Factors Influencing Entrepreneurial Success

This assignment examines the various factors that contribute to entrepreneurial success. It delves into the significance of OCEAN personality traits (Openness, Conscientiousness, Extraversion, Agreeableness, Neuroticism), the role of family upbringing in shaping business aspirations, and the influence of cultural norms and societal expectations on workplace relationships. The analysis also highlights how education, skills, past experiences, and economic stability impact entrepreneurial ventures.

ENTREPRENEURSHIP

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Entrepreneurial ventures and relation with typology.............................................................1
P2 Difference and similarities between different ventures.........................................................3
TASK 2............................................................................................................................................5
P3 Impact of micro and small business on economy..................................................................5
P4 Importance of start-up and small business towards achieving growth in economy..............8
TASK 3..........................................................................................................................................10
P5 Defining characteristics skills and traits of successful entrepreneurs.................................10
P6 Entrepreneurial personalities reflects motivation and mind set...........................................10
P7 Background and experience of persons can hinder or foster relationship..........................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneurship is an act in which persons develop new and innovative ideas in order to
execute their business operations. They make use of all the resources which are available in
economy in planned and effective ways in order to establish their business at small scales. These
business acts are very helpful in order to provide employment to large number of people so that
they can earn money and fulfil all the basic necessities of their life (Dacin, Dacin and Matear,
2010). The present report is based on various types of ventures related with enterprise and
similarity and differences index among them, benefits of small scale business in economy, Skills
of persons who are becoming successful in their ventures, personality factors have reflection on
motivation factor and lastly personal background hinders or foster relations of employees at
work places.
TASK 1
P1
Entrepreneurship is an act in which individual develops their own ideas to establish their
own business at smaller scales in economy. These can also be called as start up business. Risk
factors are very high in relation with management of availability of resources and funds in order
to execute their business operations. Various plans and policies are adopted in order to execute
their working in planned and effective ways. Their main objectives is to increase profitability
factors in order to achieve success at market place (Delgado, Porter and Stern, 2010).
Entrepreneurial ventures are related with developing effective services for those business
who are running their operations at small or start up level in economy. These ventures are
focusing on spending their precious times in order to achieve success in their business
operations. They are having the main responsibilities in order to arrange funds for various
activities, developing strategies for sales activities, evolution of new ideas, recruiting of potential
employees who can increase profitability and feasibility analysis in performing business
activities.
Various types of ventures are described as:
Small business ventures: They have established their business activities on smaller
scales thus the number of employees who are involved in business operations are also limited.
They are not able to expand their business on larger scales due to insufficient amount of money
1

and availability of resources. As activities are performed on smaller scales thus their profitability
and revenue factors are less while making comparison with large business operations. The owner
is an individual person and all their acts are carried out in sole proprietorship where the business
activities are shared among people generally referred as partnership business. Their is huge risk
faced in purchasing new and innovative machinery for executing business operations and
difficult is faced in arranging funds for different activities as business is executed at smaller
scales.
Large business ventures: These business are performing their activities on large scales
in economy thus providing employment to huge number of persons so that they can easily fulfil
the basic necessities of their life. This is valuable in achievement of higher profits thus increased
in revenues. If the firms adopt strategies in order to further expand their activities at international
levels, this will results in achievement of higher profitability scales. If there is recession in
economy then business have to face risk as all their business operations will stop thus their
profitability ratios will also decline.
Lifestyle Entrepreneur: These types of ventures are concerned with lifestyles of people
who are operating in economy (Gerhardt and Lainer 2011). They are not focusing on generating
high profitability but are centring towards increasing living standards of people. This is valuable
in executing all business activities in effective and planned ways.
The aims and objectives varies from each other. It can be said that all persons are not
similar in terms of skill and abilities thus they execute business operations accordingly.
Various types of entrepreneurial ventures and their relations with topology are described as:
Serial entrepreneur: These individuals are developing innovative ideas in order to start
their new business activities. They are developing plans in order to distribute roles and
responsibilities equally among all employees in order to develop healthy work environment.
They are developing innovative ideas in order to grow their business transaction, there can be
depressing situations when new ideas were not able to produce effective results which helps in
growth and development of economy. If the business on adopting similar ideas for long run then
it results in achievement of growth for business operations.
Example of social entrepreneur is Oprah Winfrey.
Female Entrepreneur: These ventures are focusing on achieving self assertive growth in
order to adopt new technologies by which they will execute their business operations. This
2

results in achievement of higher growth for business. There main objectives are linked with
providing equality in distribution of works among male and female workers so that women can
easily achieve success in their life. This is valuable for them in order to grow and become
successful in their ventures.
Example: The firms who were focusing on establishment of women enterprise at UK was
Adafruit Industries.
Social entrepreneurs: These persons are working in order to satisfy wants and need of
people in society. They execute in providing quality services to each persons who are involved in
performing business activities. They are mainly concerned about evolution of whole society and
welfare of individuals in order to achieve growth and prosperity in their ventures.
Example: The first social entrepreneur was Florence Nightingale.
Scope of entrepreneurship are evaluated as:
Small business operations are very useful for achieving growth and improvement in
economy. There are different opportunities opened for them as they can easily expand their
operations at national and international level. This is the main reasons by which firms can easily
attain higher profits, larger efficiency in productivity and their turn over are also less while
making comparison with other firms (Stern, 2010). Small business are divided into following
areas which are described below as:
Industrial sector: The business which are operating at smaller scales helps in achieving
growth for overall economy. They are mainly focusing on growing industrial sector. This is
valuable in gaining larger shares which is larger then 50% in Gross sector linked with farming.
Agriculture Sector: There is higher value of generating profits in this sector. The
individual who are living in rural areas are mostly involved in farming and agriculture business
because they are having land where they can easily grow crops and sell them at market places
and earn their livelihood.
Service sector: As there are changes in technology development, thus this sector is of
greater importance to people of society. The services can include hospitality, tourism etc.
P2
The difference and similarity among various types of business ventures are described
below as:
Large and small scales ventures: Difference:
3

Large firms are running their operations at
larger scales in economy and they can easily
expand their operations at international level in
economy. While small business are executing
their activities at small scales in economy thus
profitability is also low (Morris, Kuratko and
Covin, 2010).
The risk factor in small business are low and
larger business are having high risk.
Similarity:
Both business are working in order to achieve
higher profitability ratios and they aimed at
providing high quality services to all their
potential customers.
Private and joint ventures: Private enterprise are running their business
independently and they are called as owners
who owns the business operations. In case of
joint ventures persons are running their
activities with other firms who are dealing in
same business and their profits are equally
distributed among both of them. The risk
factors are very high in executing business
operations.
Similarities:
Innovative ideas are evolved in order to
achieve goals and business objectives.
Lifestyles and serial ventures: Difference:
The main focus of lifestyle ventures are related
4

with making modifications in lifestyle of
people the way they are living their life and in
turn development of total society. They make
plans in order to increase performance of all
their employees who are involved in business
activities (Naudé, 2010). While serial ventures
are having different aims they want to stabilise
their business activities. After achieving this
aim they are further selling their activities to
other persons in economy.
TASK 2
P3
The size and operations of small scales business are small and they have employed less
than 20 people who are involved in their business operations. The profit and revenues earned
from business activities are also less while making comparison with larger business. The factors
linked with risk in terms of finance are also less as their operations are carried out at smaller
scales in economy.
In small business activities there are low employees performing operations. They have
established their main aims which are related with development of innovative ideas in order to
execute all their business operations in planned and effective ways. These business consist of
smaller hotel operations, grocery stores, restaurants and photography working.
The activities which are running by small and micro business are mainly controlled by
private owners and sole proprietorship. This is valuable in increasing life style of people, they
are also providing employment to large persons and this will help in enhancing employment
ratios in economy. These business which are operating at small scales are helpful in generating
innovative ideas thus contributing towards growth in economy. This is beneficial in enhancing
income level of people in overall economy in order to achieve development in economy.
The implication of micro and small business which are operating at domestic and
international levels are described below as:
5

Job Creator: If firms are developing innovative business plans in order to execute
business operations then it will help in providing jobs to large number of individuals who are still
unemployed. These business will involve persons so that they can easily carry out business
activities and focus on expending their operations at various levels in economy. These persons
are focused on executing their assigned work by using their skills and abilities in order to grow
and achieve their desired targets. If training is provided to their new employees then they will get
an ideas about different ways by which working can be executed effectively. This factor is
valuable in achievement of growth and development in economy thus performance ratios can
also be increased which is needed in order to gain competitive advantages.
Modification in employment: As there is existence of micro and small scale business in
economy, this is valuable in developing job opportunities so that individuals can fulfil their basic
necessities of their life and contribute in increasing employment ratios. This implies that poverty
factors will be removed from economy and lifestyle of people will also be changed. This is
beneficial in achievement of success factors if the firms are making efforts in order to expand
their activities at international levels (Neck and Greene 2011).
Future growth and development: If new ventures are established at business then it helps
in development of economy so that they can easily increase their production factors in order to
achieve growth.
Example: Government made plans and strategies in order to solve the problems at times
when Brixit from UK was greatly affected by the operations of micro and small business
operations. Thus governments are assisting in order to helps there business by giving them
financial helps so that they can easily perform all their business activities in effective ways and
achieve desired targets.
Adaptability: If the firms are focusing on adopting new and innovative technologies then
it results in achievement of growth and enhancing production level in economy. Firms will be
focusing on manufacturing quality products in order to gain their sales ratios. Thus products are
developed according to choices of customers. The pricing strategy developed for the products are
also economical in order to increase their profitability.
6

(Source: Micro and Small Business, 2017)
The above graph states that small and micro business are continuously contributing
towards development and prosperity of economy. There growth in economy are growing on
continuous basis which is an indicator of achieving prosperity towards the economy. The
development of small and micro business have continuously achieving success from the year
2010, which is an indicator of growth factor. Their was high employment in economy in the
year 2015, due to this factor poverty was removed from economy thus people were able to fulfil
basic necessities of their life. The business are classified into small medium and large according
to the size of their operations and investment they can made in economy.
According to above data there was growth in economy because economy was constantly
achieving growth towards prosperity and development in economy.
The limits set by governments for firms so that they can make investment in service and
manufacturing sector which are described as:
Manufacturing Sector Service Sector
Micro enterprises
7
Illustration 1: Micro and Small Business

Micro enterprises
Investment can be done till 25 Lakhs
Small Enterprise
Investing in business are made between 25
Lakhs to 5 crores.
Medium enterprise
Investment within limits of 5 to 10 Crore.
Investment limits to 10 Lakh
Small Enterprise
Investment in between 10 lakh to 2 crore.
Medium Enterprise
Investment can be made upto 5 Lakh.
Characteristic of business are described below as:
Partnership: In this business two or more business partner agree to combined their
businesses operations and their overall profits will be divided among both the partners.
Sole proprietorship: In this business an individual person is the owner and he responsible
for the loss and profit factors and it the company is not registered then they can invest their saved
money into business operations.
Areas of the economy that the impact of SME’s
The areas which have impact on small business are
Agriculture sector: It impact on small business because most of the farmers are running
their operations in this sector and growing crops.
Employment Generation: These business are developing job opportunities for people so
that individual can easily live their livelihood and access to basic necessities of life. This is
valuable in relation to achieve success for growth of economy.
P4
The small business are executing their operations at smaller scales in the economy. They
are constantly focusing on achievement of growth factors and welfare of the whole society.
These business are established with aim to promote welfare of economy rather then maximising
profit ratios.
8

All the start up business are newly developed business and they are having their
operations at lower scales in economy (Plaza, 2011). Their main objectives are related with
development of innovative ideas in order to expand their business activities and achieve growth.
Difference among start ups and small business operations are described below as:
Small Business
Small business which are already performing
their operations in economy but at low levels.
Quality goods and services should be given to
their potential employees.
Small business does not need more finance as
they have already established their ventures.
These firms requires skilled people who can
perform all the business operations effectively.
Example of small firms is badger mining and
Austin Fraser.
Start up business
Start up business operations which are
developed because of innovative ideas and they
are focusing on expanding their operations at
national and international levels.
There are various strategies adopted in order to
create awareness about new products so that
customers can easily purchase them.
More finance is needed by start up firms as
they are newly executing business activities
and purchasing machinery in order to perform
their operations.
They are getting help from government bodies
so that they can remove poverty ratio from
economy and achieve growth.
Example of start-up firms are Bizzby and
Sendmybag.com
The main focus of small business is linked with making improvements in quality of goods thus
higher sales ratios can be achieved. If they succeed in their business then it helps in development
of total economy.
Example: When EU was separated from UK at that time many firms who are operating at smaller
scale scales had to face many difficulties like their production process was affected thus affecting
their profitability factors. In order to solve this problem government developed various
strategies and plans so that impact from economy can be reduced.
9

The benefits of start up and small business towards growth of economy are evaluated as:
Innovation by applying new technology: It is an essential element in order to execute all
their business operations in planned and effective ways. Innovative ideas are generated in order
to produce effective results. This factor is valuable in enhancing sales ratios so as to achieve
proficiency at work place.
Level of Spending: If there is employment in economy and people will be offered job
then they importance as in other parts of the world.
Economic and social development
Reduction in poverty, wealth distribution,
employment, provision infrastructure and social
amenities
More revenue to government, taxes, f oreign
exchange gains
Improve UK economic growth (acceleration)
Improvement in social security.
Improve UK international trading.can easily live their livelihood in effective ways. They will
spend more money which results in growth and development of economy. If the purchasing
power of individual is high then it results in changing their living styles (Rikli and Jones, 2013).
Economic and Social Development: Business have also contributed towards economical
and social development by organising various activities which are useful in achievement of
growth and prosperity factors in economy. Opportunities are defined as paths which are
beneficial in increasing living standards of people residing in economy.
10

TASK 3
P5
Entrepreneurs are the persons who have established their own business operations and
they are focusing on achievement of growth and benefit for economy. There is high risk factor
involved in performing business activities and innovative ideas have to be developed in order to
execute their business operations at international levels. Enterprise are also referred as good
leaders as they are making their employees responsible by giving them targets which they had to
achieve.
The most successful entrepreneurs are Jeff Bezos and Mark Zuckerberg
Mark Zuckerberg: He was a successful entrepreneur who invented a social networking
site which was called as face book. He made this site so that people from overall world can be
connected with each other and they can easily share their taught and views.
Jeff Bezos was the founder of Amazon which is an online site whereby people are
purchasing goods according to their choice and preferences. This idea was developed as people
were busy in their life and they were not having time to go at retail shops and purchase products.
Both these persons were successful in their ventures and they were having differential
skills and traits which are described below as:
Risk Taking: The entrepreneurs are having ability to take risk while performing their
business operations. Risk can be related with arranging finance or downswing in their sales
ratios. This factor is valuable in order to make persons achieve success by learning from these
difficult situations (Greene, 2011).
Decision making skills: The entrepreneur are having abilities to take right decision which
is beneficial for the overall economy and increasing productivity factors.
Effective communication skills: They should have the ability to easily make
communication with their employees in making them understanding how work had to be
completed in order to achieve their targets.
P6
The two flourishing entrepreneur which are already discussed above are very beneficial
for economy as they are inspiring other people to establish their own business and achieve
success. This is valuable for persons as they can become leaders of their own established
11

ventures. There are many risk faced by them at the time of executing business activities but this
helps them to grow by learning from these difficult situations.
 The skills of Mark Zuckerberg and Jeff Bezos are described below as:
 They have positive attitudes by which they execute all their business activities.
 They have made strategies in order to achieve goals and business objective in planned
ways.
 They are always motivated from working of other persons and focusing on development
of ideas which can be applied in their business operations.
The personality dimension of entrepreneurs are described below as:
O: Openness is described as strong and achievable curiosity of persons which is related
with novelty factors.
C: Conscientiousness is described as quality of person who is goal oriented and
disciplined in performing their business operations.
E: Extraversion is the state which reflects higher degree of talkativeness and
assertiveness.
A: Agreeableness is the state of person where he is cooperative and do all his work in
systematic and planned ways.
N: Neuroticism is described as degree of anxiety control and economic stability
conditions.
Family upbringing: It states that many people are inspired by their family members in
order to execute their own business. They believe that person should not work under pressure
they should be free to work according to their wishes in order to achieve success. Family is also
helping by providing financial assistance in order to run all their business operations in effective
ways.
Cultural: Each person of the society is having wish in order to execute their working
where there is no cultural difference and all the people are treated with equal respect. This also
helps in brining equality at work place.
The five main dimensions are explained with the help of OCEAN acronym as:
12

P7
These are the important factors which are useful in hindering or fostering relations of
people ta work place like level of education, traits, skills and cultures which are followed by
people.
If persons are educated in society then it results in achieving growth and removing
poverty factors because persons will be developing new and innovative ideas by which they can
achieve high profits. If persons are not educated than it results in fostering their relations.
Society can also be a reason as persons are having direct impact by the society in which
they are living. If the people of economy are educated and showing respect then it helps in
gaining inspiration for other persons to live with peace and harmony. This helps in building
strong relations among people (Welter, 2011).
Family is also helpful in order to achieve growth by helping them to grow their business
activities in effective ways as they are financially helped by their family. This is also an
motivation factors because if their family are not aiding them in difficult times then they will be
demotivated by this situation.
Past experiences can hinder or foster relations because if persons are having good
experience in their past times then it helps in motivating them to work effectively in future times.
This is also valuable in order to generate innovative ideas by which business activities can be
easily carry forward.
CONCLUSION
From the above report it can be concluded that entrepreneur are taking huge risk while
developing and planning out activities for business operations in order to achieve higher profits.
Business can achieve growth in short run if businessman are using their skills and ability in order
to achieve desired business aims and defined objectives. Small business activities are helpful in
providing employment to large persons thus removing poverty ratio from economy. Traits and
skills are very useful in order to achieve success in business operations.
13

14

15

16