Entrepreneurship: Types, Impact of Ventures and Entrepreneur Traits

This report, prepared for the Federation of Small Business, delves into the multifaceted world of entrepreneurship. It begins by defining entrepreneurship and exploring various venture types, including public, private, and social enterprises, along with their respective entrepreneurial styles. The report investigates the similarities and differences between these ventures, analyzing their objectives, roles, and characteristics. It further examines the impact of micro and small businesses on the economy, highlighting their contribution to job creation, innovation, and economic growth at local, regional, and international levels. The report also assesses the importance of small businesses and start-ups in fostering social economy growth. Furthermore, it evaluates the abilities and characteristics needed for entrepreneurial success, including the influence of personal background and experiences. The analysis draws on insights from The Business Show 2017 to provide a comprehensive understanding of entrepreneurial ventures and their impact on the economy and society.

ENTREPRENEURSHIP

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
P1 Introduction of different types of entrepreneurial ventures and their relation with different
type of entrepreneurship..............................................................................................................1
P2 Exploration of similarities between different type of entrepreneurial ventures....................3
M1 Investigation of diverse entrepreneurial venture range to understand the entrepreneurship
in private and public sector.........................................................................................................4
D1 Critical examination of the scope, development and growth of entrepreneurial ventures....4
P3 Interpretation and assessment of impact of micro and small business on the economy,.......4
P4 Explain the importance that small businesses and start-ups on the growth of social
economy......................................................................................................................................5
M2 Evaluating the differences that small, medium and large businesses make to the economy.
.....................................................................................................................................................6
D2 Examine the effect of small business on local, regional and international context...............6
PART 2............................................................................................................................................6
P5 Determination of the abilities needed to become a successful entrepreneur.........................6
P6 Assess the impact of entrepreneurial personality on motivation and mindset of
entrepreneur.................................................................................................................................7
M3 Exploration and examination of different lines of argument relating to entrepreneurial
characteristics..............................................................................................................................8
D3 Analysing the characteristic traits, skills and motivational drivers of successful
entrepreneurship..........................................................................................................................8
P7 How past experience and background of a person can hinder or foster entrepreneurship.....8
M4 Analysing connection between entrepreneurial characteristics and impact of personal
backgrounds................................................................................................................................9
D4 Evaluation of positive and negative impact of background and experiences on
entrepreneurs...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Entrepreneurship is not about thoughts but it's about making ideas happen. The process of
designing, starting and running a new business is known as entrepreneurship (Dacin and et.al,
2011). This report is undertaken to explore the opportunities of business venture available to
entrepreneurs. This study further assesses the impact of small business on the growth of the
social economy. The learning also reflects the insights of different 'entrepreneurial mindset',
personalities, traits and their background that will help in fostering entrepreneurship. Moreover,
both positive and negative impact of past experiences are evaluated in this report.
In order to understand this assignment a report aiming at encouraging entrepreneurs is
prepared by the senior manager of Federation of Small Business (FSB). This report is helpful in
evaluation of some essential factors of small business entrepreneurship.
PART 1
P1 Introduction of different types of entrepreneurial ventures and their relation with different
type of entrepreneurship.
Entrepreneurship is defined as the capacity and disposition to develop, arrange and pull
off a business venture. It is also about dealing with the the risks associated with the business
project in order to earn profit (Defourny and Nyssens, 2010). In the present study, the impact is
on growth of entrepreneurial activities in a small-scale business is discussed. For such business
entities, an entrepreneur has good opportunity and vast scope in different sectors that involves
industrial, agricultural and service. Small size is beneficial because they have high fecundity,
high skilfulness and low employee turnover. There are basically nine different type of
entrepreneurship as explained below: Administrative - In this type of entrepreneurship, the functions revolves around the
administrative tools. The crucial techniques of this type include the total quality
management, implementation of new strategies, etc. Opportunistic - This type of entrepreneurship, opportunities knocks the door for
entrepreneurs. Acquisitive - This type of entrepreneurship learns from the other competencies. The
knowledge of others is grasped in this type.

 Incubative - The new ideas are brought into the organisation through this type. The
execution of fresh thoughts related to the business growth took place. Imitative Entrepreneurship- Depending upon the best practices of entrepreneurs present
in the market, imitation is done (Oosterbeek and et.al, 2010). The best one is selected and
implemented in the organisation. Private - This type of entrepreneurship is started under private sector but government
provides them support. Public - Government bodies undertake such type of entrepreneurship. Further, they
provide support to the private one. Individual - This type involves an individual for its functioning.
 Mass - This type of entrepreneurship involves a mass of number for the process. It is used
to enhance the number of small and medium enterprises in nation.
There are three main types of entrepreneurial ventures in which these entrepreneurship styles
can be assigned and they are as follows:
 Public- These ventures are performed by the government bodies and it includes the
public, administrative, mass and acquisitive entrepreneurship.
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Illustration 1: Types of
entrepreneurship
(Source: Defourny and
Nyssens, 2010)

 Private- An individual or it's family owns this type of venture. The entrepreneurship
styles followed by them are private, opportunistic, individual, imitative, etc.
 Social- These type of ventures are prepared to solve the social issues. They involve
incubative and mass style (Welter, 2011).
P2 Exploration of similarities between different type of entrepreneurial ventures.
There are mostly three type of entrepreneurial ventures namely, public, private and
social. These can be further classified in micro, small and medium depending upon the firm size.
All the three categories have some roles, characteristics and objectives. These components may
be similar or not to each other. Below is a table that contains the three basic components of
different ventures:
VENTURE OBJECTIVES ROLES CHARACETRISTIC
Public They aim about
earning maximum
revenue for the nation
from the public.
Government bodies
undertake the
responsibilities of the
functioning of this
venture (Schaper and
et.al, 2014).
These ventures are
important for the
development of the
nation. They directly
impact upon the GDP
of the country.
Private Private ventures aim
on earning the
individual profit. They
start ventures to feed.
They employ local
people and sometimes,
family or friends are
hired in this venture.
Privately owned
ventures provide
employment.
Social They aim on creating
innovative products
that resolves the social
needs and issues
(Dacin and et.al,
2011). Also, they try
to make world a better
place to live in.
The strategies to deal
with the social issues
are prepared by them.
They do not work for
wealth creation rather
they work to solve the
social issues arising in
world.
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Further, these ventures can be sub-categorised depending upon the size of the firm. The
categories are small, medium and large. It should note that private ventures falls into the small
category, social projects are the medium sized whereas, public ventures comes in the category of
medium sized entrepreneurial tasks.
M1 Investigation of diverse entrepreneurial venture range to understand the entrepreneurship in
private and public sector.
There is different type of entrepreneurial ventures that have these various
entrepreneurship types-
 Small business- This type of ventures involves small size businesses for example grocery
store, electricians, etc. The effective styles of entrepreneurship for small business are
individual, opportunistic, imitative and private.
 Scalable Start-ups- These ventures are started with a vision to change the world with their
services. They involve incubative, opportunistic and private entrepreneurship.
Sometimes, government also implements some start-up business, in that case public
entrepreneurship will be present in the entity (Bruton and et.al, 2010).
 Large company- They have finite life-cycles. This type of firms aims on the
implementation of innovative and creative services and for this, they include
administrative, acquisitive and mass entrepreneurship.
 Social Entrepreneurship- These are the persons that concentrates on the production of the
products that can solve the social needs. The entrepreneurship styles followed by them
are public, mass and administrative.
D1 Critical examination of the scope, development and growth of entrepreneurial ventures.
All the three sectors namely public, private and social get benefited by the entrepreneurial
ventures. These projects cover all the aspects of needs of societal as well as national. Different
entrepreneurship deals in a range of sectors (George and Bock, 2011). From the annual reports
of Federation of Small Business, it can be seen that the number of entrepreneurial ventures is
increasing yearly. This increment shows that there are numerous benefits associated, which are
enhancing people for such ventures.
P3 Interpretation and assessment of impact of micro and small business on the economy,
Being a senior member of Federation of Small Business, it is important to add the details
of impacts of small concern on the economy of country in the report so that the effectiveness of
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the small business ventures can be assessed (Defourny and Nyssens, 2010). Small businesses are
the backbone of the economic system. There are many impacts of such entities, such as
according to the report of 2016, small businesses accounted for around 99.3% of all private
sectors. Also, the coined annual turnover of SMEs was 1.8 trillion. These organisations also
drive growth, opens new, markets and also creates employment and that is why they cannot be
ignored. SMEs also brings new and innovative ideas to the business place. To understand the
growth of business size, a statistic table is present below-
Business Number of enterprise
in 2015
Number of enterprise
in 2016
%Change
Micro 4617 5010 7.00%
Small 186 195 5.00%
Medium 30 31 3.00%
Total SMEs 4887 5236 7.00%
Thus, from the above table it can be evaluated that SMEs faced growth in their figures.
This development has impacted local, regional and international markets as follows-
 Local- The growth in the number of SMEs directly impacts the local market by providing
the people with the opportunity of employment. Also, the local development is ensured
by practising such entities in an area (George and Bock, 2011). These businesses further
contribute in the GDP of the country which biggest advantage to nation from such
entities.
 Regional- It is easy for small and micro business establishments to respond and adapt
quickly to changing economic climates. Thus, they can alter their environment depending
upon the needs of the customers which helps them, in gaining the loyalty. Also, these
businesses receive less revenues as compare to the larger corporations.
 International- SMEs enhances the GDP of the nation which helps nation in expanding its
global edge resulting in good profitability to the country. The wide range of SMEs helps
in increased revenue generation which helps government to expand the global side.
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P4 Explain the importance that small businesses and start-ups on the growth of social economy.
Small sized entities and business start-ups are the most crucial business place for the local
culture. The main aim of these organisations are completing the needs the local people residing
in the society and thus, they design the services and products depending upon their inevitably
and demands. Also, start-ups are also designed to provide convenience to the society (Drucker,
2014). These establishments further provide employment to the society that helps in their
development.
M2 Evaluating the differences that small, medium and large businesses make to the economy.
Small and medium concerns are profitable for enhancing the local market whereas large
businesses provide an international edge to the entity (Defourny and Nyssens, 2010). SMEs need
less origins and also easy to operate whereas in case of large business organisations, for funds
and resources are needed which are to be compensate by the public through revenue.
D2 Examine the effect of small business on local, regional and international context.
Small business has direct impact upon the GDP of the nation that enhances the growth of
all the three sectors local, regional and international (Storey, 2016). They further contributes in
the economic growth of the country. They also provides help to the nation by creating job
chances and by bringing innovative and creative ideas to the society. Moreover, these entities
helps in fostering the lifestyle of regional people.
PART 2
P5 Determination of the abilities needed to become a successful entrepreneur.
For understanding the qualities required to become a successful entrepreneur, I attended
The Business Show 2017 which was held at the London Excel Centre. In this show, an
opportunity is provided through which insights of the entrepreneurship mindset, personalities,
traits, etc. can be observed. It was determined that there are some abilities which are required to
attain success in entrepreneurship, some of them are stated below-
 Money management and enhancement- An entrepreneur should possess this skill as it is
the main objective of any business (Oosterbeek and et.al, 2010). Effective strategies
should be implemented in the business to enhance the market value of the establishment.
 Identifications of the strengths and weaknesses- This analysis is must to understand the
direction in which, entity should be proceeded. By understanding the strengths and
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weaknesses, an entrepreneur can estimate the future impact of internal and external
environment.
 Strategy preparation- It is must for entrepreneurs to possess the ability of effective
preparation of strategies. Every action in a business is based on certain policies, thus
businessperson should implement them well.
 Decision-making- Impelling decision making schemes are necessary for entrepreneurs.
Further, quick response is also required some time, thus entrepreneur should possess this
quality of quick responding.
 Customer focus- Consumers are the most crucial part of a business. Thus, it is foremost
duty of the businessperson to take care of their needs and demands in order to enhance
their figures.
 Market research- It is crucially required for the entrepreneurs to do a deep research on the
current trends so that the product development can be done accordingly. This research is
done in the area where the venture is going to take place.
 Ability to deal with failures- It is necessary to deal with all the ups and downs present in
the way of the business. This ability helps in choosing the alternative solutions.
 Staff management- Employees are the backbone of an organisation's performance.
Entrepreneur needs to implement effective management techniques to manage employees
effectively in order to enhance the overall performance (Bruton and et.al, 2010).
Thus, above are some skills that are required in an entrepreneur to become successful in
the field.
P6 Assess the impact of entrepreneurial personality on motivation and mindset of entrepreneur.
Personality of an entrepreneur highly matters in motivation and mindset of an
entrepreneur. There are various factors that impacts upon the personality and some major among
them are as follows-
 Family Upbringing- The most important factor that helps in building the personality is
the way how they were bought up. Family is the first school in anyone's life. The basic
things of living are learned from here only (Defourny and Nyssens, 2010). If the family
upbringing was strong enough that it made a person confident and motivated then half of
the war is already won by him/her. If the family of entrepreneur will be supportive then
he will always feel motivated in doing practises.
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 Lifestyle- It is another significant factor that impacts upon the personality of an
entrepreneur. This segment involves the way of living of the person and its surroundings.
Lifestyle of a person highly impacts upon generation of mindset. The environment in
which the person stays makes him/her that way.
 Cultural differences- Managing two different cultures is a bit challenging tasks and this
variation can impact upon the entrepreneur. Acceptance from a culture is very important
and it is only possible when you have a good knowledge of the culture in which you are
working.
 Personal motivation- Self-motivation is an ingredient that helps in attaining success. A
person can develop self-motivation by reading inspirational stories, watching
motivational films and also one more factor that helps in developing motivation is
competition (Dacin and et.al, 2010). Healthy competition is beneficial in each step of
business.
 Actuation- Sometimes, there are some actuating materials that helps entrepreneur in
generating motivation. They either impacts directly or indirectly to make the mindset for
some action.
Hence, above are some factors that impacts upon the motivation level of an entrepreneur.
These segments also helps them in taking decisions while operating organisation.
M3 Exploration and examination of different lines of argument relating to entrepreneurial
characteristics.
There are mainly five personality traits that characterise a entrepreneur namely,
innovativeness, proactivity, risk taking, autonomy and competitiveness. All these factors are
important in the success of an entrepreneur a examined from the above tasks (Schaper and et.al,
2014). In line with differentiation perspective these five factors are associated with the income
and employee numbers during high time of venture. In context to situation strength perspective,
these points are related to the growth in number of employees.
D3 Analysing the characteristic traits, skills and motivational drivers of successful
entrepreneurship.
For become a successful entrepreneur it is sentential to have some skills. Also, the person
should be motivated towards the goal. The skills required are passion, resilience, self-possession
and decisive (Welter, 2011). Mark Zuckerberg is the most successful entrepreneur in today's date
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because they possess these skills and they are also self-motivated towards their objectives.
Further, their past experience also helped them in attaining success.
P7 How past experience and background of a person can hinder or foster entrepreneurship.
Background and personal experience largely influences the effectiveness of an
entrepreneur. In order to examine this, some factors are explained along with their positive and
negative impact on the entrepreneurship that can hinder or foster their performance. These
factors are as follows-
 Education- Education is the key factor to become an entrepreneur. Entrepreneurship
highly depends upon the level and the type of education provided to the person. Also, it
also needs the dedication of the person towards education and learning.
 National culture- Culture of an nation also plays a vital role in entrepreneurship. If the
culture does not support the practices of entrepreneurship then it directly results into the
loss (Kelley and et.al, 2012). Whereas if entrepreneurship is acceptable by the culture
then it leads to profitability.
 Economic circumstances- These are circumstances that are faced by the entrepreneur in
money matter. Poor economical conditions also hinders the performance as it prevents
them to get high level of education.
 Character attribute- This is the factor that directly impacts upon the effectiveness of an
entrepreneur. These are the traits that are possessed by the entrepreneur during entire
practising.
M4 Analysing connection between entrepreneurial characteristics and impact of personal
backgrounds.
Personal background and past experience are the two major things that are highly
connected to the entrepreneurial characteristics. (Kirzner, 2015) Further, both these factors offers
different parameters to small, medium and large size entities in attaining success. These elements
helps all three in making their economy.
D4 Evaluation of positive and negative impact of background and experiences on entrepreneurs.
Personal experience and background of an entrepreneur either hinders or fosters their
entrepreneurship (Drucker, 2014). For example in case of Mark Zuckerberg, they were
dedicated towards programming till his early ages which helps him in getting so many
opportunities to them. But this knowledge leads him to make Friendsbook during his Harvard
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days due to which they were suspended from the university. Thus, it is clear from the situation
that past experiences has both positive and negative impacts on the entrepreneurship.
CONCLUSION
The above study is based on the significance of entrepreneurship on small scale
industries. In this learning, evaluation of impact of personal experiences and other factors on
entrepreneurs is done. This assignment also described different types of entrepreneurial ventures
along with their characteristics, roles and objectives. Also, effect of past experiences on
effectiveness of entrepreneurship are stated in this study. In addition to this, this learning also
comprises of the abilities required to become a successful entrepreneur. The role of
entrepreneurial characteristics, traits and motivation is further explained in this assignment.
Furthermore, the role of small business entrepreneurship on local, regional and international
market is also discussed deeply in this report.
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REFERENCES
Books and Journal
Bruton, G. D. and et.al, 2010. Institutional theory and entrepreneurship: where are we now and
where do we need to move in the future?. Entrepreneurship theory and practice. 34(3).
pp. 421-440.
Dacin, M. T. and et.al, 2011. Social entrepreneurship: A critique and future
directions. Organization science. 22(5). pp. 1203-1213.
Dacin, P. A. and et.al, 2010. Social entrepreneurship: Why we don't need a new theory and how
we move forward from here. The academy of management perspectives. 24(3). pp. 37-
57.
Defourny, J. and Nyssens, M., 2010. Conceptions of social enterprise and social entrepreneurship
in Europe and the United States: Convergences and divergences. Journal of social
entrepreneurship. 1(1). pp. 32-53.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
George, G. and Bock, A.J., 2011. The business model in practice and its implications for
entrepreneurship research. Entrepreneurship theory and practice. 35(1). pp. 83-111.
Kelley, D. J. and et.al, 2012. The global entrepreneurship monitor. 2011 Global Report, GEM
2011, 7.
Kirzner, I. M., 2015. Competition and entrepreneurship. University of Chicago press.
Oosterbeek, H. and et.al, 2010. The impact of entrepreneurship education on entrepreneurship
skills and motivation.European economic review. 54(3). pp. 442-454.
Schaper, M. T. and et.al, 2014.Entrepreneurship and small business.
Storey, D. J. ed., 2016. Entrepreneurship and new firm. Routledge.
Welter, F., 2011. Contextualizing entrepreneurship—conceptual challenges and ways
forward. Entrepreneurship theory and Practice. 35(1). pp. 165-184.
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