Entrepreneurship: Types, Impact on Economy, and Characteristics of Successful Entrepreneurs

This document explores different types of entrepreneurial ventures, their relation to the typology of entrepreneurship, and the similarities and differences between them. It also assesses the impact of micro and small businesses on the economy and explains the importance of small businesses and startups in the growth of the social economy. Additionally, it determines the characteristics, traits, and skills of successful entrepreneurs that differentiate them from other business managers. The document provides valuable insights into the field of entrepreneurship and its significance in economic development.

University
Entrepreneurship
By
Date
Name
Lecture’s Name

Entrepreneurship
Table of Contents
Task 1....................................................................................................................................................3
Examine different types of entrepreneurial ventures and explain how they relate to the typology of
entrepreneurship....................................................................................................................................3
Explore the similarities and differences between entrepreneurial ventures............................................4
Task 2....................................................................................................................................................4
Assess and interpret relevant data and statistics in your mini-research to illustrate how micro and
small businesses impact on the economy...............................................................................................4
Explain how important small businesses and business start-ups will contribute to the growth of the
social economy......................................................................................................................................6
Task 3....................................................................................................................................................8
Determine the characteristics, traits, and skills of successful entrepreneurs, which differentiate them
from other business managers...............................................................................................................8
Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and mind-set.
.............................................................................................................................................................11
Task 4..................................................................................................................................................13
Examine, using relevant examples obtained through your mini-research, how background and
experience can hinder or foster entrepreneurship................................................................................13
References...........................................................................................................................................15
Page 2 of 18

Entrepreneurship
Task 1
Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship
Entrepreneurship carries the different meaning for different people. The ones who are
planning to open up their new business must assert the meaning and concepts of
entrepreneurship. It is having more than concepts. Entrepreneurship holds much more
importance than just initiating a business. It involves skills and invention qualities along with
qualities of management. Entrepreneurship or business as we know emphasizes on facing and
solving the risk factors. Thus, this term also means creating new ways of solutions to
different problems (Light, 2009).
Enterprise is considered to be the business organization or unit where the entrepreneur will
exercise his business and management skills. Enterprise is an undertaking be it a project or
something else. It is mainly related to business oriented purposes. Entrepreneurial activities
refer to the set of knowledge that the entrepreneur exercises on the business to enhance the
brand name and profitability of the schemes (Stevenson and Jarillo, 2007).
Serial entrepreneurs are the ones who confidently sets up a business, and with the complete
succession of that business, they move on to some other venture or take up some new projects
and might even sell their earlier one. An intrapreneur is the ones who invents, generates and
explores new strategies for the product development and strategic marketing of that product
or services. The manager will surely to have been belonging from the own business house.
The owner manager is the one who owns a business, and himself manages all the procedures
(Nielsen and Sarasvathy, 2011).
Page 3 of 18

Entrepreneurship
The lifestyle businesses tend to maintain their business growth like turtles, that is it may see
significant growth else not. However, like other business, it keeps a constant pace of
venturing and rendering enough profit for the owner. This type of ventures are profitable but
does not influence rapid revenue growth and economy. The growth business, on the other
hand, focuses on the acute and targeted marketplaces. The find potential and robust growing
elements of the business activities and in the subsequent developing years. There are
technological developments and innovations that revolve around the dynamics of the
customers that create new market expansions. The growth is promising one and brings in
huge developmental growth in the market or niche and interacts with the customer needs to
keep on developing and meeting customer demands making them attain the ultimate customer
satisfaction (Schindehutte and Morris, 2009).
Explore the similarities and differences between entrepreneurial ventures
Entrepreneurial activities can take place in any context apart from the organizational sector.
The type of entrepreneurship that is to be discussed is the corporate entrepreneurship that
sums up then most profit and revenue of the country economy. An entrepreneurial venture is
one that locks in no less than one of Schumpeter's four classes of behaviour and conduct: that
is, the vital objectives of an entrepreneurial venture are benefit, profitability and development
and the business is described by innovative vital practices and strategies.
Task 2
Assess and interpret relevant data and statistics in your mini-research to illustrate how micro
and small businesses impact on the economy
Entrepreneurship and development of the economy are closely related to each other. This is
because both of them play the equal important role in each of the perspectives. The economic
growth of the country is hugely influenced by entrepreneurial activities. Small business has
Page 4 of 18

Entrepreneurship
the potential for developing the economic of the country because many small businesses
summed up as a whole industry will render the higher amount of revenue (Zhang et al. 2009).
The entrepreneurs are to hold some solid management qualities that will help them to foster
the growth developing strategies of the business development and generate more revenue for
the business. The qualities of the entrepreneurs that influence and impact the business
performance are as follows:
Creativity and innovation: The sense of creation helps the entrepreneurs to bring up new
things and ideas that are essential for the business development and meeting up the customer
needs. The innovative mind set up is a quality that allows the business person generate new
ideas from the existing available materials and resources.
Risk management: Risk is an essential element of enterprising based on which all the
business activities and strategic marketing planning are formulated. The entrepreneur has to e
a good risk taker and risk manager. Properly executed skills on the right time fetch the
business a great developmental site and opportunity for the business manager.
Optimism: Having the positive attitude towards the aim brings in the best of success. The
brand name of the business has to be set to such a level that it create its goodwill and foster
positivity in all the other sectors related to the business.
Visionary: Positive and practical visions or ideologies are the essential components of
managerial qualities that will empower the entrepreneur to think big and logical strategies for
the business. The target and goals should be firm enough to influence good work of the
entrepreneur.
Seeker of the opportunity: Seeking the best opportunity for the business development is an
essential thing that the manager and the owner of the business have to interpret with.
Page 5 of 18

Entrepreneurship
Cohesive relation with the environmental changes and other social affairs that impacts on the
business influences the entrepreneur to grab the best opportunity at the right moments.
Hard worker: Hard work always pay well and therefore, to understand the business structure,
formation, and required strategies take a lot of time and patient. Only a patient and the
hardworking individual can then only interpret with the requirement of the business.
Motivator: Apart from being a good opportunist and activities, he has to keep the ability to
influence and motivate his corporate employees who will work under him. The greatest
success of being good motivator is influencing someone to such extent that their future
performance shows the ultimate result. A manager does not necessarily have to be a
motivator, but a motivator is by no doubts a good manager (Grimaldi et al. 2011).
Independent: The right to think wise and positive and holding a higher authority is important
to supervise the independent management skills for the business. Apart from allowing
intervention of other staffs, the entrepreneur has to be independent with the aims and goals
for the concerned purpose and exercise their powers like so.
Decision maker: The most important factor that judges the ultimate quality of an entrepreneur
is decision making constraint. The most wanted quality of an entrepreneur is considered to be
a good decision maker who will be able to make instant and long-term decisions for any
situation of the business (Garud et al. 2007).
Thus, the qualities of an entrepreneur decide the performance of the business, and that clearly
depicts the overall economic growth and impact of the factors.
Page 6 of 18

Entrepreneurship
Explain how important small businesses and business start-ups will contribute to the growth
of the social economy
Towards the beginning of 2016, it was accepted that "Brexit" would effect UK's medium-
term financial prospects. In any case, over 8% believed Britain's economy would be profited
after "Brexit." As per several experts, private directors should be more profitable. A large
portion of the best relationship of the world began their experience as independent directors
with a couple of desires. They made due assistance of a steady economy, access to the capital
and ideal individuals. In cases, as showed by the graphs available concerned to this, it is the
small rate of firms who survived and encountered this sort of headway. The national money
related premium helped those new associations to vanquish the inconveniences. The
outcomes of poor money related and business heading can clarify the situations for exclusive
organizations. Money is the best way to deal with headway for self-sufficiency. It is to a great
degree indispensable for their thriving (Parker, 2005).
The business start-ups are on the way of expansion by beginning late. Notwithstanding, there
are several weights also. Free meander supervisors require a specific level of market
information. At present, different nations on the planet are encountering progress. This
procedure is conceivable because of the obligations made about nothing and medium
administrators. Self-governing associations can profit related issues and social headway. Free
ventures are thought to be the most vital range of the overseeing body together with
microfinance establishments. In the globalized period, exclusive organizations have a higher
shot of progression, as it will join neighborhood providers and wholesalers. It sponsors and
lifts new interest. The limitations should be confined. Dealing with a free entrepreneur is not
the same as dealing with the more prominent ones. Association of a self-ruling
entrepreneurial supervisors relies upon the open asset. Exclusive business supervisors are far
to go on the off chance that they are in the correct condition (Berglann et al. 2011).
Page 7 of 18

Entrepreneurship
Page 8 of 18

Entrepreneurship
Task 3
Determine the characteristics, traits, and skills of successful entrepreneurs, which
differentiate them from other business managers.
Characteristics, traits, and skills of successful entrepreneurs
There are various types of traits and skills of successful entrepreneurs differentiate them from
other business managers. In other words, entrepreneurs have some unique skills and abilities
which a general manager do not have(Anand and Kodali, 2008). Moreover, some essential
traits and skills of a successful entrepreneur are discussed below:
Motivation: Abraham Maslow was the inventor of Motivation theories which help
entrepreneurs to motivate their employees. In addition, with the help of motivational theory, a
successful entrepreneur can increase the performance of the employees. Besides that, in order
to become a successful entrepreneur, a person needs to motivate their followers, but a
business manager cannot be a proper motivator(Baines, Fill and Rosengren, 2010).
Creativity and Persuasiveness: in order to recognize and pursue potential opportunities, a
successful entrepreneur has the creativity and persuasiveness skills. In addition, the managers
do not have this kind of traits because they also need to follow the directions of the
management. The product development process requires the creativity traits for successful
marketing(Chopra and Meindl, 2016).
Versatility: the entrepreneurs sometimes depends on the staffs or colleges for providing
excellent support or service. Besides that, with the help of versatility traits, successful
entrepreneurs can draw the attention of every people of the organization which cannot be
possible for a normal business person(Davidson and Simonetto, 2005).
Excellent business skills
Page 9 of 18

Entrepreneurship
The entrepreneurs have more abilities and clear persecution about the business. According to
the recent report, a successful business always requires a qualified and skilled leader who will
lead the whole organization to meet desired aims and objectives. Besides that, an
entrepreneur has these types of business knowledge which a business manager do not has in
the professional field. On the other hand, an entrepreneur can expand the business by
implementing effective concepts and ideas for future profit which a manager cannot imagine.
Tolerance
This is a physiological aspect which needs to be controlled by every significant person of an
organization. In other words, a professional person should not aggressive behavior in the
workplace. Besides that, an entrepreneur has the high level of tolerance which makes him
completely different from a business manager. In addition, with the help of large consistency
power, an entrepreneur can successfully deal with every possible issue which might be
occurred in different operational purpose. On the other hand, a branch manager has a power
of authority to control the activity of other people of the branch. In that case, he is allowed to
show anger in the workplace if anything goes wrong(Farris, 2009).
Drive
This is a mode of technological mind express of an entrepreneurial process which helps an
entrepreneur to determine the way of progress and execution of work. In other words, the
leadership styles are one of the critical factors of the Drive segment, for example, systematic
leadership styles follower or entrepreneurs who follow the styles to maintain systematic
discipline in the workplace. In addition, a business manager is only following the instruction
of the higher authority to operate and manage various types of operational departments of the
organization(Furtwengler, 2010).
Page 10 of 18

Entrepreneurship
Vision
With the help of the vision concept, an entrepreneur can focus on the long term sustainability
programs. In other words, an entrepreneur always has a clear vision which includes ultimate
goals and plans of the organization. Moreover, an entrepreneur can lead the business towards
success through proper and accurate vision. On the opposite side, a manager cannot suggest
the vision to the high authority because the leaders already had assumed something better as
vision and give orders or directions of work to their employees including managers(King,
2009).
Flexibility and open-mindedness
Flexibility is one of the effective and significant parts of the aspect of an entrepreneur in
order to lead the business towards success. In other words, with the help of open-mindedness
behavior, an entrepreneur can achieve the trust and faith of the subordinates which makes the
entrepreneurial process more effective. Apart from this side, a business manager should not
be flexible during the working hours because if the manager behave carelessly than other will
do the same thing which might the cause of corporate chaos. Moreover, an entrepreneur can
only be successful through applying good behavior(Milligan, 2012).
Decisiveness
An entrepreneur should not has this types of behavior which a manager has in the
professional life. In order to make a proper decision, the decisiveness is playing an essential
role which manager applies in the process of inappropriate decision. On the other hand, an
entrepreneur can make an effective decision in favour of the business because he/she is
predetermined according to vision and mission (Ajagu, 2005).
Skills and traits of two different entrepreneurs
Page 11 of 18

Entrepreneurship
Steve Jobs: Mr. Steve Jobs is the CEO of Apple, and he has some unique ideas and business
concepts which help him to be more successful. Also, he has good communication skills and
good knowledge of technology. Besides that, on the stage of the entrepreneurial process, he
had to face various types of challenges such as financial crisis, time and human resources.
Since ten years of innovation, iPhone series had brought revolution in the mobile industry.
Besides that, MacBook, iPad, and other accessories always have high demand in the market
though the business skills and knowledge of the technology of Steve Jobs (Ajagu, 2005).
Bill Gates: one man is now ruling the Personal and Professional computer industry. In
addition, Bill Gates is the owner of Microsoft which provides the most modern computer
operating system like Windows. On the other hand, the entrepreneurship qualities of Bill
Gates includes smart skills and high perception of future. In other words, he is a focused
entrepreneur who knew tomorrow’s demand and executes operations according to the
demand of generation.
In above segment, two different types of entrepreneurs along with their extraordinary
business skills are discussed which clearly indicate that a standard manager does not have
these types of confidence, power, knowledge, and vision.
Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mind-set.
In order to motivate the subordinates, the entrepreneurial personality creates an effect in the
process of entrepreneurship (Sahlman, 2007). Besides that, entrepreneurial personality
includes some critical aspects such as communication skills, emotional intelligence, and
cooperative behavior. These three elements can measure the motivational speech of a
sacksful entrepreneur. In addition how each type of factors of entrepreneurial personality
influence the process of entrepreneurship will be discussed below:
Page 12 of 18

Entrepreneurship
Communication skills: in order to exchange feelings and emotion, the way of
communication is one of the best and effective methods which applied by many successful
entrepreneurs. Besides that, with the help of effective communication, an entrepreneur can
sufficient exchange information with other partners of the organization. In addition, an
entrepreneur can motivate followers by communicating freely.
Emotional intelligence: It’s an effective tool which helps an entrepreneur to get emotionally
attracted with the followers. In other words, emotional intelligence which is a critical element
of the entrepreneurial personality involves some psychological strategy for controlling the
activity of the followers (Sahlman, 2007). Apart from that, with the help of this tool or
business technique, an entrepreneur can motivate a subordinate by emotional appraisal and
true emotional support. Moreover, entrepreneurship includes some critical decision which
only implemented after employee conformation such as working hour’s extension process.
Cooperative Behaviour: an entrepreneur should be cooperative because this good approach
is one of the essential and demanding attitudes of a successful entrepreneurial personality
which influence the entrepreneurship process. Apart from that, in order to meet desired goals
and objectives, an entrepreneur needs to help and cooperate the followers who help the
entrepreneur to lead the organization successfully (Jones, 2006). In addition, the employees
or followers have full trust and faith on the entrepreneur by receiving continuous support and
gratitude.
Page 13 of 18

Entrepreneurship
Task 4
Examine, using relevant examples obtained through your mini-research, how background and
experience can hinder or foster entrepreneurship.
Each and every successful entrepreneurship includes some challenging issue and some
advantages which will be discussed below:
Hinder of entrepreneurship
Funds: it is critical elements which require in stat up business. An entrepreneur has to face
the financial problems for some time like Steve Jobs. Mr. Steve Jobs is the CEO of Apple,
and he has some unique ideas and business concepts which help him to be more successful in
the financial crisis (Jones, 2006).
Feedback: due to bad feedback the confidence of an entrepreneur can go down.
Knowledge: insufficient knowledge about business could lead bankrupt condition of an
entrepreneur.
Time: it is the most important factor because, without current timing, an entrepreneur can get
desired goals.
Foster of entrepreneurship
Money: it is a large element of entrepreneurship which is a sign of success as Steve Jobs and
Bill Gates who is the owner of Microsoft which provides the most popular computer
operating system like Windows.
Accomplishment: In terms of Success, both entrepreneurship like Apple and Microsoft
already accomplish their targets which are part of success.
Page 14 of 18

Entrepreneurship
Opportunity: Steve Jobs and Bill Gates both have great communication skills and good
knowledge of technology (Casson, 2010). In addition, they could recognize the potential
opportunities before others find it. Thus, locate an accurate target and recognize the
customer’s demand are parts of future opportunities.
Page 15 of 18

Entrepreneurship
References
Berglann, H., Moen, E.R., Røed, K. and Skogstrøm, J.F., 2011. Entrepreneurship: Origins
and returns. Labour economics, 18(2), pp.180-193.
Garud, R., Hardy, C. and Maguire, S., 2007. Institutional entrepreneurship as embedded
agency: An introduction to the special issue.
Grimaldi, R., Kenney, M., Siegel, D.S. and Wright, M., 2011. 30 years after Bayh–Dole:
Reassessing academic entrepreneurship. Research Policy, 40(8), pp.1045-1057.
Hyytinen, A., Ilmakunnas, P. and Toivanen, O., 2013. The return-to-entrepreneurship
puzzle. Labour Economics, 20, pp.57-67.
Light, P.C., 2009. Social entrepreneurship revisited. Stanford Social Innovation Review, 7(3),
pp.21-22.
Nielsen, K. and Sarasvathy, S.D., 2011, January. Who re-enters entrepreneurship? and who
ought to?: an empirical study of success after failure. In Dime-Druid Academy, Winter
Conference in Aalborg, Denmark (pp. 20-22).
Oviatt, B.M. and McDougall, P.P., 2005. Defining international entrepreneurship and
modeling the speed of internationalization. Entrepreneurship theory and practice, 29(5),
pp.537-554.
Parker, S.C., 2005. The Economics of Entrepreneurship: What we know and what we
don't. Foundations and Trends® in Entrepreneurship, 1(1), pp.1-54.
Qian, H. and Acs, Z.J., 2013. An absorptive capacity theory of knowledge spillover
entrepreneurship. Small Business Economics, 40(2), pp.185-197.
Page 16 of 18

Entrepreneurship
Schindehutte, M. and Morris, M.H., 2009. Advancing strategic entrepreneurship research:
The role of complexity science in shifting the paradigm. Entrepreneurship Theory and
Practice, 33(1), pp.241-276.
Souitaris, V., Zerbinati, S. and Al-Laham, A., 2007. Do entrepreneurship programmes raise
entrepreneurial intention of science and engineering students? The effect of learning,
inspiration and resources. Journal of Business venturing, 22(4), pp.566-591.
Sternberg, R. and Wennekers, S., 2005. Determinants and effects of new business creation
using global entrepreneurship monitor data. Small Business Economics, 24(3), pp.193-203.
Stevenson, H.H. and Jarillo, J.C., 2007. A paradigm of entrepreneurship: Entrepreneurial
management. In Entrepreneurship (pp. 155-170). Springer Berlin Heidelberg.
Zhang, Z., Zyphur, M.J., Narayanan, J., Arvey, R.D., Chaturvedi, S., Avolio, B.J.,
Lichtenstein, P. and Larsson, G., 2009. The genetic basis of entrepreneurship: Effects of
gender and personality. Organizational Behavior and Human Decision Processes, 110(2),
pp.93-107.
Ajagu, A. (2005). The entrepreneur. 1st ed. Lagos: Betcy Media.
Anand, G. and Kodali, R. (2008). Development of a Conceptual Framework for Lean New
Product Development Process. International Journal of Product Development, 6(2), p.190.
Baines, P., Fill, C. and Rosengren, S. (2010). Marketing. 1st ed.
Casson, M. (2010). Entrepreneurship. 1st ed. Cheltenham [u.a.]: Edward Elgar.
Chopra, S. and Meindl, P. (2016). Supply chain management. 1st ed. Boston: Pearson.
Davidson, A. and Simonetto, M. (2005). Pricing strategy and execution: an overlooked way
to increase revenues and profits. Strategy & Leadership, 33(6), pp.25-33.
Page 17 of 18

Entrepreneurship
Farris, P. (2009). Key marketing metrics. 1st ed. Harlow: Financial Times Prentice Hall.
Furtwengler, D. (2010). Pricing for profit. 1st ed. New York: American Management
Association.
Jones, C. (2006). The entrepreneur. 1st ed. Bloomington, Ind.: AuthorHouse.
King, W. (2009). Quantitative analysis for marketing management. 1st ed.
Milligan, S. (2012). Marketing strategies. 1st ed. Delhi: Research World.
Sahlman, W. (2007). The entrepreneurial venture. 1st ed. Boston, Mass.: Harvard Business
School Press.
Trott, P. (2010). Innovation management and new product development. 1st ed.
Westwood, J. (2007). How to write a marketing plan. 1st ed.
Page 18 of 18