Report on Entrepreneurship and Small Businesses: Traits and Skills

This report delves into the realm of entrepreneurship and small businesses, examining the characteristic traits and skills of successful entrepreneurs and managers. It differentiates between the traits of entrepreneurs and managers, highlighting the importance of risk-taking, networking, and self-motivation for entrepreneurs, and knowledge, goal-orientation, and learning for managers. The report then analyzes essential entrepreneurial skills such as leadership, teamwork, decision-making, communication, time management, and problem-solving. It explores various arguments related to entrepreneurial characteristics, including the significance of passion, confidence, and ambition. Furthermore, it investigates the impact of entrepreneurial personality traits, as defined by the OCEAN model, on motivation and how past experiences can foster entrepreneurship. The report concludes by emphasizing the importance of self-motivation and effective risk management for achieving business goals.

Entrepreneurship And
Small Businesses

Table of Contents
INTRODUCTION...........................................................................................................................2
ACTIVITY 2....................................................................................................................................2
P5 Characteristic traits and skills of successful entrepreneurs & managers and their
differentiate.............................................................................................................................2
M3. Examine different lines of argument relating to entrepreneurial characteristics............4
D3. Analyse the characteristic traits, skills and motivational drivers of successful
entrepreneurs..........................................................................................................................5
P6 Effects of entrepreneurial personality on entrepreneurial motivation...............................5
P7 Impacts of past experiences to enhance entrepreneurship................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Entrepreneurship refers to the procedure of designing, converting and launching a new
idea into business. This is generally initiated by small businesses. The person who create such
business is known as Entrepreneur (Kucel and et.al., 2016). They play an important role in the
growth of economy and provide comfort to the customers.
Present report will cover the characteristic traits and skills of successful entrepreneur. It
will highlight the aspects of entrepreneurial personality that reflect entrepreneurial motivation
and mind-set. At last, this report will demonstrate how background and experience can foster
entrepreneurship.
ACTIVITY 2
P5 Characteristic traits and skills of successful entrepreneurs & managers and their differentiate
TRAITS OF SUCCESSFUL ENTREPRENEURS
Risk Taker — An entrepreneur is considered to be risk taker. They don't care about what others
would think and what their reactions will be etc. Risk taking is the first and foremost component
in entrepreneurship (Piperopoulos, 2016). They do take risk and calculate them, that is why they
become successful.
Strong Networking — Strong networking is considered to be an important characteristic trait for
the entrepreneurs (Kusmintarti, 2016). They have very strong network which help them to
achieve their goals and objectives. Entrepreneur always use their network efficiently and
effectively in order to make their business succesful. They always respect them and keep positive
attitudes towards them.
Self Motivation — There are various constraints, problems, risks, issues and taunts in their
entrepreneurship journey. But a successful entrepreneur never gets afraid of it. They are self
motivated in every situation whether it is worst or good. And this trait makes them different from
managers (Kusmintarti and et.al., 2016).
TRAITS OF SUCCESSFUL MANAGERS
Knowledgeable — It is considered to be the trait which make managers expert in their work.
Manager have to work properly in order to maintain its position in the company which lead them
to gain and acquire the knowledge from various sources and apply them to their work
(Kucel,2016). That is the reason, manager is considered to be knowledgeable.
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Goal Oriented — Manager has the trait which is goal oriented. Managers do every management
activity with the purpose of achieving some goals and objectives of the business (Julien, 2018) It
doesn't matter for them that goals are short term or long term. All they do care about that how to
achieve them with given time, resources and knowledge.
Learning — A successful manager is not the one who just manage the business properly and
effectively. They are the one who always trying to learn something from others, mistakes or
situations. They not only try to learn from them but also try to imply them on their management
work (He, Standen and Coetzer, 2017).
SKILLS OF SUCCESSFUL ENTREPRENEURS
Leadership Skill — Leadership skill is another and one of the most important skill which is
considered to be play an important role in a successful entrepreneurship. By the help of
leadership skill, entrepreneur is able to motivate their teams, make them understand vision &
objectives and guide them in their work and activities.
Teamwork Skill — Entrepreneur is not only the one who can operate their business successful.
There are a lot of people behind it who put their efforts along with entreprenuer in order to make
business successful. Thus, with the help of every person, entrepreneur is able to achieve its
objectives. Thus, for the successful entrepreneur, they must have to possess the teamwork skill
(Galanakis and Giourka, 2017). Through this, they are able to involve their team members and
try to achieve the whole objectives.
Decision Making Skill — There are various aspects on which entrepreneur need to take
decisions. Those decisions should be good and has long term impacts on the activities in which
context, the decision has to be taken. Thus, for take effective decisions, Entrepreneur must
possessed the decision-making skill. This will help them to take decisions accordingly
(Galanakis and Giourka, 2017).
Communication Skill — It is one of the most important skill which must be possessed by the
manager. This skill helps them to communicate their ideas, thoughts and view points to
employees. Along with that, with the help of this skill, they are able to understand what others
want to say. This lead to creation of understanding as well as co-ordination which is beneficial
for the success of the business.
Time Management Skill — In today's time, time is considered to be one of the most important
components for the effectively management. Thus, for the effectively use of time, manager must
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have time management skill. This will help them to prioritize and manage their work on time, so
that they can look upon another important management work.
Problem Solving Skill — It is not easy to manage the whole organization due to its complexity.
It has a lot of problems which has to be faced by the manager as well as the employees of the
firm. In order to understand the problems according to the situation and then determine the
solutions in order to solve them, Manager must have problem solving skills (Iacovone, Calderón
and MacGregor, 2018).
DIFFERENTIATE BETWEEN MANAGERS AND ENTREPRENUERS
MANAGERS ENTREPRENEURS
Manager is the person who has the
responsibilities of the management and
administration of business and its related
aspects.
Entrepreneur is the perosn who starts the
business by converting the new ideas into
physical forms.
Manager is not the owner of the business, they
are considered to be employee of the firm.
Entrepreneur is the initiator. Thus, they are
considered to be the owner of new venture.
Manager works for the organization in order to
earn salaries. Thus, he don't have to bear any
kinds of risks.
Entrepreneur is risk taker. They are ready for
all the types of risks whether it is financial risk
or non-financial risk.
They do motivate their employees because
they have the power which comes from their
position in the organization.
Self-motivation is considered to be the key
characteristics of theirs as they have the
passion for doing something which lead them
to be motivated.
Their driving forces are status quo. Their driving forces are innovation and
creativity (Julien, 2018).
M3. Examine different lines of argument relating to entrepreneurial characteristics.
According to the view of the julien (2018) the characteristics of an entrepreneur is
considered to be same as the characteristics of the leader. In this process, they need to determine
the objectives of their business, manage the risks and prepare the action plans & strategies to
achieve the determined objectives. On the other hand it also argued that they also have to deal
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with various internal and external stakeholders and required to manage the resources, employees,
funds and conflicts in order to run the business properly.
D3. Analyse the characteristic traits, skills and motivational drivers of successful entrepreneurs.
Steve Jobs (founder of Apple Company) is counted as one of the most successful
entrepreneur. Following characteristics such as Passionate, Confident and Ambitious made Jobs
successful. The respecting famous entrepreneur Steve jobs is a dropped out college because of
the lack of affordability of financial burden. He was persistence in work along of distributing
coke bottles for daily meals. It is all about the motivation and passionate attitude toward his work
to have the dream of the becoming the successful entrepreneur.
P6 Effects of entrepreneurial personality on entrepreneurial motivation.
The personality of entrepreneur is an important part to establishment of business and be
motivated top deal with variety of problem and risk associated with it (Iacovone, Calderón and
MacGregor, 2018). There is involvement of characteristics in entrepreneur to generate new ideas
and generate revenue for the customers. There is constant demand of customers which has to be
fulfill by the entrepreneur to have sustainability in business. The characteristics of the
entrepreneur can be identified by the implementation of OCEAN model-
The five factors are-
Openness to experiences ( inventive vs consistent)
The factors refers to level of intelligence , curiosity, creativity, imaginative thinking to
establish a particular base for success of business. It is the dimension of personality in which the
individual in intellectually curious to take initiative and creative step to have development of the
business set up.
For example- Cesar Ritz is one of the dominated in the hotel industry has the unique desire to
understand the wealthy customers create an astounding foundation that provides excellent
services we came to know now as luxury hospitality
Conscientiousness ( organized vs easy going)
There should be high degree of individuality, persistence in work along with motivation
is the accomplishment of business goals (Julien, 2018). The individual having high degree of
Conscientiousness are more goals oriented and dependable. They are more consistent in job
performance across a wide variety of work and occupation.
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For example- the respecting famous entrepreneur Steve jobs is a dropped out college because of
the lack of affordability of financial burden. He was persistence in work along of distributing
coke bottles for daily meals.
Extra version (outgoing vs reserved)
This describes about the people who are assertive, dominant, energetic, and enthusiastic.
The entrepreneur must be high on extra version as it provides them a large number of
opportunities and establish direct interpersonal relationship inside and outside the business
environment ( Standen and Coetzer, 2017.). For example- Conrad Hilton has the one who as
founded the coast to coast hotel chain in the year 1943 that turned out to be hotel brand 1949.
Agreeableness (compassionate vs detached)
The high individual are caring, cooperative and forgiving which does not suits a
personality of successful entrepreneur. The entrepreneur should have the low degrees of
agreeableness as having the trait of being manipulative, self centered, suspicious and ruthless. It
is important foe an entrepreneur to be tough to survive in the jungle of competition.
For example – a marketing youngster having an idea of working with Seattle coffee bean roster
for up scaling espresso cafes. His employees were not interested in having any coffee shop but
have interest in financing Schultz's endeavor known as Starbucks.
Neuroticism ( sensitive vs secure)
It refers to the difference between emotional stability and adjustment. It means the
entrepreneur having high neuroticism have the risk of of experiencing the negative emotion of
including anxiety, depression and impulsiveness (Kucel and et.al., 2016.). On the other hand
with low neuroticism such as self confident, clam , tempered and relax. The mindset of
entrepreneur must be patient and self confident to identify the major opportunities in the market
foe the development of the business. The entrepreneur must have strong confident and belief in
ability to control the outcomes of environment.
Hence the different characteristics and traits along with skills are essential part for the
entrepreneurs to have successful establishment of business and enhance its growth. The
entrepreneur must be self motivated to run the business successfully by having proper
management of risk and mindset to achieve the goals continuously.
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M4
For example, Richard Branson states that his risk taking ability is mainly due to his past
experiences, since he has ab believe that with each challenge there is an opportunity and
knowledge for the individual (Burns, 2016). Assessing the positive view or the character
towards the business, it becomes more clearer. This was formed through the education or the
knowledge received through the life experience..
P7 Impacts of past experiences to enhance entrepreneurship.
Personal background basically have the impact in a business which can hinders or foster
the business of an entrepreneurship (Kusmintarti and et.al., 2016). Due to personal background
there is continuous support from the family and friends,motivation, financial background and
others. With the help of correct support form the family and friends, then the entrepreneur can be
motivated as to have the establishment of successful business. Motivation can influence the
risk taking ability and financial support of entrepreneur to have a start up for business. However,
due to lack of support froof m the family members , the entrepreneur became motivated in
setting up business. Personal experience also plays a vital role along with personal background
in establishment of business.
For example - J. Willard Marriout is the owner and founder of Marriott hotel. Hostel is
severs the best services to customers. Marriott was born at Marriott settlement, the second of
eight children of Hyrum Willard. At the age of 19 and as devout number of the church of jesus.
He is graduated from WebAllen, S. and Truman, C., 2016Galanakis, K. and Giourka, P., 2017.er
state University, where students are served as student body president. He is very energetic
worker and rarely rested, performing to run his company in effective manner. He always
motivated to themselves for positive work and for growth aspects.
The next example is about the owner of Grand touch, Zac Williams who provides
consultancy services to different business and support to students to have jobs. As J. Willard
Marriout, he is also the self motivated one who had previously failed to have job in Accenture.
Building up good relationship and experience with students has made him motivated to run
business activities (Piperopoulos, 2016). He use to take risk in planning and interact with
different clients to empathize the essential growth of business.
So it can be said that there is both positive and negative impact from the background and
experience of an individual. J. Willard Marriout and Zac Williams both have the self motivation
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and perfect support from their family and friends to have successful establishment of business
and deal with different problems. There is efficient support form there family team members
which keep the entrepreneur motivated as a business cannot survive with team of inefficient
members. There is negative effect and continuous lack of motivation from inefficient teams
and past experience . Of the entrepreneur have the string financial background and support, then
the individual can take a higher level of risk to have s
D4
J. Willard Marriout and Zac Williams both have the positive and negative effect of their
background and experience. Both of them have the motivation to establish new business alng
with different problem to grow. With the help of their efficient team member , they get motivated
to perform business operation. As argued by Piperopoulos, (2016) that company cannot survive
with inefficient team and lack of motivation to have the growth. There can be negative effects
of failure is past. According to Julien,(2018) that with the strong financial position increase the
level of risk set in the business.
CONCLUSION
From the above report it can be concluded that for having the successful business
successful establishment of business. should be proper development of the entrepreneurship
skills. The entrepreneur should be focused as to meet the demand of the customer along with
goals and objectives of company. The entrepreneur should be innovative and creative to have the
change in product and service. The entrepreneurial skills help the individual in reducing the risk
and overcome the challenges. There should be successful planning and market research for the
creation of realistic plan and responses of customers. The business should have the
implementation of the current market strategies along with price and promotion of the product.
This will help in the development and increase in the growth of the economy.
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REFERENCES
Books and Journals
Allen, S. and Truman, C., 2016. Women in business: Perspectives on women entrepreneurs.
Routledge.
Brush, C.G. and Greene, P.G., 2015. Women's entrepreneurship. Wiley Encyclopedia of
Management, pp.1-5.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Galanakis, K. and Giourka, P., 2017. Entrepreneurial path: decoupling the complexity of
entrepreneurial process. International Journal of Entrepreneurial Behavior &
Research. 23(2). pp.317-335.
Hatten, T.S., 2015. Small business management: Entrepreneurship and beyond. Nelson
Education.
He, L., Standen, P. and Coetzer, A., 2017. The perceived personal characteristics of
entrepreneurial leaders. Small Enterprise Research. 24(2). pp.97-119.
Iacovone, L., Calderón, G. and MacGregor, C., 2018, May. Participating or Not? Characteristics
of Female Entrepreneurs Participating in and Completing an Entrepreneurial Training
Program. In AEA Papers and Proceedings. (Vol. 108, pp. 246-51).
Julien, P.A., 2018. The state of the art in small business and entrepreneurship. Routledge.
Kucel, A. and et.al., 2016. Entrepreneurial Skills and Education‐Job Matching of Higher
Education Graduates. European Journal of Education. 51(1). pp.73-89.
Kusmintarti, A. and et.al., 2016. Entrepreneurial characteristics as a mediation of entrepreneurial
education influence on entrepreneurial intention. Journal of Entrepreneurship
Education. 19(1). p.24.
Piperopoulos, P.G., 2016. Entrepreneurship, innovation and business clusters. Routledge.
http://jobpostingtips.com/top-10-most-successful-entrepreneurs-in-hospitality-business/
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