Entrepreneurship and Small Business Management
In this report, the success history of some famous entrepreneur is going to be focused. In the same way, their contribution to the economic development from the past decades to present era will also be taken account. An organisation that has been set up by a successful entrepreneur becomes an autonomous body and makes some instance before other competitors(Bosma, et al., 2012). It is the proven truth that the strong mindset of a successful entrepreneur makes their organisation unstoppable than other organisation that has weak motivation. In this assignment firstly five traits and skills of some successful entrepreneur havefocused on for making out the reason behind their success history in the life. It is said that what a person think that he or she becomes. Hence, personality traits of an entrepreneur are related to their performance. Therefore, the main aspect of this assignment will be to observe the environment by which an organisation becomes active, different strategy taken by the successful organisation and the personality characteristics of the entrepreneur.
Task 1: Key aspects of an entrepreneurial mindset
1.1. Characteristic traits and skills of successful entrepreneurs
As a consultant of the Digiterra Group in the UK, the characteristic of personalities and skills of some successful entrepreneurs should be enlightened. Here some top UK entrepreneurs have been taken account for understanding the key to success in any field(Caliendo, et al., 2014). The wealthiest diamond company all over the world is Graff Diamonds, and its founder is Laurence Graff. Another wealthiest engineer in the UK is James Dyson who built a better vacuum cleaner, Philip Green is the CEO of a retail company named as Arcadia Group, The CEO of Virgin Group is Sir Richard Branson, Reuben Brothers is well-known entrepreneurs for their metal trading business worldwide. All of them had remarkable personalities to become rags-to-rich. All successful entrepreneurs have some skills and traits behind their success history.
The passion will be necessary for the purpose of running a small business. Before starting any business with full efforts, one must have to optimistic. The entrepreneurs would have to keep up hope all the time.
Any entrepreneurs must have some qualities to sell the final products to its end users. The identification of sources for selling, it is up to the quality of the business manager (Chaston & Sadler-Smith, 2012).
Holding the strong perspective is vital for all business owners. The entrepreneurs will have to learn from the failure to survive as a business owner.
Only lump sum investment in the business does not mean that the firm will stay in the market for a good length of time. The continuation of cash flow is mandatory for an entrepreneur(Bae, et al., 2014).
1.2. Aspects of the entrepreneurial personality reflecting entrepreneurial motivation and mindset
The high growth rate of an organisationis associated with the potential mindset of the entrepreneur. The innovated ideas of an entrepreneur make the positive intention of growth(Elmuti, et al., 2012). The potential elements are the mainstay of an entrepreneur for expanding their organisation. The personalities of a business owner are identified in such a way.
It is said that the failure is the key path tosuccess while learning from the past failure. Indeed, the failure helps the successful entrepreneur to make a new strategy to achieve success in the upcoming future (Chell, 2013). All successful entrepreneurs followed one statement “Never give up” and need to continue for finding new ways.
The positive attitude of the successful entrepreneur will enhance the financial background of an organisation. The entrepreneur mentioned above followed their heart rather than their mind. If conflicts were raised between mind and heart to make any favourable decision, their strong desire smoothed the difficult way (Wright & Stigliani, 2013).
Before attaining success, every successful entrepreneur passed through many difficulties. Although, they never yield to any external threats, as they often face. Their dream came to reality because of their strong sense of self(Altinay, et al., 2012).
The entrepreneur must have the ability to predict future before it happens. For instance, Jeff Bezos entered into the electronic retelling business with a small investment in 1994 but his willpower set up the world’s number one consumer-centric company.
All motivation of the entrepreneur modified their old plan and changed the circumstances. Hyungsoo Kim was one of them(Canina, et al., 2012). He was the founder of company None that developed a wristwatch for the blind people.
1.3.Different lines of argument relating to entrepreneurial characteristics
There are various characteristics of the entrepreneurial in the business world. The characteristics of the successful entrepreneur have influenced the entrepreneurship. It also has some argument which was relating to the entrepreneurial characteristics (KAPLAN, et al., 2012). There are main four factors about which factors are different lines of argument. Those are intelligence, leadership skills, attitude and knowledge. A market researcher said that there is a distinction between general intelligence and entrepreneurial intelligence and also the distinction between an inventor and an entrepreneur. The researcher explained that an inventor is not interested in the economic characteristics of business, but an entrepreneur may not be right either. There is a huge argument about the leadership skill. Different entrepreneur follows different leadership style. The power of leadership skill may affect the overall business(Estay, et al., 2013). Various kinds of an attitude of the successful entrepreneurs may influence the entrepreneurship. There is a different argument about the attitude of the entrepreneurs. Knowledge is the most important characteristics of the entrepreneurs. In any business knowledge is an essential aspect of the business. There is a huge argument for the different knowledge in a different kind of business.
1.4. Characteristic traits, skills and motivational drivers of successful entrepreneurs
It is believed that an entrepreneur has some particular personal traits and skills than a corporate manager. Their self-discipline and attitude of innovation make this gap between an entrepreneur and a corporate manager (Valdez & Richardson, 2013). The mentality to take risk helps them to tolerate stress. Those skills and traits of the entrepreneur will be discussed with some evidence.
Starting up a new business has become an ultramarathon now a day. However, to be a successful entrepreneur one should able to live with uncertainty. Taking about Mike Colwell, a successful entrepreneur who got job offers but he wanted to make something large (Sánchez, 2013). He set up consulting company named as Carrier Direct, in Chicago. Now net worth of this organisation is around $35 million.
It is the typical situation of an organisation to go through the losses. The risk-taking mentality would help to control fear. It would have been the most important trait of all successful entrepreneurs. Jill Blashack Strahan, the founder as well as CEO of Tastefully Simple, it is a direct-sales company for gifts, and those products were very easy to make meals (KAPLAN, et al., 2012). The sudden death of her husband and brother she became upset for few days. However, she never gives up and restarted the business. Her company’s sales revenue reached to $98 million in 2012(Canina, et al., 2012).
The meaning of passion refers that doing anything without feeling insecurity in mind. On the contrary, it does not agree the concept of money makes money always. Sometimes, the dream can produce money. Duncan Bannatyne may be the perfect example here to become reach. His business started with only $730, but now it reached near about $37 million(Bae, et al., 2014).
The imagination of an entrepreneur can form a new shape of their organisation. For instance, Jeff Bezos entered into the electronic retelling business with asmall investment in 1994 but his willpower set up the world’s number one consumer-centric company (Sánchez, 2013).
Task 2: Different environments fostering or hindering entrepreneurship
Background and experience can affect the hinder or foster of the entrepreneurship. The success of the entrepreneurship depends on the successful entrepreneurial venture. Successful entrepreneurship is the leader and driver of the entrepreneurship(Bosma, et al., 2012). Fostering entrepreneurship means that challenging the entrepreneurial drive through a process of dynamic that can take the advantages of opportunities of the economy. In the business world, entrepreneurship needs a flexible labour market, efficient financial market, simple and transparent taxation system, etc. (Pollard & Wilson, 2013). The consultancy advised and increases the motivation and increase the competitiveness through the innovation to encourage the entrepreneurial attitude. The obstacle of the small entrepreneurship is to operate a large investment in the initial stage and difficulty in to find out a business partner.
The main hinders of the business entrepreneurship bankruptcy legislation and the changing taxation. The consultancy encourages the entrepreneurship by advising about the management of risk assessment. The consultancy also motivates the self-confidence. The company helpsthe entrepreneurs in thinking about the strategic planning motivating the entrepreneurs to achieve the aim of the organisation.The company also assists to increase the ability to make the personal network best, ability to take the responsibility to contract with the other requirement and challenges(Bae, et al., 2014). There are some technical, business management and personal skill factor to hinder and foster the entrepreneurship. Some technical skills are an ability to organise, written and oral communication, management style, monitoring environment, interpersonal, network building, etc. There are some business management skills of the successful entrepreneurs that can influence the entrepreneurship such as marketing, planning and goal setting, management, decision making, finance, accounting, etc. There are some personal skills have in the mind of the successful entrepreneurship like inner control, innovative, risk-taking, change oriented, persistent, ability to manage change, etc. the background and experience of entrepreneurship have a positive effect on entrepreneurship. It provides dynamic capabilities of the company, adapts to changing the environment and the ability to learn(Bosma, et al., 2012).
The experience of the entrepreneur is essential for the survival and the growth of a new business, gathering information as well as for the promotion of existing SMEs. The qualities of a successful entrepreneur are to continuing the learning process and acquire knowledge(Elmuti, et al., 2012).
2.2. Link between entrepreneurial characteristics and the influenced of personal background and experience
There is a link between characteristics of entrepreneurship and the influenced of personal background and experience to particular successful entrepreneurship. Successful entrepreneurs make the decision and expand the adjustment which was team focused that must achieve the goal or the entrepreneur (Wright & Stigliani, 2013). The personality of the entrepreneur exposes characterises of individual entrepreneurial behaviour. Entrepreneurs have a higher requirement achievement than non-entrepreneurs. Entrepreneurs are the sensible risk taker in the market.
The development of the new start-up business as a part of the personal life strategy of the entrepreneurs it is a huge characteristic of the personality characteristics of the entrepreneurs. Personality characteristics of an entrepreneur are the requirement for the achievement and the locus of management and the risk taking tendency. There are some common fundamental factors of characteristics of the entrepreneurs which influenced the entrepreneurs to achieve the ability to gain opportunities and assembling the resources which is the need for the venture creation. There are also have variability among the factors of the entrepreneurs will decide the performance of the entrepreneurs in respect of identifying profitable opportunities. Therefore, it is clear from the observations of the researchers that there may be inefficiency in realising the opportunities with similar ability and knowledge of the entrepreneurs(Canina, et al., 2012). As a result, the differentiation among the successful and the unsuccessful entrepreneurs must be based on social skills, self-efficiency, cognition and above all motivation.
2.3.Positive and Negative Influenceof Background and Experience on Entrepreneurs
There are some positive and adverse effects of the background and the experience of the entrepreneurs. The background and experience control their activities; it increases the high level of tolerance in the adverse circumstances to function and tolerance for risk(Estay, et al., 2013). The successful background and experience influenced the entrepreneurship by the desire of working, desire for work for long hours and assumption of risk, hardworking, self-confidence, etc. The factors are influenced both in positively and as well as negatively. The background and experience of the entrepreneurs initiated the entrepreneurship. It influenced for the identification of the various opportunities and the utilisation of these opportunities. It shows the problem- solver method, formed the new ideas and gained the innovative solution. They influenced by self-confidence, they show that how to take the decision and how to sticks into the decision. On the other hand, entrepreneurship also influenced by the economic development, technological development factor, cultural factor and the education(Caliendo, et al., 2014). It can be influenced by both positively and also negatively.
In this report, the researcher states the role of the consultancy firm for the annual business start-up in the UK. In this report, the researcher describes the mindset of the entrepreneurs and the environment. This report described the characteristic of the entrepreneurs. In the first part of the report, explained about the characteristic traits and skill of the successful entrepreneurs and the other business managers differentiated it. It was explained how entrepreneurial personality reflects on the entrepreneurial motivation and the mindset of the entrepreneurship. It also examined different lines of argument relating to the entrepreneurial characteristic. The researcher analysed the characteristic traits, skill and motivational drivers of the successful entrepreneurs. In the second part of this report, it was examined the factors of the successful entrepreneurs such as the background and experience of the entrepreneurs which can be hinder or foster. It was showed that experience of the entrepreneurs effecting on the entrepreneurship. This report analyses the link between the characteristic of entrepreneurial influenced the personal background and experience of the successful entrepreneurs (Wright & Stigliani, 2013). These factors influenced the entrepreneurship. This report evaluates how background and experience influenced positively or negatively to the entrepreneurship. This report concludes that there is a significant link between the background and the experience of the successful entrepreneurship and the entrepreneurs.
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