Characteristics, Traits and Skills of Successful Entrepreneur

TASK 1

P1. Different types of entrepreneurial ventures and the way they relate to the typology of entrepreneurship

Entrepreneur refers to an individual who runs a business with limited resources and take in account all the profits and risks associated with their venture. These people bring new ideas to market and anticipate current and future needs of economy. Different types of entrepreneur ventures are:

• Small Business Entrepreneurship: These are grocery stores, hairdressers, local and regional supermarkets, internet cafe, electrician, etc. These individual hire family members or local employees to operate their business. Motive of these entrepreneurs is to feed their family through business, rather than profit maximisation. These ventures could not atract large scale capital due to this they obtain money from there family and friends for running their business operations.
• Scalable Entrepreneurship:These ventures are different from small scale business. This type of entrepreneur starts up a company with a different vision and focus more over quality and creative aspects in work. This is the reason they employ highly efficient and competent workforce who share different vision. This form of venture involves higher amount of risk and requires a large amount of capital to support growth and expansion of business (Baum, Frese. and Baron, 2014).
• Large Company Entrepreneurship:This refers to large corporations who have finite life cycle and sustainability mainly because of persisting products and services in the market. Many large companies grow because of sustaining innovation in their existing products/services. But due to change in taste, preferences, choices and demands of consumer which force large companies' to bring innovations in their products, either by entering into new markets or through producing a complete new products to be sold in existing market. For example; IKEA, Tesco are working as big organization. These firms contribute well in economic development of nation. They generate high profit and provide high quality goods and services to consumers so that they can feel satisfied (Kirzner, 2015).
• Social Entrepreneurship:This form of venture focuses over the needs and demands of society and fulfil them. Unlike, other entrepreneurs there focus is to produce those products/ services which meets demands of the society. They work towards concept of making world a better place. These kinds of entrepreneurs can be Non-profit, Hybrid or for profit.

Relation to Typologies of Entrepreneurship:

• Serial Entrepreneur:It refers to those entrepreneurs who often come up with new ideas and help in establishing new business. Unlike other entrepreneurs, serial entrepreneurship provides new ideas and help in getting things done and then passes on the responsibility to others with looking for other new venture and ideas.
• Female Entrepreneur:In these forms of ventures,women or group of females organise or arrange all the factors of production, provide employment to individuals and undertake all the risks of business. It is an innovative concept.
• Social Entrepreneur:This kind of entrepreneur develops funds and help companies or small businesses with finding solutions to cater environmental, social and cultural problems (Drucker, 2014).

P.2. Exploring the similarities and differences between entrepreneurial ventures

Similarities between Social and Scalable Entrepreneurship are:

• These ventures support a vision of making world a better place through their collective efforts of providing a unique vision and by fulfilling needs of people.
• Both ventures run for a profit motive.
• It requires a large amount of capital venture to support their business.

Differences between them:

Similarities between Small scale and large Corporations Entrepreneurship are:

In both ventures' entrepreneur employs there family members.

Entrepreneur has exit strategies in context of their specific business.

Differences between them:

TASK 2

P.3. Illustrating the way micro and small businesses impact on economy

Small business ventures are the backbone of UK economy. Most people are well aware of the impact they are creating in country.Being the baseof innovation and new ideas, they generate possibility ingrowth and expansion of economy. UK has shown a massive record of start-up in the past few years and this trend is going on.

The impact of micro and small business on economy is:

• Employment:Small scale venture helps in reducing unemployment in economy and provides high contribution in job creation in the UK. Depending upon the size of ventures, they employ in different proportions. The total employment in SME was 15.7 million that constitutes around 60% of total population. Whereas, small business has employed 12.5 million people (Devi and Goswami, 2014).
• Turnover:It is an important aspect to calculate the economic growth and contribution by any sector in society. Micro business has provided impressive figure and given combined contribution of £1.8 trillion in the beginning of 2016 which constitute of 47% of total contribution of private sector.
• Growth:These businesses show an excellent growth in the past few years. Innovation is the key success for growth of such ventures. SME keeps the market fresh and generates opportunities for unproductive and stagnant firm. These ventures reported an immense growth of 50% in from beginning of 2016. It plays a key role in lifting economy of UK from global recession of 2008 (Vesperi, Reina and Gentile, 2015).
• Impact on Industry:UK comprises of two main types of industries which are, manufacturing and retail. SME dose a maximum contribution towards these industries. Almost very three business out of ten small ventures fall into this category. This makes micro and small business as an important part of economy of UK.
• They have shown a great impact on the UK economy and thus, they are a vital part of industry and needs to be supported with proper funding.

P.4. How small businesses and business start -ups will contribute to the growth of the social economy after‘Brexit'

Brexit is a termed used in relation to withdrawal of UK from European Union on June 23, 2016. This withdrawal has changed scenario of UK economy. It has brought several amounts of changes in working of various sectors of economy. The impact of Brexit on small and medium size business has shown positive effect. The Small scale industry like engineering and service sector has shown a growth with increasing number of client from other parts of Europe. Contribution of Small Business and Start-up are as follows:

• Gross Domestic Product:The large part of UK GDP is build up by small scale Industries. These ventures are lifeblood of the economy of UK with increase in sales of products/service provided by them it has boosted the GDP of country to 0.5%. This graph has shown a good growth after post Brexit.
• E-business: The Brexit has provided opportunity to small business and ventures who can expand there business to other areas of Europe. The small scale industries has helped in flourishing E-business of UK as due to financial crisis the large scale industry cannot operate properly (Woodward, Wojnicka and Pander, 2012).
• Better products/service:After Brexit many customers prefer to spend money over better quality products/services. The small and micro industries has served the concept by providing quality rather than quantity of product.
• Help in being Self-sustain:The growth in small scale industry in UK help in being self-sustain in producing essential goods for economy. They have promoted local economies by creating more stable structure. Small scale business has helped in forming multiple small industries and reduces dependence on fewer large companies.
• Provides Sustainability and Stability: It has offer sustainability in working of economy by providing stability in workplace for base line employees. Further, it helped in achieving concept of “buy-local” which promotes employment and generate revenue to economy(Hangarki and Hangarki, 2012).
• Opportunities for New Venture:Small scale business has helped many employers to enter into new ventures to expand it business and increase it profits. After Brexit, a new venture i.e. electronic cigarette industry was developed which shows a rapid expansion. It was possible due to small scale industries of UK. Similarly, new shops are opened daily which sell there products both on street of UK and over online platforms.

TASK 3

P.5. Explaining the characteristic, traits and skills of successful entrepreneur which differentiate them business manager

Entrepreneur is the person who is made his own company with innovative ideas but manager is person which is working for the firm. One is working for its own and another which is working under firm and can't work for himself (Bytyçi, 2015). He is governed by superior person. In this Bill Gates has started his entrepreneur in computers and Anita Rod dick in retail. Some characteristics which make clear their roles are :

Skills

• Innovation- in entrepreneur creativity is more important in product and services. Person who is starting new business has to work on the this. It makes the product different from others. Similarities are more than something new. But in case of manager this skill is not much needed in doing work. Requirement is modifying the working manner. It is very much required because they get bore while doing the same work again. The main work is applicability of management principles in various situation.
• Risk- Manager as well entrepreneur has risk in their profession. Bill Gates is known name but if he has not taken risk about starting a venture then his hidden talent cannot came out in front of people. Sometime failure is also there in taking decisions but it can be a learning experience. He has look to after overall activities of firm. In business manager his decisions regarding his profession can be different. Mostly he has to manage the regular activities which are prevailing (Catalina, 2013).

Characteristics and traits

• Planning- entrepreneur has make decisions looking for future. Before launching any product Bill Gates has done market research and according to that what are the future requirements are known to him. This is resultant of future planning. Sometime situation are there in which organisation present decisions are affecting future as well. Manager need not to plan things. Every situation is new and applicability of principle are different. He has to face the present circumstances and there is no use of making future planning.
• Advantage of competitor - entrepreneur on continuous basis doing improvement in the product from which he is ahead of its contenders. Understanding of market made his move. In case of manager foresightedness is not needed. All the work are done looking towards the present condition (Cantaragiu, 2012).

P.6.How entrepreneurial personality reflect entrepreneurial motivation and mindset

Entrepreneur poses various traits and skills like risk taking, innovation, developing new ideas. These skills of entrepreneur make them a successful business person. These aspects contributed by entrepreneur shows that there is great correlation between the motivation and mindset of entrepreneur with there personality. The term entrepreneurial mindset refers to have specific set of mind which orientates human towards those activities which are required to be conducted by an entrepreneur. It means an individual should have a mindset which draws innovative ideas and opportunities. Anita Roddick a co founder of Body shop a famous cosmetic company that deals in natural beauty products. The charismatic personality and clear vision has helped her to stand alone and be an entrepreneur. This help her to make difference between other business manager and herself. Roddick has faced hardships in her early days when she opened her initial store in 1976, this shows her quality of being independent and freedom oriented person. Anita was innovative person as she opened a shop with a vision of providing quality products in market. Entrepreneur motivation which drives her to make a voluntary contribution towards society. She became human right activist and started campaigning on social issues.

Bill Gates who is the owner and founder of Microsoft Corporations. William Henry Gates was born and brought up in an environment of freedom and creativity this made him pursue his dreams and become an owner of leading personal computer software company. Gates has a risk taking quality which made him different from others, he took a risk of dropping his career and opt for starting his own software company. This trait of Bill Gates made him today the world richest man. Gates after leaving Microsoft decided to become a philanthropist, author, investor and humanitarian this shows the skill of being a visionary and creative. During his career in Microsoft, Gate has held many position like, chairman, CEO and chief software architect this shows how persuasive he was. Bill Gates has an excellent management style which help him to understand there fellow mentors and collogues he used to make a regular visits to check on the strategies and there risk to the business these skills contributed towards overall mindsets and entrepreneurial motivation.

TASK 4

P.7.Examine how background and experience can hinder or foster entrepreneurship(support answer with an example)

Experience and background of an individual plays a great role in formation of person as an entrepreneur. The traits, characteristics and skills poses by each entrepreneur is different. They have different approaches when it comes to decision making or business. Traits like self- management, motivation and confidence, etc. are derived from education and life experiences. These factors foster or hinder the growth of entrepreneur and help individual to overcome all challenges and obstacles that arises in there journey. To show how they affect an entrepreneurship here is an example of a great entrepreneur known as Mark Zuckerberg.

Zuckerberg co-founded a social networking website which is popularly known as Facebook from his college dorm room. He was passionate towards his interest in computers and he developed his interest in it at very early stage. The software developed by him was used by his father in his dental shop. This encourages him to pursue his career into this field. Being, having a strong family support has encouraged him to be strongly committed towards it dreams. Assessing a positive attitude towards life and clear business vision is formed through educational and life experience he received. Entrepreneur has an ability of taking risk and this made him different from others, Mark Zuckerberg has taken huge risk of dropping his educational career and developing a software program. This step taken by him shows that he has capability of taking risk and creating different from others. The reason behind his huge step is because of having a strong family support who believes in his idea. Zuckerberg has a innovative mind he developed a website which allows people to create their own profile and get connect to there friends and other people around them. This innovative vision of Mark has made Facebook one of the largest operating website with more than 6 billion users from around the world.

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CONCLUSION

Entrepreneur is important assets to economy of every country, they encourages innovation and new ideas in market. The entrepreneur help economy to flourish and grow as they generate employment for large number of people. Further, they help in earning huge amount of revenue and contribute large job creations.

You may also like: Different Types of Entrepreneurial Ventures

REFERENCES

• Baum, J. R., Frese, M. and Baron, R .A. eds., 2014.The psychology of entrepreneurship. Psychology Press.
• Drucker, P., 2014.Innovation and entrepreneurship. Routledge.
• Kirzner, I. M., 2015.Competition and entrepreneurship. University of Chicago press.
• Kuratko, D. F., 2016.Entrepreneurship: Theory, process, and practice. Cengage Learning.
• Santos, F. M., 2012. A positive theory of social entrepreneurship.Journal of business ethics.111(3). pp.335-351.
• Schaper, M. T. and et.al., 2014.Entrepreneurship and small business.
• Devi, A. and Goswami, G., 2014. Women enterpreneurship development in Assam with special reference to Kamurp district, India.The Clarion.3(1). pp.149-156.
• Vesperi, W., Reina, R. and Gentile, T., 2015, September. Academic Knowledge Vs Enterpreneurship: The Spin off way. InEuropean Conference on Knowledge Management(p. 828). Academic Conferences International Limited.
• Woodward, R., Wojnicka, E. and Pander, W., 2012.Innovation Systes and Knowledge-Intensive Enterpreneurship: a Country Case Study of Poland(No. 0446). CASE-Center for Social and Economic Research.
• Catalina, I. C., 2013. SOCIAL ENTREPRISE-THE ENGINE OF SOCIAL ENTERPRENEURSHIP.Managerial Challenges of the Contemporary Society. Proceedings.5. p.77.
• Cantaragiu, R., 2012. Towards A Conceptual Definition Of Academic Enterpreneurship. In5th Annual EuroMed Conference of the EuroMed Academy of Business, Glion-Montreux, Switzerland.
• Bytyçi, I., 2015. Enterpreneurship and Inovative SME'S as a key of Economic Development-Kosovo case.European Journal of Business Economics and Acountancy, 2015 (14-21).
• Hangarki, S. B. and Hangarki, K. B., 2012. Development of women enterpreneurship in India.International Journal of Marketing and Management Research.3(1). pp.26-37.

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