Entrepreneurship: Traits, Factors, and Business Types

This assignment delves into the characteristics of successful entrepreneurship. It examines essential traits like motivation and psychological factors influencing entrepreneurial decisions. Various types of entrepreneurial businesses are analyzed, highlighting their unique characteristics, skills required, and relationships. The study emphasizes how small-scale businesses drive economic development and provides a comprehensive understanding of the multifaceted nature of entrepreneurship.

OPPORTUNITIES TOWARDS SMALL BUSINESS POST
BREXIT FOR UK

Table of contents
Introduction....................................................................................................................................3
Task 1 Explore and illustrate the range of venture types that might be considered
entrepreneurial...............................................................................................................................3
Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship. [P1].............................................................................................3
Small scaled entrepreneurship..................................................................................................3
Scalable entrepreneurship.........................................................................................................4
Large scaled entrepreneurship..................................................................................................4
Social entrepreneurship.............................................................................................................4
Explore the similarities and differences between entrepreneurial ventures. [P2]......................4
Task 2 Assess the impact of small businesses on the economy...................................................5
Assess and interpret relevant data and statistics in your mini-research, to illustrate how micro
and small businesses impact on the economy. [P3]..................................................................5
Explain how important small businesses and business start –ups will contribute to the growth
of the social economy. [P4]........................................................................................................6
Task 3 Determine and assess the key aspects of an entrepreneurial mind-set............................7
Determine the characteristics, traits and skills of successful entrepreneurs, which differentiate
them from other business managers. [P5].................................................................................7
Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mindset. [P6]..............................................................................................................................8
Task 4 Examine the different environments that foster or hinder entrepreneurship......................9
Examine , using relevant examples obtained through your mini-research, how background
and experience can hinder or foster entrepreneurship. [p7]......................................................9
Conclusion...................................................................................................................................10
References:.................................................................................................................................11

Introduction
Britain’s exit from the European Union in the year 2016 has resulted in deterioration in the value
of pound sterling. In fact, pound sterling has been the worst performing currency in the year
2016, which has not recovered ever since. The topic of focus in this assignment is to identify the
adverse effects of Britain’s exit from the European Union in the economy of Great Britain. Due
to the great deterioration of the value of pound sterling, people will now have less control over
buying and spending. Therefore, limiting the expansion and control of entrepreneurs and startup
businesses in the country.
Task 1 Explore and illustrate the range of venture types that might be
considered entrepreneurial
Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship. [P1]
People who use their innovation, creation and designs in launching a business with an aim to
earn revenue is called an entrepreneur and the process is known as entrepreneurship. These
businesses are initially small scaled but with time these businesses expand and grow into a large
scaled business1. The various types of entrepreneurial ventures which are also related to the
typologies of entrepreneurship are as follows:
Small scaled entrepreneurship
These businesses are small scaled and their business enterprises are normally grocery stores,
consultants and hair dressers. There are millions of small scaled businesses in the UK and the
small scaled business enterprises employ the maximum number of people among the
nongovernmental workers in the country. These businesses run on a small amount of capital and
1 Brooks, Alison Wood, Laura Huang, Sarah Wood Kearney, and Fiona E. Murray. "Investors
prefer entrepreneurial ventures pitched by attractive men." Proceedings of the National Academy
of Sciences 111, no. 12 (2014): 4427-4431.

the employees who work in these enterprises are normally family members or relatives of the
owner or local people of the places.
Scalable entrepreneurship
In contrast to small scaled businesses, a scalable entrepreneurship is a business enterprise which
is solely based on innovation. The ideas, visions and the products designed by these
entrepreneurs can change the world. For example, companies like Google and Microsoft are
examples of scalable entrepreneurships. These type of business organizations attract numerous
investors and always recruit the best and the most promising talents from all around the world to
maintain and continue their quality of business operations all throughout the world2.
Large scaled entrepreneurship
These business enterprises are the ones which grow by innovating products based on their core
products. These companies have to take measures and monitor customers’ tastes and preferences
as well the rival companies in the market to sustain in the business world.
Social entrepreneurship
These business enterprises can be profit making or non-profit making or even hybrid enterprises.
These organizations do not conduct business to earn revenue or gain market share, but they focus
on developing products and services in order to solve the needs and issues of the society.
Explore the similarities and differences between entrepreneurial ventures. [P2]
The aforementioned type of business organizations highlights and explains the various types of
entrepreneurial ventures in the market. The similarities and the differences are discussed as
follows:
Similarities
● The small scaled, scalable and the large scaled business organizations are in the market to
conduct business and earn revenue from the market. The primary focus of these
companies is to penetrate the market and reach out to all the customers with an aim to
make profits.
2 Burrows, Roger, ed. Deciphering the Enterprise Culture (Routledge Revivals):
Entrepreneurship, Petty Capitalism and the Restructuring of Britain. Routledge, 2015.

● The scalable and the large scaled business organizations attract a lot of investors from
around the world.
● The scalable and the large scaled business organizations have their presence in the
foreign countries as well and are considered to be multinational companies.
● The amount of revenue earned by the scalable and the large scaled business organizations
is very high and these organizations often use the profits gained to invest in developing
new products in order to meet the requirements of the customers.
● All of these entrepreneurial ventures create jobs for the society.
Differences3
● Small scaled businesses are limited within a certain geographic location. Whereas,
Scalable and large scaled business enterprises can be multinational companies.
● The amount of revenue earned by the scalable and the large scaled business enterprises
are more compared to the small scaled businesses.
● The large scaled businesses and the scalable business enterprises have the ability to
penetrate the market by using various aspects marketing mix to reach out to the
maximum number of customers.
● In contrast to the scalable, large scaled and the small scaled entrepreneurial businesses,
the Social entrepreneurship businesses do not always focus on profit making.
● In comparison to the scalable, large scaled and the small scaled entrepreneurial
businesses, the Social entrepreneurship businesses are focused in developing the society
and its standard.
3 Solomon, George, and C. H. Matthews. "The curricular confusion between entrepreneurship
education and small business management: A qualitative analysis." Annals of entrepreneurship
education and pedagogy (2014): 91-115.

Task 2 Assess the impact of small businesses on the economy
Assess and interpret relevant data and statistics in your mini-research, to illustrate how
micro and small businesses impact on the economy. [P3]
Small and micro business owner comes from variety of background, with the purpose of
pursuing self-employment. Oftently it is noticed that this type of business are independently
owned and operated with limited source of people. This business might be small but they have
huge impact on economy. Primarily there are three ways that a small scale business could help in
economic growth. They provide individual opportunity to achieve financial independence; they
create innovation and create employment opportunities. These businesses are critical in job
creation, community support and entrepreneurship4. This type of small business may not create
huge revenue like large scale business but they are the integral pieces of our social economy.
Some of the basic impact of small business on economy is:
● Job creation: It is very important to notice that small business plays an important role in
UK economy by providing both goods and service and employment. Numerous literature
researches depicts that a large percentage of job creation in UK is contributed by small
business. Unlike large business small business are more labor intensive than capital.
● High worker productivity: A small business unit has relatively less complex
organizational structure and the owner or the entrepreneur is directly involved in the
management. As a result he can directly indulge himself in observing the productivity of
his employee. Thus could see significantly more productivity from the employee.
● Employment practices: These small firms in UK use to recruit people with less skill or
qualification. This employment practice helps the company in two ways. Firstly it helps the
society to reduce unemployment and secondly it helps in increasing the revenue and
productivity of the employees by providing them on job training and experience.
4 Melinda, Tina, J. E. Sutanto, and Sonata Christian. "The Development of Effectuation-Based
Entrepreneurship learning Model to Increase the Ability of University Students in Running a
Business." Proceedings, the 14th Annual SEAAIR Conference–07-10 October 2014-ISSN: 2408-
3275–SEAAIR and Aquinas University of Legazpi, 2014.

● Unemployment reduction: Small business has played and has the potential to play a key
role in UK to reduce unemployment. Many unemployed persons are hired in this type of
business, and thus by increasing the revenue and reducing the unemployment.
Explain how important small businesses and business start –ups will contribute to the
growth of the social economy. [P4]
Small scaled businesses and start up businesses are normally based on innovation and often
comes up with innovative ideas which are useful in changing market demands. These small
scaled and start up business have major role in contributing for the growth of the social
economy. This type of business contributes to local economies by bringing growth and
innovation to the community in which the business is established. They also stimulate economic
growth by providing employment to the individuals who may be hired by larger companies. This
business trends to attract new people with innovative ideas and who can implement new
solutions for existing ideas. Sometimes larger business are also benefited by small business units
under the same locality, as many of the large scale business are completely dependent upon
small business. In a local small business when customers utilize the products or goods and
services they are essentially giving the money back to their local society. In this manner the
small local business will generate high revenues respect to that they have to pay high taxes
including local taxes. This money is then used for the local services like school, hospitals and
police departments. Small business unit doesn't always stay small. The business which have
proper strategy and have innovative ideas grow into larger organization. Usually after growing
into large organisation these start up business group stay at the place where they are established
in the local society. Having a large head quarter in the community can further help the society by
providing more employment and economic strength. Thus Small business or startup business
could contribute a large part for the growth of the social economy by various means. The only
thing that helps in this growth is innovative ideas and strategic plans to execute these ideas5.
5 Denscombe, Martyn. The good research guide: for small-scale social research projects.
McGraw-Hill Education (UK), 2014.

Task 3 Determine and assess the key aspects of an entrepreneurial mind-set
Determine the characteristics, traits and skills of successful entrepreneurs, which
differentiate them from other business managers. [P5]
For being an successful entrepreneur the person should be very innovative and should be able to
manage his resources needed for developing his business. After researches it could be found that
the successful entrepreneur possess certain characteristics, skills and traits which are discussed
below:
● Traits: To be a successful entrepreneur the person should be very passionate about the
business that he needs to set up. This the only thing that keep them moving on during the
hard times in their business. Along with passionate the person should be able to vision the
company's future goals and objectives. And plan and execute them to achieve those goals.
self believe is another point that differentiate a successful entrepreneur and a business
manager. A person can never succeed in life if he doesn't have self believe in
accomplishing that job or task6.
● Characteristics: Motivation is one of the most important characteristics that an
successful entrepreneur should possess. They are very enthusiastic, optimistic and future
oriented. These successful entrepreneurs are not afraid to risk their resources in pursuit of
profit. Versatility is another characteristic that an successful entrepreneur possess. They
are very versatile with their staffs and colleagues to provide better supports and service.
the most importantly he should possess great business skills. The entrepreneur should
know about his business and should possess great business skills to outsource his
products and services7.
● Skills: As an entrepreneur the person should know how to manage money. He should
know where to input capital for future growth and where not to. He should be able to use
up his resources and create productivity in his business. He should know how to increase
productivity in his products and services. A successful entrepreneur is able to manage his
6 Storey, David J. Understanding the small business sector. Routledge, 2016.
7 Brunello, Giorgio, and Martin Schlotter. "Non-cognitive skills and personality traits: Labour
market relevance and their development in education & training systems." (2011).

employees by providing good work environment and by providing employee
empowerment. He should possess overall skills to hire and trained his employee. In this
process the company benefits by applying limited resources and maximizing the
production with employee and customer satisfaction.
So these are the key skills, traits and characteristics that a successful entrepreneur should possess
for the growth of their organization and helping the society to grow economically8.
Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mindset. [P6]
An entrepreneur's personality is his trait that helps them to motivate and set his mind for the
business. There are certain personality trait that an entrepreneur should persist in order to
develop his motivation and mindset.
● Passionate: Passionate about the business that the entrepreneur is planning to conduct is
the primary factor that reflects his motivation and mindset in his business. An
entrepreneur passion will drive them to carry out his business despite of all ups and
downs.
● Flexibility: For an entrepreneur it is very important to adapt in change and ready for any
challenge is very important in any business. The plans to achieve the goals may change
due to unexpected circumstances. An entrepreneur must be ready for every unexpected
situation and must be flexible to redirect direct plan to achieve the goals.
● Vision: One of the most important personal quality that an entrepreneur should possess in
order to motivate and set their mindset. Having a clear vision about their goals and
objectives is a key point for every entrepreneur before setting a business. Without having
vision they might not accelerate their potential grow their business.
8 Fairlie, Robert W., and William Holleran. "Entrepreneurship training, risk aversion and other
personality traits: Evidence from a random experiment." Journal of Economic Psychology33, no.
2 (2012): 366-378.

Task 4 Examine the different environments that foster or hinder
entrepreneurship
Examine , using relevant examples obtained through your mini-research, how background
and experience can hinder or foster entrepreneurship. [p7]
The background and experience of an entrepreneur affects their vision, their ability to make
decision and manage his resources. It completely affect how he works and plan to grow his
business. There are certain factors that affects entrepreneurship development such as:
● Economic factor: This is the most important factor that affects entrepreneurial growth .
lack of adequate facilities like transportation, power supply and communication can
affect in increasing the production with low cost. With less economic strength the risk
level increases for the entrepreneur. Non availability of capital also affects in utilizing
equipped machinery for maximizing the production. With less economic strength there
comes non availability of labor and skills9.
● Social factors: The society plays an important role in affecting entrepreneurship of an
entrepreneur. In some societies education research and training is given less importance
as a result of which there is very little mobility of labor in this society which affects the
entrepreneur in their business.
● Cultural factors: In some cases it is noticed that religious, culture and social factors also
affects in developing and entrepreneurial career. In some countries it could be noticed
that high profit is unethical which results in inhibits the growth of an entrepreneurship
● Motivating factor: Motivation is trait that an individual should possess to be an
successful entrepreneur. A individuals motivation can be developed by certain factors
like education background, occupational background, family background and other
factors. A entrepreneur develop these trait of self motivation and motivating his
9 Liñán, Francisco, Juan Carlos Rodríguez-Cohard, and José M. Rueda-Cantuche. "Factors
affecting entrepreneurial intention levels: a role for education." International entrepreneurship
and management Journal 7, no. 2 (2011): 195-218.

employee form this above factors. If an entrepreneur lack this train in himself its very
difficult for him to manage his resources and directing them to the right way.
● Psychological factor: This factor also plays an important role in developing
entrepreneurship in an entrepreneur. The way an entrepreneur deals in tough situation or
the way he closes a business deal have high impact in the growth of his business. There
are some other psychological factors like security, need for affiliation and conformity
restricts the growth of entrepreneurship10.
Conclusion
On completing all the researches and studies it has been identified how a small scaled business
helps in developing the economy of a country. It has also be identified about different types of
entrepreneurship and its respective characteristics, skills and traits as an entrepreneur should
possess in order to be successful and grow his business has also been discussed. It has also been
discussed about how the background experience can affect the entrepreneurship skills of an
entrepreneur. Furthermore, the assignment also discusses about the different types of
entrepreneurial businesses and the relationship between its typologies. Finally, the similarities
and the differences of the various types of entrepreneurial businesses have been discussed in
detail.
.
10 Hope, John B., and Patrick C. Mackin. Factors affecting entrepreneurship among veterans.
SAG Corporation, 2011.

References:
Brooks, Alison Wood, Laura Huang, Sarah Wood Kearney, and Fiona E. Murray. "Investors
prefer entrepreneurial ventures pitched by attractive men." Proceedings of the National Academy
of Sciences 111, no. 12 (2014): 4427-4431.
Burrows, Roger, ed. Deciphering the Enterprise Culture (Routledge Revivals):
Entrepreneurship, Petty Capitalism and the Restructuring of Britain. Routledge, 2015.
Solomon, George, and C. H. Matthews. "The curricular confusion between entrepreneurship
education and small business management: A qualitative analysis." Annals of entrepreneurship
education and pedagogy (2014): 91-115.
Melinda, Tina, J. E. Sutanto, and Sonata Christian. "The Development of Effectuation-Based
Entrepreneurship learning Model to Increase the Ability of University Students in Running a
Business." Proceedings, the 14th Annual SEAAIR Conference–07-10 October 2014-ISSN: 2408-
3275–SEAAIR and Aquinas University of Legazpi, 2014.
denscombe, Martyn. The good research guide: for small-scale social research projects.
McGraw-Hill Education (UK), 2014.
Storey, David J. Understanding the small business sector. Routledge, 2016.
Brunello, Giorgio, and Martin Schlotter. "Non-cognitive skills and personality traits: Labour
market relevance and their development in education & training systems." (2011).
Fairlie, Robert W., and William Holleran. "Entrepreneurship training, risk aversion and other
personality traits: Evidence from a random experiment." Journal of Economic Psychology33, no.
2 (2012): 366-378.
Liñán, Francisco, Juan Carlos Rodríguez-Cohard, and José M. Rueda-Cantuche. "Factors
affecting entrepreneurial intention levels: a role for education." International entrepreneurship
and management Journal 7, no. 2 (2011): 195-218.
Hope, John B., and Patrick C. Mackin. Factors affecting entrepreneurship among veterans. SAG
Corporation, 2011.