The Impact of Personal Background on Entrepreneurial Characteristics

The assignment content emphasizes the significance of personal background and experience in shaping entrepreneurial characteristics. It highlights that entrepreneurs who have faced financial crises can benefit from better education, family support, and past experiences that help them develop a successful business. The report also underscores the link between entrepreneurial characteristics and personal backgrounds, suggesting that individuals with a risk-taking family or educational background are more likely to become successful entrepreneurs. Additionally, it discusses how past experiences, whether positive or negative, can influence an individual's objectives and targets, ultimately motivating them to achieve their goals.

Entrepreneurship

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 .........................................................................................................................................3
P1. Different types of entrepreneurial ventures and explanation of them to their typology. .3
P2. Similarities and differences in between entrepreneurial ventures....................................4
M1 Understanding of entrepreneurship in public and corporate sector.................................6
D1 Scope, development and growth of entrepreneurial ventures...........................................6
TASK 2............................................................................................................................................6
P3. Assessment and interpretation of relevant data and statics on the impact of micro and
small business on UK economy.............................................................................................6
M2 Difference between small, medium and large business make to the economy................7
D2 Impact of small business on different level of the economy............................................8
P4. Importance of small business start-ups to contribute growth of the social economy after
BREXIT..................................................................................................................................9
TASK 3..........................................................................................................................................10
P5.Characteristics, traits and skills of two successful entrepreneurs which differentiate them to
business manager .................................................................................................................10
M3 Arguments relating to the entrepreneurial characteristic...............................................13
D3 Characteristic traits, skills and motivational drivers of successful entrepreneurs..........13
P6. Assessment of aspects entrepreneurial personality which reflect on the motivation and
mindset.................................................................................................................................13
TASK 4..........................................................................................................................................15
P7. Background and hinder can hinder and foster entrepreneurship....................................15
M4 Link between entrepreneurial characteristic and influence of personal background.....16
D4 Evaluation of background and experience influences entrepreneur...............................16
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
A process to design, launching and running a new business which starts from a small
business (Welter, 2011). Most of the entrepreneurs start with the small business or a small scale
enterprise to implement their business ideas in actualization. So these are based on the
entrepreneur's efforts and their understanding related to the business. This report is having focus
on the different types of entrepreneurial ventures which can be used by entrepreneurs for their
start-up and its impact on the economy of UK. Along with the description of different types of
ventures, various characteristic traits and skills of successful entrepreneurs will be highlighted
along with their impact on them. It is having different characteristic of the entrepreneurs and as
well as content on the personal background of the entrepreneurs which can be hinder or foster in
the entrepreneurship.
TASK 1
P1. Different types of entrepreneurial ventures and explanation of them to their typology
Entrepreneurship is based on the new innovative ideas and willingness to implement
them in to actualization to attain the profits or provide benefits to society (Onetti and et. al.,
2012). An entrepreneur can start their business according to business ideas and their financial
capabilities and sources which they have to start up. So, it is based on the believe on their
business ideas and their resources to execute their business activities. So, here is the description
on different types of entrepreneurial ventures and it relation with their typology:
Small business ventures: It is a suitable format to start business activities with minimum
need of finance and human resources. Most of the entrepreneurs are use this format to start their
business (Martin, McNally and Kay, 2013). It is a general type of business format which mostly
used by the entrepreneurs and also people which want to earn money with a small investment so
this is most prevalent venture. Most of the small business ventures are having relation with
Craftsman Typology, because most of the small manufacturers are used this to start their
business.
Scalable start-up ventures: These ventures are having a motive to make changes in the
vision of society for a particular aspect. Most of the entrepreneurs are having an innovative
business idea which they implement in actual market conditions which take time to sale after
target audience understand about the product and service (Leitch, Hill and Neergaard, 2010).

Skilled staff is a need of the venture to generate qualitative work to accomplish the objectives.
Innovators entrepreneur typology is related with this type of venture because most of those
people which are having a some innovative change in their product and services are plan to
enhance their standards. They want to become a successful business man.
Social ventures: A venture which is providing social benefits and not having focus on the
profits is known as social ventures. So, most of the entrepreneurs are having their creative ideas
which can be used in providing needed products and services to particular group of people.
Social ventures are having motive to provide products and services which are the need of a
particular group people (Herrington and et. al., 2010). Opportunist entrepreneurship typology is
related with social ventures because most of the people which starts their business to accomplish
social needs.
P2. Similarities and differences in between entrepreneurial ventures
Above mentioned entrepreneurial ventures are having many differences in between them
which are based on the below given points:
Difference in between entrepreneurial ventures
Points Small business
ventures
Scalable start-up
ventures
Large company
venture
Social
ventures
Mind-set Product and
service deliveries
Progress in
business
Regular increase
in profits
highest level of
customer
satisfaction
Goals Customer benefits
with minimum
profits
Customer benefits
with maximum
profits
Maximum
production of
products and
service
Total benefits to
the society
Profit generation Not having focus
on profits
Profits as per
service rendering.
changes in their
business activities
to increase their
profits and
revenues
offering better
services to their
target audience

Mind-set: Entrepreneurs are having their mind set with their business so on the basis of
the mid set, small, scalable, large and social business venture are having huge differences in
between the providing satisfaction to their customers. Social ventures are having mind-set to
deliver highest level of satisfaction to their customers and target audience rather than others.
Small, large and scalable ventures are providing products and services to make profits while,
social venture is having focus to provide benefits to society without gaining profit in return
(George and Bock, 2011).
Goals: These ventures are having their aims and objective large business are having
target to earn more according to their investment, small and scalable are having objective to
provide customers benefits with the minimum profits. But social enterprises are having objective
to provide benefits to the society (Fayolle, 2013). They are having focus to provide services to
the society which is having a need of particular services.
Profits generation: Most of the organisations are having focus on generating profits by
their business activities so, they are making targeting those markets which have potential to
return them better profits and revenues. Large business ventures are having their focus to make
changes in their business activities to increase their profits and revenues but on the other side,
social venture focuses on offering better services to their target audience (Ebert and et. al.,
2014). Changes in acts are based to provide better results to the society.
These entrepreneurial ventures are having similarities which are based on the below
mentioned points:
Points Small business
ventures
Scalable start-up
ventures
Large company
venture
Social
ventures
Challenges Small challenges
like funding
Competition Product
satisfaction
Analyse customer
needs
Changes On small level Changes in
production to
enhance customer
satisfaction
On each
management level
Changes as per
public demand

Challenges: These above presented ventures are start-ups so they are having approx same
challenges like; satisfaction and betterment of the products and services. These are based on the
skills and characteristics of entrepreneurs by which they decide to start a business in small,
scalable, large and social (Durst and Runar Edvardsson, 2012).
Changes: Ventures have to make changes in activities as per the needs of target audience
to make better products and services. All these enterprises are newly set up so they have to face
same changes in their business activities.
M1 Understanding of entrepreneurship in public and corporate sector
Ventures which need huge investment of capital and as well as of human resource to
generate production (Jones and Rowley, 2011). It is related to corporates and most of the
corporate people are using this venture to start up a new unit of their company. It is having huge
need of the sustaining innovation, random update in product and services to manage interest of
customers in it. Risk oriented entrepreneurship typology is related with this because large
company ventures are having different types of risk behind.
D1 Scope, development and growth of entrepreneurial ventures
UK government is providing full support to entrepreneurial ventures in growing up
because entrepreneurs provides support in economical growth of nation. UK government is
having their focus to develop whole UK as a entrepreneur's friendly zone which can help to the
entrepreneurs to start their own business. UK government has launched a scheme in which a
business starter can take loan from the Bank of England on less interest rates. Government is also
planning to launch a bank which is provide loans to public and private sector business to bring
them together. So according to these type of conditions UK is having a huge potentials of
growth.
TASK 2
P3. Assessment and interpretation of relevant data and statics on the impact of micro and small
business on UK economy
Small business enterprises are having huge participation in the economy cause they are
having innovative ideas to make changes in the trade and products. an organisation which is
creates a turnover less than 2 million Pounds can be consider in small scale enterprise category.
In the context of the UK economy it is having large significance to manage currency flow in the

market (Defourny and Nyssens, 2010). Micro and small scale enterprises are having different
types of impact on the economy which are:
Support to economy in growth: It is having huge support to the economy to grow up, these
enterprises are having huge market share in the private sector in the year of 2016 small scale
enterprises are having approx 99% share of the private sector's revenues. It proves that small
scale ventures are having covered most of the private sector and their deals which helps to the
economy to increases their foreign funds. Micro enterprises are has crossed £ 718 Billion in total
turnover in the year of 2016 which shows it's support in the economic growth in the UK (Dacin,
Dacin and Matear, 2010). Small scale business are having £1.8 Trillion annual turnover at the
end of 2016 which is approx 47% of the private sector turnover. So in a concluded way it is
having huge support to the UK economy and after the BREXIT is an only scope of the growth of
economy.
Providing employment: More than 15 Million peoples are working in the small and micro
business in the UK which is effectively engaging peoples in the employment. These business
structures are providing jobs more than 60% peoples of the private sector which is helping to the
UK economy to increase their Gross Domestic Production (Chittithaworn and et. al., 2011.).
Balancing economy: Geo-graphical areas where less big structured industries are working, in
those areas small and micro ventures are working effectively and providing products and
services to the citizens.
Motivating Peoples: It's motivates to the peoples which are unemployed to start their
own work and set up to earn their own profits via business activities. It supports to the economy
by engaging peoples in the financial activities (Carsrud and Brännback, 2011).
Hence, these are some positive impacts of small business enterprises on the economic
growth of United Kingdom. According to official data it is evaluated that, most of economic
growth and development has took place only because of several SMEs. As, they provides various
services to local, regional and national people. In present scenario, they are expanding their
business in international market which is helping UK in making good relationships with other
countries. Along with this, they are also helping large corporation by providing them raw
materials for their production process.

M2 Difference between small, medium and large business make to the economy
These business are having huge differences on the basis of turnover, employment, growth
which are described under below;
Turnover Small and medium business are having reduced scope compare to the large
scale business organisations in the year of 2014, small and medium
business had crossed £1.6 trillion business (Carraher and Paridon, 2015).
Employment Enterprises in which number of employees are less than 50 are counted in
the small and medium sized business. Small sized business are self owned
and mostly run by the owners by their self efforts. These organisations are
providing 24.3 Million jobs in the UK (Bruton, Ahlstrom and Li, 2010).
Growth Recession time is having huge negative impact on the large scale
organisation but after the recession small and medium sized organisation
are performing very well cause they are using their own capital in it. More
than 47% SME's were increased their business in the year 2009 (Bosma
and Levie, 2010).
Hence, these are some similarities between different entrepreneurial ventures. Apart from
this, there are also some difference betwixt small, medium and large organisation. Small and
medium companies provides their products and services to local people. So that they can fulfil
their needs and demands. On the other side, large corporation provides its services at
international and national level.
D2 Impact of small business on different level of the economy
Small business are having impact on the UK economy on different which are described
under here:
Local Level It creates a huge impact on the economy on district level, it provides job to
those which are having a connection with the SME owners. Most of the
SME's wants to recruit cost effective employees to manage the cost
effectiveness in the business activities so they are having target to recruit
unskilled peoples after it SME owner provide them basic skills to them
(Barringer, 2012).
Regional Level On this level small business are supporting to the economy by managing

rotation to make a flow and money circulation in the market. It helps to
generate a cash flow in a particular region. Most of the small scale owners
are using their innovative ideas to increase their business profits
(Awogbenle and Iwuamadi, 2010).
National Level On it's level it is helping to the national economy and increasing the Gross
Domestic Production (GDP). It is helping top the national economy to
develop infrastructure to provide more benefits to the citizen.
International
Level
Most of the small scale enterprises are exporting their products and
services in to those countries which are having huge needs of these
products and services. So it is helping to the UK economy to increase their
foreign exchange which helps to the country to increase the value of the
Pound (Alsos, Carter and Ljunggren, 2011).
Different small business enterprise have a great role in national and economic growth.
They have increased various opportunities for unemployed people. In simple words, it helps in
generating employment services for unemployed people so that they can improve and develop
their living standard. SMEs provides their products and services to local, regional and
international level. In present time, they are growing very well and also influencing positive
impact on Economic development of United Kingdom.
P4. Importance of small business start-ups to contribute growth of the social economy after
BREXIT
In the UK after the referendum for leaving the European Union it is known as a BREXIT,
it creates a huge impact on the large scale companies which are having trade in between those
countries which are having trade with the European Union (Welter, 2011). Social economy is a
type of joint ventures in between the public and private sector companies to provide more
benefits to the UK citizen. It is a type of third sector which is having an objective to provide
better facilities and infrastructure to the peoples which are living in the UK. So small business
has a huge significance in the social economy which are described under here:
Job Creator: These organisations are providing jobs to the peoples which are having basic skills
to perform business activities, cause they are having target on those types of peoples and
employees which are easily available on cost effective remunerations (Onetti and et. al., 2012).

Entrepreneurs are providing skills to their employees according to the needed skills. These are
increasing skills awareness in the society which helps to the citizen to increase their business
skills.
Innovative Thoughts: It is essential for the entrepreneurs to use their innovative mind to produce
a product and service which is having more better products and services. This one helps to the
society to use those products which is having more qualities in products and services (Martin,
McNally and Kay, 2013). As well as employees which are working in the SME can use their
innovative mind to increase the products effectiveness for their users.
Infrastructure developer: Most of the small scales business are working for those large scale
companies which are working in the public sector. So they are providing products, raw materials
and a part of the products which can be used in the infrastructure development (Leitch, Hill and
Neergaard, 2010). As the social economy is having focus to increase the effectiveness to provide
more better society to live for the citizen.
Financial supporter: As the organisations are working in the society so they are providing
financial helps to the peoples which are connected with the business. Employees are taking
salary and also they are providing credit purchase options for their customers which is also a type
of financials support (Jones and Rowley, 2011).
With the help of above mentioned points, it can be determine that small and medium
business enterprises plays an important role in social economic growth. At the time of BREXIT,
United kingdom faced various problems and difficulties. But because of continuous growth of
small companies this nation have overcome its all problems and difficulties. SMEs helps in
fulfilling needs and demands of local people. Also, it provides its products and services to large
corporations so that they can operate their business activities and practices in effective and
systematic manner. All these aspects, influence a positive impact on economic growth of UK.
TASK 3
P5.Characteristics, traits and skills of two successful entrepreneurs which differentiate them to
business manager
Entrepreneur is a person who start the business and he take a risk in improving or
developing the business (Herrington and et. al., 2010). Along with this it helps in capturing the
opportunities and by that they can make correct decisions for the betterment of company.

Entrepreneur have to take more risk for producing more product and by that they can earn
maximum revenue. Along with this it helps in evaluating and controlling the business activities.
One entrepreneur is Mark Zuckerberg is a person who provide famous application namely
Facebook. It is a application which helps in connecting people in the whole world. Via Facebook
every person can share their photos as well as videos. Along with this it helps the business
entities in promoting their products and services (George and Bock, 2011). Another entrepreneur
is Bill Gates which is a co-founder of Microsoft company and also recorded as a richest person
in the whole world. The main characteristics are:
Mark Zuckerberg characteristic, traits and skills
characteristic traits skills
Hard worker Mark has made many changes
in his Facebook app after
launching this app which
shows that he is zeal to use
different effective and
innovative ideas in Facebook
Aggressive leadership for
regular change
Pupil Enhance use of team working Front leader to show how to
create change
Communicator Logical in his work Belies in the participation
leadership in making effective
decisions for Facebook
Use feedbacks in his act in the
Facebook
Believes on implementation
Mark Zuckerberg is aggressive in his work which makes him different from managers
because managers works in a criteria and not having much determination towards their work as
compare to this aggressive leadership. Zeal in his works make him better to attain his goals and
differentiate from managers.
Bill Gates characteristic, traits and skills
characteristic traits skills

Vision is the main
characteristic of Bill which
makes him better.
Bill has get many failures in
his business but he learnt from
it make some effective change
which helps to overcome in
Microsoft.
Bill is futuristic in his work
and Microsoft working on the
future needs of computers
operating system.
Passion is another which
developed his company
Microsoft.
Bill never open his plans in
front of others which shows
that they are smarter.
Highly determine to attain
objectives because they are
believes to defeat high
competition.
Bill is highly focused to defeat competition because he has a curiosity in his mind to be
successful in his sector, this trait made him better from manager because managers are having
focus just to manage things with a particular framework. Bill is a learner which learns many
innovative things by his failures which makes him successful in his career.
Innovative: Both the entrepreneur are innovative and have to use innovative skills so that
they offer and deliver best merchandise which helps in attaining goals and objectives.
Disciplined: Both the entrepreneur have to focus on their targets so that they can
accomplish and also distractions to their goals. Entrepreneur have to plan all the things along
with this they have to use appropriate strategy and tactics so that they can accomplish and
achieve them.
Open minded: Both the entrepreneur are open minded and also having innovative
thinking by which they can generate new ideas which helps in improving knowledge and skills
and learn new things (Fayolle, 2013).
Motivation power: For becoming most powerful and successful entrepreneur, it is very
much important to have motivational skills. It is very much important for mangers to motivate
their employee in effective manner so that they can contribute more in organisational success.
Risk taking: Without taking risky decision, no enterprise can grow and develop their
business. So it is very much important for mangers to take risky decisions so that they can
achieve high level of success.
Mark Zuckerberg and Bill Gates both are self motivated and have to put more efforts so
that they can attain goals and objectives.

Entrepreneur and managers are having huge difference, entrepreneurs are having ability
to take more risks to make more profits on the other side managers are having capabilities to
manage their responsibilities and duties by generating production by the employees (Ebert and
et. al., 2014). Most of the entrepreneurs are using their business ideas to increase the product
effectiveness and they implement new ideas but managers are running their business activities on
the management methods.
M3 Arguments relating to the entrepreneurial characteristic
Mark Zuckerberg is a world famous name in the world which gives a virtual world of
Facebook, it is an application which provide a plat form to communicate with unknown and
unknown persons (Durst and Runar Edvardsson, 2012). It is an example of the innovativeness in
their thoughts by which they create a product in short age of 20 years. So this shows their
innovative thoughts for new ideas which can be useful for the public cause. Now peoples are
feeling connected with their friends and family by using the Facebook. Bill Gates is an another
name which is known as a entrepreneur and now he is the richest man of the world. This shows
their self motivation and learning from their drawbacks which makes them more stronger on
their conflictual points. For better growth and development of organisation, it is very much
important for entrepreneurs to have some unique characteristics, skills and abilities. So that they
can resolve each and every work related problems. All entrepreneurial traits can be taught
overtime. Mangers got them from their birth.
D3 Characteristic traits, skills and motivational drivers of successful entrepreneurs
Mark Zuckerberg is having a characteristic which is vision and analysis of the peoples
needs by which they can make a product like: Facebook (Alsos, Carter and Ljunggren, 2011).
Their friends group plays a role of motivational driver top make this product for public use, in
the first they has created a messenger on the college level to make chats in between the friends.
Bill Gates are having two characteristic which is leadership and learning from their drawbacks, it
helps to them to make their product more better as per the needs of the customers. As they have
made Microsoft Window which is a operating system it has a huge need to develop it as per the
needs of the users. Without effective skills and abilities, no business manger can face their
organisational problems and situations. Mark Zuckerberg have also faced various difficulties in
starting days of its career. But due to his unique skills and abilities he have resolved all those
problems. Entrepreneurial personalities can also other people with their skills and abilities.

P6. Assessment of aspects entrepreneurial personality which reflect on the motivation and
mindset
Entrepreneur possess the ability to operate various activities of business. They have to
make profits and for this they need to take risk in order to maximize their profits. Other than this
there are many other characteristics which they possess. A good entrepreneur requires to have
several features which frames an unique image of them in front of the world. The entrepreneur
who are working in the industries can act like an ideal for those who are going to step in the
market through their start up. As they feel motivated and they can learn a lot of things from their
seniors. Motivation improves the skill of a person further it improves his productivity. Better
business tactics can be inferred from various entrepreneurs who are at present become great
leaders and impressive innovators (EntrepreneurshipDrucker, 2014). Mark Zuckerberg and Bill
Gates are can be remarked as one of the most successful entrepreneurs as they have started their
business with a small idea and a basic amount of money as capital but now Facebook and
Microsoft are one of those names which are famous among every age group of person and
beyond every geographic boundaries Different entrepreneurial personalities can motivate other
people to engage in entrepreneurship. Mark Zuckerberg and other successful business person can
inspire other persons by sharing them with past life experiences and incidents. Also, general
people like to follow those powerful person who have achieved grate success in their
professional life. Hence, it can be said that entrepreneurial personalities helps in motivating
others. For becoming most successful individual, it is very much important to have positive
thinking and mind set.
Facebook application takes regular feedback of it's users which is an innovative thing
implemented by the Mark in this application. It helps to him to get views, problems of FB users.
Mark is highly believe to make changes which motivates him to work better which helps to
develop a better error less application for users. He is highly motivated to make changes which is
reflected by the regular changes in his application. It motivates him towards his work and it also
helps to FB users to keep their interest in it (Dennis Jr, 2011). He has developed a messenger in
earlier school life and after he develop a newer version in higher schools and finally he
developed it as an application for global people. It shows that implementation is a factor which
motivates him to make things better and more better.

Bill Gates and Steve Jobs both were friends, when Steve got success in his company
Apple that time Bill was not got successful in his products. Bill has a jealousy with the success
of his friend so he abandoned his family members to use Apple's products. he has converted their
jealousy in the competitive feeling which motivates him to work better in his field and here in
the result he is richest person of world. He has a personality characteristic that he does not want
to be failed in competition which makes him better.
TASK 4
P7. Background and hinder can hinder and foster entrepreneurship
Experience and background of a person creates an effective and vital impact over the
entrepreneurship (Defourny and Nyssens, 2010.). There was some business enterprises in early
nineties which created huge impact over the background and history of their business. Better
execution of ideas through an impressive entrepreneur can lead to success of business entity.
Background assist an entrepreneur in thinking towards the progress of his or her business. They
can increase the level of thinking as well as they can also work towards new ideas. If
entrepreneur of a business entity which is categorised in small scale sector then if he or she had
faced some financial crisis then it will surely effect its business activities till next few years.
Hence better experience and better background can be helpful for a businessperson who have just
started his or her business. Further it will also help a business man to get better execution of his
or her ideas as they are aware of the results of every steps (Dacin, Dacin and Matear, 2010).
Some factors are here which can work as hinder and foster in entrepreneurship;
Education: It is a factor which has a huge impact on the entrepreneurship, it helps to deal with
the situations and develops a person to manage challenges. If a person who is educated and
wants to start his business can implement his education like; a student of marketing can
implement different marketing theories in his entrepreneurial venture to become successful.
Education is a factor which foster to entrepreneurship and to develop a successful entrepreneur.
Family: it is a major factor which works on the entrepreneurship, families motivates to person to
start their own business and take market risk. But many families does not allows to his family
members to take risk of business. So a risk taker family can work as a foster to become
successful.

Experience: work experience is subject which makes a person more fine in his filed, in the case
of entrepreneurship, a person who starts his own start up venture having more chances to become
successful as compare to inexperienced.
M4 Link between entrepreneurial characteristic and influence of personal background
Entrepreneurial characteristic and personal background is having huge link and they are
having huge impact on the entrepreneurs. As Mark Zuckerberg is having education in the
computer system and they are having a grip in the computer software from their childhood. So
they are having depth to analysing the functions needs. Still they are working on their analysis to
create their product more better. Past experience and background of people can foster and hide
entrepreneurship within them. For an example, if a child have businessmen father, then definitely
he will start a new venture or help in family business in his future.
D4 Evaluation of background and experience influences entrepreneur
According to (Delgado), background and past experience of a person influence him to
engage in entrepreneurship. Bill Gates has dropped out from the college cause financial problems
to pay the college fees. So they are having target to be more successful and to be rich which they
achieve by using their entrepreneurial skills (Chittithaworn and et. al., 2011). So background is
having huge influence on the entrepreneur's objectives and target for their future which motivates
them to achieve it. On the other side, if a person have negative experience of a certain task, then
he will try to avoid that task in future.
CONCLUSION
The above concluded report is having focus on the entrepreneurship which is helping to the UK
economy to increase their foreign funds and as well as it is reducing those factors which is
decreasing the effectiveness of the economy. Entrepreneurship in the small business are
providing jobs to the unemployed peoples. Most of the entrepreneurs are having innovation in
their products and activities to make their products more better as per the needs of the customers.
Innovative development in the business activities are providing more jobs in the UK and as well
as it is increasing motivation in the peoples which are unemployed.

REFERENCES
Books and journals