Entrepreneurship and Small Business Management - McKinsey & Company Assignment

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
Covered in Brochure...............................................................................................................3
TASK 2............................................................................................................................................3
Covered in Brochure...............................................................................................................3
TASK 3............................................................................................................................................3
P5 Characteristic traits and skills of successful entrepreneurs that differentiate them from
other business managers.........................................................................................................3
P6 How aspects of entrepreneurial personality reflect entrepreneurial motivation and mindset5
TASK 4............................................................................................................................................6
P7 How background and experience can hinder or foster entrepreneurship..........................6
CONCLUSION................................................................................................................................7
REFERENCE...................................................................................................................................8

INTRODUCTION
Entrepreneurship is defined as willingness and capacity for managing, developing and
organising business venture by taking risks in order to achieve goal and objectives (Akehurst,
Simarro and Mas‐Tur, 2012). Person creating and running business are called entrepreneurs. The
individual should possess skills and capability in order to run business successfully at
marketplace. Small business management means the way of managing business and their
activities and functions in an effective and efficient manner. The organisation given for report is
McKinsey & Company incorporated in 1926 as management consulting firm. The main aim of
this report is to illustrate various range of venture types which are considered in entrepreneurial
and relationship to topology. There is impact of small business on local, national and global
economy. There are key aspects of entrepreneurial mindset along with various environments that
foster entrepreneurship.
TASK 1
Covered in Brochure
TASK 2
Covered in Brochure
TASK 3
P5 Characteristic traits and skills of successful entrepreneurs that differentiate them from other
business managers
For managing business, entrepreneur should possess several characteristics, skills and
traits to run organisation effectively and efficiently (Kuratko and Morris, 2018). The business
manager and entrepreneur both have different skills and quality to conduct activities of firm.
Person who has become entrepreneur has different skills and traits which they have gained from
their birth and some they have developed as they grew up. As each and every individual is
different from one another and in order to become successful person that have enhance their
traits and skills. With change in dynamic environment, it is very important for individual to alter
their existing skills in order to make their entrepreneurial venture successful at market. The skills
and traits of success entrepreneur at local and global level are described below:
Peter Jones

He is local entrepreneur whose characteristics, traits and skills are described below:
Characteristic Traits Skills
Passionate- It helps to become
success entrepreneur at
marketplace. In respect of
Peter Jones, respective
characteristic helps in staying
towards vision until get
achieved. Such characteristic
is different from business
manager because they are not
more attentive and passionate
for achievement of goals and
objectives.
Risk Taker- This helps
entrepreneur to come with
innovative ideas by taking risk.
In context of Peter Jones, he
believes in high risk which
assist in developing innovative
and unique business ideas.
This trait is different from
manager as they does not
prefer to bear risk for
operating business.
Creative Thinking- The
entrepreneur should have
innovative and creative
thinking for running business
activities and operations in
appropriate manner. Peter
Jones has high innovative
skills that aid in development
of products. This skill is
different from business
manager because they focus
more on result oriented and
follow tradition method for
conducting work.
Mark Zuckerberg
He is global entrepreneur whose characteristics, traits and skills are given below:
Characteristic Traits Skills
Innovative- In order to be an
entrepreneur, it is very
important to possess unique
and innovative character as it
helps in offering innovate and
attractive goods and services
to society. In context of Marks
Zuckerberg, he has innovative
characteristics so he came up
with an idea of Facebook
Situation Acceptance- In this
traits, entrepreneurs focus on
dealing with every situation arise
in front of them. They deal with
mistakes and failure arise in
business. In context to Mark
Zuckerberg, he has gone through
different situation of failure but
he never feel demotivated and
learned from those various
Decision Making- The
entrepreneur has intuitive
decision making skills
which leads them to follow
their dreams and work
which is liked by them. In
context to Mark Zuckerberg,
he came up with innovative
idea of Facebook and
achieve their goal and

which is used by worldwide
people. The respective
characteristic is different from
manager of business as such
people possess preserving
status in society.
situations. This type of trait is
different from business manager
because sometime manager
confront mistakes, failure, risks,
surprises and so on. They work
in planned manner.
objectives. Such skills is
different from manager as
they are focused towards
planned and calculative
things.
The social enterprise which is operating in United Kingdom is National Health Service
established in 1948 that provide health and social care services to the people. This provide health
services to people at free of cost. The main aim is to make disease free world by providing
proper health and care services.
P6 How aspects of entrepreneurial personality reflect entrepreneurial motivation and mindset
The entrepreneur has several characteristics, traits and skills in order to different from
managers. It assist in knowing about entrepreneurial mindset and motivation. The OCEAN
model is used in order to explain entrepreneurial personality which reflect entrepreneurial
motivation and mindset. It is as follows:
OCEAN Model
This is also called personality traits or five factor model (FFM) (Ratten, 2014). It assist in
knowing individual characteristics to run business in proper manner. They are described below:
Openness to Experience- This is used for defining depth and complexity of experience
and mental of person. It is called as intellect and imagination. The people possessing such trait
focus on trying new and innovative things and think out of box. This consists of imagination,
complexity, daringness, creativity, uniqueness and so on. The person having positive traits leads
them to meet new people and enjoy work. Similarly, on other side, person with low or negative
openness to experience leads them to stick to same routine work.
Conscientiousness- This is referred as impulse and tendency to control act in acceptable
way and their behaviour for accomplishment of goal and objectives (Sahut and Peris-Ortiz,
2014). They are slow in making plans, organises it and focus on working with rules and
regulations. It considers reliability, hard working, ambition, planning and many more. Individual
having high conscientiousness are determinate and successful whereas with low
conscientiousness are impulsive and fighty in nature.

Extroversion- Under this traits, person can be extroversion and introversion. In
extroverts they interact whereas introverts remain within themselves. It considers energy, social
confidence, assertiveness and others. In case of high extroversion leads in grabbing opportunity
whereas low extraversion people do not interact with anyone and are reserved nature.
Agreeableness- It is defined as construct which helps in doing interaction with other
people that includes trust, tact,politeness, patience, kindness, loyalty and so on. The individuals
with high agreeableness prefer more respect whereas low traits people trust less to others.
Neuroticism- It is referred as comfortable and confidence to own skin than others people.
It includes emotional stability and general temper that possess traits of awkwardness, instability,
insecurity and others. The individual who possess low neuroticism feel less confident, reserved
in nature whereas high neuroticism are low esteem and worry about each and every things.
TASK 4
P7 How background and experience can hinder or foster entrepreneurship
The experience and background possessed by individual impact their life in hinder and
foster form (Shaw, 2014). This helps in getting growth and success for their personal and
professional life. Similarly, on the hand, it can leads to hinder for their growth in order to achieve
goal and objectives. They are described below:
Peter Jones
Peter Jones was born on 18th March, 1966 as United Kingdom. He was brought up at
Berkshire with family. He is known as American Investor where he has made investment in BBC
organisation. He was from poor family though he carry ambitious to become multi-millionaire.
The entrepreneur journey of Peter Jones started by opening his own coaching school for tennis
game. When he was 20 years old, he started computer business that made him to buy BMW,
house. With his own mistake, he failed many times and in year 1998 he formed own mobile
phone group and employing large number of people who is generating 250 million pounds. He
possess out of box thinking skills for performing work.
Mark Zuckerberg
He was born on 14th May, 1984 who has completed education from Harvard University.
He is American technological entrepreneur and founder of Facebook. His family background
was well of which leads him to develop career. He has introvert nature and spend more time with

family and doing other activities. From the initial stage, he was interested in software and
technology and his family supported him a lot. This helped him to create sound career and
become successful entrepreneur at global level. He has innovative and creative skills which
helped him to perform things differently and in unique way.
CONCLUSION
The mentioned report summarised that entrepreneurship plays an effectual role for
improving performance of firm in proper manner. It is run by entrepreneurs who uses innovative
ideas for producing new products and services. The different types of topology such as growth
and lifestyle which are related with various entrepreneurial ventures. SME helps in creating job
employment opportunities for people which leads to growth is economic of nations. Both
business and start up assist in improving standard of individual along with rise in economy of
nations. The entrepreneur should possess traits, skills and characteristics for operating and
running their business. For mindset of entrepreneurial, personality model is used to know minds
of individuals. Hinder and foster assist people for becoming successful entrepreneur.

REFERENCE
Books and Journals
Akehurst, G., Simarro, E. and Mas‐Tur, A., 2012. Women entrepreneurship in small service
firms: motivations, barriers and performance. The Service Industries Journal. 32(15).
pp.2489-2505.
Audretsch, D., 2012. Entrepreneurship research. Management decision. 50(5). pp.755-764.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Carsrud, A. and Brännback, M. eds., 2014. Handbook of research methods and applications in
entrepreneurship and small business. Edward Elgar Publishing.
Donckels, R. and Miettinen, A., 2019. Entrepreneurship and SME research: on its way to the
next millennium. Routledge.
Julien, P. A., 2018. The state of the art in small business and entrepreneurship. Routledge.
Kuratko, D. F. and Morris, M. H., 2018. Examining the future trajectory of
entrepreneurship. Journal of Small Business Management. 56(1). pp.11-23.
Ratten, V., 2014. Future research directions for collective entrepreneurship in developing
countries: a small and medium-sized enterprise perspective. International Journal of
Entrepreneurship and Small Business. 22(2). pp.266-274.
Sahut, J. M. and Peris-Ortiz, M., 2014. Small business, innovation, and entrepreneurship. Small
Business Economics. 42(4). pp.663-668.
Shaw, G., 2014. Entrepreneurial cultures and small business enterprises in tourism. The Wiley
Blackwell companion to tourism, pp.120-131.
Smallbone, D., Welter, F. and Ateljevic, J., 2014. Entrepreneurship in emerging market
economies: Contemporary issues and perspectives. International Small Business
Journal. 32(2). pp.113-116.
Thomason, S. J., Simendinger, E. and Kiernan, D., 2013. Several determinants of successful
coopetition in small business. Journal of Small Business & Entrepreneurship. 26(1).
pp.15-28.
Vanevenhoven, J. and Liguori, E., 2013. The Impact of Entrepreneurship Education: Introducing
the E ntrepreneurship E ducation P roject. Journal of small business management. 51(3).
pp.315-328.
Wach, K., 2014. Europeanisation of Entrepreneurship Education in Europe–Looking Back and
Looking Forward. Horyzonty Wychowania. 13(26). pp.11-31.
Online
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