Impact of Economy on UK SMEs

This assignment provides a comprehensive overview of the impact of economy on UK Small and Medium-sized Enterprises (SMEs). It includes a detailed review of various sources related to entrepreneurship and small business management in the UK. The analysis covers the economic contribution of SMEs, including statistics on start-ups and social economy. The assignment also discusses the importance of entrepreneurship education outcomes and the formation of human capital in entrepreneurship. A summary of key points is included at the end.

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
TASK 1............................................................................................................................................1
P1. Different types of entrepreneurial ventures and their relationship with the typology of
entrepreneurship.....................................................................................................................1
P2 Similarities and differences between entrepreneurial ventures.........................................3
M1....................................................................................................................................................5
D1.....................................................................................................................................................6
LO2..................................................................................................................................................6
TASK 2............................................................................................................................................6
P3 Interpret relevant data and statistics in your mini-research, to illustrate how micro and
small businesses impact on the economy...............................................................................6
P4. Explain how important small businesses and business start –ups will contribute to the
growth of the social economy after ‘Brexit’.........................................................................10
M2 .................................................................................................................................................11
LO3................................................................................................................................................11
TASK 3..........................................................................................................................................11
P5. Characteristics, traits and skills of two successful entrepreneurs..................................11
P6 Aspects entrepreneurial personality................................................................................13
LO4................................................................................................................................................14
TASK 4..........................................................................................................................................14
P7 Different ways by which background and experience can hamper the performance of
entrepreneurship...................................................................................................................14

Examination of different environments that foster or hinder entrepreneurship...................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
Entrepreneurship refers to the planning, organising, directing and controlling the business
activities of ones own business. For economic and social growth, entrepreneurship can be one of
the fundamental components. It facilitates national development along with regional and local
development too. Entrepreneurship is dynamic and a complex activity. Along with this, different
entrepreneurial skills are found in different individuals (Ács, Autio and Szerb, 2014). These
skills are an overall outcome of the knowledge and experience they acquire in their lives. The
following assignment is based on various aspects of entrepreneurship with focus on different
types of entrepreneurial ventures and their similarities and differences. It also includes impact of
small businesses on the economy of the country. In addition to this, emphasis has been given on
the contribution of small and medium-sized enterprises in the growth of social economy after
Brexit. Lastly, characteristics, traits and skills of two successful entrepreneurs are briefly
discussed.
LO1
TASK 1
P1. Different types of entrepreneurial ventures and their relationship with the typology of
entrepreneurship
Entrepreneurship is a skilful approach to organise, manage, control and lead individuals
within a firm towards organisational objectives. It is necessary for development of the
organisation. It expands organisations function by producing and enacting materials in an
innovative way and by proper utilisation of techniques used in production of these materials.
Different types of entrepreneurial ventures are described below:
 Scalable Business Start-ups: Focus of these businesses is completely towards the
creative points of the business. The persisting model is dynamically changed by these
ventures. They target at employing efficient personnel in their workforce to achieve this
objective. They rely on venture capital funds and financial investments for their
expansion (Blackburn, Hart and Wainwright, 2013). The company provide main priority
in order to satisfy their customers needs and wants so that company can easily earn
maximum profitability and income. They work in specific modern approach in society
with their alterations and well developed goods. In United Kingdom, such type of
1

ventures are taken effective approach in order to introduce buyer regarding terms of
technology.
 Small Businesses: These are the businesses that are mostly independently owned and is
very limited in size, for instance, cafes, auto-mobile retailers, etc.. The revenue
generation from these businesses is also limited. Currently, UK is experiencing a boost in
these businesses. These businesses are also helping the country in increasing its overall
employment level. They are work in such manner in order to appoint local people them
training so that they can deliver their buyers in proper manner. In this, they are set up
business by taken funds from their friends and family. They are taken their steps in order
to find out the needs and demand of customers. The main aim of this business is to fulfil
their buyers requirements effectively.
 Large Corporations: These are those businesses which operates on large scale. They tend
to generate immense revenue for its stakeholders to acquire and the number of people
associated with these companies are also huge. They aim towards sustainability as well as
growth by employing new products and services, along with the business of existing
services and commodities (Bosma and et. al., 2012). This is the reason of them having a
specific life cycle. Competition level in these businesses is very high. It is required of
them to continuously formulate their strategy along with modifications in their products
and services according to market needs. With the main purpose of this, they require to
make and develop competitive advantage by introducing new and well developed
technology goods in better manner. They assist in carry out modern approach to an
organisation. In addition to this, it will provide their main concentrate on huge amount of
deals. Such typology of firm assist in find out target market where they can start to
expand their business operations and its activities.
 Social Entrepreneurship: These type of entrepreneurship aim towards development of
services and products for societal progress and betterment of people. The main agenda is
to provide social services by implementing the firm's products and services towards
betterment of population as well as to increase the effectiveness of the society.
Typologies of entrepreneurship ventures:
2

Typology can be described as classification of a group or a class, having characteristics in
common, on the basis of general type, structure, form, style, plan, etc. The four types of
typologies found in entrepreneurship are mentioned below: Survival Ventures: These ventures are limited to providing basic subsistence to
entrepreneurs and their families. They are usually not formally registered and don't
operate in any premises (Bridge and O'Neill, 2012). These ventures have to no banking
relationships and just operate with few basic assets. Reinvestment in these ventures is
usually not a suitable option as they exist to satisfy basic financial needs of its owners.
Micro-businesses are covered in this type of topology. Lifestyle Ventures: These type of ventures provide stable income for its entrepreneurs.
These ventures adopt a maintenance approach and workable business model. These
ventures are subjected to competition in local markets. These ventures usually have few
employees and operate in single premises. Businesses in lifestyle ventures do not aim at
growth or expansions. Number of employees in these ventures remain comparatively
constant. All kinds of small businesses are covered in this segment. Managed Growth Ventures: Over time, these ventures aim at stable business growth and
consists of workable business model (Carsrud and Brännback, 2011). These ventures aim
at steadily expanding their facilities, innovative product launches, entry in new markets,
shifting their locations, employing new staff, etc. Reinvestments in the ventures are
ongoing. All the medium-sized enterprises are included in this typology.
 Aggressive Growth ventures: These ventures are technology-based in nature and possess
strong innovative potential. These businesses seek exponential growth overtime and rely
on equity capital for their funds. Such ventures operate nationally as well as
internationally with aim to enter new markets over time. This topology covers all the
large businesses and enterprises.
P2 Similarities and differences between entrepreneurial ventures
There are certain elements which makes one another different or similar while
performing any kind of activities or task. So, to understand the concept in a better manner both
similarities and differences are explained below:
3

Types of Enterprise Similarities Differences
Small v/s large business
enterprise
 Large and small both
the enterprise works for
their own benefits and
for this they try to give
better services and
facilities according to
the needs and wants of
customers. As a result,
it assist firm in
improving its sales and
profitability in a given
time frame.
 Financial condition is
the biggest factor that
makes small business
different from large
enterprise because
latter one
comparatively has huge
amount of money for
operating its business
or executing the plan in
an effective manner
(Luiz, 2011).
 Whereas in relation
with small business
because they perform
their activities within
local areas and earn just
to fulfil the needs of its
own family members.
Social v/s Scalable
Enterprise
 Scalable and social
ventures generally
work with the motive
of providing better
services to people who
are living in the
society.
 For this, they develop
new ideas which can be
beneficial for people in
 Social is all about to
deal with society so
that lives of people can
be enhanced. This will
help them in improving
their standards.
 Whereas in relation
with scalable
entrepreneurial
ventures works with the
4

order to make their
lives easier.
 Entrepreneurs who are
working in this field
have the tendency of
taking risks so as to get
better outcomes and
results in return. In
order to do the same
new and latest
technologies are being
adopted.
motive of changing the
world for a better living
and in order to do the
same they implement
new and innovative
ideas and thoughts
(Lee-Ross, and
Lashley, 2010).
Lifestyle and survival
entrepreneurial venture
 Both lifestyle and
survival ventures work
with the purpose of
earning more money
for survival and
establishing a good
image in front of
people.
 Lifestyle
entrepreneurial
ventures basically to do
with following passion
and work which an
individual loves to do.
For example: a travel
bloggers who travel to
different places just to
follow his/her passion.
M1
Entrepreneurship in public sector: Entrepreneurship in public sector is an innovative
initiative which results in generation of great economic prosperity. So it is essential for
government, to support self employed entrepreneurs in order to effectively develop their
networks and provide them ways of action to promote collaboration in order to encourage
sustainable development. Entrepreneur in public sector mainly perform their act within
government consideration. It is required for an entrepreneur is to perform functions and activities
5

in better manner in order to reach with desired customers. In this, they are promote variety of
services among customers that can be helpful in developing income and revenue. It is essential
for the entrepreneurs to enhance the economic system of country with the help of which large
number of opportunities will be given to the individuals living within the country. Along with
this, knowledge, experience and background of entrepreneur assist in performing activities in an
effective manner.
D1
The Development and growth of entrepreneurial ventures.
Entrepreneurial ventures contribute various development and growth factors which
cannot be ignored. Some of these factors include providing various employment opportunities
which aids in uplifting communities by enhancing their quality of life and overall living
standards. Entrepreneurial ventures also leads towards expanding commerce and regional
economic integration which strengthens economy and promotes welfare. Entrepreneur is mainly
defined as ability to change innovative ideas into products and services through which new
technologies promote efficiently. Entrepreneurial ventures innovates formative business
practices and innovation which impacts on socio economic objectives and practices.
LO2
TASK 2
P3 Interpret relevant data and statistics in your mini-research, to illustrate how micro and small
businesses impact on the economy
Micro and small business organisations are the backbone of a country’s economy. These
enterprises drive economic development of country by delivering goods and services and
creating job opportunities (Chittithaworn and et. al., 2011). Over the years, quantum of micro
and small business entities has gradually increased. Some of the major impacts that these
businesses have on the economy of a country are explained below:-
Micro business – It refers as an organisation that are regulated and operated by a person
which involves five employees. Due to certain flexibility and mobility, there are various people
of every age are owned their micro business. There are around 5.15 million micro business
6

concern which is situated in UK in the beginning of the year 2015 which is continuously
enhancing in fast manner.
Small business – This define as the business for getting advantages that is independently
operated but it is less dominated in such areas. It is involves with 5 to 500 employees who are
relay on manufacturing innovative products and services. There are more than half of the
business which directs their small businesses in commercial sector in UK.
Micro business – Such type of organisation are mainly formed and developed and it is
notice various services and facilities in order to make effective financial decisions. The business
organisation with minimum 100 to 999 workers is determined under the reach of medium size
organisation.
After the Brexit, United Kingdom has supported small business organisation in gaining high
competitive advantages in the country. It is struggling with the economical crisis, the nation has
manage and control their economic growth and light over small business and start up that
directly impact on different levels of country which are described as follows:
Local impact – Small business organisation mainly influences respective nation local
businesses so that they are providing good employment opportunities for the UK people in post
7
Illustration 1: Impact of Economy on UK, 2018
(Source:Impact of Economy on UK, 2018)

Brexit time. It is positively impact along with make improvement in living standard of country
people.
National impact – It is mainly influence on small business in the country so this will assist
in developing economy through creating more and more business evolution opportunities which
provide great employment possibility in this, monetary will helps in generating nation and their
economy for became rich.
Regional impact – Small business has widely impact on all goods and services which are
developed at affordable rate and offered to desired buyers. This is considered as consumer chaise
and it develops services accordingly.
Job Creation: It is important to realize that micro and small businesses play a major role
in providing both employment opportunities. These organisations are more likely to employ
potentially less skilled and knowledgeable workers and individuals which have no or negligent
work experience. This type of employee hiring practice has two fold benefits. At first, it results
in creating job opportunities for incompetent people who would otherwise have had difficulty in
securing jobs. Second merit is the increase in productivity of these individuals by giving them
induction and training.
High worker productivity: Micro and small enterprises have typically less-diffused
ownership and owners are themselves involved in management. This means that their
organisational structure is simpler than that of large enterprises. Thus, leaders or managers can
establish direct networking with personnel to take feedbacks from employee in terms of issues
faced by them while conducting operations (Choi and Majumdar, 2014). Also this helps the
leaders in ascertaining the performance of individuals closely and work towards improvement in
their productivity levels. Improvement in individual productivity of workforce will lead to
overall productivity raise of organisation.
Contribution to innovation: Innovative ideas are more likely to develop in small and micro
businesses when compared to large business enterprises. They bring innovation and development
in their products and services to increase their stake in market and also to build a brand position.
Along with that, in context of service industry, there are constant fluctuations in demand levels
of customers which create opportunities for these enterprises.
8

Share of business in United Kingdom
In UK, gross value of small business is around 500 billion Euros which collectively
represent 50.1 per cent of country's economy (UK Small Business Statistics, 2018). Micro
businesses significantly contribute up to 4.5 million business units within UK. UK Government
statistics revealed that these enterprises accounted for around 49.1 per cent and generated
turnover of about 85% of total turnover.
Source: UK SME Data, Stats & Charts,(2019).
From the above graph, it can be monitored that there are 1-9 employees within these kind
of firm and the average profit of them within £20,000. In small enterprises, there are 10-49
9
Illustration: UK SME Data, Stats & Charts

employees who are working within these kind of firm and the average profit of them £80,000.
the average profit of medium size companies are within £240,000 and there are 50-249
employees who are helping in running these kind of firms (UK SME Data, Stats & Charts.
2019).
Social Economy
It is formed by a rich diversity of enterprises and organisations like cooperatives,
mutuals, associations, foundations, social enterprises and partiarian institutions of the individuals
and the social aims over capital. In UK, advance in the economy and the innovations emerging
from movement have the potential to help the economy of the nation evolve into one that is fit
for the challenges. The problem with the UK's economy is as it stands is that economic policy
and social policy both are entirely interconnection and they depend on one another to succeed.
In 2017, the financial service sector contributed £119 billion to the economy of UK, 6.5% of
total economic output. It make contribution by offering 1.1 million financial services jobs in the
UK, 3.2% of all jobs. In UK, start ups launched in the last 3 years, it also reveals that UK start
ups employee 3.24 million people nationwide, accounting for 12% of all employment in the
nation. These start ups create positive impact on the economy of the nation and increment in the
entrepreneurship around the UK is also boosting employment numbers (Social economy rising,
2019).
It has been identified that small businesses plays very essential role and highly affect
different level of the economy. In the present context of local, regional, national as well as
international context, small business organisation directly affect the economic condition of the
country. In context of local, small business organisation highly affect the economy but in case of
international market, small business entity does not play very essential role. But on the other
hand, in case of national and regional context small business organisation highly affect the
economic system of the country.
P4. Explain how important small businesses and business start –ups will contribute to the growth
of the social economy after ‘Brexit’
The word “Brexit” comes from the term British exit which refers to the dissociation of United
Kingdom from European Union. The voting took place in June 2016 where a majority of 52%
people voted in favour of referendum stating that Britain should leave European Union. While
10

England and Wales voted to leave, Northern Island and Scotland wanted to stay a part of
European Union. In March, 2017 the UK government invoked the Article 50 of treaty on
European Union. Thus still the negotiation process is going on and only after 2019 can the exit of
Britain from European Union be called definite unless an extension is agreed upon by UK and
EU. The result of voting process had a great impact on the economy of country (Dennis Jr,
2011). Increase in inflation and collapse of currency were some of the impacts. The agreement
that will be made between Britain and EU is not definite yet many speculations have been made
in this context like decline in foreign trade.
The idea of small businesses and start-ups can largely help the economy in overcoming
the crisis by reducing employment levels. Small businesses contribute towards the development
of economy by bringing growth and innovation in the products and services they offer to the
community in market. Small businesses and start ups also aid in stimulation of economic growth
of country by providing employment opportunities to people who may otherwise not be hired in
larger corporations.
These enterprises aim at hiring those individuals and talented people who perceive the
importance of development in existing products or implementing innovation in new products and
services (Drucker, 2014). Large business corporations also emphasize upon development of
small businesses and start ups within the same local community as many large scale enterprises
depend upon small businesses for the completion of various business functions of their
operations through the process of outsourcing. Thus, government of such nation also promote the
growth of small businesses and start-ups.
Small businesses and start-ups assist the economy of a country in increasing the overall
rate of employment in UK up to 2%. Also, it provides over 1.4 Million employment
opportunities (UK Small Business Statistics, 2018). Small business enterprises and start-ups
efficiently give their contribution towards private sector by approximately 99.3%. Owing to
these businesses, overall quantum of employing businesses gradually got increased around
23,000. Besides this, as per the evaluation, there was generation of 5.6 million small businesses
by 2018.
M2
Medium and large business and their impact on economy
11

Organisations which employees less than 250 workers are considered as medium sized
business. Whereas, company having more than 500 employees are known as large business. Both
of these medium and large business organisations play key essential and different roles in
economy. Medium sized enterprises are mainly independent firms which generally employ less
number of employees. Firms in medium sized sectors having not more than turnover of 50
million euro are also included in this sector. Revenue earn by firms are used in equipments,
buildings and bridging gap in their organisations, In large business organisations formal structure
and process is followed and they have wide source of funding and diverse market. Outcome of
medium and large business results in contributing in national GDP in effective way. Wages and
salaries provided to employees and indirect taxes will aid government to increase their revenue.
Medium and large business helps country to increase their overall production level and
effectively results in country import and export base. Another way of contribution of these
business sector in economy is by the way of various other operating surplus and tax return.
LO3
TASK 3
P5. Characteristics, traits and skills of two successful entrepreneurs
It is essential for every business owner to keep enhancing their capabilities and furnish
their skills overtime for their businesses to sustain in an uncertain environment with tough
competition (Fassin, Van Rossem and Buelens, 2011). There are two successful employees
whose characteristics, traits and skills distinguishes them from the average entrepreneurs. These
elements of their personalities are mentioned below:
Characteristic of Richard Branson: Innovative Thinking: Richard Branson is known to be innovative. All the outstanding
strategies of Virgin Group are the result of this thinking of its entrepreneur. With being
an innovative thinker himself, he promotes this trait in its employees to and encourage
them to bring innovative ideas that could contribute to the success of the firm. Decision Making: The success of Virgin Group is the outcome of the effective and
strong decision making power of Richard Branson. At times when strong leadership is
required, Richard Branson aims at taking decisions best for the firm.
Skills of Richard Branson:
12

 Leadership: Richard Branson adopts collaborative and democratic leadership styles
which helps to motivate his employees and facilitates a healthy working environment.
His leadership strategies are acknowledged and respected all around the world (Fisher,
2012). Attention to detail: According to Richard Branson, it is necessary to get the little things
right in order to make the whole plan successful. A close attention to tiny details from the
very beginning of any business activity can be a strong success factor for achieving
business purposes. He promotes this culture in his organisation and motivates his
employees to work with precision.
Characteristics of Peter Jones Passionate: While working for passion it is important that the person maintains the same
zeal throughout the life as it will assist him//her in giving best from business. In relation
with Peter Jones, he is a passionate person because even after failures he kept on trying
new things just to follow his passion of becoming a television presenter. Thus, working
with passion will definitely motivate the person in achieving and doing things even better
in life. Optimistic: Winning or losing is a part and parcel of business thus; changing negativity in
positive is an important thing which matters a lot. Even after having his own business of
manufacturing computer Peter Jones found a job of commercialising products online.
Although this was a small job but because he was optimistic hence, this helped him out to
become one of leading entrepreneur in United Kingdom (George and Bock, 2011).
Skills of Peter Jones Confident: Every person who is working in any field must possess this quality i.e.
confidence as it will encourage an individual in adopting things or performing any
activity differently. This is the quality which made Peter Jones a very confident person as
a television presenter because job of television presenter is not easy as they have to face
many cameras at a single point of time.
 Time Management: This quality is very helpful in accomplishing the entire task in time
frame and as a television presenter there might be a possibility that Peter Jones has to
manage two activities. So, this skill is assisting him in finishing the entire task in a given
time frame without any much complexity (Gorgievski, Ascalon and Stephan, 2011).
13

P6 Aspects entrepreneurial personality
Every individual has traits which are different from one another and these are the skills
that assist a person in pushing their limits so that targets or set objectives can be achieved.
Possessed skills and knowledge helps a person in shaping its personality which can further assist
him/her in attaining its goals in a limited time frame (Islam and et. al., 2011). According to
above two entrepreneurs some of the personality which reflects entrepreneurial motivation and
mindsets are explained below for better understanding:
Extraversion: In order to accomplish the task a person should be passionate and must
have a positive sight of seeing things as a result, it will assist him/her in becoming optimistic in
every outcome whether positive or negative. In addition to this, it will assist the individual in
encouraging its fellow members and subordinates. In terms of their mind set these people are
different and always look out for chances of trying different activities in a better manner.
Agreeableness: Every person whether running a business or not he/she should have a
nature of agreeableness and along with they must have a tendency of convincing other person
with their thoughts and ideas. For this, influencing power should be very good and in relation to
this, entrepreneurs must use effective communication skills so that they can be able to deliver
what they wanted to get from others.
Conscientiousness: In order to run a business it is crucial that a person has a presence of
mind because it will aid him/her in implementing new and innovative ideas (Kirzner, 2015).
According to the current market scenario, where world is changing in a rapid speed an individual
have perseverance of accepting changes and modifications as it will assist in operating business
in a better way without any complications.
With help of above mentioned skills can able to shape their personality and traits in more
effective way and accomplish their goals and objectives in formative time frame. Agreeableness
benefits person to convince other individuals and influence them towards their targets. Whereas,
conscientiousness will aid an individual in implementing and adopting new and innovative ideas
in order to accept change and modify self to operate business in more efficient way.
14

LO4
TASK 4
P7 Different ways by which background and experience can hamper the performance of
entrepreneurship
In terms of performance, skills and knowledge background & past experience always
plays an important role because it sets the base for an individual and determines how the future
will be. For shaping personality traits both external and internal factors are essential thus, a
person should try to build and incorporate all the skills since childhood and it all starts from
education which is being received (Kiss, Danis and Cavusgil, 2012). Therefore, it can be said
that performance of an entrepreneurship can depends upon what kind of education he/she has
attained. Henceforth, teachings, given in school, college or knowledge gained by family are
important because they are the primary source who helps an individual in developing personality
attributes and these further makes them eligible in attaining goals and objectives in a limited time
frame. There are some factors that affect background and experiences influences entrepreneurs
negatively like, financial factor in this case and entrepreneur can face numerous difficulties while
raising its start-up if they are having less capital. They need to seek financial support from
others. In addition to this, if an entrepreneur was not boost up effectively and are not much
experienced or they did not have proper mentor then it is little hard for them to balance and
manage their business in sound manner. There is one of the major factor that negatively affect
entrepreneurship that is gender stereotypes in this being a women there are various set of
assumption has been made by a community that is man are more better in business then women,
it negatively affect women entrepreneur to make their own long-lingering perceptions.
Apart from this, peer group or individual with whom the person lives also put a great
impact on individual’s mind. It refers to the stages where individual try to develop trust and an
entrepreneur create quality because they need to meet new people who are important for giving
some directions to business run by an entrepreneur. This create an awareness of common
understanding and faith factor amongst each other. Henceforth, making relation with lot of
people will foster business of entrepreneur.
Therefore, in the life of an entrepreneur or any other background and past experience plays a
crucial role because it always provides a better knowledge and information which he/she can
15

apply in future activities. From the past experience a person can know about the flaws which can
be avoided in future proceedings. Henceforth, all these assist an individual in enhancing its skills
and knowledge for performing activities in an effective manner.
Education – If an individual acquire higher learning in their life that are mainly concern with
precise subject which will ensure about unique things. In this, learning develop emotion of
enthusiasm in the brain of person so this will endorse an entrepreneur for do something
innovative and creative. For example, Peter Jones in a family which was not sound in economic
way. His father owned small business and since tender age, Peter was interested in following his
father's footsteps. But he was pursue computer education for became a successful entrepreneur in
his life. On the other hand, James Branson family background is strong and his grandfather was a
judge of High Court Of Justice and a Privy Councillor. But he is interested in being businessmen
and currently he is operated more than 400 companies in UK.
Family background – This is another necessary view of trade which will straightly affect the
method of ideas of an individual if they come from good challenging family background so he
would be grow to identify the significance of money and try to capture the same. Peter Jones
family background is not so strong. On the other hand, James Branson family background is
good and they are educate their child.
Examination of different environments that foster or hinder entrepreneurship
Peter Jones belong from that family which was not sound in economic manner because
his father was owned small business so Jones did not go to a good college. But he was see
economic issues in his life like educational factor, lack of fund and other hinder the path of
success but these all issues foster him to be a an successful entrepreneur and running a developed
business. Where as Richard Branson belong to a rich family, he completed his education from a
good college. His interest foster him to be entrepreneur and establish a strong business.
Therefore, it has been identified that life and background of an entrepreneur plays very
essential role as it provide guidelines in order to enhance the knowledge of an individual for their
future growth and development. With the help of past experience and background of a successful
entrepreneur, an individual will be able to know about flaws and positive impact which assist
them in order to gain future development. Hence, all these information and knowledge help in
developing skills, capabilities and knowledge in order to perform different activities effectively
and produce positive result.
16

CONCLUSION
From the above it has been concluded that, there are various kinds of entrepreneurs and all
of them are different from one another. All these entrepreneurial ventures are different from one
another and perform their activities according to the needs for instance: large enterprises work
with the motive of gaining benefits but social enterprise provides services with the motive of
making other lives better and easier. Moreover, to run these businesses it is important that a
person has skills and knowledge. Along with this, they should have certain qualities like
confidence, decision making etc., this will aid them in achieving their targets in a limited time
frame. All these qualities not only influence other individuals but it also encourages them for
opting something new which is different and unique. Other than this, background and past
experience also plays a crucial role as it assist an entrepreneur is shaping its business or ideas so
that better outcomes can be gained.
17

REFERENCES
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