Entrepreneurship & Small Business Management Report - Desklib

This report provides an overview of entrepreneurship and small business management, exploring various entrepreneurial ventures and their correlation with typology. It highlights the importance of small businesses in economic growth and discusses the characteristics, traits, and skills that differe...Read More

Entrepreneurship and Small
Business Management

INTRODUCTION
Entrepreneurship is refers as the capacity and willingness to develop a business venture
with an aim of profit maximisation. A person is called entrepreneur who has the ability to
convert opportunities into invention by bearing most of the risk (Henry, C., Foss, L. and Ahl, H.,
2016). The size of an enterprise started by such people is smaller and their role in an economy is
vital as they create employment opportunities for the people which in turn led to the increased
living standard. This report will discuss various kinds of entrepreneurial ventures and their co-
relation with typology. Moreover the importance of small business in the growth of economy is
discussed. Lastly, this report includes different context of entrepreneurial by considering the
background and experience of entrepreneurship.
TASK 1
Covered in Booklet
TASK 2
Covered in Booklet
TASK 3
P5 Characteristic, trait and skill of successful entrepreneur that differentiate from business
managers
Entrepreneur is defined as a individual who takes initiative in developing a venture with
an aim of making profit. They are the decision maker of their organisation which means they are
only responsible for the failure and success of an organisation. On the other hand, managers are
the individuals who are responsible for application of strategies and policies for handling the
operations ( Dunne, T. C., and et. al., 2016). In this study, two of the most famous entrepreneurs
have been taken who are Peter Jones and Henry Ford.
Peter Jones is a British entrepreneur who invented two television shows on BBC namely
Dragons' Den and American Inventor.
Henry Ford was an American entrepreneur who founded the company Ford Motor which
is a renowned and successful enterprise. It was established to invest in assembly line technique
of mass production.
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Characteristics: It refers to the quality possessed by an individual that make them
unique from others. Features of successful entrepreneur have been discussed below:
 Hard worker and dedicated: Both Henry Ford and Peter Jones are hard worker and
dedicated towards the work which led them formulate some of the strategies for the
success of an organisation (Doern, R., 2016). On the other side, managers are not
working hard as per their abilities as they are always dependent on other superiors for the
guidelines and strategies.
 Flexible: A successful entrepreneur always make changes according to the needs and
requirement of the society. Moreover flexibility help them to take effective decision on
the behalf of the company. Where as managers are not flexible as they are not able to find
proper solution to issues in the hard times.
Traits: It refers to the distinguish quality that differentiate from other persons. Below are
some of the trait of an entrepreneur:
 Risk taker: In order to get success, it becomes imperative for the entrepreneur to take
risks with a view to mitigate them. it is very important for an entrepreneur to take risk.
Both Henry Ford and Peter Jones have taken risk and frame strategies that help them
towards the success. On the contrary, mangers are controlling of the risks but they are
not risk takers. They make strategies which are used for reducing the impact.
 Self motivated: Self motivation is one of the important trait of successful entrepreneur.
Both Peter Jones and Henry Ford were self motivated which helps them to work in the
most challenging situation. On the other side managers are not motivated as they are
always dependent on other for the help and even they are not able to formulate the
strategies for their own (Burns, P., 2016).
Skills: It refers to the ability of an individual to carry the task with a specified time limit.
Below are some of the skills of an entrepreneur:
 Focused: It is considered as one of the important skill for entrepreneur. Both Peter Jones
and Henry Ford are focused toward their goal as they wanted to achieve something big in
their life. Where as managers are not focused as they even are not clear about the goals
and objectives of an organisation.
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P6 Assess how the aspects of entrepreneurial personality reflect entrepreneurial motivation and
mindset
Personality refers to the different way of thinking and behaving that differentiate them
from other individuals. A successful entrepreneur always possess a great personality which
makes them different from other. The personality factors can easily be explained with the help of
OCEAN model which is stated below:
 Openness: It defines as those factor in which an individual is open to the market so as to
come up with a creative approach. Entrepreneur have the skills to learn something new as
they are always practical. Both Henry Ford and Peter Jones are creative that led them
develop innovative idea which results in success of them.
 Conscientiousness: It refers to making of a plan before starting any thing new as they are
goal oriented. Both Henry Ford and Peter Jones have made plan before starting of a
project which results in their timely completion.
 Extraversion: This trait always help an individual to move ahead in personal and
professional life. The individual having this trait are enthusiastic, active and a goof
communicator. Both Henry Ford and Peter Jones have this trait which enables them to
communicate their idea with large group of people (Burns, P. and Dewhurst, J. eds.,
2016).
 Agreeableness: It refers to the engagement of a individual with other employees. The
one possess the characteristics of this trait are very helpful toward their team members.
Both Henry Ford and Peter Jones have this quality as they provide proper solution to the
team member whenever required.
 Neuroticism: The one who is having this trait are not able to deal with their employees
properly as they always suffer from the mood swings. Both Henry Ford and Peter Jones
stand low in this trait as they are very calm toward the work which led them complete
their work stress free.
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TASK 4
P7 Using example, examine how background and experience hinder or foster the
entrepreneurship
Background and experience are important elements which can create positive as well as
negative impact. This may ultimately lead to foster or hinder the business activities (Zacca, R.,
Dayan, M. and Ahrens, T., 2015). In this report tow successful entrepreneur are taken. The
experience and background of both entrepreneur are mentioned below:
Peter Jones
Background
Peter David Jones is a British entrepreneur and was born on 18th march 1966 in
maidenhead, UK. He has a interest in televisions, mobile phones, media, retail and property.
From the childhood onwards he has developed the entrepreneurial zeal as he has interest over
tennis. At the early childhood days he went to his father office. Both mother and father worked
hard to fulfil the needs of the family. He has taken the field of his interest and also has given an
examination of Lawn Tennis Association which help him to combine two subjects.
Experience
At the age of 20, he set up his own computer business. Thereafter in 1998 he has set up
phone international group. After his appearance on the BBC shows two dragons' Den and
American Inventor he became a famous celebrity. Despite of the average family background he
has a aim of becoming millionaire and was successful. He fought day and night to achive the
dream which led him become most successful.
Henry Ford
Background:
Henry Ford is known as the founder of the company Ford Motor. This company was established
on 30th July 1863 in the rural Michigan, US. He was the eight children of William and Henry
Ford. When he was planning to open his own company, his father was into machine shops. His
mother died at the early age and father forces him, to take over the family farm but he was not
interested (Bradley, S. W. and Klein, P., 2016). The experience of technical matters gained by
helping his father in machine shop. This also contributed development of his interest in auto
mobile and led him build farm locomotive.
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Experience:
When he turned 16, he took training as a mechanist in Detroit. He got to learn so many
things about the engines. He became good with the management. There after he joined Detroit
Edison company in the year 1890 as an engineer. He build his first gasoline buggy in the year
1892. Inspite the family condition was not sound but he never give up. He has a zeal to design
something innovative. He was passionate toward the work which led him develop Ford Motors.
CONCLUSION
From the above discussion it can be concluded that there are various type of
entrepreneurial ventures and they have different typologies. Impact of small business on
economy is studied in order to know their importance. Entrepreneur have some of the skills,
characteristics and trait that make them different from managers through which able to formulate
the strategies. Through OCEAN model it become very easy to understand about different type of
personalities. Lastly background and experience of entrepreneur is discussed and focused on how
they foster the entrepreneurship.
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REFERENCES
Books and Journals
Bradley, S. W. and Klein, P., 2016. Institutions, economic freedom, and entrepreneurship: The
contribution of management scholarship. Academy of Management Perspectives. 30(3).
pp.211-221.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Doern, R., 2016. Entrepreneurship and crisis management: The experiences of small businesses
during the London 2011 riots. International Small Business Journal. 34(3). pp.276-302.
Dunne, T. C., and et. al., 2016. The impact of leadership on small business
innovativeness. Journal of Business Research. 69(11). pp.4876-4881.
Henry, C., Foss, L. and Ahl, H., 2016. Gender and entrepreneurship research: A review of
methodological approaches. International Small Business Journal. 34(3). pp.217-241.
Julien, P. A., 2018. The state of the art in small business and entrepreneurship. Routledge.
Scarborough, N. M., 2016. Essentials of entrepreneurship and small business management.
Pearson.
Schaper, M. ed., 2016. Making ecopreneurs: Developing sustainable entrepreneurship. CRC
Press.
Siegel, D. S. and Wright, M., 2015. Academic entrepreneurship: time for a rethink?.British
Journal of Management. 26(4). pp.582-595.
Venkataraman, S., 2019. The distinctive domain of entrepreneurship research. In Seminal Ideas
for the Next Twenty-Five Years of Advances (pp. 5-20). Emerald Publishing Limited.
Zacca, R., Dayan, M. and Ahrens, T., 2015. Impact of network capability on small business
performance. Management Decision. 53(1). pp.2-23
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