Small Business and Entrepreneurship in UK Social Economy

Background and experience which may hinder or foster entrepreneurship 14 CONCLUSION 15 REFERENCES 16 INTRODUCTION Entrepreneur is an individual who owns a small business, manages employees and tolerates risks with an aim of earning profits and meeting customer’s needs. The report on entrepreneurship and small business management explores and illustrates suitable entrepreneurial ventures and assesses impact of small business on UK’s economy.

ENTREPRENEURSHIP AND
SMALL BUSINESS MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Types of entrepreneurial ventures and their relation with typology of entrepreneurship......1
P2. Similarities and differences between entrepreneurial ventures.............................................3
TASK 2............................................................................................................................................6
P3. Statistical data evidences on how micro and small businesses impact on UK’s economy.. .6
P4. Contribution of small businesses and start-ups to the growth of social economy after
Brexit............................................................................................................................................9
TASK 3..........................................................................................................................................11
P5. Mini research to determine characteristics, traits and skills of two successful
entrepreneurs, which differentiate them from other business managers ...................................11
P6. Aspects of entrepreneurial personality that reflect entrepreneurial motivation and mind-set
....................................................................................................................................................13
TASK 4..........................................................................................................................................14
P7. Background and experience which may hinder or foster entrepreneurship........................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Entrepreneur is an individual who owns a small business, manages employees and tolerates
risks with an aim of earning profits and meeting customer’s needs. Entrepreneurship is the
process of planning, introducing and operating a new small business (Zelekha, Yaakobi and
Avnimelech, 2018). Small businesses are independently or privately owned as well as operated
firms, which have limited size, employees and revenue depending on the industry. The report on
entrepreneurship and small business management explores and illustrates range of
entrepreneurial ventures and assesses impact of small business on UK’s economy. It will also
study and determine the main aspects of entrepreneurial mind-sets and different environments
that foster or hinder entrepreneurship.
TASK 1
P1. Types of entrepreneurial ventures and their relation with typology of entrepreneurship
The typology of entrepreneurs based on previous occupational backgrounds ( Ryu and
Kim, 2018). Thus, It defines the capacity and willingness to develop, organise and manage the
business venture on it risk so that profitability can be enhanced. He is the individual person who
works as to undertakes the creation, organisation, ownership and risk of business. Thus, the
typologies has been discussed in below contexted manner as-
Scalable start up entrepreneurship: These are the measurable start ups that are been set
by an entrepreneur with a vision and mission statement of providing high quality services to
their customers. They have a good approach of investors and venture capitalists that will help in
generations a good amount of revenue for a nation. They operate within a cluster and attract
almost all the risk factors as well as good amount of benefits that will help in effective expansion
of business operations. The profit or revenue generated by them is utilized for expansion purpose
by the firm.
Large business / established companies / Scalable enterprises: These are large
businesses, which are setup with the motive of earning huge profits by way of creating long-term
goals with proper planning. This kind of entrepreneurship consists of several owners and
shareholders or investors and funds for operating business is obtained through venture capital,
angel funding, bank loans etc. It is a recognized firm or entrepreneurship that employs more than
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500 people with the goal of generating substantial revenue and profit for company and its
shareholders (Rana and Nipa, 2019).
Small business entrepreneurship: This is an independently owned and managed for
profit enterprise with a goal of growing into a long-term business that is profitable and
sustainable (Nikolaou, Tasopoulou and Tsagarakis, 2018 ). It is a start-up commercial enterprise,
which comprises of small firms that hire family members or local employees for operating
business activities with fewer resources and investment. Street food vendors, Restaurants, Retail
stores, Construction firms, Agriculture etc. are some examples of such kind of entrepreneurship.
Social entrepreneurship: they are known as the voluntary firm and thus, improves the
overall operations and action plans within an organisation that works for the betterment and
goodwill of people. Their major aim is to improve living condition of their customers. The
profit generated is been used to carry out more extensive research and develop high quality
products.
Typology of entrepreneurship
Social good organizations / businesses: It is a business built on innovative solutions and
desires to make the world a better place with a goal to maximize impact in a sustainable way.
This kind of entrepreneurial venture is setup with the aim of providing services to improve the
lives and solve health as well as social issues. NGO’s, Non-profit organizations etc. are such
kind of entrepreneurship (Frederick, O'Connor and Kuratko, 2018). Capital is generated through
donations, charities and investments done by individuals or organizations that would like to
contribute towards the society.
Serial entrepreneurship: These free enterprise's comes up with new ideas and starts
businesses ad success is measured by the duration over the operations. This is an opposition to
an entrepreneur who starts single business and runs daily operations of it until retirement.
Female entrepreneurship: This is the process where women organizes all factors of
production, bears risks and provide employment to others in the society. Female
entrepreneurship makes significant contributions to the economic growth and to poverty
reduction.
Conclusion
Hence, It can be concluded that types of entrepreneurial ventures and entrepreneurship is
closely related as it helps to drive out the operations which are been taken in consideration by
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the firm. The good approaches works as to set up suitable entrepreneurial venture and expand
their business operations. Thus, it can be concluded that entrepreneurial practices are very
diversifying and becomes more complex at the astounding rate.
P2. Similarities and differences between entrepreneurial ventures
Similarities between entrepreneurial ventures:
 Entrepreneurial ventures are established with a purpose of generating profits by
performing business activities such as providing good and services to customers.
 Every business involves risks, which are inevitable (Aquino, Lück and Schänzel, 2018).
 Process of raising funds or capital are almost similar in every entrepreneurial ventures
which usually consists of personal savings, bank loans, government grants, borrowings
from financial institutions, family or friends etc.
 The main success behind every business enterprise is its talented and skilled employees
who works towards success and achieving goals of the business.
 All entrepreneurs have capabilities and skills to setup their respective business
organization by implementing the acquired knowledge, competencies and experiences.
Difference between entrepreneurial ventures:
Basis of
compariso
n
Micro
entrepreneurship
Small
entrepreneurship
Medium
entrepreneurship
Large
entrepreneurship
Meaning It is a small
business started
with a minor
amount of
capital, which is
specialized in
rendering goods
and services for
their local areas.
This is a firm,
which is owned
and managed
solely by an
individual, which
has a limited size
and revenue with
an annual
turnover of more
than 75crores.
This type of
business is seen
as small and
medium sized
business, which
have an annual
turnover not
exceeding 50
million
(Ahmadian and
Abdolmaleki,
2018).
Large
entrepreneurship
is an organization
or business,
which is set up
with defined
goals and has an
annual turnover
more than 1.5
billion.
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Scope It is a low
income generated
entrepreneurial
venture with very
little possibility
(Ahmadian and
Abdolmaleki,
2018 Aquino,
Lück and
Schänzel, 2018
Frederick,
O'Connor and
Kuratko, 2018).
Small
entrepreneurship
ventures have
low or moderate
scope as
entrepreneurs
may earn high
revenues and
profits in future.
It has a fair scope
of growth as the
business already
generates good
amounts of
profits, which
can be used for
developments.
These
entrepreneurial
ventures have a
huge scope of
advancement and
can expand at the
same time while
earning enormous
profits.
Goals Micro
entrepreneurship
have short term
goals due to
which less
planning is
required.
These enterprises
have short to
medium goals or
plans according
to the necessities.
Medium
entrepreneurial
ventures makes
long-term goals
with proper
planning.
Large enterprises
have long-term
goals or targets,
which are formed
through accurate
strategic
planning.
Profits These enterprises
earn ample
profits, which is
enough to
support a living
for the
entrepreneur.
These ventures
produces
moderate amount
of profits through
revenues.
Medium
entrepreneurial
ventures makes
reasonable
amounts of
profits.
Large enterprises
generates huge
profits, which are
distributed among
the shareholders
proportionally
(Spigel and
Harrison, 2018).
Risks Due to small or
limited business
operations, the
Small
entrepreneurship
involves low or
Medium
entrepreneurial
ventures
Large
entrepreneurial
ventures consists
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risk involved in
micro
entrepreneurship
is little or low.
less risks because
the activities of
business are
generally
conducted in a
small level.
comprises
moderate level of
risks due to high
level of business
activities.
of very high risks
as business
operations are
performed and
conducted in a
global or
international
level.
Size This type of
entrepreneurial
ventures is
diminutive in
size due to fewer
business
activities
(Kocollari and
et.al., 2018). The
operations are
usually
conducted within
a region or city.
Small
entrepreneurial
ventures are little
and business
operations are
done across cities
or areas. It
includes products
and services,
which are created
for a particular
community.
These are
moderate sized
entrepreneurial
ventures and its
operations are
carried out
throughout cities
and states.
These are big
entrepreneurial
ventures, which
involves huge
amounts of
business
activities, and
operations that
are performed in
a large scale.
Number
of
employees
Micro enterprises
employs fewer
than 10
employees.
Small enterprises
have up to 50
employees.
Medium sized
enterprises works
with maximum
of 250 or fewer
employees.
Large
entrepreneurial
ventures hire
more than 500
employees.
M1 Find and present the facts of entrepreneurship in public sector
Public sector entrepreneurship is a collaboration of an entrepreneurial start up with a
public sector firm or government that woks for a larger population (Zelekha, Yaakobi and
Avnimelech, 2018). They utilize their innovation and technical skills to improve the economic
5

conditions and cater a larger customer base. It will help in proper evaluation of customer's needs
and demands to have a good revenue generation.
D1 Critically examine the development and growth of entrepreneurial ventures
The entrepreneurial ventures will help in proper assessment of the growth measures that
are taken within the organisation and thus will lead the firm to improve the quality of services
and products offered by an entrepreneurial venture. At the initial stage, suitable business idea is
been identified that helps the firm to improve quality of services and thus, will lead the firm to
analyse the needs and demands of an entrepreneurial ventures and thus, will help in appropriate
planning of operations that will help in planning of innovative products and services and meeting
requirements of their buyers.
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TASK 2
P3. Statistical data evidences on how micro and small businesses impact on UK’s economy
Micro and small business are the central pillar of UK’s economy where 99% of firms are
SME’s. Small businesses contribute positively to growth and innovation.
As per the statistical analysis of businesses in UK, the following are obtained:
 Identified businesses in UK in the year 2017 were 5.7 million which increased by
197,000 or 4% since 2016 and 2.2 million more than in 2000 (Scarborough, 2016). Small scale enterprises have increased by 2%(128,000 and 76,000)
SME’s and the UK economy
 Out of the 99% of businesses, 5.5 million were micro-industries which accounted 33% of
employment and 22% turnover (Schaper and et.al., 2014).
 Total employment generated in SME’s was 16.1 million; 60% of all private sector
occupations in United Kingdom (BUSINESS POPULATION ESTIMATES FOR THE UK
AND REGIONS, 2017)
 The combined annual turnover of SME’s was £1.9 trillion, 51% of all private sector
turnover in UK
Illustration: Growth of SME’s in UK
(Source: Essential Facts You Should Know About SMEs in the UK, 2017)
Business population composition
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 There were 1.3 million employing businesses in 2017, where 76% did not employ
anyone aside from the entrepreneurs There are 3.4 million sole proprietorships, which covers the 60% of total, 1.9 million
companies and 414,000 partnerships (Stokes, Wilson and Wilson, 2010).
Trends in business population
 Sustained growth in the total business population increased by 197,000(+4%) since 2016
and was 2.2 million in 2000.
 The majority of business population growth was due to the non-employing businesses,
which accounted for 89%. There were 34,000 medium sized businesses with 50 to 249 employees of the total
business population.
Registration for VAT and PAYE
 3.1 million Businesses (55%) traded without being registered for VAT or PAYE and
were classified as unregistered (Akehurst, Simarro and Mas‐Tur, 2012).
 14% of sole proprietorships and 52% of partnerships were registered for VAT or PAYE
 National statistics recorded 2.6 million private sector businesses as registered for VAT or
PAYE which is 45% of the estimated total population (BUSINESS POPULATION
ESTIMATES FOR THE UK AND REGIONS, 2017).
UK economy has contributed widely by the service sectors towards GDP, which has
raised from 59% to 72% over last three decades. Growing importance of SME’s within
industries of western economies has resulted in various developments in UK’s economy. The
turnover of this entrepreneurial venture amounted to £25 to £500 million depending on the scale
of operations. However, many SMEs have faced challenges and difficulties due to Brexit, which
led them to shutdown business operations. The remaining small and micro enterprises coped
with hitches and stayed stable which have conquered UK’s economy.
Whereas, some SME’s have also contributed positively to the economy by trading
internationally that led to globalization and high economic growth (Alsos, Carter and Ljunggren,
2011. The government of UK has been taking several initiatives to assist micro and small
businesses to prosper in country, which has helped SME’s to become one among largest
economies globally. Supporting SME’s and start-ups are essential for UK’s economy for
innovation and progress. Due to this reason, government may potentially cooperate with banks
8

and financial institutions to aid lending processes, which can be done by making realistic
requirements. This will help business start-ups when applying for loans and grants. Innovation,
employment and adaptability are the major contributions that SME’s have made to London’s
economy and acts as a driving force for new innovations. SME’s also helps to make UK more
attractive and competitive to investors and tourists as it increases diversity and variety in serving
the communities in which they are based.
SME’s bring the tax burden down thereby encourages investment and spending
considering simplification of tax reliefs. It impacts on the UK economy by tackling production
issues which is a major issue of employees and companies in UK. Globalization has allowed
SME’s to do more of their own specialized manufacturing at low cost and high accuracy in UK
rather having outsourced production to lower cost countries in markets that are developing.
P4. Contribution of small businesses and start-ups to the growth of social economy after Brexit
Small business of UK has been facing an uncertain future ever since the UK’s
referendum decision to leave European Union (Blackburn, Hart, and Wainwright, 2013). Yet,
there is a growing judgement that wealth generated of SME’s might be leading charge into the
economic level of UK at a consumer level. SME’s are the lifeblood of UK’s economy, which has
a wide impact on country’s GDP generation. However, UK’s economy had seen a 0.5% decline
in growth rate and GDP after Brexit, which has affected negatively the larger entrepreneurial
ventures as compared to micro enterprises. High growth SME’s or Gazelles as they’re also
known as are growing by 20% according to the investigation conducted by Organization for
Economic Cooperation and Development.
One of the positive outcomes of Brexit to SME has noted an upturn in business, as 37%
of these energetic start-ups were able to attract new customers as well as manage existing sales
without much hurdles (Saebi, Foss and Linder, 2019). It has led to an export flourishing which
resulted due to the deflation of pound value, competitive prices that ensued overseas
investments. Start-ups, small businesses or micro enterprises have a significant contribution to
the UK economy, as these are major platforms of job creation. Official data shows that retail
industry is the largest SME employer in the private sector. As per the findings of Centre for
Economics and Business Research, SME sector’s businesses contributes £196 billion to UK’s
economy, which will continue to grow by 11% till 2020.
9

SMEs of UK are emerging and developing economy by seizing growth opportunities
thereby addressing low productivity development and income gaps. SME’s and young firms are
experiencing a rapid growth in UK’s economy after Brexit as well, which is diverse in terms of
business model, size, performance and aspirations ( Ryu and Kim, 2018). According to the major
economic survey conducted over some 1000 SMEs reveals chances of uncertainties that might
affect these businesses in their future strategic decisions.
Illustration: UK SME’s
(Source: UK SME employees voice job security concerns following Brexit vote, 2016)
Small and mid-sized businesses of UK have become more concentrated on to domestic
market as every regional markets have seen a decline in business since Brexit yet it had no direct
impact on them. The government and industry have an important role in developing networks
and support backing to encourage optimistic SME’s (Rana and Nipa, 2019). The European
Commission considers SME’s as crucial factor that renders economic growth, innovation, job
creation and social integration. Micro firms, young, innovative and high growth SME’s and
some entrepreneurs including women business owners are putting a cross cutting approach to
SME policies to enhance contributions to wide-ranging growth and strengthening to adapt major
transformations.
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SME’s including microenterprises have played an important role in fostering growth,
employment and income of people in UK thereby being an integral part to the country’s
economic transformation. According to the federation of small businesses, SME’s employs 15.6
million people producing a turnover of £1.75 trillion. These growing companies have a huge
impact on the UK’s economy as these are creating more jobs of around 238,000 and £38 billion
gross value within three years.
M2 Define the medium and large businesses
Medium businesses Large Businesses
They are the middle level business enterprise
with a work force of about 250 employees.
They are the enterprise with an employee count
of more than 250 workers.
They are the largest employer and are present
in a significant number.
They are also one of the larget empl;oyer on
local and international level but are few in
numbers.
They form out a larger part of overall GDP of a
country and have a wide range of industries
falling within it.
They are major tax payer firms and usually
work in manufacturing and production sector.
They usually operate on local and intercity or
state level.
They operate on national and international
level.
Both the firms have the significant role on the economy of a nation. While medium level
firms are the largest employer and supports in reducing unemployable rate, larger firm have
higher profits and thus, constitute a major part of economy and GDP of a country. They have a
huge impact on the economy by increasing financial stability, getting foreign investment,
improving trade relations with the firm and catalysing the economic growth of an organisation.
D2 Growth and development of small, medium and large level firms on local, regional, national
and international level
The SME and large enterprises will help in proper assessment of business operations and
thus will lead the firm to have a good and effective growth of local, regional, national and global
level. These firms assist an organisation to meet their needs and thus will guide the organisation
11

to improve performance level of an organisation. The accessing of wider customer needs,
developing high quality product's and services. Besides this, it assists management of a business
enterprise to get FDI and improve trade relations on global level by reducing lack of
employability on local or regional level.
TASK 3
P5. Mini research to determine characteristics, traits and skills of two successful entrepreneurs,
which differentiate them from other business managers
Entrepreneurial characteristics are diverse and numerous which are mandatory for an
entrepreneur to possess before starting their business (Nikolaou, Tasopoulou and Tsagarakis,
2018). These individualities help them in developing innovative ideas, bearing risks to make
profits out of business thereby being successful. Oprah Winfrey and Jeff Bezoz are two
entrepreneurs who have achieved success through managing business and prospered as business
owners. Following are the characteristics, traits and skills of these efficacious business
magnates:
OPRAH WINFREY
Oprah Winfrey is an American actor, talk show host and philanthropist who is the richest
African American and first black multi-billionaire of North America. She is often known as the
most influential women in the world.
Characteristics and Traits:
Emotionally intelligent: Oprah Winfrey’s consciousness of her vision has led her to
achieve great success with her listening skills and empathy that enabled to motivate others.
Inspirational: Oprah focuses on being the best person she can be by providing advices
and suggestions to people in hard times.
Humanist: Oprah is a caring and empathetic individual who does not take justice and
humanitarian issues carelessly. She has proven the power of a strong leader to positively
influence lives of many.
Skills:
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Motivational: Oprah is the most inspirational and enthusiastic women who have been
awarded with presidential Medal of Freedom. Oprah does not believe in failures rather she
considers them as stepping-stones to success.
Adaptable: Oprah endured failure in her 20s as she was fired from her anchoring position
and went through humiliating experiences doing lesser jobs.
JEFF BEZOZ
Jeff Bezoz is the founder of Amazon.com who holds a net worth of $159.6 billion making
him richest person in world. He is an American technology entrepreneur, investor and
philanthropist.
Characteristics and Traits:
Ambitious: Jeff Bezoz strives for success and responds positively to others who are
interested in the same ambitious activities. That desire of this entrepreneur is visible as he built a
wealth of more than $100 billion and is world’s first trillionaire.
Persuasive: He is instant and swaying in building rapport with other people, which has
made the society value his opinions about things. Jeff shows a loyal attitude while interacting
with people that helps in building a long-term connection with them (Lipset, 2018 Morris and
et.al., 2018).
Diligence: Bezoz is not obsessed despite of having strong ambition and adventurous spirit.
He is good at following daily responsibilities making sure things do not fall through flaws.
Skills:
Commitment: Bezoz and his venture focus on staying for long-term as a result, all
decisions are taken in that context. Though amazon have experienced countless struggles to be
established, Bezoz stayed committed and focused to the vision.
Focus: He stresses more on processes rather on failures, which are necessary to translate
great fresh insights into new markets. Bezoz have the courage to fail and learn from failures by
being focused on to the goal.
P6. Aspects of entrepreneurial personality that reflect entrepreneurial motivation and mind-set
Entrepreneurial personality included characteristics, capabilities, skills motives, attitudes
and values, which help in developing individual’s experience and actions. It is the combination
of several qualities, which form character of individuals. Integration of motives and different
13

personality traits make it possible for entrepreneurs to advance their mind-set. Businessperson
has the ability to carry out innovation in business and has a will to change with behaviour of
passive adaptive (Julien, 2018).
BIG FIVE MODEL
Big five personality traits or the five factor model (FFM) and the OCEAN model is the
classification of personality traits which uses common language descriptors to describe human
behaviour. It helps individual make up an overall personality because of the underlying traits.
The five factors are:
Openness to experience: It reflects the degree of intellectual curiosity, creativity for
novelty a person has. Jeff Bezoz is open minded and imaginative and depicts a personal
preference for variety of activities over a routine. Whereas, Oprah is a person with low openness
that makes her to gain fulfilment through perseverance and are characterised as pragmatic.
Conscientiousness: Jeff Bezoz has the tendency to be organized and dependable showing
his self-discipline, aim for achievement and planned spontaneous behaviour. Oprah has also a
low conscientiousness with flexibility and spontaneity.
Extraversion: Oprah is energetic, assertive and sociable. Jeff Bezoz and Winfrey both are
dominant and extroverted people in social settings.
Agreeableness: Jeff Bezoz and Oprah are compassionate and cooperative rather than
suspicious and antagonistic to others. It measures trusting and helping nature of a person. Both
entrepreneurs are involved in charity and donations to help people who are actually in need.
Neuroticism: It is the tendency to be prone to psychological stress, unpleasant emotions
like anger, anxiety and depression. Oprah has the degree of emotional stability and impulse
control which she has developed through her bad experiences. Jeff has low stability and is a
reactive and excitable personality making him a dynamic person.
On the basis of this assessment, this can be concluded that these entrepreneurs are usually
self motivated and work according to their plans and strategies and thus, will lead them to
achieve their goals and objectives. They have an open and positive mindset, which encourages
them to develop the strategies and thus will lead the firm to improve quality of services in much
effective way. Their determination, passion, innovative ideology and skill sets are few factors
which set them apart from the managers and help in improving theuir motivational level and
skill sets.
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M3 Examine the arguments such as “Can characteristics be learnt and adopted by anyone”
The skill sets and qualities that are been possessed by an entrepreneur are few of the
qualities which helps the firm to improve the quality of services and action plans that are been
taken by the entrepreneurial venture to have good growth and development. The statement “Can
characteristics be learnt and adopted by anyone” is true to some extent as the qualities like
determination, assessment of opportunities and other important traits can be learnt or adopted by
an entrepreneur through learning or training. These characteristics and action plans will help the
individual to have certain specific qualities which will enhance their performance to a higher
level.
D3 Analyse the characteristic traits, skills and motivational drivers of successful entrepreneurs
Certain traits, motivation drivers and qualities like hard work, specialization in the
respective field, honesty are few factors that are been taken in consideration that are taken in
consideration by successful entrepreneurs mentioned above. These skill sets and motivational
drivers are few factors that encourage an enterprise to set up his/ her enterprise and take
calculated risks to convert business idea into successful enterprise.
TASK 4
P7. Background and experience which may hinder or foster entrepreneurship
Entrepreneurs experiences many phases in their life that might hinder or foster them in
achieving success or setting up of entrepreneurial venture (Frederick, O'Connor and Kuratko,
2018 ). Background and experiences play a major role in shaping an entrepreneur, which
includes factors like environment, society, education, childhood, family support etc.
Oprah Winfrey
Oprah was born in Kosciusko, Mississippi to an unmarried teenage mother and left in the
care of maternal grandmother on farm. She led a difficult childhood with poor urban lifestyle,
which had its negative effect on her as a young teenager. Oprah hosted the TV Chat Show in
1976 after moving to Baltimore, which became a hit where her success started. In 1986, Winfrey
launched The Oprah Winfrey Show as a nationally syndicated program that grossed $125
million in its first year. (Aquino, Lück and Schänzel, 2018). The miseries and bad experiences
would have made her fall into wrong ways but with her strong will power, adaptability and
confidence Oprah was able to cope up with disappointments. As she had experienced the pain
and griefs which has made her to become a humanist and help people who are facing hard times
15

by motivating and rendering assistance as a philanthropist. The hard times which she
experienced nurtured entrepreneurial characteristics of Oprah that made her a successful
entrepreneur.
Jeff Bezoz
Jeff Bezoz was born in Albuquerque, New Mexico to a teenage mother. He showed early
interests in how thing work by turning his parent’s garage into a laboratory. He developed love
for computers and graduated with a degree in computer science and electrical engineering. He
opened Amazon.com in 1995, which gave an initial success where the firm sold books around 45
countries, and sales reached $20,000 a week (Ahmadian and Abdolmaleki, 2018). Jeff was
ambitious and had inborn talents, which helped him to achieve the success, which Amazon.com
is enjoying today. His strong commitment, focus and educational knowledge made him reach to
his level of success. The entrepreneurial traits including his education, skills helped Bezoz in
establishing a venture and become a successful entrepreneur.
M4 Analyse the link between entrepreneurial characteristics and the influence of personal
background
The entrepreneurial characteristics like honesty, specialisation and improvement of
business operations are deeply linked with personal background and upbringing of an
entrepreneur. A good personal knowledge and improved skill sets are key driving factors that
assist an organisation to improve quality of services offered by a person. A supportive personal
background, knowledge and skill sets with significant entrepreneurial characteristics will help in
suitable establishing of an enterprise within a firm.
D4 Critically evaluate how background and experience influences entrepreneurs, both positively
and negatively
Some traits and qualities that are taken in consideration by an entrepreneur will help the
firm to improve their qualities and operations in much suitable way. On the positive side, it will
improve their change to be successfully setting up their enterprise and generate good revenue.
However, on negative part, this makes a person or entrepreneur more specified and peculiar,
affecting their relationship with others and influencing their performance.
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CONCLUSION
Study on entrepreneurship and small business management concludes that it is important
for an entrepreneur to have entrepreneurial capabilities to manage their own start-up or business
successfully. In addition, the report analysed several types of entrepreneurial ventures and their
typologies to choose the right ones. It also discussed the similarities and differences between
entrepreneurial ventures. The report summon that entrepreneur's family background, education
and experience sets their decision making and mindsets which makes them distinct from
business manager.
17

REFERENCES
Books and Journals
Ahmadian, S. and Abdolmaleki, S., 2018. Network typology and international opportunity
recognition: moderating role of entrepreneurial orientation. Journal of Global
Entrepreneurship Research. 8(1). p.17.
Aquino, R.S., Lück, M. and Schänzel, H.A., 2018. A conceptual framework of tourism social
entrepreneurship for sustainable community development. Journal of Hospitality and
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