Factors Affecting Small Business Success

This assignment explores the performance of small businesses, considering various aspects such as owner-manager characteristics, entrepreneurial motivations, and business model practices. It reviews existing literature on these topics, providing insights into what contributes to small business success. The review aims to identify the most relevant factors affecting small business performance, making it a valuable resource for entrepreneurs, policymakers, and researchers interested in small business development.

Entrepreneurship and Small
Business Management

Table of Contents
INTRIDUCTION.............................................................................................................................1
PART 1............................................................................................................................................1
P1 Types of entrepreneurial ventures and their relationship with typologies.............................1
P2 Similarities and Difference between entrepreneurial ventures..............................................3
P3 Assessing and interpreting the impact of micro and small businesses in economy..............5
P4 Contribution of small businesses and start-ups in growth of social economy.......................5
PART 2............................................................................................................................................7
P5 Characteristics, traits and skills of successful entrepreneurs.................................................7
P6 Assessment of aspects of entrepreneurial personality in reflecting entrepreneurial
motivation and mind-set .............................................................................................................8
P7 Factors that foster or hinder entrepreneurship.......................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRIDUCTION
Entrepreneur is an individual who run business with the purpose of attaining larger
profitability. In this they also has capability to take risk for converting into profit. In this context,
they set new and innovative things to operate business for attaining sustain in market for longer
period of time. In addition of this, it is important for them to make an effective research to
analyse the market trends and demand (Blackburn, Hart and Wainwright, 2013). It is important
for person to create innovative ways to make their process effective which may leads in attaining
set goals and objectives. With the help of this, they easily attaining better success at market
place. Current report is based on entrepreneurship and small business management. Various
entrepreneurial ventures is also mentioned in this report. Along with this, it is important for
entrepreneur to set innovative and creative ideas within their process to attain high profitability
level.
PART 1
P1 Types of entrepreneurial ventures and their relationship with typologies
Entrepreneurial Venture: It is refer to regular business but actually it is not. Along with this, it is
that type of business which is run by the person with new and innovative ways to attain
opportunities to run their business in effective manner. This will contribute in developing
economic development. Basically, it is fast in developing wealth with risk. It directly contribute
in producing quality products and services.
Entrepreneur:
Person who run their business with limited resources which the aim of attaining
profitability level. They are the single person who take risk at the time of manufacturing
products.
Types of entrepreneurs:
 Serial entrepreneurs: These are those entrepreneurs who run their business by taking
challenges. Under this they set various new and innovative ideas to set their business in
effective manner.
 Social entrepreneurs: These type of entrepreneur who set their business just for solving
the issues and problems of the society (Bridge and O'Neill, 2012). The main aim of this
entrepreneurs is to increase social welfare which contribute in developing the economic
condition.
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 Female entrepreneurs: These type of entrepreneurs are known female as they run their
business with creativity and also control entire work as per their own responsibilities.
Along with this, women entrepreneur is easily handle their staff members effectively as
compare to female entrepreneurs.
Concept of entrepreneurship:
This can be defined as an effective process through which person prepare, design and
launch new business at small level by taking high risk (Carsrud and Brännback, 2011). Along
with this, they set their business with the purpose of attaining success in market place by
introducing their new and quality products and services.
Key Ventures of entrepreneurs:
 Small business entrepreneurs: In today's time various types of entrepreneurial ventures
are operate their business in UK. In which they approx 6 million small business are run in
UK market. It includes travel agents, consultants, cafe and many more. Along with this,
people are operate their business at own risk in order to make it in higher profitability
level.
 Scalable entrepreneurship: These type of ventures are created with new and strong ideas
to change the whole business. In this, they make as well arrange financial funds form
various investors to execute their ideas in appropriate manner.
 Social entrepreneurship: Under this, these type of ventures are operate their business for
improving the social condition. As they provide better services to provide various
benefits to society. Along with this, they produce their products for workers without any
harm.
Relation of ventures with entrepreneur typology:
As entrepreneurial ventures are highly relate with its typologies which contribute in
overall development of the economy of nation. Like lifestyle ventures are connect with social
entrepreneurship. All these are run their business with the purpose of attaining higher growth at
market place.
Types of typology:
 Lifestyle Ventures: Under this, business give immediate profits to the business. As
entrepreneurs work alone (Chittithaworn and et. al., 2011).
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 Survival ventures: These type of business start for generating money for their family. As
they are small business with less resources. It includes Grocery stores, barbers and many
more.
 Managed growth Venture: These type of business is run by talented and smart business
men as they effectively know that how to generate money for their business (Chrisman
and et. al., 2012). As they invest their money those place where they make high profits.
P2 Similarities and Difference between entrepreneurial ventures
In today's time number of entrepreneurial ventures are operate their business in the
economy. In this they take risk and run business in effective manner. In addition of this,
similarities and difference between in all the entrepreneurial ventures. All these cane be
understand by following points:
Similarities Lifestyle Ventures Social entrepreneurs
These type of ventures are start with
small scale.
The main aim of this ventures is not
generate money and profits.
These type of ventures are also
start at small level for operate
their business for society
development.
This type of ventures are work
for society benefits not for
attaining higher profits.
Difference Lifestyle ventures Serial entrepreneurs
This type of business operate their
business with limited funds
Along with this they run their
business with their passion not for
making any kind of strategies.
In the they run their business for
improving their lifestyle not for earn
huge profits.
As these type of business
operate their activities by
getting funds from investors.
In this they wants to improve
their business for attaining
higher growth.
This type of ventures make
their own ad effective
strategies to manage entire
activities.
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Serial entrepreneurs having
their particular location from
there they serve their services
to larger number of customers.
One of the main aim of this
type of business is to generate
profits.
SIMILARITIES Female Entrepreneurs Male Entrepreneurs
Women arr more creative and
focused entrepreneurs as they easily
maintain their office activities
(Dennis, W, 2011).
Female entrepreneurs set new and
innovative ways to perform their
work for attaining better success at
market place.
Male entrepreneurs are only
focus on their business as they
set their targets to attain better
results.
Male entrepreneurs run their
business with passion and
dedication to make their
business more successful in
market.
DIFFERENCES Female Entrepreneurs Male Entrepreneurs
Female entrepreneurs spend lots of
time in decision making process as
some time it creates negative impact
on business activities.
Female entrepreneurs focus on
developing quality products and
services which contribute in
development of society (Zott, Amit
and Massa, 2011).
Female entrepreneurs are hesitate at
the time of taking financial risk.
Male entrepreneurs are easily
take any kind of decision.
As male entrepreneurs highly
focus on reducing the
production cost in order to
develop better performance of
the company.
Male entrepreneurs easily
handle financial decision in
market which may helps in
developing the business
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Along with this, they easily build
better relation with heir customers
and customers as well.
condition.
One of the main difference is
that male entrepreneurs task
oriented people.
P3 Assessing and interpreting the impact of micro and small businesses in economy
There are various type of business which carry out their business in a society which also
impact on economic condition. All these are as follows:
 Micro business: This type of business operate by one and single person. In this the
workers no is 0 to 10. In this context, there are micro business which run for attaining
success in market. In addition of this, approx 5.3 million of micro business are operate
their activities in UK. In this the main of this business is to generate larger profitability
(Micro and small-business ventures, 2017).
 Small business: This type of business is operate with the aim of generating profits. In this
the employees number is 0-500. Along with this, all the small business are tries to
generate larger profit in UK market. As small business are create various job
opportunities for local people which may leads in developing the economic growth
(Wheelen and Hunger, 2011).
 Medium size business: These type of firms are not small and larger. Along with this, the
workers range is 250 to 500. As they operate their business for improving their growth.
Impact of economy on SME'S:
 Local impact: SME'S is impact on local business as they provide as well create various
job opportunities to local people which positively impact on enhancing the living
standard of the society.
 Regional impact: Under this, the SME'S is positively impact by delivering quality
products and services to customers as per their choice.
 National impact: In this, SME'S impact on nation is positively as it creates various job
opportunities which helps in developing the economic growth in positive manner.
P4 Contribution of small businesses and start-ups in growth of social economy
BREXIT: The term is a combination of two words i.e. British and exist, this is used to
reflect the withdraw of United Kingdom from European Union. This happened in 29th of March,
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2017. People of UK voted in favour of British Exist but chairman of Britain was not happy with
the decision therefore, when result came, Prime Minister of United Kingdom resign from his
post.
Difference between small-business and Start-ups- The difference between small business and
start-ups are :-
Small-business Start – ups
 Small business are established in order to
earn livelihood.
 This type of companies used to provide
traditional products to its customers.
 Small SME's are considered as less
scaleable than start-ups.
 These firms are owned by private owners
and has less than 250 employees in
organisation.
 This type of business generally raise by
turning a new idea into business concept.
 It covers a large market share as well as
generate innovative products for attaining
minds of customers.
 As comparison, a scalable business run
on large sector.
 These firms can have less or more than
250 employees depends on type of
business.
Impact of small-business on social economy of UK are:- Economic and Social Development – Small businesses contribute a lot in improving
economical condition of a country. Therefore, these enterprises are also known as an
economic powerhouse (Drucker, 2014). At present in UK there are 5 million companies
based on SME are running. Therefore, these firms are beneficial in reducing
unemployment by giving near about 15 million jobs to people of this country.
 Improvement on social security – Social security is a type of factor which helps in
increasing income stability of economy. These firms are generating income in a gradual
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manner by giving small amount of money to people who are come in category of
retirement, disability or death.
 Effect on revenue and taxes: Under this, taxes and revenue of UK is strong as they define
various job which may leads in generating the income and which directly impact on
overall economy condition. If person income is well then they have to responsible for pay
taxes through which country will easily make developing country (Fassin, Van Rossem
and Buelens, 2011). As there is direct relation among taxes and revenue which may
contribute in development of the economy.
 Effect on poverty and other factors: This type of factors are direct affect the economy as
the poverty is high in country then it highly impact on growth level. As small business
helps in reducing the poverty within the economy by creating various job and
employment to local people.
PART 2
P5 Characteristics, traits and skills of successful entrepreneurs
It is not a easy task to make a successful entrepreneurs if an individuals wants to get
success so that they have to enhance their skills and characteristics, with the help of this they
easily operate their business inappropriate manner and at the same time also develop their
business effectively. It is also important that entrepreneurs also have abilities to take risk and
convert into profits in order to attain better success in market place. In this context, there are
some skills and characteristic of entrepreneur are as follows:
Skills/ characteristics Entrepreneurs Manager
Strategic vision If an individual wants to attain
better success within their
business so that hey have to set
good ideas. Along with this,
they have to make their vision
and strategy to conduct
business activities for attaining
positive results (George and
Manager needs to keep as
well as strategic vision which
may leads in improving the
performance level of the
company. As they easily
provide better guidance to
workers to attain desirable
results.
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Bock, 2011).
Communication It is important for
entrepreneurs to having better
communication skills which
helps in converting ideas into
actions which may helps in
improving their performance.
Communication skills should
be present in manager as they
easily provide guidance to
workers to resolve their issues
which contribute in building
better trust with their workers.
Delegation Entrepreneurs who tries to
become more successful as
they divide their work in their
team in order to effectively
execute entire work.
Manager also keep delegated
towards the work and task as
they provide guidance to them
to done their task effectively.
Critical thinking As entrepreneurs have to think
deeply as they easily perform
all the task of the company
with the purpose of attaining
better success. Thus, they take
as well as set ideas and actions
accordingly.
The manager of the any
company also having
knowledge and think in depth
in order to effectively
understand all the plans and
policies of the company and
market as well.
In addition of this, there are some traits which helps person to become a successful
entrepreneur. All are as follows:
 Entrepreneurs should be define their goals and objectives to execute their task
accordingly.
 Along with this, they take risks to make as well as convert into profits. This will aid in
attaining better success at market place (Gorgievski, Ascalon and Stephan, 2011).
 It is also important for entrepreneurs to having high confidence so that they easily handle
all the situation effectively.
 They should have ability to set new and innovative things which may help them in
attaining success.
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P6 Assessment of aspects of entrepreneurial personality in reflecting entrepreneurial motivation
and mind-set
Entrepreneur has different personalities as compare to other businessman. The main
difference between both are entrepreneur has take higher risk with their innovative ideas and
business man also take risk but that is calculated in nature resulted they decrease uncertainty of
losses. So that, entrepreneur has their own needs and wants according they are develop strategies
in order to achieve their goals and aim in limited period of time. Each one individual has their
own personalise traits accordingly they are work and build positive brand image in consumers
mind. For identifying these traits mostly using Big five model which are explain as follows:
 Openness to experience – It is a most important personality traits of entrepreneur by
which each one person wants to share their own ideas with others so that through
communication of idea has help entrepreneur (Goss, 2015). Through this activities,
individual are able to increase long run sustainability of their new thought related to
achieve goals.
 Conscientiousness – It can be define as feeling or thinking of individual related to
particular things. It shows that entrepreneur are capable to completing their work and
conscious about their gaining objectives in limited period of time appropriately. It help to
achieve aim appropriately.
 Extraversion – They are share their thinking, thought, feeling et, with others in order to
get satisfaction thus help to develop self motivation. Thus possess all qualities in leaders.
 Agreeableness – Entrepreneur are cooperative as well as trustworthy in their nature so
that they are working accordingly and achieve their target on time significantly.
 Emotional stability – This shows, individual are focussed as well as calm about their
work and goals so that entrepreneur are capable to compete their work in limited period
of time appropriately.
P7 Factors that foster or hinder entrepreneurship
Various entrepreneurs having their personality as it directly affect their decision making
and taking risk as well. Along with this background and their experience also affect their
working style. As it is stated that every successful entrepreneurs having good personality, family
background and experience as well. It also motivate them which is important for them to attain
set targets in appropriate time frame. Along with this, entrepreneurs are their specific objectives
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and targets to attain success within their business (Jones and Rowley, 2011). This will
accomplishing by family support which may leads becoming a successful. For attaining the
same, it is vital for entrepreneurs to motivate and dedicate towards their aims and objectives.
Apart from this, education level also play bog role in impact individual behaviour as they
easily manage their activities and tries to make it more flexible. By this, people easily perform
their business activities appropriator. As hey easily attain desirable results. If person is educated
and qualifies than they make their process more effective which may leads in attaining set goals
and objectives in appropriate time frame. With the help of this, entrepreneurs easily take decision
by implementing innovative ways. As entrepreneurship may leads in improving the chances of
enhancing positive performance level at market place.
Therefore, it stated that a person background and its experience play big role in
establishing the target effectively. If background and experience of the person is good then it
positively affect on their future activities as this will motivate them to enhance their business
activities. With the help of this people easily take right decision towards the company activities.
This will leads in becoming a successful entrepreneurs (Karlan and Valdivia, 2011). Thus,
background and experience of entrepreneurs hinder or foster an individual.
CONCLUSION
From the above mentioned report, it has been summarised that entrepreneurship is play
vital role in developing as well as improving the society condition. As it define various job
opportunities to local people through which they enhance their living standard. This will directly
contribute in developing overall economic growth. Along with this, a one person who run their
business is called as entrepreneurs. As they operate their business from small scale with the
purpose of attaining profitability level. In this various types of entrepreneurial ventures are also
exist in society as they decide the type of business what they want to do. This report is also
concluded entrepreneurial venture and relationship with various typologies ate also mentioned
which may leads in providing benefits to enhance the growth level of business. In addition of
this, small business is also consider as an important aspect as it contribute a lot in economy
development.
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REFERENCES
Books and Journals
Blackburn, R. A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development. 20(1). pp.8-27.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small
business. Palgrave Macmillan.
Carsrud, A. and Brännback, M., 2011. Entrepreneurial motivations: what do we still need to
know?. Journal of Small Business Management. 49(1). pp.9-26.
Chittithaworn, C. and et. al., 2011. Factors affecting business success of small & medium
enterprises (SMEs) in Thailand. Asian Social Science. 7(5). p.180.
Chrisman, J. J. and et. al., 2012. Family involvement, family influence, and family‐centered non‐
economic goals in small firms. Entrepreneurship theory and practice. 36(2). pp.267-
293.
Dennis Jr, W. J., 2011. Entrepreneurship, small business and public policy levers. Journal of
Small Business Management. 49(1). pp.92-106.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Fassin, Y., Van Rossem, A. and Buelens, M., 2011. Small-business owner-managers’ perceptions
of business ethics and CSR-related concepts. Journal of Business ethics. 98(3). pp.425-
453.
George, G. and Bock, A. J., 2011. The business model in practice and its implications for
entrepreneurship research. Entrepreneurship theory and practice. 35(1). pp.83-111.
Gorgievski, M. J., Ascalon, M. E. and Stephan, U., 2011. Small business owners' success criteria,
a values approach to personal differences. Journal of Small Business Management.
49(2), pp.207-232.
Goss, D., 2015. Small Business and Society (Routledge Revivals). Routledge.
Jones, R. and Rowley, J., 2011. Entrepreneurial marketing in small businesses: A conceptual
exploration. International Small Business Journal. 29(1), pp.25-36.
Karlan, D. and Valdivia, M., 2011. Teaching entrepreneurship: Impact of business training on
microfinance clients and institutions. Review of Economics and statistics. 93(2). pp.510-
527.
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Wheelen, T. L. and Hunger, J. D., 2011. Concepts in strategic management and business policy.
Pearson Education India.
Zott, C., Amit, R. and Massa, L., 2011. The business model: recent developments and future
research. Journal of management. 37(4). pp.1019-1042.
Online
Micro and small-business ventures.2017.[Online]. Available
through:<https://www.smallbusinessbank.com/about/micro-vs-small-business/ >.
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