Success Factors for Small Businesses

This assignment requires a critical analysis of various factors influencing the success of small and medium-sized enterprises (SMEs). Students are expected to examine academic research and publications to identify key elements that contribute to business success in this sector. The focus is on understanding the diverse range of influences, from entrepreneurial characteristics and firm attributes to external environmental factors and policy implications.

ENTREPRENEURSHIP
AND SMALL
BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1 ...........................................................................................................................................3
P1 Describe the different types of entrepreneurial ventures and typology of entrepreneurship 3
P2 Explain the similarities and differences between entrepreneurial ventures......................4
P3 Impact of small scale business organisation on economy ................................................6
P4 Importance of small business organisation ......................................................................6
PART 2............................................................................................................................................7
P5 Characteristic traits and skills of a successful entrepreneur..............................................7
P6 Aspects of entrepreneurial personality that reflects motivation and mindset...................8
P7 How a person’s background and past experiences can hinder or foster entrepreneurship9
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................12

INTRODUCTION
There is a very vital role of small business enterprises in economic condition of the
country. Entrepreneurship refers with manage a business organisation and its activities, whereas
entrepreneur is the person who is establish is business in order to gain profit. Entrepreneur is the
owner of the company but a manager of these organisations is not the owner of the company.
Entrepreneurship is the heart of business organisation. Entrepreneurs skills and abilities are also
demand able in capital market, because they so many innovative and creative ideas. So as they
can achieve heights of success for their business organisation. Every larger, medium and small
business organisation needs entrepreneurship in order to design the management activities in a
sequence (Bridge and O'Neill 2012). It also helps owners so as they are capable to take risk and
uncertainties and being willing to accept the reality of capital market. An successful entrepreneur
helps in personal and professional; development of his employees. Along with this, small
business enterprises also helps people by providing them employment opportunities, and for
customers it is helpful as supplying them quality products and services. These entrepreneurs have
a great vision and innovative ideas fro their day to day business operations and functions.
PART 1
P1 Describe the different types of entrepreneurial ventures and typology of entrepreneurship
There are several types of entrepreneurial ventures, each and everyone is different among
them. They want to create freedom in their work and life through entrepreneurship. The main
role of entrepreneurship ventures is to earn profit and interest with continuous growth. Along
with this, high growth ventures tends to be conspicuous because they are providing a significant
opportunities of job and wealth creation in society. So as there are different types of
entrepreneurship ventures, are as follow: - Small scale business entrepreneurs – Small scale business entrepreneurs are those who
are running their small enterprises to living their lifestyle in well being manner. Along
with this, these kind of entrepreneurs don't need to take permission of government and
any legal authority (Dennis Jr, 2011). Types of small scale business enterprises are as –
plumbers, travel agents, internet commerce, carpenters, electricians, hairdressers, store-
fronts, grocery stores etc. they are hire local employees or family.

 Scalable start-up entrepreneurship ventures – Silicon valley, new york, Israel,
Bangalore, Shanghai, these are the scalable start-ups in innovation clusters. These start
ups helps in to make a small percentage of to gain profits and benefits. Their
entrepreneurs have a vision with that they want to change the scenario of overall world.
Entrepreneurs of small scale start ups have a innovate ideas and innovations by which
they can attract investors and capitalist. Large Company entrepreneurial ventures – Large companies have their own finite life
cycles. Some large organisation are the fastest growing companies of UK, they have
sustaining innovation, provides new products that are various around their core products
and services. These organisations are establish in order to achieve goals and their profits
(Neck and Greene, 2011).
 Social entrepreneurial ventures – Social entrepreneurial ventures seeks with welfare of
the societies. They focus on creating quality products and services so as they can easily
solve the issues of society.
Typology of entrepreneurship Trading entrepreneurs – Trading entrepreneurs are concern with trading activities in a
business organisation. Along with this, they produce finished goods and services directly
from the manufactures and sell them to the customers through to the retailers or directly.
They are known as middleman, dealers and wholesalers between the customers and
manufactures.
 Technical entrepreneurs – there are the entrepreneurs who run technology and science
based industries. These kind of entrepreneurs have new and innovative ideas of run their
business so as they can easily achieve their profits and goals. They focus on researching
and finding new ways of attracting customers.
P2 Explain the similarities and differences between entrepreneurial ventures
There are so many differences and similarities between social and business enterprises.
So as firstly discussed differences between social and business enterprises. Large scale business
organisation are establishes for earn profit whereas small and social scale business organisation
are run for social welfare and development (Gorgievski, Ascalon and Stephan, 2011). For social
entrepreneurs, values and beliefs are lies in profit of the organisation and investors expects to
reap as the product establishes itself in a market that can afford to purchase it. Along with this,

business scale entrepreneurs are accountable to their shareholders in order to generate profits and
benefits. Whereas the social scale business entrepreneurs works for social development and
welfare. They are run for the transformation of any community that lacks the resources to fulfils
its own needs. Another major difference among them that is large scale business organisation
are works only to earn profits and achieve their market growth by providing quality products to
customers whereas social scale business enterprises are engaged with non profitable
organisations, they are often structure with non profit activities of company or they donate their
profits and gains among society for the betterment and development.
Similarities between small and large business organisation – Similarity between social
and large scale business organisations is that they both are motivates the status of the society by
providing them quality products and services. Along with this, both organisations driven to
innovate in a commercial market with supplying ultimate benefits to customers. If they are
successful, innovation creates wealth (Fassin, Van Rossem and Buelens, 2011). If customers
gaining quality products and services so as they are able to achieve their target market. Social
and large scale organisations have innovate ideas and thoughts by which they enable to change
the overview of overall world.
Different types of ventures- There are three types of enterprises. Their roles,
responsibilities and characteristic are as follow: - Public Sector- Public sectors enterprises are concern with central government of country.
These kind of enterprises are those which are totally independent or semi independent
companies. Such enterprise are achieve their growth and success fro recent time only.
They are regulate and control by the government and engaged with industrial and
commercial functions of state government. Private sector enterprises – Private sector enterprises are implement to earn profit and
market growth. They are run by their owners and they are based upon customers
satisfactions and their beliefs (Islam and et. al., 2011). So as they should have to provide
quality products and services to their clients and customers.
 Social enterprises - social enterprises are made by the government fro the welfare of the
society. They are not owned by any kind of profit.
P3 Impact of small scale business organisation on economy
There are some factors of small and micro business on economy, such are as follow: -

 Provide Employment – Small business are able to provide employment to the people of
their country. As a new start up so as they need more peoples who can work with them so
as they are retaining talent and provide them job. With that the economic growth of the
company is also increases and it also helps in developing personal growth of their
employees. If peoples get employment so as they are enable to improves their living
standards and they can live a healthy lifestyle (Sampaio, Thomas and Font, 2012). Start
ups and small business are good platform for person who wants to starts his/her carrier as
fresher. It increases knowledge and skills of that person. Future growth – Small business have their new and innovative ideas so as it is ensure for
their future growth and success. They provides quality products tom their customers so as
customers can easily attracts towards them. Along with this, it is very easier for small
business organisations to create their own key group of customers that helps them in at
the time of risk and uncertainty. There are so many large corporations which was starts
their journey as a start up, such as Nike, Puma, Ben & Jerry''s. Now they are the major
players of national and international markets.
 Contribution – Small business organisations contributes in their country's economy by
providing employment to peoples and raises their living standards. With that, per capita
income of the country is also increases so as their GDP rate is also developed (Raposo
and Do Paço, 2011). Since 1995, small business organisations are able to generate 64%
employment opportunities. These kind of business also helps in the development of the
lower section of the society by opening schools and colleges for them, so as every people
can educate and know about his rights.
P4 Importance of small business organisation
Small business organisations plays an essential role in growth and development of
society. There are mention below the elements of importance of small business organisation,
such are as follow: - Economic growth- Small business organisation are able to increases the annual turnover
of their country by providing employment and job opportunities to peoples. It also helps
in increasing economic growth of the country by social welfare and development. They
also take those workers who are not taken by large corporations. Small firms proceed
with local economies because they brining growth and success for the economic

condition of the country (Blackburn, Hart and Wainwright, 2013). If the economic
growth of UK is improved so as the living standard of the peoples is also improves. Spark innovations – Small business organisations have several ideas and thoughts so as
they can achieve their economic growth. They have many opportunities for built up the
once career. With innovate ideas and thoughts small-business are enable to provide
quality products and services to their customers. Along with this, creative ideas helps in
to develop the employability skills and knowledge so as anyone can learn more paths of
managerial skills and attitudes. If anyone who wants to starts career so as these kind of
micro business organisations are the great platform for them (Carland and Carland,
2015). Managers new ideas and thoughts are attracts so many customers and peoples with
that they can easily grow up in capital market.
 Increase productivity – as along innovate ideas and thoughts, small business organisation
are able to improves the productivity of their employees. If employees perform well so it
is beneficial for small scale business organisation and good for the economic condition of
country. Moreover small business organisations are more productive than any other larger
business industry. They have so many new and innovate techniques by which they can
easily reduces damages and provide quality products to their customers. It helps in
groom up their name and fame in all over market. With new and innovative techniques,
small business also provides quality services to their customers at very cheap rate
(Olusegun, 2012). They have so many varieties of products according to the customer
taste and their choices, this will also helps ion increasing the sale revenue of these small
scale business organisations.
PART 2
P5 Characteristic traits and skills of a successful entrepreneur
A successful entrepreneur has talented and he always focus on his goals and objectives,
for that he creates strategics and policies in order to achieve its goals and objectives. Skills and
abilities makes an entrepreneur successful, so as there are some characteristics of entrepreneurs
that are as follow: - Full of determination- An entrepreneur should be always determine about its goals and
objectives and try to make effective strategics. He also have to focus on growing

business, hiring new employees and increasing sales, all these factors are help in
accomplish macro aims and goals of every business organisation in order to execute it
successfully. Entrepreneur should be confident and being prepare to take exit in capital
market. Not afraid to take risk- It is the essential characteristic of any entrepreneur. If an
entrepreneur wants to be success in market so as he should not have to be afraid from
taking risk and uncertainties. Some of big entrepreneurs take major risk and they paid off
in big way (Karlan and Valdivia, 2011). Those entrepreneurs who are taking risk are
ready to dive deep into a upcoming uncertainties. They also should have to developed
their strategics and forthcoming plans in order to compete with capital market.
Entrepreneur always tries to know the customer's desire and produce products
accordingly.
 Decisive – Fast and quickly decision making is the most important ability of any business
entrepreneur. For that entrepreneur has to communicate effectively with its co workers so
as everyone can give their own ideas and views. Along with this, successful entrepreneur
is always concern about his working activities and focus on target market. He also have
to understand that failure is the part of life so as he don't have to fear form losses, even he
should have to work more hard so as he can also achieve the target market. Moreover
customers are only attracts with quality products and services so then entrepreneur is
enable to provide quality products to their customers so as they can convince with that
and willing to purchase that specific product.
P6 Aspects of entrepreneurial personality that reflects motivation and mindset
There are some entrepreneurial factors that affects on entrepreneurial mindset and his
motivation. Sometimes these factors impact positively or sometime affects negatively the
behaviour of an entrepreneurial. There are some factors that reflect the behaviour of the
entrepreneur, such are as follow: - Reach out the customers first – An entrepreneur must tries to understand the needs and
wants of his customers. For that they should have to know the what their customers wants
and which kind of product give them satisfaction. They have to provide them quality
products and services so as customers can easily attract towards them. Entrepreneurs
have innovative mind so as they are enable to new product development (Schaper, 2016).

It can be possible through if managers can arrange surveys, workshops and seminar so as
they can know the desires of their customers. Find a market for an existing product – Managers of small business enterprises also
have to find a new market for their existing products. New market and target helps them
in order to achieving their goals and objectives, improves the market growth of the
organisation. Along with this, customers are able to consume quality products and
services so as they also can develop their living standards. If entrepreneurs are able to
identifies target market for their products and services so that they can extend their
product in that specific market. This is helpful in increasing the sales revenue and annual
turnover of the company and everyone will be willing to purchase the product. It also
helps in providing key group of customers where managers can easily sell their products
that is useful at the time of deflation in market. Keep control on vision – entrepreneurs also have to put control on their visions and
mission. They should have to develop their strategics and polices according to the market
situations. Managers of small business organisations also have to pre-determined their
decisions for future risk and uncertainty (Dennis Jr, 2011). Along with this, they also
should have to think about their future goals and objectives so as they can easily achieve
the target market for their business.
 Understand the power of brand – Brand of the product is also impact on organisational
growth and success because there are so many customers who prefers only branded
products. Therefore an entrepreneur must have to create quality products for their
customers, by which they can easily achieve the growth of the business.
P7 How a person’s background and past experiences can hinder or foster entrepreneurship
Background and cultural of the entrepreneur puts impact on his career growth and
decision making process of the company. There are the factors of entrepreneur's background that
impact on its performance, such are as follow: - Type of education – Education of an entrepreneur also impact on decision making
process of the company. An educated or less educated person is not able to take accurate
decision for its business organisation. For becoming an good and successful entrepreneur
he must have to certain qualities and proper education (Gorgievski, Ascalon and Stephan,
2011). For example- Bill Gates parents send him in a private school, where he learn about

more skills and knowledge about computers, so as now he is the most successful
entrepreneur. Therefore, education also plays an important role in growth and success of
any business organisation. National culture – Culture of entrepreneur also impact on the entrepreneurship-
development. With that, the person has its own traditions and values so as it performance
and productivity also impact on the decision making process of the company. There are
so many national traditions and beliefs that is necessary to follow by an entrepreneur but
in another country these traditions are not follows. At the time, the decision will taken by
the entrepreneur also impact on its personal growth and carrier advantage. Economic circumstances – There are so many economic factors of the country that also
impact on performance of an individual. The economic factors can be dependent on tow
main aspects that are national economic conditions and personal economic conditions.
The elements such as the economic condition of an entrepreneurial as if he is in a
financial crisis or something else that can come under the personal economic factors. And
also the rise and fall in the gross domestic products and another factors that are come
under national economic factors.
 Character Traits – Attitude, behaviour and personality of the entrepreneur towards the
peoples he is dealing with such as customers, suppliers, investors are defined as the major
character based factors that reflect on entrepreneurship and its decision making process.
If an entrepreneur is not able to behave in a well being manner then it affects its relations
with other peoples (Blackburn, Hart and Wainwright, 2013). Therefore, he should have
to be polite and cool with another person and maintain a healthy relationship with them.
This will increase the market growth of the company.
CONCLUSION
From the above mention file it has been concluded that small business enterprises plays
an very important role in country's economic conditions. Entrepreneurship relates with managing
the activities and functions of the organisational in order to achieve target market. There are four
types of entrepreneurship ventures such are as follow- small scale, large scale, scaleable start-up
and social entrepreneurship ventures. Social scale start-ups are works fro social welfare whereas
business scale organisations are work in order to gain profit. Small and micro business
organisations impact on economic conditions of the country as it provides employment, spark

innovations, contribute in the development of economy and future growth of the organisation.
The report also concluded about the skills and abilities of successful entrepreneur, such as -full
of determination, decisive and not afraid to taking risk. All these qualities makes an entrepreneur
more successful and innovate.
REFERENCES
Books and Journal

Blackburn, R.A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development. 20(1). pp.8-27.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small
business. Palgrave Macmillan.
Carland, J.W. and Carland, J.C., 2015. A model of potential entrepreneurship: Profiles and
educational implications. Journal of Small Business Strategy. 8(1). pp.1-14.
Chittithaworn, C., Islam, M.A., Keawchana, T. and Yusuf, D.H.M., 2011. Factors affecting
business success of small & medium enterprises (SMEs) in Thailand. Asian Social
Science. 7(5). p.180.
Dennis Jr, W.J., 2011. Entrepreneurship, small business and public policy levers. Journal of
Small Business Management. 49(1). pp.92-106.
Fassin, Y., Van Rossem, A. and Buelens, M., 2011. Small-business owner-managers’
perceptions of business ethics and CSR-related concepts. Journal of Business ethics.
98(3). pp.425-453.
Gorgievski, M.J., Ascalon, M.E. and Stephan, U., 2011. Small business owners' success criteria,
a values approach to personal differences. Journal of Small Business Management.
49(2). pp.207-232.
Islam, M.A., and et. al., 2011. Effect of entrepreneur and firm characteristics on the business
success of small and medium enterprises (SMEs) in Bangladesh. International Journal
of Business and Management. 6(3). p.289.
Karlan, D. and Valdivia, M., 2011. Teaching entrepreneurship: Impact of business training on
microfinance clients and institutions. Review of Economics and statistics. 93(2). pp.510-
527.
Neck, H.M. and Greene, P.G., 2011. Entrepreneurship education: known worlds and new
frontiers. Journal of Small Business Management. 49(1). pp.55-70.
Olusegun, A.I., 2012. Is small and medium enterprises (SMEs) an entrepreneurship?.
International Journal of Academic Research in Business and Social Sciences. 2(1).
p.487.
Raposo, M. and Do Paço, A., 2011. Entrepreneurship education: Relationship between education
and entrepreneurial activity. Psicothema. 23(3).pp.453-457.
Sampaio, A.R., Thomas, R. and Font, X., 2012. Small business management and environmental
engagement. Journal of Sustainable Tourism. 20(2). pp.179-193.
Schaper, M. ed., 2016. Making ecopreneurs: developing sustainable entrepreneurship. CRC
Press.
Online
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