Characteristics of Successful Entrepreneurs

This report provides a summary of the characteristics of successful entrepreneurs, including Richard Branson, Peter Jones, and Bill Gates. It highlights their backgrounds, experiences, and how they turned risks into opportunities. The report also emphasizes the importance of small businesses and startups in economic growth and how entrepreneurs can lead their businesses to success.

SMALL BUSINESSES AND
ENTREPRENEURSHIP

INTRODUCTION
This report contains the types of different entrepreneurship like small, large, social, and
scalable ventures and the challenges they faced to start their ventures. This report mentions the
different typology known as micro, macro and serial entrepreneurship. This report contains the
statistical data of the contribution of small scale industries towards the growth of social, national
and regional economy. This report elaborates how entrepreneur motivates to their team to make
the venture successful. In the last part of the report it also contains the background and history of
the successful entrepreneur. This report highlights the skills and characteristics of entrepreneur
which helps them to boost their motivation with the help of OCEAN model.
MAIN BODY
Types of entrepreneurship and its typology.
There are generally three types of entrepreneurial ventures which are defined as below:
 Scalable venture: When small businesses are designed for the purpose of achieving
high growth and are focused on rapid profit increases by provided better goods and
services. They develop strategies which helps them to promote their products and
attract a large number of investors providing working capital to achieve profit and
growth objectives. For a small or start up company to move on to the high growth
venture must follow the business model that is designed to be repeatable and scalable.
These ventures generate cash flow that is sufficient for them to grow.
 Social ventures: it is structured in many forms such as sole proprietors, profit and not
for profit firms (Audretsch, Heger and Veith 2015). Their focus is not on generating
profits but rather use their profit to acquire balance in the environment and impove by
minimizing poverty and inequality.
 Large ventures: The large ventures grow by providing the new innovations in the
existing products and services. These organizations are engaged in following various
types of structures. They earn a huge amount of profit.
 Small Business entrepreneurship: These types of business includes grocery stores,
hairdressers, consultants, travel agents, electricians etc. by hiring local employees or
family, they can't provide scale to attract venture capital, therefore they fund their
businesses via friends/family or small business loan.
Serial entrepreneur Intrapreneurship Owner-manager

Individual who starts a
business, takes financial risk
in order to earn profit.
Individual who works as
manager and work for
promoting products and
services of organisation.
Manager works against salary.
Own capital is used by person
to run the business.
Individual is highly depended
upon the entrepreneur and use
funds provided by
entrepreneur.
Individual has to follow
instruction of their higher
authorities
It is in depended in nature It is highly dependent in
nature.
Highly dependent and focus
on achieving the common
business goal.
Typology of entrepreneurship:
There are three types of typology which are given as below:
 Micro entrepreneurship: In this type of entrepreneurship it operates with fewer than 10
employees and started with less amount of capital and they are generally specialize in
providing goods or services for their local areas.
 Macro entrepreneurship: It operates with more than 500 employees and the organization
get influenced by the impact of external factors. This factors include economic,
demographic, legal, social, political etc.
 Serial entrepreneurship: In this entrepreneur thinks about starting a new business with its
innovative idea. The entrepreneur will work individually to set up its business and
function efficiently and effectively. They are enthusiastic and in search of new
opportunities to expand their business on a large scale. With the help of innovative ideas
they can start new business and sell their previous one with good money. These leaders
always have a project in mind and have a great leadership qualities. They have desire to
create and have passion for business creation.
Explain entrepreneurial ventures with similarities and differences.
Similarities between entrepreneurial ventures:

Motivation
All the entrepreneurs have one similarity which is very common that is to motivate
themselves as well as to team. Self-motivation the key to be a successful entrepreneur as well as
it helps you to move forward. When all the team of an organisation is motivated than they can
achieve the desired goals easily and also motivates each other to run the organisation smoothly.
All the entrepreneurs have one common objective that is 'motivation'.
Competition
All the type of entrepreneurial ventures faces the competition and strives themselves to
win. It is implied objective of every type of business to go long distance and defeat the enemy
(Scarborough, 2016). It is not easy to sustain, they face the struggle and sometimes feel to give
up everything and get back for the secure job. They all fight for their inner enemy which is
stopping them to move forward.
Reward
Every entrepreneur reward to their employees for their achievement by doing good. For
example, if one has successfully run in a marathon than they must need the good food, relaxing
spa and the rest for the hard work put in the Marathon. At the same time employees always need
the reward for their good work they have put in. It is the similarity in all the entrepreneurs to give
the reward for their well performance. Entrepreneurs can give the reward in various ways by
following the path of philanthropist, bonus etc. so they can achieve the goals in future as well.
Passionate towards their aim
All the entrepreneurs are passionate towards their goal and wants to achieve, it is the fun
for them while peruse the passion. They all enjoy while running to attain the goal.
Difference between entrepreneurial venture:
Small Business Large business
 Risk  They do not take high
risk
 Risk is generally high
 Revenue  They have a limitation
on revenue as it vary
 They are bigger
companies have more

the business will not be
remain small.
projects so their
revenue is also high.
 Processes  They encourage their
employees to innovate
the process and takes
the risk.
 They are highly
process driven,
encourages to their
employees to follow
the process
 Structure  They do not have
hierarchy and not have
the strict corporate
 Larger companies are
more hierarchical in
nature.
Similarities
Both small and large organisations have to bear risk. Companies have to make strategies
so that political and economic issues can be managed by organisation easily. Both these ventures
work for long term sustainability. Large and small both ventures like to implement innovative
ideas so that it can grow well.
Impact of micro and small business on economy
Micro and small business contributes a lot in the growth of the economy such as creation
of job opportunity, increase the standard of society, entrepreneurship. The following relevant
data shows the impact of micro and small industries in the growth of economy and society. Small
business created 1.1 million jobs with fewer than 20 employees and 57.9% of all small business
jobs. In 2015 small business is having the annual payroll of $2.55 trillion was higher than the
large companies and hence concludes that SMEs have plays vital role in the economy of the
country.
Growth in Economy
As per the statics it is identified that UK is the country where 5.7 million small and
medium size organisations work. These companies hire up to 250 workers in their workplace.
Annual turnover of such kinds of firms are around 2.0 trillion in 2018 which was around 52% of
private organisations. In the year 2018 SMEs have provided 16.3 million job opportunities to
population (UK Small Business Statistics, 2018). Small business not remain small all the time

they also become the large like Nike, Wal-mart etc. they have started their business in small
scale and operates it in the local areas and it creates a major impact in the growth of national and
international market.
Future Mapping
Small business always creates the opportunities for the people by their entrepreneurial
spirit and always promote the innovation in the market and replace the old product from new
one.
Giving back
Small business earns from the society and give it back to the society only by paying the
taxes. This taxes helps in the up-liftment of the society like hospitals, schools, infrastructure
development etc.
Micro and small business are those business who are always creative and innovative
approach and having the employees less than 500. The impact of small business over the
economy are defined below:
Presently there are 30.2 million small business in US and out of these 99%are considered as
small business and start ups. Large business are accounted for the 30,000 jobs. At the same time
small business are creating the opportunities in the field of technical, software, professional etc.
Small business are always in search of finding new and qualified candidates which helps in
increasing employment rate. The respondents said that there will be hike of 33% of employment
in next year at the time the competition is high in the market.
How SMEs help in growth of social economy
Social economy can be defined as economics branch that pays more attention on
interrelationship between two major elements economics and social behaviour of individual. It
emphases on elements such as ethics, norms shape buying trends in public. Economists brings
that small businesses and start-ups are crucial for the growth of the economy, large businesses
come and stay in the stock market but small businesses give a huge amount of contribution for
the growth of the economy. Small start-ups is helpful for the welfare of the society by creating
opportunities in jobs.
Small and medium size organisations play significant role in growth of social economy. As
these companies hire fresher’s and many young people those who don’t get employment
opportunities in big size organisation. This aids in providing them income sources. That is

beneficial in improving their living standards to great extent. Furthermore, small firms
continuously work for social development. They protect domestic market and help in improving
economic condition of nation to some extent.
Small businesses and start-ups importance and how they influence the growth of the
economy:
National Economy: Small business generates the competition in the sales and market. It
will benefit the national economy as they creating more profit in supplying goods and services
with the help of technologies and benefits the national economy by growing and making
economy strong. The entrepreneur who are running small start up thinks about the community
and take the initiative to keep the market growing and expanding(Storey, 2016)..
Social Economy: The start up or small businesses like travel agency, electricians etc.
hired local employees, friends or family which helps the social economy by providing jobs to the
localities. These type of businesses doesn't have capital ventures so they borrow money from
friends, families etc.
Regional economy: The small, micro, and other start-ups also have an impact on the
regional economy. They provide the people over there the job- opportunities These effects lead
to improvement in regional economy as the productivity will be higher and less employment
displacement effects (Ribeiro-Soriano 2017). It helps in improving the quality of life of the
region where they are located. These ventures also provided the job opportunities to local people
living over there.
Small businesses and the start-ups are the backbone of the economy as they provide job
opportunities and helps the economy growing in every aspect. They produce large amount of
profit which helps the government in various ways. They create innovative ideas and have
passion to make new businesses. SMEs helps in improving communities by developing and
transforming. They manage the economic and political condition within the country and helps in
growth from region to another.
Differentiate between charateristics and skills of entrepreneur and managers
Entrepreneurial mind set can be defined as skills, attitude and behaviour of person.
Entrepreneur always take initiatives and adapt innovative ideas to gain success. Positive mental
attitude, creative mind set, intrinsic motivation, ability to learn new things are type of mind set in

entrepreneur. Characteristics of successful entrepreneurs that difference them from other
business managers are:
Characteristic
Risk taker
Entrepreneurs have the unique characteristic which make them differ from managers as
they will take the risk and make the venture success and knows how to overcome from that, they
will never look will never waste their time on failure. Like for example Richard Branson to reach
the stage where he is, has taken lots of risk. Decision taken by the entrepreneur to take the risk is
the sensible decision taken by them as they know they may go back on the surface but for them it
is equally challenging to become succeed. As they are the owners so they always have to bear
financial risk associated with the business. In contrast of entrepreneur’s managers do not have to
bear any risk of failure they are liable only for the work and manage the day to day routine of
office. This is very important in order to gain new opportunities and gaining success in market. If
individual don’t take risk and person will not be able to establish its business successfully.
Confidence
An Entrepreneur never ask question for the success or weather they will succeed or they
are worthy of success. For example, Peter Jones and Richard Branson were confident enough to
launch the new idea that also provided them with success. They have a confidence on themselves
and confident on the knowledge they possess as it will make the business succeed. As they are
confident enough to take steps everyday towards the achievement of their objectives. While
managers don't have to carry the confidence for the making the business succeed. If entrepreneur
is not confident then it would increase chances of failure.
Positive attitude
It is the mind set of entrepreneur that individual always behave positive. This helps in
learning new opportunities and finding new ways to improve the working procedure.
Intrinsic motivation
Peter Jones and Richard Branson are the owners of the company so they have to carry the
responsibility and have to work hard for the expansion of business. while contrast of
entrepreneur’s managers only have to focus on the smooth functioning of business, and they both
have very different approaches towards the work. They both are motivated that help them in
emphases more on growth rather than failure.

Skills and abilities of entrepreneur and managers
Leadership Quality
Entrepreneurs are having strong leadership qualities as they value their goals and do the
work hard to achieve the goal. Richard Branson and Peter Jones never prevent themselves by
their defeat, so they will try until they did not achieve. Leaders earns the respect from their
employees by positive qualities. While managers can become the leaders only for their
subordinates, they do not have the quality to win the world.
Code of ethics
Strong entrepreneurs are the one who comes office on time and leave when all the
employees leave (Scarborough 2016). Many times they come on their days off to make sure that
it will meet the expectations. At the same time managers don't have the responsibility to be in the
office even on the off.
Opportunities
Entrepreneurs have ability to find out opportunities inside or outside the organization like
Branson and Jones whereas managers only identify the growth in the organization.
Decision making
Richard Branson and Peter Jones takes Major decisions of an organisation is being taken
by the entrepreneurs as well as decision of project related to financial and what they have to
accept and reject while managers only take the decision related to employees work.
Explain personality of entrepreneur relating to its motovation
Different entrepreneurs are distinguished with other entrepreneur based on their
personality. There are many ways to explain personality. The five factor model or big five or
OCEAN model describe the personality traits of Richard Branson and Peter Jones which became
successful entrepreneurs. The FFM organizes personality around five general personality traits
(Volery and Mazzarol 2015).. The Richard Branson is successful entrepreneur. His family has
left England in the year 1793 for India. He was not that much good in his academic performance.
But he was having artistic element, he always find innovative idea to perform any task. This
ability of him has supported him in establishing his business as well. He was well aware with
cultural difference from his childhood. This element has been used in this carer as well. He never
felt dishearten when dealing with other culture people. This characters has supported him in

expanding the business across the world and building a large team. Richard has experience of
working, he has faced many time failures but his motivational ability and cultural impact have
helped him to be positive and face each challenge. By this way he has turned all the difficulties
in opportunities.
Peter David John is another example of successful entrepreneur. He has started his
business at very small scale. Later on he has opened online retail stores. Many times he had
faced many failures but family support has always encouraged him to be motivated and do their
best. Family, education was the major situational factors in his life due to which Peter John have
raised his name as entrepreneur.
FFM (Five factor model) consists of the following personality traits are given as below:
1. Openness to Experience: It describes the personality which has creative thinking and
have high intellectual. As Richard and Peter were both curious about the new ventures
that's why they set up Virgin Records and computer support service respectively (Storey,
2016). They have a great visualization power which helps them to become more creative
and imaginative. They always trust their intuition and went with their guts to become a
successful entrepreneur.
2. Conscientiousness: It describes the ability to achieve goals with the full motivation and
determination. Branson and Jones both were conscientious person which are enthusiastic
about their work. Their way of handling work is impressive as they never give up on
things even after getting failed.
3. Extraversion: This personality trait explains how naturally outgoing are the
entrepreneur. It depends on social interaction and comfortable with social environments.
Richard and Peter both were fearless with the social encounter and loved to interact with
their teams and people outside their range. Both were open and clear minded person
which helps them to build relationship.
4. Agreeableness: This trait describes about the individual's who are high on this trait are
caring, trusting, forgiving and cooperative. Branson and Jones trust their team and their
behaviour towards the employees were more cooperative and caring. Their values and
ethics towards organization helped them to build relationship with their employees and
customers and also with the help of this trait they gained the loyalty of their employees.

5. Neuroticism: Entrepreneurs may face negative emotions like anxiety, depression or any
other feeling of being depressed. They both had the ups and downs in their career but
they always stay positive and learnt from their mistakes and moved ahead.
Background and experience of successful entrepreneur.
Richard Branson and Peter Jones both became a successful entrepreneur and had an
amazing experience which made its entrepreneurship full of struggles and difficulties.
Richard Branson suffering from various diseases like dyslexia and had a poor academic
performance. Richard left the school at the age of 16 and decided to become an entrepreneur
Richard got failed in many start up business but at last Branson started with magazine called
Student and a year later net worth estimated $50,000 (Fayolle and Gailly 2015). After earning
enough money, Branson started the Virgin Records, Virgin Airlines and Virgin Galactic which
became the successful business. Although, there were some difficulties in starting this business
such as in Virgin Airlines, the first flight attempt was failed due to some engine failure and many
other like Virgin Cola, Virgin Cars etc. Due to his illness, in his childhood he has faced many
difficulties. Sometimes he had to be depended on other but he has learnt that this would not
work. He found ways to perform all his task independently. This learning and situation has
improved his self-ability to manage all work. He got failure many times in his initial career but
he has experienced many things and found the element that needs to be taken care to run a
successful business. This experience and learning have made him successful in his career.
Peter Jones set up a business at the age of 16 and made personal computer and in mid
twenties opened a cocktail bar and lost 200,000 pounds after deciding to sell it to IBM. The
computer got failed and lost all money, car and house and moved back with the parents. In 1988,
setting up the next venture called Phones International Group and put the investments in
television field and opened programmes like Dragons' Den, American Inventor, Tycoon and
other television work which lead the journey of entrepreneurship to another level and became a
millionaire at the age of 23. In 2013, Jones became an owner and chief executive of Jessops in
the United Kingdom. He has started working in early, hence he has long term experience. He has
utilised his experience in tremendous manner that has made him successful. He learnt how to
turn risk into opportunities. He belongs from educated family; his family was always supportive.
These elements have encouraged him to be positive in every situation and find innovative idea to
grow well. This has made him a successful entrepreneur (Scarborough, 2016).

Bill gates is another successful entrepreneur. His father and grant father was working in
reputed organisation. He belongs from educated family. They were having sound economic
condition. His parents were very supportive and have encouraged bill gates in this life. Since his
childhood he was having interest in software and technology. His interest and support from
family have made his a successful business owner. He learnt new things from his experience and
have got to know how to deal with complex situations. Such background has helped him in
gaining success in market.
CONCLUSION
From the above study it has been summarised that small business and start up plays an
important role in the growth of the economy. As well as we also analysed the characteristics of
an entrepreneur which makes them differentiate from the managers. As entrepreneurs knows
how they have to lead their business and makes it a successful venture. This report shows the
similarity and difference in the types of venture. This report also shows the name of successful
entrepreneurs and how they create the glory all over the world.