P5. Examples of successful entrepreneur with their traits, skills and characteristics

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
P1 Several types of entrepreneurial ventures and their typology................................................1
P2. Similarities and comparison between various entrepreneurial ventures...............................2
P3 Impact of micro and small business have on the economy....................................................5
P4 Importance of small and micro business on growth of social economy................................6
PART 2............................................................................................................................................7
P5. Examples of successful entrepreneur with their traits, skills and characteristics.................7
P6 Personality reflect to the entrepreneurial motivation and mindset........................................8
P7. A person's background and experience can hinder or foster to entrepreneurship.................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneurship means willingness, wants and capacity to create, maintain and develop
any type of new business to earn profit or for a special objective. An entrepreneur is a person
who either work as an employee or owner of the business and operate small business with
assuming all losses and profits (Bridge and O'Neill, 2012). This report will describe different
types of entrepreneurial ventures and similarities as well as differences between each other. It
also includes impacts of medium, micro and small business have on the economy and importance
of small businesses start-ups on the growth of social economy. Further, it will contain different
skills, traits and characteristics of successful entrepreneurs and reflection of entrepreneurial
personality on mind set and motivation. Lastly, it will cover experiences that can foster or hinder
of a particular entrepreneur.
PART 1
P1 Several types of entrepreneurial ventures and their typology.
Entrepreneurship refers as a person or group of individuals start a business with
combination of labour, land, sufficient capital and natural resources that are uses in that newly
established business (Burns and Dewhurst, 2016). In other words, it is an activity that conducts
by a person who has various skills, talent and knowledge to starts any business activity related to
economic and make profits. An entrepreneur starts a business with hope of profits and take all
financial and economic risks. The small scale enterprise offers better scope for the growth and
development of entrepreneur and make a huge amount of selling their products and services. In
this context, the entrepreneurial ventures are described as below: Public enterprises – It is a special type of entrepreneurship that undertake by the
government who maintain the whole control and management to handle its operations. In
every country, it is start, develops and operate through different governmental agencies. Private enterprises – This is initiated under private sector and control by an entity or
person who run and operates business (Dennis Jr, 2011). It starts with own capital or
borrowed fund that are necessary for running the enterprise. Social enterprises – In this type, the entrepreneur produce and sell those products and
services that solve social problems and requirements with public welfare. The
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entrepreneur does not want to take market share and it may be for profit, not for profit
and combined business. Large enterprises – In such kind, the business operates at large level with having many
assets and capital. It is starts with huge amount of investment and raw material and its
structure also great (Hatten, 2011). Large enterprises have several life cycles and sustain
through innovation. It requires huge finance, raw material and labour to run its business
activities in a competitive market.
 Small enterprises – It operates at small level with some employees and produces outputs.
Such enterprises are generally owned by a sole proprietorship and corporations. It does
not require more equipment and capital and all profits is owned by a trader.
P2. Similarities and comparison between various entrepreneurial ventures.
Entrepreneurship is a systematic process which includes diversified and multifaceted
activities that offers different services and products for society. It must have various types of
businesses that operates for profit or for non-profits (Ligthelm, 2010). Those entrepreneurial
organisations have many similarities and differences in the UK. In United Kingdom, there are
several small, micro and medium enterprises operates by privately, publicly and socially. In this
context, these small micro and medium enterprises are describes as under:
Micro enterprise – These businesses have only 10 or less than ten employees as well as its
annual sales not goes more than 5 million Pounds.
Small enterprises – These are defined as businesses which have less than 50 employees and
whose annual sales is not more than 10 million Pounds.
Medium enterprises – In this category, it includes those organisations which have less than 250
workers and annual turnover does not exceed 50 million Pounds.
All such ventures or enterprises are different from each other’s according to their role,
objectives and characteristic (Scarborough, 2016). In this context, major differences and
similarities are discussed below:
Differences among entrepreneurial ventures:
Basis of differences Private Public Social
Role It operates for growth
of trader or proprietor
It is runs and operates
by government and
These type of ventures
are run for the
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who invest in such
business.
management of
entrepreneurial
ventures follows rules
and regulations made
by legal and corporate
body (Schaper and
et.al., 2014).
particular society and
it manages by group of
people. All those
persons are known as
trustees.
Characteristic It is under possession
of private authority
managed and
controlled by a person
or group.
It operates for the
growth, development
and for employment
generation of a
particular nation in
which it is established.
It conducts its
organisational
activities in order to
gain competitive
advantages and helps
the public.
Its main characteristic
is helping human
beings without making
any profit. Social
enterprises do not have
a huge infrastructure
and management and
members works for
public welfare as well
as charity.
Infrastructure Private enterprises
have big infrastructure
which includes
premises, assets and
different types of plant
and machinery
(Storey, 2017).
These types of
businesses are
governed by the
government so it has
also a big
infrastructure and
works with a huge
number of workers
and staff members.
Many social
enterprises do not have
big infrastructure
because it runs from
donations and charity.
Objectives Its main mission is to
earn more and expand
The major objective is
to provide more profits
All social ventures
have some special aim
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its business towards
achieving desired
goals and targets.
Whole profits are
divided into all owners
and shareholders.
and conduct all
activities that are
useful for public
welfare. These
ventures or enterprises
may be non-profit
organisation. Its
revenue known as
surplus which is
divided into growth of
that business.
or mission as to work
for public welfare and
community so that it
can lift upward and
percentage of poverty
decrease (Storey and
Greene, 2010).
Similarities among entrepreneurial ventures-
Base Public Private Social
Owners In these types of
businesses, owners
may be male and
female or both.
Private organization
govern by male and
female person or by
both as an
entrepreneur who
operates the business
(Stokes, Wilson and
Wilson, 2010.).
It is also operates by
male and female or by
both. They are also the
member of the social
enterprises.
Classification of
profits
All amount of profits
and earnings must
divided with in the
owners and they can
use it in different
activities of
organisation.
In private enterprises,
profits are shares
among owners and
used for growth and
development of
business.
Its profits or surplus
are used for public
welfare and charity.
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P3 Impact of micro and small business have on the economy.
Micro, small and medium businesses are useful for growth development of economy.
These make a huge impact on environment and economy. In the United Kingdom, there
government makes many rules and regulations in order to govern those enterprises (Bridge and
O'Neill, 2012). All SMEs businesses must have influence to the policies and laws made at local,
national and also international level because some of these businesses must operates at the
international level and provide their services and outputs in different nation's buyers. Some
SMEs run and offer their products on online through internet.
In UK, there are nearly 7 % SMEs that covers 80% of whole private sector area and 60%
of total employment sector. Major innovative are SMEs oriented and this will impact to the
national economy.
There are many SMEs and they play a huge role in international business climate. Several
multinational SMEs have great operational and financial resources and it produces different
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Illustration 1: SMEs the backbone of economy
(Source – Impact to the economy, 2018)

products and services for vulnerable communities (Burns and Dewhurst, 2016). These ventures
also resilient to extreme weather.
According to World Trade Organisation nearly 60 % of workers are in the micro and
small ventures and enterprises.
P4 Importance of small and micro business on growth of social economy.
The micro and small ventures are too much important in UK and these are the backbone
of economy. SMEs develop full potential and according to CBI it generates approximately £20
billion into the economy by 2022. It also contributes a great deal with employment generation
and job creation (Dennis Jr, 2011). The gross value of such enterprises stands at the £390 billion
that are represents 55 % of the United Kingdom economy. So for this reason SME play an
important role in employment creation with introducing new markets and contribute to growth
and development. In its contributions, there are three major things that are adaptability,
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Illustration 2: Proportion of SMEs in total employment at international level
(Source - Small Businesses Play a Large Role, 2014)

employment and innovations. It is increases growth rates and known as seedbed for new
innovations so that SME play a critical role that derive economic growth.
Small and micro organisations create the nation more competitive and attractive for
investors as well as visitors (Hatten, 2011). These are useful for boosting the competition in local
and national market and add more value to regional and national areas. In UK, the authorized
figures published by the government and it seen as there are nearly 2.80 million jobs on an
average generate every year between 2000 to 2012 with existing other firms. All those SMEs
have been shown that there is a recognisable amount of resilience in the period of economic slow
down in 2007 and 2008. All such SMEs firms are able to attract new talent and train them in
order to develop innovative ideas and products. It also contributes to gross domestic products of
UK. These are also important for all other economies and especially for the UK nation to
develop the growth. Government policy including inflation, tax policy etc. can make a
considerable difference to how well the SME sector accomplishes its possible role in conducive
to a flourishing economy (Ligthelm, 2010). One of the major important characteristics of a
growing and healthy economy is a booming and blooming small and medium enterprises (SMEs)
sector. It shows an essential role in the growth and development of every country and mainly by
employing a huge number of people.
PART 2
P5. Examples of successful entrepreneur with their traits, skills and characteristics.
To become a successful entrepreneur, a person must have the power of motivation to
employees and strong communication skills and inner drive that useful him or her to success. An
entrepreneur also very good in solving the benefits of any critical situation and face it.
In this context, there are two important persons who are also an entrepreneur Tim
Westergren and Jeff Bezos. Both are the successful and richest entrepreneur in the world
(Scarborough, 2016). The Jeff Bezos is the chairman, founder and chief executive officer of
Amazon company and Tim Westergren start at the age of 35 and he is the founder of Pandora. In
this context, there are important skills, treats and characteristics are discusses as below:
Skills Confidence – It is an essential skill that must have in every entrepreneur and they use it in
their business to grow up. They are enough confident with their personality and
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knowledge that will make their enterprise success and earn more profits in competitive
market condition. Communication – This skill helps to the entrepreneur in their organisational activities. An
entrepreneur must communicate their supportive staff members and employees with new
policies and strategies (Schaper and et.al., 2014). This skill must have possessed in both
Jeff Bezos and Tim Westergren.
Treats Creative – This personality treat must possesses in every successful entrepreneur and
they are able to make connections in between apparently unrelated situations and
solution. Every entrepreneur always come up with the answer of each problem that are
synthesis of several items. Strong work ethics – A successful entrepreneur always follow the rules and regulation of
professional ethics and he or she knows all things about work ethics (Storey, 2017).
Every entrepreneur maintains the organisational environment and work with friendly
nature.
Characteristics Not afraid to take risks – To become a successful entrepreneur, this characteristic must
have in their nature that they ready to dive deep into the uncertain future. There is a
chance that every time not all risk takers become successful but it is essential for every
entrepreneur. In this context, the Jeff Bezos and Tim westergren are the risks takers.
 Self motivator – The entrepreneur are the self starter and have a personality of never give
up. He or she understands that if something requires to be done they must start those
things himself or herself (Storey and Greene, 2010). Tim and Jeff are the entrepreneur
who have self motivator and they do lose their mindset.
P6 Personality reflect to the entrepreneurial motivation and mindset.
All entrepreneurs are different from each other in their knowledge, ideas, skills and
talent. They all have various mindset that contributes to their success and it might have to do
with their personality. Their personality can influence to the mindset and motivation. It is shape
by life style, cultural trends family upbringing and many more factors. An entrepreneur mindset
is different from problem solving skills and technical knowledge. The latter is the interrogatory
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knowledge of skills, facts and demonstrable ability to solve well-defined situations and
problems (Stokes, Wilson and Wilson, 2010.). They must be steadfast believers in their
behaviours of opinion of their services or product. This type of belief is important in dealing with
the doubts and fears in the journey of their business. In this context, there are entrepreneurial
characteristics that are influence the entrepreneurial mind set and motivation:
 Life style – Every entrepreneur focus on their objectives and goals and make a way to go
at the stage of success. They do not care about any critical situation because the
successful entrepreneur often know about the solution of that particular problem. Their
life style also influence and affects to their venture so that they create a mindset to
success in business.
 Family background – It is also a considerable thing for every entrepreneur in order to
become successful in their organisation (Stokes, Wilson and Wilson, 2010.). They are not
held back by big company processes and policies that break rules and solve the critical
situation. In this context, family background is an element that reflect their mindset and
motivation.
P7. A person's background and experience can hinder or foster to entrepreneurship.
Every entrepreneurship is different in his or her decision making process in business.
These differences are generates because of their background or experience. In this context, every
entrepreneur's education and personal life are play an essential role in the process of becoming
successful. Some Skills, treats and talent for example coordination, self confidence, motivation
etc. are essential for every entrepreneurs. It will derive from all factors such as life experience
and education. Family background of the successful entrepreneur like Jeff Bezoss, Tim
Westergren and Bill Gates were derived in poverty and they work hard, face struggle after they
become a successful entrepreneur as well as rich person in the world. There are, One of the main
and the most prominent terms that has been uttered in this paragraph that struggle and hard work
are necessary for every business. There are so many successful entrepreneurs happened across
the world and they never give up. They did everything for their business. They also use new
ideas and make innovation with technical advancement and reach at the top of success. Every
person not have every facilities and resource, many people live their life with lack of education,
resources and they access life yet (Stokes, Wilson and Wilson, 2010.). For become a successful
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entrepreneur, it must considerable that it is not necessary that everyone can not born with having
money or any facility but if he or she dies with poverty than it is his or her fault. Every person
must work hard for earn money or accomplish objectives or goals and never give up in any
situation so that they will become successful.
CONCLUSION
This presented report concluded different entrepreneurial ventures with some differences
and similarities and further it describes the impact and importance of SMEs on the economy. It
also concluded various types of personality treats, skills and characteristics that must possess in a
successful entrepreneur. Lastly, it includes background of a person's that can hinder or foster for
entrepreneurship.
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REFERENCES
Books and Journals
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.
Dennis Jr, W.J., 2011. Entrepreneurship, small business and public policy levers. Journal of
Small Business Management, 49(2), pp.149-162.
Hatten, T.S., 2011. Small business management: Entrepreneurship and beyond. Nelson
Education.
Ligthelm, A.A., 2010. Entrepreneurship and small business sustainability. Southern African
Business Review, 14(3).
Scarborough, N.M., 2016. Essentials of entrepreneurship and small business management.
Pearson.
Schaper and et.al., 2014. Entrepreneurship and small business.
Stokes, D., Wilson, N. and Wilson, N., 2010. Small business management and entrepreneurship.
Cengage Learning EMEA.
Storey, D., 2017. Six steps to heaven: Evaluating the impact of public policies to support small
businesses in developed economies. The Blackwell handbook of entrepreneurship, pp.176-
193.
Storey, D.J. and Greene, F.J., 2010. Small business and entrepreneurship. Financial Times
Prentice Hall.
Online
Impact to the economy. 2018. [Online]. Available through <https://theconversation.com/brexits-
impact-on-small-businesses-the-experts-may-be-spot-on-after-all-90561>
Small Businesses Play a Large Role. 2014. [Online]. Available through
<http://www.wri.org/blog/2014/10/3-reasons-small-businesses-must-play-large-role-
climate-change-resilience>
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Bridge and O'Neill, 2012Burns and Dewhurst, 2016Dennis Jr, 2011Hatten, 2011Ligthelm,
2010Scarborough, 2016Schaper and et.al., 2014.Storey, 2017Storey and Greene, 2010Stokes,
Wilson and Wilson, 2010.
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