Entrepreneurial Characteristics and Small Business Success

This assignment delves into the relationship between an entrepreneur's characteristics and the success of their small business. It analyzes both internal factors, like personality and attitude, and external influences such as social norms and cultural expectations. The report emphasizes the significance of understanding these factors for effective management and achieving higher profits in the small business sector.

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

Table of Contents
ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT..................................1
P1 Types of entrepreneurial ventures and their relation with their typology.............................3
P2 Differences and similarities among the lifestyle entrepreneurship and social
entrepreneurship.....................................................................................................................5
M1 Investigating a diverse range of entrepreneurial ventures...............................................8
P3 Impact of micro and small business impact on the UK economy.....................................8
P4 Importance of small business and business start-up to the growth of the social economy:
..............................................................................................................................................10
TASK 3....................................................................................................................................12
P5 Characteristic of Elizabeth Gooch and Tom mercer......................................................12
P6 Entrepreneurial personality and mind-set .....................................................................13
TASK 4....................................................................................................................................14
P7 Entrepreneur background and experience.......................................................................14
REFERENCES.........................................................................................................................17

INTRODUCTION
Entrepreneurship and managing business goes hand in hand. When an entrepreneur
manages his business operations effectively and efficiently he gets success. This report
revolves around the understanding of the cognitive knowledge of the skills needed in the field
of entrepreneurship and managing the small business. It involves the deep understanding of
various attributes that the entrepreneur that are successful and their behaviours, types, and
attitudes, and how these all helped in making the business successful and contributing to the
national economy(Ross and Lashley, 2010). This report gives an insight to the influence of
national culture and the economy on entrepreneurship that includes the exploring personal
traits of entrepreneurial and the impact that they have on situational factors like background,
education, and other life experiences. Further it is also discussed that about the role of small
firms on the economy and what are the risks and rewards of starting a new venture for which
investigation is needed and it reflects the own enterprising and entrepreneurial characteristics.
P1 Types of entrepreneurial ventures and their relation with their typology.
There are four types of entrepreneurial ventures and these are :
Small business entrepreneurship: These are the type of entrepreneurs who run a
home based business and this includes carpenters, part time worker, consultant, grocery
stores, travel agent, plumber, hairdresser, electricians tec. These are small scale business and
usually anybody can run. They rely on local markets and usually prefer local persons for job .
their hard work brings them profitability. They work hard to feed their family and its not
something that could takeover the industry(Storey and Greene, 2010)
Example: The best example of small business entrepreneurship can be ventures
initiated by an individual to ensure its survival in the market. The major examples of the
same are as Electrician, Plumber, Bakery, Restaurant. contemporary age businesses in
Handicrafts and clothing are current best examples of small scale entrepreneurship.
Scalable start up entrepreneurship: they are new start-ups unlike small scale
business they are found by the new investors . They hire the bright and the best investors.
They work for searching new scalable and repeated model of business. These scaleable
startup carry the potential of being expanded to a large scale given the investment which has
been received by this business. These upcoming businesses focus expansion measures

through funds arranged through venture capitalists or angel investors. They involves in small
percentage entrepreneurship as the investors defines the share of control of an entreprenuer.
Exapmle: As defined above these businesses carry scope of being expanded to a large
scale. The major examples of this type of entreprenuership are Golance and coffee shop in
london. GoLance is platform which serves as a universal platforms for freelancers. On the
other hand the number of visitors in the coffee shop determine its scalablity and reach.
Avaiablity of right amount of funds will help these businesses in enhancing their reach and
scope of operations.
Large company entrepreneurship: It is essential for these large corporation to take up
entrepreneurship to sustain their business in the present operating market. These are carried
out in the form of offering new products, innovative ideas and working for gaining core
competence. They believe in changing the taste of customer by launching new product,
technology, contestant, preferences etc. It enters through disruptive innovation, it means
when the small companies enters the market and disrupt the business of big already existing
companies. Here new companies enter the market and captures the whole market.
Example: In context of large organisation startup there can be no better organisation
than the tech Giant Google. This mega organisation is agressive when it comes to taking
entrepreneurship in form of self-driven cars and space exploration. The another example
which is relevant here is of Ford. The automotive manufacturer have ventured into tech
services by introuducing their FORD SMART MOBILITY which is headquartererd in
Silicon Valley. These businessman have expanded there operations on large scales globally
and they are earning larger shares and growth in economy.
Social entrepreneurship: these are more like non profit organisations and they work
for social causes and provide social services to the society. They solve the problems of
society. Their motive is not to earn profit but to make society a better place and wants to
work for their betterment. They does not float their shares in the market . they usually works
for education, environmental causes and for safety and health purposes.
Example: When it comes to social entrepernuership there can be no better examle
than Oprah winfrey. She is an actress and businesswoman who is known for her philanthropic
activities. She is recognised as a greatest black philanthropist existing at present. There are
other businesses man as well who have started NGO to help people in need. These activities
are organised as a measure to fulfill their obligation toward the society.

P2 Differences and similarities among the lifestyle entrepreneurship and social
entrepreneurship.
Entrepreneurial ventures can be determined by the nature of business they have and
by their size and type of business. These entrepreneurs have certain similarities and
difference on the basis of their roles and objectives.
Role: they work on different levels in different sectors on the basis of large, small,
and scalable entrepreneurial ventures. So that’s create a differentiation amongst these. Small
scale entrepreneurial ventures plays a role in providing all the necessary products and
services for the society on the ground level and have limited profits(Stokes ,Wilson and Wilson
2010). Whereas on the other side scalable entrepreneurial ventures works on higher level and
works for more profits and reduce the efficiency of work. These large companies do the
research part to analyse the needs and demands of the customers but they somehow lacks in
the research part in context of efficiency and reliability of the actual needs of customers. they
differ on the basis of characteristics.
Objectives: almost all the independent private enterprises such as small, lifestyle, and
established business organisations works for the objective of achieving profit maximisation,
by reducing the cost of production and serve products and services to the customers on high
margins to earn higher profits. They as their objective wanted to have greater market shares
and high visibility in the market. .they look for the opportunities in the market and invest in
the most appropriate one for the purpose of getting bigger share in the market. Most of the
small scale firms looks for the opportunity for their growth and and for share in the market
also with the motive of earning higher profits and as they are new to the industry they have to
go with lots of formalities that occur when they are new in the market(Storey 2016). They have
to go with the entry level difficulties. they have to fought for their share in the market and
gets the rivalry of already existing firms.
Similarities and difference between Social and lifestyle ventures:
Basis
(Similarities)
Social Entrepernuers Lifestyle Entrepreneurs
Value Creation This is a major similarities
among all the entrepreneurs
that they aim to create
something of value which can
be offered to the market.
Lifestyle entrepreneurs also
wish to create something of
value which fulfills their
passion.

Example: the creation of a
mobile application which
leads to provision of medical
consultancy through phone is
a major example of value
creation.
Example: Tim Ferris is a
lifestyle enterprenuer who is
a best selling author who
defines living life on own
terms. He provides with
strategies which can be
adopted by business people.
Mindset The another similarity
between social and lifestyle
entrepreneurs is that they are
not favoured with pursuit of
money and aims to utilise
opportunity to serve the
market.
Lifestyle entrepreneurs are
also not concerned about the
money. They are also not
concerned about the money
aspect of entrepreneurs which
is similar with social
entrepreneurs.
Basis
(Differences)
Social Entrepernuers Lifestyle Entrepreneurs
Goals The goals with social
entrepreneurs is that they aim
to fulfill their purpose of
existence by doing better to
the society.
The goals of such poepole is
to create something which
possess social value rather
than economic value.
Where as the goals with
lifestyle entrepreneurs is that
they aim to fulfill their
passion and craving of
adventure which is being
fulfilled by them.
The primary goal of social
entreprenuer is to go after the
things they are passionate
about and believes money
will follow them. They keep
involving themselves in this
domain and does not ends
with success of a venture.
Marketing Communication The opting of marketing
communication is distinct in
case of social entrepreneurs
as they employ organic
tactics of marketing which
are social media and word of
mouth.
These businesses does not
possess funds to adopt
aggressive tools of marketing
and generally rely on word of
The lifestyle enterprenuers
employ aggressive marketing
tactics so that more and more
people are aware about their
undertaking.
Lifestyle enterprenuers utilise
lifestyle approaches of
marketing they possess
adequate knowledge about
their target market and know
areas which are to be

Basis
(Differences)
Social Entrepernuers Lifestyle Entrepreneurs
mouth. targeted.

M1 Investigating a diverse range of entrepreneurial ventures
Any organisation that places innovation and opportunism at their first preference in
order to produce economic value are known as Entrepreneurial venture. There can be diverse
range of enterprenuerial ventures in the market. The factors which makes an impression while
opting for a type of entrepreneurship relies on the goals and mindset of enterprenuer. The aim
of some entrepreneurs is to earn profits so they incline their efforts towards business
entrepreneurship. Whereas there are people who are looking to resolve problems of the
society through their value creation and lastly it is passion of some to pursue entrepreneurship
which determine their selection or types of venture opted.
D1 Examination of scope development and growth of these ventures
The UK become most entrepreneurial economy in Europe. In UK entrepreneurs
manage innovations, risk, uncertainty and growth. In UK government recognise that
entrepreneurship is a mechanism of developing employment, it increase industry
competitiveness and wealth, and reduce poverty. Such small businesses in context of United
Kingdom carry high scope of growth and development as they are able to provide suitable
climate for such ventures to grow and enhance their operations in the country. The
government have initated variety of loans and relaxations scheme so that these business are
able to enhance their scope of operations and ultimately positively impacting economy of the
country.
P3 Impact of micro and small business impact on the UK economy
Small and micro business has contributed growth to the U.K economy .Most of small
business are Most of the people in country are dependent upon thier business in the small
and medium segment. This nation have recently opted out of European Union which have
caused a disruption in the normal functioning of enterprises. The favourability of economic
environment of the country makes it easier for small enterprises to carry out their operation.
The performance of the U.K economy is the key to the assessment of the effects of the brixit
on the UK economy.( Harvard Carraher 2015) The UK wanted to leave the European Union
and does not want to follow the rules and regulations of the European Union. The impact on
small business from the gross domestic products is wider because they were the life cell of
the U.K economy. Falling the gross domestic product will have an impact on the small
business in terms of the overall activity of the organisations and the consumers who are
buying the products and the services.(Perils-Ortiz M 2015) The growth of the small business
were achieving the height of success. The small business were facing decline in the

construction and the manufacturing fields. Because the weaker section were boosting towards
the growth and they were not beneficial to the economy. Small businesses are important in
the fields of operations as compare to the large firms. Smaller firms may struggle for greater
investment in terms of money or bank loans. Falling in the GDP mean that the small
businesses have to strive in particular if they import the products from the overseas. This may
benefit the exporters and the manufacturing industry in the UK.
Small business is the backbone of the U.K economy and they are achieving success in
the growth and the development economy, opening new market segments and creating jobs
and thus they are contributing towards the growth of the economy. Small businesses have
brought innovation in the product and thus they have encouraged competition in the market
place. The current statistics of the nation sates that these small and medium enterprises cover
a staggering 99% of the total businesses in the country. There is a continuous increase in the
number of these small scale businesses. The data clearly depict their importance for the
United kingdom. In terms of turnover, economic contribution of such enterprises accounted
for 1.6 trillion euros which is 47% of the total output of private sector in the context of a
nation. Around 24.3 million people are supported in thier livelihood due to these small and
medium business enterprises. The level of innovation also encouraged in the country with the
help of small businesses enterprises. It can be assessed from the above data that such business
consitute as an important part of the country as are necessarty to ensure in country achieving
a competent postion among other nations. It is essential that is smaller micro business have
the essential knowledge about the market to ensure the customer satisfaction and their
retention in the market for longer period. The government also have taken up several
measures which ensure that small and medium-sized businesses continue to grow their
operations through relaxation in taxes and providing subsidies in respect to the
country(stewart, 2014).

(Source: Importance of small businesses to UK economy, 2014)
From the above graph it can be concluded that micro and small business are
continiously achieveing growth in economy and thus they are able to provide employment
opportunities to people. There can be considerable constribution of small businesses can be
seen in turnover of the country as well.
P4 Importance of small business and business start-up to the growth of the social economy:
Small business and business start-ups have contributed significantly to the growth of
the social economy in the way that they have brought growth and innovation to the
community in which there business has been established in the economy. Small business and
business start-ups have stimulated to the economic growth by providing the opportunities for
employment so that they can fulfil their basic needs and the needs of their family members
(Carland, Carland and Stewart, 2015). This is mentioned to be as most important aspect
through which social economy of a country is served through entrepreneurship.
Small business and business start-up search for the people who have talents who will
assist in providing their input in development of a new product or innovation of the existing
line-up. Large business set-ups also depends on the small business within the same locality
because large firms depends on the small business for the completion of the various types of
the business projects through outsourcing. The small business which are generating higher
revenue means that their business will pay higher tax rates, including the local taxes.
Small business has given contribution to the social economy by using sustainable
resources for the growth and the development of the economy. Small business and business
Illustration 1: Importance of small businesses to UK economy

start-ups not always stay small they grew bid with the time and the place where the products
have capture the market. Large cooperation such as Nike and Ben started their business on a
small scale with small business start-ups that small business grew. They became the major
players in the market and the international market place because they satisfied the needs and
wants of the customers in terms of quality of their product manufactured.
Small business that grew into large business setups often remains in the same
community in which their business was initially established and this way they focuses on the
social economic aspects of the economy. Such large organisation emphasizes on giving back
to the society through their efforts in coporate social responsiblity.
Small business allows the economy to work. The main reason is that they allow the
economy to work with more effectively and efficiently so that there will be optimum
utilization of the resources in the economy. When there is competition in the economy the
competition helps them to increase their efficiency because every business wants to be
superior to the another one. No market in the economy can survive without business.(P and
Haugh 2012) The most important reason why the small business are important because they
are a vehicle for the exchange of the goods and services in the market place and especially in
the complex modern societies a person cannot rely on the family to survive. Small businesses
have achieved success in the way that they have earned profit and thus their contribution
towards the social economy.
M2 Evaluation of difference between small and medium-sized businesses
The major grounds on which differences betweeen small, medium and mega
coraporations can be identified on grounds such as profitability, employment level and
market area which is covered by them. A small business comprises of employees under 50
whereas workforce of a medium enterprise constitutes under 250. Any number of employees
over 250 are taken under large busisness corporations. The profit margin of these small and m
medium enterprises is comparitively lower as they are not able to achieve economies of scale.
The small and medium caters a smaller area when compared with large organisation. Mega
corporations carry a reach outside geographical boundaries of a nation which may not be the
case with small and medium-sized ventures.
D2 Examining impact of small businesses at different level

The small businesses carry an impact on the the various level in terms of society. At the local
level they provide employment to capable people in an society at the same time fulfilling
their needs in an cost effective and innovative manner. At the regional level they are able to
provide basic infrastructure to people which influences government to provide connectivity
of these areas to urban cities. It influences development and upliftment of backward areas of
a country. Lastly the contribtuion of such enterprises at the national level can be ascertained
from turnover and GDP of a country which are influenced in an positve manner.
TASK 3
P5 Characteristic of Elizabeth Gooch and Tom mercer
They was best in the financing field and they know that how to invest money on what
type of work or on a business (Harvard Burns, 2010)
They are also know very clearly that how to start and where to start and what things
are to be started that are to be good for start a business.
Elizabeth and Tom have the one thing same that is their forces on their aim to start
their own business and started their work facility for others. They have the quality to make
their dreams true by hard work. They are very strait to their work.
Traits and Skills of Elizabeth Gooch and Tom Mercer
Frist traits to start their business is that how they arrange funding or initial capital for
their business but for this traits they have the skill of presenting their ideas in real very well
(Harvard Storey, 2016). The another problem is to where from start their business because
in the other businesses the business owner have their personal manager to handle this type of
traits but in entrepreneurship the entrepreneur is the only owner and founder and manager for
their new started idea work.
The main thing to start their business is to firstly what they make a good product for
their customers that they use it for their consumption and useful for them. They make their
ideas possible for that and make the best products (Harvard Obeng, Robson and Haugh,
2014). In their journey they have faced many challenges and face them and solve them by
their skills.
They are different from Business Managers
In business managers they have the team of people for different field and for different
work but in Elizabeth and Tom’s work they have only the persons for start their work so they

have to be knowledge of their field work and they did their work very well on their own
position. In business, managers have people for all type of work but in entrepreneurship they
don’t have people for all their work.
P6 Entrepreneurial personality and mind-set
Tom mercer think about for a healthy breakfast and make it a product into the hand of
key consumers and started to setup it for their business. He always thoughts about his
business and looking always for setup a stall for his pop-up stall (Harvard Carraher, and
Paridon, 2015). After a stall is stated successfully he build up his MOM team up for its stalls.
On the successful of his one stall his started his another stalls for his business by take its
customers feedback he is motivated to open his stalls in many places and one by one he
started his 10 stalls successfully. After the success of their stall they are inspired for making
some healthy thing of their foods and make some successful experiment by some ingredients.
Now they have the positive feedback from their customers and continuously make them
order.
Elizabeth from its high school she is interested in computer programming as the result
of it she started her first business selling C++ compilers to Chinese universities. From here
she thoughts about her business and started use of her stipend in computer lab with Ph.D.
candidates and dean of the engineering school. After that she field her first patent on a
wearable drug-delivery. She use her tuition money as seed funding for a consumer healthcare
technology company. All these work of her present her entrepreneurial personality (Harvard
Sahut and Peris-Ortiz, 2014). Her goal was to make health information accessible to all
people at any time so that risk of disease could be detected early on for this she incorporated
the company as Theron’s and rented a basement of a college. For starting her company she
raised fund and the revenue by her company she used the revenue for her other investment.
M3 Different argument related to entrepreneurial characteristics
There have been lot of arguments relating to entrepreneurial characteristic. It has
always been a debateable issue whether they characteristic are possessed by an individual
since birth or they can be developed. It has been suggested that education and study carry a
way with anything and such characteristics can be developed. Heredity plays a good deal but
a wide deal of characteristics of an individual can be nurtutred with right education.
D3 Analysis of characteristic trait, skills and motivational drivers of successful entrepreneurs

Threre are certain trait and skills which are possessed by all the successful
entrepreneurs is that they are optimistic no matter what the circumstances are. The optimism
of entrepreneurs is supported by realistic or practical nature which help them to assess
whether this endeavour will be successful or not. They have the capablity of formulating
decision at a rapid pace and problem solving capacities. The major examples who possess
these similar characteristic are Richard Branson and Steve jobs. The passion to turn a startup
into a profitable business is the biggest motivator to entrepreneurs.
TASK 4
P7 Entrepreneur background and experience
The background, experience and education play a crucial role in fostering and
hindering growth of entrepreneurship in an individual. It is the passion to do something big
which is driven spirit when it comes to entrepreneur. Referring to the case study, Elizabeth
Gooch is one of the most successful entrepreneur in the country. She have been successful in
creating a operations management software to redefine manner in which operations are
carried out in business organisaiton. The access to quality education helped her to find jobs at
multinational corporations. The passion to start her own business irrrespective of education
and background played its part. It was her optimisim that she borrowed money from friends
and family to take up her own venture. But before venturing into enterprenuership she aimed
to understand dynamics of the market by working with a multination corporation. From this
case study it can be identified that education and experience both are significant but the major
role is played by the passion to create something of her own. She is a perfect example of
learning through experience and utiltising the same to build something of her own.
The another example which is to be considered is that is of Tom Mercer. He had
access to quality education and experience as consultant with Bain and Co. He felt the need
of a outlet which can serve healthy breakfast. It was his determination that he stayed awake
all night to prepare healthy breakfast to visitors. In such a venture education takes the back
seat. It is the culture and passion that drives an individual to pursue his cravings and
establish a profitable business. Referring to this case study, background of a person led to
take up enterprenuership. The role which education and experience have to play is minimal as
the optimistic nature and determinants are major contributors to success.
M3 Entrepreneurial characteristics of Elizabeth Gooch and Tom Mercer

Elizabeth Gooch CEO of the eg solutions and Tom Mercer was pioneer associated.
Tom Mercer and Elizabeth Gooch both are best leader in their fields. Elizabeth Gooch has
impressive communications skills that help increase customer base and interaction with staff.
Both Elizabeth Gooch and Tom Mercer carries an active participation in business aims to
influence culture of an organisation. The entrepreneurs able to manage their performance
effectively, Tom Mercer and Elizabeth Gooch are self-driven employees who does not have
any supervision any guidance from any one and they manage their own performance. They
are both accountable towards their actions and aims to supervise crucial task themselves.
They both are can not blaming others for failures they take responsibility of their work.
D4 Impact of personal background and experience in context of Donald Trump and Jack Ma
The another example which can be undertaken is of Jack Ma. The founder for Alibaba
is one of the renowned billionaire. After being continuoulsy rejected from 23 jobs, it was
The optimistic nature of him that helped in attaining success in entrepreneurial world. Born
of a poor family Jack did not have access to quality education which is in contrast with
donald trump whose father had an established real estate business. The background and
quality education does not made any impact on the entrepreneurial spirit and desire to achieve
somethhing help in creating one of the biggest online wholesale portal in the world.
CONCLUSION
As per the above report the entrepreneurs are basically the combination of lots of
various factors that are belong in the atmosphere within him. They are the factors that belong
within him and outside in the atmosphere. The factors within him comprises of personal
barriers such as his behaviour and attitude that could bring fosters and hindrance at the time
of result. And the other factors in the atmosphere like social and cultural factors. Other
factors such as where he belongs to his family and the national factors could hamper and alter
around the enterprise. The factors including the characteristics and skills of an entrepreneur
defines what kind of entrepreneur he will become. All these factors must be keep under
consideration while the decision are made regarding the company. To conclude this for
managing the small business characteristics of entrepreneur are very important and have
worth of making them earn higher profits.

REFERENCES
Books and journal
Storey, D.J., 2016. Understanding the small business sector. Rutledge.
Burns, P.2010. Entrepreneurship and small business: Start-up. Growth and Maturity. Palgrave
Macmillan.
Carland, J. C., Carland, J. W. and Stewart, W.H., 2015. Seeing what’s not there: The enigma
of entrepreneurship. Journal of small business strategy. 7(1). pp. 1-20.
Carraher, S. M. and Paridon, T.J., 2015. Entrepreneurship journal rankings across the
discipline. Journal of small Business Strategy. 19(2). Pp.89-98.
Colombo, M.G. And et al., 2012. Introduction: Small business and networked innovation:
Organizational and managerial challenges. Journal of Small Business Management.
50(2). pp.181-190.
Lee-Ross, D. and Lashley, C., 2010. Entrepreneurship and small business management in the
hospitality industry. Routledge.
Obeng, B. A., Robson, P. and Haugh, H., 2014. Strategic entrepreneurship and small firm
growth in Ghana. International Small Business Journal. 32(5). Pp.501-524.
Sahut, J. M. and Peris-Ortiz, M., 2014. Small business, innovation, and entrepreneurship.
Small Business Economics. 42(4). Pp.663-668.
Schaper, M.T. And et al., 2014. Entrepreneurship and small business.
Stokes, D., Wilson, N. and Wilson, N., 2010. Small business management and
entrepreneurship. Cengage Learning EMEA.
Storey, D.J. and Greene, F.J., 2010. Small business and entrepreneurship. Financial
Times/Prentice Hall.
Storey, D.J., 2016. Understanding the small business sector. Routledge.