Entrepreneurship and Small Business Management

This report analyzes and evaluates different aspects of entrepreneurship and small business management, including types of entrepreneurial ventures, impact of small businesses on the economy, required aspects for entrepreneurship mindset, and environmental factors for fostering and hindering entrepreneurship.

Running head: ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
Entrepreneurship and Small Business Management
Name of the Student
Name of the University
Author’s Note

1ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
Executive Summary
The main aim of the report is the analysis as well as evaluation of different aspects of
Entrepreneurship and the management of Small Businesses. The first part of the report involves
in the explanation of four major kinds of entrepreneurial ventures along with their explanation as
per the entrepreneurship typology. The later part of this section draws the present differences
among these four types of entrepreneurial ventures. After that, the report involves in the
assessment of the impact of the small businesses on the economy of United Kingdom with the
help of the analysis of relevant data and statistics. The next part of the report takes into
consideration the analysis of the required mindset, characteristics and skill sets of a successful
entrepreneur. The last part of the report assesses the effects of different environmental and other
factors in fostering or hindering entrepreneurship.

2ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
Table of Contents
Introduction......................................................................................................................................3
1. Entrepreneurial Ventures.............................................................................................................4
Different Types of Entrepreneurial Ventures and Their Relation to Typology...........................5
Similarities and Differences between Entrepreneurial Ventures...............................................10
2. Assessment of the Impact of Small Businesses on the Economy..............................................12
Interpretation of How Micro and Small Businesses Impact on the Economy...........................13
Importance of Small Businesses and Business Start-ups to the Growth of Social Economy....16
3. Determination and Assessment of the Key Aspects of an Entrepreneurial Mindset.................18
Determination of the Characteristics, Skills and Traits of Successful Entrepreneurs...............18
Assessment of How Personality Reflects Entrepreneurial Motivation and Mindset.................21
4. Examination of Different Environment to Foster or Hinder Entrepreneurship.........................23
Examination of How Background and Experience can Hinder or Foster Entrepreneurship.....23
Conclusion.....................................................................................................................................25
References......................................................................................................................................27

3ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
Introduction
In today’s evolving business world, Entrepreneurship is considered as one of the major
aspects as entrepreneurship can be considered as the process to design, launch and run new
businesses; and the people who create these new businesses are called the Entrepreneurs1. In the
simple words, entrepreneurship is the act to create businesses with the aim to generate profit. On
the more specific basis, the meaning of entrepreneurship involves an entrepreneur taking some
specific actions with the aim to change the world. In the process of entrepreneurship, the
entrepreneurs take a specific idea with the aim to execute it in order to give it the form of a
business2. For this reason, entrepreneurship is considered as all about the execution of the ideas.
Hence, according to the definition of entrepreneurship, it is the ability and willingness for
developing, organizing and managing a business venture along with the risks involved so that
profit can be made. In this context, it needs to be mentioned that the entrepreneurs start their new
businesses in the form of small businesses3. For this reason, the entrepreneurs are needed to take
into account all the aspects of managing their small businesses. Management of small business
demand the alignment as well as coordination of multiple activities and for this reason, it is
needed for the entrepreneurs to obtain the required management skills for the accomplishment of
the goals and objectives of the small businesses4.
1 Burns, Paul. Entrepreneurship and small business. Palgrave Macmillan Limited, 2016.
2 Drucker, Peter. Innovation and entrepreneurship. Routledge, 2014.
3 Kirzner, Israel M. Competition and entrepreneurship. University of Chicago press, 2015.
4 Schaper, Michael T., et al. Entrepreneurship and small business. 2014.

4ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
It needs to be mentioned that there are different types of small businesses and they are
considered as the entrepreneurial ventures. The presence of small businesses has major impact on
the economy of the countries as they help in improving the economic condition in different ways.
In the presence of all these aspects, the governments of the countries are taking major initiative
for the improvements of the small businesses5. The main aim of this report is the analysis and
evaluation of different aspects of the entrepreneurship and small business management. Different
parts of the report focus on different aspects of entrepreneurship like range of entrepreneurial
ventures and difference among them; analysis of the impact of the presence of small businesses
on the economy of the countries; analysis of the required aspects for entrepreneurship mindset
and analysis of different environmental factors for fostering and hindering the aspects of
entrepreneurship.
1. Entrepreneurial Ventures
It can be seen from the above discussion that an entrepreneur is a person involves in
starting and running the new businesses in the presence of limited resources and with the help of
effective planning; and this new business is regarded as entrepreneurial venture. It needs to be
mentioned that there is the presence of some specific types of entrepreneurial ventures can be
seen; and they are Survival Ventures, Lifestyle Ventures, Managed Growth Ventures and
Aggressive Growth Ventures6. The following discussion shows the analysis and examination of
these four types of entrepreneurial ventures.
5 Storey, David J. Entrepreneurship and new firm. Routledge, 2016.
6 Brooks, Alison Wood, et al. "Investors prefer entrepreneurial ventures pitched by attractive
men." Proceedings of the National Academy of Sciences 111.12 (2014): 4427-4431.

5ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
Different Types of Entrepreneurial Ventures and Their Relation to Typology
Survival Ventures: The main objective of this type of entrepreneurial venture is to ensure the
survival as well as meeting the financial obligations of the entrepreneurs. The engagement of
many start-up businesses can be seen with the survival ventures with the long-term aim to stay in
the business for making profits. There is not any hardcore obligation on the survival ventures to
get registered, and they do not have any business premise with few assets for conducing the
business operations7. There is not any scope for the process of re-investing in this kind of
entrepreneurial ventures due to the fact that they exist for ensuring the survival of the
entrepreneurs. The presence of push factors can be seen behind the establishment of this type of
ventures; and these businesses operate in highly competitive, price-based and undifferentiated
markets. It needs to be mentioned that there are certain characteristics of survival ventures; such
as cost cutting, laying off the employees, freeze of employment, the fear of the commitment to
the future plans, a mindset to prevent the present state of affairs and others. The presence of all
these aspects can be seen in survival ventures8.
Lifestyle Ventures: According to the point of view of economic theory, the main reasons for
establishing lifestyle venture is the understating of the business activities that the entrepreneur
prefers and to ensure a certain level of production activity that can ensure the sufficient amount
of income of the entrepreneur9. Thus, it can be stated that the lifestyle ventures provide the
entrepreneurs with a stable amount of income based on the workable model of business and a
7 Hiatt, Shon R., and Wesley D. Sine. "Clear and present danger: Planning and new venture
survival amid political and civil violence." Strategic Management Journal 35.5 (2014): 773-785.
8 Klotz, Anthony C., et al. "New venture teams: A review of the literature and roadmap for future
research." Journal of management 40.1 (2014): 226-255.

6ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
maintenance approach to the management. In this kind of entrepreneurial venture, there is a need
for modest amount of reinvestment in order to maintain the competitiveness in the local market
in which they operate. The presence of single location premise can be seen under this types of
ventures, but there is not any scope for business expansion. It has constant number of employees.
As this types of venture has limited capacity, the entrepreneurs face difficulties in achieving the
economies of operation. It needs to be mentioned that the good quality of lifestyle works as a
major motivation to the entrepreneurs for setting up this kind of entrepreneurial venture. For this
reason, the owners of this kind of venture have the tendency to work long hours10.
Managed Growth Ventures: The difference of managed growth entrepreneurial venture can be
seen from the above two entrepreneurial ventures. The adoption of a workable business model
can be seen under this kind of entrepreneurial venture. Under this venture, the main aim of the
entrepreneurs is to ensure the stable growth of the business over time; and this can be achieved
with the introduction of new product into the market, entry into new business market, steady
business expansion and others11. The presence of more than one location can be seen for this kind
of ventures with more number of employees as compared to the above two ventures. One major
characteristic of managed growth venture is ongoing reinvestment in the business in the presence
of continuous as well as moderate business growth and business development. In the presence of
9 Morris, Michael H., Xaver Neumeyer, and Donald F. Kuratko. "A portfolio perspective on
entrepreneurship and economic development." Small Business Economics 45.4 (2015): 713-728.
10 Henry, Colette, et al. "Entrepreneurial leadership and gender: Exploring theory and practice in
global contexts." Journal of Small Business Management 53.3 (2015): 581-586.
11 Birley, Sue, and Simon Stockley. "Entrepreneurial teams and venture growth." The Blackwell
handbook of entrepreneurship(2017): 287-307.

7ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
all of these aspects, more stability and less aggressiveness can be seen in this kind of
entrepreneurial ventures while running the business operations. In other words, the main aim of
the owners of this kind of venture is to manage different business operations in order to fetch
stable sales, profit and growth. The presence of large number of managed growth ventures can be
seen in the world12.
Aggressive Growth Ventures: This type of entrepreneurial venture is considered as gazelles. The
major characteristic of this type of venture is that they are largely dependent on technology in the
presence of strong innovation capabilities and these aspects help in ensuring exponential growth.
The majority portion of funding of this kind of entrepreneurial venture comes from equity
capital13. The launching of this kind of venture is driver by business opportunities as one of the
major aims of the founders is the creation of new markets. Aggressive growth entrepreneurial
ventures typically focus on the business expansion in the national and international market.
Often, this kind of entrepreneurial venture is considered as the candidates for IPO (Initial Public
Offerings) or business acquisition. In this context, it needs to be mentioned that this type of
entrepreneurial ventures required large initial investment and there is large scope for
reinvestment for their growth and expansion. The presence of some specific characteristics can
be seen in this entrepreneurial ventures; such as expansions of the business operations, specific
facilities like cash flows as well as credit line of finance, humans resource with the required
12 Grilli, Luca, and Samuele Murtinu. "Government, venture capital and the growth of European
high-tech entrepreneurial firms." Research Policy 43.9 (2014): 1523-1543.
13 Baum, J. Robert, Michael Frese, and Robert A. Baron. "Entrepreneurship as an area of
psychology study: An introduction." The psychology of entrepreneurship. Psychology Press,
2014. 33-50.

8ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
knowledge and skills and others. These factors are needed to be considered in aggressive growth
entrepreneurial venture14.
The term ‘Typology of Entrepreneurship’ is a general term that is used for providing
description of the classification of the types of entrepreneurial ventures. The following table
shows the typology of entrepreneurship based on the personal financial risks.
Figure 1: Typology of Entrepreneurship Styles
(Source:15)
14 Katz, Jerome A. "Education and training in entrepreneurship." The psychology of
entrepreneurship. Psychology Press, 2014. 241-268.

9ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
The contents of the above figure can be used for the classification of the above-discussed
entrepreneurial ventures. The above discussion shows the presence of four types of
entrepreneurial ventures. As per the characteristics of survival ventures, it can be seen that the
entrepreneurs under this venture seek low risk along with low business activity and they want to
earn minimum amount of profit for the purpose of survival. After that, under the survival
venture, the entrepreneurs have the tendency to accept moderate amount of risk and activity for
the purpose of earning profit. According to managed growth entrepreneurial venture, the aim of
the entrepreneurs is to avoid high amount of risk and earn profit with the help of business
activities. Lastly, under the aggressive growth entrepreneurial ventures, the aim of the
entrepreneurs is to accept high amount of risk with the aim to earn high amount of profit16.
Similarities and Differences between Entrepreneurial Ventures
The following discussion shows the similarities and differences among the above-
discussed four types of entrepreneurial ventures.
Basis for
Differentiation
and Similarities
Survival Lifestyle Managed Growth Aggressive
Growth
Annual rate of
Growth
Time Horizon
Nominal growth
rate can be seen
under this venture
Day to day
business activities
Less than 5% rate
of growth can be
seen in this
venture
Business
The rate of growth
for this venture is
10 to 15%
One to two years
business
The growth rate
for this
entrepreneurial
venture is more
than 20%
Long term
15 Hunter, Murray. "A typology of entrepreneurial opportunity." Economics, Management and
Financial Markets 8.2 (2013): 128.
16 Schaltegger, Stefan. "A framework and typology of ecopreneurship: leading bioneers and
environmental managers to ecopreneurship." Making Ecopreneurs. Routledge, 2016. 95-114.

10ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
Focus of the
Management
Style of
Management
Entrepreneurial
Orientation
Investment in
Technology
Source of Finance
Approach of Exit
Skills for the
Management
The managements
of this venture
focuses on selling
whatever they
have
The style of
management is
reactive
Very low
orientation can be
seen
There is not any
investment in
technology
Self source of
finance can be
seen in this
venture
Shut down of the
business needs to
be done for exit
The required skills
are making and
selling
operations on
weekly and
monthly basis
The focus area of
the managements
of this type of
venture is to
ensure the
maintenance of the
working of the
adopted business
model
The style of
management is
tactical in nature
Low orientation
can be observed
Limited
investment in
technology can be
seen
The business is
financed by self,
family, friends and
banks
Exit options are
shot-down, sell
and transfer of
assets
The needed skills
operations
Incremental
growth of the
business strategies
is the main focus
area of the
management18
The style of
management is
strategic in nature
Moderate
orientation is there
in this venture
Moderate amount
of investment in
technology can be
seen
The finance
sources are self,
banks, friends and
family and private
investors
The exit options
are sell, transfer
and merge
The needed skills
are strategizing,
planning,
leveraging and
delegating
business
operations for 2 to
5 years
The major area of
focus for the
management is the
scalability of the
business
The management
is this venture
likes to work in
strategic and
proactive manner
High orientation
can be seen
High amount of
investment in
technology can be
seen in this
venture
The sources of
finance are banks,
private investors,
public markets and
venture capitalists
The available exit
options are sell,
transfer and go
public
The major required
skill are planning,
innovation,

11ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
2. Assessment of the Impact of Small Businesses on the Economy
It needs to be mentioned that the small and medium businesses have some major impact
on the economic condition of the countries; and there is not any exception of this fact in case of
United Kingdom. The below discussion involves in the analysis and interpretation of data and
statistics for showing the impact of small businesses on UK economy.
Interpretation of How Micro and Small Businesses Impact on the Economy
The presence of huge number of small and medium sized businesses can be seen in the
UK economy. According to the Department for Business, Energy and Industrial Strategy
(DBEIS), there was the presence of a record 5.7 million private sector businesses in UK at the
beginning of the year of 2017; and there is an increase of 197,000 businesses since the year
2016. Among all of these businesses in the economy of UK, 99.3% consists of the small
businesses at the start of the year 2017 and the percentage for small or medium-sized (SMEs) is
17 Gabrielsson, Mika, Peter Gabrielsson, and Pavlos Dimitratos. "International entrepreneurial
culture and growth of international new ventures." Management International Review 54.4
(2014): 445-471.
18 Autio, Erkko, et al. "Entrepreneurial innovation: The importance of context." Research
Policy 43.7 (2014): 1097-1108.
19 Corbett, Andrew C., Jerome A. Katz, and Donald S. Siegal, eds. Academic entrepreneurship:
Creating an entrepreneurial ecosystem. Emerald Group Publishing, 2014.

12ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
99.9% in the year 201720. It needs to be mentioned that this aspect has major positive impact on
the economy of UK and one of such positive impact can be seen on the employment of the
country. As per DBEIS, the small and medium-sized businesses of UK have been able in
providing employment to more than 16.1 million people that is 60% of the total private section
employment in the whole UK. At the same time, it can also be seen that £1.9 trillion is the
combined annual turnover of the small and medium-sized businesses in UK that is 51% of the
total turnover of the UK private sector.
Table 1: Businesses of UK by Number of Employees
(Source:21)
20 "BUSINESS POPULATION ESTIMATES FOR THE UK AND REGIONS 2017". in , , 2018,
<https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/
file/663235/bpe_2017_statistical_release.pdf> [accessed 24 October 2018].
21 "BUSINESS POPULATION ESTIMATES FOR THE UK AND REGIONS 2017". in , , 2018,
<https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/
file/663235/bpe_2017_statistical_release.pdf> [accessed 24 October 2018].

13ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
In UK, small and medium sized businesses are the businesses having fewer than 250
employees. As per the above table, in 2017, UK had 5.7 million of small and medium-sized
businesses that is over 99% of all businesses. It can be seen from the above data that small and
medium-sized businesses in UK is accounted for highest number of employment that is
16,147,000 that is 60% of the total employment in UK. In addition, the amount of turnover is
also highest for the small and medium-sized businesses and this highest amount of turnover has
contributed towards the betterment of the economic condition of UK by improving the growth of
the gross domestic product of the country22.
22 "BUSINESS POPULATION ESTIMATES FOR THE UK AND REGIONS 2017". in , , 2018,
<https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/
file/663235/bpe_2017_statistical_release.pdf> [accessed 24 October 2018].

14ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
Figure 2: Contribution of Different Sized Businesses to Total Population, Employment and
Turnover
(Source:23)
It can be seen from the above figure that the small businesses of UK are the highest
contributor of the highest employment in the country. All these factors indicates towards the fact
that there is a significant contribution of the small and medium-sized employees towards the
development of the economic condition of UK. In this context, it needs to be mentioned that
these small and medium-sized businesses get the required support from the UK government like
sufficient funding, suitable business infrastructure and others. Thus, based on the above
discussion, it can be said that the small and medium-sized businesses helps the UK economy by
creating job opportunities. At the same time, they significantly contribute towards the growth of
innovation by developing digitalized and innovative businesses24.
Importance of Small Businesses and Business Start-ups to the Growth of Social Economy
The below discussion shows the importance of small businesses and start-ups towards the
growth of the social economy:
23 "BUSINESS POPULATION ESTIMATES FOR THE UK AND REGIONS 2017". in , , 2018,
<https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/
file/663235/bpe_2017_statistical_release.pdf> [accessed 24 October 2018].
24 "BUSINESS POPULATION ESTIMATES FOR THE UK AND REGIONS 2017". in , , 2018,
<https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/
file/663235/bpe_2017_statistical_release.pdf> [accessed 24 October 2018].

15ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
Employment: It needs to be mentioned that the small and start-up businesses help the social
economy by creating job opportunities to the people who are not employed by the larger business
corporations. Small businesses and start-ups have the tendency to attract the new talents
interested in the invention of new products or the implementation of improved situations. In
addition, dependency of large business organizations can be seen on the small businesses and
start-ups as they depend on these small companies to complete several of their business
operations25.
Adaption to the Changes in Economic Climates: Large number of small businesses possesses
the ability to adopt and respond to the major changes of the economic conditions. The main
reason of this is that the small businesses are very much customer-oriented and thus, they are
able in understanding the needs of the customers. For this reason, many local customers show
their loyalty to these small businesses and start-ups at the time of economic crisis by purchasing
their products and services. Hence, an economy with huge number of small businesses and start-
ups can become majorly beneficial from these.
Contribution to the Government with Taxes: When the customers support the small businesses
and start-ups, they are returning the money to the government of the country. In the presence of
the support of the customers, the small businesses and start-ups are able in gaining high amount
of revenue and they become able in paying high amount of taxes to the government. At the same
time, they help the government in collecting sales tax. These amounts of taxes help the
government in improving their social economic condition26.
25 Liedholm, Carl E., and Donald C. Mead. Small enterprises and economic development: the
dynamics of micro and small enterprises. Routledge, 2013.

16ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
Growth of Small Businesses to Corporations: It needs to be mentioned that the small businesses
and start-ups do not stay small and start-ups forever. For example, companies like Nike started
their journey as a small business and has major corporations all over the world. Small businesses
become large remain at their original locality and the presence of the headquarters of large
corporations helps the economies in growing by creating job opportunities, new market and
others27.
GDP and Per Capita Income: It can be observed from the earlier discussion that the small and
medium-sized businesses have the highest market share in terms of number of businesses, job
opportunities and turnover. All these aspects together create a positive impact in order to ensure
the growth in GDP and per capita income. All these aspects together helps in improving the
social economy of the countries28.
Standard of Living: One major aim of economic development is to bring improvement in the
standard of living of the people of the country. It needs to be mentioned that the small businesses
and start-ups do not only create job, but they helps in the adoption of the innovations with the
aim to bring improvements in the lifestyle of the common people of the countries29.
26 Giaoutzi, Maria, David J. Storey, and Peter Nijkamp. Small and medium size enterprises and
regional development. Routledge, 2016.
27 Wever, Egbert, and David Keeble. New firms and regional development in Europe. Routledge,
2016.
28 Sahut, Jean-Michel, and Marta Peris-Ortiz. "Small business, innovation, and
entrepreneurship." Small Business Economics42.4 (2014): 663-668.

17ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
3. Determination and Assessment of the Key Aspects of an Entrepreneurial Mindset
It needs to be mentioned that the entrepreneurs have some unique and different
characteristics, skills and traits that differentiate them with the other business managers and they
are discussed below:
Determination of the Characteristics, Skills and Traits of Successful Entrepreneurs
Powerful Leadership Qualities: The presence of strong leadership qualities is the most
important traits for an entrepreneur. For this reason, it is needed for an entrepreneur to have
strong communication skill and the ability to accumulate a team of people towards a common
goal in the way that the whole team is motivated enough to achieve the objectives. For this
reason, an entrepreneur is needed to earn the trust and respect of his/her team with the
demonstration of the positive work qualities and confidence. He/ she must know to lead a team30.
Highly Self-motivated: It is needed for an entrepreneur to be highly self-motivated so that he/she
can motivate the others. There is not anybody who can make progress by sitting back in the chair
and waiting for success to find them. An entrepreneur must be able to go out into the world and
raise change with the help of their actions. Thus, a successful entrepreneur must have the trait to
enjoy challenges and to work tirelessly for solving the problems in front of them. For this reason,
they must be able to adopt in the changing situation31.
29 Feldman, Maryann P. "The character of innovative places: entrepreneurial strategy, economic
development, and prosperity." Small Business Economics 43.1 (2014): 9-20.
30 Belso-Martinez, Jose A., F. Xavier Molina-Morales, and Francisco Mas-Verdu. "Combining
effects of internal resources, entrepreneur characteristics and KIS on new firms." Journal of
Business Research 66.10 (2013): 2079-2089.

18ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
Strong Sense of Ethics and Integrity: The sustainability of the business operations depends on
the adoption of a set of ethical code of conducts and for this reason, a successful entrepreneur
must have the mindset to comply with all the code of conducts of ethics while conducting the
business operations. This aspect helps the entrepreneurs to be successful in the long run of the
business. An entrepreneur knows the importance of working with clients; for this reason, an
effective entrepreneur must have the mindset to admit any fault so that solution can be offered.
Willingness to Fail: One of the most significant traits of an entrepreneur should be the risk
taking ability. Successful entrepreneur are calculated risk takers and they are not afraid of failure.
The ability to take calculated risks helps an entrepreneur in taking the best decision for the
business. Most importantly, even in the presence of the most effective business decisions, a
successful entrepreneur must be able in accepting the fact that they may fail anyhow32.
Serial Innovators: It is needed for an entrepreneur to have an innovative mind. The
entrepreneurs can well be defined by their eagerness for constantly developing new and
innovative business ideas so that they can bring improvement in the existing business processes.
For this reason, a successful entrepreneur must have the mentality to welcome innovative
changes in the existing businesses33.
31 Lee, Sang M., and Byungku Lee. "Entrepreneur characteristics and the success of venture exit:
an analysis of single-founder start-ups in the US." International Entrepreneurship and
Management Journal 11.4 (2015): 891-905.
32 Mas-Tur, Alicia, and Domingo Ribeiro Soriano. "The level of innovation among young
innovative companies: the impacts of knowledge-intensive services use, firm characteristics and
the entrepreneur attributes." Service Business 8.1 (2014): 51-63.

19ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
Knowing what you do not know: A successful entrepreneur must be an effective learner as they
are needed to learn lessons from every situation in the business. For this reason, they have the
idea about what they do not know so that they can gain the knowledge to fulfill those gaps.
Spirit for Competitive: A successful entrepreneur likes challenges and they like to win. For this
reason, they must always be prepared to take new challenges in order to keep themselves
competitive. Business can be considered as a constant filed of competition when it is needed for
the entrepreneurs to stay in the challenge with the help of their competitive spirit34.
Understanding the Values of Effective Peer Network: In every situation, an entrepreneur cannot
get the success alone. A successful entrepreneur has idea about his/her network of contacts,
peers, business partners, financial partners and resources and their support is needed for the
success of the entrepreneur.
Assessment of How Personality Reflects Entrepreneurial Motivation and Mindset
It can be seen from the above discussion that a successful entrepreneur should have some
specific characteristics, skills and personality trait. All these factors are considered as crucial
33 Sajilan, Sulaiman, Noor Ul Hadi, and Shehnaz Tehseen. "Impact of entrepreneur's
demographic characteristics and personal characteristics on firm's performance under the
mediating role of entrepreneur orientation." Review of Integrative Business and Economics
Research 4.2 (2015): 36.
34 Al-Damen, Rula Ali. "The impact of entrepreneurs’ characteristics on small business success at
medical instruments supplies organizations in Jordan." International Journal of Business and
Social Science 6.8 (2015).

20ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
because the personality of an entrepreneur reflects his/her motivation and mindset35. In this
context, it needs to be mentioned that an entrepreneur can be considered as an actor with the
special ability for carrying out innovation in the businesses. At the time to carry out and
implement the innovative business ideas, the entrepreneurs need workers and collaborators. For
this reason, it is needed for an entrepreneur to be autonomous leader in the organizations. It
implies that autonomy is a crucial factor for motivation for the entrepreneurs. Most of the people
consider the fact that profit is a major motivational factor for the entrepreneurs, when it is not
right. Instead of this, the phase of creativeness between origination of an idea and
implementation of the same can be considered as a major motivational factor for the
entrepreneur36. The relationship of this factor can be seen with the innovative characteristic of an
entrepreneur.
To an entrepreneur, the most important motivational factor should be the realization of
ideas. The relationship of this factor can be seen with the aspect to make profit as the
implementation of innovative ideas leads to high profitability for the companies. However, it
needs to be mentioned that the aspect of making profit is not a necessary factor to the successful
implementation of ideas37. Thus, the above discussion indicates towards the fact that there needs
to be something special in the personality of an entrepreneur and this reflects the entrepreneurial
35 Mauer, René, Helle Neergaard, and Anne Kirketerp Linstad. "Self-efficacy: Conditioning the
entrepreneurial mindset." Revisiting the Entrepreneurial Mind. Springer, Cham, 2017. 293-317.
36 Z. Solesvik, Marina, et al. "Entrepreneurial assets and mindsets: benefit from university
entrepreneurship education investment." Education+ Training 55.8/9 (2013): 748-762.
37 Estay, Christophe, François Durrieu, and Manzoom Akhter. "Entrepreneurship: From
motivation to start-up." Journal of International Entrepreneurship 11.3 (2013): 243-267.

21ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
motivation and mindset of the entrepreneurs. These aspects indicates towards the fact that these
personality traits of the entrepreneurs are closely connected to the motivational factors of them.
Thus, it is clear that there is a correlation of these personality traits with the mindset and the
motivational factors of the entrepreneur. In the presence of all of these factors, it can be
concluded that the motivational structures along with the personality traits of the entrepreneur
are crucial aspects for gaining understanding about the mindset of the entrepreneurs38.
4. Examination of Different Environment to Foster or Hinder Entrepreneurship
In the process of entrepreneurship, the presence of some aspects can be seen that either
foster and hinder the process of entrepreneurship; and two of these major aspects are background
and experience. These aspects are discussed below:
Examination of How Background and Experience can Hinder or Foster Entrepreneurship
Background and experience are two of the major aspects that have both positive as well
as negative impact on the process of entrepreneurship. In case of family background, the world
of entrepreneurship and start-ups prefers the entrepreneurs come from privileged background as
it makes easy for them to access to the capital market. In addition, the entrepreneurs from
wealthy families have right connections; and the presence of support from the family, it becomes
easier for them to take the risks of entrepreneurship. However, all these aspects do not indicate
towards the fact that entrepreneurs from poor background cannot foster in the process of
entrepreneurs. In this process, experience of the entrepreneurs plays a crucial part39.
38 Wright, Mike, and Ileana Stigliani. "Entrepreneurship and growth." International Small
Business Journal 31.1 (2013): 3-22.

22ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
It needs to be mentioned that the experience of the entrepreneurs has major effect on the
tendency of the individuals to become an entrepreneur and the likelihood to be successful. For
this reason, the presence of effective entrepreneurial skills and experience has major positive
effects on the success of the entrepreneurs. The process of innovative entrepreneurship largely
depends on the experience of the entrepreneurs as experienced entrepreneurs possess the ability
to manage the organizational changes in the correct manner. In addition, experience helps in
fostering entrepreneurship as it forms the foundation of company dynamics capacities, learning
ability and the adapting capacity for changes. Hence, based on the above discussion, it can be
observed that the presence of experience helps in fostering the process of entrepreneurship while
the absence of the same can hinder the process of entrepreneurship40.
In order to examine the above aspects of discussion, there is a scope for the use of
example of two successful entrepreneurs where both family background and experience play
crucial role. One of such example is Jack Ma and he is well known for being the founder of the
e-commerce corporation ‘Alibaba’. In the success of Jack Ma, experience played an important
part as he did not have the support of a wealthy family. The family of Jack Ma did not have
much money when he was young. It was his experience in the field of entrepreneurship and the
39 Rideout, Elaine C., and Denis O. Gray. "Does entrepreneurship education really work? A
review and methodological critique of the empirical literature on the effects of university‐based
entrepreneurship education." Journal of Small Business Management 51.3 (2013): 329-351.
40 Jones, Marian V., and Lucrezia Casulli. "International entrepreneurship: Exploring the logic
and utility of individual experience through comparative reasoning
approaches." Entrepreneurship Theory and Practice 38.1 (2014): 45-69.

23ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
entrepreneurial traits as well as characteristics that helped him to become a successful
entrepreneur41.
The success of Andrew Carnegie can be considered as another example of successful
entrepreneur where his background was his barrier and his experience was the success factor. He
is an American industrialist and the founder of Carnegie Steel. He did not get the required
support from his family as he grew up in poverty. It was his entrepreneurial characteristics and
entrepreneurial experience that brought success for him42.
Conclusion
The above discussion sheds light on different aspects of entrepreneurship with the aim to
analyze and evaluate all the relevant aspects. The above discussion shows the presence of four
types of entrepreneurial ventures; they are Survival Ventures, Lifestyle Ventures, Managed
Growth Ventures and Aggressive Growth Ventures. It is visible from the table of differences and
similarities among these four types of entrepreneurial ventures that there are some major
differences among all these ventures and the presence of some similarities can also be seen
among them. The analysis of entrepreneurial typology indicates that these four types of ventures
are different from each other on the basis of financial risks. The above discussion also explains
the fact with the help of data and statistics that the small and micro businesses have major
positive impact on the development of the economic condition of UK. The discussion indicates
that the small and medium-sized businesses of UK account for the highest amount of revenue,
highest percentage of employment and many others.
41 George, Bill. "The new global leaders." People and Strategy38.3 (2015): 26.
42 Lewis, Ted G. "Booms." Book of Extremes. Copernicus, Cham, 2014. 51-67.

24ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
At the same time, the small and medium-sized businesses help in improving the GDP and
per capita income of the country. The above discussion also assesses the importance of small
businesses and start-ups on the development of economic condition of the countries. They help
the countries by increasing the employment opportunities, adopting the changes in economic
condition, contributing the government with taxes and others. It can be seen from the above
discussion that an entrepreneur should have some special traits, skills and characteristics to
become successful like leadership qualities, self-motivated character, tendency to comply with
the ethical code of conducts and others. It can also be seen from the above discussion that the
aspects of entrepreneurial personality reflect the entrepreneurial motivation and mindset. Lastly,
the above discussion indicates towards the fact that experience of the entrepreneurs plays an
important part in their success when the entrepreneurs do not have any wealthy family
background.

25ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
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