren Buffett and Marks Zuckerberg can innovate
new and distinct ideas in business. They cannot get positive work environment where they can
promote their ideas. Due to this factor it cannot contribute to entrepreneurship.
CONCLUSION
From above report that entrepreneur plays major role in country as they think of new and
creative ideas so that they can distinct products. Various entrepreneurial ventures are considered
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entrepreneurial. Positive impact of small business on economy. Key features of
entrepreneurialism through which entrepreneurs can develop mindset. Evaluation of various
environment which obstructs or contribute to entrepreneurship.
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