Entrepreneurship and Business Management1

The present assignment gave detailed info on entrepreneurship and the various sorts of entrepreneurial enterprises, including scalable, small, medium, and large-sized initiatives, lifestyle businesses, and small, medium, and large-sized ventures. The project also included the characteristics of a successful entrepreneur as well as the impact of society, education, and family on an individual's entrepreneurial mindset.

Entrepreneurship and Small Business
Management
1

TABLE OF CONTENT
Abstract………………………………………………………………..page3
Introduction…………………………………………………………….page4
Task 1
P1…………………………………………………………………………page5-8
P2…………………………………………………………………………page8-12
Task2
P3…………………………………………………………………………page12-14
P4…………………………………………………………………………page15-17
Task 3
P5……………………………………………………………………….....page17-20
P6……………………………………………………………………….....page20-22
Task 4
P7……………………………………………………………………….....page23-24
Conclusion……………………………………………………………....page25
References……………………………………………………………….page
2

ABSTRACT
The current assignment provided detailed information regarding entrepreneurship
and the types of entrepreneurial ventures such as lifestyle venture, scalable, small,
medium and large sized ventures. In addition, the contribution of small and medium
enterprises in the economy of the UK is also discussed. These small businesses are
a major revenue generating source for the UK economy and give opportunity to raise
the living standards of the people by providing ample employment opportunities in
different sectors. The assignment also discussed the qualities which a successful
entrepreneur possesses and the influence of family background, education and
society on the entrepreneurial mind-set of an individual.
3

INTRODUCTION
Entrepreneurship is the process of starting a new business where entrepreneurs
invest resources to develop a business. These businesses are vital for the growth of
the UK economy and are capable to provide a variety of direct and indirect livelihood
opportunities on a large scale. Every multinational company started as a small
business. In fact, 99% of all the businesses in the UK are small and medium
enterprises. The current assignment will discuss different kinds of small and big
business and their role in supporting the growth of the of the UK economy. The
assignment will also discuss the qualities which make a business person successful
and what is the role of family background, society and education of an individual on
the entrepreneurial mind-set.
The term of entrepreneurship can be defined from the’’ entrepreneur’’ that is
someone who carried out tasks and taking the business venture.in 18th century a
business became a part of life style in Europe. The early economists John Baptiste,
John Stuart Mill, defined various skills for an entrepreneur being responsible for high
productivity, earn profit and risk taken, all this in order to control the organisation.
As a trainer in the restaurant organisation, I am going to conduct different training
sessions as a part of the final selection. In this case I will demonstrate higher level of
thinking skills by encouraging questions, using problem solving strategies and
applying the connect concept. I choose to use this strategy as I found it effective for
my organisation because everyone can be aware of the relationship between the
information which has been given and their prior knowledge.
I will define from the beginning what entrepreneurship is and I will explain different
types of entrepreneurial ventures by giving examples of micro, medium and large
organisations. Also I will describe the characteristics of being a successful
entrepreneur, general traits and what skills will help to succeed.
.
4

Task 1 - Explore and illustrate the range of venture types that might be
considered entrepreneurial.
P1: Examine different types of entrepreneurial ventures and explain how they
relate to the typology of entrepreneurship.
1. Define entrepreneurship.
Entrepreneurship is the process of creating a new economic activity. This activity
may be based on a creative idea of an individual which he wants to exploit in order to
gain economic benefits. An entrepreneur takes a risk by investing his personal
resources in a new business venture; this risk-taking capability is the key personality
trait of an individual to become a successful entrepreneur. The globalisation of
economies has provided new business opportunities and it motivates entrepreneurs
to explore new markets (Drucker, 2014). The entrepreneurship spirit has provided a
number of useful innovations to the society and opened a new door of opportunities.
Entrepreneur is a person who starts an enterprise. The process of creation, including
originality, capabilities, skills and difficulties is called entrepreneurship. Entrepreneurs
are known for thinking outside of the box. Creative thinking can take a smart,
capable business owner to another level of success.
Entrepreneurs:
CHARACTERIZED BY BEHAVIOUR
 Discovers and exploits
opportunities
 A creator who initiates
and motivates the process
of change
 Accepts risks
 Uses intuition, is alert,
explores new business
 Identifies business opportunities
 Leadership, initiates
new ways of acting
2. Explain what is involved in entrepreneurial activity and enterprise
5

Entrepreneurial activity is an effort of an individual to derive value out of an
innovative idea. This idea may be about exploring new products in a new market.
Entrepreneurial activity is the basis for the growth of any economy and it provides
useful business innovations which are able to make radical changes in the society.
The entrepreneur activity is fuelled by the capability of an individual to take the risk
and see the long-term prospects of a business idea.
Entrepreneurship is an essential element for economic progress as it manifests its
fundamental importance in different ways:
a) By identifying, assessing and exploiting business opportunities;
b) By creating new firms and/or renewing existing ones by making them more
dynamic;
c) By driving the economy forward –through innovation, competence, job creation-
and by generally improving the wellbeing of society.
Entrepreneurial activity involves all the efforts of the individual to start a new
business in order to turn ideas into reality. This activity is driven by the passion of an
individual which keeps him motivated even in the time of difficulties.
3. Identify different types of entrepreneurial ventures by considering
entrepreneurship in a corporate or public sector context.
Micro/small organisations
Micro and small business enterprises in the UK are those small businesses that have
less than 50 employees and the annual turnover is not more than 10 million GBP.
These small businesses comprise about 99% of all the business in the UK and have
a great importance in the economic development of the company. These businesses
are the backbone of the UK and the government provides different loans and
advances for starting a new business or for up gradation of technology in the
established businesses. Almost half of the population of the UK is employed in these
small businesses (Jóhannesson, 2012). For example, Hakim group which is a group
of independent opticians and was established in 2001 has grown very rapidly and in
2108 it has been awarded as the best small organisation to work for. (Hakim Group,
2018)
6

Medium-sized organisations
Medium size organisations in the UK are those business units which do not employ
more than 250 people and the business turnover is 50 million GBP. These
companies work in different sectors of the economy such as manufacturing,
construction, real estate, transportation, accommodation, food services, finance and
insurance, education, social work, agriculture, fishing, arts and entertainment. These
organisations provide livelihood opportunities to about 12% population of the UK.
Vodafone Group is a multinational telecommunications in London who operates
globally with 516 millions of customers. (Vodafone Group, 2018).
Large organisations
Large company entrepreneurship is only 0.1% of the total businesses in the UK but
these organisations provide employment opportunities to around 40 % people in the
UK (Sawang and Unsworth, 2011). These large companies often work on a global
level and the organisational structures of these companies are well defined and each
department works in a professional manner to achieve the long-term goal of the
company. These organisations also spend a considerable amount on marketing
activities on an average of around 2% of their expenses of these companies are
dedicated to the marketing activities. For example, Unilever is a large organisation
which is based in the UK and offers its services in food, beverages and personal
care products. It has 169,000 employees and is present globally in 190 countries.
(Unilever, 2018)
Micro-enterprises Employees less than 10 and turnover, not
more than £2 million
7

Small-scale enterprises Employees less than 50 and turnover, not
more than £10 million
Medium scale enterprises Employees less than 250 and turnover,
not more than £50 million
P2: Explore the similarities and differences between entrepreneurial
ventures.
1. Explore and illustrate the range of venture types that might be
considered entrepreneurial giving different examples (you may
consider the points below. Small Businesses (independently owned)
 Lifestyle Businesses (freelancers and MicroEnt)  Social Good
Organisation/Businesses  Large Enterprises (established
businesses)  Scalable Startup (high-tech (Angel Investors)  Second
Stage Company (viable independent).
Small businesses (independently owned)
These small businesses are launched on the basis of expertise of the person in a
specific field or a business idea which has future revenue generating capacity. The
capitals for these businesses are generally managed by these entrepreneurs at a
personal level from friends and families. Angel investors are also helpful in providing
an initial fund for small businesses. The variety of business come under small
business, these businesses include resident lawn care, salons, financial consultants,
small coffee shops and internet cafes (Mazzucato, 2015). These small businesses
play a great role in strengthening the local economy and linking the communities
which help in sustaining the economic and social relations among communities. For
example; Car Wow is a small company which is an online market place for car
buying. It was launched in 2013 and has become quite popular company to buy cars
online.
Lifestyle ventures
8

Lifestyle ventures are business start-up which is aimed at establishing a balance
between work and personal life. These organisations are not intended to achieve a
high growth rate in the business, but on the satisfaction that a person obtains by
following his passion. The funding for these business ventures is managed by the
individuals on a personal level. A number of Coffee and tea shops in the UK, as
Costa and Starbucks, are located in market towns and other picturesque locations in
countryside towns which give ample time to the owners to enjoy their personal along
with the business.
Social good organisations
The social entrepreneurs focus on solving a specific problem with the help of
entrepreneurship. For example, in Bangladesh, the banking model of providing small
loans to the people minimum interest has improved the social condition of the people
and helped to make these people self-dependent. These organisations do earn
profits but the sole purpose is not to earn profits but to provide innovative solutions to
make the day to day life of the people easy (Short, et al. 2010). The message trust,
Stafford & rural homes, and Fairways are some of the largest social good
organisations working in the UK.
Large enterprises
Large enterprises are defined as those organisations which have more than 250
employees and the turnover is more than 50 million British pounds. These
organisations are small in number but make a large impact on the economy of the
country. Large organisations manage the organisation in a professional way and
often expand their operations in a new market to explore new business opportunities
overseas (Katongole, et al. 2013). Due to global operations, these organisations
have to face a number of political and economic factors which influence the decision
making and the profit-making capability of these organisations. For example, Tesco
is a large organisation based in the UK. It has 476,000 employees working at
different stores located all across the country.(Tesco,2018)
Scalable start-up, high tech, angel investors
9

These companies start small organisations but have the capability to scale up the
business in a short interval. Looking at the potential of the business idea, an investor
may also come up to arrange the initial funding for the project. These companies
have a set most talented individual a come up together to a business idea work and
transform it into a big business opportunity.
2. Using your different examples, explore the similarities and differences
between entrepreneurial ventures.
SIMILARITIES AND DIFFERENCES BETWEEN ENTREPRENEURIAL VENTURES
A number of small medium and big enterprises all discussed above, the similarity in
these organisations is the need for generating revenue. The organisation which is
not capable to generate enough profits will not be able in the competitive market;
Therefore, all the policies and decision are based on the profit-making possibilities. .
The organisation which is not capable to generate enough profits will not be able to
survive in the market; therefore, all the policies and decision of these companies are
based on the profit-making possibilities.
The difference in these organisations is in the marketing structure. Small and
medium enterprises mostly market their product and services with the word of mouth
publicity and promoting some local events (Gallouj, et al. 2013). On the other hand,
big organisations have a separate marketing department which designs different
strategies to fortify the brand of the company and for this purpose; they peruse
advertising campaigns on newspapers, TV, billboards and social media platforms.
2. Explain the difference between serial entrepreneurs, intrapreneurs
and owner managers.
10

ENTREPRENEUR INTRAPRENEUR MANAGER
Meaning Refers to a person
who set up his own
business with a
new idea or
concept.
refers to an
employee of the
organization who
is in charge of
undertaking
innovations in
product, service,
process etc.
Refers to a
manager who is
preoccupied in
making sales
target, budget,
profitability etc.
Capital Raised by him. Financed by the
company.
Company’s capital
Risk Taken by the
entrepreneur
Taken by the
company.
Risk averse
Resources Own resources Use resources
provided by the
company.
Company’s
resources
Approach Intuitive Restorative Calculative
Enterprise Newly established An existing one On-going
operations
Entrepreneur: As an example, Bill Gates is a famous entrepreneur in Pc software
company earnings over $79 billion, showing a interest in computer programming at
the very young age.
Another example of entrepreneurship is Wal-Mart, founded by Sam Walton who
started a small discount store back in 1962. This store has now became the
headquarter of the second largest company in the world that makes about $345
billion in net sales and hires more than 1.8 million employee in 6 700 stores around
the world.
Intrapreneur: Apple one of the most known firms in the world co-founded by Steve
Jobs in 1976 in his parents’ garage and who is now considered as one of America’s
great innovators that changed the world of music, computing, phones and retail
stores reached this huge success due to his leadership skills and his innovative
mind, unlike a manager who is considered only a copy and a follower of the
11

managerial techniques, a leader is an original that innovates, develops ideas and
inspire others.
Manager: A success story of management is a company that receives about one
million CVs per year Google, the levels of motivation and creativity are high due the
unique work environment. At Google the hierarchical structure is flat with less
management and more employee empowerment to make their decisions which
made them more responsible, this structure also creates an open environment that
encourages employees to be more collaborative, moreover the company provides
employees access to a variety of facilities such as, quality free food, gym, and even
video games.
Task 2 - Assess the impact of small businesses on the economy
P3: Interpret and assess relevant data and statistics to illustrate how micro
and small businesses impact on the economy.
1. Explain what is meant by Micro and Small Businesses.
MICRO AND SMALL BUSINESSES
Micro and small businesses constitute such organisation which do not have annual
turnover more than 10 million GBP and the number of employees are less than 50.
Micro and small business together constitute around 99% of all the businesses in the
UK. Together, these businesses provide employment to the 40% population of the
UK. The micro-enterprises constitute small businesses with private ownership such
as a salon or a roadside coffee shop.
2. Explain the role and the impact of micro and small businesses to the
UK economy
IMPACT OF THESE BUSINESSES ON THE UK ECONOMY
Small firms complementing the large firms
12

These small firms help the large firms in a variety of ways. For example, in the
automobile industry, a large portion of components are provided by these small
firms. Accounting and legal and insurance services for the big firms are also
managed by small service providing firms (Mueller, 2011). Small companies also act
as an agent of the products and services of big companies, shoes made by big
companies like Reebok and Adidas are sold in the retail market by the small local
shop owners.
Unique Offerings
Small business makes necessary innovations in the product in order to suit the local
taste. These types of changes according to the requirements of the customers are
not possible in big organisations. The offering provided by these sellers is unique in
the sense that these products are designed according to the need of the customers.
3. Identify the number and type of small firms and their contribution to
the economy at national, regional and local level.
Strengthening the Local Economy
The business by these local sellers is good for the growth of the local economy and
the money circulates in the local market only. These types of transactions are
beneficial for the economy because these transactions are protected from the
external turbulence in the economy and fluctuation in the key economic rates
(Makhbul and Hasun, 2010).
Better Customer Services
To face the multinational companies and tough competition in the local market, these
small organisations provide excellent customer services and are quick in resolving
the concerns of the customers regarding the quality of products and services. In
addition, a personal contact is maintained with the customers which motivate the
customers to visit the shop frequently.
Employment Opportunities
13

Micro and small enterprises provide employment to 40% of the population. Gyms,
coffee shop, food shops, small grocery shops and other mom and pop stores are
capable of providing employment to a number of people, this also decreases the
migration of the people towards big cities as people are able to get employment at
the local level.
In the UK, the vast majority of businesses employ fewer than 10 people, accounting
for 33% of employment and 19% of turnover. Within SMEs, micro-businesses (with
less than 10 employees) are booming. There are now 5 million of these businesses
in the UK, up from 3.5 million in 2000.
The growth of self-employment and technologies such as broadband and devices
like smartphones has also blurred the distinction between work and private life and
leisure. However, it is generally recognized that SMEs face unique problems, which
affect their growth and profitability and, hence, diminish their ability to contribute
effectively to sustainable development. Many of the problems cited have implications
for technology choice. These problems include lack of access to credit, inadequate
managerial and technical skills, and low levels of education.
Companies undertake sustainability entrepreneurship for a variety of reasons,
including to enhance their brand name and reputation and to benefit financially by
being market leaders in business practices that reduce environmental and societal
impacts in their sphere of operating influence. They also engage in sustainability
entrepreneurship to affect positive societal change.
Innovation is the specific function of entrepreneurship. It is the means by which the
entrepreneur either creates new wealth-producing resources. An entrepreneur uses
information, knowledge and intuition to come up with new products, new methods of
reducing costs of a product, improvement in design or function of a product,
discovering new markets or new ways of organization o industry.
14

P4: Explain the importance of small businesses and business start-ups to the
growth of the social economy.
1. Give a clear information about your understanding of the social
economy
SOCIAL ECONOMY
The social economy is the business activity which is focused on providing the
benefits of entrepreneurship to the society. Social economy includes co-operative
and credit societies, non-profit organisations and aim at serving the community as
whole rather individual economic gains. These organisations may be in both public
as well as private sector (Baum, et al. 2014). Small businesses are beneficial for the
social economies because these firms are the entry gates for the women and
minorities to enter in the mainstream economy.in recent year the women
entrepreneurs in the UK has considerably increased. In 2016, total 225 of the small
and medium enterprises were led by female entrepreneurs. Small businesses are
also helpful in supporting local communities by sponsoring local cultural events and
sports tournament.
Distinctive features of the social economy can be identified on the basis of what sets
them apart from other enterprises. These elements, which form the basis of a “social
economy test” to distinguish social economy actors from those operating in similar
but different sectors, such as the collaborative or sharing economy, include:
 The primacy of the person: the social economy is based on the primacy of the
individual and of social objectives over capital
 Sustainable growth: the overall aim of the social economy activities does not
emphasise the pursuit of profit and its distribution to owners as an ultimate goal
 Social and economic balance: in conducting their activities, social economy
actors focus on social aims
 Democratic governance and ownership: social economy entities function in
accordance with democratic, transparent and participatory decision-making
processes. The social economy basis is made up of individuals deciding to
15

collaborate on a voluntary, co-operative and reciprocal basis; ownership of the
capital does not determine the decision-making process.
2. Explain how small businesses and business start-ups is important to
the growth of the social economy. (Think about the benefits to the
economy)
IMPORTANCE OF SMALL BUSINESSES IN THE GROWTH OF SOCIAL
ECONOMY
Every community has its unique character. The local coffee shop, the mom and pop
store, yoga studio and the antique emporium, all these businesses help in making a
unique identity of the community (Guzmán, 2017). Small business owners are an
integral part of the local community. They donate to the local charity organisations,
join the commerce chambers. Following are the benefits of the small business and
business start-ups in facilitating the growth of the social economy.
Job opportunities
Today half of the UK’s working population is engaged in the small businesses. The
creation of jobs is beneficial for the social economy because it provides employment
to the youth at the local level and they do not have to rush to big cities in order to get
employment. 48% of total employed person in the Uk are working in the small
industries.
Increased standard of living
These small enterprises provide an independent earning to the people and they get
an opportunity of self-employment. People engaged in these small businesses work
hard to raise their standard of living and provide growth opportunities to the national
economy. The business owner of the small business take charge of their future and
or not dependent on the government organisation or multinational companies for the
employment. This business establishment becomes a means to move out from low
wage jobs and enter into the middle class (Bello, 2017). For example Car Wow
which was started in 2013 with 5 employees, today it employs 120 people at its
16

different offices and has been able to provide a better standard of living to all its
employees.
Making the local economy strong
The high revenue generated by these businesses result in high income for the local
tax collecting authority and which creates a fund for local development activities.
Small businesses have a customer-oriented approach due to which they gain
excellent customer loyalty. Due to these customized services, the business keeps
generating revenues even in the time of economic crisis.
Task 3 - Determine and assess the key aspects of an entrepreneurial mind-set
P5: Determine the characteristic traits and skills of successful entrepreneurs
that differentiate them from other business managers.
1. Explain what makes up Entrepreneurial characteristics and mind-set.
The entrepreneur characteristic is made by the passion to achieve the desired goal.
These goals motivate an individual to orient himself towards entrepreneurial activities
and take risks in the business (Autio, et al. 2014). A successful entrepreneur always
finds new ways to complete a task. This mind-set may also be affected by the family
upbringing, education and society of an individual. Below explained are some
personality traits and skills that stand a successful entrepreneur apart from the
ordinary.
Richard Branson the entrepreneur behind the Virgin group company with over 400
companies under his brand says the definition of success is the more you are
practically engaged the more successful you will be. He is a trusted mind-set by
providing values to help customers in any way and continue to make their service
better. He has a discipline where he puts his vision into motion and practice.
17

2. Identify and explain the different character traits and types of skills
(consider skills set, character and traits of entrepreneurs. Use 5 each) that will
make an entrepreneur standout from other business managers. managers.
CHARACTER TRAITS OF A SUCCESSFUL ENTREPRENEUR
Risk Takers
Risk taking is the basic qualities to be successful in a new business because of
every new business have a certain degree of risks which need to be assessed
carefully and design the strategies accordingly (Edwards-Schachter, et al. 2015).
Successful entrepreneurs are ready to take risks because they believe in their ideas.
For example; the billionaire Bill Gates, the founder of Microsoft took a great risk to
his career when he dropped out his college to start his own business venture. His
business was based on the vision of a computer being useful in every office and
home. Bill Gates was prepared to travel in the wilderness of the unknown and would
do anything to win. He even went up against Steve Jobs and was not threatened to
copy or borrow ideas from other great innovators and tech companies.
High confidence
Having confidence is not about outer aspects of personality is also about believing in
the one's ideas and steps to turn those ideas into reality. The confidence in an
individual develops his risk-taking abilities.
Learning new things
Gaining knowledge about latest technology and the recent developments in a
business is the key to make a business successful. Successful entrepreneurs have
an inborn passion to learn new things and apply different ideas in the business so
that things can be made easier. Gaining knowledge also helps in developing
18

problem-solving skills which help an individual to face the sudden obstacle in the
business (Schachter, et al. 2015).
Accepting failures
A successful business person understands that the ideas may not always work as
they were planned and some business ideas may also fail. These failures are a part
of the business and give an opportunity to analyse the gaps in the process which
became the reason for failure. A successful business person takes lessons from their
failures and moves on.
Passion
The passion in an individual motivates him to work hard and keeps his enthusiasm
levels up in the time of difficulties. This passion of the leader also motivates the other
team members to contribute positively to the goal achieving process. The passion is
also required in order to believe in the success of an idea in spite of initial failures.
 SKILLS OF A SUCCESSFUL ENTREPRENEUR
Resiliency
There are phases of ups and downs in a business and the thing may not go in the
way they were planned. The skill of resiliency helps an individual to keep moving
even when outlook is not so bright.
Focus
If the focus of a business person is nor strong he will easily get distracted in different
business opportunities and switching from one business idea to another waste the
energy and resources of the organisation (Aggestam and Wigren, 2016).
Self-reflection
Self-reflection is the capability of an individual to analyse the present progress of the
business in an independent way. This self-reflection helps in improving the
processes of the business on the basis of their performance.
19

Ability to make good relationships
A successful entrepreneur has an ability to make good relationship with the
employees and the other business stakeholders. Making a good relationship with
these business units is necessary to understand the behaviour of the people. A
leader may also be able to decide what responsibility need be assigned to a person,
based on his personality type.
Communication skills
Proper communication skills help the leaders to motivate the employee and make
him understand the vision and mission of the company (Parker, 2018).
Communication skills also include the ability to listen to others and encourage them
to share their ideas to make the organisation better. An effective communicator is
able to earn the trust of the people and motivate them to work up to their full
potential.
P6: Assess how aspects of the entrepreneurial personality reflect
entrepreneurial motivation and mind-set.
Explain Personal entrepreneurial tendency. You may consider these points to
explain entrepreneurial personality - The Improver  The Advisor  The
Superstar  The Artist  The Visionary  The Analyst. You can add other
personalities you can identify.
Entrepreneurs must be capable to have the features of several personalities at once
and as one person to demonstrate the ability to act as investors, inventors,
accountants, dispute investigators, leaders, technologists, marketing specialists and
top sellers. For this reason, the more knowledge and skills the entrepreneur is
capable to demonstrate the better. (Frese, Gielnik, 2014).
The most important personal qualities for an entrepreneur are: courage, self-
reliance, responsibility, determination, perseverance, proactive approach in different
areas in order to keep consistency between characteristics and requirements.
20

A person who is highly enterprising has the following qualities:
 Have a strong need for achievement;
 Like to be in charge;
 Seek opportunities and use resources to achieve plans;
 Believe that they possess or can gain the qualities to be successful;
 Are innovative and willing to take a calculated risk.
A personal entrepreneurial tendency is the inner motivation of an individual to peruse
business activity. Different kinds of entrepreneurial personality and how these
personality types reflect on entrepreneurial motivation and mind-set is explained
below:
The Improver
These types of entrepreneurs believe in making some positive change in the society
with the help of entrepreneurship. These companies work with a noble cause of
improving the society and making the lives of the people somewhat better. High
integrity and ethical principles are followed in the business.For example; Henry Ford
believed in improving the technology in the car making and increased the minimum
wage of the workers so that they can raise their standard of living.
The Advisor
These types of entrepreneurs design the business to offer maximum customer
satisfaction by providing a high level of support to the customers. Being customer
focused helps the companies to design the product and services on the basis of
customer demand (Morris, 2017). For example, Steve Jobs who was the CEO of
Apple played the role of an adviser to improve the product and services of the
company.
The Superstar
The superstar CEO builds a persona around his personality which motivates the
employees to improve their performance level and achieve the company goals.
These types of entrepreneurs are workaholic, highly competitive and have an
extreme passion to transform their ideas into reality. For example, Sir Richard
Benison, the CEO of Virgin group maintains his persona as a successful
entrepreneur and is quite active in his social life as well.
21

The Artist
These entrepreneurs are highly creative and keep exploring new ideas to make the
business better. The feedback from the customers has a great importance which
gives them an idea to improve the quality of product and services (Ao and Yin,
2014). For example, Warren Buffet who is the CEO of Wal-Mart is known for his out
of the box ideas to improve the sales of the company.
The Visionary
The visionary entrepreneur has some long-term goals regarding future of the
company and is extremely focused to achieve these goals. The vision of the
company needs to be communicated to the team members clearly so that desired
goals can be achieved indefinite timeframe. For example, John D. Rockefeller who
owned a number of oil supplying business and was the wealthiest person of his time
was known for his capability to motivate his team members.
The Analyst
The analyst leaders have good problem-solving skills and the focus is on using
research and development to deeply analyse and problem and finds its probable
solutions. Sometimes, over analysis of a problem may also cause delays in the
completion of the project. For example Jeff Bezos, the CEO of Amazon has great
analysing skills to understand the demand of the online market.
Task 4 - Examine the different environments that foster or hinder
entrepreneurship
P7: Examine, using relevant examples, how background and experience can
hinder or foster entrepreneurship.
Personal background of an individual can have a strong impact on his
entrepreneurial capabilities. Different factors which are related to the background of
22

an individual are explained below along with impacts of these factors on the
entrepreneurship abilities.
Family upbringing
The environment in which has been brought up, the society, education level of the
parents and source of family income all these factors make an impact on the mindset
of an individual. If a person has taken birth in a business family and there is an
environment of entrepreneurship appreciation and acceptance then some basic
entrepreneurial qualities are developed in him naturally which help the individual in
starting his own business (Jóhannesson, 2012).
For example, Korean Electronics Company Samsung was started in 1938 by Lee
Byung-chul and after his death in 1987, the reign of the company came in the hands
of his son Lee-Kun-hee who successfully managed the company for decades.
Education
The education level of an individual is also an important factor which makes on the
entrepreneurial tendency of an individual. The person who has taken a formal
degree in business management has a better understanding of the basic principle of
entrepreneurship and business management.. For example, Bill gates possessed
good academic skills and scored 1590 out of 1600 in SAT exam.
National culture
National culture is the belief, values and the traditions of a specific community which
make a deep impact on the thought process of an individual. If a person has seen
poverty or unemployment in the society then his business efforts may be focused to
solve these problems with the help of entrepreneurial activities..Based on the initial
research by Clyde Kluckhohn ( 1951), suggested one of the earliest type of the
culture which have a strong foundation. The theory is based on value orientations,
where limited number of problems in all human groups but also there are limited
number of solutions. The values given in society are delivered in a way where they
dominate a value system.
Economic circumstances
23

The personal economic circumstances of an individual, as well as the economic
conditions of the society and the country, also make an impact on the thought
process and mindset of an entrepreneur. The tax rate, recession, inflation and other
government policies can both hinder and foster the entrepreneurial mindset.
For example, Walt Disney was dirt poor in his adulthood and started off his career by
drawing pictures and selling to his neighbours. At the time of his death he had a net
worth of 80 million dollars.
Character traits
The characteristic traits are the basic motivating factors in the life of an
entrepreneurship. Some individuals have a special desire to take part and business
activity and find out whether their ideas have the potential to be transformed in
reality. The risk-taking ability is a personality trait that motivates individuals to try new
and in innovative ideas without having fear of business idea getting failed. In Rick
Riordan’s book The Lost Hero, Jason comes into the story not knowing his own
name or past, but even without memories, and without anyone who has known him
before, he profoundly affects other characters in the novel. His presence
automatically causes some characters concern. On the other hand, he has
character traits that positively influence and help those who become closest to him.
Past experience
The past experience in a business venture provides many valuable lessons to an
entrepreneur which helps to take calculated and well-thought risks in the business.
The past experience in the business also teach the skills to negotiate effectively with
different parties associated with the business, all these factors help in fostering the
entrepreneurial mindset of an individual (Sawang and Unsworth, 2011).For example,
Sir Richard Benison has started his entrepreneurship journey with the mail order
record business and today, the Virgin Groups own more than 200 different
companies. All these ventures have provided him with valuable experience to run a
business successfully.
CONCLUSION
24

The behaviour of an entrepreneur reflects a person who is ready to put his or her
career on the first line and take risks on an uncertain venture. Starting a new
enterprise always involves risk but the enterprise can earn profit and gain losses by
increasing competition and change the customer’s preferences.
The small companies do not always stay small gradually these organisations grow
up to big multinational business. Many big software companies like Microsoft and
Facebook started as a small company. These small businesses are also highly
innovative. The application for patent applied by these small companies is much
more as compared with the big business. The reason for the innovativeness of the
small firms is the fast decision-making process which is hard to find in the
multinational organisations. In addition, the work environment of small firms is also
more supportive of the innovations. The current assignment discussed different types
of entrepreneurial venture and their role to support the economy of the UK. These
organisations are beneficial to the social economy and help in strengthening the
local market or region. The assignment also discussed various factors which make
an impact on the entrepreneurial mind-set of an individual and the role of family
background and society on an individual’s thought process.
REFERENCES:
25

1. Aggestam, M. and Wigren, C., 2016, January. Lifestyle entrepreneurship as a
political act: contextualized entrepreneurship. In Academy of Management
Proceedings (Vol. 2016, No. 1, p. 12323). Academy of Management
2. Ao, J.Y. and Yin, M.M., 2014. Impacts of entrepreneur traits on proactive
behaviors strategy. In Applied Mechanics and Materials (Vol. 687, pp. 4616-4621).
Trans Tech Publications
3. Autio, E., Kenney, M., Mustar, P., Siegel, D. and Wright, M., 2014.
Entrepreneurial innovation: The importance of context. Research Policy, 43(7),
pp.1097-1108
4. Baum, J.R., Frese, M. and Baron, R.A., 2014. Born to be an entrepreneur?
Revisiting the personality approach to entrepreneurship. In The psychology of
entrepreneurship (pp. 73-98). Psychology Press
5. Bello, S.M., 2017. Personality Trait and Innovation Performance of Micro and
Small Enterprises. In Leadership, Innovation and Entrepreneurship as Driving Forces
of the Global Economy (pp. 663-669). Springer, Cham
6. Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan
Limited
7. Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
8. Edwards-Schachter, M., García-Granero, A., Sánchez-Barrioluengo, M.,
Quesada-Pineda, H. and Amara, N., 2015. Disentangling competences:
Interrelationships on creativity, innovation and entrepreneurship. Thinking Skills and
Creativity, 16, pp.27-39
9. Gallouj, F., Rubalcaba, L. and Windrum, P. eds., 2013. Public–Private
Innovation Networks in Services. Edward Elgar Publishing.
10. Guzmán, V., 2017. Nine traits for the successful flute entrepreneur. The Flutist
Quarterly, 42(3), p.34
11. Jóhannesson, G.T., 2012. “To get things done”: A relational approach to
entrepreneurship. Scandinavian Journal of Hospitality and Tourism, 12(2), pp.181-
196.
26

12. Katongole, C., Ahebwa, W.M. and Kawere, R., 2013. Enterprise success and
entrepreneur’s personality traits: An analysis of micro-and small-scale women-owned
enterprises in Uganda’s tourism industry. Tourism and Hospitality Research, 13(3),
pp.166-177.
13. Makhbul, Z.M. and Hasun, F.M., 2010. Entrepreneurial success: An
exploratory study among entrepreneurs. International Journal of Business and
Management, 6(1), p.116.
14. Mazzucato, M., 2015. The entrepreneurial state: Debunking public vs. private
sector myths (Vol. 1). Anthem Press.
15. Morris, M.H., 2015. Entrepreneurship as experience. John Wiley & Sons, Ltd
16. Mueller, S., 2011. Increasing entrepreneurial intention: Effective
entrepreneurship course characteristics. International Journal of Entrepreneurship
and Small Business, 13(1), pp.55-74.
17. Online available at: https://bulb.co.uk/ last visited on 10 April 2018.
18. Parker, S.C., 2018. The economics of entrepreneurship. Cambridge University
Press
19. Sawang, S. and Unsworth, K.L., 2011. Why adopt now? Multiple case studies
and survey studies comparing small, medium and large firms. Technovation, 31(10-
11), pp.554-559.
20. Short, J.C., Ketchen Jr, D.J., Shook, C.L. and Ireland, R.D., 2010. The
concept of “opportunity” in entrepreneurship research: Past accomplishments and
future challenges. Journal of Management, 36(1), pp.40-65.
27