Analyzing Entrepreneurial Mindsets' Influence on Business Innovation

The exploration focuses on the profound impact entrepreneurial mindsets have on business innovation. By examining psychological traits such as risk-taking, creativity, resilience, and adaptability, the study seeks to understand how these characteristics promote innovative practices within businesses. This analysis integrates insights from notable entrepreneurship scholars like Drucker (2014) who emphasizes 'innovation' as a core element of entrepreneurial success, and George & Bock (2011) who discuss practical implications of business models on innovation. Further, Kuratko's (2016) theories on the process of entrepreneurship provide foundational knowledge on how mindset influences innovative outcomes. The assignment will also reference studies by Wiklund et al. (2011), which highlight future directions in entrepreneurship research with a focus on human capital formation and its role in fostering innovation. Ultimately, this comprehensive examination aims to delineate actionable insights that can help businesses harness entrepreneurial thinking to spur continuous innovation.

ENTREPRENEURSHIP

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Different types of entrepreneurial ventures and their relationship with typology of
entrepreneurship..........................................................................................................................1
P2 Similarities and difference between entrepreneurial venture.................................................3
TASK 2............................................................................................................................................4
P3 Impact of micro and macro business on economy.................................................................4
P4 Contribution of small business and start-ups to the growth of economy...............................6
TASK 3............................................................................................................................................6
P5. Characteristics, traits and skills of successful entrepreneur .................................................6
P6 How aspect of entrepreneurial personality reflects their mind-set and motivation...............8
TASK 4............................................................................................................................................9
P7 How experience or background can foster entrepreneurship.................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneurship can be defined as a process of launching, running and designing a new
business in the market place and person who establishes these new enterprises are often known
as “entrepreneurs”. It is the willingness and capacity to develop, manage and organise business
venture along with different kinds of risks such as capital, political in order to generate higher
profits and revenues (Abu-Saifan, 2012). Entrepreneurs are commonly viewed as an innovator or
originator, a source of new business process, idea, products and services. Basically, they covert
economic resources of low productivity into higher in the areas with greater yield return. They
play a key role in the growth and development of economy. These are the individuals who
possess skills, knowledge and competency to anticipate existing and future needs as well as
brings creative ideas in market.
This report mainly talks about different types of entrepreneurial ventures, their
characteristics, impact of micro and macro business and lastly, contribution of these
entrepreneurs towards economy.
TASK 1
P1. Different types of entrepreneurial ventures and their relationship with typology of
entrepreneurship
The term “Entrepreneurship” deals with process of creating and running new company
which is mainly small at its initial phase and the person who designs these are often considered
as Entrepreneurs. They are the one who with their unique or creative ideas establish new
business venture that aims towards satisfying the needs and desires of general public in a
significant manner. Basically, an entrepreneur combines three factors of production namely
labour, capital and natural/land resources in the business opportunities that results in yielding
higher profitability ratios and revenues for venture. Mentioned below are the various
entrepreneurial typologies via which entrepreneur can generate enough profit which are as
follows:
1. Small-Business Entrepreneurship: Entrepreneurial ventures are initially established as
a small business (Barringer, 2012). These are operated, owned and managed by single-
proprietor. Almost all start-ups are considered as a small enterprise as they do not possess
much financial and human resources at its initial phase. In the UK, large number of start-
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ups are still small companies with an objective of feeding their family members instead
of making profits,earning profits. For example: Grocery store, electricians, carpenters and
consultants etc.
2. Scalable Start-up Entrepreneurship: Such types of entrepreneurs possess higher skills and
creativity (Baum, Frese and Baron, 2014). They are aware of the fact that they can
change the world with their innovative ideas. Their main focus is to search for scalable
and repeatable business model and when they found such framework, they emphasize on
attracting more venture capitalists. They lay stress on the rapid expansion and growth of
business enterprise with their creative vision.
3. Large Company Entrepreneurship: Large companies include controlled-corporate
business and financial activities at a large scale. They have finite life-cycle which is
mainly managed by large corporates. Such types of companies grow or develop through
offering new goods and services to potential customers, sustaining innovation, etc. They
have the potential and scope of altering the product as per changed needs and desires of
target audience which give them advantage of higher competitive edge. They run with an
aim of earning higher profits and capturing a large market share as compared to rivalry
firms.
4. Social Entrepreneurship: Social entrepreneurs are often considered as an innovator that
strongly emphasize on creating goods and services that solve the need or problem of
society. Their main goal is to enhance economic condition of the country in an effectual
manner. These enterprise may be exist for for earning profits or non profits.They mainly
deal with the issues such as poverty, health care, illiteracy, etc. and run to promote
societal interest and welfare.
5. Serial Entrepreneurship: They are the one who continuously come up with creative or
new ideas to start the business venture. Unlike other entrepreneur, who often starts their
business with innovative idea and then plays a vital role in managing their day to day
operation, a serial entrepreneur is the one who came up with unique ideas and then
transform their responsibility and duties to someone else. They often referred as founders
of the business organisation (Dacin, Dacin and Tracey, 2011).
6. Female Entrepreneurship: In this, business idea is created by females. They are the one
who with their innovative or creative idea starts new business venture with an aim of
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earning profit as well as serving society. They carry out all company's activities and its
day to day operations solely. Such types of ventures are run, managed and controlled by
females only. In-fact in other companies, they possess the share of 51% just like other
shareholders (Drucker, 2014).
P2 Similarities and difference between entrepreneurial venture
Each business venture owns certain characteristics that makes it different from other
competitors firm but simultaneously they possess certain traits which are identical to other
venture as well. Mentioned below are some of its listed similarities and differences are as
follows:
Lifestyle venturers or business Serial entrepreneurs ventures
Similarities:
 The main aim of these business venture
is to yield higher profits for themselves
so that they can enjoy the luxury and
rich lifestyle.
 For earning higher profits and
revenues, it is essential for such
ventures to recruit best skilled and
talented personnel.
 Laid Stress on capturing higher market
share of untouched market and
optimally use ventures resources for
effectively accomplishing its
objectives.
Similarities:
 Such type of business ventures focuses
on increasing profits and holds strong
position in the market place as
compared to its rivals. Higher profits
allow them to take the benefit of lavish
lifestyle.
 As both ventures possess identical
objectives, it is important for them also
to hire talented and competent
personnel.
 The main similarity between them is
both are customer-centric and utilize
the resources in an optimum manner.
Difference:
 They are not informing their financial
capitalists for their growing stage.
 Such type of ventures posses
centralisation of power.
Difference:
 They keep updating financial investors
about everything that takes place inside
and outside the company.
 They can operate in certain countries.
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 They can operate their business
practices all across the globe.
 Decentralization of authority and
power.
Female entrepreneur business Male entrepreneur business
Similarities:
 The mainly focuses on attaining higher
growths and capturing large market
share.
 They keep on changing their product as
per the needs and demands of desired
wants.
 Their main objective is to gain higher
competitive edge as compared to its
competitors.
Similarities:
 They also emphasize on yielding higher
growths and profits.
 They critically examine the changing
needs and wants of potential customer
and then alter their product according
to that.
 Their business objective is identical as
female entrepreneurs as they also
focuses on attaining higher competitive
edge.
Differences:
 Lack of capability and confidence as
compared to male business owners.
 Slower decision making process.
 Strong command in communication
skill.
Differences:
 Posses high motivation level
 Quickly takes business decision
 Communication skills are not good as
female entrepreneurs.
TASK 2
P3 Impact of micro and macro business on economy
Different forms or types of business venture which is mainly available for an
entrepreneur to establish or start new business venture or firm. They are available in the form of
small,medium and micro depending upon the resources available and potential of business owner
(George and Bock, 2011).
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Micro Business: These are mainly owned and managed by single person with an aim of feeding
the needs and desire of their family members. Sole-Proprietor establish such types of venture in
order to satisfy its basic needs and wants. Such firms require very less capital and its
organisational structure is also flexible because of low involvement of people.
Small-Business: Such type of business venture usually running in local economies. These are
owned & managed by either single person or by partners (Grimaldi, Kenney, Siegel and Wright,
2011). Their workforce is lesser as compared to large scale companies. It is easier for them to
identify the likes and dislikes of target population so that they can alter their product and services
as per their requirement. It is a bit difficult for a single person to run the firm solely, thus they are
recommended to operate it via partnership. Their main goal is to earn significant revenues and
profits in order to carry out its day to day operation in an effectual manner.
Medium Business: Such types of business venture operates on vast level as compared to small
and micro firms. Their main objective is to to yield higher profitability ratio and holds
competitive position in the market place as compared to its rivals. They employ personnel near
about 300-500. All the partners possess equal rights on company's profit & loss throughout the
year. In-fact they owns equal consent in decision-making policy of the company.
Below mentioned are the various areas of economy that is mainly affected by the medium and
small-scale enterprise:
Employment: SME's are contributing immensely towards providing better job opportunities to
large number of people who posses less knowledge and qualification. Their main aim to provide
job opportunities to people live in rural areas. They usually hire personnel on the basis of skills
and competency rather than education or knowledge. It has been figured out that SME's is
contributing 30% in the overall development and growth of economy.
Foreign Direct Investment(FDI): Under this, home country invites other countries so that they
can establish their business operation in their home country. The reason behind is this to generate
higher profits for the country that help in improving the economic condition of the country.
Rural Areas: By providing numerous job opportunities to rural people, SME's are holding
strong market position in both urban and rural areas (Kuratko, 2016). They further provide
adequate training to rural employees that will ultimately sharpen its skills and knowledge in an
effective manner.
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Enhancing Adaptability: In the modern scenario, demands and wants of customers are
changing frequently which enables SME's to modify their product & services as per the changing
needs and requirement of target customer (Martin, McNally and Kay, 2013).
P4 Contribution of small business and start-ups to the growth of economy
Both small-business and start-ups contributes immensely towards the growth and
development of country. In UK, small-business are growing rapidly which in-turn proves useful
for the economy as SME's are contributing 30% in the overall growth of country. Brexit has a
negative impact on the entire functioning of UK SME's. Almost 50% of the UK business is
generating profit from small scale and start-ups. Following are the importance of small-business
and start-ups on country's growth and development:
 Employment: SME's provide large number of job opportunities to various people on vast
level. They are often known as Job Creators as they contributes in enhancing the skills
and knowledge of large number of people by proving them greater job opportunities.
More than 25 million of people are working with small-business and start-ups.
 Turnover: It defines entire sales cycle of the company throughout the year. The total sales
turnover ratio of the nation is 1.8 trillion euros in which SME's and start-ups are
immensely contributing near about 48% which is almost half of total turnover of nation.
 Exports: Now-a-days every single industry is exporting their product and services outside
the boundaries of their nation. They are mainly doing this for capturing the market share
of other countries as well. This mainly results in increasing the profit and revenues of
home nation. Currently, the record of UK export is 408.9 billion in which both small
scale and start-ups are contributing near about 15% (Naudé, 2014).
 Growth: Growth of the economy can be calculated as number of employed personnel.
This is only possible when companies renders vast job opportunities to resident of the
country. In UK, small-business and start-ups are providing large number of opportunities
to vast people which is beneficial for its future growth and success.
TASK 3
P5. Characteristics, traits and skills of successful entrepreneur
An entrepreneur can be described as a person who with his/her innovative skills and
knowledge establish new business venture along with various types of risks connected with it in
the hope of yielding higher profits and revenues. They work with a strong determination in order
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to make their business ideas successful (Santos, 2012). Such types of entrepreneur have a strong
inner drive that is continuously stimulating and motivating them towards achieving their
objectives effectively. Jeff Bezoz and Bill Gates are the examples of two successful enterprises
who have created history with their unique and creative skills. Both possess different traits and
characteristics which provide them the designation of successful business enterprise.
Jeff Bezoz: He is the founder, chief executive officer and chairman of world's leading online
shopping retailer known as Amazon.com. He founded this organisation in the late 1994 (Abu-
Saifan, 2012). The firm has initially started as an Internet merchant of online books and
expanded to a large variety of goods and services. At the late 90s, use of Internet has grown
rapidly. Jeff has taken the advantage of this and he left his well-paying job for this which results
in the formation of AMAZON.COM. Initiating from garage and transforming it into widely
popularised online platform that satisfies each and every need of target customer in a significant
manner is the biggest success. Below mentioned are the some of the traits, characteristics and
skills of Jeff Bezoz which makes him successful entrepreneur are described as follows:
1. Knack for Innovation: Jeff has been popularly known as for its innovation and
uniqueness since his childhood days. In his early days, he had created sound alarm that
guards his room against irritating siblings. His hunger of developing of something new
makes him fall in the list of world's richest person. Initially he designed an online
platform which provides books to its customers. His creative skill further expand the
online portal who now offers anything or everything that a person is looking or desire for.
He also gained popularity for developing Kindle which is an E-Book device in order to
compete with Apple I-pad.
2. Hardcore Realistic: Jeff owns one of the essential personality qualities that is necessary
for any successful entrepreneur. Before launching Amazon he weighs and thinks all
probabilities and possibilities related with it. He even accepted the fact that there might
be chances of their venture failure. He critically evaluate and assess each and every factor
related to its business venture (Storey, 2016).
3. Risk Taker: He posses the quality of risk taker as he left his well-paying job for
fulfilling his dreams and desires. Before launching Amazon, he calculated all possible
risk factor attached to it in the form of human, financial or capital. Initially he does not
have ample amount of money, the only money he had was from this little saving and
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from his parents. He was aware of the fact that, there are 70% chances that their business
idea might fail but his determination and beliefs did not let him down. Today's he falls in
the list of world's richest man (Welter, 2011).
Bill Gates: He is the co-founder of Microsoft Corporation. He is certainly the most successful
and triumphant, Harvard University drop-out who sets an example for entire population in
perspective of following his dreams and passion. He believes that if person believe in something
, then one day or the other he end up with accomplishing it not matter how much time it will take
;the thing that matters is only his determination and courage. He become millionaire at his early
30s. Following are the list of certain personality traits of that makes him successful are as
follows:
1. He is a Philanthropist: It is always better to think about future ahead in the present
situation. Bill Gates with his wife has formed a Bill and Melinda Gates Foundation. He
took retirement from his post and become chief software architect of their home
foundation. When he was about to retire from Microsoft, he is ready for his future plans.
With his philanthropic efforts, he focuses on enhancing the education system of US.
2. He is a Voracious Reader: He believes that one can improve his skills or knowledge vis
reading. He prefers to read hard books rather than reading via e-books. Moreover, he
thinks that with the help of reading, person can learn about the different domain and areas
of knowledge which directly or indirectly supports in its growth.
3. He knows how to prioritize: The success ad failure of an individual is identified by its
prioritization and habits. Time-management plays crucial role in the making of successful
entrepreneur. The found of Microsoft knows it very well as he manages and utilize his
time in doing productive things which results accomplishing its goal in an effective and
efficient manner. There are certain things exist in the globe and you cannot become a part
of each, thus it is important to identify your priorities and learn how to say no to different
things (Wiklund and et. al., 2011).
P6 How aspect of entrepreneurial personality reflects their mind-set and motivation.
An entrepreneur is the one who with their innovative idea creates new business venture
with an aim of making profit. The traits and qualities of each entrepreneur is different from
others. When a person starts new business high level of risk associated with it, it depends upon
the person determination and courage in terms of how effectively they deal with it. Five factors
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model is mainly popularised as Big Five Personality Traits that mainly talks about how the
personality of an individual assist them in accomplishing their goals and desire. There are five
factors related to it which are mainly describe as extraversion, openness to experience,
conscientiousness, Neuroticism and Agreeableness. This is known as OCEAN Model. Each of its
factor is inter-linked with each other. Mentioned below are the detailed explanation of these
factors as follows:
1. Openness to Experience: Openness depicts the curiosity and creativity of a person.
Basically, it describes the extent to which a person can be imaginative or creative. This
skills enables them to deal with any uncertainty in an effective and efficient manner.
High openness describes their imagination power which becomes the reason for its high
competitive edge in the market as compared to its competitors. But sometimes extreme
innovation and imagination results in negative manner. As it enable them to keep on
changing their business operation and practices on frequent basis.
2. Conscientiousness: It sates how well an individual is well-developed and organised in
terms of attaining business objectives in a significant manner. They react or deal with the
situation in a systematic way instead of reacting spontaneously. Person with high level of
conscientiousness are more stubborn which is not beneficial in context of dealing with
various situations.
3. Extraversion: This is primarily deals with the stimulation tendency of a person towards
other things. This mainly deals with the way in which it defines its perspective area
towards different things. High extraversion means that the person is attention-seeker and
which is not good for the image of company.
4. Agreeableness: This defines the tendency of a person towards becoming co-operative
and co-ordinated among other co-worker. This gives them benefits of gaining higher
competitive edge as compared to its rivals. High agreeableness often results in creating
conflicts as the person becomes more dominant.
5. Neuroticism: It mainly describes how an individual deals with unpleasant feelings or
emotions in terms of anger, vulnerability, anger and depression (Welter, 2011).
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TASK 4
P7 How experience or background can foster entrepreneurship
Entrepreneurs are the one who with their unique and creative idea creates a new business
venture in the hope of generating revenues, knowing the fact that risk is associated with it. In this
competitive world, there are various factors that foster the entrepreneurship in significant
manner. The success of entrepreneur depends upon their creative and innovative ideas that makes
them different from their rivals. For instance; if a person belongs to the family in which every
one is entrepreneur, then this is natural that they may posses various innovative and creative
ideas. Their imagination begins from its childhood days that mainly depicts their interest
towards particular thing. Both Jeff Bezoz and Bill Gates aren't start their career as entrepreneur.
They both have faced various hurdles towards reaching to the position where they are today. Jeff
Bezoz has left its well-paying job of New-York in order to pursue its dream or passion (Wiklund
and et. al., 2011).
Bill Gates is the most successful college drop-out, who today falls in the list of world's
richest man. He left his college because he wants to pursue his dream and passion. Their success
journey was not easy as they both passes through various hurdles to attain the position of
successful entrepreneur. They have set an example for the population in terms of how a person
can fulfil his/her dream if he posses the potential and courage to do it.
CONCLUSION
As per the given report it can be concluded that success of business depends upon the
creative and innovative idea of an entrepreneur. Different skills, attributes and characteristics
describes the efficiency and effectiveness of successful entrepreneur. Types of different business
ventures contributes significantly in the growth and development of country. Small-Business and
Start-Ups also contributes in the growth of UK. In-fact they focuses on developing the weak
section of the society so that it overall growth of of country takes place in a significant manner.
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REFERENCES
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Psychology Press.
Dacin, M.T., Dacin, P.A. and Tracey, P., 2011. Social entrepreneurship: A critique and future
directions. Organization science. 22(5). pp.1203-1213.
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.
Grimaldi, R., Kenney, M., Siegel, D.S. and Wright, M., 2011. 30 years after Bayh–Dole:
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Kuratko, D.F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Martin, B.C., McNally, J.J. and Kay, M.J., 2013. Examining the formation of human capital in
entrepreneurship: A meta-analysis of entrepreneurship education outcomes. Journal of
Business Venturing. 28(2). pp.211-224.
Naudé, W., 2014. Entrepreneurship and economic development. International Development.
Ideas, Experiences and Prospects.
Santos, F.M., 2012. A positive theory of social entrepreneurship. Journal of business ethics.
111(3). pp.335-351.
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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entrepreneurship research. Entrepreneurship Theory and Practice. 35(1). pp.1-9.
(Abu-Saifan, S., 2012)(Barringer, B., 2012)(Baum, J.R., Frese, M. and Baron, R.A. Eds., 2014)
(Dacin, M.T., Dacin, P.A. and Tracey, P., 2011)(Drucker, P., 2014)(George, G. and
Bock, A.J., 2011)(Grimaldi, R., Kenney, M., Siegel, D.S. and Wright, M., 2011)
(Kuratko, D.F., 2016)(Martin, B.C., McNally, J.J. and Kay, M.J., 2013)(Naudé, W.,
2014)(Santos, F.M., 2012)(Storey, D. J. ed., 2016)(Welter, F., 2011)(Wiklund, J.,
Davidsson, P., Audretsch, D. B. and Karlsson, C., 2011)
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