Entrepreneurship and small Business Managament PDF

ENTREPRENEURSHIP AND SMALL BUSINESS
MANAGEMENT
EXPLORE EDUCATION INSTITUTE
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Contents
1. QUESTION...........................................................................................................................................................3
1.1 Introduction:.......................................................................................................................................................3
1.2 What is Typology of Entrepreneurship?.........................................................................................................3
1.3 Entrepreneurial Ventures and Subsequent Relation to Typologies..............................................................3
2. QUESTION:.........................................................................................................................................................5
1.1 Similarities between Entrepreneurial Ventures:......................................................................................5
2.2 Differences between Entrepreneurial Ventures:.............................................................................................6
3. QUESTION:.........................................................................................................................................................7
3.1 Micro and Small Businesses- Definition:.........................................................................................................7
3.2 Micro & Small Businesses – Interpreting the Significance:...........................................................................7
3.3 Micro & Small Businesses – Impact on Economy:........................................................................................8
3.4 Economical Impact: Small, Medium & Large Enterprises:..........................................................................9
4. QUESTION:.......................................................................................................................................................10
4.1 Introduction:.....................................................................................................................................................11
4.2 Impact of Small Business to Social Economy:...............................................................................................11
5. QUESTION:.......................................................................................................................................................13
5.1 Characteristics of Successful Entrepreneurs:...............................................................................................13
5.2 Skill Sets Required to become a Successful Entrepreneur:.........................................................................14
5.3 Differentiation Table: Entrepreneurs vs. Managers:...................................................................................16
5.4 Conclusion:.......................................................................................................................................................17
6. QUESTION:.......................................................................................................................................................18
6.1 Introduction:.....................................................................................................................................................18
6.2 Aspects of Entrepreneurial Personality:........................................................................................................18
6.3 Entrepreneurial Motivation and Mindset:....................................................................................................21
7. QUESTION:.......................................................................................................................................................23
7.1 Introduction:.....................................................................................................................................................23
7.2 Background and Experience: Impact on Entrepreneurship:......................................................................23
8. QUESTION:.......................................................................................................................................................26
CONCLUSION:..........................................................................................................................................................28
REFERENCE LIST:..................................................................................................................................................29
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1. QUESTION
Examine different types of entrepreneurial ventures and explain how they
relate to the typology of entrepreneurship.
1.1 Introduction:
Before venturing into the elements, dynamic and typologies pf entrepreneurship, we
need to first comprehend the term “entrepreneur”. Hayes (2020) defines entrepreneur
as an individual with the motivation and drive to start his own business, while being
the sole bearer of profits and liabilities (risks) involved in the business. Entrepreneurs
play a pivotal role in regulating cashflow in the market economy, due to their skills,
drive to succeed and creative and innovate ideas.
On the other hand, “Entrepreneurship”, as defined by Fidele (2019) is a pervasive
term used to describe all the process, procedures, working operations and policy
making that are entailed in the formation of a business venture. In order to ensure a
smooth sailing of one’s entrepreneurship journey, the entrepreneur himself must
develop a foresight for the risks and opportunities in an uncertain business
environment.
1.2 What is Typology of Entrepreneurship?
Typology of entrepreneurship refers to the distinguished types of entrepreneurial
opportunities and business ventures. Chen, Chang and Pan (2018) extends this
definition by stating that the purpose of typology is to enable entrepreneurs to identify
the type of business venture they want to commence. Some of these ventures can
either be small-business enterprises, medium-business enterprises and large-scale
enterprises. Microsoft, for instance, is Bill Gates entrepreneurial venture, and can be
deemed as a large-scale enterprise.
1.3 Entrepreneurial Ventures and Subsequent Relation to Typologies
 Small Scale Entrepreneurship:
In a small-scale entrepreneurship, it is usually operated by a small number of
employees, and the owner alone. In some cases, small scale entrepreneurship can also
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be associated with sole proprietorship, as in some business, the owner himself will
take the role of an employee, a manager, a marketer, etc. In addition to this, the scope
of profitability in such ventures are limited to the capability of small business
framework. Secondly, while big business primarily focuses upon marketing products
and services, the goal of these small-scale ventures is to maximize the quality and
innovation while delivering products and services to consumers. Thus, we can say that
small scale entrepreneurships are entailed with a constant and incremental growth.
There are either individual owners, or partnerships within friends or family business
in a small-scale entrepreneurship (Drucker, 1985).
For instance, there are innumerable small-scale business businesses in the SSI (small
scale industries). The range of products and services are usually unique. Some of the
small-scale business trending today are candle-making, crafting memorabilia of passed
love ones or pets, stationery making and services like photoshop editing, resume
building, etc.
 Big Business Entrepreneurship:
Big business entrepreneurships have a fixed business life cycle. In fact, in a large
company setting most of the elements such as decision-making or embracing upon a
new endeavor follows a fixed set of protocols. While a set of organizational
regulations helps curb non-compliant behavior, it negatively affects the strategy-
building of the organization, due to the extensive scalar chain and decision-making
complexities. Howsoever, while large companies focus on innovating products or
services, and setting trends in the industry; most of these big businesses invest on
projects to improve or expand their marketing efforts. Moreover, the most
advantageous aspect of big business entrepreneurship is their ability to withstand
competition market, due to the size and skillsets of the organization, along with the
ability to gain credit, investors and other sources of capital to produce larger volumes
of products or services (Chepurenko and Sauka, 2018).
For instance, agrochemical companies are blooming in the agricultural industries, and
3D print and modelling companies are also gaining popularity in the techno-industry.
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 Social Entrepreneurship:
In a social entrepreneurship, the primary goal of the organization is to provide welfare
that benefits the community. The organization does not operate on a profit motive,
rather they focus on producing products and services that are aimed in contributing to
the society in an effective manner. The motivating factor that drives these
organizations to work towards making a better world for people, is to address social
issues like child labor, injustice to transgender women, and others (Aquino, Lück and
Schänzel, 2018).
For instance, one prime example of social entrepreneurship is micro finance
institutions, which are banks that provide loans for the low- income groups of the
society. This protects them fr4om the excessive interest rates charged by loan sharks.
Another example of social entrepreneurship is SHE (Sustainable health enterprises)
which is an African firm focused on serving feminine hygiene products to the rural or
homeless women who do not have access to them (Sustainable Health Enterprises,
2021).
2. QUESTION:
Explore the similarities and differences between entrepreneurial ventures.
1.1 Similarities between Entrepreneurial Ventures:
Basis Sole Proprietorship Partnerships and LLC
Licensing Although it is not mandatory to register a
business under a sole proprietorship, in
order to carry out a certain type of because
activity, certain state or country’s laws
require licensing and registration of the
firm. If the owner decides to globalize his
business, he will also need to obtain certain
international licenses.
Licensing and registrations are required at
the very formation of the business. No
partnership or LLC activity can be deemed
lawful without the evidence of relevant
licenses and registration of business
activities. It is also important to note that
partnerships under these business activities
are registered only for conducting legal and
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lawful business operations.
Start Up
Costs
the reason why sole proprietorship is a
popular entrepreneurial venture, is because
of the business in its setup. This means
that, since entrepreneur has sole control
over his business approaches, he can easily
setup a business, without incurring
expenses, or making heavy investments.
Apart from the registration fee, partners
ought to contribute their substantial share
towards the formation of a strategic
alliance. However, the amount of
investment or capital resource is flexible,
based upon the terms and conditions
mentioned in the partnership contract.
There need not be a minimum requirement
of capital to setup a business, partners and
shareholders of LLC can contribute
according to their wishes.
Taxes &
Debts
In matters of debt, the personal assets of
proprietors are held accountable, should the
firm incur and losses. Similarly, taxes
charged for the company, are generated
under proprietor’s income tax accounts.
Here, the partners are equally indebted for
the losses and liabilities incurred by the
business. However, the personal assets of
the partners are not accounted for these
debts. In a partnership firms or LLC
organizations, the taxes are deducted under
separate profit and loss accounts created
solely for the organization.
-- (Miller ,2019)
2.2 Differences between Entrepreneurial Ventures:
Basis Sole Proprietorship Partnerships and LLC
Proprietorship Since the sole proprietor is the key owner
of the company, he/she will continue tot
reign over the organization, even if its
business models change, or it develops on
a larger scale.
In the case of, partnerships and LLC
though, as the business grows; there is an
automatic change on the legal structure of
the company. This means that, when a
partnership firm is expanding the number of
partners in the firm are also increasing.
Hence, there is a gradual development
change of the organizational structure from
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partnerships to limited liability company.
Setting Up a
Business
Since sole proprietorship and the
organization share the same legal entity,
there is no requirement under law, for a
sole proprietor concern to be registered, in
order to start a business.
Pre-registration, respiration, licensing and
permits are required during the incubation
stage of a partnership or LLC concern.
Both, the partners and the firm are separate
entities. Hence, company under partnership
needs to be registered under separate name,
bank accounts, address, etc.
Borrowing
Capacities
Financial institutions are reluctant to
provide sole proprietors with loans
exceeding a certain limit. This is because,
since both the firm and the owner share
the same entity, banks and financial
institutions lack the motivation to provide
these firms with a substantially large
amount of capital.
Partnerships and LLC organization have
better borrowing capacities form banks
another financial institution. This is
because the credit score of all the partners
together, enable the firm in securing large
loans from the banks. Also, should the firm
enter into a dissolution phase, banks can
easily seize the assets of the business.
-- (Lazzari, 2018)
3. QUESTION:
Interpret and assess how micro and small businesses impact on the economy.
Also evaluate the difference small, medium and large businesses are making to
the economy. (Use relevant data and statistics)
3.1 Micro and Small Businesses- Definition:
Micro and small business enterprises are the legal structures of organizations that play
a pivotal role in the contribution of GDP and cashflow into the nation’s market
economy. In addition to this, due to the versatility of the market, i.e., the free entry
and exit nature of firms, micro and small businesses are the popularly desired business
ventures for first time business owners in the country. (Rao, 2020)
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3.2 Micro & Small Businesses – Interpreting the Significance:
 A sustainable market economy is an economy that has abundant employment
opportunities, good GDP growth rate and a healthy cashflow of foreign
exchange. Hence, the micro and small business organizations play a vital role in
providing employment opportunities to the youth, while fulfilling consumer
needs and demands by providing them with a plethora of products and services
in the domestic market (Mshenga and Owuor, 2010).
 Secondly, micro and small business enterprises help in the social economic
development of rural and backward areas of the country. Thus, we can say that
the primary goal of micro and small business enterprises is to promote
modernization of cities and towns to the rural and sub-urban areas of the
country (Nafukho and Helen Muyia, 2010).
 Another fundamental benefit of micro and small business enterprises is that
they help boost cash flows into the country’s economy. Case in point, when
more micro and smaller businesses are setup, more business transactions take
place, and an even larger number of publics are employed. Along with this,
exporting and importing of products and services further aides into the injection
of foreign income in the cashflow of the economy. Thus, country’s foreign
exchange rates are improved, and recession is managed (Uwonda and Okello,
2015).
 To reiterate the previously mentioned statement, apart from helping with the
foreign income of the country, the import and export factor of micro and small
business enterprises will also enhance the firm’s global investment
opportunities. There is an added advantage of liberal trade regulations, EXIM
and tariff policies (Hassan and Ahmed, 2016).
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3.3 Micro & Small Businesses – Impact on Economy:
 The employment Economy: the statistics chosen for the dissection of micro and
small business enterprises is the employment economy in Europe. According to
(OECD, 2021), there is only 0.4% of unemployment rate throughout European
continent. This is due to the abundance of micro and small business enterprises
spread onto different countries within Europe like Belgium or Poland. However,
it was noticed that, although each of these organizations had less than 250
people employed in one time, due to their general abundance, 99% of micro and
small business firms are currently operating on maximum capacity of
employees.
 Private and public ownership of micro and small business enterprises: since
micro and small business enterprises help fuel cash flow and accelerate
innovation into the economy, the EU SME (2015) statistics revealed that about
98.4% of organizations in the European Union are privately owned enterprises,
which means they have autonomous control over their business activities and
contribute to the nation’s GDP growth rate. However, only 1.6% of micro and
small business enterprises are owned by the government,
 Employee turnover rates: according to Papadopoulos (2016), it was noted that
only 0.4% of the entire European union has faced unemployment, i.e.,
employment turnover. In a more specific sense, these countries that exbibit an
employment turnover rates, belong to large-scale enterprises.
For instance, Croatia witnessed a 47% of employment turnover, whereas
Sweden has experienced 87%. Therefore, we can say that only large
organizations having more than 250 employees have experienced a significant
employment turnover rate. Therefore, the European union encourages its nations
to adopt micro and small business enterprises, in order to eliminate the concept
of “unemployment” from the continent.
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3.4 Economical Impact: Small, Medium & Large Enterprises:
ECONOMY
Small
Enterprises
Small business enterprises help develop local economies and
enhance the domestic market. Moreover, they significantly
contribute to the GDP of a country. In a larger sense, it can be
observed that small business are the pedestals to largest
corporations, and hence, they promote to the growth of a country’s
market economy by lowering employment turnover rates, and
unemployment rates are at bare minimum. Small business also aide
to the development of socio-economic and cultural background of
the country. They help for the infrastructural development of
poorer geographic regions in the nation (Brown, 2018).
Medium
Enterprises
Medium enterprises are the rising trend around the world. This
means that rater than investing in large resources and grasping
onto voluminous business risks, many entrepreneurs today aim to
build a business empire by venturing to small business enterprises.
For instance, in Dubai, about 95% of the emirate is owned by small
and medium enterprises. In addition to this, about 42% of the
country’s workforce, employed in medium enterprise contribute to
40% of Dubai’s GDP (TDRA, 2021).
Large
Enterprises
Large organizations help lead the industry and mankind with
innovation. Owing to the greater financial resources, large scale
organization are capable to produce better quality products and
services for the common public. Also, the technological
advancement and infrastructural developments witnessed in a
country is solely due to the enormous contributions large scale
organizations make towards the GDP of the nation. Higher wages,
better health and retirement benefits, job stability, compensation,
etc., are the added advantages provided by large scale
organizations to promote better job economy (Country Studies,
2018).
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4. QUESTION:
Explain the importance of small businesses and business start-ups to the
growth of the social economy.
4.1 Introduction:
Since the onset of industrial revolution, small business enterprises are proven to be
fundamental characteristic of economic stability in the nation. By recognizing the
significance of small business enterprises, and their innumerable contributions to the
economy such as GDP growth, reduced unemployment rate, propagated cashflow, etc.,
the government has relaxed certain bureaucratic rules and regulations, thus providing
these firms with the freedom to conduct business activities and operate on domestic as
well as international markets in an autonomous manner (Dembla, Palvia and
Krishnan, 2007).
Social economy refers to the mixture of small, medium and large scape business
enterprises, as well as different topologies of entrepreneurship like sole
proprietorship, partnership and limited liability companies. These organizational
structures play a vital role in contributing to the radical technological innovation and
infrastructure development of a country (Xu et al., 2020).
4.2 Impact of Small Business to Social Economy:
 Hiring Local Workers:
One of the major advantages of operating in a small business organization is the
availability of manpower and skills that are required to enhance business operations.
Moreover, by employing local workers, these small business organizations are able to
improve employment rates in the country, while subsequently reducing their turnover
rates. The job market also significantly enhances in an incremental rate, and there is
an equal distribution of job opportunities among men and women in the society.
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Furthermore, employing local talents improves innovation. Diversity and profit
capacity of these small business enterprises. (Williams, 2007)
 Benefaction to the Government:
Apart from contributing tot the welfare of the society, small business enterprises go a
long way in adding value to the distinguish functions of the government. For instance,
small businesses that are centralized their business operations in rural areas of the
country, significantly contribute to the infrastructural development of these backward
areas. Case in point, when villagers are employed in small business organizations,
they are able to make a decent income and thus provide to their families (ex: educate
their children). Therefore, we can say that small business enterprises also contribute
to better livelihood of the rural communities. For these reasons, government eases
property tax rates for small business enterprises (Williams, 2007).
 Continuing business growth:
Many multinational corporations that we know of today had their humble beginnings
as small business enterprises, like for instance Google, Microsoft or Amazon. These
businesses grew and developed to become some of the largest known corporation
giants in the industry. However, although these brands have diversified their
operations to different regional locations, their headquartered locations would still be
the same as the location where they had their entrepreneurial beginning. Also, as the
organization grew and developed into a prominent brand name, the community
surrounding their enterprise, will also witness remarkable developments in fields of
technology, media, etc. (Williams, 2007).
 Managing changes in the business world:
One of the most notable features of small business enterprises, is that they always
operate in an uncertain business environment. Hence, they are required to change their
management processes from time tot time, depending upon the external influences of
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the social economy such as industry trends, consumer demands, technological
advancements, inflation or deflation, and recession among others. However, while
these are viewed as major threats by multi-national organizations, small business
enterprises are able to manage these potential downfalls in the business environment
in an efficient manner. Also, with limited hierarchical levels and more involvement of
local economies. Small business enterprises can make quick decisions to protect
themselves from uncertainties in the corporate world (Williams, 2007).
5. QUESTION:
Provide a table of differentiation showing difference between characteristics
traits and skills of successful entrepreneurs and business managers.
5.1 Characteristics of Successful Entrepreneurs:
 Focus on goals:
One can distinguish a common man from an entrepreneur, by his ability to formulate
goals and objectives in his life and aspire to achieve them. In the context of a business
venture, a genius entrepreneur is an individual who has the skillsets and capabilities
to organize his business goals in the order of priority and practicality. Moreover, goal-
oriented entrepreneurs are able to develop a foresight which allows them to analyze
opportunities or threats in the future and create specific objectives to grasp or curb
them. Lastly, a key goal-oriented entrepreneur is the one who would not let any
internal or external influences and challenges, to affect his ultimate goals and
objectives (Aminul Islam et al., 2011).
 Dedication to the venture:
A dedicated entrepreneur is an individual who has the drive and motivation to
accomplish the goals and objectives set out for his business venture. Also, what makes
an entrepreneur undefeatable is his willingness to embrace challenges and obstacles
head-on in the business environment. Being on the constant run to think of creative
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and innovative solutions is a strong pursuit of a dedicated leader. Dedication coupled
with loyalty will enable an entrepreneur to become successful, and an even better
leader in the business field (Hiscox, 2019).
 Be Creative:
Entrepreneurship can be defined as the by-product of creativity and innovation in the
business world. In a similar sense, ventures are the resultant effect of an entrepreneur
dedicated to personifying his business idea. However, entrepreneur must keep in mind
that being creative in the business world does not stop once a goal is achieved or the
project ventures is accomplished; instead, it is an ongoing process which is required in
order to ensure that the business is able to navigate through rough terrains while still
remaining on the course of achieving its ultimate objectives. Also, these creative ideas
can be easily translated to business opportunities that are worthwhile of a dedicated
pursuit (Aminul Islam et al., 2011).
 Establishing Networks:
While having an innovative business idea helps to commence business, it is not
enough to ensure that the business venture continues on the long run. Hence,
establishing networks are vital in these circumstances, as it adds value to the
entrepreneurial people skills. Also, by recognizing opportunities for collaboration and
strategic alliances will enable an entrepreneur to embrace and utilize all the key
elements in an entrepreneurial journey, thus making the prospect of a business
venture, a successful one. Networking also helps protect enterprises from potential
threats, unnecessary competition and attain better clientele (Hiscox, 2019).
5.2 Skill Sets Required to become a Successful Entrepreneur:
 Social Skills:
Entrepreneurs should possess people skills in order to become a better leader in the
business venture. The type of social skills required by an entrepreneur are to be a
better conversationalist, an active listener to critics, conflicts and concerns by
management or consumers and employees and also the ability to communicate
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important business information and decisions to employees and management. Also, by
developing better social skills, it will aide to the elements of networking within the
organization (Walzer, 2007).
 Self-Directed Learning (SDL):
Self-directed learning refers to one’s own choice to use knowledge resources and
training in order to develop his/her personal and professional skills. SDL is pervasive
concept which should be embraced by every organization, even entrepreneurial
ventures. Similarly, along with improving one’s skillsets using SDL, entrepreneurs
must also motivate their teams to exhibit interests in learning new skills, tasks, etc.
Self-directed learning also helps broaden one’s mind set and enables him to perceive
the business world in an optimistic and opportunistic manner (Walzer, 2007).
 Budgeting Skills:
An efficient entrepreneur is the one who understands his capital resources and needs.
Such entrepreneur also needs to have the ability to allocate specific budgets to meet
different goals or take up on different endeavors in the business world. This is one of
the most important skills required for an entrepreneur, because poor budgeting skills
can directly injure the potential growth of the company, or even lead it to dissolution.
However, in a sole proprietorship, poor budgeting decisions can lead both the
entrepreneur and his firm to bankruptcy (since they’re of the same entity) (Walzer,
2007).
 Readiness to change:
Every entrepreneur must possess the capability to be flexible and have a dynamic
mindset that allows them to readily accept and implement new changes to the
organization, if the need arises. Moreover, since businesses largely operate on a n
uncertainty, there may be times where an event or a prospect may be viewed as a
threat to the future of the venture. In these times, entrepreneurs need to have the
ability to act quickly, and make spontaneous business decisions that would force the
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firm to undergo a series of emergent changes. Also, these changes must be viewed as
measures to protect the venture against discrepancies to future business goals and
objectives (Walzer, 2007).
 Be a Leader:
Entrepreneurs are the leaders of their organization. Hence, they need to be able to
communicate the missions and vision of the venture to their employees in an effect
and motivating manner. They should also have the capability to listen to employees’
opinions, feedback and encourage their participation in the decisions making process
for the company. Therefore, exhibiting better leadership skills will render the
entrepreneur with an enhanced HPW levels (high performance working), and
achievement of organizational goals and objectives (Walzer, 2007) .
5.3 Differentiation Table: Entrepreneurs vs. Managers:
Entrepreneurs Managers
 Since entrepreneurs are responsible for
building the organization from scratch,
they are the sole risk takes of their
ideas, investment and resources out into
business. Therefore, the primary goal of
an entrepreneur will forever remain to
maximize profitability and achieve goals
and objectives set for the venture.
 On thee other hand, managers are hired
based on their skill sets and experience,
their primary duty is to oversee
employee’s experience and report
corporate decisions to the management.
Thus, their interest in the organization
goes as far as ensuring their
responsibilities are fulfilled, and that they
receive their salaries, bonuses and
appraisals on time. They are responsible
for maintaining the sanctity of the firms’
administration.
 The power and influence of an
organization are its entrepreneurs. Thus,
the sole motivating force for an
entrepreneur is the success of firm’s
 Although power is also the key motivating
factor for managers, the context is quite
different. This means that power
motivates managers to run the
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goals and objectives. Sometimes, the
mere accomplishment of task-based
objectives also suffices the motivational
needs of an entrepreneur, as well as fuel
his drive to innovate
products/services/processes in the
organization.
organization. Delegation of duty and
responsibilities amongst subordinates,
making recruitment decisions, marketing
decisions and developing business plans
are some of the activities, in which a
manager displays power in the firm.
 Entrepreneurs are rewarded by the
knowledge that their organization has
succeeded its goals and objectives.
Also, profits made by the firm are
monetary rewards which entrepreneur
can enjoy.
 Since managers are simply high-level
employees recruited to perform a
designated work processes sin the
organization, they have no share in
securing profits of the company. Instead,
they are rewarded for their work in the
form of pre-decided salaries and
remuneration. However, managers can
often receive bonuses or appraisal as a
result of exemplary business performance.
 Role of an entrepreneur is to be on the
constant lookout for inspiration, which
then rakes the form of creative ideas
and is produced as innovations in the
firm. Entrepreneurs need to conduct
regular SWOT analysis in order to
ascertain opportunities in the future and
grasp on to it.
 Managers job role is simply to ensure that
all the business activities conducted in
the organization are following specified
order and protocols. They also conduct
constant audits to ensure complaint
behavior in the firm. Likewise, managers
perform compliance trainings and
awareness programs upon employees to
ensure everyone is following an ethical
and compliant behavior in the
organization.
-- (Ghouse, 2019)
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5.4 Conclusion:
To summarize the aforementioned differential table, while entrepreneurs are active
risk takers for the betterment of their business ventures, managers only view their
purpose in the company as specific job roles and responsibilities they need to abide
with. In matters of making integral business decisions, entrepreneurs will make
decisions that lead to emergent changes (sudden and spontaneous changes) in the
organizational structure of the firm, whereas managers decisions may cause only
incremental changes to the firm. Thus, entrepreneurs are the sole bearers of their own
business endeavors.
6. QUESTION:
Assess how aspects of the entrepreneurial personality reflect entrepreneurial
motivation and mind-set.
6.1 Introduction:
Entrepreneurs are the backbone of country’s economy. from employment
opportunities, to innovation and infrastructural development, entrepreneurs have
enriched these processes. In addition to this, entrepreneurs also play a major role in
contributing to the socioeconomic development of a country.
Along with this, entrepreneurs are known for promoting significantly to the gross
domestic product and also, influence government regulations/income tax rates in the
nation. However, in order to deliver the aforementioned desired effects onto the
society, an entrepreneur needs to possess the right attitude, motivation and mindset to
run bis business empire.
Given below, are some of the unique aspects of entrepreneurial personality:
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6.2 Aspects of Entrepreneurial Personality:
 Entrepreneurs need to have a positive attitude:
A business idea does not simply translate into a successful business venture. There are
certain processes and procedures which need to be implemented by the entrepreneurs
to incubate the business idea, let alone convert it into a fully functional and
operational start-up company. These processes take time, and there may be certain
barriers that may restrict entrepreneur’s creativity. Also, there are higher risks in
business ventures and sometimes there are wide discrepancies between planned and
practiced actions. There are certain areas where an entrepreneur must have the
patience and composure to pursue business goals in the corporate world. Also, since
failures are a part of the package, entrepreneurs need to possess the capability to focus
solely on the objectives of their business venture, while keeping a positive outlook
during the entire process (Politis and Gabrielsson, 2009).
 Entrepreneurs need to be Motivated:
The fuel that adds to the entrepreneur’s drive to succeed in the business ventures, is
his passion for the project and motivation to earn better profits. Unlike, other
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Positive Attitude
MotivationRisk TakerCreativity

stakeholders of the workplace such as employees and managers, an entrepreneur is
solely responsible for motivating himself to conduct business activities in an ethical
and proactive manner. Similarly, in order to incite the same aspiration amongst
employees and managers concerning the accomplishment of business objectives,
entrepreneur need to indulge in various activities and leadership approaches, that
support and suffice motivational needs of the management. Therefore, by conducting
beneficial formal and informal communication in the workplace, an entrepreneur is
able to inform employees and managers of his vision for the business venture and
guide them towards the path of achieving goals and objectives of innovation
(Bhansing, Hitters and Wijngaarden, 2018).
 Entrepreneurs need to harbor Creativity:
“Think outside the box”. One of the pivotal benefits of becoming a business
entrepreneur, is the ability to harbor creativity and innovate new products, services
and processes; without needing to restrict oneself within a certain boundary. The
corporation giants as we know of today, simply began with an “idea”, an innovation
which has not yet been witnessed in the industry. For instance, the creative idea of
embracing technology for the purpose of home entertainment, has set Netflix, which
was formerly a mail-order subscription company for DVDs and CDs apart from other
companies in the media industry. In fact, Netflix was one of the prime examples of
disruptive innovation, where an existing industry was demolished and replaced with a
new one. Therefore, we can note that innovation and creativity need to remain as a
constant factor in order to ensure the business develops in a robust manner. The
changes brought about by entrepreneurs’ creativity, will further add value to the
products and services offered to the consumers (Bhansing, Hitters and Wijngaarden,
2018).
 Entrepreneurs need to be avid Risk-takers:
Despite the type of industry an entrepreneur is engaged with, risks are an inevitable
part of the business world. This means that these ventures and different endeavors
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harbored by the enterprises are subjected to witness threats, failures, obstacles and
other negative events that may transpire during the course of the business period.
Hence, entrepreneurs need to be avid risk takers in the organization, because without
venturing into the unknown, these business owners would not be able to assess and
assimilate potential opportunities that would propagate the business venture to a
greater extent. It is also crucial to note that by fearing risks and remaining
monotonous with the decisions, entrepreneurs steer further away from embracing a
robust entry to the corporate world. Thus, these business owners need to motivate
themselves as well as the internal stakeholders of their business venture (ex:
employees and managers), to remain enthusiastic and face uncertainness head-on
(Patel, 2019) .
6.3 Entrepreneurial Motivation and Mindset:
Entrepreneurial motivation and mindset are a resultant outcome of his leadership
personality. By adopting the relevant leadership approaches and mentorship strategies,
entrepreneurs are able to guide employees and management effectively through
different change management processes embarked upon by the venture, while keeping
the achievement of goals and objectives, a singular fundamental concept in the
company. Provided below are some the aspects that help factor motivation into the
mindsets of entrepreneurs:
 Self-development:
An honest entrepreneur does not constrict his knowledge needs and capacities within
the realms of his business endeavors alone, but he also adopts and learns new
information concerning the industry, in order to extend his personal skillets, improve
his aptitudes, gain exposure and experience of the market economy, and also learn to
integrate as well as practice corporate ethics and morals in his personal life. Self-
developmental learning further encourages entrepreneurs to become better business
leaders and team players (Gvelesiani, 2015). For instance, the self-developmental
growth of Ellen DeGeneres motivated her to not only became one of the most
successful entrepreneurs in the media industry, but also, remain as an inspirational
leader to the LGBTQ+ community across the globe (Hawkins, 2019).
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 Appreciation:
Showcasing gratitude towards one’s entrepreneurial journey also plays a significant
role in altering the mindsets of these business leaders. While the primary objectives of
every business owner are to achieve the organizational goals or project goals, it is
equally important that one should appreciate the minuscule successes they encounter
along the course of their entrepreneurial journey. In addition to this, since failures
and mistakes are an inevitable part of every entrepreneur’s endeavors, he/she should
view these mishaps as learning opportunities, that enabled them to become better
corporate leaders (Panigrahi, 2020). For instance, when Nokia pioneered with smart
phones in the industry, it was immediately replaced by other competing smart phone
moguls like Apple, or Samsung. Thus, by analyzing these failures, Pekka Lundmark
the CEO of Nokia made the wise decisions to sell their smartphone division to
Microsoft. This proves Lundmark’s exceptional ability to embrace failures and make
wise decisions for the growth of the company (Panigrahi, 2020).
 Create a Difference:
The purpose of an entrepreneurial journey is not confined within the borders of the
business world, but also extends towards the society. This means that business
entrepreneurs generate ideas and innovations with motives, besides the monetary
characteristics. Offering products and services that are induced by creativity are aimed
to alter the mindsets of consumers, bring about a change to their lifestyles, or how
they perceive technological development, with respect to the innovations provided to
them. Also, entrepreneurs embark up to different innovations and advancements in the
business, with sole purpose to provide convenience to their consumers (Si et al.,
2019). For instance, in 2015, Mc Donald’s introduced its self-service kiosk which are
initiatives provided by the fast food brand in order to provide convenient customer
services, by eliminating “waiting lines”, and providing better table services to them
(Na, Lee and Yang, 2021).
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 A “social” Business Entrepreneur:
In most case scenarios, the ultimate purpose of an entrepreneurship is not necessarily
fixated upon the accomplishment of organizational goals and objectives. Business
owners pay keen attention towards contributing to the fulfillment of common societal
goals. However, while organizational objectives are still the primary purpose for the
formation of business ventures, there is a significant amount of priority given to the
incorporation of welfare activities and social purposes that are deemed important by
the society in general. These entrepreneurs are known as “social entrepreneurs”
(Zahra et al., 2009). For instance, Elon Musk introduced Tesla, which are electric
vehicles, which revolutionized the automotive industry. While technological
innovation is the driving force that led to the creation of Tesla vehicles, Musk’s
ultimate goal was to build a world of sustainability in automobility (Chen and Perez,
2018) .
7. QUESTION:
Examine, using relevant examples, how background and experience can hinder
or foster entrepreneurship.
7.1 Introduction:
Since entrepreneurs operate in an uncertain business environment, they are bound to
encounter certain factors that have the potential to both, foster and hinder an
entrepreneurship. Some of the key factors, whose efficiency may result in the
expansion or dissolution of an entrepreneurial venture are capital resources, human
resources, market economy, acquisition of assets, depreciation of assets, and others.
However, some of the robust factors that can play a vital role in influencing the
developments of a business venture are the entrepreneur’s background and experience.
Let us take a keen observation on how background and experience can foster or hinder
the entire prospect of entrepreneurship.
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7.2 Background and Experience: Impact on Entrepreneurship:
Background:
The family background of the entrepreneur is taken into consideration in this context.
It is noted that the success of an entrepreneur’s leadership approaches largely depends
on his personality and values instilled in his life during his upbringing. The family
structure, how they motivate each other and their cultural belief or traditions are
other factors that shape an entrepreneur’s individual belief systems, motivation,
aspiration, etc. However, it is pivotal to note that, although a man’s family
background does not necessarily predict his capability as a successful entrepreneur,
but it does play a key role in influencing individual mindset, his priorities and his
decision-making capabilities.
FOSTER HINDER
Entrepreneurs with a family background
of collective entrepreneurs that may
flourished the corporate world in the
past, aides to positively influencing an
individual’s foresight and knowledge
concerns several other integral aspects in
a business journey.
An idealist cannot translate his creativity to
realism without required capital boost.
Although, innovation is an independent
variable that impacts an aspiring
entrepreneur, capital resources are
dependent variables in the field of
business. Thus, if average creative thinker
does not have modest family background in
terms of riches: he/she cannot even attempt
to embark upon their entrepreneurial
venture. Also, financial institutions that
profile applicants based on their family
backgrounds, are less likely to support
entrepreneurs from poor households.
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For instance, Walmart, one of Americas largest retail stores, are primarily owned and
operated by the Walton family. Thus, the evidentiary success of this family owned
conglomerate further proves the fact that family backgrounds play a major part in
altering the success of an entrepreneur (Ranwala, 2017).
Experience:
In a common way, an individual’s past experiences help shape their current and future
decisions making abilities. Thus, even in an entrepreneurship, the failures or mistakes
one makes in previous endeavors are crucial in determining the quality of their current
and future endeavors. Sometimes, due to the recurrence of mistakes and defeats in the
past, an entrepreneur may be reluctant to embrace a new challenge or be cautious when
faced with an issue. Although experiences can significantly impact an entrepreneur’s
drive for innovation and motivation in the workplace, it does not influence the future
opportunities or threats in the venture. Thus, entrepreneurs need to learn from their
mistakes and develop accordingly, so that they can be more passionate in embracing
future prospects. Hence, the experience as a factor allthemore, motivates
entrepreneur’s innovation in the industry, or his ability to expand his business and
diversify his product/service lines. Therefore, experience acts as wisdom and
knowledge to individuals, and aid them to become better entrepreneurs.
FOSTER HINDER
In a corporate context, experience
provides wisdom and knowledge to
entrepreneurs, as well as educate them
on becoming a better entrepreneur.
Moreover, by learning the rights and
wrongs form his past failures, an
entrepreneur will be able to embark on
new ventures with more confidence and
expertise.
There are two kinds of entrepreneurs, one
who looks at past failed experiences as
learning opportunities, and the others who
develop fears and become more cautious in
embarking upon new business ventures.
Mostly, entrepreneurs that are monetarily
affected by failed experiences, develop an
irrational fear which makes them perceive
future opportunities as risks as well. It also
deteriorates their capabilities to assess the
current and future business environment.
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For instance, Milton Hershey, the founder of renowned Hershey chocolates, had to
face failures two-three times before the business actually boomed. Initially, Hershey’s
candy shop business was set up in Philadelphia, but they weren’t able to secure
profits. Later on, Hershey once again opened up a new store at New yok city, with
hope to secure profits in this busy metropolitan city. However, the entrepreneur
Milton Hershey had failed again. Hence, instead of giving up on the entire business
venture, Hershey decided to modify his business model which forced him to sell only
caramel chocolates. The business picked up and by 1900, Hershey’s chocolates were
valued at $1 billion. Today, there are more than 15 chocolate factories, producing
more than 70 million chocolates per day (Ledger, 2020).
8. QUESTION:
Generate a Business Idea
Provided below is a business idea for a friend under the pseudonym Joel.
Interests: Poetry, Bibliography, Solving Japanese Puzzles, Building Lego Sets and
Photography.
Knowledge: Has working knowledge of family-owned businesses, as he is trained
under his father’s pool maintenance company. He is factual and updated on world
news. He is also aware of social media marketing management.
Skills: he is proficient with the plethora of digital marketing tools, he knows how to
work a content management software like WordPress, designing and developing
websites is his strong suit. He has an analytical eye and good memory.
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Traits : diligent, versatile, punctual, ability to understand complex internet behavior,
self-developmental learning, and motivated to be proficient while carrying out tasks.
Other points to recognize:
Has a prior experience of
working in his father’s
entrepreneurial venture
He has made landing pages
for his friend’s online
grocery store.
Has attended Udemy
classes on “introduction to
digital marketing”.
Has job shadowed his
father during client visits.
Has taken a 6-month
internship as a salesman
for his uncle’s mobile
shop business
Likes to read books
He is an avid fan of
British entertainment.
Looking forward to
securing a master’s degree
in marketing.
Completed a bachelor’s
degree in business
management
Nationality: Indian Likes to tutor grade 11 and
12 commerce students.
Participated in book clubs,
drama clubs.
Business Ideas:
 Opening a business startup on a digital marketing agency.
 Launching a Real estate company
Justification:
This section will be provided with the justifications of the aforementioned proposed
business ideas.
Opening a business startup on a digital marketing agency is recommended for Joel
because, he has sufficient background experience and knowledge on the general know-
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how of the digital marketing job role. Moreover, since this job role entails tasks that
require one to be familiar with technology and software, it is apt for Joel as he is
competent in that field. By recognizing Joel’s interests to learn more about digital
marketing from his Udemy certification, and how he exhibited a web content editor’s
responsibility by participating in developing landing page for his friend, further
proves his interests in the field. Thus, an experience as a digital marketing executive
will further enable him to open up his own marketing agency, and hire the required
personnel to cover all vital departments of digital marketing such as social media,
advertising, SEO content writing, multi-channel marketing, etc.
Launching a Real estate company is the second recommendation for Joel. This is
because, since Joel has a family-provided knowledge and experience in entrepreneurial
ventures, he will be able to assess the business climate in better light and make smart
corporate decisions. Moreover, since his educational background is influenced by
marketing, he will further prosper as an excellent real estate broker due to his
knowledge and capabilities to market a product and service to end consumers in an
effective manner. This participation upon in clubs proves that he is a people’s person
and he’s tutoring experience showcases his communication skills; which are required
in order to excel as an entrepreneur and a real estate broker at the same time. Finally,
his brief experience as a salesperson also motivates him to indulge in the corporate
world of real estate brokerage, where he can portray his communication skills,
leadership skills, marketing skills and salesmanship in the business.
CONCLUSION:
Entrepreneurship is a pivotal to ensure the smooth functioning of economy.
entrepreneurs contribute to the innovation, development and infrastructural progress
of a country. Small business organizations are fundamental in regulating cashflows
within the domestic economy and serving local communities. In order to be deemed as
a successful entrepreneur, an individual need to possess a forthcoming attitude
towards the people the people and processes that make the building blocks of a
business venture. Similarly, the entrepreneur needs to be the total embodiment of
motivation: for himself and well as the stakeholders of his business. Along with this,
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entrepreneur also need to be creative, innovative and dealers in embracing future
opportunities and breaking business risks. Keeping a broad and open mindset is
essential as it enables entrepreneur to learn from past failures and experiences and
develop a better version of themselves from the same.
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