Impact of BREXIT on Small Business

This assignment provides a comprehensive analysis of the impact of BREXIT on small business, including case studies and research articles. The document covers various aspects such as internationalization, innovation, entrepreneurship, and the effect of BREXIT on small business operations. It also includes references to relevant literature and online sources for further reading.

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT
Contents

INTRODUCTION...........................................................................................................................1
ASSESSMENT 1.............................................................................................................................1
P1 Different types of entrepreneurial ventures and its relation with typologies of
entrepreneurship..........................................................................................................................1
M1 Diverse range of entrepreneurial ventures for understanding entrepreneurship in public
and corporate sector.....................................................................................................................6
D1 Scope, development and growth of entrepreneurial ventures...............................................7
P3 Data and statistics to illustrate how micro and small businesses impact on the economy....8
P4 Importance of small businesses and business start-ups to the growth of the social economy
...................................................................................................................................................11
M2 Differences small, medium and large businesses make to the economy using relevant data
...................................................................................................................................................13
ASSESSMENT 2...........................................................................................................................13
P5 Characteristic traits and skills of successful entrepreneurs that differentiate them from other
business managers.....................................................................................................................13
P6 Aspects of the entrepreneurial personality reflect entrepreneurial motivation and mindset 15
D3 Characteristic traits, skills and motivational drivers of successful entrepreneurs...............16
P7 Background and experience can hinder or foster entrepreneurship.....................................16
M4 Link between entrepreneurial characteristics and the influence of personal background and
experience..................................................................................................................................17
D4 Background and experience influences entrepreneurs, both positively and negatively......17
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19

INTRODUCTION
Entrepreneur is considered as an individual who starts his/her own business instead of
working under anybody as an employee. They have source of new and innovative ideas and
determine as an initiator (Drucker, 2014). An entrepreneur is accountable and responsible for all
the activities whether risk or other factors. Being an entrepreneur, it cannot be directly linked
with having equity stake in an organisation but it is related with showing leadership-related
points. Entrepreneur is commonly linked with entrepreneurship but both the elements are totally
different as entrepreneurship is more than financial gains. Thus, if entrepreneur is having
sufficient equity in a company than he/she can properly manage all its activities. For
entrepreneurs passion is the real drive that takes them to far and make them success.
Entrepreneurship is derived from a French verb i.e. entreprendre and it means “to
undertake”. Thus, it can be said that entrepreneurship generally focus on launching and running a
new business with lots of risk taking capability. Small business entrepreneurs help countries in
improving their economic strengths as they add some amount in gross national income.
Present report will include various kind of entrepreneurial ventures along with its relation
with different typologies. Not all entrepreneurial ventures are same so similarities and
differences will also be included for understanding the concept even more better. In order to
understand the impact of small business on the economy of nation, relevant data and statistics
will be analysed so as to understand things more properly. Furthermore, characteristics and skills
of entrepreneurs will be included in this assignment so as to know about the motivation and
mindset for operating their business (Scarborough, 2016). Background and past experience
always plays a crucial role in running a business as it can have positive as well as negative
impact on individual's performance. So, this was also analysed so as to know the mindset of an
entrepreneur.
ASSESSMENT 1
P1 Different types of entrepreneurial ventures and its relation with typologies of
entrepreneurship
Small business has put a great impact on the economy of a country and mostly positive
one. Entrepreneurial ventures are determine as the one that engage themselves in gaining
maximum profits and growth by using innovative and new strategic practices (Kirzner, 2015).
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Thus, entrepreneurs are the one who create these entrepreneurial ventures so as to pursue
opportunities that are provided by market area. These kinds of ventures can be found in every
sector whether small, medium or large. Therefore, some of the entrepreneurial ventures are
explained below in order to understand it in a better manner.
Small Business Entrepreneurship: Throughout the world small business entrepreneurs
are increasing in a large number and they run business which are independently owned and
operated by the person. In United Kingdom, number of small business entrepreneurship has
raised to around 5.7 million and all these companies are playing their role in increasing the
economic value of the nation (Kelley, Singer and Herrington, 2012). Most of the small
businesses include grocery stores, carpenters, plumbers, travel agents etc., Moreover; these
companies are operated with the help of family members and persons who are known. As
compared to other business entrepreneurship, its profit margin is relatively low and it is regulated
in order to fulfil the needs and wants & also to feed its family members.
Scalable Start-up Entrepreneurship: There are entrepreneurs works with a motive of
changing world with their vision so that people can gain greater opportunities. These businesses
are different from other and with the help of their vision they try to attract investors who can
invest some amount of money for executing business plan in a better manner. Without any
additional sky-high increment cost companies who are under scalable business can increase its
revenue. Therefore, scalable entrepreneurs have different vision and aim & their concept of
changing the world and making it a better place to live makes them unique.
Large Company Entrepreneurship: Large companies includes various life cycles and
these firms growth with the help of innovation such as providing new and latest products or
making different variants out of a single commodity (Parker, 2018). Therefore, their main
purpose of establishing this business is to gain maximum profits and for this company
manufactures goods and products according to the needs and wants customers. As a result, it will
assist firm in sustaining a better position for a longer period of time. Henceforth, organisation
should manufacture goods on a regular basis for new and existing customers.
Social Entrepreneurship: Under this, entrepreneurs who work with social responsibility
are included as they believe in upgrading the living standards of people. They are same as
scalable start-up entrepreneurship and work with a motive of changing the world so that it can be
made a better place for living. Therefore, social entrepreneurs look for all the social factors
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which needs to be considered so that lives of people can be improved who are living in the
society. Hence, they don't work with the motive of gaining maximum profits or creating market
share but to give services that are required (Bridge and O'Neill, 2012).
Typologies related to entrepreneurship:
Serial Entrepreneur: They are considered as the one who establish there business with
new and innovation idea so that business can be started. Serial entrepreneurs are different from
one another because first they think of fresh idea than run their business later give their business
to someone else and think of starting a different job. For example: Giles Palmer, who is the
founder and CEO of BrandWatch as it provides a social platform that connects different brands
with various market opportunities.
Social Entrepreneur: People who work under this are the one who have the potential of
resolving issues and problems that are related to society or have a huge impact on community.
Social entrepreneurs with their own concern take risk and show their initiatives of performing
activities which are beneficial for the society (Santos, 2012). For example: Gravity Light that
works with a responsibility of making life more easier as this organisation is replacing harmful
kerosene lamps with Solar Aid.
Female Entrepreneur: They have somewhat same characteristics like male
entrepreneurs and run their business single handily. Majorly, female entrepreneurs work for
social cause and they are very good in motivating its employees so that goals and objectives can
be achieved easily. Clara Baton founder of American Red Cross can be taken as one of the
example of female entrepreneur. Through her organisation she is improving the lives of people.
P2 Similarities and differences between entrepreneurial ventures
There are many entrepreneurial ventures who work with the purpose of gaining benefits
and providing services to its customers (Shane, 2012). This can include organisation such as
start-ups, social and public companies etc., therefore, similarities and differences of these
ventures are given below for better understanding:
Venture Similarities Differences
Male and female
entrepreneurs
 In order to run a
business effectively
both males and females
are capable enough in
 In relation to
differences, male
entrepreneurs take risks
in order to get higher
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performing their
activities so that
maximum profits can
be gained.
 They both are capable
enough in making
strategies related to
psychological and
demographic factors.
As a result, it enable
male and female
entrepreneurs in
making proper
decisions related to
their business
activities.
profit rates. In addition
to this, they are
compulsive in nature
and sometimes it can
creates problem for
them in dealing with
others. Rather than
high risk in business
male entrepreneurs
never hesitate in
investing large amount
of money in business
activities.
 Whereas female
entrepreneurs are very
calculative in nature
and before investing in
any kind of business
they look out and
collect proper
information so that
better decisions can be
made.
Small and Social
entrepreneurial ventures
 In both the
entrepreneurial
ventures employees of
the company
implement innovative
ideas so that firm can
provide better services
and facilities to its
 Small ventures
basically operate their
business so as to fulfil
the basic needs and
wants of its family
members.
 In terms of social
ventures they work
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customers. Thus, in
order to do this, it is
crucial that company
uses resources in a
better manner for
example: funds to be
used according to the
activities.
 Thus, it will help firm
in getting into a better
position in comparison
to other companies.
with the motive of
developing and
improving the lives of
people living in the
society or community.
Therefore, first they
look after what is
required in the society
and how needs and
wants can be fulfilled.
Scalable start-ups and large
entrepreneurial ventures
 Both scalable and large
work with the purpose
of providing products
and services as per the
needs and wants of
customers so that
demands can be
fulfilled.
 They have the attitude
of taking risk of and
challenges in order to
improve the status of
business. As a result, it
will assist company in
sustaining a better
position in the market
area. Other than this,
they tend to adopt new
and latest technologies
 Scalable Start-ups
entrepreneurs have a
unique nature and work
with an idea of
changing the world.
 Large entrepreneurial
ventures, for operating
its business have a
large amount of money
which help them in
executing their plans in
an effective manner.
This assist company in
delivering best quality
services which will
gradually increase
customer base.
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which can be beneficial
for them in operating
business in an effective
manner.
Lifestyle and survival
entrepreneurial venture
 They both work for
creating more and more
funds so that they can
have good market share
which will bit by bit
improve position of
company.
 Lifestyle ventures
operates its business
solely and they work
for their passion. For
example: travel
bloggers love to
explore places around
the world.
M1 Diverse range of entrepreneurial ventures for understanding entrepreneurship in public and
corporate sector
In this scenario, there have been an increase in the number of entrepreneurial ventures
and entrepreneurs as well. They possesses skills and knowledge which are important for running
business in an effective manner. Thus, they are known as innovators who develop new ideas
which can provide better results. Therefore, it can be said that entrepreneurs helps company in
increasing their revenues and economy as well (Bae and et. al., 2014). Entrepreneurial ventures
can be classified into various categories according to the work they want to perform. For
example: large business entrepreneurs work in order to get maximum benefits so they
manufacture goods according to the needs and wants of customers.
Public Sector: They are also known as state sector and are consider as an integral part in
enhancing the economy of the nation. Public sector can be classified into two i.e. public services
and public enterprise. Public service includes services like police, infrastructure, water supply,
and many more. Whereas public enterprise are basically owned by state and they are finance
themselves and for this, company sell its products and goods in order to do the same. So, it can
be said that public sector companies are operated for a commercial basis and firm that work
under this constitute a market share of 51 percent and major part are owned by regulatory bodies.
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For example: Educational institutions which are basically run and governed by government of a
nation (Decker and et. al., 2014).
Corporate Sector: Companies that come under this are integral part of the nation as
from there most of the revenues of nation are generated. Private firms that are regulated by
themselves and not by any government departments are included in this. For example: TESCO,
comes in the category of corporate sector as they earn for gaining benefits and getting into a
better position.
Small business Entrepreneurship: Companies that come under this are run and owned
privately by individual himself along with less number of employees. Thus, size of these
business are small and this can include workers less than 500. Small business entrepreneurs have
less sales as compared with other business ventures. Therefore, as per the sales and assets small
business can define their net profits (Bosma and et. al., 2012).
Medium business Entrepreneurship: In United Kingdom, the percentage of medium
business entrepreneurship are growing fast and they are contributing their money in generating
more and more revenues and increasing economy of the nation. It has been analysed that around
99 percent of businesses are occupied by these medium business. They not only generate money
but also provides job opportunities to other individuals and according to a study, medium
business has generated around 85 percent of jobs for people.
Large business Entrepreneurship: Companies that comes under this work with the
purpose of establishing themselves for a longer period of time and for this they manufacture
goods according to the needs and wants of customers. These firms conduct surveys and in order
to know about the perception of consumers so that better services can be provided. According to
the market scenario, large business make modification related to its strategies which enable them
in providing effective services (Venkataraman and et. al., 2012).
D1 Scope, development and growth of entrepreneurial ventures
Scope: Entrepreneurs are innovative in nature and they have a wide scope of expanding
its business various locations. This helps in developing and earning more and more profits for
their organisation. In addition to this, whether firms deal in small, medium or large scale these
entrepreneurial ventures have an opportunity of providing job opportunities to people. They have
specific aim and are very ambitious while doing their work which assist them in achieving their
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goals and targets. For example: As large entrepreneurial ventures has ample amount of funds
thus, they have a scope of establishing their business in areas where they have not expanded yet.
Development: Every company establish its business with the purpose of growing better
and better throughout the days (Landes, Mokyr and Baumol, 2012). For this, it is important that
company on a regular basis manufacture products that are of best quality and can be delivered to
its customers. This will increase sales and productivity of the firm and along with this it will
improve the GDP level of the nation as compared to other firms and will build a strong image of
country.
Growth of entrepreneurial ventures: Growth of a company can be measured according
to the sales and profitability they are gaining in a speculated period of time. Thus, on the basis of
different parameters growth of a company can be measured as a result, through this firm can
analyse in what field they have to work more for gaining maximum benefits. In terms of medium
enterprise they have less growth because of its less expansion. Whereas small business
entrepreneurial ventures are considered as the least growing business as they operate their
business in small level.
P3 Data and statistics to illustrate how micro and small businesses impact on the economy
Micro and small business are like backbone for United Kingdom as they are driving UK's
economy towards growth and it is opening areas for new companies and entrepreneurial ventures
who want to establish its business. In the year 2014, it has been estimated that over 5.2 million
businesses were established and 99.9 per cent were small business enterprises. Moreover, it is
important that company have proper knowledge about running business in an effective manner.
Other than this, company must ensure that workers are skilled enough and they must have tools
and technologies which are required for executing the plan (Onetti and et. al., 2012).
In relation with United Kingdom, small businesses have an impact on economy at
different levels as they contribute in development of economy. They provides employment
opportunities, helps in achieving financial independence, motivates innovation and increase
standard of living of peoples of nation. These businesses impact economy at the following three
levels:
Enterprise Employees Turnover
Small Below 50 Small enterprise have have a
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turn over which is not more
than 10 million pound
Micro Not above 10 As compared to other
enterprise they have a turn
over of less than 2 million
pound.
Medium Below 250 Medium business enterprise
don't have a turn over of 43
million pound.
Local level: This kind of businesses creates job opportunities to those who are
unemployed. They contributes in local economy by increasing innovation and attract new talents
who can implement new ideas and bring innovation in existing ideas. These businesses quickly
reacts to economic changes because they are customer-oriented.
Figure 1 Local Impact
Interpretation: From the above graph it can be evaluated that since 2009 there was an
increase in tech employment was there and till 2015 it has raised up-to +3.0 per cent which
means +198,156 jobs and these were because of small medium enterprise.
9

Regional level: At this level, business provides innovative and attractive products and
services to their potential consumers. They assist in economic development by raising standard
of living of peoples. Introduction of new technology will improve production and marketing
activities which help them in achieving competitive advantages.
National level: Small businesses develop economy at national level by contributing to
GDP, reducing level of poverty, raising per capita income by increasing level of employment in
nation, They also contributes by providing education, training, and other services to public (Kiss,
Danis and Cavusgil, 2012). On the other hand, it has also been analysed that SMEs have also
impacted upon economy in positively as well at national level because they majorly provides
employment to individuals in United Kingdom.
Figure 2: National Impact
Interpretation: With the help of this graph, rate of employment in small firms has raised
to 48 percent which is more that medium and large business enterprise i.e. 12 and 40 percent
respectively. Main reason of this is an increase of small firms in United Kingdom which is 99.3
percent. Whereas in comparison with medium firms companies who are operating their business
is only 0.8 percent and in terms of large it is 0.1 percent.
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International level: There are a large number of small businesses are running in all over
world which is impacting positively on trade approaches of all over business. If it is talked about
revenue which is being made by a small business then it is really very low in nature. But, when it
is considered at international level then it can be said that SMEs are majorly have became one of
the major factor of raising economy of every single nation.
P4 Importance of small businesses and business start-ups to the growth of the social economy
Small businesses: privately owned organisation by an individual is termed as small firm.
Sole proprietorship, partnership with two or two people that have less number of employees and
low profits in return. This scale of business is able to attract more consumer, as there market
location is accurate (Zellweger, Nason and Nordqvist, 2012). In context to UK economy those
enterprise consider as small scale organisation which generate revenue of about 6.5 million. Role
of small businesses in UK economy:-
 Increase employee opportunity:- small businesses create job surface to those who are
less skilled to work under multinational companies. This sectors enables willingness of
an individual to conduct activity and earn profits in any situations.
 Ability to work in dynamic environment:- small enterprise are those who can change
according to surrounding need. This sector has seasonal opportunity to face challenges
in local markets. Special motive is to grab consumer interest, as direct feedback can be
taken whether in terms of goods or services.
Start up:- start up are fresh ventures which are started by new entrepreneurs in order to earn
profits. Establishment of new platform with innovative ideas and thoughts.
 Innovation and inventiveness:- start ups are new branch with full of opinion and belief.
Coming up business with new mental process then implementing them practically in
today's world is complex task. Development of new techniques and technologies give
support to new entrepreneur to meet challenges(Choi and Majumdar, 2014).
Value of pro-active in society:- start up are those enterprises which control conditions and
create their own environment. Acting in advance, judge every situations and take measurement
11

to resolve difficulty is pro activeness. Activities which are harmful for society recognising it
beforehand for betterment of society (Madhok and Keyhani, 2012).
An increase in number of companies has been seen after Brexit, as regulatory bodies have
given freedom to entrepreneurs and companies to come up with innovative ideas so that
economy can be raised. Because after this, 5.7m small medium enterprise constitutes over 99
percent of private sector which is providing employment to around 60% of people. Other than
this, SMEs are also accounted for approximately 73 percent of net private sector job which is
around 2 million jobs since 2010 (Impact of BREXIT on small business, 2018). In addition to
this, in order to know the impact of Brexit on UK's economy a survey was conducted which
stated that around 10,000 small medium enterprises were opened after Brexit which further has a
huge impact on the economy of the nation.
Interpretation: From the above mentioned graph it has been evaluated that an increase
in percentage can be seen in business and its growth in United Kingdom. For example: micro
level business comes under the category of 1-9 has a growth of 18.9 percent whereas small
business between 10-49 have shown a growth of 23.4 percent and lastly, in relation with medium
business entrepreneurs that comes under the category of 50-249 have an increase of 29.2 percent.
Therefore, according to the graph all the bars are moving forward direction and it shows the
growth in business.
Although BREXIT has a huge impact on business operations but it has some negative
impact as well and high political opacity is the biggest reason. Because some of the political
figure are not agreeing with BREXIT as they are against the BREXIT.
12
Illustration 1: Impact of Brexit on economy

M2 Differences small, medium and large businesses make to the economy using relevant data
Small, medium and large business plays a crucial role in generating more and more
money so that economy of a country can be developed. They have their own characteristics
which makes them different from one another (McMullen and Dimov, 2013). For instance: small
business enterprises are opened at small level like in local areas. People who are engaged in this
basically, do business for fulfilling the requirements of its own family. Size of firm in context
with number of employees can vary from 0 to 50 and its turnover is not more than 10 million
pound. Thus, they don’t have a huge impact on the economy of the nation. Whereas medium
business enterprises, in a country have a huge impact on economy of a country and it is because
of increase in number of firms which are opening in this sector. Company have employees less
than 250 and its turnover is around 43 million pound. Lastly, in relation with large business
enterprise company have staff members of around 1000+ and there turnover vary from 80 to 90
million pound.
D2 Small businesses and its impact on different level of economy
Small business has around 250 employees and approximately 5.7 million small and
medium businesses in 2017 which is around 99 percent of all businesses. At local level micro
and small companies are operating its business and in United Kingdom approximately 5.4
million are in existence who are accounting for 96 percent of business. Other than this, they tend
to create job opportunities for people who are living at local level. In relation with regional level
these companies manufacture goods and products according to the needs and wants of customers
so that economy can be developed which can further utilised for development purpose
(Davidsson, 2015). Therefore, for increasing its sales and profitability they implement tools and
technologies which can assist in providing better services. In relation to national level these
small business enterprise plays a crucial role in improving GDP of a country as it will assist
nation in decreasing the level of poverty by increasing the employment opportunities.
ASSESSMENT 2
P5 Characteristic traits and skills of successful entrepreneurs that differentiate them from other
business managers
Skills and knowledge possessed by an individual make a person a successful
entrepreneur. Some says that all these capabilities are inbuilt but an individual can develop these
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gradually with the course of time. To be a successful entrepreneur an individual must be
disciplined so that focus should be on making profits and eliminating any kind of distraction and
variance which can hamper company's performance because of which achieving goals and
objectives can gets distracted (Rideout and Gray, 2013). Other than this, an entrepreneur is is
confidence enough which motivate them in taking effective decision for their business activities.
Thus, an entrepreneur can be confident if an individual have proper knowledge about a particular
topic.
Entrepreneurs are self starter and they know what work can be done by them so that success
can be gained in a speculated time frame. For this, they consider all the factors that are to be
considered and it is important for running a business in an effective manner. In addition to this,
their strong work ethics and passion make them successful in business and it provides joy to an
individual which is beyond money (Morris and et. al., 2013).
According to the give study material it can be evaluated that some of the skills and
characteristics that can make them different from others are explained below for better
understanding:
Risk: Entrepreneurs are risk takers but that doesn’t mean that they blindly take risks but
their risks are often calculative. This shows their knowledge and temperament regarding doing
any kind of work or business activities. For instance from this article given, William Chase who
was an entrepreneur although his family was facing loss but he continue to be in this Potato
business and later he succeed and become one of the successful entrepreneur.
Focus: An entrepreneur while operating its business is totally focused regarding his/her
decision and majorly concern about the necessary components that are required for performing
all business activities in a better manner. For example; After losses William Chase should have
been thought of opting for different business but he continue with the same business which
shows his determination and focus towards his work.
Growth: Every company run its business with a hope of growth and for this they try to
work hard so that goals and objectives can be attained in a speculated time period. Thus,
entrepreneur looks for ideas along with its potentiality of so that it can be run for a longer period
of time (Webb and et. al., 2013). Therefore, an entrepreneur analyse market area which can be
best fit with available resources. Thus, by determining all these aspects growth can be gained.
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P6 Aspects of the entrepreneurial personality reflect entrepreneurial motivation and mindset
For an entrepreneur realisation of ideas is not the only thing but it is a capability which is
rare. As Schumpeter once said “Ideas are cheap” and this shows that every person can have an
idea and what important is to realize the right idea which can give better results. In psychological
terms there are certain traits which make them different from one another and it shows the
motive of an entrepreneur. Thus, it can be said that both motivational structure and personality
traits are important to build a mindset for running a business in an effective manner (Fernhaber,
Gilbert and McDougall, 2014).
Therefore, after analysing the interview of William Chase it can be analysed that William
Chase was a charismatic character because he stand alone with his business after so many
disputes with rival firm. Running such a long business demonstrated him as an independent
person who is brave enough in taking any kind of decision. Besides, William was so
hardworking personality because even after going bankrupt he started trading potatoes which
was tough for him. Even after selling his Tyrrells Crisps he didn’t retires which shows his
dedication towards work.
Henceforth, after analysing some traits of William Chase it was interpreted that he was
freedom oriented: After working in his own company Tyrrells Crisps he sold his business
because of some circumstances and traded potatoes which simply demonstrate him as a free and
independent person. Bravo in nature: After having long run dispute with TESCO, he refuse to
sell any products that are manufactured by Tyrrells thus, this denotes the brave nature of decision
taking. Risk tasking: Even after dropped as suppliers of potatoes by TESCO Company he not
stopped trading in potatoes with other firms this demonstrates his risk taking character.
Thus, having a positive personality is very important in order to get self motivation as it
helps in setting a different mindset with the help of which business can be regulated in a better
and effective manner (Shane, 2012).
M3 Examine different lines of argument relating to entrepreneurial characteristics
Entrepreneurial characteristics are important and this can be different according to the
nature and thinking. In some situations a person can think emotionally but where there is a
chance of taking bold decisions than his/her thinking can vary. It’s about opportunities and
knowledge a person has possessed. Other than this, personal background, education and life
15

experience also change the behaviour and thought of taking any kind of step for taking business
in forward direction (Bae and et. al., 2014).
D3 Characteristic traits, skills and motivational drivers of successful entrepreneurs
Successful entrepreneurs incorporate certain characteristic that makes them different from
one another and this trait motivates and encourages them in taking appropriate steps and decision
for moving in forward direction. Some of the traits are explained below in order to understand
the same in a better manner:
Passion: Most of the entrepreneurs believe that they have the tendency of changing the
world so they work with enthusiasm.
Vision: It is one of the important components that make an entrepreneur stand different from rest
of the world. In order to grow their business they have a set vision an mission which assist them
in growing in a rapid speed and in a positive manner as well (Decker and et. al., 2014).
P7 Background and experience can hinder or foster entrepreneurship
Entrepreneurship defines as a person’s ability of turning an idea into action or business activity.
This includes different kinds of elements like innovation, risk taking capability, managing and
operating things and persuasiveness. This helps an entrepreneur in using minds in creative path
so that maximum benefits can be gained in a limited time frame. Thus, making a person
complete entrepreneur three aspects plays a crucial role and these are socialisation, education and
experiences (Bosma and et. al., 2012). If an individual is supported by societies for his/her works
than he can feel motivated and encourage in taking step to do things in a different way.
According to a study it has been analysed that family is the one that provides assistance and in
some cases give funds for running a business. But in the case of William at the age of 20 his
mother died and after few of that his father lost interest in the farm because of which he had to
buy it off from his father. Although he got money for starting his own business but because of no
experience he doesn’t earned any kind of profits. Thus, here if his family would have supported
than he would have gain profits.
Other than this, education is the other element which is crucial for a person to have as it
will provide a path of thinking something in a positive manner. William studied in a private
boarding school but during his childhood he was never happy because he would much rather
wanted to be home and on farm doing things. Although it developed curiosity within William but
his less interest towards knowledge came in front when he goes bankrupt and then he realise that
16

“Knowledge is worth more than money”. Thus, if he would have continue with his study and
learned new things than situation might have been different for him.
Lastly, experience which is gained as life goes and in terms of William after getting off track he
managed to do something (Venkataraman and et. al., 2012).
As he was already having contacts in potato world he started trading potatoes with
different owners. For him this was difficult but as he was experienced this taught him to make
every penny count. For example: for every 50p he invested he got £1 back and later he invested
in Woolsworths but that also didn’t give him much return.
Therefore, it can be said that yes, a person background and experience can put an impact on an
entrepreneur. Therefore, to become a successful entrepreneur it is crucial that he/she has proper
knowledge about the field where they want to establish their business. This will not only give
them better life experience but will also provide better results and outcomes (Landes, Mokyr and
Baumol, 2012).
M4 Link between entrepreneurial characteristics and the influence of personal background and
experience
Entrepreneurship are like backbone of a country ad it can be found everywhere from smallest of
family shops to large enterprises. It has been analysed that a person possesses certain
characteristics exposes an individual towards entrepreneurial behaviour. For example:
psychological traits and according to a study it has been found that an entrepreneur have a higher
tendency of taking risk and achieving goals and objectives other than non-entrepreneurs.
Psychological characteristics help a person in pushing his/her limits with help of resources
available. In terms of linking entrepreneurial characteristics and influence of personal
background and experience both the things plays a crucial role. For example: William Chase
instead of having a family he didn’t got much support because of which he failed in having hold
to his business (Onetti and et. al., 2012).
D4 Background and experience influences entrepreneurs, both positively and negatively
Basically, there is a link between the characteristic and background of an individual because
there can be chance of having positive or negative effect of background which can foster or
hinder business performance. For example: background of William Chase has hinder his
business operations but it also motivate him to try something which is different and it is about
some characteristic that encourage an individual in order to overcome from all kind of issues and
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problems. In this case, William got enough life experience which helped him in standing alone
during the first stage or starting of business. For instance stubborn nature of helped him in doing
something new and innovative (Kiss, Danis and Cavusgil, 2012).
CONCLUSION
From the above report it has been evaluated that, in recent time there are many entrepreneurs
who are coming up with their innovative ideas in order to start a new business so as to get
success. The concept of entrepreneur and entrepreneurship is contradictory as both are different
from one another. Entrepreneurs so as to get success open entrepreneurial ventures such as
social, scalable, large, medium etc., all are different from one another and depends upon the
interest of a person as some deals in public and some deals in corporate sector. But all plays a
crucial role in generating more and more revenues for the company so that it can enhance the
growth level of their nation.
Small and medium enterprises are the one that majorly contribute a large amount of money in
increasing the GDP of a country. Along with this, it provides job opportunities in different parts
of the area. Other than this, there are some characteristics and skills which are possessed by an
individual that makes a person different from other and all these are essential for running a
business in an effective manner. For instance a person have should have good negotiation skills
so that he/she can influence other person for accepting their business proposal.
In addition to this, background and life experience can also hinder or foster business because it
decides a person’s motivation and level of taking decisions in a right manner. Therefore, it can
be said that if since childhood an individual is provided with better education or supported for
his/her innovative ideas than he/she can become one of the successful entrepreneur.
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