This report discusses the concepts of entrepreneurship and small business management. It explores the characteristics, traits, and skills of successful entrepreneurs and examines how background and experience can foster or hinder entrepreneurship. The importance of small businesses in the economy is also discussed.
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Entrepreneurship and Small Business Management
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INTRODUCTION Entrepreneurship is refers as the capacity and willingness to develop a business venture with an aim of profit maximisation.A person is called entrepreneurwho has the ability to convert opportunities into invention by bearing most of the risk(Henry, C., Foss, L. and Ahl, H., 2016).The size of an enterprise started by such people is smallerandtheir role in an economy is vital as theycreate employment opportunities for the people which in turn led to the increased living standard. This report will discussvarious kindsof entrepreneurial ventures and their co- relation with typology. Moreover the importance of small business in the growth of economy is discussed.Lastly, this report includes different context of entrepreneurial by considering the background and experience of entrepreneurship. TASK 1 Covered in Booklet TASK 2 Covered in Booklet TASK 3 P5 Characteristic, trait and skill of successful entrepreneur that differentiate from business managers Entrepreneur is defined as a individual who takes initiative in developing a venture with an aim of making profit. They are the decision maker of their organisation which means they are only responsible for the failure and success of an organisation.On the other hand, managers are the individuals who are responsible for application of strategies and policies for handling the operations( Dunne, T. C., and et. al., 2016).In this study, two of the most famous entrepreneurs have been taken who are Peter Jones and Henry Ford. Peter Jones is a British entrepreneur who invented two television shows on BBC namely Dragons' Den and American Inventor. Henry Ford was anAmerican entrepreneur who founded the company Ford Motor which is a renowned and successful enterprise. It was established to invest in assembly line technique of mass production. 1
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Characteristics:It refers to the quality possessed by anindividual that make them unique from others. Features of successful entrepreneur have been discussed below: ï‚·Hard worker and dedicated:Both Henry Ford and Peter Jones are hard worker and dedicated towards the work which led them formulate some of the strategies for the success of an organisation(Doern, R., 2016).On the other side, managers are not working hard as per their abilities as they are always dependent on other superiors for the guidelines and strategies. ï‚·Flexible:A successful entrepreneur always make changes according to the needs and requirement of the society. Moreover flexibility help them to take effective decision on the behalf of the company. Where as managers are not flexible as they are not able to find proper solution to issues in the hard times. Traits:It refers to the distinguish quality that differentiate from other persons. Below are some of the trait of an entrepreneur: ï‚·Risk taker:In order to get success,it becomes imperative for the entrepreneur to take risks with a view to mitigate them. it is very important for an entrepreneur to take risk. Both Henry Ford and Peter Jones have taken risk and frame strategies that help them towards the success.Onthe contrary, mangers are controlling of the risks but they are not risk takers. They make strategies which are used for reducing the impact. ï‚·Self motivated:Self motivation is one of the important trait of successful entrepreneur. Both Peter Jones and Henry Ford wereself motivated which helps them to work in the most challenging situation. On the other side managers are not motivated as they are always dependent on other for the help and even they are not able to formulate the strategies for their own(Burns, P., 2016). Skills:It refers to the ability of an individual to carry the task with a specified time limit. Below are some of the skills of an entrepreneur: ï‚·Focused:It is considered as one of the important skill for entrepreneur. Both Peter Jones and Henry Ford are focused toward their goal as they wanted to achieve something big in their life. Where as managers are not focused as they even are not clear about the goals and objectives of an organisation. 2
P6 Assess how the aspects of entrepreneurial personality reflect entrepreneurial motivation and mindset Personality refers to the different way of thinking and behaving that differentiate them from other individuals. A successful entrepreneur always possess a great personality which makes them different from other. The personality factors can easily be explained with the help of OCEAN model which is stated below: ï‚·Openness:It defines as those factor in which an individual is open to the market so as to come up with a creative approach. Entrepreneur have the skills to learn something new as they are always practical. Both Henry Ford and Peter Jones are creative that led them develop innovative idea which results in success of them. ï‚·Conscientiousness:It refers to making of a plan before starting any thing new as they are goal oriented. Both Henry Ford and Peter Jones have made plan before starting of a project which results in their timely completion. ï‚·Extraversion:This trait always help an individual to move ahead in personal and professional life. The individual having this trait are enthusiastic, active and a goof communicator.Both Henry Ford and Peter Jones have this trait which enables them to communicate their idea with large group of people(Burns, P. and Dewhurst, J. eds., 2016). ï‚·Agreeableness:It refers to the engagement of a individual with other employees. The one possess the characteristics of this trait are very helpful toward their team members. Both Henry Ford and Peter Jones have this quality as they provide proper solution to the team member whenever required. ï‚·Neuroticism:The one who is having this trait are not able to deal with their employees properly as they always suffer from the mood swings. Both Henry Ford and Peter Jones stand low in this trait as they are very calm toward the work which led them complete their work stress free. 3
TASK 4 P7Usingexample,examinehowbackgroundandexperiencehinderorfosterthe entrepreneurship Background and experience are important elements which can create positive as well as negative impact. This may ultimately lead to foster or hinder the business activities(Zacca, R., Dayan, M. and Ahrens, T., 2015).In this report tow successful entrepreneur are taken. The experience and background of both entrepreneur are mentioned below: Peter Jones Background Peter David Jones is a British entrepreneur and was born on 18thmarch 1966 in maidenhead, UK. He has a interest in televisions, mobile phones, media, retail and property. From the childhood onwards he has developed the entrepreneurial zeal as he has interest over tennis. At the early childhood days he went to his father office. Both mother and father worked hard to fulfil the needs of the family. He has taken the field of his interest and also has given an examination of Lawn Tennis Association which help him to combine two subjects. Experience At the age of 20, he set up his own computer business. Thereafter in 1998 he has set up phone international group. After his appearance on the BBC shows two dragons' Den and American Inventor he became a famous celebrity. Despite of the average family background he has a aim of becoming millionaire and was successful. He fought day and night to achive the dream which led him become most successful. Henry Ford Background: Henry Ford is known as the founder of the company Ford Motor. This company was established on 30thJuly 1863 in the rural Michigan, US. He was the eight children of William and Henry Ford. When he was planning to open his own company, his father was into machine shops.His mother died at the early age and father forces him, to take over the family farm but he was not interested(Bradley, S. W. and Klein, P., 2016).The experience of technical matters gained by helping his father in machine shop. This also contributed development of his interest in auto mobile and led him build farm locomotive. 4
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Experience: When he turned 16, he took training as a mechanist in Detroit. He got to learn so many things about the engines. He became good with the management.There after he joined Detroit Edison company in the year 1890 as an engineer. He build his first gasoline buggy in the year 1892. Inspite the family condition was not sound but he never give up. He has a zeal to design something innovative. He was passionate toward the work which led him develop Ford Motors. CONCLUSION Fromtheabovediscussionitcanbeconcludedthattherearevarioustypeof entrepreneurial ventures and they have different typologies. Impact of small business on economy is studied in order to know their importance. Entrepreneur have some of the skills, characteristics and trait that make them different from managers through which able to formulate the strategies. Through OCEAN model it become very easy to understand about different type of personalities. Lastly background and experience of entrepreneur is discussed and focused on how they foster the entrepreneurship. 5
REFERENCES Books and Journals Bradley, S. W. and Klein, P., 2016. Institutions, economic freedom, and entrepreneurship: The contribution of management scholarship.Academy of Management Perspectives.30(3). pp.211-221. Burns,P.andDewhurst,J.eds.,2016.Smallbusinessandentrepreneurship.Macmillan International Higher Education. Burns, P., 2016.Entrepreneurship and small business. Palgrave Macmillan Limited. Doern, R., 2016. Entrepreneurship and crisis management: The experiences of small businesses during the London 2011 riots.International Small Business Journal.34(3). pp.276-302. Dunne,T.C.,andet.al.,2016.Theimpactofleadershiponsmallbusiness innovativeness.Journal of Business Research.69(11). pp.4876-4881. Henry, C., Foss, L. and Ahl, H., 2016. Gender and entrepreneurship research: A review of methodological approaches.International Small Business Journal.34(3). pp.217-241. Julien, P. A., 2018.The state of the art in small business and entrepreneurship. Routledge. Scarborough, N. M., 2016.Essentials of entrepreneurship and small business management. Pearson. Schaper, M. ed., 2016.Making ecopreneurs: Developing sustainable entrepreneurship. CRC Press. Siegel, D. S. and Wright, M., 2015. Academic entrepreneurship: time for a rethink?.British Journal of Management.26(4). pp.582-595. Venkataraman, S., 2019. The distinctive domain of entrepreneurship research. InSeminal Ideas for the Next Twenty-Five Years of Advances(pp. 5-20). Emerald Publishing Limited. Zacca, R., Dayan, M. and Ahrens, T., 2015. Impact of network capability on small business performance.Management Decision.53(1). pp.2-23 6