Micro and Small Business Management in the Social Economy

Entrepreneurship And Small Business Management INTRODUCTION 3 LO13 LO2 14 P3 Interpreting and assessing the relevant data and statisticsto illustrate how micro and small businesses impact on the economy 14 P4 Explaining the importance of small businesses and business startups to the growth of the social economy 16 M2 17 LO 3 18 P5 Determining the characteristic traits andskillsof entrepreneurs that differentiate them from that of other business managers. 18 P6 Assessing the aspects ofentrepreneurialpersonalityreflecting entrepreneurial motivation

Entrepreneurship And
Small Business
Management
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Table of Contents
INTRODUCTION......................................................................................................................3
LO1 ............................................................................................................................................3
LO 2..........................................................................................................................................14
P3 Interpreting and assessing the relevant data and statistics to illustrate how micro and
small businesses impact on the economy.............................................................................14
P4 Explaining the importance of small businesses and business startups to the growth of
the social economy...............................................................................................................16
M2........................................................................................................................................17
LO 3..........................................................................................................................................18
P5 Determining the characteristic traits and skills of successful entrepreneurs that
differentiate them from that of other business managers.....................................................18
P6 Assessing the aspects of entrepreneurial personality reflecting entrepreneurial
motivation and mind-set.......................................................................................................20
M3 .......................................................................................................................................21
LO 4..........................................................................................................................................22
P7 Examining background and experience that can hinder or foster entrepreneurship.......22
M4 .......................................................................................................................................23
CONCLUSION........................................................................................................................24
References................................................................................................................................25
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INTRODUCTION
This assignment on entrepreneurship and small business management will provide a
detail overview of the entrepreneurial activities. The report starts with explaining different
types of entrepreneurial ventures along with their similarities and dissimilarities. The impact
of small businesses on the economic development of a country has also been discussed here.
Along with that the characteristic traits that are unique in entrepreneurs have been discussed
along with different line of arguments. Finally the report ends with explaining the impact of
background and previous experience on the success rate of an entrepreneur along with
specific examples from the given case study of Croft-Simon.
LO1
Slide 1
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Slide 2
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Slide 3
Entrepreneurship
Rather than working under other’s business organisation starting own business which
will support to livelihood of a particular person can be categorised as entrepreneurship. A
person who innovates ideas and thoughts for the purpose of running a new business is known
as entrepreneur. For example, Mark Zuckerberg has started his own business Facebook in
which a lot of employments are created as well as he can work independently which provides
him an opportunity to earn money as revenue (Casson and Buckley, 2010). Besides, Jeff
Bezos who is the founder and CEO of Apple also started his own business rather than
working for others (Casson and Buckley, 2010).
Types of Entrepreneur
Serial entrepreneur
An entrepreneur can be defined as serial entrepreneur when he will come
continuously with a number of different new ideas and make implementation of these ideas.
For example, Andreas von Bechtolsheim is a top rated and most successful serial
entrepreneur and he is considered as the co-founder of Sun Micro system and he was also the
co-founder Arista Network.
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Intrapreneur
An intrapreneur works for other within an organisation and he is responsible to
develop new ideas and products which will support to the growth and development of the
organisation in which he works. In this context, intrapreneur has not required to bear risk so
that he will not get the reward as like as the entrepreneur. For example, the people whoever
work for Google and Shutter stock can be considered as the intrapreneur.
Social entrepreneurs: People who works for society and poor people in order to
provide them best services for their welfare is called social entrepreneur. Such type of
entrepreneurs understand the social problems and provide them benefits. The main purpose of
social entrepreneur is to continuous growth of social economy as well as organisation. For
example, NGO, Trust , etc.
Slide 4
A wide range of entrepreneurial ventures are observed in the real business world two of them
are explained below with examples-
Small business venture
The business organisation which is started by one or more entrepreneur in order to
manage the livelihood can be defined as small business venture. Such type of venture creates
employment for only 50 people and can generate less than or equal to £10 million turnover
per year. Due to less capital and less manpower such type of venture has less growth and
expansion opportunity.
For example, grocery shop and beauty parlour as profit of such venture is used only to
manage the livelihood of the entrepreneur (Casson and Buckley, 2010).
Corporate venture
A venture can be defined as corporate venture when this venture has the capacity to
grow at a higher rate. A corporate venture might experience more than 200% to 500% growth
with the five years of starting its operation. Corporate venture has high capability to develop
and implement new business ideas due to high capital base and high profitability. Such type
of venture introduces new products every now and then which support to attract more and
more clients (Reinink, 2010).
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For example, Google can be considered as the corporate venture as it has developed
new products within its existing operation such as YouTube, Google drive and Google Ad
sense (Reinink, 2010).
Slide 5
Typology of Entrepreneurship
Salary entrepreneurship
This entrepreneurship is considered as the basic category of the entrepreneurial
venture. Such type of entrepreneurship provides less expansion opportunity as the
entrepreneur starts it in order to manage its livelihood properly (Morris et al., 2016). The
funds which are required to manage the operation of the venture are collected by the
entrepreneur from his savings. In case of survival venture the entrepreneur works as the
manager, worker and owner. Due to less capital and less profitability such entrepreneurship
are operated as small business organisation. Therefore, such typology is related with small
business ventures and entrepreneurs who runs a small business. This is run by intrapreneur
who works in an industry for the purpose of getting salary in the consideration of work done.
For example, pharmacy, beauty parlour and grocery shop are the considered as the
salary entrepreneurship (Morris et al., 2016).
Lifestyle entrepreneurship
In case of lifestyle entrepreneurship the entrepreneur searches for earning his
livelihood from the pattern in which he lead his personal and social life. Such type of
entrepreneurship is considered as the unique form of entrepreneurship as the lifestyle of the
owner is reflected in the business operation (Morris et al., 2016). Therefore, such typology is
related with serial venture and social entrepreneur who brings continuous changes in their
organisation and provide different benefits to society. In this context, the entrepreneur turns
the lifestyle in business organisation which provides them an opportunity to make profit and
expand the operation of business. Employment opportunities are also created from such type
of entrepreneurship.
For example, the profession and business of travel guide can be referred as the
lifestyle entrepreneurship. Such type of entrepreneurship is mostly location based in which
experience of the entrepreneur is considered as the major capital (Morris et al., 2016).
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Slide 6
All the entrepreneurial ventures have unique nature which support to differentiate one
venture from another. Although all entrepreneurial ventures are different from one another in
term of feature and operation, a number of similarities are also observed among them.
Similarities between small business venture and corporate venture
 Both ventures are started with the objectives to make money or earn profit
 Both ventures create employment opportunity that means contribute to solve the
unemployment problem.
 Business entrepreneurs bear financial risks at the time of introducing business and
running this.
 The main aim is provide maximum satisfaction to people and earn higher profits.
 Both ventures contribute to the social and economic development of the country by
their actions.
 All entrepreneurs, intrapreneur and social and serial entrepreneurs mainly focus on
needs and wants of customers and provide them that kinds of products and services.
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Slide 7
Dissimilarities between small business venture and corporate venture
Growth rate
Growth rate of small business venture is very low as this venture has a shortage of
capital and manpower. On the other hand, corporate venture enjoys more than 20% growth in
an annual basis due to high capital and manpower (Reinink, 2010).
Financing
In case of small business venture the capital is formed from the savings of the
entrepreneur. On the other hand, angel investors, capital market and venture capitalist are the
found providers of corporate venture.
Slide 8
Dissimilarities between small business venture and corporate venture
Return pattern
The return from the small business venture is taken as the salary of the entrepreneur
which is spent in managing the livelihood of him. In case of corporate venture the
entrepreneur expects gain from his investment and it can be in the form of capital gain or
profit (Reinink, 2010).
Investment in technology
In case of small business venture no or less investment in technology is observed. But,
a corporate venture requires high investment in technology.
Difference between types of entrepreneurship that are as explained:
Basis Serial entrepreneur Intrapreneur Social entrepreneur
Meaning This entrepreneur runs
their business
continuously by taking
all financial risk.
Business is set up by
single person who
manages capital and
uses their skills to run
This types of
entrepreneurs works for
society by
understanding their
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the business. needs and wants.
Focus Serial entrepreneurs
mainly focuses on
continuous innovation
by which is needed to
attract people.
They mainly focus on
their business and
expanding such
business activities.
The main focus of
social entrepreneurs is
to perform all business
activities and
accomplish objectives
by providing maximum
satisfaction.
Motivational
factors
Continuous growth and
customer influence is
the key motivation for
serial entrepreneur.
Accomplishment of
goals is consider as
motivational factor for
intrapreneur, in which
they have power and
authority to make
decisions.
Customer satisfaction
and continuous
relationship with
society is the
motivation for social
ventures.
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Slide 9
Public entrepreneurship
Yes, entrepreneurship can exist in public sector as enterprises are runs by public
authorities who works for people and their wants. Public entrepreneurship is managed and
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run by the government or authority of the government. Such entrepreneurship is managed
considering the development of general people. For example, government school and college
are the best examples of public entrepreneurship as these organisations are managed to spread
the light of education so that balanced development can be achieved. In this context,
profitability is the secondary aim and social development is the primary aim. (Souitaris and
Zerbinati, 2005).
For example, BBC, Tesco Plc and British Council are the most successful public
entrepreneurship of United Kingdom which is controlling by public sector authorities. Such
types of organisation does not concern about the profitability and works for social welfare.
BBC was founded by Sir David Clementi who is great entrepreneur, providing important
news and information to people. In addition, Tesco Plc was founded by John Allan, Dave
Lewis and Ken Murphy for the purpose of providing different types of products and services
at retail prices that helps customers to buy products at reasonable prices. They are successful
entrepreneurs in public sector who focused on different needs and wants of people and start
their business accordingly.
Corporate entrepreneurship
In case of corporate entrepreneurship new products or new business ideas are
developed within an existing business firm. For example, Ad sense of Google. The primary
objective of such entrepreneurship is to make profit and the secondary aim is to contribute to
the social and economic development in this context. Pepsi of Pepsico can also be recognized
as the corporate entrepreneurship. The main objectives of such types of entrepreneurship is to
increase the wealth so these venture requires to generate profit to ensure the growth,
development and expansion. They are successful entrepreneur who runs their business and
bring new ideas to attract the people and make profits.
Public and Corporate Partnership
Both public entrepreneur and corporate entrepreneur can work simultaneously and can
contribute to the social and economic development of United Kingdom.
Example, transportation sector of United Kingdom is operated as public private ownership
(Souitaris and Zerbinati, 2005).
Scope of new entrepreneurial venture in delivering successful product innovation to market
New entrepreneurial venture is playing an important role to become a successful
business by innovating product and delivering them effectively. The scope of new
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entrepreneurial ventures is wider as it brings new products and services in market which
attracts customers to buy innovative products. For example, the lifestyle of people are
continuously changing that need to get new products and services. New products are
introduced by entrepreneurs by analysing their needs which gives them more satisfaction and
increase profitability.
Critically examination of factual data for development and growth of entrepreneurial ventures
The growth and development of entrepreneurial ventures in UK is based on products
and services which attracts customers and make profits. It is important for entrepreneurs to
understand the demand of people firstly, them introduce products accordingly which can
attracts customer and maintain profits. If it provides maximum satisfaction to customers then
growth and development of ventures in UK is possible.
Slide 10
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LO 2
P3 Interpretation of data which impacts on micro and small business
The opportunity of becoming successful and risk of being failure of a particular
country can be assessed from the analysis of the economic condition of that country. SME
refers small and medium size enterprises in which employees work in defined numbers.
Small firms have more than 10 but less than 50 employees, and in micro firms are having less
than 10 employees who works for attaining business objectives. Economic development of a
country mostly depends on the performance of the business organisation of that particular
country (Mariotti and Glackin, 2012). In this context, much contribution comes from the
growth and development of the micro and small business.
A number of roles are played by the micro and small business in the growth and
development of the economy a particular country and the following discussion will highlight
the which factors are influenced by the micro and small business-
Economic growth
The output which is produced by micro and small business contributes to the gross
domestic production which is one of the most known indicator of the growth and
development of the country. Moreover, a lot of employment opportunities are created by the
operation and function of the micro and small business which also supports to the growth of
the economy of the United Kingdom.
School and local government
In order to draw the attention of the clients and to manage the industry rivalry
different types of CSR activities such as donation and charity are undertaken by different
micro and small business organisation. For examples, some primary schools and high schools
of United Kingdom are operated through the financing of micro and small business
organisation (Mariotti and Glackin, 2012). Moreover, the tax which are paid by the small and
micro organisation is mostly used to manage the operational cost of the local government
such as cost of the defence.
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Figure: CSO’s Business Surveys Establishment Register
It is observed from the above graph that most of the employment is created through
the establishment and operation of micro and small business. More than 90% employment
opportunity of the United Kingdom is created through the micro and small business
organisation. According to statistics and graph it has been analysed that micro and small
business have major share in economic and political growth by running different businesses
such as food processors and drinks, textile garments, printing publishing, wood and related
products, chemical and non metallic minerals etc. that are providing different job
opportunities and remove unemployment which leads to economic growth of UK.
Future growth
The number of entrepreneur in micro and small business sector is increasing day by
day. Most of the small business are operated in order to meet the requirements of the
household of the United Kingdom. Recently, it has observed that more than 25% of the small
business organisation is established in order to support the large industry. For example, spare
parts of the cars and motorbikes are being produced by the micro and small organisation. So,
it can be concluded that more and more employment will be created by micro and small
business organisation in near future which will contribute to the growth and development of
the economy of the United Kingdom (Mariotti and Glackin, 2012).
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Interpretation:
Micro, small and medium businesses are contributing in the financial growth and
development of country. Such enterprises runs their businesses by understanding the needs of
customers and make efforts to provide that kind of products which influences customers
more. For instance by running such business, employment opportunities are created that
improves the economical position of UK. It reduces the poverty by providing employment to
people and maintaining profitability. In UK, there are number of small, micro and medium
firms who pays tax and generate employment opportunities that helps to improve the
economy that leads to growth and development of country.
P4 Explaining the importance of small businesses and business start-ups to
the growth of the social economy
Small business organisation has a great contribution to the growth and development of
the economy. Moreover, social economy of a country also influenced by the operation of the
small business organisation. On the other hand, start-ups which are mostly technology
oriented business organisation also contribute to the growth and development of the social
economy. The ways in which small business and business start-ups contribute to the growth
and development of the social economy are discussed in the following paragraph-
Charities
Most of the charities of United Kingdom are coming from the contribution of the
small business organisations and business start-ups. Almost all the charity organisations of
UK works for the development of the backward sectors. For example, unemployed people are
given training by these organisations so that they can contribute to the development of the
society funding (Scarborough, 2012). Moreover, some organisations also supports to the
disabled community to make self-employment which also contribute to the development of
the community.
Crowd funding
Small business organisation and business start-ups are increasing the savings of the
people through creation of employment opportunities. These savings are invested in the
productive sectors again which is contributing to the development of the social economy.
Such rotation of funds in the economy of a country can be defined as crowd funding
(Scarborough, 2012).
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Employment
People with less education and limited capital can start small business organisation
and business start-ups which creates employment of themselves as well as employment
opportunities of others. In this context, life standard of the people increases due to more
disposable income and more awareness due to income opportunities which also supports to
the development of the society. It is observed that more than 6000 employment opportunities
are created by the small business organisation and business start-ups in 2006 which has
directly contributed to the development of the society.
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Equality
Large business organisations are mostly centralised and develops the socio economic
condition town areas. But small business organisations and business start-ups are operated in
any areas based on the availability of the resources. As any people can start small business
and business start-ups in any areas equality in the society can be ensured (Stokes and Wilson,
2010).
M2
Impact of small business in economy of UK:
 Fair competition and economic flourishes of United Kingdom has ensured through the
growth and development of the small business organisation.
 More than 2 trillion pounds of the GDP of the United Kingdom comes from the
contribution of small business organisation.
 More than 5.6 million business organisations of the United Kingdom are operated
based on the small business which means most of the employment opportunity of that
region is created by this sector (Kao, 1994).
Impact of Micro business in economy of UK:
 The contribution of micro business in the economy of United Kingdom can’t be
ignored as more than 48% employment of the United Kingdom is the contribution of
the micro business.
 More than 19.5% of the economic activity of the United Kingdom is performed by
micro organisation.
Compare the impact of SME for the UK utilising two different industries
Basis Retail Construction
Impact This industry impacts positively on
UK's economy by providing different
types of products and services to
customers. It can be consider as small
business that can run a business by
This industry concluded in
medium size that employs more
than 10 but less than 50 people
that leads to economical growth.
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involving less than 10 employees.
Contribution It involves producing, distributing,
and selling of goods and services
which are uses by customers on daily
basis and improve economical
conditions.
This sector contributes 7% of
GDP by providing employment
opportunities and paying taxes
that helps to improve the UK's
economy.
Compare the impact of SME for two EU countries
It has been analysed that small and micro enterprises are effective that helps to
improve the economy of EU countries. It impacts on EU countries such as SME creates
various job opportunities and expand their business by attracting people. After Brexit, it
became difficult for large enterprises to run their business as per new rules, which
advantageous for SME to set their business and provide employment chances to skilled
people that helped to improve economy.
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LO 3
P5 Characteristic traits and skills of successful entrepreneurs that
differentiate them from that of other business managers.
While the skills and characteristics which are hold by an entrepreneur and a business
manager a number of differences will be found between them.
Entrepreneur: This person innovates new ideas that attracts customers in order to
purchase unique products and services. All risk are bear by entrepreneurs who develop new
products and services. An entrepreneur holds some distinct features which inspire him to start
his own business rather than working for other’s business like a business manager.
Manager: A person who manages all business activities and perform business function
in order to make profits is known as manager.
Difference between entrepreneur and manager
Basis Entrepreneur Manager
Meaning This person bears all financial
risks and make profits by
using new ideas.
Profits are made by managers
by bearing minimum risks.
Formal/ informal They can be formal and
casual who innovates single
idea in order to make profits.
They usually consider as
formal and informal approach
that helps to improve the
profits.
In the following paragraph some skills and characteristics will be discussed which separate
an entrepreneur from a business manager-
Passion - Passion of a business manager is totally different from the passion of an
entrepreneur. An entrepreneur always expects rewards from an independent business so that
he has the passion to take risk. Besides, a business manager tries to ignore risk as he does not
work independently rather work for other’s business (CP, 2018). In the provided case study
Croft-Simon has the passion to work independently so that he started to serve popcorn which
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is gluten-free, rich in nutrition and mostly organic. This passion of doing independent
business made her a successful in this field which differentiate from others.
Tenacity - While starting new business the owner or entrepreneur is required face a lot
of problems such as environmental challenges and threats of the competitors. Sometimes the
entrepreneur fails to manage the challenges properly which result in the failure of the project.
An entrepreneur has the tenacity to look forward although there is a risk of being failure. On
the other hand, a business manage reject project in case of failure as failing again and again
might insecure his job. In this context, although Croft-Simon has to deal with giant
organisation as competitor she has not spare from his tenacity of success.
Skills-
Self-belief skills - Fuel of moving forward in case of starting new business comes
from the self-confidence. Without better confident level no one can take proper action or can
implement risky project. As Croft-Simon has belief on herself that she will be able to
introduce new organic popcorn that will be able to draw the attention of the clients, she has
become successful in her initiatives that differentiate from others. An entrepreneur has to deal
with a number of risky situations such as business failure, less demand, rise in the price of
raw material and so on, due to self-confidence he can move forward. On the other hand, a
business manager can’t apply self-belief properly as he is required to face question of the
owner in case of failure (Robinson, 2014). As Croft-Simon has belief on herself that she will
be able to introduce new organic popcorn that will be able to draw the attention of the clients,
she has become successful in her initiatives.
Creativity - An entrepreneur has the capacity and capability skills to make a proper
solution of a particular problem. For example, an entrepreneur can develop new business
ideas or new products from the market gap due to better analytical ability. Moreover, new
process to serve client can also be developed by an entrepreneur due to creativity. Besides,
creativity supports an entrepreneur to deal with different situations which are discussed in
previous paragraph effectively. For instance, Croft-Simon has become able to introduce three
alternative flavoured popcorns due to the creativity skills which make different from other
entrepreneurs . On the other hand, a business manager is required to work regarding the
direction of the owner of the business which hinders to apply his creativity properly.
Flexibility skills- Flexibility is another skills of the entrepreneur which makes him
successful in his attempts although a lot of risk and uncertainty involved in his action. For
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example, Croft-Simon required to make changes in the taste or service style considering the
demand and requirement of the clients. Such entrepreneur understand the taste of people and
introduced from different flavour of popcorn that helped to achieve success. A business
manager is unable to apply flexibility in this action as he is required to perform such duties
which are given to him by the top management. In this context, production of wristwatch of
Eone can be used as example. At first the organisation had produced watch for those persons
whoever are disabled. It was observed that people are not interested to expose their disability
so that the demand of the watch of Eone reduced (Rampton, 2014). Considering the demand
of the clients currently Fone is trying to produce wristwatch which will be used by everyone.
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P6 Assessing the aspects of entrepreneurial personality reflecting
entrepreneurial motivation and mind-set
An entrepreneur becomes special one as he is capable to do something which is quite
impossible for others to perform. It is observed that the personality traits which are held by an
entrepreneur are different and unique from others which support the entrepreneur to do
something outstanding. An entrepreneur develops his own policy in order to implement his
planning to make the ideas viable which are the contributions of his personality traits.
Croft-Simon is a successful entrepreneur as she has motivated to start a new business
with unique product from her inner desirability. Moreover, she has also the mind-set to offer
food to the clients with superior quality so that customer participation can be increased
(Cherry, 2019).
In order to make an assessment of entrepreneurial personality of Croft-Simon who has
become a successful entrepreneur Big Five Personality Model is explained in this context-
Extraversion
The capability of person or entrepreneur to manage a better relationship with the
people of the society or clients and to manage the social networking properly and effectively
can be defined as extraversion. Leadership role is adopted by Croft-Simon which has made
him successful in his action (Cherry, 2019). It is also observed that she has a better
interaction with the clients and the people of the surroundings.
Agreeableness
The degree of cooperation of an entrepreneur with the people and trustworthiness of
an entrepreneur can be defined as the agreeableness. Croft-Simon has a concern over the
health of the people or client so that she has concentrate such manufacturing system which
offers the client gluten free products such as flavoured popcorn. In this context, how much
cooperation toward the clients has within Croft-Simon gotten exposed?
Conscientiousness
Conscientiousness refers the degree of intention of the entrepreneur to set goals and
concentration toward achieving the goals. In this context, the entrepreneur is required to
make a policy and to prepare a timeline to implement the policy which is made. In this case
Croft-Simon has taken decision to market organic popcorn after making a detailed analysis of
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the customer demand and market gap. Almost all the actions of her is made based on a
planning and the implementation of the planning is sticky to the schedule (Cherry, 2019).
Emotional stability
The capability of an entrepreneur to start new business from the failure and to learn
from the mistakes can be referred as the emotional stability. Due to emotional stability an
entrepreneur does not become upset about the outcome of the project. Moreover, he does not
fear the giant competitors due to better and strong emotional stability. In this context, Croft-
Simon has not become upset about the advertisement expenditure of the large organisation
rather she has found a green signal in production of popcorn as it is found by him that the
market of popcorn will grow immediately.
Openness to experience
Experience is considered as the best capital of an entrepreneur in case of starting new
business. In case of acceptance of challenge and adapt of the changes in the business
environment experience provides better support to the entrepreneur. In this context, Granola
is launched by Croft-Simon as the breakfast item as her experience gives a sign that clients
will accept granola thankfully as breakfast.
M3
Although the success of an entrepreneur mostly depends on the personality traits,
motivation and mind-set of the entrepreneur, there are a number of arguments which are
related to the characteristics and personality traits of the entrepreneur.
In this context, optimism and realism are given concentration by the researchers in
order to find out the rate of success of the entrepreneur. It is revealed from different studies
that the entrepreneurs whoever are optimistic about their success can achieve their goals and
objectives easily. Counter arguments also observed in this case. For example, in case of more
optimism an entrepreneur can take high risk project which can incur a great loss. Sometimes,
shut down of business can be taken place due to over optimism as project can be taken
without analysing the real scenario (Liang et al., 2019).
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LO 4
P7 Examining background and experience that can hinder or foster
entrepreneurship
Not only personality traits of an entrepreneur works for his success rather background
of the entrepreneur as well as experience also influence the achievement of the goals and
objectives of the business or project. For example, child of entrepreneur are most likely to
become an entrepreneur in the future. Moreover, culture of the birth place of a child has also
influence to determine his profession in future life. In short, it can be concluded that
background and experience of a person or entrepreneur have influence in his success and the
influence can become either positive or negative.
Education
Education plays an important role in the action of an entrepreneur. The contribution of
education in the success of entrepreneur can’t be ignored. In this context, both formal and
informal educations are given concentration. An educated person has better analytical ability
compare to an uneducated person so that he can assess the market gap better compare to the
uneducated person. Exception can also occur in this case. For example, Although Bill Gates
was dropped from Harvard University; he has also become successful as an entrepreneur
(Lee, 2010). In this context, informal education not academic education has supported him to
become a successful entrepreneur. In the given case Croft-Simon has gathered a real
knowledge regarding the market through an informal channel which has contributed to the
success of her.
Moral support network
To become successful an entrepreneur requires supports from the community or group
in which he belong. In case of implementation of business idea Croft-Simon has gotten
assistance from Anita Winther and Cassandra Stavrou that means networking has supported
her in this context to deal with the challenges which arise from the external environment of
the business. Moreover, she also gets inspiration from the talent, efforts and skill of the
community of entrepreneur which has supported her to identify market gap and turn it into
the business idea.
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Work history
Prior experience is also another factor which contribute to the success of an
entrepreneur as experience in a particular field supports to handle the challenges properly
which is essential to achieve competitive advantage. In the given case Croft-Simon has
become successful in his popcorn business as he has worked for many years in food industry.
In this context, she has real knowledge regarding the intensity of competition, demand of the
clients and preference of the target market (Lee, 2001).
Positive impact:
The background and life experience of Croft-Simon helped to run a business
successfully. It helps to face the all challenges which was arise in business. she make so
many efforts that helps to prepare the different flavour pop corn as they wants. Good
educational background also helped to maintain all functions efficiently and became
successful entrepreneur. Moral support network from Anita also inspire to run a business.
Negative Impacts:
He also faced financial risk in order to establish new business. There were many
competitors in front of Croft Simon that become difficult to crack such competition. Such
entrepreneur had lack of skilled employees and resources that created many problems while
running a business.
M4
Proper collaboration of the personality traits which are discussed above and personal
background as well as skill has influence in the achievement of the goals and objectives.
For example, from the early age Warren Buffet has the passion to make money. In
this context, personal characteristics and background of Warren Buffet have made him
successful in real life. It can be added that at the age of eleven he had purchased some stocks
of Cities Service which was the first investment from him. Moreover, grocery products, cock
and magazine are also supplied by him from the early age. All those factors have made him
expert to develop new business and investment ideas (Forbes, 2019).
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CONCLUSION
Entrepreneurs bring new product or service ideas which change the lives of the
customers by giving them experience of a better life. It also increases the size of the economy
and ensures maximum utilisation of resources. Small businesses are important for a country
from every perspective. Entrepreneurs reduce unemployment and ensure stable economic
growth by starting their own small businesses. Authorities should take proper steps to
facilitate the growth of micro and small businesses for the overall betterment of the economy.
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References
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