Higher National Diploma in Business Assignment 2022

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Higher Nationals
Assignment Brief – BTEC (RQF)
Higher National Diploma in Business
Student Name Loredana Luca ID
Unit Number and Title 09: Entrepreneurship and Small Business Management
Academic Year 2019-20 Cohort Sept 18 Block 2
Unit Leader Seethalakshmy Assessor PriyanganiAriywansha
Assignment Title Entrepreneurship and Small Business Management
Issue Date 25.03.2019
Submission Date (Formative) 13.05.2019
IV Name Sean Barrett
Deadline for assignment
submission
24.05.2019
Loredana Luca 23.05.2019

Table of Contents
INTRODUCTION...........................................................................................................................3
P1 EXAMINE SEVERAL KINDS OF VENTURES REGARDING ENTERPRENUERSHIP
AND ELABORATE HOW THEY ARE CONNECTED TO THE TYPOLOGY RELATED
TO ENTREPRENEURSHIP.......................................................................................................4
Serial entrepreneurs and entrepreneur:
…………………………………………………………………………………..4
Entrepreneurs and owner-managers:...............................................................................................4
P2 FIND OUT THE SIMILARITIES AS WELL AS DISTINCTION BETWEEN
ENTREPRENEURIAL VENTURES..........................................................................................7
P3 INTERPRET AS WELL AS ASSESS DATA CONSIDERED TO BE RELEVANT, AND
STATISTICS FOR THE PURPOSE ILLUSTRATING HOW MICRO ALONG WITH
SMALL BUSINESSES IMPACT ON THE ECONOMY........................................................11
P4 ELABORATE THE SIGNIFICANCE OF SMALL BUSINESSES ALONG WITH
BUSINESS START-UPS INCASE OF THE DEVELOPMENT OF THE SOCIAL
ECONOMY:..............................................................................................................................16
P5 DETERMINE THE TRAITS AS WELL AS SKILLS OF A SUCCESSFUL
ENTREPRENEURS THAT DISTINGUISH THEM FROM BUSINESS MANAGERS OF
OTHER KINDS:........................................................................................................................19
P6 ASSESS THE WAY ASPECTS OF THE ENTREPRENEURIAL PERSONALITY
REFLECT ENTREPRENEURIAL MOTIVATION AND MINDSET....................................22
LO4................................................................................................................................................24
P7 ASSESS, WITH THE HELP OF RELEVANT INSTANCES, THE WAY
BACKGROUND AS WELL AS EXPERIENCE CAN RESTRICT OR DEVELOP
ENTREPRENEURSHIP............................................................................................................24
CONCLUSION..............................................................................................................................26
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REFERENCES..............................................................................................................................28
INTRODUCTION
The term Entrepreneurship is considered to berisk-taking and also theability to begin a
new business with the objective of incurring high profit in the business (Burns et al., 2016). This
assignment gives an insight into various types of ventures characteristics and traits of an
entrepreneur. This assignment also brings light on the similarities as well as differences among
several ventures, the effects of the entrepreneurship on the economy with the help of the statistics
and data and it also discusses the male and female entrepreneurship and the appropriate
characteristics of entrepreneurs with the significance of entrepreneurship in the economy.HSO is
a business organization established in 1989. It is considered to be a small-scale business.The
business organization is based out of United Kingdom, which basically works with ERP as well
as cloud solution. The main objective of this organization is to become one of the most efficient
suppliers for the business solution, in order to foster improvement in business operations,
bringing sustainability in the business, and also to strengthen the customer base.
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P1 EXAMINE SEVERAL KINDS OF VENTURES REGARDING
ENTERPRENUERSHIP AND ELABORATE HOW THEY ARECONNECTED TO THE
TYPOLOGY RELATED TO ENTREPRENEURSHIP
Entrepreneurship: The term ‘entrepreneurship’ refers to the procedure of taking the venture to
establish a business, and along with the financial risks related to the business with the
anticipation of incurring profit in future. In other words, this is a process, in which the business
activities are being carried out by the owner of the business in alignment to other activities
related to the business for the purpose of incurring profit in business. “Entrepreneurship is the
process of risk taking by the owner of the business to make a profit out of the whole process”
(Drucker 2014). For example, one of the ventures that an entrepreneur has to take is the
responsibility to satisfy the clients. In other words, one of the most significant risks or ventures
for an entrepreneur is to fulfil the expectations of the client and increasing the sales without lying
to the customers.
Serial entrepreneurs and entrepreneur: The term serial entrepreneur refers to the person who has
achieved efficiency in taking risks in a business and continues to apply innovative ideas to
expand and flourish multiple businesses. On the contrary, an entrepreneur employs an idea to
begin a company and accelerates the regular functioning of that company only. As a real life
instance of serial entrepreneur, the name of Andreas von Bechtolsheim can be mentioned.
Andreas von Bechtolsheim is the co-founder of the company, Sun Microsystems. Andreas von
Bechtolsheim was responsible for several innovations and joint ventures like the launching of a
company that operates on the domain of server technology and merging it with Sun
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Microsystems. It is evident from the real life story of Andreas von Bechtolsheim, that, being
innovative and retaining consistency in the application of innovation, are the two major risks or
ventures that a serial entrepreneur needs to take.
Entrepreneurs and owner-managers:
An entrepreneur as well as manager plays two different roles to establish and accelerate the
activities of a business organization. Entrepreneurs can be considered as the owner of a
company. On the other hand, a manager is actually an employee of a company. Both the roles of
the owners as well as managers are significant for a company. Often the person at the position of
a manager is considered to be the contact person for the client. On the contrary the owner of a
company is the person who owns the company and is also assigned with the responsibility of
completing each and every business activities. Owner of a company is not assigned with the
responsibility of only one department of that company, whereas, the manager of a company is
assigned with the responsibility of a particular department of that company. Again, a owner may
play the role of a manager in case of a company A real-life instance of an ideal owner –manager
can be found from the role played by Lawrence Gunning as a CFO as well as director of British
Airways who is popular for his substantial contribution in British the growth of British airways.
Ventures: Ventures can be considered a special kind of business, which basically depends on
innovation as well as development regarding social and also economic values. There are several
types of ventures that the entrepreneurs of contemporary era may take. For instance, in case of
medium-scale businesses, an entrepreneur can take ventures like becoming retail consigner over
the internet, conducting services like copywriting as well as editing, attracting the targeted
customers through blogging.
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The type of the ventures is defined below:
Intrapreneurs: The term ‘Intrapreneur’ refers to the employee of a business organization who
makes strategies to develop the business. Intrapreneurs do not involve in any external as well as
internal risks which cast upon a negative impact on the operations of a business. However,
Intrapreneurs possess access to entire resources of a business; a real life instance of
Intrapreneurship can be found from the contribution of Paul Buchheit towards the foundation as
well as maintenance of G-mail.
Independent Entrepreneurship:
In case of ‘Independent entrepreneurship’ the owner of the business works independently, to
establish a swell as accelerate the business. This includes taking financial risks, operations,
innovation in the procedure of the business as well as the product for the purpose of incurring
profit. As the real life instance of the independent entrepreneurs the names of Duncan Bannatyne
along with Peter Jones can be mentioned. This kind of entrepreneurship can be found in the
medium and large scale industries. Hence, the size of the industry in this case is medium or large.
The purpose of this entrepreneurship is generally earning profit as well as sustainability. Without
compromising social welfare and environment sustainability. Generally in the service sectors as
well as FMCG sectors, independent entrepreneurship can be observed. Growth rate in the service
sector is 50.4%, as compared to that of the other sectors which follow the traits of independent
entrepreneurship.
Lifestyle venture: Lifestyle entrepreneurships the business which is carried out with the
objective of transforming their lifestyle. In other words the aim of this type of entrepreneurship is
not achieving profits only. As the real life instance of the lifestyle entrepreneurs the name of
Marc Biles who is the founder as well as CEO of Ratio, can be mentioned along with the name
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of Clive Jackson who is the founder as well as CEO of Victor. This kind of entrepreneurship can
be found in the large scale industries, fashion and apparel industries. Hence, the size of the
industry in this case is large. The purpose of this entrepreneurship is generally earning profit
sustainability and illuminating the brand image with appropriate Corporate Social Responsibility
strategies. Lifestyle entrepreneurship can be seen in Clothing sector, Growth rate of the clothing
sector due to the intervention of lifestyle entrepreneurs of modern era, is around 67.3% which is
substantially higher than the growth rate in 2018. The clothing sector is expected to grow to
78.1% by the year 2023.
Public sector: The government of a country is assigned with the responsibility of the Public
sector entrepreneurship. This business possesses flexible shareholders. Moreover, theyare not
indulged in taking high risks. Thus public sector entrepreneurship creates value for the public as
well as society. For instance: London Treasure Graduate finance Public sector entrepreneurship.
The Government of United Kingdom, Government employees executives are the Public sector
entrepreneurs. This kind of entrepreneurship can be found in Government NGOs, non-profit
organizations subsidized by the government of United Kingdom. industry in this case is medium
or large. The purpose of this entrepreneurship is generally serving people, and foster
environmental sustainability. Generally in the health and service sectors (including the service of
public sector organizations, NGOs), this type of entrepreneurship can be observed. Again the
growth rate of the public sector of United Kingdom has been escalated to 31.2%, which is much
higher than that of 2018.
Private Sector: The term Private Sector Entrepreneurship refers to the business venture
established with the sole purpose of earning profit only without focusing on the public interest.
This is the business which is owned privately. As the real life instance of the private sector
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entrepreneurs the names of Simon Cowell, can be mentioned. This kind of entrepreneurship can
be found in the medium and large scale industries. Hence, the size of the industry in this case is
medium or large. The prime objective of this entrepreneurship is generally earning profit.
Generally private sector entrepreneurship can be observed in the FMCG sector, consultancies
that guide people for by providing financial advises and recruitment. The growth rates of the
private sector of United Kingdom have been escalated to 63.8 % when a comparison is drawn
between the base year 1955 and the current year 2019.
Social Entrepreneur: These are the entrepreneur which carries out the business for the welfare
of the society. The main aim of the business is to add value to the life of the people and not profit
making with maximum social welfare (Burns et al., 2016).
Example: Auction is the company which hires the autistic adult for providing IT solution to the
clients. As the real life instance of the independent entrepreneurs the names of Duncan
Bannatyne along with Peter Jones can be mentioned. This kind of entrepreneurship can be found
in the medium and large scale industries. Hence, the size of the industry in this case is medium or
large. The purpose of this entrepreneurship is generally earning profit as well as sustainability.
Without compromising social welfare and environment sustainability. Generally in the service
sectors as well as FMCG sectors, independent entrepreneurship can be observed.
Serial Entrepreneur: This type of entrepreneur constantly works on new ideas and strategies
and comes up with a business which is very distinctive in nature and concept.
Micro Business: Micro business is operated on a small-scale. In other words, micro-business is
operated withina minimal investment with a sole proprietorship.
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Medium Business: These are the small-sized business where 100 or fewer employees are
working and the investment is also not very high.
Female Entrepreneur: The female entrepreneurs are the business women who come up with a
new idea and start their own business. The female entrepreneurs organize, arrange, and operate
the daily activities of the business on their own. For example, the name of Valerie Stark can be
mentioned. Valerie Stark is the CEO of Huggle
Joint Entrepreneurship
The term joint entrepreneurship refers to the joint venture or joint initiative taken by both the
private enterprises as well as the government sector. As the real life instance of the joint
entrepreneurship the name of Hyde Park can be mentioned
This kind of entrepreneurship can be found in the medium and large scale industries. Hence, the
size of the industry in this case is medium or large. This type of entrepreneurship considers profit
maximization as well as social welfare as its main purposes. Generally, in the sector of social
welfare and goodwill, this type of entrepreneurship can be noticed. Organizations operating on
the domain of social welfare, scientific development, exhibits joint entrepreneurship of the
government as well as the private sector. Hence, size of the compnies exhibiting joint
entrepreneurship is large. The contribution of the companies operating in the joint venture of
Government as well as private sector has been increased to 107% during the past 10 years. This
indicates to the effectiveness of joint entrepreneurship.
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Cooperative Entrepreneurship:
Cooperative entrepreneurship refers to the collective effort of many people to establish an
enterprise. As the real life instances of cooperative entrepreneurship the name of the famous trust
organizations of United Kingdom can be mentioned these are- Transparent Hands, CrowdCube,
Seedrs, JustGiving, Funding Circle. Trust, NGOs, in the Goodwill sector exhibits this type of
entrepreneurship. The purpose of this type of entrepreneurship is to conduct social welfare and
foster social as well as environmental sustainability. Growth rates of Trusts depending on
cooperative entrepreneurship are increased from 42.5% in 2010-2011 to 45% in 2014-2015
(Kirzner 2015).
Conclusion:
In the conclusion, it can be said that, Entrepreneurship can be considered as the procedure related
to the taking the responsibilities as well as risks to establish a business with the anticipation of
incurring profits. Entrepreneurs not only contribute to the industrial growth of a country but also
boost the overall growth of an economy.
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P2 FIND OUT THE SIMILARITIES AS WELL ASDISTINCTION
BETWEEN ENTREPRENEURIAL VENTURES.
Compare and Contrast between several types of entrepreneurship:
Lifestyle Ventures are run in the case of a business with the implementation of innovative
as well as new ideas. The main purpose of Lifestyle Ventures is to transform the standard of
livings well as status. On the other hand, one of the similarities between lifestyle ventures and
serial entrepreneurs is that both of them aim to incur high levels of profit through the application
of innovative ideas. Again there is substantial difference between lifestyle ventures and serial
entrepreneurs. Serial entrepreneurs concentrate on continuous implementation of innovative
ideas in several new businesses they intend to handle. Another type of entrepreneurship is the
entrepreneurship conducted by female in the small and medium businesses. The similarity
among lifestyle ventures, serial entrepreneurs and female entrepreneurs, is that in case of all
three kinds of entrepreneurship the prime objective of the entrepreneurs remains the same which
is incurring profits and earning fame. One of the distinctions between lifestyle ventures, serial
entrepreneurs and female entrepreneurs, is that, often the small as well as cottage industries
which involve women as entrepreneurs, emphasizes on social welfare and women empowerment.
The objective of male entrepreneurs is to earn a substantial level of profits. On the other hand
one of the distinctions between male entrepreneurship and female entrepreneurs is that male
entrepreneurs are more tolerant as compared to the female entrepreneurs. Again there are
cooperative entrepreneurs. Cooperative entrepreneurship refers to the collective effort of many
people to establish an enterprise. Hence the difference between cooperative entrepreneurs with
all other entrepreneurs is that, cooperative entrepreneurs concentrate on more than one venture
and they focus more on social welfare and environment sustainability. There is another kind of
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entrepreneurship termed as joint entrepreneurship. One of the notable differences among joint
entrepreneurship and lifestyle ventures and serial entrepreneurs male and female entrepreneurs is
that, joint venture entrepreneurship involves the initiatives of both the private enterprises as well
as government sectors. Hence, this type of entrepreneurship can emphasizes on profit
maximization and public welfare (Drucker 2014).
Public sector entrepreneurship is considered to be the type of business owned by ateam of
people who may be a government body. This government body may be assigned with the
responsibility to regulate businesses of a particular economy. This type of entrepreneurships
considers earning profits as their main objective. Another objective of this entrepreneurship is to
increase GDP and foster economic growth. In order to achieve its entire objective this business
follows traditional practices. This business also focuses on adopting public policies. In this case
adoption of public policies implies, taking up initiatives to implement innovative public policies,
so that larger economic revenues can be earned. Along with this, the main focus of this type of
entrepreneurship remains on the well-being of the society and growth of a country as well. This
business does not depend on any kind of strategies for expansion (Morris et al.,2018).For
instance, it can be said that, NHS attempts to implement entrepreneurial policies at core level
(NHS, 2019).
Private sector of entrepreneurship is another type of business in which owner is
considered to be the soul of the business. Both the modern as well as the traditional practices are
followed in this business. This assists the business to incur high profits. Hence, it can be said
that, the generation of a high level of revenue as well as profits can be considered to be the main
aims and objectives of the business. Business experts support private sector entrepreneurship, as
this kind of business fosters innovations in business. In case of private sector of
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entrepreneurship, profit is distributed among employees in terms of bonus, which in turn, assist
in enhancing the standard of living of the employees. This also aids in the growth of the business
(Netajiet al.,2017).
Conclusion:
Hence, it can be said that, Entrepreneurship is one of the ineffaceable parts of the small,
large and medium-scale business. Which make substantial contribution to the industrial growth
of a country and also paves the ways for employment generation and overall economic growth of
a country.
P3 INTERPRET AS WELL ASASSESS DATA CONSIDERED TO BE
RELEVANT, AND STATISTICS FOR THE PURPOSE
ILLUSTRATINGHOW MICRO ALONG WITH SMALL BUSINESSES
IMPACT ON THE ECONOMY
Small business along with the business start-ups makes substantial contribution in the
economic growth of a country. This is because, small businesses may add to the growth of the
economy of United Kingdom in several ways.The economy of the country can impact in various
ways to the economy. Small business has boosted the growth of the economy of the United
Kingdom. Hence, small businesses can be considered as the backbone of the country of United
Kingdom. The evidence of this can be found, in the abolition of the employment as well as the
poverty from the country of United Kingdom, increase in the gross domestic product of the
nation, as well as the emerges of several new business with innovative ideas (Netajiet al.,2017).
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Another characteristic of small business is that, this kind of business aids in the generation of
employment. Again, small business fosters innovation. Hence, it can be said that, small business
makes a significant contribution in the development of social economy of United Kingdom
(GOV.UK, 2019). The evidence of which can also be found from Office for National Statistics.
That shows the growth of the economy as well as the GDP of United Kingdom at about 1.4% in
the year 2018, which is expected to grow up to 2.4% by 2027.
Source: (GOV.UK, 2019)
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Figure 1: Effect of SMEs on the economy of United Kingdom
SOURCE: (Netaji et al., 2017).
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[Figure 2: SME in the UK]
[Source: Netaji et al., 2017]
In case of the current scenario of the country ofUnited Kingdom, approximately 99% of
the activities related to the economy of United Kingdom consist of the small-scaled business.
Approximately, the small-scaled business absorbs, about 48% of total employment in the country
of United Kingdom. Again, theprivate business also reflects a vast employment opportunity.
Approximately 6.4 million people of the country of United Kingdom are engaged in the private
sectors.A research has revealed that, the SMEs in the country of United Kingdom, has a vast
contribution in the economic turnover of the country. The smaller businesses enter the market,
the more is the significant growth of the country, the growth of the small business in the
economy has a spill over effect in the other sectors of the economy. This reflects in the growth of
the all other sectors of the economy of United Kingdom along with the enhancement in the
employment. Again the foreign foot-falls have also risen. This has also boosted the GDP of the
country. The increase GDP of the country has enabled the government to provide more grants to
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all the start-ups as well as the investment in foreign trade (Netaji et al., 2017).All these transform
the economy of the United kingdom into a stronger economy. This in turn has made provision
for the security f the citizens of the country.
[Figure3:Position of SME in the UK]
[Source:Netaji et al., 2017]
Private Business: A non-public business, which issolely owned as well asdirected by an
individuala team of individuals according to their own terms as well as conditionsand rules,
precisely called private business. In this type of business, the government do not interfere.
Partnership Business: In this type of business, two partners sign legal contracts to
conduct business. In other words this can be considered as the joined venture off two partners.
Sometimes the persons or parties involved in this business are called co-partners. Both the
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partners invest in thebusiness equally. Both the partners possess equal access to the assets and
resources. Again the distribution of profit is equal among both the partners.
Sole proprietorship: In case ofsole proprietorship no distinction can be found between
the business entity as well as the owner of the business. The entire profit is enjoyed by the
proprietor.Again the proprietor becomes solely responsible for all types of losses.
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P4 ELABORATE THE SIGNIFICANCE OF SMALL BUSINESSES ALONG
WITHBUSINESS START-UPS INCASE OFTHE DEVELOPMENT OF THE
SOCIAL ECONOMY:
Social Economy:
Social is created with the help of rich diversity of the company which strives to foster
development in the economy as well as society. For example, associations, mutual, foundations,
cooperatives, etc which conduct its business activity, for the welfare regarding the society along
with the advancement of the economy (Rizoset al., 2015). The importance of small-scale
business lies in the creation of the employment opportunity a well as growth of the economy.
Researchers have found that 9% of the small as well as medium scaled industries along
with the SMEs are considered to be social enterprises that often aim to conduct socialwelfare.
About 371000 entrepreneurs have started their business based on United Kingdom. An instance
of this, is that, United Kingdom attempts to invest almost the half of its total profits accrue to the
economy from other business activities. The current investment in the small-scale industry is
about £6. Government of UK is now free to provide loans to the owners of the small-scale
businesses of United Kingdom. This is because of the fact that, about 52% of the employment in
the small-business enterprises has been occurred in the country of United Kingdom. About 96%
of the SMEs with the greater employment generation potentialities are opened in the country of
United Kingdom. This has paved the way for the development of the standard of living of the
citizens. Again due to the expansion of the small-scale industries marginalized people are also
able to earn their livelihood.
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Employment generated due to the emergence of small-scale businesses is also the
evidence of its positive impacts on the economy of United Kingdom. In United Kingdom, almost
5.7 billion people are able to find employment in the past 6-7 years (Rizosetal., 2015).Again
foreign trade has also risenas small businesses have flourished. This can be attributed to the
increase in the GDP induced by the growth SMES. All these has increased the strengths of
theeconomy of United Kingdom. Due to the overall economic growth, the value of the currency
of the country has also enhanced. Along with the upliftment of foreign trade as well as business,
and development of SMEs, the banking sector has also flourishes. This can be attributed to the
growth of SMEs, and all the small-case businesses, start-ups; which has accelerated the taking up
of loans for business purpose.
People from the different layers of the socio-economic strata are also benefitted due to
the expansion of small businesses in United States. In other words, small business also
contributes to each and every layer of the economy of United Kingdom. This encompasses the
economic advancement in the local, regional, national as well as the global level. Again due to
the enhancement in the grants, innovation has been fostered. This has also boosted foreign trades
as well as exports. All these have made a substantial contribution to the GDP of the country.GDP
of the UK. Again researches have revealed the channelization of 1.14 billion Euros from exports
of the country.
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FIGURE 2: impact of SMEs on the UK economy
SOURCE: (Rizoset al., 2015).
With an enhancement in the small business as well asstart-upsthe total national income of
the country has been increased along with the generation of employment (Rizoset al., 2015). The
increase in the GDP has also fostered development at the local level.As most of the small-
businesses, produce indigenous products which are exported, and a large amount of the loans are
channelized to the small-businesses, the disadvantage groups due to the development of small
businesses, are the large-scale industries.
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P5 DETERMINE THE TRAITSAS WELL AS SKILLS OF A SUCCESSFUL
ENTREPRENEURS THAT DISTINGUISH THEM FROM BUSINESS
MANAGERS OF OTHER KINDS:
The characteristics of each of the entrepreneurs are distinct as compared to others.There
are some similarities in the characteristics of the entrepreneurs, too. Again, there are some
qualities as well as traits which are in-built. All these qualities drive the entrepreneurs towards
perfection.
ENTREPRENEURIAL MINDSET: The thinking procedure of the entrepreneurs
depends on the upbringing, environment as well as the motivation to achieve their goals. All
these shapes the belief systems as well as thinking procedure, innovative mindset, of an
entrepreneur.
MOTIVATION: Motivation boostEntrepreneurs are motivated from their goal. The
motivational factors are the ability to make effective decision to earn profit and their success to
establish a business.(Tasnim and Singh,2016).
RISK-TAKERS: The ability to take risks is one of the characteristics of an entrepreneur.
For the purpose of survive in the highly competitive environment, the art of taking risks are
essential. Again, for the purpose of incurring profit it is important.
LEADERSHIP: The leadership skill is the most essential. An entrepreneur should have
the skill to lead people working under his or her guidance, drive the team members towards
perfection and also achieve the individual as well aorganizational goals.
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COMMUNICATION: This quality is required for the purpose of driving a business
effectively. This is because a business can be run without any loopholes or mismanagement, only
if effective communication is conducted through all the levels or ranks of the employees.
PASSIONATE: The passion of an entrepreneur to achieve his or her goals is one of the
most impactful skills. This skill drives the entrepreneurs every moment and helps the
entrepreneur to reach closer to their goal everyday.
Responsibility–This is one of the key skills of any entrepreneur. In order to become a successful
entrepreneur and to run a business efficiently, an entrepreneur should possess the quality of
taking responsibilities effectively. Again, an entrepreneur should also be able take the
responsibility of eliminating all the risks that a business may face in future, along with the
management of all the present risks.
The spirit of observation–The spirit of observation is one of the most significant qualities that
help an entrepreneur to observe any critical business scenario and the challenges in front of a
business. This spirit of observation, in turn, will enable an entrepreneur to take prudent decisions
to overcome all the challenges.
Tenacity–Tenacity is considered to be the very quality of an entrepreneur, which help an
entrepreneur to survive every kind of difficult situations. For example, an entrepreneur will be
able to face failures and combat negative situation for the purpose of establish a business, if he or
she possess tenacity, along with determination as well as diligence.
Optimism and self-confidence–optimism as well as self-confidence helps
Skills of persuasion–Skills of persuasion is one of the most important qualities that enable an
entrepreneur to pursue all the organizational objectives along with the goals and motivation
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Are entrepreneurs self-motivated?
There may occur scenario in which entrepreneurs do not find any guidance from any of their
colleagues or from the owner of the business. The lack of motivation should not hinder the
maturity of an entrepreneur and growth of a business as well.
Is entrepreneur born or made?
An entrepreneur may be both born and made. Entrepreneurship is the process in which the
business activities are being carried out by the owner of the business in alignment to other
activities related to the business for the purpose of incurring profit in business. For the purpose
of being an ideal entrepreneur a person should possessskills like-risk taking, taking
responsibilities leadership, effective communication. Effective communication skills and the
skills of responsibility may be inherent qualities of a person other qualities are developed with
experiences(Tasnim and Singh, 2016).
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P6 ASSESS THE WAY ASPECTS OF THE ENTREPRENEURIAL
PERSONALITY REFLECT ENTREPRENEURIAL MOTIVATION AND
MINDSET
The education as well as the standard of education, the skilled learned while pursuing the
entrepreneurial courses shape the entrepreneurial personality make their minds self-motivated.
The evidence of which can be found in the growth of small businesses in United Kingdom.
About 371000 entrepreneurs have started their business based on United Kingdom. An instance
of this, is that, United Kingdom attempts to invest almost the half of its total profits accrue to the
economy from other business activities. The current investment in the small-scale industry is
about £6. Government of UK is now free to provide loans to the owners of the small-scale
businesses of United Kingdom. This is because of the fact that, about 52% of the employment in
the small-business enterprises has been occurred in the country of United Kingdom. About 96%
of the SMEs with the greater employment generation potentialities are opened in the country of
United Kingdom. This has paved the way for the development of the standard of living of the
citizens. One of the examples, is entrepreneurship of Mark Zuckerberg,
However, specialists are able to identify that a couple of features which are related to
psychology and also the competencies that attempts to significantly and alsoenhance the
opportunitiesrelated to leadership.
Motivation –As a person use a specific amount of energy to perform his duties well, to
overcome all the challenges that he or she may encounter; motivation is one of the significant
qualities that help a person to move forward with determination. Ths it is true that motibvation
drive a person towards prosperity.
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A clear vision: A clear as well as powerful vision will always help a person to analyze any
complication in the management of a business before it has even occurred. In other words, a
clear vision assists a person to predict all the challenges opportunities as well threats in business.
Leadership skills: Leadership is another essential quality that help a leader to lead a team. The
leadership skill is the most essential. An entrepreneur should have the skill to lead people
working under his or her guidance, drive the team members towards perfection and also achieve
the individual as well a organizational goals.
Lifestyle: lifestyle consists of the traits and also the habits of a person to live his or her
life. Lifestyle also refers to the specific style, norms that every individual follow to live his or her
life. Lifestyle in a broader way indicates to the emotional needs of a person and also his or her
comfort level (Tasnim and Singh,2016).
Traits and skills: The traits as well as skills of a person are two types. Some of them are
in-built and some grows with experience.The trait of an entrepreneur is effective communication
flexibility the skill to lead people, so that individual as well as the organizational goals are
achieved.
Entrepreneurial mindset:
In order to form an entrepreneurial mindset a person needs to inculcate the ability to take
risks and the ability to become innovative. Again, the aspirants of public entrepreneurship needs
to develop a mindset to serve the public. In other words, the aspirants of public entrepreneurship
should realize the need for charity along with the need for risk taking as well as innovation.
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LO4
P7 ASSESS, WITH THE HELP OF RELEVANT INSTANCES, THE WAY
BACKGROUND AS WELL AS EXPERIENCE CAN RESTRICT OR
DEVELOP ENTREPRENEURSHIP
There are several parameters that can either foster or hinder the development of an
entrepreneur. The economic parameters are- poverty, unemployment. The demographic
parameters are education, ethnicity, and gender parameters.
Lack of capital induced by acute poverty can become one of the hindrances in the way of
becoming an entrepreneur. Again unemployment may become one of the reasons for which
people may not even afford basic necessities of life. This hampers the overall growth of people
suffering from acute poverty; they cannot afford to be innovative and cannot afford to establish
their own small-business. Gender discrimination induced by the taboos imposed by the
conservative society may also create obstacles in the way of the success of women entrepreneur
in their small businesses. Often people below the poverty line have to drop their schools at an
early age. They often serve as child labourers. Lack of education becomes one of the hurdles in
realizing their dreams to become an entrepreneur. Often differences induced by diverse ethnical
background, cultural differences, can be marked as a major restriction induced by the
conservative society as well as the policies of the government, in the growth of people as a
successful entrepreneur in United Kingdom.
In case of small business three types of entrepreneurs can be noticed in the country of
United Kingdom.
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Local Entrepreneur:
Example: Alan Sugar, the entrepreneur and founder of Amstrad.
International Entrepreneur:
Example: Phav Daroath is entrepreneur as well as cofounder of at DHV Business.
Social Entrepreneur:
Example: Martin Riddiford and Jim Reeves, the founders of Gravity Light (Kirzner 2015).
The entrepreneurial efficiency depends on the way, how a situation is perceived by an
entrepreneur. Again, the level of optimism of an entrepreneur also determines how his or her
capacity to solve problems. Again, the individual experiences nourish the entrepreneurial skill of
a company. This can be explained with the instance of a local entrepreneur named Peter Jones.
He is an entrepreneur in London. Peter became popular for his interests in different types of
communication media-mobile phones, television. Per is counted among the largest investors in
BBC. He was in the business of personal computer since he was 16 years old. From the analysis
of the story of peter, five dimensions can be found, which impact entrepreneurial parameters:
Openness: An entrepreneur should be open enough to welcome new ideas. An entrepreneur
should have the ability to express and explain. Along with this an entrepreneur should possess
the ability to take prudent decisions, which will be possible if the entrepreneur can analyse a
scenario with an open mind (Tasnim and Singh, 2016).
Conscientiousness:
Dedication to work, is another essential quality of an entrepreneur. If an entrepreneur remains
dedicated to his or her work, it will provide the entrepreneur an area in which they can
experiment and explore new things.
.
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FIGURE 3: Personality traits
SOURCE: (Tasnim and Singh,2016).
Extraversion: Entrepreneurs need to be an extrovert. For the purpose of meetingcompetition in
the market. This is because an extrovert can easily foster effective communication, generate new
ideas, explain the goals of the business, gather information and lead a group of people
effectively. These are essential for carrying on business activities perfectly.(Burns et al.,2016).
Agreeableness: Agreeableness of an entrepreneur reflects his or her optimism as well as risk-
taking capabilities. In other words, it can be said the level at which an entrepreneur agrees upon
to some decision, indicate how efficient he or she is to take risks, or how optimistic the
entrepreneur is. Agreeableness is also the indicator of the tactfulness and friendly attitude of an
entrepreneur.
Neuroticism: Neuroticism is considered to be the ability to handle as well as response to diverse
situations. In other words, how an entrepreneur response to the interpersonal problems affecting
the business, is termed as Neuroticism. Neuroticism may cast upon negative impact on a business
or affect entrepreneurship. Again, if an entrepreneur is said to apply Neuroticism effectively
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when he or she is not affected by anxiety, anger, fear. Hence, effective implementation of
Neuroticism helps an entrepreneur to take decision with a calm mind(Burns et al., 2016).
This can be elaborated with example of an entrepreneur who participates in the
international business activities. An international entrepreneur, Alan Sugar, who belonged to a
poor family, received the idea of becoming an entrepreneur whenhe used to be engaged in the
part time jobs at grocery or stores along with studies. The case of Alan Sugar indicates to the fact
that, the social as well as educational background can cast upondeepimpact on the development
of entrepreneurial skills. This is what happened with Alan Sugar, the looks as well as ethnicity
impacted him. As he was very determinant and pursued his aim with the help of his
determination, his determination outweighs his poor family background and drove him towards
success(Burns et al.,2016).
CONCLUSION
This study has provided in depth elaboration of several entrepreneurship ventures along with
topology. The assignment attempts to highlight similarities as well as differences of the several
ventures and also the characteristics and skills of an ideal entrepreneur. This study also explains
the significance of small-scale business along with its contribution on different levels of the
economy of United Kingdom-local levels, regional levels and also national levels. Finally this
study has focused on the factors that may hinder or development entrepreneurship with real-
world examples (Burns et al.,2016).
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