Entrepreneurship Report: SME Impact, Entrepreneurial Traits and Types

This report provides a comprehensive overview of entrepreneurship, covering various types of entrepreneurial ventures such as small business, scalable business, large company, social, serial, and female entrepreneurship. It examines the similarities and differences between different venture types. The report further explores the impact of small and micro businesses on the economy, including their contributions to rural areas, employment opportunities, and foreign direct investment. It also discusses the role of small businesses and startups in economic growth and development, referencing the impact of Brexit. The report analyzes the traits and characteristics of successful entrepreneurs, using Jeff Bezos and Mark Zuckerberg as examples, highlighting their innovative skills, risk-taking abilities, and realistic approach. The report also addresses how experience and background can foster or hinder entrepreneurship. Overall, the report offers valuable insights into the multifaceted nature of entrepreneurship and its significance in the business world.

ENTREPRENURSHIP

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types of entrepreneurial venture and their relation with entrepreneurship
typology..................................................................................................................................1
P2 Similarities and Difference between entrepreneurial venture...........................................2
TASK 2 ...........................................................................................................................................4
P3 Impact of small-business and micro the economy............................................................4
P4 How small-business and start-ups contributes in the growth and development of an
economy.................................................................................................................................5
TASK 3............................................................................................................................................6
P5 Traits and Characteristics of successful entrepreneurs.....................................................6
P6 State how entrepreneurial personality reflect mind-set and entrepreneurial motivation. .7
TASK 4............................................................................................................................................8
P7 Explain how experience and background can foster or hinder entrepreneurship.............8
CONCLUSION ...............................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
The term “Entrepreneurship” refers to the process of designing and running a new
business venture in the market and the one who solely runs such type of venture are known as
“Entrepreneurs”. They are also viewed as Innovator or a source of new idea or product
development (Abu-Saifan, 2012). They are the one who covert economic resources of low
productivity into higher resources so as to generate more profits and revenue on them. With their
unique skills and knowledge they effectively anticipate both current and future needs and brings
new idea in the market. This report talks about different types of entrepreneurial venture, impact
of SME on economy, traits and characteristics of successful entrepreneur, difference and
similarities between different business venture and lastly it covers the contribution of
entrepreneur in development of an economy.
TASK 1
P1 Different types of entrepreneurial venture and their relation with entrepreneurship typology
Entrepreneurial Venture can be described as a business enterprise that places
opportunism and innovation at its heart so as to produce social and economic value. Such types
of entrepreneur are creative and innovation driven and are always ready to take business
challenge. They possess the ability to adapt change in an effective and efficient manner.

Entrepreneurship can not be defined by a single term. There are various other types of
entrepreneurship as well which are briefly defined below:
Small Business Entrepreneurship: Today, the large number of start-ups and entrepreneur in
UK are still small business. They are the one who runs, owned and manage their business solely.
They usually hire their family member or local employees so as to carry out their business
activities in an effective manner. Their main purpose is to feed their family and make profit for
their survival. Such types of venture are barely for profit-making. Some of the example of small
business are Grocery store, travel agent, hair dresser, electrician, plumber, carpenter etc. As they
are unable to attract large investors, therefore they acquire fund from their family or friends.
Scalable Business Entrepreneurship: These are the entrepreneur who knows that one day their
vision could change the entire world. Successful entrepreneurs such as Mark Zuckerberg, Jeff
Bezos comes under this. They are the risk taker and highly innovative (Barringer, 2012). They
knows that they possess the capabilities of attracting investors who invest large amount of fund
in their idea. Their main focus is on rapid expansion.
Large Company Entrepreneurship: Such types of companies are having finite life cycle. They
keep on experimenting with their product as per the customer requirement or taste which
ultimately leads to improve their competitive position (Baum, Frese and Baron, 2014). Such type
of venture evolve around new technologies, customer needs and market competitors creates drive
for disruptive innovation. Existing enterprises is doing this either by innovating their product or
trying to build disruptive product.
Social Entrepreneurship: Such type of entrepreneur are innovator who aims at making society
a better place to live. In simple words, they focus on developing those product and services that
deals with social problem and needs in an effective manner. They are often considered as the
change agent of today's era who tries to bring radical change on society and its people.
Serial Entrepreneurship: These are the one who came up with creative and innovative ideas in
order to start a new business venture. Unlike other typical entrepreneurs, they often came up with
new innovative business idea and get the things started but after that they transfer entire
responsibility on someone else and again focus on creating new idea.
Female Entrepreneurship: Under this entrepreneurship, business venture is owned, run and
managed by female entrepreneurs. Just like male, female carry out all business activities in an
appropriate manner. It is primarily based on women participation in employment and equity of a

business enterprise (Dacin, Dacin and Tracey, 2011). Some of the example of female
entrepreneur are Sara Blakely, Wendy Kopp etc.
P2 Similarities and Difference between entrepreneurial venture
Lifestyle ventures or
businesses
Serial entrepreneurs ventures
Similarities  They place their
passion or dream
before profit. They
focus on converting
their ideas into reality.
 They choose a business
model that is intended
to expand and grow for
longer duration.
 They do not answer
investors about how
their venture is growing
or developing.
 Lifestyle entrepreneurs
can only give their
valuable time to
charitable trust.
 They focus on life-
goals and wants to
spend most of their
time with their family.
Difference  They are the one who
starts business venture
with their unique and
creative idea.
 With their innovative
skills, they develop
business model which
gives them benefit for
longer run.
 Serial entrepreneurs
needs to answer their
investor regarding
where they tare
utilizing or investing
their money.
 They can give massive
donation in charitable
trust.
 They focus on
organizational goals.

Female Entrepreneur Male Entrepreneur
Similarities  Their main purpose is
to maximise their
revenues and earn
goodwill.
 They are creative and
innovative
 Their main objective is
to earn profit and gain
high competitive edge.
 Like female
entrepreneurs, they are
also creative in terms
of formulating new
strategies and policies.
Differences  They found difficulty
in taking decision.
 They are more
conservative in terms
of financial risk
 Focus on establishing
goo relationship with
personnel.
 They can take decision
very easily and quickly.
 They are always ready
to take financial risk.
 They focus on
achieving their goals.
TASK 2
P3 Impact of small-business and micro the economy
Business can be classified as micro, small and medium size which are in detailed
described below:
Micro: Such type of business is run and owned by a single person with an aim of fulfilling the
desire and needs of their family members (Drucker, 2014). These are mainly run by the Sole-
Proprietor. Such business form requires less capital and their organisation structure is flexible as
number of employed personnel are very less in number.
Small: Such type of business enterprise mainly operate in local economies. These are managed
and operated either by single person or by partnership. These type of business runs with an
objective of making profit and capturing higher market share. Under this firm, 15 to 50
employees work who examine the needs and wants of target audience in an effective manner.

Such type of business form include small grocery store, bakeries, restaurants, carpenters,
electricians etc. Usually it become difficult for one person to solely conduct all these operation.
Therefore small-businesses are mainly operated by two or more people.
Medium: Such type of businesses run with an aim of maximising its profit and revenues and
gain higher competitive advantage in the market over their rivals. They are carrying out their
operation on vast level as compared to small and micro business. Around 300-500 employees
works under them. Medium size business is usually run by partners. The profit and loss is shared
equally by all partners (George and Bock, 2011).
Discussed below are some of the economy areas that is mainly affected by these business
venture:
 Rural Area: SME's provide large number of job opportunities to rural people. They
employ rural people with an aim of enhancing their skill and knowledge.
 Employment Opportunities: In UK, most of the businesses are still small-business and
start-ups which means they are providing large number of opportunities to people. In
addition to that they are also provide training to them which lead to enhance their skills
and efficiency in an effectual manner.
 Foreign Direct Investment: Home country invites host country so that they can run their
business in their country which ultimately promotes higher job opportunities and improve
the economic condition of the nation (Grimaldi and et. al., 2011).
P4 How small-business and start-ups contributes in the growth and development of an economy
Brexit: It is an abbreviation for “British Exit”. Under this UK's decides to leave European Union.
UK joined the European Union (EU) in 1973 which means that after 43 years UK feels to take
exist from EU. However, Till today Brexit has not happened but it will happen in future.
However its impact will be severe on both UK and EU residents. But on the contrary, almost
51% of UK population support Brexit. For example: Brexit adversely impact the tourism
industry as post Brexit visa process get more complexed or complicated. Earlier people used to
get one visa for travelling in entire UK and EU but now they have to take separate VISA for
different destination which ultimately makes them to think whether to travel in country or not
(Kuratko, 2016). As a result, economic condition and profitability of the nation decreases. In

addition to that it brings political instability in the country as they whole economical market is
being affected due to social and economical factors.
Difference between Small-business and Start-Ups
Small-business Start-Ups
 Small-Business growth is limited.
 Small-Business exist in the market
without raising fund from external
investors. They usually arrange funding
from their family members or friends.
 They render traditional goods and
services
 Start-ups focus on the growth.
 They external investors for funding so
that they can carry out their business
operation in an effective manner.
 They are often disruptive
TASK 3
P5 Traits and Characteristics of successful entrepreneurs
Two Chosen successful entrepreneurs is Jeff Bezos and Mark Zuckerberg whose skills and traits
are mentioned below:
Jeff Bezos: He started his journey from a garage and then turned it to world's leading online
website for shopping popularly known as Amazon. His skills and qualities made him the king of
Internet (Martin, McNally and Kay, 2013). His name is listed in the list of richest man of the
planet with a net worth of US $ 106 billion. Following are the list of their traits that makes him
the man he is today:
1. Knack for Innovation: From his childhood days he gained popularity for his innovation.
He develops sound alarm so to guard his room from their annoying sibling. His hunger
for creating something new escalated with passage of time. Initially he designed Amazon
to render book to the potential customer. His innovative trait encourages him to develop a
online portal that supply each and everything that an individual wants. He also gained
portal for developing E-Book device known as Kindle so to compete with Apple I-Pad.
2. Risk Taker: He quits his sound job only because of fulfilling his dream or passion which
makes him the risk-taker. He starts his business with no money. The only investor he has
was his parents and their little saving. He knew that there are chances of failure of his

business but he still take the risk and launch his website and now his name falls under the
list of Word's Richest Man
3. Hardcore Realist: He is having the trait of most crucial personality that makes him
successful entrepreneur. He is a realistic man who figures out all the probabilities and
possibilities. He was aware of the fact that there are certain chances that its venture might
get fail or does not acceptable by the customer. His habit of acknowledging all adverse
effects and take appropriate decision on their assessment.
Mark Zuckerberg: At the age of 24 he already becomes a billionaire which is not possible for
everyone. He is the one who brings change in the era of social networking by developing
Facebook (Naudé, 2014) He is undoubtedly a motivational role model for the future generation
of successful entrepreneurs. Following are the list of his successful traits and characteristics:
1. Zeal to make Ideas into Reality: His passion towards his ambition and work makes him
the man he is today. He transform his ideal into reality with his confidence and strong
determination. He sensed lack of connectivity in the society which led him to design
Facebook and connect the world and their people in an effective manner.
2. Do business for higher purpose: He believes that each individual must have some
purpose in their life, if they want to succeed and do something good (Santos, 2012). From
the starting time, his entire focus is on one vision i.e. connecting the citizen of society in
an innovative manner. By sticking to its purpose he designed Facebook which is not just
a social networking site but it also connects long-lost family members and friends.
3. Believe in product and team: He believes that one person solely cannot build an entire
empire so its even better when one knows how to establish great relationship with the
right people. In-fact he hires only those people whose vision matches with their vision.
Their each team member is require to compliment each other's goals and objective.
P6 State how entrepreneurial personality reflect mind-set and entrepreneurial motivation
Every Individual is having its own unique personality which aid in achieving their goal or
dream in an effective manner. His personality and traits makes him successful. From the above
question we can state that how Jeff Bezos with his risk taker and innovative skill makes him
successful entrepreneur. His desire for trying something new makes him the world richest man.
He left his sound job because he want to follow his dream or passion. This shows that how much
he is passionate towards his accomplishing his dreams.

On the other hand, Mark Zuckerberg is man who believes in converting idea into reality.
He become billionaire at the age of 24 which automatically states that how he is dedicated
towards his dream. Both entrepreneurs are having their own personality which makes him
distinct from each other.
OCEAN MODEL: The “Big Five” are referred as broad categories of personality traits. This is
also known as Five Factor Model. This model describes various aspects of personality that
depicts how a person is. Five factor mainly include openness to experience, conscientiousness,
extraversion, agreeableness and neuroticism (Storey, 2016). Personality traits have become the
essential part of individual's life which denotes their behaviour towards particular situation.
Below mentioned are the detailed description of all these five factors:
Openness to Experience: Openness shows how much a person is creative or adventure. It can
also be defined as the extent to which an individual is creative or imaginative. This means he
possess the quality of dealing with different situation in an innovative manner. High Openness
means they are risk taker rather than predicting situation. On the contrary, person with low
openness means they accomplish their goal with determination (Welter, 2011). They do not take
the risk of doing something new or creative.
Conscientiousness: This covers the aspect of act dutifully, organized and dependable behaviour.
It means that person prefer to achieve their objective in a planned manner rather than being
spontaneous. High Conscientiousness means individual is perceived as stubbornness whereas
Low Conscientiousness means person is flexible and spontaneous.
Extraversion: This includes factors such as positive emotion, sociability, energy, assertiveness,
positive emotion and tendency to get motivated in the company of other person falls under this.
High Extraversion depicts the person is attention seeker whereas Low Extraversion denotes that
the person is reserved. Extrovert people wants to come in the eyes of everyone and makes
themselves feel important among others.
Agreeableness: This factors deals with the tendency of a person to be co-operative and
compassionate among others. This also measure person's helping nature and how others can
blindly rely or trust on him. High Agreeableness means person is submissive or naïve. On the
contrary, low agreeableness means person is more challenging and competing.
Neuroticism: This factors talks about the tendency of people in term of dealing with unpleasant
emotion such as depression, anxiety, vulnerability, anger etc. It states the degree of emotional

stability and impulse control on unpleasant situation. High rate of neuroticism denotes person
remain calm and stable while dealing with unpleasant situation.
TASK 4
P7 Explain how experience and background can foster or hinder entrepreneurship
Jeff Bezos: American entrepreneur Jeff Bezos is the chief executive officer and founder of
Amazon.com. His successful business venture makes him the man he his today and made him
fall in the list of world's richest people. From his childhood days he loves playing with computer
and then studied computer science at Princeton University (Wiklund and et. al., 2011). In 1990,
he became the youngest vice president of D.E Shaw. Four years later, he quit his sound job
because he wanted to follow his dream. He design Amazon.com that is a virtual book-store
provides online books to ample customer.
Initially he set up his office in his garage because of low investment. He sold his books in
more than 45 countries with no press promotion. In 1998 he expand his online website by
offering products like clothes, electronics, toys, CDs etc. From then, his success journey takes
another major turn and makes him the world richest man who once start this business with very
little funding. In 2007 he designed Kindle so to give tough competition to Apple-Ipad. At present
Amazon.com comes in the list of world's leading online shopping website where customer is able
to get anything which he/she desire or thinks of.
Mark Zuckerberg: He is an American entrepreneur and computer programmer. He is the
founder and chairman of Facebook. He was born in 1984 into a well educated family. From his
childhood days he developed an interest in computer programming (Wilson, 2015).
At the age of 12, he developed messaging program for inter-office communication
system which he named Zucknet. After dropping out from college he realised that lack of
connectivity is their in society. So he decided to create a platform or a website which connect
long-last friends or family members. As a result, he designed Facebook and become the youngest
successful entrepreneur.
CONCLUSION
According to the above mentioned report, it can be concluded that success and growth of
any organization rely on how innovative and creative is their entrepreneur is. Skills and

characteristic of each entrepreneur is distinguish from one another. Different types of business
venture contributes significantly in increasing the GDP of the country. SME's are providing
ample job opportunities to rural people which ultimately gives them the platform to show how
talented they are. The success journey of all successful entrepreneurs is not same, the only thing
that is identical is their believe in their passion or dream.