Key Factors and Skills for Successful Entrepreneurship

The assignment delves into the essential requirements from perspectives of personality, skills, and traits needed to become a successful entrepreneur. It also uncovers the role of past experience and background in entrepreneurship, highlighting the importance of these factors in new venture success.

ENTREPRENEURSHIP

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types of entrepreneurial ventures.......................................................................1
P2 Similarities and differences between entrepreneurial ventures.........................................2
TASK 2............................................................................................................................................4
P3 Impact of micro and small business on economy.............................................................4
P4 Contribution of small businesses and start-ups in the growth of social economy............6
P5 Characteristics, traits and skills of successful entrepreneurs............................................6
P6 Impact of entrepreneurs' personality on motivation and mind-set....................................8
P7 Role of experience and background in either hindering or fostering the entrepreneurship.
................................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERNCES.................................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship is the ability of an individual to develop and manage a new business.
Entrepreneur needs to be able to manage risk and make profit in the organization. Capabilities
and skills of entrepreneurs helps the nation in enhancing business activities (Abreu and
Grinevich, 2013). With the help of successful and capable businessperson country can get able to
establish new business successfully and enhancing economic condition of the nation. Current
assignment will explain different entrepreneurial ventures and related topologies. Furthermore,
study will explore similarities and differences between various entrepreneurial ventures. It will
explain impact of micro and small business on economy of the country. In addition, report will
determine characteristics, traits and skills of two entrepreneurs those who have gain success.
TASK 1
P1 Different types of entrepreneurial ventures
Entrepreneur is the person who start a new business with their skills and take risk in order
to make the business successful.
Entrepreneurship is the skill of individual that support the person in designing, lunching
and running a new firm.
Entrepreneurship is the capability of the person that support in establishing a business in
impressive manner and generating profit in the organization (Drucker, 2014). There are several
types of ventures that have been started by different business persons in order to archive their
different goals. These ventures are as following:
Small business entrepreneurship
It is considered as one of the best and most common type of venture. It includes
establishing grocery stores, travel agents, storefront etc (Schaper and et.al, 2014). Their main
agenda to establish these small ventures is to earn profit and make profit so that they can live
their life easily. UK is the country where many small business entrepreneurs are operating their
business and generating revenues. In these types of firms owner handle entire business and hire
local people those who have necessary skill and are ready to work in low salary package in the
organization. They require funds to conduct operation of the entity (Storey, 2016). For that
businessperson use own capital or borrow money from friends or families in order to start their
business. Entrepreneurs of small firm has to conduct research about market situation, needs of
consumers before establishing its firm. It will help the person in offering products and services as
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per the need of client. By this way owner will be able to generate high revenues and will be able
to accomplish its objective significantly. Topology of such type of business is to earn profit and
live a simple life with their families (Burrows, 2015).
Scalable start-up entrepreneurship
It is another type of venture, such type of firms are attached with innovation. Owner
implements new ideas and innovative features in their product and services so that maximum
investors can get attracted towards the brand. It supports in getting satisfactory funds for their
firm and conducting operations in smooth manner. The main agenda of such type of ventures is
to bring innovation and provide something new to world (Bhachu, 2017). This foresighted
thinking process and vision of entrepreneurs makes the person successful as entrepreneurs. Such
type of scalable start-up entrepreneurship ventures get high profit and get develops soon. Silicon
Valley entrepreneurs program is the great example to such type of venture. Topology of such
type of venture is to provide something unique and innovative product to consumers that can
help in meeting with their unspoken demands (Jaskiewicz, Combs and Rau, 2015).
Large company entrepreneurship
It is another type of venture, their main agenda is to grow well and expand business
across the world. These types of firms adopt the latest technologies in order to improve
efficiency level of their operations. It helps them in providing satisfactory services to clients and
satisfying them towards the brand (Nambisan and Baron, 2013). These types of organization are
more concern about market condition and competition. They monitor market situation regularly
and make changes in its operation so that these ventures can gain competitive advantage and can
sustain in the market for longer duration. They mainly aim on the market development by
increasing the globalisation so that they can enhance the company sales. This, in turn, will assist
in increasing the profitability of the firms.
Social entrepreneurship
These are the type of venture those which work for social welfare. Their main agenda to
provide satisfactory products to consumers. They do not work to generate profit; they work to
serve the society well. In UK many social firms are working (McKenzie and Woodruff, 2013).
They develop innovative ideas for the elimination of the social causes. These companies are
focused on an innovative idea for changing the existing flaws in the society. Sooner, the cause is
fulfilled they move on to other work with generation of a completely new idea and framework.
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There are various kinds of entrepreneur ventures:
 Female entrepreneurship: It is the type of venture which is started by women. These
women are motivated persons for others and inspire other girls as well to start a new
business.
 Social entrepreneurship: It is the type of business which works for the welfare of
societies.
 Serial entrepreneur: It is the business which is started by person at small scale and
individual monitor daily activities and developed for its growth. Sir Richard is the good
example of this type of venture.
P2 Similarities and differences between entrepreneurial ventures
All entrepreneurial ventures work for different purposes. But there are some similarities
among them also. Differences between these ventures are as maintained below:
Size and structure: The main difference in these ventures is size and structure on these firms.
Small business entrepreneurship conduct their business at small scale. In this type of
firms owner take decision for the company and owner works to meet requirement of the
business. On other hand large business organization are differed from small firms
(Business and entrepreneurship skills and experience. 2017). These big organization
conduct their operations at big scale and there is tall structure followed. As there are
many employees work so it is difficult for owner to make communication with all people.
So these big sized firms follow tall organizational structures. Small scale entities hire
only two or three people in the workplace because they do not require much staff. But big
corporation hire number of candidates, these firms contribute well in increasing
employment opportunities in the nation. ASDA, TESCO etc. are the great big ventures
those who are operating there business across the world successfully. Furthermore, scale
start up entrepreneurship do not have specific structure, they just change their structure as
per the innovative idea they receive (SMEs fuel optimism and growth in British business.
2017).
Aim and objective: Another difference is on there purposes and agenda. Big organizations
aims. To expand their business across the world. They want to gain competitive
advantage and want to attract new consumers by providing them satisfactory services. On
other hand mall ventures do not aim to expand their business, they work for the purpose
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to generate revenues so that they can live their life happily. On other hand social
entrepreneurship ventures have different objective, they work to serve the society well.
They continuously put their hard efforts so that society welfare can be done. In addition,
scalable start up business keen to provide innovative ideas so that long term growth of
business can take place (Nambisan and Baron, 2013). Their main purpose is to sustain in
the market for longer duration by offering unique facilities to consumers.
Sources of finance: It is another major difference between these ventures, these all firms get
monitory resources from different sources. UK is the country where all big
entrepreneurship venture get funds from bank loan and through investors. There are many
business angels those invest their capital in such organization from where they can get
good return over their investment. Apart from this, bank gives loan for expansion to these
large size organization so that they can generate more revenues. On other hand small
business entrepreneurship have to invest own capital to start their business. They do not
get fund from investors (Schaper and et.al, 2014). They cal also get funds from family or
friends. Social entrepreneurship is another type of venture those which gets monitory
resources from trusts or from government bodies because they work for social welfare.
Apart from this these different ventures also have some same characteristic as well.
Scalable start-up firms, small scale firms and big size firms all pay more attention on
development of the company. They continuously try to provide product sand services as per the
requirement of the customers (Abreu and Grinevich, 2013). They try to attract new consumers
towards the organization so that profit can get generated. Social venture and big firms both want
to serve best to clients and want to satisfy them.
The main difference between male and female entrepreneur venture is that female firm is
controlled by female and male is managed by male person. But similarity in both is that they
both design products in such manner so that profit can be maximized.
Social and serial entrepreneurship are different. Serial venture develops the business at
particular level whereas social works for the social welfare. The same thing in both these
ventures are that they focus on innovation.
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TASK 2
P3 Impact of micro and small business on economy
UK is the country where many small business are running, all these firms are generating
profit and contributing well to the economy. Though contribution of large entities are higher as
compare to small firm, but these small corporations also work for the economic development of
the country. BREXIT was the great event that has affected United Kingdom to great extent. After
BREXIT economy condition of UK has got changed. For some times, export firms were unable
to do there business and government has to make new trade agreements. But at that time small
firms have supported well to the economy (SMEs fuel optimism and growth in British business.
2017). These are lifeblood of the nation. Impact of small business on UK economy are explained
as below:
Employment opportunities: Firms those which are conducting there business at small scale
they can employ 250 employees in there organizations. These micro entities are main source of
increasing employment opportunities. After BREXIT many big firms have terminated their
employees, at that time these micro firms have given them job opportunities and fulfil their
monitory requirements (McKenzie and Woodruff, 2013). In the year 2014, approx 5.2 million
small enterprise were operating there business in UK. Through this figure it is proved that these
small scale entities are contributing well in increasing employment opportunities in the nation
and growth in the country.
Economic impact: Small scale entities pay more attention of needs of consumers. These
organizations provide products and services to clients as per their requirements of clients. They
offer products to consumers at affordable rates. That is why many or maximum UK population
purchase items from these small enterprises. It helps in generating revenues. They encourage
innovation that supports in the growth of nation to great extent. Small and medium sized
organizations work in the condition when there is recession or inflation (Drucker, 2014). In such
condition, purchasing power of customers get negatively affected, in such condition they buy
products from these small shops because these are affordable to them. Thus, these micro
organizations impact on the economic growth of the country.
Improve living standards of population: It continuous work to fulfil monitory requirements of
the public, by this way individual have sufficient monitory resources to live their life easily.
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With the contribution of these micro organization living standards of the population has got
improved to great extent (Bhachu, 2017).
Flexible with changing market situation: As new technologies is taking place, market
conditions are getting changed. In such condition it has become difficult for big firms to sustain
in the market for longer duration (SMEs fuel optimism and growth in British business. 2017). But
small firms have limited expenditures, these are flexible in nature. So they can change their
operations with the changing situation of market.
 Sole proprietorship: It is small size firm which is run by single person. Individual utilize
funds for the person welfare.
 Partnership firm: It is the type of business in which two or more partners invest their
money in business. Both are liable to face risk and profit as per their investment in
business.
 Private company: It is the private player It is listed under London stock exchange and
there is required to have minimum two directors.
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P4 Contribution of small businesses and start-ups in the growth of social economy.
BREXIT was the major incident occur in the Britain in which UK get separated from
Britain. This has increased thread to the nation. After that export firms were facing issues in
exporting goods and services in other nations. EU has to make new trade agreements in which it
has to pay more custom duties and tax to the government.
Small businesses and start-ups plays a major role in the overall development of a nation.
It should be noted that the number of such organisation is the largest and thus, their contribution
in the economy is also an important factor to consider. The large existence of this market
involves more number of people in it which results in the growth of different social factors.
Some of them are explained further:
 Employment: Small businesses and start-ups are focused on hiring people from local
regional areas. As per the data of UK employment of 2014, it has been observed that there
are around 4.5 million people in the country who are engaged in the small scale businesses
and different start ups. These businesses involve retail stores, grocery stores, small sized
technological companies, etc. (Baum, Frese, and Baron, 2014). It further helps in increasing
the social economy by providing job opportunities to the large group of people.
 Rise in living standard: With the help of small businesses and start-ups, people can get
employment. It further assists in earning money that will increase the living standard of
people. This development is regarded as the most beneficial and crucial social growth
factor that is brought by the small size entities. The increment in the living standard
provided local people with the chances of outer environment exposure.
 Increased fluidity in the regional market: The most basic place from where the country
starts developing is the local and regional markets (Storey, 2016). These small businesses
maintain the fluidity in the local markets by rendering effective purchasing, selling
chances and other business operations that are essential to manage the fluidity of money.
 Globalisation: The opening of new small sized businesses and innovative start-ups
increase the level of globalisation in the nations. These increments assist the society by
improving their way of living, global opportunities, business expansion possibilities, etc.
Thus, these are some most common benefits that will be earned by the country and the societies
(Burrows, 2015). With the help of these mentioned advantages, local people can ensure the
desired growth.
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P5 Characteristics, traits and skills of successful entrepreneurs.
Determination towards goal is the main skill in entrepreneur that helps the person in gaining
success. Bill gates is the great example of this, he has become successful due to his
determination towards goal.
Innovative skill is another characteristic of the person that makes him different from others.
Entrepreneur Business manager
 Business owners take risk and bring
innovation for the development of the
business.
 Business owner motivate people so that
he can build a good team.
 Managers follows instruction and
mange activities in organization
 Business managers is limited with the
business activities.
The traits and skills of a person relies on his/her personality and cognition. Thus, it varies
from person to person. However, there are some common traits which are possessed by mostly
all the successful entrepreneurs. These are as follows:
 Risk taking ability: In order to take effective business decisions, an entrepreneur has to
face the situations of risk several times. In this way, it is highly demanded for a business
person to have the calibre to take risks. Every new innovation that is added in the
organisation is the result of this ability only. For instance: Richard Branson, CEO of Nike
has brought again the concept of stitched sneakers in the “Flying Knit” series. This action
is regarded as the most beneficial change plan for the company as it has increased the
company sales with considerable percentages (Kuratko, 2016).
 Creative thinking: This is what companies seek in entrepreneurs. They are known for tier
innovative development. In this order, it is demanded by a business person to possess
creative thinking that helps in brining effective ideas to the business. This, in turn, helps
in increasing value of the entity by their thoughts.
 Hard working: The key to success is the hard work behind it. The same concept goes with
the entrepreneurs. They are needed to set a specific goal to achieve. Later by hard work,
they can attain the aim.
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 Leadership skills: In order to make business functions running on the right track, it is
required to effectively lead the employees and team members. For this, entrepreneurs
should possess leadership skills within them. Under this, they should involve all the
members in the decision-making procedures. It will not only increase the motivation of
the group members but also assist in making availability of varied options or change
ideas to select from.
 Potential to bring the changes: Entrepreneurs should possess calibre to bring out
effective changes in the existing ineffective or less effective strategies of the business.
These alterations should be done in such a way that they help in increasing the
effectiveness of business. For instance: Mark Zuckerberg has made possible to
communicate with the people sitting in any corner of the world (Mark Zuckerberg
Cofounder, Chairman and CEO, Facebook, 2017)..
 Time management skills: It is the foremost competency to be required by an
entrepreneur. There exist different roles that are to be played by a business person.
However, all these functions are given a specified time so that the work can be managed
effectively. For instance: Bill Gates is known for performing each and every action in
settled time frame.
Thus, these are the common personality skills and traits that are commonly present in the
most of the successful entrepreneurs.
P6 Impact of entrepreneurs' personality on motivation and mind-set
Motivation and firm mind-set are both those tools which assist in becoming an effective
entrepreneur. Both these elements play a crucial role in influencing the personality of
entrepreneur. Below are the common factors that impacts on the motivation and mind-set of an
entrepreneur:
 Past life experience: It is regarded as the most general factor that impacts on the mind-set of
a person. In case, if the character has faced favourable incidents then it will help in boosting
the motivation level to proceed in the same direction. However, negative experiences can
harm the effectiveness of the steps taken in the direction of becoming entrepreneur.
 Family Support: Support of family and friends in the undertaking work helps in making the
way simpler. It assists in motivating a person to the appreciable level. This improved
motivation is later reflects in the work by bringing effectiveness in it.
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 Five dimensions are as following:
 Original
 Conscentiousness
 Extroversion
 Agreeableness
 Neuroticism
 All these are main features that make the person a successfully entrepreneur. Mark
Zuckerberg is the successful business person, his original work of Facebook application has
made him successful. Bill gates is another example who is having extroversion skill that
have supports the person in thinking beyond anything and gaining success.
 Self-motivation: It is that factor that lies within the most of the successful entrepreneurs.
Self-motivation helps a person to keep moving in the right direction. This consistency is
later helps in increasing the performance as an entrepreneur (Kirzner, 2016).
 Interest in selected profession: In order to stay committed with the business role, it is
essential to have interest in it. This is a key requirement for motivate entrepreneurs to work
effectively.
 Educational background: It also helps in making firm mind-set of a person for the settled
goal. If the educational background of entrepreneur will support the chosen work field then
it will automatically help them in feeling motivated.
Thus, these are the general factors that impacts on the motivation and mind-set of entrepreneurs
that later reflects in their entrepreneurship.
P7 Role of experience and background in either hindering or fostering the entrepreneurship.
There exits some factors based on the personal life experiences and the background of
entrepreneur that plays a major role in the entrepreneurship. These factors can either hinder or
foster the effectiveness of the business person. To gain the deep in-sights and the impact of these
factors, a suitable example will be taken. In order to achieve the understanding on this task, the
selected character is Mark Zuckerberg who is co-founder, chairman and CEO of Facebook.
Below present some early life and other parameters that show the factors impacting the
entrepreneurship:
Upbringing: This is regarded as the most crucial factor that impacts on the entrepreneurship. Of
the support of family is given to the decided goal then it fosters the entrepreneurship (Drucker,
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2014). Mark Zuckerberg was raised in a Jewish family that highly supported him in achieving his
goals. His parents appreciated the decision of become a programmer. This can be reflected with
the fact that his father has arranged a home tutor for studying basics of programming to Mark at
the age of 10.
Education: The selected character Mark Zuckerberg is known for the early start of the
experimental learning in the field of programming. He has started studying the basics of
programming at the age of 10. At 12, Mark was aware with the languages such as C, C++, etc.
Also, the entrepreneur has started preparing games and others by this knowledge. The first
programming for a social media app was attempted at the time when he was in high school.
Thus, the educational background is also helpful for Mark in fostering his way of become a
successful entrepreneur.
Economical condition: The economical condition of the selected entrepreneur was also in
favour with his growth. Both the parents were earning by their renowned profession of teaching
and managing. Thus, there was never as such any problem faced by Mark Zuckerberg associated
with the finances that created any issues in the way of becoming an entrepreneur (Mark
Zuckerberg Cofounder, Chairman and CEO, Facebook, 2017).
Relevant Experiences: There was a incident that has made Zuckerberg to face some troubles. In
the high school days as practising the programming, he had developed an application in which
students can access photographs and Ids of other. The university administration has terminated
the degree for this. Experience plays significant role, if person has huge experience then it helps
them in making sound decisions and developing the business. If government is making changes
in policies and individual has good experience about market condition and government norms
then it will be helpful in making positive changes in business so that entity can be run smoothly.
CONCLUSION
From the above report it can be articulated that skills and capabilities of an entrepreneur
helps in establishing new business in the market successfully. Individual has ability to manage
operations and minimize risk of the organization. Small firms contribute well in the economy
development of the nation. These firms helps in increasing employment opportunities in the
country and improving living standards of the population. In addition to this, the undertaking
also uncovers the essential requirements from perspectives of personality, skills and traits needed
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to become a successful entrepreneur. Also, it has been analysed that the past experience and
background of an employee plays a pivot role in the entrepreneurship.
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REFERNCES
Books and Journals
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Kirzner, I. M., 2015. Competition and entrepreneurship. University of Chicago press.
Kuratko, D. F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Storey, D.J. ed., 2016. Entrepreneurship and new firm. Routledge.
Baum, J. R., Frese, M. and Baron, R. A. eds., 2014. The psychology of entrepreneurship.
Psychology Press.
Burrows, R. ed., 2015. Deciphering the Enterprise Culture (Routledge Revivals):
Entrepreneurship, Petty Capitalism and the Restructuring of Britain. Routledge.
Online
Mark Zuckerberg Cofounder, Chairman and CEO, Facebook, 2017. [online] Available through:
<https://www.forbes.com/profile/mark-zuckerberg/>
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REFERENCES
Books and Journals
Abreu, M. and Grinevich, V., 2013. The nature of academic entrepreneurship in the UK:
Widening the focus on entrepreneurial activities. Research Policy. 42(2). pp.408-422.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Schaper, M. T. and et.al., 2014.Entrepreneurship and small business.
Storey, D. J., 2016. Entrepreneurship and new firm. Routledge.
Burrows, R., 2015. Deciphering the Enterprise Culture (Routledge Revivals): Entrepreneurship,
Petty Capitalism and the Restructuring of Britain. Routledge.
Bhachu, P., 2017. Immigration and entrepreneurship: culture, capital, and ethnic networks.
Routledge.
Jaskiewicz, P., Combs, J. G. and Rau, S. B., 2015. Entrepreneurial legacy: Toward a theory of
how some family firms nurture transgenerational entrepreneurship. Journal of Business
Venturing. 30(1). pp.29-49.
Nambisan, S. and Baron, R. A., 2013. Entrepreneurship in innovation ecosystems: entrepreneurs'
self‐regulatory processes and their implications for new venture
success.Entrepreneurship Theory and Practice. 37(5). pp.1071-1097.
McKenzie, D. and Woodruff, C., 2013. What are we learning from business training and
entrepreneurship evaluations around the developing world?. The World Bank Research
Observer. 29(1). pp.48-82.
Online
Business and entrepreneurship skills and experience. 2017. Available through: <
https://www.innovationpolicyplatform.org/content/business-and-entrepreneurship-skills-
and-experience>
SMEs fuel optimism and growth in British business. 2017. Available through:
<http://www.telegraph.co.uk/business/sme-management/british-business-growth/>
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