The Role and Importance of Entrepreneurship

The provided document is an assignment that explores the concept of entrepreneurship, its various aspects, and the traits required for successful entrepreneurs. It discusses how entrepreneurship can foster growth in positive ways and highlights the impact of economic conditions on businesses. The document also presents case studies of successful entrepreneurs like Duncan Bannatyne, Oprah Winfrey, and Scott Harrison, emphasizing their unique characteristics and skills that contributed to their success. Furthermore, it emphasizes the need for effective communication, patience, adaptability, perseverance level, hard work, capacity to bear, manage and minimize risk, and a high orientation towards success in entrepreneurship firms.

Entrepreneurship
and
Small Business
Management

EXECUTIVE SUMMARY
The matters covered in this report defines entrepreneurship and related aspects which are
important to know before launching an enterprise. Furthermore, entrepreneurial venture along
with its relativity with entrepreneurship, their difference and similarities have been explained.
Businesses that have established and operating at small level having impact on UK market is the
key which is well discussed in this report followed by their contribution on growth of social
economy. Furthermore, a look into real life entrepreneurs have been provided to know how they
used their entrepreneurship skills and traits to become successful. This was continued to
elaborate their reflection of their personality in motivational mindset. Lastly, various
environments have been identified which may give opportunities or possess hurdles in
entrepreneurship.

INTRODUCTION
The process of creating a new business on the basis of an idea is called entrepreneurship.
Investment is made by entrepreneur for the development and management of venture. Risks and
profits are two factors which are considered before proceeding with the establishment. Generally,
the business started by an entrepreneur is small in size which grows with time through the
application of techniques, technology, labour, and things which are important (Blackburn, Hart,
and Wainwright, 2013). The report covers venture that can be used in setting up a business and
their connection with entrepreneurship along with similarities and differences between them.
Furthermore, examination of relevant information which have been expressed in the form of
statistics for the illustration of impact of small business on economy and their contribution in the
growth. Furthermore, characteristics traits and skills of a successful entrepreneur and reflection
of personality of such person through motivation and mindset. Together with this, examples
explaining background and experience that can possess hurdle or foster entrepreneurship.
MAIN BODY
P1. Different types of entrepreneurial ventures and their relativity with typology of
entrepreneurship
Establishment of an enterprise requires co-ordination of three elements such as
entrepreneur, entrepreneurial and entrepreneurship.
Entrepreneur: It is a French word which is a combination of two words viz. “Entre”
which means between and “Preneur” signifies parts. In layman language, an individual who has
innovative ideas to build own business in the marketplace by taking into account with a view to
make profit and including the risks associated with it. In other words, it can be defined as an
economic opportunity which is grabbed by setting up a venture which will grow with the time.
Some forms of entrepreneurs are as follows:
 Innovative entrepreneur: When a person develops new idea, new products, new
production or processes, followed by identification of potential market and
restructuring of company's structure is known as innovative entrepreneur (Burns,
2016).

 Imitating entrepreneur: The one who copy the ideas of innovative entrepreneur
are called imitating entrepreneur. There is significant resemblance of technology,
processes, methods made by others.
 Fabian Entrepreneur: These kinds of entrepreneurs are not easily convinced to
bring transformation in the organization or business practices. There is no
inventions of new ideas and existing processes or ideas are applied only when
entrepreneurs are satisfied with the results of previous innovation.
 Drone Entrepreneur: The entrepreneurs falling under this category are
impossible to motivate for making changes. They feel that no alterations is
required and satisfied with results being produced currently (Duval‐Couetil,
2013).
Entrepreneurship: It is a concept whereby a new venture is created by entrepreneur by
undertaking risks associated with it. The objective of entrepreneurship is to make profit. It
requires uniqueness and innovation which can transform the whole business. There could be
underlying objectives of resolving problems related to society. There are number of actions taken
by entrepreneur to build something revolutionary for the economy. The functions of entrepreneur
under entrepreneurship are gathering inputs like land, labour, material and capital.
Enterprise: It is defined as a business or company for the purpose of earning of profit
but majorly involved with different types of entrepreneurial ventures. It provides a structure upon
which the whole business is set up and carried. There are number of enterprise forms such as sole
proprietorship, partnership, company, limited liability company etc. It has different meanings
which are about an urge to something unique and new by considering risks, or motive to make
profit or to face challenges.
Typology of entrepreneurship:
 Small Business entrepreneurship: These are the start-ups which have been established
at a small scale. The entrepreneur of such venture employs people from local market,
generally family members. The goals are not big or major and limited to achieve nominal
targets. Furthermore, it is financed through borrowings obtained from friends and family
also, banks are there who provides small business finances. Some of the examples of this
types are hairdressers, consultants, travel agents, grocery stores etc.

 Scalable start-up entrepreneurship: The entrepreneurs who strong believes that their
vision could change the current scenarios and issues in wider context. Only those
individuals are hired who have the sufficient knowledge with impressive skills and talent.
The funding is done through venture capital. Generally, these types of entrepreneurship
ventures are very limited and involves huge risks.
 Large Company entrepreneurship: These types of enterprises are are the results of
huge number of innovations (Gill and Biger, 2012). The business is conducted at large
scale which takes into account the customers' taste and preferences, new technologies,
new laws, and many more. They have major contribution in the development of economy
thus, there is a constant pressure to create innovation in new products for attracting more
customers in the market. Furthermore, already registered companies opt for acquisition of
innovative corporates who can help with the execution of innovations and new ideas.
 Social entrepreneurship: The entrepreneurs who have vision and mission to serve the
products which fulfil requirements of huge number of people living in the society. They
are focused on to making goods with an aim to resolve social problems by accomplishing
needs of the society. For example, organizations for non-profit motive, for -profit or in
some cases hybrid. Their goal is to have a better place in the market and not to make
profit or maximises of wealth for its members. This entrepreneur venture is related to
lifestyle typology of the entrepreneurship as they are giving priority to their social
priorities as a result, they attain targeted their goals in less period of time.
Entrepreneurial venture: It means an entity which has emerged by putting innovation
which has objective to create value in the society. There are various kinds of ventures which can
be set up by entrepreneur. These have been provided below:
1. Survival firm: Businesses which face difficulties in earning revenue and income are
included in this category. They are known as survival firms because of the immense
efforts put by such entities in sustaining in the market. These firms look for opportunities
and ways to keep the position and market standing strong among the tough competition.
It does not have large number of employees to carry business. Furthermore, these are
preferred by entrepreneur to start their business. There are no hard and fast rules and the
need to bring innovation is not high. For example, Brightstar Financial, Thirway group.
Both of these organizations have limited funds which should be used appropriately. They

have to put extra efforts for making things work so that they can make place in the
market.
2. Lifestyle entrepreneurship: It is about the involvement of interests and passions into
making products or services which can give a sense of freedom. The motive of setting up
a business venture under this is not about making profits (Mariotti and Glackin, 2015).
These are directed towards providing opportunities for the development of style of living.
Furthermore, entrepreneur produces their own procedure and way to deal with business
issues and make decisions. Also, the focus in not on development of products and time or
time and money are not spent on marketing of good so produced. Also, owners have
direct control over the affairs and give their time to manage the activities on their own.
For example, Corner shop. The organizations in this category have converted their
passion into business. Corner shop is a supermarket which provides number of items
under one roof.
3. Managed growth firms: The business enterprise that has steady growth in the various
changes taking place in environment. Their growth is not affected due to introduction of
new products. This typology includes the entry of companies' products in new markets.
The ultimate objectives are to have a fixed or stable income together with growth.
Activities are carried purely for making profits. Furthermore, products and services are
sold for increasing value of the enterprise. Along with this, income is earned with a view
to have more growth factors. Furthermore, the goal is to make arrangements in order to
have continuous growth. For instance, ASDA, ZARA etc. These entities are engaged in
clothing, food, groceries and many more. these are operating at large scale in domestic as
well as international markets.
4. Public sector enterprise: It is an entity which is registered under separate act of
Parliament, owned and managed by government. Moreover, it is financed by government.
An enterprise will be included in public sector if government has contribution in the paid-
up share capital not less than fifty-one percent. The main objectives are to create a
balance in economic growth and power which are exercised by private firms. These
enterprises assist government in execute and implement effective control on the
commerce and industry for maintaining an equal distribution of products and services.

For example, British Broadcasting Corporation is a company engaged in providing news
articles on television.
5. Social entrepreneurship: These enterprises formed under this entrepreneurship has aim
of solving issues of people in a society (Martin, McNally and Kay, 2013). Entrepreneurs
are directed towards making strong relations with individuals living and carries business
activities for the betterment of society. Products are made on the basis of demands to
provide maximise satisfaction for improving the lifestyle of citizens of a country. For
example, NHS is an organization whose motive is not to make profit but to serve the
society.
P2. Explore similarities and differences between entrepreneurial ventures
Differences:
Basis Survival
firms
Lifestyle
firms
Managed
growth firms
Public sector
enterprise
Social
enterprise
Annual
growth rate
These
businesses are
slow because
of tough
competition it
has to struggle
to survive.
The growth is
moderate and
there is high
probability of
failure because
all people
might not be
aware or
interested in
such products.
It can succeed
in selling to
limited
customers.
The annual
growth rate is
high because
of stability in
the business.
These are on
the safe side
on growth.
Since, these
entities are
financed by
government,
thus, there is
always a good
growth rate.
These
enterprises
operate
irrespective of
growth or
profit. Also,
the annual
growth rate is
slow.
Managerial
focus
The
involvement
of
These
enterprises are
very focused
The ultimate
target of these
entities is to
Involvement
of government
makes it
These
enterprises
have co-

management is
low because of
its size. These
company
focus about
managing its
revenue in
order sustain
in the market.
about its
managerial
activities.
They have
assigned jobs
and tasks to
each
employees
depending on
their skills and
capabilities.
have stable
growth which
requires strong
policies,
procedures.
These are
achieved
through
managerial
functions.
necessary for
proper
functioning of
staff and
employees,
thus there
should be
precision in
the
management.
operative
members who
work in a co-
ordinated
manner. There
is not much
problem in
defining jobs
and work.
Technology
investment
Investment in
the technology
is not made in
huge quantity
because there
is hardly any
income left for
such
investment.
These
enterprises are
directed
towards
making good
amount of
investment in
technology
because of
maintaining
quality and
provide
uniqueness in
the products.
The are
always keen to
have
opportunities
to invest in
technology.
There is a
constant
requirement to
update
technologies
used in the
business.
These are
more into
making
investment in
technology
that will help
local market
have strong
position
among
international
companies.
These
enterprises are
not much
interested in
investing in
technologies.
Sources of
finance
The only
sources for
raising funds
are personal
savings and
It may raise
funds from
friends,
family,
personal
The funds are
raised through
share and
debentures.
Furthermore,
The source is
income earned
by government
through taxes
and
It is financed
through
donations and
charities.

loan from
banks and
financial
institution.
saving, loans
and
borrowing.
retained
earnings are
also used.
investment.
Similarities:
Strong willed entrepreneur:
Survival - The will power of entrepreneur strong enough to take risks which can provide
profit. Also, the surplus of funds bring the innovation and transformation in them with the help
oh their strong will power.
Lifestyle- The entrepreneur of such entities have very strong will due to which a thing
entirely different from the other products are made. This shows the risk taking capacity of such
entrepreneurs which make them experiment with something unique that will provide different
experience.
Managed growth- The risks taking is high which make these entrepreneurs highly willed
which make them compatible to manage the shortcomings and other negative actions in a proper
way which will maintain the growth. These firms are highly managed because of right decisions
based on high will power.
Public sector- The entrepreneurs are highly willed because of involvement of
government in the operations of business and they get the proper supports as well as help from
the government for effective and smooth working of the enterprise.
Social enterprise- Entrepreneur are good willed as they are unsure about whether it will
be a successful venture or not. In this the entrepreneur have the proper idea of the success and
growth of business. Such enterprises do not have any backup or financial support as they do not
make profit or raise funds. Hence, the objectives are achieved because the entrepreneurs have
strong will power to change the world.
Creative idea
Survival- They are very eager to plan and implement new and innovative ideas for
gaining profits so that they can survive. As these entrepreneurs are of creative mind they perform
their work creatively which enhance their working and leads towards the growth. Such
enterprises rely on producing innovative products for increasing the sales and profits.

Lifestyle- These entrepreneurs have already put their best creativity in the enterprise
which is modified according to time and requirement as well as their lifestyle. They work
according to their unique way and this gives the results in an effective manner. The soul of such
business is creativity. Entrepreneurs of such enterprises believe in making innovative ideas.
Managed growth- These enterprises show high interest in creative ideas in their business
practices. As a proper management in business leads to the creative work and effectiveness in
productivity of employees as well as business enterprise. They analyse the creative ideas of their
competitors in order to make improvements so that a more desired goods can be produced.
Public sector- They are dependent on the creative ideas of other successful enterprise;
they bring existing products in a better way. As they grab the best opportunity form the market
for their business growth as well as profit maximization.
Social enterprise- Such enterprises are directed towards using innovative ideas in order
to resolve societal problems. As they more focuses the beneficial of the society as they do the
social welfare. These enterprises are directed towards bringing new ways of doing the existing
things. This increases the chances of being successful.
Creating a brand name
Survival- It gets very hard for these enterprises to survive which according to them can
be improved through creating a brand image. It makes use of number of advertising and
promotional tools such as advertising of television, social media platforms, print media,
hoardings and many more to promote their business.
Lifestyle- These are well recognised entities who have brand name which is valuable
organization. As their product and services are exchange by the customers easily with the helps
of their by their goodwill and the brand name of products as well as the organization.
Managed growth- The managed enterprise is relay on their brand name as these are
totally depend on their image, goodwill or brand of the company. Such enterprises have huge
brand name due to effective strategies for managing the business this is the reason for having an
renowned name.
Public sector- Government invest money in by considering brand name as a criterion.
As good image or brand name of company leads to the more investment in share by
shareholders. Public sector enterprises have strong brand name in the market because of

involvement of government. They are highly financed with the financial resources which are
provided by the government.
Social enterprise- Brand name is a good source for them on the basis of which it can
have funds. As they focuses on serving the services and product to the society for the wealth
maximisation, they do not perform task for making profit.
TASK 2
P3. Interpret and assess relevant data and statistics to illustrate the impact of micro and small
businesses on the economy
Enterprise are emerging in UK which has major contribution in the economy. It
comprises micro and small firms which operates in the country. These may be affected by
number of factors. Furthermore, number of benefits are provided by these enterprises which are
reflected through job creation, infrastructural development, foreign exchange and many more.
Micro and small business enterprises have been elaborated below:
Micro entities: These are the smallest form of businesses. Generally, the business is
managed by a sole person and in majority cases it is located in the house of owner. The
professionals who prefer micro business are designers, doctors, artists, etc. Furthermore, UK
government has exempt it from liability insurance, specific licensing compliances, worker's
compensation and many more. They do not hire employees in huge number. Besides, a micro fim
has to fulfil the two conditions viz. turnover up to £2Million and employees amounting to 10 or
less. These are very small business entities who lacks in arranging funds to finance its operations
as well makes less revenue as compared to small organizations (Nakara, Benmoussa and Jaouen,
2012).
Small entities: These are privately owned entities such as corporations, partnerships, sole
proprietorships etc. Some of the examples are medical store, bakeries, who are engaged in retail
operations. However, these can work without less capital or employees. These have objectives to
serve local community and invest in the assets particularly, machinery for carrying business
activities smoothly. A company having employees not more than 50 and turnover not exceeding
£10Million. These are present in majority in the UK and they cannot go beyond what has been
prescribed to them.

The current data disclose that, approx. 99.3% of the entire private sector business in the4
beginning of 2018. furthermore, the employment in such entities was 16.3Million and turnover
was £2 Million.
Figure 1: Share of business in UK by size, 2018
These have impact the UK economy in the following ways which are as follows:
Figure 2: Private Sector data, 2018
Impact on jobs: In the beginning of 2018, the different categorisation viz. Employing
businesses were 1.4 million and non-employing were 4.3 million out of which 75% had owners
only. It is fell by 0.1% which is not good for the economy. The current reason for decline in
employment is BREXIT. This has impacted the export and import which forced companies to cut
off jobs. Apart from this, High Street Crisis has a major contribution which added the force in
recession period. This has reduced the confidence of the general public in private sector which
directed them to government i.e. public sector.

Turnover: The chart shows a turnover of 21% in micro businesses and 15% in small
businesses. It has been increased as compared to last year records. The innovation brings by
SMEs increase the sales which ultimately contribute to turnover. Again, the major reason is
BREXIT which disrupted the whole business scenario. This has created fluctuations in currency
rate, the inflation, decline in demand and supply etc. Turnover is an important factor which
should be revived. The small and medium enterprises are likely to get affected significantly with
reduction in turnover.
Growth: The business population has been decrease in the growth with a fall of 27,000
businesses which is a 5% decline. However, the overall growth is increased for about 63%
amounted to 2.2 million since 2000. It is considerable enhancement.
 Product competitiveness: Enterprises operating at micro and small level are good at
making the competition ever more tough. They tend to bring new ideas and innovation in
the existing product or services also, implement different strategies which helps them in
surviving in the long run. These enterprises understand the value of board, plans and
procedures which is applied in business operations. Also, the management have better
control on the goals and achievements due to direct control exercised by directors. This
increases the flow of information which makes the whole system work in a good way.
 Creativity: Organizations work their ways for making new ideas and innovation which
are applied in business practices regularly to have competitive advantage. This is is a
prime responsibility of entrepreneur on which the whole enterprise is built. Furthermore,
this helps in increasing profit which is utilised in future growth. Implementation of new
ideas into business venture motivate others to invent new technologies, processes, or
methods which can give better results.
 Contribution to advancement: Micro and small business enterprise spend time and
money to get innovative ideas which will bring the desired results. Generally, innovation
is used with a view to introduce something unique which will have major impact on the

operations. The innovation gives birth to advancement by making new technology which
will be used by other entities. This fosters the growth of companies operating in UK
market. These enterprise increases the concept of advancement which opens new ways
for growth in the business. This is a major reason for improving economic conditions
which ultimately make the life of people living in the country better.
 Development into bigger undertakings: Micro and small business are growing rapidly
in the UK market. They have become more focused into taking their activities to a bigger
level. According to above figure, micro business are in majority and then the large
enterprises. This shows that business carrying their business at such level are
transforming into a big undertakings when they achieve a level of profit. Besides, they
have innovative ideas which help in growing their businesses and make improvement in
existing venture. Thus, huge number of large number of enterprises are results of micro
and small organizations.
From the above stated description, it has been analysed that micro and small businesses
places impact upon economy. It has been seen that after BREXIT number of micro and small
businesses is increasing every day. This ultimately enhances economic growth of United
Kingdom.
P4. Importance of small businesses and business start-ups to the growth of social economy
Social economy comprises number of entities which have been formed by people for
meeting economic, social and cultural needs of the members. small and micro businesses have
their share to contribute in the economy. Businesses that have established wish to have
opportunities to have growth in the market. It is also called third sector which combines private
and public sectors. It is more about non-profit and voluntary motives.
On the basis of the graph provided above, it can be concluded that people in UK prefers
setting their business on micro level. This is the easiest and inexpensive way to enter into market
and make a position in the marketplace. Business environment is operative of both internal and
external factors which have the potential to impact these enterprises. UK faced financial crisis in
the past which affected all the entities in a negative way. Fast forward, companies in UK has
again suffered from BREXIT. BREXIT is yet to be finalised as this transition phase is impacting
companies in a significant manner. Corporations in UK exports their products in other European
countries as there is low tariff rates which are to be given on the goods being transported outside

UK. Since, there is nothing concluded about BREXIT, business ventures are confused whether to
proceed with business dealings in member countries of EU or not (Sampaio, Thomas and Font,
2012).
UK government made rules and laws for having ease on European Union matters. These
types of situations impact the business operations in a significant because the plans, policies and
procedures depends in events occurring in a country. It affects profit of companies as there is no
stability on which business can be carried out. The possible outcomes of BREXIT have become
unfavourable to micro and small size business enterprises. This is due to number of reasons
which are high level of unemployment, increase in prices of raw material, decline in sales,
fluctuation in conversion rate, etc. These elements must remain steady so that organizations can
generate profits and achieve targets. The prime reason of failure of many firms because of their
dependency on member countries on EU. Delay in BREXIT decision has forced UK economy
particularly micro and small entities as it is difficult for them to sustain in such huge fluctuations.
Furthermore, small and micro entities find growth opportunities to expand their business
and become a large corporation. This is possible through right people at right job, adequate
infrastructure, funds, demands etc. There should be a co-ordination between these resources in
order to create a strong position in the competitive business environment. Therefore, innovation,
new technology, processes, methods etc. should be built only when economic conditions are
favourable. Also, growth opportunities should be considered for further development.
The significance of small businesses on social growth can be bets understood with the
following:
Creation of employment: The entrance of small business enterprises in the market affect
employment and there exist a direct relationship between these two factors. The smaller
businesses establish in UK, the more jobs will there due to opening of new fields and areas.
Innovation: Entrepreneur plans to set up an enterprise on the basis of innovation. New
and advance innovation will help business grow which will contribute to overall economic
growth.
Local improvement: Initially, the enterprises are set within the local range which bring
changes in local market. Small businesses contribute in infrastructural development, level of
competition, and other growth opportunities.

Meeting social purposes: there are some demands of people which are beyond profit.
The small and micro businesses operate in local market focused on making needs pertaining to
different communities.
TASK 3
P5. Determine characteristics traits and skills of successful entrepreneurs that differentiate them
from other business managers
Every person has talent and skills which can make him or her a successful entrepreneur.
Provided, there should be an innovative idea which is well financed. Furthermore, there should
be a guts to accept both positive and negative outcomes. An important element is that, business
situations change from time to time which requires adjustments in skills and traits used by a
person. A real life successful entrepreneur can put the best elaboration of what make them
different from managers. The characteristics of a successful entrepreneur are as follows:
 Disciplined: Entrepreneur are concentrated in their work and they have strong
determination to achieve the goals for which enterprise has been set up. There are
strategies for attainment of objectives.
 Confidence: The available knowledge of entrepreneur is used to execute business
policies and strategies with the confidence of getting success in the business. This
characteristic is states that all the activities and decisions are made and implemented with
confidence.
 Competitive: Every entrepreneur knows himself/herself better than anyone else. Also,
there is an urge to do the best and be competitive enough to survive in cut throat
competition. It increases risk taking capabilities in an entrepreneur.
 Creativity: An enterprise conceive ideas and uniqueness in making existing products in a
totally transformed way. This factor is important for the success. Successful entrepreneur
knows the value and demand of innovation, thus, keep thinking about what new could be
done.
 Passion: Entrepreneur has to be in love with their work. This means that, if the
circumstances arise and requires more work by putting extra hours then entrepreneur
must give it. Successful entrepreneurs make their work a top priority.

J.K. Rowling has been chosen for this discussion, who is a successful female
entrepreneur and author, the distinction is mentioned below:
J.K. Rowling is a novalist, philanthropist, film producer, television producer and
screenwriter based in England. She is best known for her work, particularly, books which has
been transformed into a film and received multiple awards. She is a female entrepreneur who is
successful in her life because of number of skills and traits as follows:
Characteristics of J. K. Rowling:
 Innovation thinking: Being an author who writes fiction novels needs imagination and
innovation to attract readers to read the books. Every book, fim, etc. are made with
innovation. The tactics used force a person to get involved with the content. Furthermore,
she is is liked by youngsters due to her style of putting innovation in every new things
she does (Qualities of a Successful Entrepreneur, 2018).
 Passionate: By looking at the history J.K. Rowling, one can find about how much
struggle she has to gone through. The hard phase in life did not break her passion towards
writing books. She has set an example for all the people to never to lose passion for what
you love the most. It is her passion, that made her write some of the best selling books.
Furthermore, there is an undying nature of J.K. Rowling which made her get engaged in
philanthropic activities to help underprivileged. Risk- taking: Entrepreneurs are known for risk taking ability. They start their enterprises
with a view to convert threats and risks into opportunities. J.K. Rowling was unaware
about her success but she took the risk of entering into the world of business. She
produced the famous movie Harry Potter which was very successful that added to her
fame and popularity. This was one the huge risks that she took.
Skills of J. K. Rowling:
 Confident: When entrepreneur plan to establish a business on a new idea, it requires
confidence to face positive or negative outcomes. This helps them in being connected
with the world and work in an efficient manner without being stopped by any hurdle.
Furthermore, this skill gives encouragement and motivation to subordinates to work hard
for attaining desired results. J. K. Rowling took a chance on the iconic book Harry Potter
because she was confident enough about its success and becoming one of the best selling
books.

 Time management: It is one of the prime skills that every entrepreneur should have. A
work done on time has value which is important for business. J.K. Rowling is engaged in
many field of work which require ample amount of time. She gives time accordingly.
Further, success can be gained through proper time management.
 Strategic thinking: This involves making decisions and strategies that will be used in the
business for making it successful. J.K. Rowling is a woman who is skilled enough to
make right decisions which can help her survive in the tough competition. She
collaborated with number of association which made her business successful.
Entrepreneurs are made not born. A person may have skills which may be sharpen to be
able to apply in carrying business activities in an enterprise. In other words, every individual can
be transformed into an entrepreneur if given the right knowledge and skills together with
motivation and tactics. On the other hand, some authors agree on the line that entrepreneurs are
born and not made. The interpretation behind this is that people have entrepreneurship skills in
the genes.
Difference between successful entrepreneurs and managers
Entrepreneurs Managers
This individual is visionary and bears all
financial risks.
Emphasises on starting and expanding business
risk.
The key motivation for an entrepreneur is
achievements.
Rewards of an entrepreneur is profit that he has
earned.
Manager is a person who is being paid for his
work in the company.
Emphasises on smooth functioning of the
business and operations.
A manager is motivated from power that he has
in the organisation
Salary and recognition are the rewards of a
manager
P6. Assessment of how characteristics of personality of entrepreneurs reflect entrepreneurial
motivation and mindset
Entrepreneurial mind-set: Every individual has a thought working on a freelance basis
or be self-employed. This gives them a freedom to act on their own. Furthermore, the profit is

not shared by anyone and decision making is also exercised by own. This is what every
entrepreneur look for.
There are two kinds of mind set which are fixed and fluctuating. Fixed is when an
entrepreneur's thinking and ideas do not modify with the time and situations. Whereas,
fluctuating is one in which adjustments are made as and when changes occur in the environment
which demands stability by adopting new policies and plans.
The importance of entrepreneurial mindset is the reason behind success or failure of a
venture. The significance are as follows:
1. This bring stability in the whole business practices from the initial level which further
helps in conducting the activities in a specific and sorted manner.
2. The balance between different aspects of personal as well as professional life is created.
3. There is constant development of creativity.
The entrepreneurs are referring to those individuals who possess with an innovative idea
to face problems of their consumers and overcomes with the solution by initiation of starting up
of a new business. These persons are always motivated and passionate which helps them to
transform their imagination into innovative products and services. The entrepreneurs mainly
possess five main traits or characteristics which are defined below:-
Openness: This characteristic of an individual states that entrepreneurs are required to be
open in nature so that their team mates can share issues with them in effective manner. Extraversion: This is referred to the behaviour of entrepreneurs where they love to be
with and around people rather than living alone as they are talkative, energetic, assertive,
active and take involved in social interactions (Goodwin and Heath, 2016). Agreeableness: This is the dimension of personality which describes about propensity of
entrepreneurs. The entrepreneurs with high degree of agreeableness are helpful, friendly,
cooperative, generous, and have complete control over their negative emotions. Conscientiousness: This trait is used to describe about entrepreneurs which are highly
organises, disciplined, hard-working, perfectionists, highly dependable and work in
systematic manner as they are oriented towards accomplishment of goals and objectives.
 Neuroticism: This trait define entrepreneurs tendency to experience their negative
emotions such as sadness, anxiety, depression and stress. This is also referred as
emotional instability.

The real motivation behind the success of entrepreneurs is to develop answers for
problems being faced by their consumers. They are not encouraged by the level of productivity
yet their accomplishment of objectives related to their start-ups is more important. They are
influenced and motivated by their realization of their idea rather than emphasising on making
profits after conducting their business operation's.
TASK 4
P7. Identification of various environments that foster or obstructs entrepreneurship
In the present scenario, it has been determined that there is availability of various number
of components of both external and internal environment which enriches or hinders the growth of
entrepreneurship and these factors are explained below:- Personal background and education: this has been ascertained that family background
and qualification of business associate or entrepreneur lays down major effect either by
acting as a hindrance or fostering the entrepreneurship. For example, a individual whose
blood relations or family members wish to start a new business than they would be
already having the knowledge related to the management and commencement of new
start-up by encouraging entrepreneurship.
 Entrepreneurial skill set: Every entrepreneur must have various skills which helps them
in making their venture successful. They are required to possess a specific set of skills
comprising of effective communication, patience, adaptability, perseverance level, hard
work, capacity to bear, manage and minimize the risk and highly oriented towards the
success of the entrepreneurship firm. Their skills set fosters the growth of
entrepreneurship in positive manner.
 Economic environment: Every entrepreneurship firm have a great impact due to
various economic conditions, fluctuations of the economy where the business operations
are conducted. It can be analysed that the affordability of consumers is based on the
changing conditions of the economy and level of income of consumers of the nation.
Duncan Bannatyne (Local entrepreneur): This personality was raised in poverty which
made him struggle even for his basic needs. This made him realise the value of money. He
became focused in starting a business which was started by selling ice-cream. His life became

stable after sometime and he invested his income in properties which he later sold and made a
good money.
Oprah Winfrey (International entrepreneur): This lady has proved that a woman is no
less than man in terms of carrying business. She was raped and survived in extreme poverty.
Along with this, number of other incidents have occurred in her life which broke her confidence.
She made a determination of becoming an entrepreneur. There was a production house in
America which signed her to host their show. From this point, she became famous which boosted
her career.
Scott Harrison (Social Entrepreneur): He chose to serve countries without earning
profit. He had clear mission and vision to make accessibility of clean drinking on a daily basis.
The organization has successfully provided water to 17 different countries. Hearing of many
situations about natural problems which made him feel about the shortage of water. He wished to
do something for the society which can help the majority.
There are different characteristics and traits that are present in a successful entrepreneur.
These successful entrepreneurs have explained key factors for their success and growth which
includes willingness to take effective actions, entrepreneurial knowledge, creativity of
entrepreneurs, their skills and intelligence. These key factors help an employee to convert the
business strategy into actions and plans for profits. Successful people always overcome hurdles
and negative things in life and they try to achieve their goals and targets of life.
CONCLUSION
From the above report, it has been concluded that entrepreneurship is a wider concept
which is beyond just setting up a business on an innovative idea. It involves number of activities
which are equally important for success and growth of business. Furthermore, every types of
entities should be managed effectively which is possible through choosing the right type of
entrepreneurial venture along with this their difference and similarities must be understood. In
addition to it, before launching a new idea, economic conditions must be analysed by collecting
data. Also, impact of micro and small business to be assessed for making decision whether to
expand or not. Together with this, required skills and characteristics should be there in an
entrepreneur to become successful. Lastly, number of elements must be evaluated to know which
contribute to foster or hurdle of entrepreneurship.

REFERENCES
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