Entrepreneurial Traits and Skills: A Comparative Analysis

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ENTREPRENEURSHIP AND SMALL
BUSINESS MANAGEMENT

TABLE OF CONTENTS
Introduction..................................................................................................................................................1
LO 3.............................................................................................................................................................2
P5 Determine the characteristic traits and skills of successful entrepreneurs that differentiate them
from other business managers.................................................................................................................2
P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and mind-
set.............................................................................................................................................................5
M3 Explore and examine different arguments relating to entrepreneurial
characteristics....................................................................................................................................6
LO 4.............................................................................................................................................................7
P7 Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship......................................................................................................................................7
M4 Analyze the link between entrepreneurial characteristics and the influence of personal background
and experience to specific successful entrepreneurs...............................................................................8
Conclusion...................................................................................................................................................9
References..................................................................................................................................................10

Introduction
Entrepreneurship is the activity of putting up the business with taking the necessary risks in financing in
order to earn the profits in the business. Entrepreneur main motive is to bring something new for their
targeted customers who are not already available in the market through their innovational ideas and
efforts. Entrepreneurs can be global or might be working at the local level also along with social
enterprises. The similarities and differences between local and global entrepreneur will be shown
through their traits and characteristics. Finally, the report will represent the background and experience
that can foster or hinder the successful entrepreneurs.
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LO 3
P5 Determine the characteristic traits and skills of successful entrepreneurs that differentiate them from
other business managers
An entrepreneur is the combination of broader concept; skills and immense courage as it include risk
and due to this entrepreneur has to first should be developed to take the risk in handling venture.
Entrepreneur reflects their potentials to transform their concept into reality with positivity and
effectiveness.
Scope of local entrepreneur, global and social enterprise:-
Local entrepreneur has good scope for small scale business for their own growth in activities of
entrepreneurship. This entrepreneur has better opportunities and more scope of selling the services
instead of manufacturing the goods or items. The results will be better if size is smaller as risk will also
be less. It is the evidence that local entrepreneurs can achieve more productivity, higher efficiencies and
low turnover of labour (Malecki, 2018). The example of London entrepreneur that can be considered as
local is Natasha Faith.
Global entrepreneur has very big opportunities to expand their business and therefore there scope is also
high and wide. These entrepreneurs are interested towards the manufacturing rather than focussing only
on services. Risk is also very high for global entrepreneurs and their firm success is also higher if
everything goes in right direction. But still global entrepreneur scope interrupts due to resource based
view and network perspectives. The example of global entrepreneur can be Bill Gates, Andrew
Carnegie, Richard Branson and many more.
Social enterprise scope is no longer limited to activism and presently enhanced opportunities are
presented in child welfare, counselling, community development are just not the NGOs (Non-
governmental organizations) but are also international bodies, national and social enterprises. Its scope
is expanded to rural and urban development, making health care affordable, services for differently
abled, services for socially disabled children, women empowerment, counselling services
(Vanevenhoven and Drago, 2015). Examples of social enterprises are bidding for Good, Ten Thousand
Villages, Sanergy and many more across the nation.
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For correct evaluation and to determine the difference and comparison between one local and global
entrepreneur are presented below. The local entrepreneur taken can be Natasha Faith, famous London
entrepreneur and Richard Branson shall be considered as the global entrepreneur.
Differences on the basis traits, skills and characteristics of both mentioned entrepreneurs
Natasha Faith (Local entrepreneur)
Introduction
Natasha is presently the chief executive and designer at the jewellery organization named as La Diosa,
Spanish known for ‘the goddess’. In the age of 21 years, she become the co-founder with the business
partner Semhal Zemikal and got the immediate success. Due to the success, she wants to pursue for her
career in the business instead of getting university education just for degree. In the age of 19, she was
travelling the world and at that time she and her business partner learn for the skill of jewellery making
in Mexico. After her return, she addressed to the Prince’s Trust for funding her start up (Guardian
Series, 2019). Following this, her foremost collection launched in Harvey Nichols and entirely sold in
within 2 weeks. Presently also, the organization is consistently growing even in recession period and in
last year only growth rise to 103% and La Diosa has its big outlet in Hatton Garden.
Traits and characteristics
 Effective learning: Learning is important in the individual so that they can react in the correct
way. It is significant as it shown in Natasha also as she learned for the jewellery making at the
age of just 19. She was the big learner due to which she is very successful.
 Passionate: Being passionate for the jobs or business is significant for the individuals to meet the
success of new heights (Çolakoğlu and Gözükara, 2016). Natasha was very passionate and has
keen interest in her field of jewellery making and due to her love for jewellery has given her
success at such small age.
 Vision: An effective vision brings the individual different from other managers. Natasha Faith is
having the capabilities to move towards the traditional ideas and patterns of making the jewellery
and really this potential goes behind pushing the individual for the power and solutions to face
any type of challenges.
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 Collaborative working: Entrepreneurs in any case should have the ability to do the collaborative
team or partnership working to enjoy the benefits of it and get success. Natasha also believes in
partnership working as she is partnered in the jewellery making business.
Richard Branson (Global entrepreneur)
Introduction
This person is also native from London and is presently the chief executive officer of Virgin Group
which is conglomerate that involves Virgin Mobile, Virgin Megastores and Virgin Airways. He is
popular for his eccentric personality and exuberant due to his extravagant wealth (The Top 10 UK
Entrepreneurs, 2014). Richard is also considered as philanthropist as he donated dollars in millions to
the several charitable organizations and also for environmental causes also.
Traits and characteristics
 Determination: Branson is very determined for his love to be the entrepreneur at least once at
time from childhood. It clearly shows that he has strong skills of determination. Determination
comes only when the individual has skills and capabilities for exploring the knowledge.
 Creative: On the top most priority, Richard is very creative and innovative in his ideas and due
to this organization like Virgin Group has been created and recognised worldwide.
 Money management skills: After big profits in the Virgin Group, the CEO has the skills to invest
the funds in the most appropriate manner. The investment can be seen in the form of music label
and airlines of Virgin Group accordingly.
 Focussed: Focus on one task is very important for the individual so as to plan and pursue the
business ideas (Bird, 2019). In his 16 years of age, Richard Branson has printed his own
magazine called as student that reflects his dream was focus on one idea only.
Similarities in both entrepreneurs
Education: Both the entrepreneurs are not much educated and both believe that primary education is
important but more practical knowledge is needed to be an entrepreneur successfully. Branson was more
interested in extracurricular activities like cricket and football. Natasha also pursues for career business
and not interested in university education.
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Family background: Richard was from qualified family as his father was barrister and his mother was
flight attendant that shows that they have decent family status. On the other side, Natasha is also from
good family background as they were very supportive in the business and even advice her to move
slowly on the global scale.
Skills: Both the entrepreneurs were highly skilful towards their goals of achievement of becoming
entrepreneur. Both were passionate for their respective field (Carsrud et.al. 2017). Natasha was very
creative and innovative that explores her learning towards jewellery making. While, Richard Branson is
also very innovative as he has given various ideas to expand their Virgin brand across the world.
Hence, it can be said that, both the entrepreneurs has some differences and few of similarities. The
difference in age, income, culture and traits and characteristics mentioned were seen. The similarities
were seen in education thought, family background support and few common skills.
P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and mind-set
From the above points, it can be reflected that there are various virtues that determines successful
entrepreneur’s personalities that are given here under:-
Conscientiousness: It is been studied that there should be mindset in the individual to be successive and
cooperative in working terms. It is due to the suspicion thought as hopeless behavior is not success
point.
Agreeableness: It is the thought feeling of emotional sense and cooperation of supports makes the
individual outstanding personality for being towards the successful path of entrepreneur (Werthes et.al.
2018). However, it is necessary to be presented in the nature to move towards the objective.
Extraversion: When the person takes the initiative for setting up the business, they should be having
understanding on the risk involved in it and in all these case energy range should be at most. But in this
case, the motivation level and positive thoughts shall be very important.
Openness: In the individual personality the openness shall always be there for the new creative ideas
together with the involvement of risk is significant. This skill is also very significant in possession for
getting success.
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Neuroticism: Individual personality is reflected in decision making as they have confidence in giving
their business idea in more appropriate manner (Burns, 2016). In respect of being successful, it is
important to give the strong confidence presence.
M3 Explore and examine different arguments relating to entrepreneurial
characteristics
It is very severe arguments to be given that whether entrepreneurs are born by birth or made. There are
several factors that impact the activities of the entrepreneur that involve mindset and individual
background. In those consequences, if the entrepreneur is assisted with the sound family position it can
support in more positive way and they will not face any complexities in achieving the dreams. Few of
the entrepreneurs have emotional and physical assistance of good educational background. These types
of individuals are actually born as there might be genes that come to them from their family. (Kuratko,
2016)
On the others side, educational subject has been included through giving correct guidance in lectures
form and highly qualified education also help in supporting evidence for entrepreneurs are made. Hence,
family, relatives and friends are motivation drivers that support the individual to achieve their dreams.
Moreover, the trait and character gift from god are basically born that supports in meeting the objectives
without any obstacles.
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LO 4
P7 Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship
Entrepreneurship is the outcome of combination of risk taking, motivation, determination, time
management and money management so that it can be seen as prerequisites to be entrepreneur
successful irrespective of the qualities. The social and cultural environment is also impacted the
individual in positive and negative way. The below presented are the factors that positively and
negatively influence the entrepreneurship:-
Family: The individual family background and the thoughts are supportive and cannot be avoided in any
case. The reason is family push their child for the respected jobs or businesses for excel their business
ideas. So, the individual family shall provide determination to reach their dreams without any
restrictions. For example: Natasha Faith family was very supportive to excel her interest in jewellery
making at just age of 21 made her successful.
Education: It is important determinant areas for any segment in respect of success or failure as it offers
the concepts and knowledge related to everything so that it can either encourage the individual or de-
motivate the individual as per quality and efficiency (Sandirasegarane et.al. 2016). For example: Richard
Branson was not good in academic education and if he was bright student he would achieved fast
success. However, he was suffering from dyslexia. It can be said that knowledge and concepts are
necessary in boost the quality of entrepreneur.
Experience: Individual does not be the successful entrepreneur only through learning from schools and
relevant universities. There is need of having the experience related to the business which he or she
wants to expand. The experience they can get from working in some business house or through family as
it will push the individual confidence and therefore experience factor has significant role to impact the
entrepreneurship in positive or negative manner.
Nationality: The policies of the government related to advances or loans for startups can also influence
the business. The finance policy of the country related is also significant for loan availability and
subsidies motivates the new entrepreneur for developing and presenting the business idea. Irrespective
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of human resource presence in respect of monetary and non monetary issues can place the positive or
negative influence on entrepreneur ideas (Dunne, 2017). For example: Natasha Faith is also motivated
for her business in jewellery making as she gets the funds from Prince’s Trust as very nominal rate of
interest.
Hence, from the above points, it can be said that entrepreneurs education, family background,
experience and nationality also has significant impact on fostering or hurdle for being successful in the
real competitive world.
M4 Analyze the link between entrepreneurial characteristics and the influence of personal background
and experience to specific successful entrepreneurs
Entrepreneur characteristic are basically influenced through background and experience. Having
experience through personal and professional way in positive way will enable in carrying out the present
task in the most effective way at the workplace. Applying recent and old experience with present
knowledge can support in earning the profits and productivity at workplace. The features and
characteristics will allow the individual to use the learning in present performance (Burns, 2016).
On other side, the background will influence the individual professional and personal development. Few
of the individual’s face less support from family in terms of finance and emotional assistance. Here the
individual will fight with various obstacles to achieve the dreams. It is important to have motivation in
individual that supports in meeting more advantages for the future. The positive behavior in the
individual’s will also accomplish the newer ideas and also positive results as well.
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Conclusion
From the whole study, it can be concluded that entrepreneurs has important role in the business and
economy of the nation. There are different entrepreneurs such as social enterprise, local entrepreneur
and global entrepreneur that work on their scope to get the success for their new startups. There are
several similarities and dissimilarities in the local and global entrepreneurs due to various situational
factors, skills and capabilities, education and family background. The common traits and characteristics
are the key success of being successful entrepreneur presented in report. The role of experience and
family background had shown importance for the prosperity of entrepreneurship. Moreover, in the
whole study, the two examples had been taken one from local and one from global such as Natasha Faith
and Richard Branson.
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References
Books and Journals
 Bird, B., 2019. Toward a theory of entrepreneurial competency. In Seminal Ideas for the Next
Twenty-Five Years of Advances (pp. 115-131). Emerald Publishing Limited.
 Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
 Carsrud, A., Brännback, M., Elfving, J. and Brandt, K., 2017. Motivations: The entrepreneurial
mind and behavior. In Revisiting the Entrepreneurial Mind (pp. 185-209). Springer, Cham.
 Çolakoğlu, N. and Gözükara, İ., 2016. A comparison study on personality traits based on the
attitudes of university students toward entrepreneurship. Procedia-Social and Behavioral
Sciences, 229, pp.133-140.
 Dunne, C., 2017. Can intercultural experiences foster creativity? The relevance, theory and
evidence. Journal of Intercultural Studies, 38(2), pp.189-212.
 Kuratko, D.F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
 Malecki, E.J., 2018. Entrepreneurship and entrepreneurial ecosystems. Geography
Compass, 12(3), p.e12359.
 Sandirasegarane, S., Sutermaster, S., Gill, A., Volz, J. and Mehta, K., 2016. Driven
entrepreneurial education in vocational schools. International journal for research in vocational
education and training, 3(2), pp.106-126.
 Vanevenhoven, J. and Drago, W.A., 2015. The structure and scope of entrepreneurship programs
in higher education around the world. In Entrepreneurial Learning (pp. 117-133). Routledge.
 Werthes, D., Mauer, R. and Brettel, M., 2018. Cultural and creative entrepreneurs: understanding
the role of entrepreneurial identity. International Journal of Entrepreneurial Behavior &
Research, 24(1), pp.290-314.
Online
 Guardian Series, 2019 (Online Article) [Accessed Through] < https://www.guardian-
series.co.uk/news/4666599.walthamstow-young-jewellery-designers-find-fame/ > [Accessed on
13th June, 2019]
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