Entrepreneurship: Small Business, Economy & Traits Analysis

This report provides a detailed analysis of entrepreneurship and small business management, covering various types of entrepreneurial ventures and their relationship to different typologies of entrepreneurship. It investigates the diverse range of entrepreneurial ventures, demonstrating an underst...Read More

Entrepreneurship and
small business
management
Table of Contents

INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Examine different types of entrepreneurial ventures and relate to typologies of
entrepreneurship..........................................................................................................................1
Relationship between the different types of entrepreneurial ventures and typology of
entrepreneurship..........................................................................................................................3
Investigate a diverse range of entrepreneurial ventures to demonstrate an understanding of
entrepreneurship in both the public and corporate sector...........................................................7
Critically examine the scope, development and growth of entrepreneurial ventures.................7
TASK 2............................................................................................................................................7
Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on the economy. .............................................................................................................7
Explain the importance of small businesses and business start-ups to the growth of the social
economy....................................................................................................................................12
Evaluate the differences small, medium and large businesses make to the economy, applying
relevant data and statistics.........................................................................................................14
Critically evaluate how small businesses have an impact on different levels of the economy
(local, regional, national) and in an international context.........................................................14
TASK 3..........................................................................................................................................15
Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers..........................................................................................15
Explore different lines of argument relating to entrepreneurial characteristics........................18
TASK 4..........................................................................................................................................19
Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship........................................................................................................................19
Analyses the link between entrepreneurial characteristics and the influence of personal
background and experience to specific successful entrepreneurs.............................................21
CONCLUSION .............................................................................................................................22
REFERENCES..............................................................................................................................23

INTRODUCTION
An entrepreneur creates a business to realize their idea known as entrepreneurship, which
requires capital and labor in order to produce goods and services for making profit. It is highly
risky but at the same time it can be more profitable as it serves to generate economic growth,
wealth and innovation. This report includes the topics such as types of entrepreneurial ventures
and how they are related to typology, then it includes explanation of differences and similarities
of different entrepreneurial ventures (Kunaka and Moos, 2019). Further it contains Interpret and
assess relevant data explaining how small businesses impact the economy. Interpretation of
relevant data explaining how small businesses impact the economy, importance of start-ups and
small business for the growth of social economy, what are the skills an entrepreneur has in
comparison to other business managers, how aspects of entrepreneurial personality reflect
mindset and motivation and lastly how background and experience can hinder or foster
entrepreneurship.
TASK 1
Examine different types of entrepreneurial ventures and relate to typologies of entrepreneurship
Entrepreneurship define as a method of generating new method in marketplace with the
purpose of maximising sales and profitability margins. These mainly denoted as small
businesses. Hence, entrepreneurs operate their companies and offers services to the customers. In
these terms, there are around four types of entrepreneurial ventures which are presented below: -
Types of Entrepreneurship
 Small business entrepreneurship- These type of businesses are generally operated by
an individual person on their own risk. It includes store front, plumbers, travel agents,
internet commerce store fronts and many more. In this the main reason of individuals are
to feed their individual family by making profits (Julien, 2018). As they also employees
around 50% of nongovernmental employees and around 5.7 million businesses are
present in the UK.
 Scalable start-up entrepreneurship- The main objectives of these entrepreneurs are to
generate more profitable results. Their work on the vision to change the whole world.
Therefore entrepreneurs under these hire best candidates and professional employees. In
this employees find scalable business model that involves Facebook.
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 Large company entrepreneurship- It refers to that company which runs on a large
scale. As they produce or manufactures offerings as per the needs of customers
preferences and taste (Nheta and et. al., 2020). These company also generate and
innovate new products that is used to attract more new customers. The main of this
business is to gain competitive advantage so that they would sustain top place within
marketplace. The manager of large companies play essential role where they offer
training sessions to employees so that they fulfil objectives of business appropriately. In
this operations are done in systematic manner.
 Social entrepreneurship- Entrepreneur in this type of business are highly focused on
satisfying the needs and wants of their customers. Hence they offer products and services
for welfare of public and solve the issues faced by individuals within community. They
mainly known as non-profit organisation as they emphasis on creating wealth for
customers to develop a better place.
 Lifestyle ventures – A lifestyle venture is considered as one that is designed to supplement
the owner's income & meet the personal needs rather than maximise profits. The
objective of a lifestyle business is to achieve a work/life balance that is both sustainable
& enjoyable. The company should be profitable enough to allow the owner to live the
lifestyle he or she wishes without the sacrificing his or her personal life. The type of
business can also be chosen based on personal preferences, ensuring that working time is
joyful. This company is beneficial in raising the standard of living of the common people
in specialised regions where enterprises can conduct their daily activities. These
enterprises provide jobs for local residents and assist them in improving their quality of
life. These kinds of businesses are classified as social initiatives.
 Medium-sized ventures – In-house personnel typically consider the financial framework of
a medium-sized organisation, reviewing the adequacy of the present framework and the
availability of different or extra finance in order to match it with the business's objectives
in terms of function and timeliness. Medium-sized enterprises typically use a variety of
financing options from a variety of sources; they may interact with two or three banks,
and they may have access to additional financing options based on their track record and
capacity to offer protection.
Typology of entrepreneurship
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 Skeptical entrepreneur- These type of entrepreneur have a power to build innovation,
opportunist, specialist etc. Hence they also put questions on other success. As they
emphasis on other businesses to analyse. Builder entrepreneur- It refers to that entrepreneur that mainly emphasis on developing
own business. It believes in building new things according to current trends to attain
better outcomes (Baker, Kumar and Pandey, 2021). As per that these businesses are said
to be scalable and strong because they invest funds in something productive.
 Growth Oriented Entrepreneur - Businesses that are termed growth enterprises are those
whose primary goal is to increase profit and revenue. These businesses are concentrating
on creative concepts in order to generate more revenue and increase long - term
profitability. The key concern of these businesses is to meet customer expectations in
order to reach a wide market. Growth firms are taken into account by both companies of
all sizes.
 Craftsman entrepreneur / Independent entrepreneur- The crafts man entrepreneur is
a major businessman who is important for a business to develop creativity. In the
recent times, importance of craftsman entrepreneur is increasing as he is the major
focus of a business to develop a major value chain analysis. The craftsman
entrepreneur include different relatives who perform business operations in a well
defined manner. Craftsman entrepreneur is also experienced in a major sense with
the help of skilled relative.
Relationship between the different types of entrepreneurial ventures and typology of
entrepreneurship.
Entrepreneurship ventures and typology of entrepreneurship refers to classification of
entrepreneur that consist of growth-oriented, craftsman and independent as well as strategy
typologies. Under the concept key associated terms of business are being defined for which sole
trader, partnership, company, innovative entrepreneur and opportunistic entrepreneur is being
taken into consideration.
Opportunistic entrepreneur- An opportunistic entrepreneur is a leader of a business who
always finds optimum solutions for different measures. In recent times the majority of business
organisations covers typology of the business environment for better understanding of a
business. Planing in opportunistic entrepreneur is a major function which leads to organisational
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success. The development of opportunity in a business helps in long term and systematic
expansion of a business. This form of entrepreneurship type is most useful in terms of grabbing
market opportunities when raised in the business market. Opportunistic entrepreneur associated
with Gazelles and medium scale entrepreneurial activities which have long term planning
horizon, well organised and seeks exponential growth.
Innovative entrepreneur- The innovative entrepreneur is a major type of business man
who is concerned in providing effective new techniques in a business. This is also a key
responsibility of innovative entrepreneur to develop focused goals and objectives for business
development. The innovative entrepreneurship is requirement of majority of business
organisations in order to develop a precise and systematic marketplace approach. Innovator
entrepreneurs is associated with medium and large businesses because they have the resources,
innovation capabilities and research and development capacities to come up with uncommon
ideas in the industry and use their resources to convert them into real products.
Sole trader- The sole trader business includes ownership of a single person in a business,
who performs all the business activities. In the case of sole trader, the person is responsible for
handling all business operations. For the stated type, an individual is only the real owner of a
complete business. In this an individual is liable to pay off all the taxes and greet with returns
through solo capital investments.
Partnership- The partnership is an economic activity in which two or more personal
involve in business practices. In the partnership, there is a sharing of risk and profit. Also it is the
key role of all partners to maintain utmost transparency in the business for ethical development.
Company- It is a legal entity that is responsible for performing definite functions to gain
profit from the marketplace. Under this type, typical activities of individuals are bonded with
legal company laws and structure. It reflects towards separate legal entity to its owner and
relative individuals working in the company.
Based on your analysis of the typology of entrepreneurship and the different types of
entrepreneurs, you need to explain how and why each of the entrepreneurial ventures is linked to
each of the typology of entrepreneurship. So for example:
Sole Trader- The sole trader is linked with the economic development in order to develop
business functions at the marketplace. Also it is main responsibility of the management to focus
on sole tradership for long term development of business firm
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Partnership- In the recent times functions and activities which are perfomed by marketing
management and partners helps in entrepreneurial development.
A person who sets up Micro enterprise ventures can belong to. or classified as
independent / craftsman entrepreneur because micro-enterprises are often established and
managed by the owner with his own capital (one man business) and growth is slow/minimal
initially.
Small and large entrepreneurs
Basis Small business entrepreneurship Large company entrepreneurship
Similarities  The main aim of small
business is to generate more
profitable results.
 Small organisation emphasis
on creating new products to
fulfil demands of customers.
 These organisations also
provide employment to many
people within organisation.
 The purpose of these type of
companies is to attain goals
and objectives so that
profitable results are
increased.
 Within large organisation
employees get professional
training to generate more
new products.
 In this large businesses.
Entrepreneurs employees
workers to capture and fulfil
future opportunities
(McElwee and Atherton,
2021).
Differences  Small businesses are working
to earn profits so that they
fulfil daily needs to feed their
individual families.
 Entrepreneurs under this
businesses invest small funds.
 Large entrepreneurship
make their profit maximum
to gain competitive
advantage at marketplace.
 They started their business
by invest large amount of
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 These organisation provide
small number of employment
opportunity to perform the
activities of business.
money.
 In this large number of
employees are hired to
accomplished business
objectives.
Scalable and social entrepreneurship
Basis Scalable entrepreneurship Social entrepreneurship
Similarities  These type of enterprises based
on software applications such
as Facebook, Instagram etc.
 The main objective of scalable
entrepreneurship is to create
profits and increase their sales .
 They develop opportunities to
enhance their business for
future challenges.
 The entrepreneurs of these
companies promote
businesses on social
networking sites such as
Facebook, Instagram etc.
 The major purpose of these
companies is to enhance the
level of profits by fulfil
needs of customers.
 These face current
challenges to enjoy
profitable outcomes so that
more future opportunities are
raised.
Differences  These entrepreneurs offer all
environmental factors to satisfy
needs of customers (Brush and
et. al., 2019).
 They mainly emphasis on the
leadership team to take
suggestions in the funds of
 Social entrepreneurs mainly
emphasis on fulfil social
needs by solving the issues
related to social factors.
 They raise funds from
several sectors to donate on
charitable institutions.
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business.
 Scalable mainly rely on
quantifiable measures where
they measure performance
based on market share,
financial stocks etc.
 They measures all social
performance and changes.
Investigate a diverse range of entrepreneurial ventures to demonstrate an understanding of
entrepreneurship in both the public and corporate sector.
From above information it is evaluated that the term entrepreneurship is also connected
with public and cooperate sectors. As these also helps to enhance knowledge regarding
entrepreneurship that is essential for development and growth of nation. The main aim of these
organization is to improve environmental factors. In this public and cooperate sectors are also
including to innovate that helps to expand business along with maximizing sales.
Critically examine the scope, development and growth of entrepreneurial ventures.
From the above information it is reflected that the growth, development and scope of
entrepreneurial ventures are different from one another. In terms of small organization the scope
of these companies is limited because they only provide employment to local people whereas
they considered high growth and development in business industry. On the other hand, large
organization have wide range of scope because they provide employment opportunities on wide
nature where they work to satisfy the needs and wants of customers. Due to which large
organization have high growth and development opportunity in marketplace. Scalable
entrepreneurial ventures scope is not indefinite but they have high growth opportunities because
they work on innovative ideas.
TASK 2
Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on the economy.
Micro and small businesses possesses great impact on economy. In the current era there
are several individuals who operate and run micro and small business. As they recruit several
employees that helps them to offer training to maximize skills and abilities. In this micro and
small business are highly beneficial to increase level of performance along with opportunities
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that would raise in marketplace. In this they are capable of facing issues and challenges within
future context (Pagano, Petrucci and Bocconcelli, 2020). Hence these businesses focus on
reducing poverty from economy that demonstrate positive changes within organization. These
businesses support people who lives in small village and towns by offer them employment
opportunities. In this statistical analysis would be done to understand impact of micro and small
business on economy within following statement:
From this analysis, it is shown that employment opportunities are enhanced in UK every
year. As per the graph small and micro business employees in 2008 around 100 and after that
they maximize their speed shown in the picture (SME Performance Review. 2018). The below
data shows scale from year 2008-2015 where the scale grows to 140 that is greater that 2015. In
this manner micro and small businesses impact economy in development and growth due to
which the level of poverty is decreasing and living standard of people is increased.
(Source: SME Performance Review. 2018)
From the above graph, it has been evaluated that there is significant increase in the growth of
SMEs . In has been evaluated that from past many years increase in small scale companies has
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evaluated that growth of SMEs has been increases from the year 2008. As per the graph by the
year 2018 increase in SMEs showcased increase in value of small scale organisations.
Different types of businesses
There are various kind of business that impact economy that impact economy of country
that are micro, small and large business:
 Micro business- It refers to that business that run their organisation in very small scale.
As these company offer employment in small in number. They hire or recruit nine or less
than that employees. Hence their balance sheet and turnover is less then £3 million. These
businesses are run by both individual men and women both. Both emphasis on grow
micro business when they need changes to fulfil customer needs and demands and
generate high level of income (Bruce, Gurley-Calvez and Norwood, 2020). These are
several entities which depend on country. The entrepreneurs of these organisation are
develop their organisation by their unique skills or ideas. Micro business impact on
economy as they offer job opportunities to many people.
 Small business- In this entrepreneurs of small business run their organisation with small
amount of funds as they are larger than micro firms. There are around 28.8 million
companies within UK are operated where they offer employment opportunities to
individual. They provide employment to 50 workers or greater than that.
9
Illustration 1: SME Performance Review

 Large business- These firms mainly include large corporate industries who are focus on
controlling financial and business operations. Hence they run their business with large
amount of funds. The main aim of the company is to generate more profitable results to
gain competitive advantage within marketplace. In this entrepreneurs run the company on
large scale where around 250 employees are working. Th turnover of these type of
companies are more than £22.8 million. They emphasis on developing new products
according to the requirements of customer. These offer professional knowledge and
training to employees that is used to develop more opportunities at marketplace.
As per the above graph, it has been evaluated that as compared to medium and large scale
business, small scale organisations have significantly provided employment opportunities. In
addition to this, it has been underlined that SMEs provide more job opportunities. This sector
also measured significant increase in turnover effectively. Furthermore, it has been underlined
that SMEs also have increase in business.
Benefits of small and micro business towards economy:
 Recruit local workers- Small and medium organisation play an essential role within the
growth and development of economy. As they emphasis on reducing the poverty within
nation. These types of business provide job opportunities to local people who are not get
employment opportunity by large organisation. This will develop the level of
performance (Zeyen and Beckmann, 2018). SMEs also offer training to employees and
solve the issues so that they face future challenges very calmly and provide best
directions to business success.
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 Adopt change climate- The another advantage of these type of businesses is that they are
basically customer oriented. As these businesses respond quickly on the changes that are
present within business environment. In this organisation remain loyal within society
people due to which they easily satisfy customers in an effective manner.
Challenges facing UK small businesses
Some specific challenges which are facing by the UK small businesses like Corona virus
restrictions ,New Brexit regulations, Financial challenges, Technology risks , supply and logistics,
Talent and people and Societal changes. Some another challenges also are facing by the small
business in United Kingdom like
 Leadership
 Strategy
 Building an “A” team
 Culture
 Strategy Execution
 Making the business stand out
 Systems and Processes
 Productivity
 Putting your employees first
 Measuring performance
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Explain the importance of small businesses and business start-ups to the growth of the social
economy
Social venture are the sort of a venture who conduct functions and as well as operations for
social advantages. The fundamental role of such management is to satisfy social obligations that
not just for profit. They also offers lower cost of the goods to their customers. For instance,
management will develop themselves effective to provide individual well qualitative towards
their business that have good customary sections with effective dealing of living. It involves the
term “Social Economy” and provide brief explanation and statistics on the key features of the
sectors that are as follows -
a. The Co-Operatives – The cooperative socities are major bodies which start own
business for self interest. In the business environment, it is major responsibility of
government to provide support to cooperative societies. The co-operative society
includes major functions and activities which are performed in order to gain
products for self use.
b. The UK Mutual Society (eg, Building Societies and Credit Unions)- The United
Kingdom mutual society is a major global level society which performs not for
profit operations. The companies in international and domestic market helps the UK
mutual society to create competition edge by providing CSR.
c. Social enterprises- The social enterprises are formed and developed in order to
effectively serve the society. Also the companies in international marketplace
develop social functions to focus on weaker sections of the society.
Brexit is an act that was presented in European Union withdrawn from United Kingdom.
This act affects the UK in negative manner. As it also affects the country in positive manner by
providing job opportunities to them. The government of economy mainly support small and start-
up businesses that enhance the living standard of people who lives in community.
Small business Start up business
 It refers to a self content business
because it is start with small funds.
 These organisation generate funds from
the families.
 They are small in size where they fulfil
 Start up inspirations are emphasis on
high impact on economy.
 They are generally funded at initial
level and also have knowledge
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needs and demands of society.
 They adopt changes as per market
demands and also focused on drive
profitability to maintain long term
sustainability.
regarding the funding methods.
 Entrepreneurs of these business follow
exit strategy and also they are denoted
as temporary organisation.
 They emphasis on future vision and
adopts technology to change ideas that
enhance the growth potential and also
maximise the revenues.
Impact of Brexit on economy
Brexit are termed as British Exit where it was concerned on 2016 within UK. As per this
case, UK demands to leave the country because it has strong effect of economy. Brexit impact
the UK economy that results to faster growth development of nation. These highly reduction in
wealth distribution. Provision, wealth distribution, infrastructure and social amenities. Brexit
impact economy as it offers number of employment opportunities to people in economy that
reduce the poverty (Jo’rayevich, Baxritdinovich and Bulturbayevich, 2020). The living standard
of people is enhanced along with international trading. Therefore the social and economic
condition of country affects the Brexit case within nation. Social condition involves culture,
religion, beliefs and many more where economic factors involves culture, religion, belief etc. it
involves fluctuation rate, per capita income etc. In terms of Brexit annual income of people are
also enhanced due to which living standard of people is also developed. Therefore the social
security of people were also maximised that assist individual to feel secured within nation.
Importance of small businesses and start-ups:
 Eliminates poverty within UK- Small and start-up businesses play an essential role in
development and growth of nation. As it gives employment opportunity to huge number
of people due to which poverty were reduced at marketplace.
 Employment- It is more important for the growth of a nation. Small and start-up nation
supports to give occupation to so many people due to which people who are live within
the nation enhance living standard.
 Wealth distribution- Start-up and small businesses are very important in distribution of
wealth and also as an income. In terms of Both the organisations, they offer work and
13

occupation to individual local people that is used to enhance the living standard of
people.
Evaluate the differences small, medium and large businesses make to the economy, applying
relevant data and statistics
 Small business- This type of business help economy in growth and development. In this
approx 10 to 49 workers are employees who perform their activities in small business.
 Medium business- In this business around 50 to 250 employees who contributes in
achieving the goals. These help to attain the proficient results so that sustainable results
are enjoyed by company.
 Large business- these businesses are known as big business because they are big in size
as compare to small and medium organization (Ughetto and et. al., 2019). They
employees more than 250 employees that are used to attain goals in set time frame.
Critically evaluate how small businesses have an impact on different levels of the economy
(local, regional, national) and in an international context.
Illustration 2: The Role of Start-ups and Small Businesses in Today’s Economy.
2018
As per the graph, it has been evaluated that there is significant increase in employment rate due
to the increase in SMEs. In addition to this, it has been evaluated from the above graph that, as
compared to medium and large scale companies there is significant increase in the growth and
14

development of small scale organisations. Furthermore, it has been underlined that there is 48%
increase in employment rate due to SMEs while on the other hand, 99.3% increase in business of
SMEs.
 Local level impact- Micro and small businesses companies are directly impact the local
economy because they offer products and services to local people in order to fulfill the
needs properly. These type of businesses are generated to fulfill needs and wants of
people. By this businesses were determine their purchase power in order to offer
offerings accordingly (Zhu,Kara and Zhu, 2018). These offer employment opportunities
to local people so that their living standard would be developed.
 Regional level impact- In this small and start-up businesses impact regional economy as
they offer local job opportunities to regional people for to eliminate the issue of
unemployment within region. This impact positively because they offer high employment
opportunity to expand business operations by recruiting talented workforce.
 National level Impact- SME is a company that impact economy at national level as they
perform business operations in less money. These mainly focused on innovative ideas
that develops productivity and profitability of an enterprise. Therefore the maximized
profit will increase the country GDP and revenue of government around 15.7 million
people that reflected as positive impact in the development of UK.
TASK 3
Determine the characteristic traits and skills of successful entrepreneurs that differentiate them
from other business managers.
Entrepreneurs are termed as self employed people who run their business on their own
efforts. Hence it is very important for each and every entrepreneur to have a characteristics,
skills, traits so that they could manage whole business operation. On the other hand managers
who works under the guidance of leader and with all the instructions. Therefore entrepreneurs
are different from their manager as they are capable to manage whole business by their own. In
terms of this two famous entrepreneurs are undertaken who trap high hieght by their own efforts
(Sharafizad, 2018). These entrepreneurs are Mark Zuckerberg and Bill gates whose skills, traits,
characteristics are presented below:
Mark Zuckerberg
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Mark Zuckerberg is a leading and successful entrepreneur on the global level. Her is an
American technology entrepreneur who found Facebook and known as co-founding. Therefore
by this efforts and traits Zuckerberg handle all business and traits and make it successful in
worldwide.
Steve Jobs
Steve Jobs is an American business magnate and investor. Steve Jobs was a chairman,
chief executive officer of Apple Inc. Jobs also done many efforts to become renowned business
tycoon.
In terms of this context several important traits and characteristics of successful
entrepreneurs are presented below:
Characteristics
 Believe- It is first entrepreneurial characteristic that was present in Mark Zuckerberg and
Steve Jobs because they both in our self. Hence it is crucial to an entrepreneur to believe
in themselves, due to this they attain business targets effectively. On the other hand,
manager of business enterprise only follow instructions to attain the goals prominently.
 Risk taker- It is another attribute of an entrepreneur where they are risk takers. To make
successful in the life of business it is crucial to take risk. This feature also help to deal
with several factors (Barnard, Pittz and Vanevenhoven, 2018). On other hand manager
does not take risk as like entrepreneur because their duty is to make work properly and
attain targets.
Traits
 Creativity- It is an essential trait of successful entrepreneur. Hence it is essential to have
a creative mind due to which they develop plans or products with creative features that is
used to attract consumers.
 Competitiveness- It is very crucial for an entrepreneur to recognize competitors at
marketplace. Hence in this Zuckerberg and Steve Jobs run organization with aim and
objectives so that targets are attained on time. In this manager of an organization take
actions after getting direction from entrepreneurs because they does not take any risk
without permission of entrepreneur.
Skills
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 Self-reliance- The core basic skill of an successful entrepreneur is that they are self-
reliance. For example- This skill are present both entrepreneurs i.e. Zuckerberg and Jobs
due to which they work effectively on their own. But in this manager are different from
entrepreneurs because they are self reliance.
 Learning- An successful entrepreneurs emphasis on learn so many thinks and also they
change accordingly to make market trends. Hence they also have full knowledge of
outside sources and intrinsic sources. For instance- Due to learning skill both Zuckerberg
and Jobs lead company effectively (Hameed and Irfan, 2019). In this manager does not
have any knowledge related to task as they only follow orders of entrepreneurs.
 Decision-making- Tom Mercer have the ability to make sound business decisions. This
is required in order to design a method that will assist in making the best option for the
firm.
Motivation is the major factor which is used to promote employee development at the
marketplace. The mental strength of employees is increased by the motivation in order to
develop their performance.
Apply McClelland Need Theory of Motivation below to explain what motivates
entrepreneurs to become successful:
- Need for affiliation- In the companies, there is a strong need of affiliation which
develops effective edge over competitors. The affiliation needs requires dependency
of the company over other competitors to play a significant role in business
development.
- Need for power- There is a strong need of every company to develop power in the
individuals and employees in order to increase their responsibilities.
- Need for achievement- Setting achievement needs is the main priority of every
employee in order to gain sustainability in operations. Also the need of achievement
of individual goals and objectives is necessary for a business.
A successful entrepreneurial personality accumulates attitudes, abilities, motives, values
etc. that is used to shape the experience and actions. Therefore Personality of an individual
person affects mindset and motivation. To effectively recognize entrepreneurs mindset and
motivation OCEAN model is adopted:
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OCEAN MODEL OF PERSONALITY:
It is five framework model of personality that is based on motivation and mindset of
successful entrepreneur. These factors are presented below:
 Openness- This type of personality framework involves those people who like new
things. Zuckerberg and Jobs both have this kind of personality where they always focus
on innovate new things due to this their company looks innovative in marketplace and
this attracts large base of customers.
 Conscientiousness- It is another personality trait under ocean model where individuals
show self discipline where their get proficient achievement (Jalilov, Annayev and
Mukhammedov, 2018). Both entrepreneur have high in self- reliance skills due to which
they achieve their goals prominently and effectively.
 Extraversion- This trait includes those individuals who are assertive, surgency.
Zuckerberg and Jobs both have an extrovert nature due to which they learn new things
and maintain competitiveness in marketplace.
 Agreeableness- These includes warm, friendly and cooperative nature. These people are
trustworthy and Zuckerberg and Steve Jobs both are of cooperative nature due to which
they are high competitive and challenging that become successful in business world.
 Neuroticism- These are said as emotional stable people that refers the degree of
emotions. It involves those people who are emotional by nature (Agyapong, 2020).
Zuckerberg and Steve jobs both have low degree of neuroticism and this nature help to
calmly solve every issues properly.
Hence all these above personality framework reflect mindset and motivation of an
entrepreneur so that they become successful in their career.
Explore different lines of argument relating to entrepreneurial characteristics.
Entrepreneurial characteristics assist entrepreneurs within their success and growth other
than business manager. They also called risk takers due to which they effectively deal with
capability and lead the organization. In terms of Mark Zuckerberg and Steve jobs, both traits and
characteristics helps them to become successful in business world (Tien and et. al., 2019.
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TASK 4
Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship.
It is a process of designing, inauguration a successful new business. In this people who
develops ideas and start business are called entrepreneurs where the earn profitable results.
However, entrepreneur are highly dependent on their background and experience which they get
from family. There are several factor which hinder or foster to become successful entrepreneurs:
 Education- It is a basic factor that affects skills of an entrepreneur. Therefore if an
individual have basic knowledge than they have creative ideas which they set up in their
start-up. They start-up with innovative ideas. For example- Mark Zuckerberg does not
from the computer science background and his father is psychiatrist and mother was a
doctor instead of this they gain skills in another field. On the other hand steve jobs
belongs to that background where his father was a machinist where they assemble worse
things. This helps them to innovate ideas and due to this he become a co-founder of
apple.
 Family background- It is another factor that impact on success of entrepreneur. If an
entrepreneur come from the challenging family because of this he understand the value of
currency. Learning develops enthusiasm and helps to attrcats employees towards goal
achievement (Nyadu-Addo and Mensah, 2018). For example- Mark Zuckerberg from a
well settled family and also their parents are highly educated due to this he get support
from their family. On the other hand Steve Jobs, parents are not much educated but have
an innovative mind where they capture large market share by their creative ideas.
This elaborated how concept of entrepreneur would be affected by his experience and
family background in positive and negative manner. Hence the experience and learning both
affects entrepreneurs skills to become innovative. Mark Zuckerberg has a perfect example of risk
taker because they get positive response from their family that is used to attain goals on effective
manner. However, it show how background and experience impact entrepreneur abilities and
skills also in several way.
Background can provide the positive impact on the entrepreneurship of the entrepreneurs
and it is determined that personal history and experience can have a significant impact on a firm,
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either fostering or hindering entrepreneurs. The ability to take risks and establish a business can
also be influenced by one's financial status.
 Risk management- Risk is the important part of a business, which is important for a
company to develop risk free operations. Risk is present at the marketplace in a major
sense which directly impacts on a business entity. This is important role of a business to
focus on risk management for long term development of business.
 Employee management- Providing good working conditions is important duty of a
business in order to gain desired success at the marketplace. Also the key focus of a
business, to develop management of employees for focused business growth. In the
recent times, employee management is major function or task of management which
increases employees’ productivity.
 Operations and production management issues- The operations and production
management is also an important body of a company to develop quality production. The
operations management deals with production of a company and also ensures optimum
utilisation of resources.
 Lack of professionalism- The professionalism is a major business approach which
develops effective edge in competition life. The professionalism brings systematic
development of a company in order to analyse different market goals. The
professionalism is also related to providing good training and development by an
entrepreneur for focused business growth.
 Time management issues: Managers at the corporate firm needs to keep track of time
management techniques in the business firm. This forms as an effective basis of
productive working of the business firm and enables productive working in the business
market. It conveys better understanding of business environment and deliver completion
of operational tasks within specified period of time.
Analyses the link between entrepreneurial characteristics and the influence of personal
background and experience to specific successful entrepreneurs
The characteristics of a successful entrepreneurs mainly influence the background and
experience and it is essential for them have a proper understanding about culture and policies of
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country. In this they also have full support on the families that is crucial to become a renowned
entrepreneur. Hence traits and characteristics of entrepreneurs are highly based on experiences
and qualification.
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CONCLUSION
From the above report it is concluded that entrepreneur are the people who emphasis on
converting their ideas into reality to satisfy the needs of customers. There are various types of
ventures present in business industry such as social enterprise, large, small that are associated
with typologies of an entrepreneurship. Small and start-up firms are those who contributes in the
economy by providing job opportunities, revenues, profits etc. that are essential to improve
standard of living of the individual person lives in the community. Hence this also elucidates
variety of skills, traits, characteristics that are needed among an entrepreneurs in order to become
successful entrepreneurs in the business industry.
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