Analysis of Entrepreneurship and Small Business Management Report

This report delves into the core concepts of entrepreneurship and small business management, examining the key differences between entrepreneurs and managers based on their characteristics, skills, and traits. It explores the aspects of entrepreneurial personality that reflect motivation and mindset, elaborating on various entrepreneurial characteristics and the motivational drivers of successful entrepreneurs. The report further investigates how background and experience can either hinder or foster entrepreneurship, analyzing the link between entrepreneurial characteristics and the influence of background, both positively and negatively. The findings highlight the importance of specific qualities for entrepreneurs, such as confidence, credibility, risk-taking ability, passion, and opportunity-seeking behavior, and how background can provide knowledge, skills, and experience. The conclusion emphasizes the rising trend of entrepreneurship in the UK economy and its positive impact on the economy and society.

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
ASSESSMENT 1.............................................................................................................................3
ASSESSMENT 2.............................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Difference between Entrepreneur and manager on the basis of: characteristics, skills and
traits:............................................................................................................................................3
1.2 Aspects of entrepreneurial personality reflect entrepreneurial motivation and mind-set:....4
1.3 Elaborating different entrepreneurial characteristics:...........................................................4
1.4 Characteristic, traits, skills and motivational drivers of successful entrepreneurs:..............4
TASK 2 ...........................................................................................................................................5
1.1 Background and experience can hinder or foster entrepreneurship:.....................................5
1.2 Link between entrepreneurial characteristics and influence of background:........................6
1.3 Background and experience influence entrepreneurs: Positively and negatively:................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Today market is offering limitless opportunities to the people. It depends on the person
entrepreneurial skills to identify an opportunity and grab it on right time (Drucker, 2014). This is
a ongoing trend to start an entrepreneurial venture. It depends on the person ability to develop an
idea into a profit making venture. An entrepreneur is someone who is always ready to take risk in
order to gain high profits. Entrepreneurship definitions have changed with time. Today
entrepreneurship is not just related to profit earning, it is also helping to eradicate the problems
and issues in the society.
ASSESSMENT 1
(Covered in ppt)
ASSESSMENT 2
TASK 1
1.1 Difference between Entrepreneur and manager on the basis of: characteristics, skills and
traits:
An entrepreneur is a person who have better skills in identifying opportunities available
in market for earning profits, while manager is the one who works for an entrepreneur (Kirzner,
2015). Different characteristic of entrepreneur are:
 High level of Confidence: An entrepreneur have high level of confidence which leads to
better decision making.
 Risk taking: He is an risk taker. He is ready to take high level of risk for earning better
profits.
 Craves learning: An entrepreneur is a learner. He keeps on learning in order to raise the
level of knowledge he have.
 Accepts failures: He is always ready to accept failure as he believes every failure is a
learning.
 Passionate: Entrepreneur loves what he do. That is the reason he is taking so much risk.
 Adaptable: He adapts to the environmental changes occurring around him in order to
gain more.

1.2 Aspects of entrepreneurial personality reflect entrepreneurial motivation and mind-set:
Personality development helps an entrepreneur in grooming his skills and personality. He
is able to identify different aspects of his personality which he has to strengthen to improve
(Barringer, 2012). It helps in :
 Reduction in stress and conflict: It helps in reducing stress and conflict inside the mind of
entrepreneur. It result in better productivity.
 Encourages positive attitude in life: It changes the entrepreneur approach towards life to a
positive way. It helps in realising his life goals.
 Helps in inculcate positive qualities: Positive qualities like punctuality, learning ability,
flexibility and attitude are improved.
 Increases confidence: Personality inculcates confidence. Hence it helps in knowing the
right things and decision which are needed to be taken on right time.
 Credibility: Personality enhances credibility of the entrepreneur. It helps in building
better market image.
1.3 Elaborating different entrepreneurial characteristics:
Entrepreneurs share different sets of qualities, meaning every entrepreneur have different
set of skills and characteristics which differentiate them from others. Entrepreneurs are the
people who are always ready to take risk in order to increase the profit making of their company
(Bosma and Levie,2010). They showcase variety of skills which allows them in achieving the
right objectives and goals. Entrepreneurs show confidence and stability while taking decisions.
They do not bow down to the challenges instead they show their abilities of facing them. They
have a quality of identifying the opportunity which still untapped by other entrepreneurs and
enterprises. They utilise these opportunities and with their skills and abilities turn them into a
profitable activity.
1.4 Characteristic, traits, skills and motivational drivers of successful entrepreneurs:
There are specific qualities needed to become entrepreneur. These qualities differentiate
them from the crowd (Welter, 2011). These qualities make an entrepreneur very special as he is
able to change a idea into an profitable activity. Today, there are many courses and assistance ran
by the government and its agencies. These courses enhance the qualities of the entrepreneur.
 Confidence: He have high level of confidence while taking decisions. His confidence
levels is what defines him as it provides him the ability to take quick decisions.

 Credibility: He proves his credibility by delivering performance. This builds his image
in the market.
 Risk taker: Entrepreneur is always ready to take risk if he knows that the returns are
high (Morris, Kuratko and Covin,2010). The entrepreneur is the person who is always
ready to take risk in order to gain high profits.
 Passionate: Entrepreneur is passionate about his work that is why he dedicates himself to
the job. His passion towards his work is what differentiates him from everyone.
 Opportunity seeker: He have a special ability to identify opportunity which can in
return give high profits. Any opportunity present in the market are identified by the
person who have entrepreneurial skills.
TASK 2
1.1 Background and experience can hinder or foster entrepreneurship:
A person background and experience actually hinders and foster the skills and traits of
entrepreneur. Such as- a person who took birth in a well established business family learns about
the traits and skills from his family members (Storey and Greene, 2010). These traits help
person in building up his business. He learns to
1. Control: It is very important for an entrepreneur to learn about how to control the
organisation and all the environmental factors.
 Express: Expressing about the idea perceived so that it can be further pushed into
developmental stage.
 Administer: Administer an organisation and its management to get high productivity with
maximum efficiency.
 Compete: Compete in the environment which is very dynamic in nature. There are many
competitors in market and entrepreneur have to make adjustments in order to compete
with them.
 Manage work schedule: He have to manage his own and his subordinates work schedule
in order to derive maximum output.
1.2 Link between entrepreneurial characteristics and influence of background:
Characteristics of an entrepreneur have an influence from his background and his past
experience. If a person was working as an employee in a textile company then he will know

about the textile industry movement and working. It will help him in enhancing his
understanding about how he can develop his own organisations (Dacin and Matear, 2010). The
person also learns about the potential of market which is very necessary for the entrepreneurial
activity. For boosting entrepreneurial activity background of a person matters, if he belongs to a
entrepreneur family then he will be able to learn about the needed traits at his own home. As the
environment changes to support the entrepreneur activities. Usually, people who have high
working experience perform well in changing their idea into a profitable activity.
1.3 Background and experience influence entrepreneurs: Positively and negatively:
There are various positive and negative impacts on the entrepreneurs because of their
background and experience. The entrepreneur is someone who lives in the middle of the
population and still he is different because of his ability to tackle situations and earn profits
(Oosterbeek, Van Praag and Ijsselstein, 2010). Better environment results in better
entrepreneurial personality development while negative environment results in bad personality
development. The entrepreneur has to keep improving his skills and abilities. His background
and experience have certain impact:
Positive:
 Ability to learn new things
 Enhances problem solving skills
 Increases opportunity identification skills
 enhances Management skills
Negative:
 Brings demotivation
 Decreases ability of entrepreneur
 Wastage of resources
 Opportunity loss
These are some of the impacts which happens due to the influence of entrepreneur
background. The background gives knowledge, skills and experience (George and Bock, 2011).
If the background has been positive then the person will have more enhanced entrepreneurial
qualities.

CONCLUSION
Entrepreneurial activities has seen a high rise in the UK economy. The rise in small business and
start-ups has boosted the standard of living as well as economy as a whole. These small business
add much more to the economy of the world. Today the world needs more entrepreneurial
movement as to boost the economic activities and provide more employment to the people. The
rise in entrepreneurship has helped the society to improve in terms of unemployment and
poverty.

REFERENCES
Book and Journals
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Kirzner, I.M., 2015. Competition and entrepreneurship. University of Chicago press.
Barringer, B., 2012. Entrepreneurship: Successfully Launching New Ventures, (2012).
Bosma, N. and Levie, J., 2010. Global entrepreneurship monitor: 2009 global report.
Welter, F., 2011. Contextualizing entrepreneurship—conceptual challenges and ways forward.
Entrepreneurship Theory and Practice, 35(1), pp.165-184.
Morris, M.H., Kuratko, D.F. and Covin, J.G., 2010. Corporate entrepreneurship & innovation.
Cengage Learning.
Storey, D.J. and Greene, F.J., 2010. Small business and entrepreneurship. Financial
Times/Prentice Hall.
Dacin, P.A., Dacin, M.T. and Matear, M., 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.
Oosterbeek, H., Van Praag, M. and Ijsselstein, A., 2010. The impact of entrepreneurship
education on entrepreneurship skills and motivation. European economic review, 54(3),
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George, G. and Bock, A.J., 2011. The business model in practice and its implications for
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Karlan, D. and Valdivia, M., 2011. Teaching entrepreneurship: Impact of business training on
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pp.510-527.
Santos, F.M., 2012. A positive theory of social entrepreneurship. Journal of business ethics,
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Light, P.C., 2011. The search for social entrepreneurship. Strategic Direction, 27(6).
Delgado, M., Porter, M.E. and Stern, S., 2010. Clusters and entrepreneurship. Journal of
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Jones, M.V., Coviello, N. and Tang, Y.K., 2011. International entrepreneurship research (1989–
2009): a domain ontology and thematic analysis. Journal of business venturing, 26(6),
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Agarwal, R., Audretsch, D. and Sarkar, M.B., 2010. Knowledge spillovers and strategic
entrepreneurship. Strategic Entrepreneurship Journal, 4(4), pp.271-283.
Von Graevenitz, G., Harhoff, D. and Weber, R., 2010. The effects of entrepreneurship education.
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