ENTREPRENEURSHIP AND SMALL BUSINESS DEVELOPMENT Report Analysis

This report provides a comprehensive analysis of entrepreneurship and small business development, beginning with a comparison of entrepreneurs and managers, highlighting their distinct roles and focuses. It then delves into the essential characteristics and skills required for entrepreneurial success, emphasizing ambition, willingness to learn, and creativity. The report further examines the Big-5 model and its application to the entrepreneurial personality, using Steph Croft-Simon as a case study, and correlates entrepreneurial traits with Maslow's hierarchy of needs. Additionally, the report analyzes various factors that can either foster or hinder entrepreneurial success, including education, economic factors, and demographic influences. Finally, it explores how background and experience shape entrepreneurial endeavors, acknowledging both positive and negative impacts, and concludes with an overview of the key findings.

ENTREPRENEURSHIP
AND SMALL BUSINESS
DEVELOPMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
Task 3...............................................................................................................................................3
1) Difference between entrepreneur and a manager....................................................................3
2) Entrepreneurial characteristics and skills in order to achieve success....................................4
3) Big-5 Model and analysis of Croft-Simon’s entrepreneurial personality................................4
4) Maslow’s Pyramid and correlation between entrepreneurial characteristics and success.......5
5) Analysis of other factors that can foster or hinder entrepreneurial success............................6
6) Influence of background and experience on entrepreneurs.....................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
1

INTRODUCTION
Entrepreneurship is the quality or the way to set up the business by analyzing the
different risks and market trends and run and grow the business according to these criteria to
generate the better revenue in the future (Smallbone and Welter, 2008). Entrepreneurs need the
better leadership and management skills to be in the competition with the existing business in the
market. This this report, the discussion is all about the difference between the entrepreneurs and
the managers and the characteristics of the entrepreneur to achieve the success and the analysis
of the Croft-Simon’s entrepreneurial personality by the Big-5 model and the correlation in
between the entrepreneurial characteristics by the Maslow's pyramid and the analysis of the
factors that affect the entrepreneurial success and at last the positive and the negative impact on
the experience on entrepreneurs.
Task 3
1) Difference between entrepreneur and a manager
There are various differences between an entrepreneur and a manager but one of the main
difference between them is in their roles in the organization as entrepreneur is the owner of the
company whereas a manager is an employee of the company (Solomon, Weaver, and Fernald,
1994).
Entrepreneur Manager
Entrepreneur majorly focus on vision so that
they can achieve desired goals and profit.
Whereas managers main focus is on the
strategy that they use for better functioning of
the organization.
Entrepreneur is a visionary person who bears
all kinds of financial risks.
Whereas, manager only works for salary and
does not bear any kind of risks associated with
the company.
Entrepreneur mainly focuses on starting and
expanding their business with new ideas.
Managers only focus on daily smooth
functioning of their business.
2

Achievement is one of the main key
motivational factor for entrepreneurs.
Main motivation of managers lies within the
power that comes along with their position.
The only reward of entrepreneurs for all the
efforts they put is profit that they earns from
their enterprise.
Other than the salary that managers draw from
the company, bonus, recognition and many
more are kinds of rewards for the managers.
Entrepreneurs can be both casual and
informal.
Whereas, approach that managers choose for
every problem is quite formal.
Entrepreneurs are mostly risk takers by
nature as they take calculated risks in order to
drive their company further.
Managers are mostly risk averse. Their main
job is to maintain the overall status of the
organization so they cannot afford any kind of
risk (Olomi, 2009).
2) Entrepreneurial characteristics and skills in order to achieve success
There are various characteristics and skills that are required by an entrepreneur to achieve
success such as:
Skills:
 Ambitious- Entrepreneurs should be ambitious in nature. They should focus on
achieving all kinds of milestones so that they can achieve their major goal (Turkmen,
2015). Ambitious entrepreneur works extremely hard to achieve success in their work.
 Willingness to learn- An entrepreneur should always be willing to learn new things so
that they can remain updated with any kind of change or advancement in technology or
evolution in the industry they operate in. Other than this they should not be afraid to ask
for others advice or suggestions.
 Creative: One of the most important and required skill that an entrepreneur should have is
that they should be creative in nature so that they can get better results and identify things
that are best and most suitable for their organization.
Characteristics:
 Believe in themselves: One of the main characteristic that each and every entrepreneur
should have is that they should believe in themselves or they should have an incredible
source of self belief (Li and Matlay, 2006).
3

 Ability to focus on most important things first: Another one of the main characteristics
that each entrepreneur should have is that they should be able to focus on most important
things first i.e. they should have the ability to control their thoughts and actions and be
focused on important things that are in front of them (Vesperi, Reina and Gentile, 2015).
 Open minded: One of the most important characteristics that entrepreneurs should have is
that they should be open minded and should be able to think beyond of what others can
think of.
3) Big-5 Model and analysis of Croft-Simon’s entrepreneurial personality
Steph Croft-Simon is the founder of Nom Foods and that is the first ever organic brand of
UK. Due to her better knowledge and the entrepreneurial qualities makes her great leader. Some
of the qualities are covered by the Big-5 model -
 Openness to Experience
The openness is the first trait that defines the depth of the metal experience. Steph Croft-Simon
with the open minded personality and the innovative ideas makes her the great entrepreneur and
also helpful for the company's growth. The leaders who handle perfectly the openness criteria
creates the better and the new opportunities for the team as well as the organization.
 Conscientiousness
This measures the leader's reliability, sustainability and the dependability. Steph Croft-Simon
better leadership quality focuses on the achieving the goals and makes the plan for the
spontaneous growth. Steph Croft-Simon enhance the efficient and the organized environment for
the company and removes the traits of the company Nom Foods (Thurik and Wennekers, 2004).
 Extraversion
Steph Croft-Simon's positive energy, confidence, and the tendency or the better methodology to
complete the task helps in interacting with the employees, and helps her to make the brand
globally famous makes the team more self confident and the positive.
 Agreeableness
Every leader should have tendency to compassionate the team members. Steph Croft-Simon
methodology of measuring the trust and the honesty of the employees. The Agreeableness of the
Croft-Simon helpful for the her to allow the employees and also it is more important for the the
company to make understandable to the individuals.
4

 Neuroticism
This last trait shows the emotional stability of the leaders. Steph Croft-Simon is good enough to
control the emotions and also she is emotionally stable. The tendency to encourage and inspire
the entrepreneurs makes her the great leader and also the Wellness Guru and the according to
Steph Croft-Simon, her goal is to make the life meaningful.
Steph Croft-Simon achievements in the food industries and the innovative ideas makes her the
great personality and the entrepreneur (Matlay, 2004).
4) Maslow’s Pyramid and correlation between entrepreneurial characteristics and success
There are about five aspects in the hierarchy of the Maslow that are as follows -
 Physiological needs
This is the basic need of the human being. True entrepreneurs sacrifice for the basic needs
required for their passion. Steph Croft-Simon used to sleep in the office each week when the
business is in its massive growth. Steph Croft-Simon consider the physiological needs the least
important. Entrepreneurs push their comfort so that the leaders can give the better life to the
employees as well as the company (Ratten, 2014).
 Safety
Steph Croft-Simon left the comfort and the throw away the safety and the financial securities so
that this cannot be the threat in between her ideas and in the failure. Most the people become the
entrepreneurs because their creativity and the and the lifestyle that is not suitable for the nine to
five job and the passion to do something creative.
 Belonging/Love
Most of the entrepreneurs finds the very less time for their family and to the social life. Steph
Croft-Simon chose her life and started the cut off from all the social belongings to follow her
passion and then drive the business to the next level (Burns, 2016).
 Self-Esteemed and respect
The good entrepreneurial characteristics of any leader makes the team better and sustainable.
Steph Croft-Simon believes in avoiding the stress in the real life. Steph is regularly working on
the business Nom Foods and also working on expanding the supermarkets in the different cities.
This is because of her devotion and the dedication towards the business to drive the business the
success.
5

 Self-actualization
Steph Croft-Simon believes in the self realization to become the successful entrepreneur. The
entrepreneur need to be self esteemed and realized to motivate the team and also enhance the
team growth.
So, the entrepreneurial characteristics and entrepreneurial success are always correlates with
each other to get the success (Bridge and O'Neill, 2012).
5) Analysis of other factors that can foster or hinder entrepreneurial success
Entrepreneurs are always influences by the three major factors i.e., education, economic and
demographic. So, the factors are elaborate as follows -
 Education
The education plays an important role to understand the outside world and to deal with the
challenges of the day to day life and to understand the entrepreneurial values. Steph Croft-Simon
interest toward the cooking is the main reason to start the Nom foods. Steph Croft research in the
organic foods and the ingredients makes her the great entrepreneur and the motivational person
(Robinson, K.L. and Christy, 2004).
 Economic Factors
Economic factors always influence the entrepreneurship qualities. There are several economic
factors that can affect the growth of entrepreneurs i.e., capital, regular change in the market
trends, competition and the expansion of the infrastructure. The expectation of the customers
from the Nom food was not up to the mark but her devotion towards the food makes the Nom
foods better and the all products are satisfying the needs of the consumers.
 Demographic factors
The demographic factors as such as the gender discrimination, marital status, occupation,
religion, family background always affects the organisation growth. Croft-Simon's family
support is very great and the her grandma and the mum is very supportive. The background of
the family is the main source for the industrial entrepreneurship and also influence the mobility
(Thurik, and Wennekers, 2004).
6) Influence of background and experience on entrepreneurs
The background and the experience affects the entrepreneurship in both positive and the negative
manner. Steph Croft-Simon have motivated to set up the business and deal with the different
6

problems in growing herself. The efficient support of her family makes her the great
entrepreneur. There are some of the problems the Nom faced that is Taste – that aren't meeting
the customers need s but the Steph Croft-Simon follows the two tips grow the business-
 Take time every day to do something and can enjoy the opportunity
 Awareness of the thought and the make the them positive
There are some of the positive and the negative aspects that can influence the entrepreneurship
that are explore themselves and also rectify their own problems so that the entrepreneurs
generate the better opportunities for the company as well as for themselves (Li and Matlay,
2006).
The negative impact on the entrepreneurs life are it ruins the social life and also there is
no guarantee of the long term success so it requires the leaders to get success, the stress level and
the competition in the market, the social and the environmental causes is the main factor that can
affect the productivity and the durability.
CONCLUSION
The whole study concluded the difference in between the entrepreneurs and the managers
and the entrepreneurial characteristics of the skills that are essential and required by an
entrepreneur to achieve the success and the analysis of the Croft-Simon’s entrepreneurial
personality according to the Big-5 model and the correlation between entrepreneurial
characteristics and entrepreneurial success related with the Maslow’s Pyramid and the analysis of
the factors that can influence the entrepreneurial success ans at last, the positive and the negative
aspects that influence the entrepreneurial life. Entrepreneurs need the better leadership and
management skills to be in the competition with the existing business in the market.
7

REFERENCES
Books and journals
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: Entrepreneurship and small
business. Macmillan International Higher Education.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Hisrich, R.D. and Drnovsek, M., 2002. Entrepreneurship and small business research–a
European perspective. Journal of small business and enterprise development.9(2).
pp.172-222.
Li, J. and Matlay, H., 2006. Chinese entrepreneurship and small business development: an
overview and research agenda. Journal of small business and enterprise development.
13(2). pp.248-262.
Matlay, H., 2004. E-entrepreneurship and small e-business development: towards a comparative
research agenda. Journal of Small Business and Enterprise Development, 11(3). pp.408-
414.
Olomi, D.R., 2009. African entrepreneurship and small business development: Context and
process.
Ratten, V., 2014. Future research directions for collective entrepreneurship in developing
countries: a small and medium-sized enterprise perspective. International Journal of
Entrepreneurship and Small Business, 22(2). pp.266-274.
Robinson, K.L., Dassie, W. and Christy, R.D., 2004. Entrepreneurship and small business
development as a rural development strategy. Empowering Rural Communities Through
Entrepreneurship, p.3.
Smallbone, D. and Welter, F., 2008. Entrepreneurship and small business development in post-
socialist economies. Routledge.
Solomon, G.T., Weaver, K.M. and Fernald Jr, L.W., 1994. A historical examination of small
business management and entrepreneurship pedagogy. Simulation & Gaming, 25(3).
pp.338-352.
Thurik, R. and Wennekers, S., 2004. Entrepreneurship, small business and economic growth.
Journal of small business and enterprise development, 11(1). pp.140-149.
8