Small Business Success Factors

The assignment delves into the multifaceted aspects influencing the success of small businesses. It examines various theoretical frameworks, including those related to business ethics, corporate social responsibility (CSR), entrepreneurship, and organizational structure. Drawing upon academic literature, case studies, and statistical analyses, the assignment explores key factors such as market demand, financial management, leadership qualities, customer satisfaction, and adaptability to changing market conditions.

Entrepreneurship

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
P1 Various types of entrepreneurial ventures and their typology...............................................1
P2 Similarities and differences between different type of ventures............................................3
P3 Impact of micro and small business have on the economy....................................................5
P4 Importance of business start ups on the growth of social economy......................................6
PART 2............................................................................................................................................7
P5 Traits and characteristics of entrepreneurs............................................................................7
P6 Entrepreneurial personality reflect motivation and mindset..................................................8
P7 Background and past experience can foster or hinder the process of entrepreneurship........9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneurs are the individual who research, design, make and offer innovative
products to large number of customers. Earn large number of profits by satisfy needs of
customers is one of the main motive of them (Blackburn, Hart and Wainwright, 2013). Basically
these are of four type called small, medium, large and scalable from which small enterprises play
a big and effective role in the economic development of a country. They create employment
opportunities for local people and contribute in increase their standard of living. Further, these
firms provide number of benefits to a country that's why government of every country provide
them various support facilities so they can operate in an effective manner. These entrepreneurs
focus to satisfy the needs of people and offer them a variety of products to satisfy the same. In
case of any big change or movement these are the organisations who help in maintain the
consistency of an economy and create wealth for the nation. Main type of entrepreneurial
ventures with their typologies is detailed under this report. Main similarities and differences
among different organisation and contribution of micro business in the economic development of
a country is also mentioned in this report. Along with this main factor which give shape to the
personality of an entrepreneurs is also mentioned in this report.
PART 1
P1 Various types of entrepreneurial ventures and their typology
Process of design, launch and run a business entity with the aim of earning profit is
known as entrepreneurship. In this, firm offer a unique service or product to large number of
customers. Different type of entrepreneurial ventures which exist in today's business
environment can be understood by the following: Small business entrepreneurship: At present most of the businesses in UK are start ups
or small businesses. Grocery stores, hairdressers, travel agents, carpenters, electricians,
plumbers, consultants and etc. all are the example of this (Bridge and O'Neill, 2012).
These are that individual who run the business on their own. They hire their family
members or local people for execute business operations. Due to their innovative idea
these type of businesses attract venture capitalist to invest their funds. Scalable start-up entrepreneurship: These are the entrepreneurs who start their business
with an effective vision to change the world. They attract financial investors and venture
capitalist for getting investment. These type of businesses hire bright and best employees
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for execute their commercial activities. Various efforts are done by these firms to find
out a scalable business model and after found that they do expansion of their business
activities. Because of their high and attractive returns this type of business attract large
number of capitalist. Large company entrepreneurship: Firm which come under this category make and offer
innovative products to its customers for satisfying their needs (Burns, 2010). External
factors such as change in taste of customer, technology, competitors and many more
largely affect the activities of these companies. Company execute its operation on big
level and generate number of revenues every year. Operation of these firms help the
country to earn foreign exchange which help in maintain the economic level. These
entrepreneurs start with a growth and innovative vision which attract number of
investors.
 Social entrepreneurs: These enterprises are the one who undertake production process
and make unique product to satisfy needs of customers and to solve the social problems.
They can be non profit organisations. Main motive behind running this type of business is
to solve the social problems rather than to make profits. For this they make featured
products and services for make the world a better place.
Type of entrepreneurial typologies Skeptical entrepreneur: These type of entrepreneur do research for find out the answer
of success of other firms. They seem the whole process on entrepreneurship very
positive. Users Copycat entrepreneur: As the name suggest, these are the entrepreneurs who first sees
the success of other companies and try to to copy the same. Research entrepreneur: Firms who do a lot of research and love to learn new things are
known as research enterprises. Different type of research are done by these organisation
to find out effective strategies to grow the business. Determined entrepreneur: These enterprises are just opposite from the copy cat
entrepreneur (Carland, Carland and Stewart, 2015). They think that growth of a business
is possible without coping the idea of others. Every possible thing is done by these
enterprises to achieve success of the company.
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 Accomplished entrepreneur: Companies who go through with every stage of
entrepreneurship, build and achieve success is known as accomplished entrepreneur
(Carraher and Paridon, 2015). Main focus of these is to make a legacy and for this these
companies try to research out various ways to connect with customers.
P2 Similarities and differences between different type of ventures
Various type of entrepreneurial ventures are there which executed by various individuals
or group of people to earn profit. Main similarities and differences between different type of
ventures is stated below:
Type on entrepreneur Similarities Differences
Small v/s large
business organisation
 Main similarity between
these type of enterprises
is that both the firm
undertake commercial
activity with the aim of
earning profit.
 Research is done by both
the companies to identify
the features customers
want in the product.
 Both the companies start
with an innovative idea to
capture a larger market
share.
 Small business enterprises
execute their business
operation on a small or local
level while large business
entrepreneurs execute its
commercial activities on a big
or international level
(Differences between
enterprises, 2014).
 Small financial resources are
invested or required to
execute the activities of small
business enterprise. Huge
amount of funds and
resources are required to
execute operation in large
company.
 Role of small company
manager is very simple as he
has to control small amount
of operations. On the
opposite of it manager of
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large enterprise evaluate all
the complicated operations
which make his role more
complex.
 Small company has small
amount of talent because of
easy and simple operations. O
the other hand only skilled
employees can control the
activities of large business
enterprise.
Scalable v/s social
business enterprise
 One of the main
similarity between the
social and scalable
entrepreneur is that main
aim of both the
companies is to offer
innovative products to its
customers for satisfying
their needs and to solve
their problem.
 Need identification of
customers is done by both
the companies to offer
them unique products.
 Main motive of a social
enterprise is to make and
offer innovative products to
customers for fulfil their
requirements with or without
profit. But on the contrary of
this earn huge amount of
profit is one of the main
motive of scalable firms.
 Various efforts are done by
the scalable firms to capture a
larger market share in short
duration of time while social
firms do activities to solve
problems of individuals and
make world a better place.
All these are the main differences and similarities among various type of business
ventures. Further there are some other type of business ventures called public and private
(Chittithaworn and et. al., 2011). Public company is the one whose ownership remains in the
hands of government and companies which are operated by some private hands is knowns as
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private organisation. Both the firms undertake commercial activities to make products for its
customers. A research has shown that there is a difference in the effectiveness of operation done
by both the company. Operations of a private firm are more effective as compared with the
activities of public entrepreneur (Dennis, 2011). Main reason behind this is that public firms do
research to identify the products to better satisfy the needs of customers.
P3 Impact of micro and small business have on the economy
Business activities and operation of small business enterprise contribute a lot in the
economic development of a country. It can be measure by the contribution of this enterprises in
the social development of people. One of the main impact of these businesses on economy is that
firm make and offer innovative products to its customers to satisfy their needs. They provide
number of employment opportunities to local people of a country and provide them an
opportunity to show their skills and talent. All this increase standard of living of people. These
firms start their business with an unique or innovative idea which attract large number of
investors and capitalist and provide them an opportunity to earn high on their capital invested.
Further, commercial activities of these firms contribute in overall GDP of country and increase
wealth of the nation (The economic importance of small businesses. 2017). Due to having high
return on investment this business attract number of potential candidates to start a business on a
small scale. Operation of these entrepreneurs encourage trade at the various areas of a country
which contribute a lot in the economic development. Along with this, these organisation give an
opportunity to hand loom workers and artisans to explore their talent. Training also provide to
these workers to enhance their skills so they can face the future's competitive environment.
All activities of these firms affect the country's economy on various levels. At local level
this provide employment opportunities to local people so they can increase there standard of
living. On the national level idea of these business organisation attract investors to get high
return on their funds. And at international level firms conduct international fairs and present the
talent of artisans. This activity help the country to earn foreign exchange. Make and offer unique
products to large number of customers is one of the main biggest quality of small business firms.
Further operations of these businesses increase the competitiveness of the industry by
making and offering good quality products (Fassin, Van Rossem and Buelens, 2011). This
provide a chance to people to choose from variety of products. Recruitment of skilled candidates
and provided training to them increase creativity in this sector. Government of country also
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provide various support to these firms. Which encourage these companies to operate on an
international level. All this provide an opportunity to the country to earn foreign exchange which
increase wealth of country and help in achieve consistency in the economy. Employment to large
number of local people is one of the main contribution of these businesses. This can be
understood by the following:
P4 Importance of business start ups on the growth of social economy
Economy of every country largely depend on the activities of small business enterprises.
Expansion of these activities increase and develop the economy. At present there are large
number of small business enterprises who are working in UK. Operation of these firms develop
basic facilities which increase the convenience level of local level. This help the nation in
maintain its economy (Gorgievski, Ascalon and Stephan, 2011). Companies who operate on an
international level get affected by large number of elements exist in the business environment. In
that time these are the firms who help the country in maintain consistency in its economic level.
All this increase wealth of the country and living standard of local citizens.
Along with this these companies provide various support and consultancy facilities to
large companies so that they can execute their activities smoothly. Research is conducted by
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these companies about the tastes of customers which help the company in better satisfy the needs
of its customers. As these firms operate on a lower level so this decrease the cost of all business
operations and company achieve efficiency in its activities. All this help the customers in getting
quality products at low price (Islam and et. al., 2011). Due to operate on a local level these firms
focus to satisfy the needs of rural people. Increase employment opportunities help in increase the
standard of living of people and eliminate poverty from the nation. Micro businesses are known
as the backbone of development of a country's economy because this provide number of social
advantage to a nation.
PART 2
P5 Traits and characteristics of entrepreneurs
Characteristic or trait is that special feature of an organisation or an individual which
make him different from others. This special trait help him in getting various short and long term
advantages. Main traits of two successful entrepreneur called Bill gates and Mark Zuckerberg
which help them in achieve success are stated below in the following points: Full of determination: To become a successful entrepreneur it is very necessary that
individual must set very clear goals and objective along the way he want to achieve. To
be determined is one of the most important characteristic for an entrepreneur to be
successful (Lee-Ross and Lashley, 2010). Lack of determination make the individual
under pressure and create unnecessary obstacles in the path of success. Both
entrepreneurs Bill gates and Mark Zuckerberg have this characteristic which help them in
achieve desired business objectives. Understanding about management of money: It is one of the effective skill which must
be there in an entrepreneur to achieve success. An individual must have knowledge and
where to spent money to achieve desired business objectives. Overspending can ruin the
business and under spending will not contribute in the success. So it is very necessary for
an individual to have a clear understanding of money how to spend money. Passion about the business: Passion bring determination require to be successful
entrepreneur. It is very essential for an individual to enjoy what he is doing. Lack of
passion give rise to stress, create unnecessary hurdles and increase the responsibility. Strategy: Sequence of steps which is used by an individual to achieve the desired results
is known as strategy (Luiz, 2011). For starting and growing business it is very necessary
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to use an effective strategy. Bill gates and Mark Zuckerberg both use an impressive
strategy for implement their business tasks. Flexibility: Introduce necessary changes and modification in the methods used for
business is known as flexibility. One of the main advantage of this characteristic is that it
help the firm in doing necessary changes in its products and satisfy the needs of
customers. This help the company in capture a larger market share. This capability of
both Bill gates and Mark Zuckerberg leads them to their success. Risk taking ability: No entrepreneur can achieve success without taking risk. This is the
characteristic which help in deciding the success of company. More risk an individual
will take there are more chances that he will get or achieve the success.
 Vision: This is that place of an enterprise which an entrepreneur want to achieve in
coming years (Neck and Greene, 2011). It is the end result of a business so it is very
necessary for an individual to set an effective vision before start the business venture.
One of the main advantage of this is that it provide right direction to all the activities of a
business to achieve set targets.
Bill gates and Mark Zuckerberg both have these capabilities which help them to achieve
the success.
As per the traditional theory of entrepreneurship effective and successful entrepreneurs
are born an not learned. According to this, there are special skills which required to be in an
individual to be successful and these are in born (Schaper and et. al., 2014). They can not be
learned. But as per the modern theory of entrepreneurship special skills which are necessary to
be in an individual can be learn.
P6 Entrepreneurial personality reflect motivation and mindset
Mindset and motivation are the two essential factors which reflect the personality of an
entrepreneur. Positive mindset and motivation reflect an effective a positive personality of an
individual while negative mindset indicate the negative personality of an individual. Mainly both
the factors mindset and motivation are interlinked with each other. Positive mindset motivate the
entrepreneur to accept challenges and take risk during the whole process of entrepreneurship. It
is very necessary for an entrepreneur to have positive mildest so he can start a business entity
and can achieve growth (Schaper, 2016). Both the successful entrepreneurs Bill gates and Mark
Zuckerberg have this quality. Mindset and motivation of a person largely depend on the type of
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his personality. This affect the way of his thinking, his a passion and dedication about the
business and many more things. Main factors which contribute and give shape to personality of
an entrepreneurs can be understood by the following points: Upbringing: Family conditions of an individual contribute a in give shape to personality.
Family is the one who taught a individual about the ethical values and acceptable
behaviour in the society (Shane, 2012). All this information support the individual to take
effective decisions at workplace. Personal traits: Knowledge and skills of an individual all come traits. An individual have
some in born qualities while some are learnt by the outside world. All this also affect the
decision of an individual taken at business and his motivation or mindset also. Financial conditions: Huge financial resources increase the motivation to take effective
decision about the expansion of business activities (Stokes, Wilson and Wilson, 2010).
All this affect the overall success of an enterprise.
 Education: This provide basic information to an individual and give shape to his attitude
and behaviour.
All these are the main factors which affect the motivation and mindset of an individual and
indirectly affect the quality of decisions taken by him. For achieve success it is very necessary
for an individual to have a positive mindset so he cans motivate others also to perform better.
P7 Background and past experience can foster or hinder the process of entrepreneurship
Number of activities are included in the whole process of an enterprise which get affected
by various elements. Past experience and person's background is on of the important factor
which directly affect the process of entrepreneurship. Positive past experience automatically
encourage the operations of an entrepreneur (Storey and Greene, 2010). This make the process of
entrepreneurship more faster. On the other side of coin, negative experience create unnecessary
obstacles in the process of entrepreneurship. Positive experience not only enhance the
effectiveness of organisation's activities but also increase the confidence of business owner. But
it is not necessary that past experience of an individual will be positive it can be negative also. In
this case an entrepreneur should not loose hope he should do continuous efforts to achieve
growth and success of the company. He should learn form his mistakes he done in the past so he
can avoid the same in the future. How a person take his past failure is totally depend on traits of
his personality (Blackburn, Hart and Wainwright, 2013). If an individual is open minded or have
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positive spirit than he will take all the failures in a positive way and will not loose the
confidence for execute future business activities. Opposite of this, if a person is narrow minded
and does not have a positive spirit that failures can loose his self confidence in the future
business activities.
Second factor which affect the process of entrepreneurship is type of education of an
individual. Higher level of education increase confidence of an individual and motivate him to
take more risk in this business process which leads to success of the company. Low education
decrease the confidence of an individual and lower his ability to take risk in business. So it is
very necessary that an individual should have high education level so that he can easily handle
the complex situations and can take better decision for business. One of the main element which
largely affect the operations of a business is economic conditions prevail in that country and
national culture (Bridge and O'Neill, 2012). Thinking style of an individual get affected by the
economic culture of a country in which he live. Overall there different number of factors which
contribute in give shape to a personality of an individual. On the basis of that personality
individual take actions about the future decision of a company. At one side positive experience
foster the activity of business and on the opposite of this negative experience hinder the process
of business.
CONCLUSION
From the above information it can be concluded that process of entrepreneurship get
affected by number of elements and factors. In today's business environment there are different
number of entrepreneurs who work for achieve their set objective. All those entrepreneurs share
some similarities and differences. Small business enterprise play a big role in maintain the
economic level of a country and contribute a lot in the overall GDP. Development of these
enterprises is very necessary as they contribute a lot in the social development of a country. To
become successful its is very necessary for an entrepreneur to have some special skills and traits
so she can expand the business effectively. Further whole success of enterprise is also depend on
entrepreneurial personality because this affect the mindset and motivation of an individual.
Moreover the process of entrepreneurship get affected by the background and past experience of
an entrepreneur. At one hand positive experience faster the process of entrepreneurship than on
the opposite of this negative experience and background create unnecessary obstacles in the
process of entrepreneurship.
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REFERENCES
Books and Journal
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.
Burns, P., 2010. Entrepreneurship and Small Business: Start-up. Growth and Maturity. Palgrave
Macmillan.
Carland, J. C., Carland, J. W. and Stewart, W. H., 2015. Seeing what's not there: The enigma of
entrepreneurship. Journal of small business strategy. 7(1). pp.1-20.
Carraher, S. M. and Paridon, T. J., 2015. Entrepreneurship journal rankings across the discipline.
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