Entrepreneurial Characteristics and Environments

This report discusses the key aspects of an entrepreneurial mindset, including the characteristic traits and skills of successful entrepreneurs. It also examines the different environments that foster or hinder entrepreneurship and analyzes the influence of personal background and experience. The examples of Elizabeth Gooch and Tom Mercer are used to illustrate these concepts.

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................2
LO3 Determine and assess the key aspects of an entrepreneurial mind-set....................................2
P5: Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers.......................................................................................2
P6: Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mindset.............................................................................................................................4
M3: Explore and examine different lines of argument relating to entrepreneurial
characteristics.........................................................................................................................4
D3: Analyse the characteristic traits, skills and motivational drivers of successful
entrepreneurs, supported by specific examples......................................................................5
LO4 Examine the different environments that foster or hinder entrepreneurship...........................5
P7: Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship.....................................................................................................................5
M4: Analyse the link between entrepreneurial characteristics and the influence of personal
background and experience to specific successful entrepreneurs..........................................6
D4: Critically evaluate how background and experience influences entrepreneurs, both
positively and negatively, by comparing and contrasting examples......................................6
Conclusion.......................................................................................................................................7
REFERNCE.....................................................................................................................................8
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INTRODUCTION
Entrepreneurship can be defined as a process of creating something new and innovative.
Main aim of every entrepreneur to bring a change in society with their innovative idea. They
want to impact life of people in a positive manner (7 essential traits of an entrepreneur, 2020).
In present report there is discussion of skills and traits of a successful entrepreneur that actually
driven behaviour towards creation of a successful idea into a business venture.
LO3 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.
There are certain key skills and traits that help a individual to become a successful entrepreneur
as discussed below:
Elizabeth Gooch Tom
Traits  Bringing change:
Entrepreneur posses a
zeal to bring some
positive change in the
society. Elizabeth
posses a instinct that
she was not satisfied
the way that was
being adopted by
organisations for
managing their
workforce so she
decided to start her
own venture and then
further manage in the
way she wanted it to
be actually done.
 Innovation: It is a
Experimentalist: Tom had a
nature of experimentation; it
was the effort that he made
towards doing some new
experiments of having a
alternative of breakfast so
that time could be saved
which lead to change that he
invented.
Innovation: the innovative
nature of Tom actually made
him work towards a new
change that he thought to
bring in the society by means
by of using of some regular
ingredients and then
converting into a nutritional
shake that could fulfil the
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factor that is related
with the aim to bring
some innovation in
the society. It is very
important Trait that
was present in
Elizabeth which
forced her to quit her
bank job and then
bring some positive
change in the way
employees are being
managed in a
organisation.
breakfast requirements of a
individual.
Skills Motivator: Elizabeth is
motivation for many
entrepnusr who are having a
innovative idea but are afraid
of losing their present normal
job and starting something
new (17 skills of a
entrepreneur, 2020). So for
every entrepreneur
motivating themselves is a
big challenge that is very
necessary for achievement of
business objectives.
Focussed: it is very essential
for a entrepnusr to be
focussed towards their
objective. Tom was a person
who was completely
dedicated towards
understanding customer
response for which he made
sure he is taking all efforts
and engaged his friends also
in his work.
Characteristics Elizabeth is a team player.
She was always believed in
having a workforce that is
cooperating enough in
Risk taker: Tom was a high
risk taker as he was not
afraid of making investment
and efforts in understanding
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achievement of their overall
business objectives. So,
entrepnusr always make
efforts in taking their team
together and then considering
every little contribution made
by a single individual.
the people response for his
innovation.
There is always a difference between managers and Entrepreneurs as discussed below:
Basis Successful Entrepreneurs Business Managers
Focus The focus in case of entrepreneurship is
making their venture successful.
The focus is of managers to have a
smooth functioning of organisation for
which they are working.
Status Entrepreneur is the owner of their
venture.
Manager cannot be owner they work
as a employee for a firm.
Motivation Entrepreneur has the sole objective to
maximise their overall vision and not
monetary profits.
Managers have to perform their duties
and responsibilities assigned in course
of business; their sole motive is to
work for ensuring efficiency in
functioning of employees.
P6: Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mindset.
There are certain aspects of entrepreneurial personality that is part of entrepreneurial
motivation and their mindset.
Entrepreneurial motivation & mindset: In the present instance it can be observed clearly
that the overall personality of Elizabeth Gooch was always to bring some positive change in the
society. She always believed that there are always various opportunities so she looked overseas
for such opportunities while to cut the business cost by 1.2 million in the year 2008.
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She had a mindset of focussing of strategy and not believing in failure. Such mindset leads
to sheer determination. She said that many times it was also regarded as stubbornness but
actually such feature lead to her name in the seventh most successful entrepreneurs by
Managements today.
On other hand, Tom Mercer, always had a min ste of starting a innovative business idea.
His motivation acme from a problems that he faced personally that lead to development of a idea
smoothie of oats. Further he had to focus on positive response from its target market. So he
focussed on testing and then implementation of the idea that lead to creation of his
entrepreneurial venture.
M3: Explore and examine different lines of argument relating to entrepreneurial characteristics
Entrepreneurial characteristics play a key role in development of a successful venture.
Such as in present case the Elizabeth had a sheer determination and was not afraid from failure.
Similarly Tom Mercer, had a characteristics of innovation and working towards something new
and different so he waited until he didn’t posses any such idea. After only he had such idea he
stated his venture.
D3: Analyse the characteristic traits, skills and motivational drivers of successful entrepreneurs,
supported by specific examples.
There has been several traits skills and characterises that actually make a normal individual
different from aspiring or a successful entrepnusr (5 characteristics of a successful entrepreneur,
2020). So, from the present two cases of Elizabeth and tom who both are top entrepreneur who
actually started their business from a very small scale. Toady has expanded too many different
occasion of world. So some of the skills and trait that is making them different are innovative
nature, self motivation, sheer determination and the willingness to bring change are some of the
key essential that actually drive their behaviour towards creation of a venture.
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LO4 Examine the different environments that foster or hinder
entrepreneurship
P7: Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship.
Background: Background is helping a individual in fostering their entrepreneurial nature.
Such as it can be seen from the example, of Elizabeth as she become founder of EG solutions.
Her background was always fostering her towards doing something innovative and different.
Such as, Elizabeth developed software to help in her operational intelligence.
In case of Tom Mercer, he always had a dream of setting his own business (Nine years of a
successful entrepreneur, 2020). After graduating from Cambridge University, he was always
interested in developing something as a lunch or breakfast option but he was not able to get
something innovative.
Experience: The overall experience of Elizabeth was to focus on making improvements on
their efficiency and operational performance. So, she felt of leaving her job of HSBC bank so
that they can world for finding of large firm’s so that they are able to utilise competencies of
their staff. The personal experience she faced actually lead to development of her own
entrepreneurial venture.
Tom Mercer and his experience that he didn’t had enough time to prepare his breakfast so
he thought of preparation of “Oatie Shake” will help in preparation of yoghurt fruits and oats
which will help people in developing an alternative for their breakfast options.
M4: Analyse the link between entrepreneurial characteristics and the influence of personal
background and experience to specific successful entrepreneurs.
There always exist a link between entrepnusr and their characteristics. It can be seen from
the example of tom mercer as when he as a student actually find it difficult to make breakfast and
it was a big issue that actually forced him to work towards finding a solution to it by his own
personalised recipe. So, the innovative and hard working is a characteristic of Tom that was
fostered by his innovative nature and zeal to do something different.
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D4: Critically evaluate how background and experience influences entrepreneurs, both positively
and negatively, by comparing and contrasting examples
The background of every entrepreneur has a impact both in a positive and negative manner
(Background of a entrepreneur, 2019). It can be seen from the example of Elizabeth that he did
not have a strong financial background so it leads to problems while arranging funds for her
venture. So there was a serious issue of arrangement of funds for making the necessary changes.
Along with this in case of tom mercer also he didn’t had enough resources so he has to start his
venture from a very small scale like selling shakes bottle on stations and after as, venture get
popular then from the earning he actually invested it and then expanded it to other different
locations.
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Conclusion
From the above learning it can be said that there are various types of entrepreneurial
ventures that are part of every economy but small and medium business are playing a major role
in increasing the GDP growth. Each entrepreneur has certain skills, traits and characteristics that
actually foster their behaviour towards converting an idea into successful business opportunity
that could benefit them, all the stakeholders and people living in society by the innovative
change.
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REFERNCE
Books and journal
Online
7 essential traits of a entrepreneur, 2020, [Online] Available
through<https://www.ideatovalue.com/lead/eric-gordon/2017/12/7-essential-skills-
required-succeed-entrepreneur/>
17 skills of a entrepreneur, 2020 , [Online] Available
through<https://www.entrepreneur.com/article/242327>
Background of a entrepnusr, 2019, [Online] Available through<
https://link.springer.com/chapter/10.1007/978-3-663-09252-0_5>
Nine years of a successful entrepreneur, 2020, [Online] Available through<
https://www.monster.com/career-advice/article/entrepreneur-traits>
5 characteristics of a successful entrepreneur, 2020, [Online] Available
through<https://www.investopedia.com/articles/personal-finance/101014/10-
characteristics-successful-entrepreneurs.asp>
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