1

Assignment Front Sheet

Qualification Unit number and title

Pearson BTEC Level 4/5 Diploma in Unit 9: E & SBM

Business (RQF) Unit Code: T/508/0495

Student name Assessor name

Usman Rafique Syed Ibrar Hussain
Date issued Completion date Submitted on

Assignment title Entrepreneurship and small business management

Word Count

Hand-in Policy

You must complete this assignment on time. If you experience difficulties, you must inform your tutor
accordingly.

Late Work Policy

Consideration will be given to students who have valid reasons for late submission (e.g. illness)

Plagiarism

In case of plagiarism, college regulations will be applied. You must declare that this work is your own
by signing the following statement:

Learner declaration

I certify that the work submitted for this assignment is my own and research sources are fully
acknowledged.

Student signature: Date:

 2

Contents Page

Task 1
Range of Entrepreneurial Projects…………………………………………………03

Task 2
Research on Small Business…………………………………………………………12

Task 3
Skills and Traits…………………………………………………………………… .21

Task 4
 3

Task 1

Entrepreneur:

An entrepreneur is a individual who finds a requirement and start a business to fill that space.

(Fernandes, 2018)

"Successful entrepreneurs ... have the guts to take a calculated risk and the tenacity and
persistence to keep going even when there are bumps in the road."

– Eileen Huntington, co-founder and CEO of Huntington Learning Center

Entrepreneurship:

“Entrepreneurship is the act of creating a business or businesses while building and scaling it to
generate profit.”

(Ferreira, 2018)

But as a basic entrepreneurship definition is imperfect. What definition doesn’t tell you is that
entrepreneurship is what individuals do take their career and dreams into their own hands and
lead it in the track of their own choice. No bosses no limiting timetable and no one holding you
back. entrepreneurs are able to take first step into making the world a better place, for everyone
in it.

There are strong reasons to choose this path:

 People are ambitious and wish to control their future

 You will be your own boss
 Much scope of profit
 Crates job opportunity
 Economy will rise
 4

Types of Entrepreneurship

There are different types of entrepreneurship some are given bellow:

1. Innovative entrepreneurship:
In this type of entrepreneurship, the person has the capacity to think something new,
better and more cost-effective ideas of business association and administration. This
entrepreneurship makes the business leaders and sponsors to the financial growth of a
country.
Inventions like the introduction of small car ‘Nano’ by Ratan Tata.
2. Social entrepreneurship:
Social entrepreneurship deals social modernization and conversion in several fields
including education, health, human rights, workers right, environment and innovativeness
development. They undertake poverty improvement aims with zeal of an entrepreneur,
business practices and dare to overcome traditional practices and to innovate.
3. Corporate entrepreneurship:
The corporate entrepreneurship advances new business, products, services or procedures
inside of an existing organization to create value and produce new revenue growing
through entrepreneurial opinions and action.
4. Private entrepreneurship:
In private entrepreneurship, a unit owns a firm runs it privately but it plays a vital role in
economy of a country in terms of providing jobs and facilities to people.

(Chand, 2019)

The Components of Entrepreneurial Ventures

 Entrepreneurs are modernization ambitious

 Always ready to challenge conservative business knowledge.
 Entrepreneurial ventures are often highly connected with entrepreneurial features.
(Iriobe, 2016)
 5

Types of entrepreneurial ventures

 Existence ventures:
Provide basic survival for the entrepreneur and his\ her family, in effect allowing for little
more than a hand to mouth type of existence. As the firm is to provide for basic economic
essential, once costs are enclosed there is no capacity to reinvest into the venture.
Business works in highly competitive, price based and undistinguishable markets.

 Lifestyle ventures:
Provide a relatively steady income stream for owners based on a workable business
model and a maintenance tactic to administration. Relatively uncertain reinvestments are
made to maintain the struggle in market. It typically has sites and employees but does not
seek enlargement or growth. Number of employees remain comparatively constant.

 Accomplished development ventures:

It has a workable business model and seeks stable development over time, as reflected in
irregular new products launches, periodic entry into new markets, stable development of
services, locations, staff and development of a strong local and regional brand. Ongoing
reinvestment in the business and continuous but reasonable regional development guide
ongoing business.

 Aggressive growth ventures:

These are characteristically technology-based ventures with strong modernization
abilities that seek growth and are funded by equity capital. Launch of the venture is
opportunity driven, with the originators looking for to create new markets. Their market
focus is national or international and they often become applicants for public offerings or
achievement.

(Morris, 2016)
 6

Typology of Entrepreneurship

Entrepreneurial Activities

Independent Corporate

High Low
Growth Growth
Enterprise Level

Corporate Level

Technology Need- Founding New

Driven Driven Business unit

Income Substitution
Business Level

Hobby or Life Style

Pursuing Bold
New
Functional
Directions for
Level
Existing
Business Unit
 7

Entrepreneurship in Public and Corporate Sector

 A process whereby a group of individuals or an individual, in connection with an existing

firm, generates a new company or transformation and innovation within the organization.
 A procedure that can help and facilitate company’s efforts to innovate constantly.
 It manages effectively with truths and realities that business face while competing in
global market.
 In public sector it is formulated for the upcoming and future public controller and private
entrepreneur who want to form new ventures.
 Government is the only competitor in business.
 The business is financed through the money which is collected via tax.

Scope, Development and Growth of Entrepreneurial Ventures

The entrepreneurial ventures are equally important for every level of companies. The
scope and development sector are increasing as the recession is decreasing day by day.
People are now investing in new businesses apart from their own and young generation
are more focused to conduct own business apart from taking any jobs. In that sense, the
scope is increasing.
On the other hand, no organization will be smoothly operated without the format of these
three entrepreneurial ventures. People are now a days very much innovative and trying to
evolved many more ventures in the organization.
But one thing is clearly shown in the facts that the scope and development are of the
ventures are totally open for the SMEs because 99% of the total business are conducted
by these.
 8

Entrepreneurial process:

Entrepreneurship is a process, a journey, not the destination; a means, not an end. All the
successful people like bill gates and Steve jobs and many others all went through this process.

IDEA
RECOGNITION PREPARATION
GENERATION

FEASIBILITY
STUDY FANTASISING

REALISATION VERIFICATION

(Chand, 2019)

Entrepreneurial Projects:

When a person comes up with an exceptional and advanced idea and

he put it in real world in form of a business it’s his project. If we discuss the variety of
entrepreneurship its very enormous, we cannot tell in numbers. There are a lot of people who are
involved in business and some have unique ideas while some use others ideas.

Young entrepreneurs are met with various challenges that sometimes push them beyond their
potential to bear. Nevertheless, it is at times like these that must remember that

ALEC BALDWIN once said “success begets success”.

 9

Careem is transportation network-based company in Dubai, with operations in over 100 cities in
14 countries in the Middle East, Africa and South Asia.

Founded: March 2012

Headquarters: Dubai

Founder: Mudassir Sheikha, Magnus Olsson, Abdullah Elyas

Market Research:

Careem did a research in Pakistan in order to launch its services in Pakistan. In no time the CEO
of Careem Pakistan (JUNAID IQBAL) found that Pakistan is severely underserviced when it
comes to public transport and establishing Careem in Pakistan was a great way to create jobs and
making people life easier than before.

Competition:

Firstly, it provides multiple ways of booking a car: on the phone, through web or via App. It has
a mobile wallet that its customers can top up with cash once and use it later if they don’t have
cash with them any time in future.

Local transport did not have this facility and lack of technology is also a factor.

Demand and Supply:

In major cities of Pakistan daily a lot of people travel around the city for work purposes or study.
In that case demand of taxi was big issue at the time when it was not launched in Pakistan.
Careem solved that issue and launched its services in Pakistan and signed up local drivers and in
mean time they make their name in market.

Now it is being used by millions of users on daily basis and Careem helped customers as well
captions to earn money by working with them.
 10

[Link] is Pakistani employment website. It is primarily used to find job openings for lower to
mid-level employment.

Founded: 2007

Founder: Monis Rehman

Market Research:

In country like Pakistan which is under development, a lot of people are un employed and
looking for jobs. But the question was where to look for the job. Mostly people never know that
where are the chances to apply for job. At that time Monis took the risk to launch a website that
would people use to search for jobs. The idea was to ease people life by giving them the info
about jobs and positions required by companies.

Competition:

In that time when it was launched the main competition was advertisement. It was the time when
people were moving towards the new technology and the job openings was announced in news
papers or ads by companies.

But [Link] made it easier for both the companies and the people who was looking to have job
and they were searching newspapers for jobs.

Demand and Supply:

[Link] was a successful idea and it worked many companies reached the owner to post their
requirements for jobs and people look for it and contacted their concerned companies for job
interviews and it was easy for companies as well as for the people looking for jobs. Today more
than 63,000 companies actively post job openings on [Link] paying between $29 for a single
ad and up to $ 20,000 for suite services.
 11

Abacus is a global professional services company providing management consulting, technology

and out sourcing services.

Founder: Asad Ali Khan

Founded: 1987

Head quarter: Lahore

Market research:

In 1987 Asad Ali Khan had an idea to make a company that will provide services to other
companies like consulting services for public and private sectors. He had an idea to reduce the
operational cost for the companies through out sourcing and it was a unique idea at that time.
There was no other company at that time that will do someone else job at the lowest price range.
He took the opportunity and persuade his dream and, in some time, he made it to global services.
At this time Abacus has 12 offices in MENASA region through which it serves clients in 3
continents and 22 countries.

Demand and supply:

Abacus is the largest firm of its kind in the country, both in terms of revenue and staff numbers,
and one of the largest in South Asia. Abacus is out sourcing Telenor and Careem call centers
now with low price of employees. Since Careem launched its services in Pakistan, there was
need of agents to resolve customers and captions issues. Abacus gave them that service and
provide agents that will face the issues and resolves them.

Task 2:

Small business:
 12

A small business is a limited initiative that hires a small figure of labors and does not have a high
capacity of sales.

(Richards-Gustafson, n.d.)

The legal definition of a small-scale business varies by industry and country. Every country has
set their own limitations to measure a business in small or medium size. Most of the common are
as below:

 Size:
A company must consider any individual on it pay roll as an employee. The U.S
Business administration states that small-scale enterprises generally have fewer than 500
employees within a 12-month period. The business act for Europe states that small
enterprise is those that have 250 employees or less. Small-scale enterprises in Asian
countries generally have 100 or fewer employees.
 Economic measure:
In some countries, the definition of small-scale business is bound by financial measures
such as net profits, balance sheets totals, the value of assets and annual sales.
 Financial impact:
Small-scale enterprises help stimulate local economies by providing local individuals
with jobs as well as products and services to community members. When there is a rise
in small-scale business countries may see reforms in basic rights.

Micro business:

Micro business is a very small business, smallest of all the businesses. The majority of micro
business or companies are one-person enterprises. Moreover, these companies operate out of
owner’s house or a small office and many of these companies have part time help from family
members and friends. Micro business is often exempt from worker’s compensation, liability
insurance and certain professional licensing.

Difference in Small and Medium Enterprise

 13

Small and medium-enterprise (SMEs) play a serious part in the financial, up-to-date and public
progression of a nation. It undertakes a vital part in the universal economy through its critical
responsibility to the GDP and enhancing the general population’s standard of living.

Institution Category Nature of business Number of employees Capital

Small Scale Production Sector Up to 36 Up to 20M
SMEDA
Medium scale Production sector Up to 99 Up to 40M

Small scale Service sector N/A Less than 100M

SME Bank
Medium scale Service sector N/A More than 100M

Federal Bureau of Small scale Service sector Less than 10 N/A

Statistics
Medium scale Service sector N/A N/A

Small Scale Manufacturing Less than 250 Less than 100M

SBP
Small Scale Service Sector Less than 250 Less than 50M

Medium Scale Manufacturing Less than 250 Less than 100M

Sindh industries Small Scale Manufacturing N/A Less than 10M

Punjab industries Small/Medium Manufacturing N/A Less than 10M

Punjab small scale Small/Medium Manufacturing N/A Less than 20M

corporation scale

(Zafar, October 2017)

Small vs Large business

 14

 There are 30.2M small businesses in USA accounting for 99.9% of all businesses,
leaving only 30,000 businesses as large business.
 Professional, scientific and technical services without public administration account for
8.58 M of the 30.2 M small business or 28.4 % of all small businesses.
 Small business created 1.9M new jobs in 2015 out of a total 2.7 M for approx. 70% of all
new jobs.
 1.1 M of those small business jobs were created by businesses with fewer than 20
employees.
 Using the annual payrolls for small and large businesses divided by the total employees
of each designation, that the average payroll for small business employees in 2015 was
$ 43,000 compared to $56,000 for employees of larger firms.
(MILLER, 2019)

Impact on Economy

The importance of SMMEs in the development of the economy is widely known in both
developing and developed countries. SMMEs play an important role in development of national
economy of every country.

 Uk economy is 99% SMMEs, so out of the 4.8M in UK business less than 1% are large
corporations.
 In south Korea the share of employment accounted for 70% of total employment and the
product share for over 46%.
 In Malaysia SMMEs accounted for about 48% of manufacturing establishment.
 China is becoming largest economies in the world and SMMEs are key element in
China’s accounting for 99% of total number of firms and about 70% of overall
employment.
 15

Participation of SMMEs in developed and developing countries is to be considered backbone of

the economy. SMMEs sector of Pakistan is playing very important role in economic
development and technical improvement, sourcing to large scale industrial sector and promote
economic renewal and social development.

 The economy of Pakistan is also SMMEs based as specified by The Small and
Medium Enterprises Development authority (SMEDA) that SMMEs sector of
Pakistan signify around 90% of all enterprises of Pakistan. SMMEs almost employed
80% of the non-agricultural strength and shared about 40% in annual GDP of the
country.
 The importance of SMMEs in economy cannot be misjudged because they are the
most important cause of dropping poverty, basic source of employment and social
raise.
 According to present approximation, there are 3.2M business projects in Pakistan.
Enterprises employing up to 99 persons and over 90% of all private enterprises in the
industrial sector and employ nearly, 78% of the non-agricultural labor force. They
represent 30% of national GDP, 25% of exports of manufacturing goods and 35% of
manufacturing value added.

It is described by the Pakistan Economic Survey (2008) that more than 93% of 3.2M units fall in
the group of SMEs. The Economic Census of Pakistan published in 2005, reports this figure to
be about 99%. They are considered as great source of dropping unemployment and poverty in the
economy.

(Anwar Ali Shah G. Syed., 2012)

Types of small-scale enterprise

Small business exists in almost every industry. They can range from retail store to small
manufacturing plants. Additional types of small business can include privately owned
restaurants, bakeries law firms and construction contractors.

Small businesses
 16

1. Agricultural company:

Agriculture is back bone a country like Pakistan. It helps the country in the process of producing
food, feed, fiber and many other desired products by cultivation of certain plants. Pakistan’s
largest food crop is wheat. In 2005, Pakistan produced almost 21.5 M metric tons of wheat.

Financial & non-financial Impact on economy

 The status of small business to local societies is warmly deep-rooted in buying and
selling with friends and neighbors. In some towns and villages, a small agriculture
company is the only type that can survive while serving a concentrated population.
 Agriculture is one of the most important sectors of the Pakistani economy, contributing
21% to the Pakistan’s GDP and employing 45% of its labor force.
 This type of company provides the food and raw material to other sectors who are non-
agricultural.
 It also presents new employment and serve as the building blocks of country. These
companies produce many types of crops that then sent to bigger companies and they sell
it to international market as well. So, the small firms play vital role in helping the
economy to rise and boost.
 Like an example a small agricultural firm produce corn and sale it to a feed mill
afterwards the feed mill makes feed of that corn and sale it to international market and
helps the exports to rise and thus the economy rises.
 It helps stimulate the financial growth by providing employment to people who cannot
able to work in larger companies. In rural areas of Punjab people are illiterate and they
work in fields and earn their livelihood. These types of agricultural companies help them
and gave them jobs so they can survive.
 These agricultural companies produce high level of income, which means that the
business will pay higher taxes, including local property taxes.

(Deepa, n.d.)

Tourist company:
 17

Tourism sector is stimulating in Pakistan. After successful war against terror in Pakistan, this
industry is expanding. The arrival of foreign tourists has been increased in last few years.
According to Pakistan tourism development corporation, 1.75 M foreign tourists visited Pakistan
last year.

Financial & non-financial Impact on economy

 As Pakistan has charming and beautiful northern areas a lot of people desired to go and
see those places every year. A small tourist company helps financially other small and
medium companies by giving them business and contracts. Like if a tourist company take
a tour to northern areas it will use transport company for transportation and petrol stations
for petrol.
 It also helps the people of north by staying in their local hotels. Some how these small
companies of tourism help the whole society which surrounds their business and
foreigners who hired them.
 An important role of tourist company in economy is that if they deal with foreigners, they
will help in generating foreign exchange earnings. And tourism expenditures generate
income for local and government sectors.
 Tourist company can generate jobs directly through hotels, restaurants, taxis and
indirectly through the supply of goods and services need by tourism business.
 Other people make money because of a tourist company through informal employment
(e.g. street vendors, informal guides and rikshaw drivers).
 The positive side of familiar engagement which comes because of tourist company is that
the money is returned to local economy and has a great multiplier effect as it is spent over
and over again.

(Abbas, n.d.)

Aquaculture:
 18

Fishes is the one of the oldest professions. Thousands of people involved in this profession, large
amount of catching fishes and few groups started fish breading. This is called fish farming or
aquaculture. Products are sold into the market to wholesalers and then onto retailers and end
consumers through agents working on a commission basis. Farmed fish tend to be marketed
either at the farm gate, through intermediaries or by open public sale, where ice-packed fish is
sent to fish markets and sold.

Financial and non-Financial impact on economy

 Aquaculture of Pakistan has the likely for additional expansions. Even though its share of
the GDP presently is 0.9%, Pakistan earns 6% of its total foreign exchange earnings by
transferring fishes.
 Fish may be used up locally or distributed to other, often neighboring countries.
 On the international level Pakistan has a market for fish and fish products.
 About 30% of the total fish catch is exported to 30 countries of world, Japan is our main
market with USA.
 About 80% of the total Fishery of Mekran Coast is dried for export to the Middle East.
 This industry small or large gives a greater return to fisherman or farm owner.
 Fish farming increases employments and upgradation of skills.
 Reduce burden on crop and livestock.
(Abbas, 2017)

Creative Business Proposal

 19

Dairy and livestock business:

Dairy farming is viable business for both rural and peri-urban areas of Pakistan. There is almost
equal demand of milk in rural and peri-urban areas around the major cities.

From the demand point of view, the said business project offers good investment for small scale
investments in all provinces of country.

The purposed dairy farm would be established on leased or own land with purpose built shed
constructed on conventional housing system.

The farm would start the operations with 12 animals (10 cows and 2 buffaloes having daily per
animal milk production of 13 and 8 liters respectively) to achieve milk production of 34,560
litters by the end of the year, excluding the milk consumed by suckling calves.

The breading of animals would plan through ‘Artificial insemination’ method. Female calves
would be given special attention and raised as heifers and male calves would be sold for
flattering purpose.

The milk will be primarily sold to bulk buyers at the rate of average Rs.60 per litter. The farm
will also offer milk sale to domestic individual consumers.

A dairy farm in Pakistan with 12 animals needs a total investment estimated at Rs. 2.19M Out of
which the capital cost of the project is Rs.2.01M with working capital of Rs.0.17M.

Financial & non-financial Impact on economy

 20

Dairy farms or live stock business is subsector of agriculture sector of Pakistan, which provides
milk and other raw materials to the local markets.

 The dairy farm and live stock sector alone contribute 11% of the country’s GDP, with an
estimated 42-billion-liter milk produced per year.
 As per the economic survey of Pakistan 2009, Pakistan has a herd size of around 63M
animals, which is the 3rd largest in the world.
 About 35M people are involved in dairy farming, deriving more than 40% of their total
income from live stock.
 Dairy farms provide milk for domestic consumptions as well as meager income through
the sale of milk.
 Dairy is a major part of food consumption and it plays an important role in Pakistani diet
in the form of milk, meat and egg.
 Dairy farms in rural areas of Pakistan provide employment to the local workers and
prevents the migration to bigger cities for earing livelihood.
 In international context, Pakistan is the 5th largest producer of milk in the world, its
industry volume of dairy products reached at US$26 Billion in rural and urban areas on
the increasing residents and domestic local consumption.
(Shahid, 2012)

Task 3.

Skills and Traits of Entrepreneurs

 21

“The quality of a leader is reflected in the standards they set for themselves.”

– Ray Kroc

To be a successful entrepreneur, there are skills and traits that you have to possess. These traits are beyond
your credentials and they determine how your business will move to the next step. These skills determine if
you get funding from venture capitalists, angel investors, strangers or your family and friends.

There are 4 trait categories given below:

Individual Paractical skills Serious and inventive

Personal skills
characterisitics intellectual skills

(Manketlow, n.d.)

we’ll now discuss each category in more detail and see how can one be a successful entrepreneur
and meet up the market.

[Link] characteristics:

If any one is going to be an entrepreneur, he or she must have these characteristics.

 Optimism: Is truly an asset, and it will help get you through the tough times that many
entrepreneurs experience as they find a business model that works for them.
 Vision: If you want to be a successful entrepreneur you should have vision of changing
things to improve.
 Creativity: When you show initiative, you do things without being told, you find out
what you need to know and you keep going get tough.
 Determination: You should be more energetic and self-motivated, prepared to work hard
and for the long time in business.
 Risk Tolerance: When facts are un certain it is the most significant to have tolerance of
risk.

2. Personal Skills:
 22

As a successful entrepreneur, you will have to work closely with people. This is where it is
critical to be able to build great relationships with you team, customer, suppliers, investors and
more.

 Leadership and Motivation: As a successful entrepreneur, you’ll have to depend on

others to get beyond a very early stage in your business. In that case you should have
these abilities to take you team to the view you want to show them.
 Communication skills: You need to be able to communicate well to sell you vision of
the future to investors, clients and team members as well.
 Listening: Your ability to listen can make or break you as an entrepreneur. Make sure
that you are active and empathetic listener.
 Negotiation: This will help you in resolving differences between people in a positive and
mutually beneficial way.
 Ethics: You will find it hard to build a happy and committed team if you deal people,
staff or customers in a shabby way. You will need to deal them with respect and integrity.

3. Serious and Inventive Intellectual Skills:

As an entrepreneur, you also need to come up with fresh ideas, and make good decisions about
opportunities and potential projects.

However, creativity is a skill that you can develop if you invest time and effort.

 Creative Thinking: You should be able to see things from a variety of prospective and
come up with an idea.
 Problem Solving: You should be good at problem solving with techniques and tactics.
That will help you make your business flourish in mean time.
 Recognizing Opportunities: If you are able to recognize an opportunity and you avail it
you will be an entrepreneur.

[Link] Skills:
 23

You also need the practical skills and knowledge needed to produce goods or service effectively
and run a company.

 Goal Setting: Create a plan set a goal and achieve it.

 Organizing: manage and organize is really a tsk if you do it properly you will
become a good entrepreneur.
 Decision Making: You should be good at decision making. Moreover, you should be
confident on your decisions.

While there is no “right” set of features for being a successful entrepreneur, positive general
traits and practical skills will help you become one. By examining your own personal strengths
and weaknesses and comparing them with those of typical entrepreneur, you can get a sense of
how well this career will fit with your personality.

“The key to realizing a dream is to focus not on success but on significance — and then even the
small steps and little victories along your path will take on greater meaning.” – Oprah Winfrey

Entrepreneurial mindset:

The fundamentals of an entrepreneurial mindset are, among other features. If you want to be an
entrepreneur it is important to know why entrepreneurial mindset is important for your business.

 Thinking like an entrepreneur will help you from the beginning. When you start it help
you to know where you would like your business to lead you and what risks you are
willing to take to succeed.
 entrepreneurial mind set will help you in other areas of your life. In your everyday life it
will help you to minimize the fear of failure and rejection. It will help you to keep being
forward even when things are not going well.
 Having an entrepreneurial mind will inspire creativity, you will be more likely to think
outside the box. Serious thinking is the key to a successful business.
 People trust others who seem to know what they are doing, the old saying” Fake it till
you make it”.

(Fasano, 2018)

Entrepreneurial characteristics
 24

It takes a special kind of a person to be an entrepreneur- to come up with an idea and to put that
idea into action. But not all ideas workout. if you want to be an entrepreneur, you need to have
the right personality and the right attitude.

Here are some essential characteristics to be a successful entrepreneur.

[Link]:

It all starts with an idea, in order to be successful, you need to always be thinking of new ideas
and better ways of doing things. You have to think outside of the box.

[Link]:

Passion is essential to any business owner or working professional’s success. Without it there is
no reason for your work and no drive to do it.

[Link]:

Entrepreneurs are their own boss, which means there’s no one telling them to do things. You
must love what you do and that work will motivate you and you will give all your time to it.

[Link]:

Entrepreneurs always look on the bright side and are constant dreamers. They look at how they
can do things much better and make the world a better place. They focus on moving forward and
moving up.

[Link] orientated:

They are always looking towards the future. They are very goal orientated and know exactly
what they want. They set their goals and every thing they do is to achieve their goals.

[Link]:

To be successful in business, you have to know business. If you are a people person and know
how to get people to listen to you, you could be a successful entrepreneur.

[Link]:
 25

Entrepreneur knows how to adapt unfamiliar situations. If their business requires that they learn
how to build website or send an invoice they will do it. Whatever it takes they are ready and
willing to do the best for their business.

[Link]:

They do not shy from challenges or conflicts. Instead, they face them head on and come up with
a solution. They know how to solve problems effectively.

[Link]:

They know that to be successful, they must be willing to take risks. While they don’t mind
walking on the wild side, they don’t take risks lightly. They know how to plan for the unknown
and make a decision that is best for them and their business.

[Link]:

They know what needs to be done and don’t hesitate to make decisions that will lead them to
success. They don’t let opportunities to pass them by, instead they seize them and get the job
done.

(Patel, n.d.)

Example of entrepreneurial characteristics & mind set

EG Solutions:

Elizabeth is founder and CEO of EG Solutions, a small company in UK, selling operations
management software that helps clients to generate improvement in operational performance and
efficiency.

After working in HSBC for 12 months Elizabeth left her job and started a small business. This
quality has demonstrated her as an independent and freedom-oriented person. But in terms of a
manager, she is never an independent person in nature.

Besides, she is always an innovative person and that’s why knowing the demand of the industry
she started consultancy firm. In case of manager, she is not brave enough to take any risk.
 26

At the middle of her journey, the business has conducted loss in two consecutive years. But at
last, she has succeeded to take profit from this industry. Through this incident the unique quality
of her been evolved.

After meeting with entrepreneurs, she decided to change the firm from consultation into software
firm. This proves the vision of Elizabeth which is not in manager’s characteristics.

Sir Winston Churchill once said, “Success is the ability to go from one failure to another with no
loss of enthusiasm.”

Task 4:

Environmental barriers to entrepreneurship

Corrupt and disconfirming business surroundings:

Lack of adjuvant and market-augmenting government rules function a barrier to

entrepreneurship. Russia leads all alternative massive nations in having associate degree
disconfirming business surroundings as a result of they lack rule of law, having poorly outlined
contract and poverty laws, enforce rules inconsistently, permit rampant corruption and bribing,
permit regulative authorities and inspectors to act during a predatory nature that thus needs
friendly ties with governance and bureaucrats to sleek the approach for businesses to control.

Employee difficulties:

Building associate degree worker quality base for the firm is one in every of a lot of discouraging
and typically unnoted tasks. Entrepreneurs should realize and choose the best qualified staff who
are motivated and willing to grow with the venture. Then they need to make sure the staff don’t
leave. It becomes a barrier once employee’s expectations increase, government laws associated
with labor employment us hardened, worker prices grow.

Rules and regulations:

Government rules, tax collection, natural directions loaning prerequisites and permitting are all
boundaries to business enterprise. Most nations banish or permit showcase section and creation
 27

of unused firms to secure officeholders in certain business and callings. Other boundaries to
business are savage charge behavior of specialists, need of poverty rights and assess drawbacks.

Deficiency of resources:

Finding the cash to start up a firm could be a driving obstruction to business enterprise. without
resources any individual cannot start to organize, prepare, create and offer item.

(Arshad, 2016)

Opportunities in entrepreneurship

Spending on different ventures:

Mostly self-made rich people are those who contributed in numerous distinctive trade openings
at once rather than centering on fair one thought. Investing in different ventures will help to
boost the income and will rise resources as well.

Investors:

They can be a great source of resources for the individuals looking to stress less about funding
and focus on product and customer services. They help to backing the market in way that has not
been seen before.

Quality:

Giving best quality product will always set your business ahead of curve. Good products are
available every where but providing great thing has become easier with the propagation of ghost
networking websites that also allow for quality producers and others to sell their work to firms
looking to innovative reach out and connect with clients. It as an opportunity that every startup
owner should be jumping on to give his or her firm an edge.

The social approach:

Placing your product and brand in the center of conversations and creating a culture around your
brand will differs your product from your rival companies by truly connecting to clients on the
problems they care about.
 28

International market:

International markets, specifically the Chinese one, have seen exponential growth in the past few
years. Any new owners that know how to identify this chance for what it truly is access to the
largest market on earth will be recognizing themselves all the way to bank.

(Newlands, 2014)

Risks in entrepreneurship

Immense loss:

Entrepreneurs possibly will suffer from heavy losses particularly today when the financial
downpour is still obvious. When there is a lack of market demand or when opposition is very
high, your business could suffer delays at times, these losses could be too big that the
entrepreneur may not be able to keep going with the business.

Debt payments:

When anyone start a firm, he may not have enough funds and will seek the help of a bank
through loan facility. There is no issue in that but the problems rise when payments get stuck and
we can’t pay our debts on time and as a result we have to deal with penalties and late charges
that we find difficult to pay.

Workers problems:

Workers are the backbone of an industry or firm and their issues could show up in strikes and
demands for higher pay. This is surely going to affect productivity and profit loss on the part of
the entrepreneur.

Tough competition:

It can make or break a business. If you can not keep up and stay ahead of your rivals, you are in
the risk of getting left behind. You must have plans to manage the competition and to stay ahead
of your competitors.
 29

Market instability:

It is a known fact that market is never stable, this means your earnings are also never stable. You
have to be ready for your ups and downs in business and must have the means to keep your
business going on the track.

(Vennapoosa, 2012)

How Background or Experience Can Hinder or Foster Entrepreneurship

Referring to the example of Task 3(Case of Elizabeth CEO of EG Solutions), we can easily say
that without technical knowledge, it’s tough to conduct or implement the right business model to
the market. We can see the implementation of this fact in Elizabeth case.

After meeting someone, she has come to know that its time to convert the business from
consultancy to software firm.

Besides, there should have some instinct quality within the individual which foster him/her to go
beyond. Elizabeth has this kind of quality of her own. Based on this quality, she has left the job
and started doing business taking risk of her own.

Link between Entrepreneurial Characteristics and Influence of Background

Actually, there is a link between entrepreneurial characteristics and personal background of the
individuals. Sometimes background of some individuals becomes the factor of hinder. In case of
Elizabeth, her background hindered her from her success. But she has the abilities and
characteristics of entrepreneur in her based on what she has succeed to overcome her hinder and
ultimately succeed in life.

What if the family status of Elizabeth was so weak that she had to take borrow and credit card
help at the time of starting her business, this type of things is the hinders of Elizabeth, but she
has successfully recovered the issues and pulled in way that was remarkable.

(Alan Griffiths, 2011)