Documente Academic
Documente Profesional
Documente Cultură
Business Management
1
Table of Contents
Introduction ................................................................................................................ 3
Task 1 ........................................................................................................................ 3
1. Define entrepreneurship. .................................................................................. 4
2. Explain what is involved in entrepreneurial activity and enterprise. .................. 4
3. Identify different types of entrepreneurial ventures by considering
entrepreneurship in a corporate or public sector context. ....................................... 5
4. Explain the various venture types. .................................................................... 7
5. Explore the similarities and differences between entrepreneurial ventures. ..... 8
Conclusion: ...............................................................Error! Bookmark not defined.
From the above report, the similarities as well as differences between the various
entrepreneurial ventures is clear. ................................Error! Bookmark not defined.
Task 2 ...................................................................................................................... 10
Introduction: ..............................................................Error! Bookmark not defined.
The main objective of the following report is to focus on the relevance of the small as
well as micro businesses for the development of the economy as well as social
development of nation. ................................................Error! Bookmark not defined.
1. Explain what is meant by Micro and Small Businesses drawing information
from the relevant data. .......................................................................................... 10
2. Identify 2 small type firms in the U.K and their contribution to the UK economy
at national, regional and local level. ...................................................................... 10
3. Do an assessment of the role and the impact of micro and small businesses
on the UK economy. ............................................................................................. 11
4. Analyse how small businesses and business start-ups is important to the growth
of the social economy. .......................................................................................... 11
5.Do a critical examination of how small, medium and large businesses have an
impact on different level of economy. .................................................................... 12
Task 3 ...................................................................................................................... 13
1. Are entrepreneurs born or made? .................................................................. 13
2. Explain what makes up an entrepreneur mindset. .......................................... 14
3. Drawing from the given entrepreneurial characteristics do a critical analysis of
how these factors (family upbringing, lifestyle,cultural differences and personal
motivational drivers) could influence entrepreneurial characteristics. .................. 15
Task 4 ...................................................................................................................... 16
1. Explain the various environmental factors that could impact on
entrepreneurship ................................................................................................... 16
2. Critically evaluate how background and experience influence entrepreneur
both positively and negatively. .............................................................................. 17
2
3. Analyse the link between entrepreneurial characteristics and influence of
personal background and experience to specific successful entrepreneurs by
Identifying 2 successful entrepreneurs. ................................................................. 17
Conclusion: .............................................................................................................. 18
References: .............................................................................................................. 19
3
Introduction
Define entrepreneurship.
Any individual who is willing to create a new business and undertake the various risks
involved in it is said to be an entrepreneur (Kirzner, 2015). Thus, entrepreneur is said
to be a person who creates a new business and manages the new business.
Entrepreneurship is the term used for the process of converting the business
opportunity into something useful for the society by innovating and uniqueness which
creates value for the society. Thus, it can be defined as the process of creating a new
business with limited resources by means of utilising the given opportunity and
undertaking various risks involved so as to provide innovative products as well as
services to the society (Burns, 2013).
For the better economic development of the nation, the existence of different types of
entrepreneurial ventures is of great importance (Carter and Evans, 2012). Due to
4
increasing competition and technological advancements, the essence for innovation
in business has become the demand of the time. This strongly requires for
entrepreneurial ventures as they bring in the society new and innovative products and
hence fulfils the various requirements. However, most of the entrepreneurial ventures
in UK accounts for small or medium scale start-ups. The entrepreneurial activities
includes taking initiatives to start a new business project based on new idea or
creativity, doing research for the new business idea, its feasibility, taking opinions, risk
taking, management of various activities, being responsible and taking responsibility
for the whole new business, commitment as well as utilising self-skills. The new
business enterprise resulting from entrepreneurial activities can either be small
enterprise or medium scale enterprise. Enterprise mainly refers to undertaking a new
project or a whole new concept. It can be defined in simple terms as a business
company or a business organisation depending on its size and concept.
5
products and services within an established business organisation so as to create
value and generate increased revenue for the growth and success of the business.
For example: Verdant Leisure, which is a holiday park company in UK and Captify,
which is a company which specialises in media intelligence as well as search
intelligence are among the top Medium-sized enterprises of UK.
For Example: Shell Plc., Tesco Plc. etc. are among the large enterprises of UK.
6
The enterprises explained above relates to the typology of entrepreneurship. Most of
the small scale or medium scale enterprises belongs to public sector entrepreneurship
while large organisations are often categorised under corporate entrepreneurship.
Growth Firms: Growth firms are being referred so as they grow at a rapid speed and
carry out business operations with the prime objective of making large profits for the
business. They aim to expand its business operations rapidly by creating new products
and services so as to make large amount of money (Baum, et.al, 2014).
7
their vision as well as their mission (Kirzner, 2015). However, there is a large amount
of risk involved in scalable start-ups businesses. Most of the financial resources and
monetary assistance for the running of the operations of such businesses are provided
by venture capitalists.
The main similarity in all the entrepreneurial ventures is the reason behind their
existence i.e. to make profits and generate revenues. However, the other differences
and similarities are summarised in the table below:
Lifestyle Firms The business The primary The main Lifestyle firms
entrepreneurships objective behind capital for the provide services
8
where the business business business is for bettering the
operations as well as activities is to obtained lifestyle of the
the activities of the generate through society but they do
business are carried revenues by investors. not provide
out as per the making use of employment
lifestyle of the passion and opportunities on
business’s owner desire. large scales.
(Carter and Evans,
2012)
Social Social They aim to The capital is They make the
entrepreneurships greatly impact provided in lives of the
provide services for the society. accordance society’s people
the betterment of the with the size of better by
society by providing the social innovating services
them with innovative enterprise. (Kirzner, 2015).
products.
9
speed and carry out stakeholders by investors or by providing
business operations means of bank loans. employment and
with the prime acquiring other making large
objective of making firms. amount of profits.
large profits for the
business
Task 2
Micro businesses may be defined as the small businesses who have small number of
employees ranging from 0-9. They are generally assumed to have a balance sheet
less than 2 million pounds (Kirzner, 2015). On the other hand, any business which has
less than 250 employees working for them are said to be small businesses. As per the
data of the year 2014, the small businesses in UK accounts for 99% of the total UK”s
businesses.
Identify 2 small type firms in the U.K and their contribution to the UK economy
at national, regional and local level.
Among the many, we have identified two successful small business of UK which are
Issoria which is a change management consultancy firm and Mantons Cards which
provides the best greeting cards and gifts to the society. Their impact on the local,
regional as well as national economy is as follows:
Local Level: At local level, these small firms contributes in the economic development
by employing people of the region where they operate. The size of the firms are often
in the range of 10-50 employees which gets employed by small firms. It also
contributes to society by providing innovative and unique services and products which
leads to profitability and hence increased economic growth. (YesGrowth, 2014)
10
Regional level: They also contributes in the regional development by bringing
competition in the market by means of introducing better as well as unique and
innovative services and products which increases the annual turnover i.e. almost 44%
of the UK’s annual turnover accounts for Small enterprises. (YesGrowth, 2014).
Do an assessment of the role and the impact of micro and small businesses on
the UK economy?
For the development of the national economy of UK, the existence of micro as well as
small businesses is of great significance. They are the main factor behind the
economic growth of the UK and are therefore seen as the lifeline of the UK’s national
economy. Another reason that makes them extremely important for the economic
development is the large amount of employment that is provided by SME’s. Therefore,
for the economic sustainability of the nation, the contribution of small and micro
businesses is of much relevance (Allan, 2014). This is the reason why majority of the
small businesses are favoured and given preference by government of UK. Almost
14% of the annual turnover accounts for small businesses as well as 99% of the UK”s
businesses are categorised as small business. Also they generate almost 44% of the
total revenue that gets generated by UK’s economy every year (Myers, 2014). Most of
the UK’s workforce is employed by small as well as micro businesses and therefore
SME’s helps in raising the living standard of people of UK by contributing in the per
capita income of people of UK. Besides, they are also responsible for providing people
with quality and innovative products and services as a result of which their lives
become better. Majority of the taxes are collected from small and micro businesses
and hence they contribute in the national economic development.
Small businesses and small scale start-ups are vital for the social economy of UK and
this is because of the reason that they provide employment opportunity to major
11
portion of UK’s total population and therefore are the major source of their earnings
(Myers, 2014). Almost 60% of UK’s workforce are employed by small as well as micro
businesses and business start-ups. They also accounts for almost 44% of the UK’s
annual turnover. In this manner, they significantly contribute in the growth of the
nation’s social economy. Majority of the UK’s businesses accounts for small and micro
businesses i.e. almost 99% of UK’s businesses are categorised as small businesses
and business start-ups. The large amount of innovation and creativeness in the society
is the result of small businesses. In addition to this, the unemployed women are also
given employment by these small businesses and hence they help in their social
development. Also they provide society with innovative products which improves the
quality of the life of the people of the nation. As a result of employment opportunities
provided by small businesses, the income of the common people increase which in
turn improves their lifestyle and therefore they contribute significantly in UK”s social
development as well (Kola, 2014).
12
in the economic development by employing people of the region where they operate.
For example: Almost 60% of UK”s workforce are employed by small businesses. They
also contributes in the regional development by bringing competition in the market by
means of introducing better as well as unique services and products which increases
the annual turnover which is almost 44% of the UK’s annual turnover. They help in the
national economic development by contributing in the form of taxes from their incomes.
From the above report, it can be concluded that small businesses and micro business
provides regional, local as well as national economic development to UK.
Task 3
The following report is focussed on whether the entrepreneurs are born or made and
the various characteristic traits that are possessed by an individual in order to become
successful entrepreneur.
In order to understand whether entrepreneurs are born with the characteristics or are
made, we can take the example of two successful entrepreneurs. Firstly, we will
consider the example of one of the most successful entrepreneur as well as one of the
richest personality across the globe who created history by creating a social website
in the year 2004 i.e. Mark Zuckerberg. The second successful entrepreneur which we
will consider here is J K Rowling, the author of the largest selling book till now i.e.
Harry Potter”. The areas where these two entrepreneurs got success are entirely
different from one another and do not match but these two entrepreneurs have similar
characteristics which made them successful. The main characteristics that is common
in both of these entrepreneurs is the passion for their interest and the desire to give
their best so as to achieve success. In addition to this, they both were strongly
confident of their work and therefore worker independently to achieve their goals
(Kimm, 2015).
Thus, it can be said that the entrepreneurs are similar to managers but they differ
slightly in their characteristics. However, based on above it can be assumed that
entrepreneurs have special characteristics and personality traits and therefore they
13
are born and not made as it is not possible for an individual to have such
characteristics by learning. The entrepreneurs become successful as a result of their
hard efforts and their confidence in themselves.
The various skills and characteristics that are possessed by entrepreneurs and which
make them different from managers are as follows:
Inner Passion and Desire: The entrepreneurs are characterised by their passion
for their work and their inner desire which is to achieve success at any cost (Mind
Tools, 2018).
Risk Takers: Entrepreneurs are great risk takers as they analyse their present
situation and based on that they make future forecasts and make their decisions.
Clear Vision and Goal: Entrepreneurs have the common characteristics of clearly
seeing the future and therefore they have the ability of having clear goals and vision
based on which they bring a change in the society.
Strong Belief in themselves: Again, all entrepreneurs have this common
characteristics of believing in themselves and their dreams.
Innovators: Entrepreneurs are born innovators. They do the same things again
and again in several different ways.
Flexible: Entrepreneurs have this special characteristics of being flexible as in
order to achieve their dreams and to convert them into reality, they adapt
themselves easily as per the requirements of the environment (Cherry, 2017).
Highly Competitive: Entrepreneurs believe that in order to be successful, it is very
important for a person to have a tough competition as competition makes the
person try better.
Accepting Criticism and Rejection: Another major characteristic possessed by
successful entrepreneurs is their capability to take rejections as other opportunity.
They try to learn from their mistakes and rejections and this keeps them motivated
to perform even better (Cherry, 2017).
14
The personality of the entrepreneurs as well as their motivational mind-set are closely
related with each other. The personality traits that influences the motivation and mind-
set of entrepreneurs are described as below:
The personality of the individual is made up of his attitude, temperament as well as his
character. It is the personality of the individual that has a strong influence on his
working style as well as on performance. The personality of the entrepreneurs starts
developing from their childhood stage as this is the result of the upbringing given to
the entrepreneur. However, the traits of motivation and entrepreneurial mind-set is the
result of the environment in which the person grows and his upbringing takes place.
The impact of family as well as the community where the culture differences are being
taught is significant as the children learn various skills from their family and community.
15
The personality as well as the various characteristic traits and their lifestyle makes
them successful as they do not have the objective of working for making profits instead
they work to bring change in society by means of innovation and creativity
(Schumpeter, et.al, 2012). In addition to this, personal motivation factors such as
willingness to achieve success and be competitive also adds to the entrepreneurial
activities and have a major impact on the personality of an entrepreneur.
Task 4
In the following report, we will discuss the impact of the various environmental factors
on the entrepreneurship. The effect of background and education is also discussed in
the following report.
The impact of the various environmental factors is crucial for the success of
entrepreneurship firm. The various environmental factors that could foster or hinder
entrepreneurship are explained as below:
16
Financial Factors: The various sources of funding and their availability also plays
a crucial role and therefore are considered to impact entrepreneurship.
The various entrepreneurial skills as well as the entrepreneurial mind-set are greatly
influenced by the background as well as past experiences of an individual. This affects
the way the entrepreneur carries out their business activities and handle various tasks.
The way the entrepreneur manages their businesses varies from one entrepreneur to
another as each individual is different (Schumpeter, et.al, 2012). Hence, the decisions
taken by different entrepreneurs also differs as their decision making skills are greatly
influenced by their past experiences, their education as well as their surroundings. The
various experiences gained by the individual throughout the lifetime decides their
various characteristics such as personality, attitude as well as behaviour. The various
entrepreneurial skills are also influenced by these past experiences. In addition to this,
the education given to the person and the surroundings where they have been brought
up also affects their characteristics and their personality. The social and cultural
factors also plays a significant role in the entrepreneurship personality. The
entrepreneurship personality also depends on economic factors such as financial
sources and economic stability of nation. However, characteristics like innovation as
well as the ability to think different is inherited in an individual since birth but then also
the skills acquired on the basis of the experiences from past influences the success
criteria of an entrepreneur. The characteristics such as the ability to take risks are also
gained from the life’s past experiences.
The following examples clearly explains that entrepreneurial characteristics and traits
are greatly influenced by surroundings and past experiences:
17
Richard Branson, one of the most successful entrepreneurs, has a great influence of
the past experiences and background. As a result, on the basis of his past experiences
he decided to follow his dreams by taking risks and became a successful entrepreneur.
His background and the past experiences enabled him to acquire risk taking ability
and the confidence. He knew how to come out of every difficult situation as he had the
knowledge of handling difficult situations based on his past experiences (Branson,
2013).
Another example is the famous entrepreneur J K Rowling, who was also influenced by
her past experiences and her background. She became rich from extremely poor. As
she belonged to the poor family, therefore she always dreamt of becoming successful
one day. Her success is the result of her passion as well as strong desire to become
famous and rich and successful as well. In spite of having negative family, she dared
to take the risk on her own and became successful (Hessinger, 2015).
From the above report, it can be said that the entrepreneurship as well as the
entrepreneurship mind-set is greatly influenced by the background and the past
experiences from life.
Conclusion:
The above assignment is based on the entrepreneurship and the small business
management where we have discussed all the important aspects concerning the
entrepreneurship. In the above assignment, we have also discussed the various
characteristic traits of the successful entrepreneurs and in order to understand this
better we have considered the examples of famous and successful entrepreneurs. The
impact of the education, background and the past life experiences on the success of
18
the entrepreneurship have also been discussed in the above assignment and the
various environmental factors that either foster or hinder the progress of
entrepreneurship have been discussed as well.
References:
Allan, J., 2014. Small businesses are the UK’s greatest advantage- we must help
them look overseas. [Online] The Guardian. Available at:
https://www.theguardian.com/business/blog/2014/jul/02/uk-small-businesses-
look-overseas-growth [Accessed 05 April 2019]
Branson, R., 2013. Richard Branson on Taking Risks. [Online] Entrepreneur Mag.
Available at: https://www.entrepreneurmag.co.za/advice/business-
leadership/leading/richard-branson-on-taking-risks/ [Accessed 05 April 2019]
Burns, P., 2013. Entrepreneurship and Small business. Palgrave MacMillan.
Baum, J.R., Frese, M. & Baron, R.A., 2014. The Psychology of Entrepreneurship,
Psychology Press
Carter, S., & Evans, J.D., 2012. Enterprise and Small Business: Principles,
Practice and Policy. Pearson, London.
Cherry, K., 2017. The Big 5 Personality Traits. [Online] Very Well. Available at:
https://www.verywell.com/the-big-five-personality-dimensions-2795422
[Accessed 05 April 2019]
Hardoon, A., 2015. The importance of small businesses in the UK economy.
[Online] Small Business UK. Available at: http://smallbusiness.co.uk/the-
importance-of-small-businesses-in-the-uk-economy-2492626/ [Accessed 05 April
2019]
Hessinger, S., 2015. 10 Mindsets of Successful Entrepreneurs. [Online] Small Biz
Trends. Available at: https://smallbiztrends.com/2013/10/successful-
entrepreneur-mindset.html [Accessed: 05 April 2019]
Kimm, L., 2015. 11 Most Famous Entrepreneurs of All Time (and What Made
Them Wildly Rich. [Online] Inc. Available at: https://www.inc.com/larry-kim/11-
19
most-famous-entrepreneurs-of-all-time-and-what-made-them-wildly-rich.html
[Accessed 05 April 2019]
Kola, V., 2014, Impact of Startups and the importance of their socio-economic
contributions, [Online], Available at: https://yourstory.com/2014/11/impact-of-
startups/ [Accessed 05 April 2019]
Kirzner, I.M., 2015. Competition and Entrepreneurship. University of Chicago
Press.
Mind Tools, 2018. Entrepreneurial Skills. [Online] Mind Tools. Available at:
https://www.mindtools.com/pages/article/newCDV_76.htm [Accessed 05 April
2019]
McAllister, J., 2016, The importance of small businesses in the economy,
[Online], Available at: https://www.makeitcheaper.com/blog/the-role-of-small-
businesses-in-the-uk-economy.aspx [Accessed05 April 2019]
Myers, M., 2014. UK rises to fourth most entrepreneurial economy in the world.
[Online] Imperial. Available at: https://www.imperial.ac.uk/news/162146/uk-rises-
fourth-most-entrepreneurial-economy/ [Accessed 05 April 2019]
Schumpeter, J.A., Becker, M.C., Knudsen, T., & Swedberg, R., 2012. The
Entrepreneur. Stanford University Press.
Storey, D.J., 2016. Understanding the Small Business Sector. Routledge.
YesGrowth, 2014, The economic importance of small businesses, [Online],
Available at: https://www.yesgrowth.com/knowledge-centre/sme-issues/the-
economic-importance-of-small-businesses/801747318 [Accessed 05 April 2019]
20