Entrepreneurship and its Impact

This assignment requires students to research and analyze the multifaceted impact of entrepreneurship. It delves into topics such as job creation, economic dynamism, the role of entrepreneurship education, and the influence of urban environments on entrepreneurial activity. Students must utilize a range of academic sources, including journal articles, books, and online publications, to support their arguments and provide a well-rounded understanding of this crucial subject.

Entrepreneurship
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TABLE OF CONTENTS
Introduction......................................................................................................................................3
Task 1 ..............................................................................................................................................3
P1 Different types of entrepreneurial ventures and its typology.................................................3
P2 Similarities and differences between different entrepreneurial ventures...............................5
Task 2...............................................................................................................................................6
P3 Role of small and micro businesses in world economy by the use of relevant statistical data
......................................................................................................................................................6
P4 Importance of small and start-up enterprises in social economy............................................7
Task 3 ..............................................................................................................................................8
P5 Characteristics, traits and skills of successful entrepreneurs..................................................8
P6 Entrepreneur motivation and mind set are reflects at workplace...........................................9
TASK 4..........................................................................................................................................11
P7 Examining the background and experience that hinders and fosters the entrepreneurship..11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
To grow a business in right direction, manager of a company needs to recognize, predict
and dealt with the changes in both internal and external environmental factors. Entrepreneurship
is an important engine for the growth of a country economy. Entrepreneur is a person who starts
a business. Examples of successful entrepreneurs are Bill Gates, he is a founder of Microsoft and
Steve job, he is a founder of Apple computers.
All the entrepreneurs start their enterprise at small scale and regularly expand their
business by introducing innovative product and services. The present report is based on Small
business entrepreneurs, they are privately owed by cooperation, Small business enterprises have
fewer numbers of employees with less annual revenue. It plays important role in the country
economy because there are various small ventures that makes greater contribution in country
economy.
This report describes the importance of start up and small business organization in
economy. Different entrepreneurs have different skills and characteristics and they are build
according to time and experience. Small business organization are much flexible as compare to
larger organization but it doesn't generate larger annual revenue but small businesses easily
accept environmental changes due to the low cost of fixed operations.
TASK 1
P1 Different types of entrepreneurial ventures and its typology
Small enterprises are of different types and they are unique to each other but the most
common characteristic of every enterprise is they do work with freedom without any external
interference at workplace. There are different theories applied for entrepreneurship such as
ethnic, feminist, institutional entrepreneur. By having an application of methods the issues can be
overcome in desired manner.
Large entrepreneurship- Larger business organization have large number of employees
and generate larger sales revenue. Large size of organization have finite life cycle but it can
exceed by innovation in existing product and services and use of updated technology helps in to
maintain sustainable competitive advantage over their existing competitors in market place.
Larger organization faces various challenges due to the changes in customer taste, technology
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and their substitute and same product competitors exert the pressure for disruptive innovation
and serve their innovative product to new customers in new market, it helps in to capture wider
market region. Some times big companies acquires innovative company at the saturation level of
their product life cycle that helps in to building disruptive product and services in order to
maintain sustainable position in market place.
Scalable start-up entrepreneurship- It is a type of start up venture not a small business
organization. That type of entrepreneurs establish their business with a vision to change the
world. In this type of business organization, they hires best and brilliant candidates for disruptive
innovation and helps in expand their business, Microsoft and Amazon at its initial stage they are
the start up organization after that they hire brilliant talent for making the firm innovative with
the expansion of business.
Social entrepreneurship- That type of organization creates innovative product and
services that helps in to solve social needs and problems (Drucker, 2014). They may be a kind of
non profit, for profit or hybrid organization. Social business organization main motive to create
social welfare in a community rather than to maintain wealth in a company.
Research entrepreneur- That kind of enterprises examines the scenario in a market and to analyse
opportunities and threats in order to get success. That types of organization effectively detects
the environmental factors in order to start-up and expansion of business organization and have
ensure about the success of an enterprise. It gives an idea about the business how to proceed it
and what key elements are necessary to adopt and to achieve competitive advantage.
Typologies are the categorization of available enterprises on behalf of characteristics and
attributes that makes diversification in market place. Typologies determines efficient activities
and their outcomes in order to achieve competitive advantage. Different typologies are to be used
for small and large business organization and determines their roles and responsibilities in order
to meet market demand and needs.
In addition to this, it can be stated that by having an application of typologies the
businesses can have impressive level of success. The current market working is based on
feminist entrepreneur as it is offered outfits for women to improve their living standards. It is
significant to make sure that entrepreneur are having ethical working so that cooperative culture
can be advanced. It assist in meeting social change for sustainable development. It reflects that
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women aspect is considered on priority basis whereby entrepreneurs bring drastic changes in the
society.
P2 Similarities and differences between different entrepreneurial ventures
Every organization have some similarities and differences with their competitors due to
their policies and strategies. Even same type of organization have different policies and
procedures that makes differentiate with others.
Differentiation may be basis on several factors such as
Goal- Every business organization have identical and unique goal. But most of the
organization main goal is to achieve financial and strategic goal that maintains the interest of
company associated stakeholders. Stakeholders mainly attracts by the potential growth and
competitive position in market place. On the other hand social enterprises main goal is to gain
sustainable profit with welfare in society in order to solve their problem and meet their
respective needs.
Mind set- Mind set is another variable for making differentiation between several
organizations. Some of the business enterprises pursuit towards to earn maximization of profit
while social business enterprises move towards passion of work because its main goal is to solve
problems and create welfare in a community and that type of organization are not profit
organization and serve their product to those people who have actual need (Burrows, 2015).
Value creation- All kind of business venture creates and deliver value to customers
through competitive pricing and serve best quality of product and services. But in case of social
organization they create and provide social values to target communities, it serve both strategic
tool of social responsibility are value economic and social welfare.
Communication- It is one of the most strategic tools for achieving competitive position
among their rivalries at market place. Communication may be a type of formal and informal
according to organization structure. Every businesses organization spent huge amount of money
on marketing of product and services. Different marketing tools and strategy are to be used by
different organization. Most of the organization uses TV, print and social media marketing
strategy (Kuratko, 2016). All these marketing tools conveys message and information to
potential customers regarding to their product and services. Social enterprises uses different
marketing tools like word of mouth and self promoting strategy in order to create wealth and
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welfare in a society. But all type of organizations main motive is to reach at mass of population
and serve their product.
Similarities between business and social entrepreneurs.
All type of organizations are moving towards profit oriented growth strategy that can be
achieved by the revenue exceed over expenses. Business organizations main mission is to
improvement their commercial condition as well as social organizations main focus is to improve
social condition in market place.
All the business and social enterprises are moving towards the common objective that is
to solve market problems and provide solutions in order to improve the living standard of society
along with enhancement in the country economy. Value perception of all business entrepreneurs
is common that is to maintain interest of shareholders and other investors by regularly generate
the profit.
TASK 2
P3 Role of small and micro businesses in world economy by the use of relevant statistical data
Data analysis and its interpretation is a statistical tool for doing research. Data analysis is
done after the suitable collection of data, analysis of data to be done for measuring the suitability
of data for ongoing research study. This process is begin until the relevant data have been
collected and condensed in to a number. Small and micro businesses creates larger job
opportunities in another words they the engine of job creation whole over the world and they
makes larger contribution in world economy. According to business standard 25 millions of
small businesses are exist in Only UK (Kirzner, 2015).
Small size enterprises doesn't generate larger sales revenue as compare to big
organization but they plays important role in the country economy. Micro and small businesses
create larger employment opportunities in order to reduce employee turnover ratio because they
have an ability to attract right talent and retain for a longer time period. They also have an ability
to adopt and respond quickly for the changes in the economic climate because they are very loyal
with respect to tough situation and they can afloat their operations in critical situation. That type
of organizations are mostly customer and profit oriented. Large business organizations are also
dependent on the small scale enterprises for outsourcing their business functions and operations
in order to reduction in their work load.
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Today's large business co operations like Nike and Ben started as a business but it grew
with the time and innovation in product and services, it helps in to cover wider market region.
They are become a major player in national and international market. Microsoft is the prime
example for world and gives a quotation how a business idea can change the world. Small and
medium enterprises plays a major role in developing countries economy.
SME contributes 45 percent of total employment and makes up to 33 percent of GDP
contribution in emerging economy. According to business standard approximate 600 millions job
will be needed in next 15 years in Asia and Africa. Larger enterprises creates higher proportion
of value adding in high and low tech manufacturing while SME creates a higher of value added
in service sector. In most countries, dependent SME are more open for international trade rather
than independent SME.
Small business entrepreneurship type of business enterprise are small in size with few
number of employees with lesser sales revenue. Small business organization are a type of
grocery store, retailer, consultants and travel agent etc. That type of organization hires employees
from local region in order to create wealth at local area and to improve their standard of living.
Small business organization arrange the fund for the establishment of small enterprise from
family members, friends and any kind of small business loan (Schaper, Volery, Weber, and
Gibson, 2014). In order to have continuous development it is necessary to have application of
economic values. By having an improvement in procedures the business firm is well focused
towards economic development.
P4 Importance of small and start-up enterprises in social economy
Social enterprise is an organization that makes improvement in human and environmental
well being, It can be structured as a profit or non profit. Social economy is the third sector of
economy among the various economy. Several organization takes participate in social economy
that is cooperatives, non profit and social enterprises or charities. they maintains the relationship
between the economy and social behaviour of country (Burrows, 2015).
Social enterprises satisfied the needs and expectations which one is ignored by public and
private business firm. Social enterprises plays a vital role in social economy. They also plays a
unique role in creating a strong, sustainable and prosperous society. It also influence the
consumer buying behaviour by moral, ethics and human philosophies. Small businesses main
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focus on building and maintaining personal relationship with customers, employees and their
suppliers. Small and start-up businesses have an ability to take quick decision due to the changes
in circumstances.
The UK get apart from the EU after Brexit it highly impacts on UK economy in various
different sector such as employment, production, employment, finance and marketing sectors etc.
The economic growth rate of UK country affected adversely at various different levels. In
addition to this, it can be said that business can have improved focus on innovation, products and
techniques so that economic development contribution can be advanced in desired manner. It
will lead to advancement in GDP and ensure that UK is having continuous development. By
having an application of such values the unemployment rate can be controlled in order to boost
the opportunities.
They are also much flexible and easy to adopt environmental changes and accept the
challenges due the presence little hierarchy and chain of command so that quick decisions are
taken by any level of hierarchy in order to reduce the negative impact by the environmental
changes. Well settled small and start-up businesses are in condition to introduce and develop
new ideas that helps in to provide wide range of product and services and that are environmental
friendly.
Small businesses are much efficient to make profit on much lower sales volume because
they have larger switching capacity from one mode of operation to another effectively. Start-up
company focus on to sustainable position in market place rather than to earn high profit. Start-up
organization are in position to introduce an develop creative idea towards the fulfilment of
market expectations.
Many non profit organizations are working towards grooming the personality of
unemployed persons that are eligible for making major contribution in social economy. Societal
growth is the key element for the welfare and improvement in living standard of a country people
(Carland, and Carland, 2015). It provides an opportunity for self development as well as
enlargement in economy condition. All types of business organizations are profit and growth
oriented and they contribute some part wealth to the welfare of society. Small and startup
businesses creates more employment opportunities that makes the country economically more
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soundful. Startup business introduce innovative and unimaginary ideas that provides tools and
instruments for making life easier.
TASK 3
P5 Characteristics, traits and skills of successful entrepreneurs
Most of the successful entrepreneurs are enthusiastic, optimistic and future oriented.
They can willing to take risk and pursuing towards extreme profitability. Entrepreneurs are a
diverse bunch and share a collection of characteristics, traits and skills etc.
Characteristics of a successful entrepreneur- Characteristics is positive aspect to the
success of an organization that enables the entrepreneurs to take risk and achieve high
competitive advantage. They have an ability to make strategic planning, money management and
retain the customers for a longer time period. Successful entrepreneurs are more passionate and
self motivated towards their work (Bae, Qian, Miao, and Fiet, 2014). They also have an ability
to do work over and over again without getting bored and maintain efficiency with less error.
Entrepreneurs are more confident and dedicated towards their work and very much
competent towards the deadline of accomplishment of task. They have an ability to take higher
risk about future uncertainty because they are unknown about their cause and effect that may be
favourable or unfavourable. Competent entrepreneurs are more flexible and easy to adopt all
environmental changes and have ability to develop the solution in a critical situation. Successful
entrepreneurs take advice and accept suggestions for optimum utilization of resources and able to
provide wide range of customized product and services that helps in enhancement in the
customer satisfaction level.
Financial resource management is the core characteristics of an entrepreneur to plan for
present and future financial obligations. It helps in effective allocation of fund according to the
set activities and effectively manage the operational processes in order to get success. Effective
planning and sound implementation of activities generates better outcome. Successful
entrepreneurs believes that spreading of wide network helps in towards approaching the mass
people and to serve their product and services.
Traits of a successful entrepreneur- Traits of an successful entrepreneur are basically
depends on their geographic location, income level and social status so that their attitude and
characteristics are varied from entrepreneur to entrepreneur. Entrepreneurs are more passionate
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about their work, it is based on company specific mission that drives internal reward with job
satisfaction. Business owners are much efficient and find out their target market along with
effective evaluation of previous mistakes in order to achieve future growth.
Tolerance of ambiguity is a classic trait it defines the risk taking ability with respect to
reduce fear of uncertainty and potential failure. In an organization every one faces fear of
humiliation, fear of missing payroll, running out of cash and fear of bankruptcy. Successful
entrepreneur have an ability to overcomes these fear up to a certain extent (Decker, Haltiwanger,
Jarmin, and Miranda, 2014).
Skills of an entrepreneurship- Skills are the key element for the success of any
organization. Successful entrepreneur have strong communication skill and they know very well
about the different communication techniques which helps in to convey information and message
to related members of an organization. Entrepreneurs basically uses email, phone and video
conferencing techniques as much as possible for connecting distance people. Entrepreneurs have
an ability to make effective strategic business planning and take alternative course of decision for
continuous ongoing process for better outcomes.
The core skills of successful entrepreneur is to identify strength and weaknesses along
with analyse environmental factors with respect to get opportunities and reduces the threats for
better success of an organization. Entrepreneurs regularly connects with social networking sites
for measuring the customer perception and taste through the given feedback (Kerr, Nanda, and
Rhodes-Kropf, 2014). Business owners doesn't get success every time they also face failure
outcome so that they use their experience and knowledge so that it helps in to convert failure
outcome in to acceptable outcome by reducing their impact.
In addition to this, it can be stated that successful entrepreneurship is considered as
combination of factors which allows advancing accomplishment of roles and responsibilities. If
such measures are not appropriate then it will impact the overall outcome. By having an
appropriate use of diverse communication methods the business firm can have sustainable
development. Writing skills that is also beneficial in its career growth due to which now he
becomes a journalism as well as author that made them successful entrepreneurial. If such values
are not properly maintained then it will not impact the overall outcome.
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P6 Entrepreneur motivation and mind set are reflects at workplace
Entrepreneurs characteristics, traits and skills are the essential components for the success
of an organization. They believe in creative ideas and imagination power in the modification of
an existing product makes the sound image in front of market customers. Entrepreneurs are self
motivated and dedicated towards the deadline of work. They are more sophisticated and think
out of box and develop products in order to attract mass customers. They also have an ability to
see future before things are happened. They are mostly inspired by those things which are never
be seen before it discovered. Competency level of an entrepreneur are high towards the
predetermined set goal.
Flexibility is the core nature for successful entrepreneurs because today's market are more
competitive and challenging so that every entrepreneur cannot easy to adopt environmental
changes (Glaeser, Kerr, and Kerr, 2015). Passion and motivation are reflects at workplace in a
way of delivering the product and services which is sum of their dedication and competencies
towards their work. Every organization frames their moral and ethical values and follows by all
the members of an organization for smooth functioning of business operations. Motivation are
also reflects at the time of expansion of their business in order to develop existing product line
and services. It shows the owner's capability for higher risk.
Entrepreneurs are self motivated and they can effectively manage their staff members in
terms of organization productivity. Entrepreneur also create and offer attractive scheme to
employees that helps in to retain the employees for a longer time period these scheme provides
direct and indirect benefits to employees. The main role of entrepreneurs is providing motivation
to their subordinates. Motivation are furnished their employee performance (Talk, 2016). It
helps to increasing work efficiency and performance level. So leaders are provided motivation in
their group members. Where motivation is monitory or non monitory.
Monitory motivations like pay some extra incentives and some other compensations
(Chatterji, Glaeser, and Kerr,2014). These are more helpful to improving performance skills in
employees. Positive characteristics and traits provides self development opportunity as well as
growth of an organization while negative characteristics and traits makes impact and generate
inflexibility to adopt certain environmental changes and that leads the failure factor of an
organization towards the fulfilment of customers expectations and needs. Encouragement and
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self motivation are the key element for the success and growth of an organization and helps in to
maintain relationship with their competitors. Motivation and dedication of an entrepreneur
towards the accomplishment of organizational activity is influence the workforce for better
outcome.
The motivation to the employees can improve the productivity of the organization. If the
organization have maintained the basic facilities to their employees like salary on time and
refreshment, this can motivate them to work with their complete involvement. Basically the
involvement of the entrepreneur in the working of employees is so important(Decker and et.al.,
2015). The personality of entrepreneur should encourage the employees to work effectively. If
the entrepreneur helps their employees to resolve their personal and professional problems helps
the organization to have efficient outcome from those employees. Entrepreneur's leadership
quality will make a positive impact on the employees as the competitiveness of the organization
will be increased so the employees will be motivated. The mind set of employees will be
completely changes if the entrepreneur will treat the each employee in the same way(Carland Jr
and et.al., 2015).
TASK 4
P7 Examining the background and experience that hinders and fosters the entrepreneurship
Background basically related to their occupation origin, Education background, socio and
geographic background and nature of enterprise. Majority of individual entrepreneurs are come
from the mercantile background, when an entrepreneur shift in favour of newer occupation that
time entrepreneur previous occupation experience affects the new enterprise. Their educational
background also makes an impact on the current enterprise.
If entrepreneurs are switches from the same kind of occupation that time their experience
helps in to take future course of action (Zhang, Duysters, and Cloodt, 2014). Social and
geographic condition are different to entrepreneur, it consists of the norms, believes and culture
these factors also affects the business organization. By having an improved focus on
entrepreneurial aspects the issues can be overcome. Change in policies as per trade unions is also
significant so that goals and objectives can be attained. It is significant for business persons to
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ensure that diversified combination of methods is also essential which allows improving the
circumstances.
Well established business houses and professionally qualified entrepreneurs are mostly
preferred by the modern sector (engineering, metal, chemical and electricals). The socio
economic background exerts significant influence on the level of entrepreneurial motivation,
access to resources and risk bearing capacity etc. which in turns to influence significantly the
growth of entrepreneurs. Every organization spends some amount of money in research and
development it will be effective when they have great experience.
Negative experience discourages the owner to innovate some product and services
because they are not ensured about the success of research program. Flexibility level of an
entrepreneur directly depends on the experience and their background, because acceptance define
the degree of flexibility level (Robinson, 2017). Effective decision making capability captures
the opportunities from the market place and have ability to turn it in to profitability while lower
decision making ability degrades the motivation level of owner to take advantage from
opportunities.
In each organisation the entrepreneur is responsible for the every turn over. The social
background has to be adaptable by the market and that must be decided by the entrepreneur so he
has to be aware of such factors of the society that can make impact on the organisation. The
entrepreneur should be qualified to identify the changes in market like if technology is upgraded
then he must know how to use it for the betterment of the organisation(Carland and Carland,
2015). If there is any change made by the government regarding their rules and legislation then
an entrepreneur has to maintain the economic condition. The experiences are come with the time
so entrepreneur has to be adaptable in each situation because then it will make an entrepreneur
more flexibility and ultimately the entrepreneurship will be effective.
Good experience helps in to overcome the fear while taking the long term future decision,
and they are greatly ensured about the positive outcome. Experience and background also helps
in effective allocation of fund and resources in order to get effective utilization of resources.
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CONCLUSION
From the stated report, it can be concluded that small and start-up business makes major
contribution in country economy and provide strong position in global market. That type of
business also offers the employment opportunities to those people who are unemployed but have
a talent and ability to do something valuable. Different types of business ventures have different
attributes and characteristics, business enterprise are profit oriented while social enterprises are
welfare oriented. Social enterprise serve goods and services to those people which one is ignored
by the public and private sector company. Skills traits and characteristics influence and motivates
the entrepreneurs to take risk and manages the staff members in order to get effective outcome.
Past experience gives brief idea about the planning and beginning of new start up ventures. All
these skills are essential for the formation, survival and growth of a new business.
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REFERENCES
Journals
Bae, T.J. and et.al., 2014. The relationship between entrepreneurship education and
entrepreneurial intentions: A meta‐analytic review. Entrepreneurship Theory and
Practice. 38(2). pp. 217-254.
Ács, Z.J. and et.al., 2014. National systems of entrepreneurship: Measurement issues and
policy implications. Research Policy. 43(3). pp. 476-494.
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.
Decker, R. and et.al., 2014. The role of entrepreneurship in US job creation and economic
dynamism. The Journal of Economic Perspectives. 28(3). pp. 3-24.
Carland Jr, J.W. and et.al., 2015. Self-actualization: The zenith of entrepreneurship. Journal of
Small Business Strategy. 6(1). pp. 53-66.
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Glaeser, E.L. and et.al., 2015. Entrepreneurship and urban growth: An empirical assessment
with historical mines. Review of Economics and Statistics. 97(2). pp. 498-520.
Kerr, W.R. and et.al., 2014. Entrepreneurship as experimentation. The Journal of Economic
Perspectives. 28(3). pp. 25-48.
Chatterji, A. and et.al., 2014. Clusters of entrepreneurship and innovation. Innovation
Policy and the Economy. 14(1). pp. 129-166.
Zhang, Y. and et.al., 2014. The role of entrepreneurship education as a predictor of university
students’ entrepreneurial intention.International entrepreneurship and management
journal.10(3). pp. 623-641.
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Books
Schaper, M.T. and et.al., 2014. Entrepreneurship and small business.
Kirzner, I.M., 2015. Competition and entrepreneurship. University of Chicago press.
Drucker, p. , 2014. Innovation and entrepreneurship. Routledge.
Kuratko, D.F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Storey, D.J. ed., 2016. Entrepreneurship and new firm. Routledge.
Schaper, M. ed., 2016. Making ecopreneurs: developing sustainable entrepreneurship. CRC
Press.
Brown, R.A., 2016. Capital and entrepreneurship in South-east Asia. Springer.
Burrows, R. ed., 2015. Deciphering the Enterprise Culture (Routledge Revivals):
Entrepreneurship, Petty Capitalism and the Restructuring of Britain. Routledge.
Online
Ashe-Edmunds, S., March 2017. Effective Advertising tool. [Online]. Available through:
<http://smallbusiness.chron.com/effective-advertising-tools-65671.html>.[Accessed on
27th March,2017].
Robinson, J., 2017. The 7 Traits of Successful Entrepreneurs. [Online]. Available through:
<https://www.entrepreneur.com/article/230350>.[Accessed on 27th March,2017]
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