Entrepreneurship Report: Small Business Analysis and Traits

This report delves into the multifaceted world of entrepreneurship, examining various types of entrepreneurial ventures such as survival, lifestyle, and public sector ventures, and their distinct characteristics. It analyzes the UK's small business landscape, providing statistics on employment, business population, and composition, highlighting their significance in driving innovation, generating employment, and fostering opportunities for minorities and women, thereby impacting the standard of living. The report further distinguishes the traits and characteristics of successful entrepreneurs, contrasting them with managers, and explores the background and experiences that nurture entrepreneurial success. This report underscores the critical role of small businesses in economic growth and societal development.

ENTREPRENEURS
AND SMALL
BUSINESS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO 1.................................................................................................................................................3
P1 Types of entrepreneurial ventures in relation to typologies...................................................3
P2 Similar and distinct character between entrepreneurial ventures...........................................4
LO 2.................................................................................................................................................6
P3 Statistics of small business.....................................................................................................6
P4 significance of small business on economy...........................................................................6
LO 3.................................................................................................................................................7
P5 traits and characteristics of successful entrepreneurs different from managers. ...................7
P6 aspects that reflects the entrepreneurial mindset and motivation..........................................9
LO 4.................................................................................................................................................9
P7 background and experiences entrepreneurs that foster entrepreneurship. ............................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................10

INTRODUCTION
Entrepreneur is the person who takes risk to enter in the market with innovative idea.
Small business contribute the significant role in the growth of economy(Badjie, 2019).
McKinsey London is among the top consultancy firms in UK. The company has 50+ years of
experience in the market of London. Through these years the company has build the stronger
legacy that contributed the growth of the company. In this report the study will be based on types
of entrepreneurs and their relation with entrepreneurial typologies. The study will be assessing
the stats of small business on UK economy. The discussion will be based on the importance of
small scale business in the economy of UK. Further the study will discuss the characters and
traits that are present in the entrepreneurs which makes them a successful business personalities.
Last but not least the study will discuss the backgrounds of entrepreneurs and experience which
influence them to become successful entrepreneurs.
MAIN BODY
LO 1
P1 Types of entrepreneurial ventures in relation to typologies.
Entrepreneur: Entrepreneur is the individual who used to take the risk of starting the business
with the innovative and creative idea in the hope of earning the profit.
Entrepreneurship: Entrepreneurship is the process of setting up an enterprise on the basis of the
innovative idea posses by the entrepreneur(Herianingrum, Salleh, and Ratnasari, 2019).
Enterprise: Enterprise is the outcome of the entrepreneurship process, it is the company or
business shows some initiative by taking a risk by setting up, investing in and running business.
Difference between Entrepreneur, Intrapreneur and Manager
Entrepreneur Intrapreneur Manager
Entrepreneur is the one who
used to lead the operation of
the business and also used
to bear the risk of the
business.
Intrapreneur are the employee
of the business they used to
render their services for the
wages from the business.
Manager is the one who used
top manage all the activity of the
business in such a way that the
organizational goal is achieved.
They also used to work on the
wages.
Different type of the Entrepreneurial venture
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Survival Entrepreneur Venture: It is the type of the venture which used to operate with the
sole motive of achieving the financial obligation of the organization. The survival venture
generally used to not take the heavy risk in their operation. Survival entrepreneur venture are the
small scale business. This type of the venture used to grow by adopting the idea which is used by
the other firm and found it successful. Neal's Yard Dairy is the survival entrepreneur
venture(Julien, 2018).
Lifestyle Entrepreneur Venture: It is the venture which is operated by the owner with the sole
motive of altering the personal lifestyle rather than making or earning the profit. Their is a very
limited scope for the growth in the Lifestyle entrepreneur venture as the owner used to see at the
quality of the life as compare to the growth.
Public sector Entrepreneur Venture: It is the type of the entrepreneurship venture which
owned and control by the public body or the government of the country. The sole motive of the
Public sector organization is to provide the services to the citizen of the country rather than
earning the profit. Their is a very limited growth scope as the venture generally used to dealt in
the local market only(Li and et.al., 2019). The biggest example of the venture is Menier
Chocolate Factory.
P2 Similar and distinct character between entrepreneurial ventures.
Difference
BASIS PUBLIC SURVIVAL LIFESTYLE
Objective The objective of
public ventures is to
serve public in relation
welfare of the public
without aiming to earn
profit.
The objective of
survival firms is to
operate its business
smoothly to survive in
market. The company
objective is to fulfil
the daily requirement
of the fund.
The objective of
lifestyle
entrepreneurial
venture is to fulfil the
personal requirement
of owner and his
family.
Size The size of public
venture are large as
these are mostly
In the survival venture
the size of the business
is small as compared
Lifestyle ventures are
designed according to
the owners their size
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governed under the
government(Marabini,
2019).
to other
entrepreneurial
ventures.
varies from business to
business.
Annual growth The annual growth in
public ventures are
sustainable.
The annual growth in
survival ventures are
less it only covers the
expenses of the
company.
Lifestyle business are
the middle growth
ventures which are
earns revenue up to
20% in the three to
five years.
Technology In public sector the
preference to adopt
technology is less as
the motive of the firm
is to work for the
society welfare.
In survival firms the
technology are not in
use because the
turnover of the firm
are less which does not
allow the survival
venture to afford
technology instead of
this they use labour
capital (Nachrawi,
2018).
In life style ventures
the use of technology
are on the average
basis as the owner not
believe to spend
money on the
improving or adopting
advance technology.
Similarities
Creative Idea: All the entrepreneur venture used to operate or set up on the basis of the creative
or the innovative idea which has not been used by any entrepreneur in the past. The creative idea
which is posses by the entrepreneur is generally the solution of the problem which is faced by
the consumer in the market.
Risk factor: All the entrepreneurial ventures face many troubles while entering into the market.
The risk are related to the their innovative idea accepted by the public or not. The entrepreneur
who take more risk in right direction which makes business successful with earning of more
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revenue by the entrepreneurs. If the risk will not be taken by the entrepreneur then it will
guarantee no success to the entrepreneurial venture(Marabini, 2019).
LO 2
P3 Statistics of small business
The statistics of small business explain the employment rate in the economy that small
business contribute in the economy of UK. The statistics of small business population and
composition explains the significant presence the economy.
Employment:The small scale business in the economy of UK had employed over 16.3
million. Which made the half of the population to earn the living. When people are employed
they increase their level of income earning which further increase the standard of living of
people in UK. When the earning of people increases the purchasing power also increases which
further increase the economy annual turnover which was estimated at euro 2.0 trillion(Ningrum,
Widyastuti, and Festivalia, 2018).
Population of business: The business of small enterprise were at sustainability between
2000 to 2017 after that it reduced up-to 0.5% which means 27000 business were closed in the
economy and between 2017 to 2018 the small business in the UK economy were increased 2.2 m
which is 63% than business in 2000. between 2017 to 2018 the small business increase the
employment rate in the economy and up-to 50,000 people were employed
Locations: the business density in southern part of UK was more as compared to other
part of the economy . As 99.5% of the small business were located mainly in the industry sector.
And nearly less then 1% of the small business are in the construction, utilities sector, quarrying
and mining sectors(Nyilasi, 2018).
Composition: In 2018 1.4 million of the small business were employing and 4.3 million
of the small business were non employing. The overall business population were 3.4 million are
of sole traders that is 59% of total, 1.9 million were large companies and remaining 7% were
partnership firms which were 4,05,000 as ordinary partnership firms. Out of 5.7 million
businesses 45% that is 2.6 million not resisted with PAYE or VAT.
P4 significance of small business on economy.
Small business contribute significant factor for the growth of the economy. As the small
business provides innovation, employment, employment opportunities for women also,etc. All
these are described in detail.
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Innovation: Small business adapt the changes very fast as they contribute for introducing the
innovative product in the economy which further impact the economy to preserve its traditional
culture(Puteri and et.al., 2018). The innovation by the small business are more as hey take the
risk to provide the innovative product to the society. As small business needs less capital and it
can arrange it easily which encourages the entrepreneurs to start business with innovative idea.
Employment: Small business provides many employment to the large section of the economy.
Which impact the economy to increase its employment rate in the economy and make reduce
level of poverty in the economy. When the employment increases in the economy the purchasing
power of the people increase which further increase standard of living in the people and the
economy increase its growth on the global level.
Opportunities for minorities and women: small business play a significant role in the life of
the women because most of the time women are busy in family. they are not able to utilise free
time properly with the help of small business women are operating business activity from their
homes with taking care of their families. Womens and the minority section with the help of small
business can utilise their skills and develop their knowledge which further help them to grow
financially and become self dependent. The impact on the economy is that it will become more
stronger by employing women and minorities(Suardhika and Adriati, 2018).
Living standard: the standard of living of people increases when the small business gives
employment to the people. The innovation in the field of technology increases the standard of
living of people in the economy. Small business helps the economy to grow financially and also
develop the capabilities in the women which increases the standard of living as their knowledge
increases which eliminate the illiteracy level and develops the skills.
LO 3
P5 traits and characteristics of successful entrepreneurs different from managers.
Basis Peter Jones Richard Branson
Skill The skill that peter Jones had
is willingness to learn more.
This skill differentiated peter
from other managers as the
mangers are rigid in their
Another skill that is requires is
confidence to take the business
towards the growth and
expansion. Richard Branson
had the confidence in the
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working habits they does not
try to learn more in their
working place(Van Diermen,
2019).
decision taking which in right
way which took the business
further to grow in the future.
This skill differentiated
entrepreneurs from managers
as the they are not enough
confident to take the decision
and more dependent on the
higher authority.
Characteristics Peter Jones had the capability
to grab the opportunity from
the rivals. This differentiated
Peter Jones from the other
managers. As the mangers
only focus on the operation of
business in the correct form
they regularly check the
operation are done or not.
With this the manger does not
focuses on the opportunities
that are available in the market
only need to be identified.
Adoption of trends which help
to look in the future Richard
Branson had the capability to
look in the future which helped
him to fulfil the requirement of
the public. This characteristic
differentiated Richard from
managers . To analyse the
trend and understand the future
requirement of the people are
difficult for the managers to
understand. As the
characteristic is not present in
the mangers.
Traits Creativity is an essential trait
that is required in the
entrepreneurs. Peter Jones
used his creativity power and
which differentiated him from
mangers as the mangers does
not use the creativity they only
Risk tolerance is another trait
which is more important in the
entrepreneurs. Richard
Branson had the trait of
tolerating the risk that the
company faced. The mangers
are different from the
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work on the plan which is been
established by the company to
be followed by the
mangers(Wijayanti and et.al.,
2019).
entrepreneurs as mangers not
able to collaborate with the
situations in which risk factors
are involved.
P6 aspects that reflects the entrepreneurial mindset and motivation.
The personality of entrepreneurs that motivated them to become the successful are
explained with the help of ocean model of personality(OCEAN MODEL, 2019). Their are five
types of traits which are openness, conscientiousness,extraversion, agreeableness and
neuroticism.
Source: ocean model, 2019.
Openness:Richard Branson had the mindset to become successful entrepreneurs from his
young age. According to the ocean trait model the openness was present in Richard Branson
which means he was curious for the many things and consistent in his work.
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Illustration 1: ocean model

Extraversion:Peter Jones was extraversion from his childhood related to manufacturing
of computers as his interest was mainly in media, phones, televisions, etc. extraversion means the
entrepreneur is energetic in his work.
Agreeableness:the entrepreneur some times are friendly in nature or challenging to
understand the mindset of the entrepreneurs.
Neuroticism: this trait explains the sensitive or nervous characteristic in the entrepreneur
which may some times secure or confident in the personality of entrepreneurs.
Conscientiousness: this trait of personality explains about efficiency or the organised
form in the entrepreneurs or it may some time shows the carelessness or easy going(Badjie,
2019).
LO 4
P7 background and experiences entrepreneurs that foster entrepreneurship.
Richard Branson born in London, he was educated from scaitcliffe school, he mostly
lived with his third grand father who left England and visited many countries which made richad
to many new languages and increased his communication skills. Branson suffered from dyslexia
disease which decreases his academic performance, during this his mother was supportive to
which helped Richard to understand the importance of support from family as it made him to
work with motivation(Julien, 2018).
Peter Jones grew in maidenhead and studied in school Desborough further studied in
Windsor boys school. Peter Jones faced loss in IBM of euro 2,00,000 after selling it. Which
made him to learn many things while further dealing with other companies. It increases his
ability take more risk in future and increased the risk tolerance power within him. Peter Jones
invested in many business one of them were the charity support which was founded by peter
Jones to support the women education in the society which made him understand that social
responsibility towards the society are more important(Marabini, 2019). It created the sense of
belongingness in Peter Jones.
CONCLUSION
From the above report it can be concluded that the entrepreneurs are the persons who
takes risk for establishing their business with innovative idea with the aim to gain profit. The
consultancy firm McKinsey can grow its business in London with the help of using the best
entrepreneurial venture which is public venture as it works for the social welfare of the society.
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The report concluded that the entrepreneurs represent skills of learning attitude and ability to run
the business with confidence. Trait in entrepreneurs are risk tolerance and creativity which helps
them to take the business on the path of expansion and growth. Further the report discussed
about personality traits that are present in entrepreneurs with the help of ocean model. Last but
not least the report discussed about background and life experiences of Peter Jones and Richard
Branson that foster them entrepreneurial personality.
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REFERENCES
Books and Journals
Badjie, F., 2019. Islamic Blended Finance for Funding Small and Medium Enterprises: Special
Reference to the Gambia(Doctoral dissertation, Hamad Bin Khalifa University (Qatar)).
Herianingrum, S., Salleh, M.S. and Ratnasari, R.T., 2019. Micro Entreprise Empowerment
Model Through Islamic Financial Service Cooperative (Study in Indonesia-
Malaysia). KnE Social Sciences. pp.704-713.
Julien, P.A., 2018. The state of the art in small business and entrepreneurship. Routledge.
Li, C. and et.al., 2019. Religious beliefs, socially responsible investment, and cost of debt:
Evidence from entrepreneurial firms in India. Emerging Markets Review.38. pp.102-
114.
Marabini, F., 2019. Internet Entrepreneur. In Dictionary of Statuses within EU Law (pp. 319-
330). Springer, Cham.
Nachrawi, G., 2018. THE ROLE OF SOE IN IMPROVING POPULACE WELFARE. Awang
Long Law Review.1(1). pp.23-35.
Ningrum, L., Widyastuti, N. and Festivalia, F., 2018, March. The Effect on Entrepreneurship
Subject towards Entrepreneurship Interest for Tourism Higher Education Students.
In 2nd International Conference on Tourism, Gastronomy, and Tourist Destination
(ICTGTD 2018). Atlantis Press.
Nyilasi, Z., 2018. Several Issues on Taxation of the Sharing Economy Business Model, with
Special Regard to the Hungarian Regulation. LESIJ-Lex ET Scientia International
Journal.25(2). pp.69-79.
Puteri, F.S. and et.al., 2018, September. Analysis of Investor Intention to Invest Capital in Small
and Medium Enterprises Through Peer-to-Peer Lending in Indonesia. In 2018
International Conference on Computing, Engineering, and Design (ICCED) (pp. 87-
92). IEEE.
Suardhika, I.N. and Adriati, I.G.A.W., 2018. Strategic Orientation Based on Business
Environment and Entreprenurs Behavior as Well as its Effects on SME Performance
and Competitiveness in Bali Indonesia. International Journal of Contemporary
Research and Review.9(02).
Van Diermen, P., 2019. Small business in Indonesia. Routledge.
Wijayanti, R.F. And et.al., 2019. BIMBINGAN DAN PELATIHAN PENYUSUNAN
PENCATATAN KEUANGAN DALAM PENGELOLAAN USAHA KECIL. Jurnal
Pengabdian Kepada Masyarakat.5(1). pp.60-65.
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OCEAN MODEL. 2019. [online]. Available through<https://www.123test.com/big-five-
personality-theory/>.
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