Unit 9 E&SBM

Contents
P1 Examine different types of entrepreneurial ventures and explain how they relate to the typology of
entrepreneurship .......................................................................................................................................... 3
1. The skeptical entrepreneur................................................................ Error! Bookmark not defined.
2. The copycat entrepreneur ................................................................. Error! Bookmark not defined.
3. The research entrepreneur................................................................ Error! Bookmark not defined.
4. The determined entrepreneur ........................................................... Error! Bookmark not defined.
5. The accomplished entrepreneur ....................................................... Error! Bookmark not defined.
P2 Explore the similarities and differences between entrepreneurial ventures. ......................................... 3
M1 Investigate a diverse range of entrepreneurial ventures to demonstrate an understanding of
entrepreneurship in both the public and corporate sector .......................................................................... 5
D1 Critically examine the scope, development and growth of entrepreneurial ventures ........................... 5
P3 Interpret and assess relevant data and statistics to illustrate how micro and small businesses impact
on the economy ............................................................................................................................................ 6
P4 Explain the importance of small businesses and business start-ups to the growth of the social
economy ....................................................................................................................................................... 6
M2 Evaluate the differences small, medium and large businesses make to the economy, applying
relevant data and statistics. .......................................................................................................................... 7
D2 critically examine how small businesses have an impact on different levels of the economy (local,
regional, national) and in an international context. ..................................................................................... 8
P5 Determine the characteristic traits and skills of successful entrepreneurs that differentiate them from
other business managers. ............................................................................................................................. 9
P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mindset. ........................................................................................................................................................ 9
M3 Explore and examine different lines of argument relating to entrepreneurial characteristics. .......... 10
D3 Analyze the characteristic traits, skills and motivational drivers of successful entrepreneurs,
supported by specific examples. ................................................................................................................. 10
P7 Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship. ....................................................................................................................................... 11
M4 Analyze the link between entrepreneurial characteristics and the influence of personal background
and experience to specific successful entrepreneurs. ................................................................................ 13
D4 Critically evaluate how background and experience influences entrepreneurs, both positively and
negatively, by comparing and contrasting examples. ................................................................................ 14

Monal restaurant

Luqman Ali Afzal started this business in 2002, Monal Restaurant is one of the most famous
eating out places in Islamabad. They offer a wide range of oriental foods such as Chicken
Makhani, Chicken Green Chili with Lemon, Chicken Jalfrezi, Chicken Ginger, Chicken Achari etc.
Sunday branch is from 11am to 3pm. Monal offers Pakistani cuisine, and the road is very scenic.
Monal offers good food and awesome views of the capital Islamabad. There is not only indoor
dining facility but also outdoor seating as well. People prefer outdoor seating to enjoy the
scenic views of the city. At night you can see the Islamabad city lights which are simply
stunning. Monal also has live music ever evening. Special musical evenings are also arranged on
festive occasions. At The Monal you will also have an opportunity to shop for souvenirs and
traditional jewelry and handicrafts.

Learning outcome 1
P1 Examine different types of entrepreneurial ventures and explain how
they relate to the typology of entrepreneurship
Entrepreneurship is building a new business from start and expanding it with the passage of
time. It is the basic definition if entrepreneurship, but in today’s world entrepreneurship means
transforming the world and solving their big issues. Issues solving can be for example social
change and creating unique or innovative products etc.

 Small business entrepreneurship: Small business numbers of entrepreneurs are

increasing. There are 5.7 million small business in US and provide 50% of the
employment in US. Small businesses are stores, travel agent, carpenters, plumbers, and
electricity etc. they are the one that run their own business. They hire people from local
or family members. Most of them find it hard even to gain some profit.
 Scalable startup entrepreneurship: they start a business with the vision that they can
change the world. They attract the investors which are able to invest most of their
capital with the help of these entrepreneurs. They try to hire the experience people
around their environment. When they are done with hiring, now they need the investor
which can help them expand their business beyond their expectations.
 Large company entrepreneurship: they are the developed industries like they are able
to make a reputation in the market by providing new products and services to the
consumers. Customers taste and change in technology can bring a pressure on these
entrepreneurs like now they will have to introduce such product that does not exist in
the market. Most of time they set such a trend that the small organizations are not able
to stand against them and soon within 5 years these small companies closes their
business.
 Social Entrepreneurship: Social entrepreneurs focus on the products and services that
fulfill the needs of the social environment. They try to bring happiness to the
environment regardless of the perception of making profit and being the owner of the
market. They can be profit or non-profit social businesses.

P2 Explore the similarities and differences between entrepreneurial

ventures.

Factors Small business Scalable startup Large company Social

entrepreneurshi
p entrepreneurship entrepreneurship entrepreneurship
Goals These These business These These
and organizations aims to provide organizations aim organisations aim
objective might not have innovative to sustain in the to provide quality
s structured goals products market by products or
and objects and constantly and developing new services to make
works on achieve high products or the world a better
achieving lesser profitability for services and Place.
profitability and investors (Kirzner, marketing

Strategies
Growth. 2015 ). .

Risks The risks might The risks are high The risks are The risks are not
be lower but due to high medium because much high
competition is amount of large businesses because, these
high with same financial often manage to businesses often
sized investment and sell high volume get support from
Organisations. pressure to return due to their brand government and
Value
high amount to the . public due to their
investors by Vision.
achieving high
Sales volume.

Employe
e Employees are Depends on Employees can be Depends on the
Not more than
number 50. Structure and size. More than 1000. size of the
Business.

Structure No proper Mainly The Mainly trustee

organizational corporations or organizational based
 structure and limited structure is often Organisations.
often run with Partnerships. complex and can

M1 Investigate a diverse range of entrepreneurial ventures to

demonstrate an understanding of entrepreneurship in both the public
and corporate sector
In public sector: The public sector organisations are controlled by government directly or
indirectly. The government invests higher amount on those organisations and different private
organisations provide strategic help to those. These types of organisations have establishment
in different sectors and aims to provide quality products or services to the customers. These
organizations do not emphasis on profitability rather than social welfare and development.

In corporate sector: These types of organisations run privately and can be owned by
individuals or public. These organisations develop marketing strategies to provide quality
products or services to customers to enhance their profitability and longevity of the
organisations. Many large organisations, scalable entrepreneurship ventures are
associated with corporate sectors that focus on sustainable development by focusing on its
competitors and developing strategies to gain competitive advantages (Baum et al. 2014).

D1 Critically examine the scope, development and growth of

entrepreneurial ventures
According to Kuratko (2016), the vision, mission and objectives of different entrepreneurial
ventures are different that affects the scope of those organizations. If those organisations
can develop products that can meet the demand of the customers, then they can sustain for
longer time by generating profitability. The entrepreneurial ventures need to focus on
development by getting investments and plan to develop their products or services in
accordance with current trends and demand. As opined by Storey, (2016), those need to
develop an effective organizational structure that can enhance communication with different
department to run its regular activities. The growth of different entrepreneurial ventures is
dependent on their quality of products and services, how much they can meet the demand
of the customers, pricing and sustainable strategies.
Learning outcome 2

P3 Interpret and assess relevant data and statistics to illustrate how

micro and small businesses impact on the economy
Each activity in the business impacts the market or the economy of the country. Small and
micro business owners start their business with different mindset and also they came from
different background. Usually they handle all the business activities by themselves, but
sometimes they do hire employees to speed up their business activities. Small and micro
businesses are overshadowed by the large companies that are doing business in the
market and also we don’t hear about them on news. They might not be capable of earning
high turnover as large companies do, but they do still make sure to bring success to the
economy. Any basic idea can be transformed to small business which provides different
benefits to the people for example financial independence, encourage innovation and
create employment opportunities etc. we know that it is very difficult to be the CEO of the
business, but it is empowering. These businesses might have small impact on the economy,
but they do still affect the economy of Pakistan. There are 2 million micro, small, and
medium enterprises in Pakistan. Micro and small business in Pakistan helps in providng70
to 80% for the locals. The other benefit is that they pay back to community like for example
they have to ay their taxes where they are having their business located. Your money will
be regulated in the same region for example if you are doing business in any region of
Pakistan, that small town will be benefited because you will spending you asset there

P4 Explain the importance of small businesses and business start-ups to

the growth of the social economy
Small businesses and startups also have effect on the social economy of Pakistan and they are
as follows;

 Small businesses are very effective in building personal relationship with suppliers,
employees and customers. Face-to-face business activities take place like there is a
personal person-to-person interaction when doing any business activity, which is
important in business and helps in building personal relationship.
 There is little command in a small business setup. Large business may have big
operations which are very challenging to handle them properly. The business is also
flexible in making quick decisions because of their business little operations in the
Pakistani market place.
 Vast number of ideas takes place when you are doing a business on a small sale or just
started a business. The owner has a free will of applying his/her new idea and don’t
have to ask permission from someone else.
  They have low expenses and also uses less facilities of the town for example they use
less gas and electricity anywhere in Pakistan where they are operating which seems to
environment friendly and causing less harm to the community.
 Large organizations have huge pressure on them because they have to produce in huge
amount of quantity to fulfill their yearly turnover. Small enterprises have small
objectives which are achieved on daily basis and they don’t have to worry for their turn
over at the end of the year.
 Small firms provide more employment than large business .they may need less
employees but they do still hire employee from the locals.
 Less experience is required to get do a job in small enterprises as compared to large
enterprises where experience is needed like 3 to 5 years of experience is needed in
order to get a job.
 Small firms can help an employee fulfill his/her daily needs by recruiting them for their
firm as an employee.

M2 Evaluate the differences small, medium and large businesses make to

the economy, applying relevant data and statistics.
SMEs in Pakistan play a critical role in the economic growth, progression of
technological innovation, sourcing to large industries, cottage industries and promoting
economic renewal and social development. SMEs are one of the main sources to
reduce poverty, expand national economy. It can be the foundation of employment and
social uplifting. Pakistan’s economy, like that of many developing countries is a direct
reflection of its SME. According to Economic Census of Pakistan 2005 (this is the latest
census in Pakistan), there are 3.2 million businesses in Pakistan. SMEs represent more
than ninety percent of all private businesses and employ nearly 78 percent of the non
agriculture labor force in Pakistan. SMEs’ contribution to Pakistan’s Gross Domestic
Product is more than 30%. Additionally, the sector represents 25% of exports of
manufactured goods and 35% in manufacturing value added. Almost 53% of all SME
activity is in retail trade, wholesale, restaurants and the hotel sector. As regarded 20%
of SME activity is in industrial establishments and 22 % in service provision.
Recognizing the significant contribution of SMEs to economic diversification,
employment creation, income generation, and poverty alleviation, GOP has been
putting much effort and resources towards the promotion of the development of
entrepreneurship and SMEs in general.
D2 critically examine how small businesses have an impact on different
levels of the economy (local, regional, national) and in an international
context.

Local

 Grains can be collected from the local market

 Employee can be recruited from locals
 Supply and demand can be done with the help of local retailers
 There are opportunities for Promotion and advertising your business
 Self employed and entrepreneur can benefit the community

Regional

 Agricultural supply chain can be done regionally

 Equipments can be purchased regionally
 Opportunity to transport goods regionally
 Middle man can get grains from the farmer directly

National

 Increase in GDP of Pakistan

 Increase in tax collection
 Decreasing unemployment
 Increase in the productivity of fertilizers for faming activity

International

 Importing machinery from china and Japan

 Expanding supply and demand chain internationally
 Expanding business activities
 Increasing yearly turnover

Learning outcome 3
P5 Determine the characteristic traits and skills of successful
entrepreneurs that differentiate them from other business managers.
First we should know what is the difference between an entrepreneur and a business manager.
Entrepreneur is the one that starts a new business from the scratch and business manager is
the one that will or works for an organization. The first successful skill of an entrepreneur is
there passion for their work. These individuals are very passionate about their work and work
extra hours for their business. We can dream of becoming Bill gates or Steve jobs if we are
willing to work extra and solve the problems of the world. An entrepreneur can never be
successful if he/she has not gone through failures in his/her life. This is the fact of the life,
entrepreneurs handle these situations smoothly while others fail and stop their business right
away. Entrepreneurs ask questions from them self for example how long it is going to take to
solve the problem? How effectively they can achieve this project? They calculate these steps
and work effectively to achieve these desire goals. These problems can be multiple sometimes,
but self confidence is which makes difference and entrepreneurs are the one that have high self
confidence as compared to business who have to work according to their organization
objectives, set by the CEO of the organization. Self motivated and self confidence is also trait of
a successful entrepreneur. They are self motivated and know how to use their time wisely and
use their resources in an effective way. Most of the entrepreneurs are flexible. They will let you
know what type of business they are going to do and what are the challenges that they might
follow in the upcoming future. Entrepreneurs are flexible while making any business plan or
going for project because they will be making further changes in the plan if there are any
requirements to be change or improved the business activity. There vision is also sharp, like
their idea is also flexible, but they make sure their vision is achieved and every individual is
working hard and extra hours for the vision to be achieved.

P6 Assess how aspects of the entrepreneurial personality reflect

entrepreneurial motivation and mindset.
Motivation and mindset both plays a vital role for the success of entrepreneur. As we are
research on Monal restaurant, so we will be discussing the motivation and mind set of the CEO
of Monal restaurant Luqman Afzal. It all started back in 2002, when Mr. Luqman asked his
father to give him some money so he can buy a café that was within the LUMS university
campus. He had an idea for that small snack bar to turn it into a café that will be enjoyed by
students. He introduced ready-to-serve and gourmet meals. With good feedback, he expanded
his business activities like he introduced phone line extension to deliver food to the nearby
hostels. When he finished his degree at LUMS in 2002, he applied for a lease from the
government; he wanted to make a family recreational area at Saint Mary’s Park, Gulberg,
Lahore in 2002. There he was providing gourmet cuisine, fast food, BBQ and pizza for the
Lahore community. His mindset now got wider, he wanted to open another restaurant in the
same region, but instead his focused diverted towards Islamabad. It was challenging, but Mr.
Luqman had a mindset and was ready to take any future challenges. His idea was accepted by
12 official parties and was now ready to open his restaurant in Islamabad. The restaurant is
situated at the hilly area of Islamabad and the view is eye capturing. Back in 2008, when there
were serious terrorist threats( Marriot hotel blast), the restaurant did faced a huge loss for 2
years, but later in 2010 everything was under control and Monal than continued its business
and Mr. Luqman motivation and mindset is still than growing.

M3 Explore and examine different lines of argument relating to

entrepreneurial characteristics.
The question here is “entrepreneurs made or born”. Different people will think differently, so
some will say they are born and some will say that they are made. In my opinion, entrepreneurs
are born not made. Now we have discussed that there is a difference between a business
person and entrepreneurs, so that’s why I am choosing that entrepreneurs are born not made.
People are interested in new products that are available in the market, but most importantly
they are way more interested in uniqueness of the product which can be provided most of the
time by an entrepreneur. Entrepreneurs see the world from different angles and this helps
them be a successful entrepreneur. People also believe that they entrepreneur are born
because they are rich, but deep down they do not know how much sacrifices they have gone
through to come up to this stage and make you think that they are born not made.

D3 Analyze the characteristic traits, skills and motivational drivers of

successful entrepreneurs, supported by specific examples.
As our assignment is based on Luqman Ali Afzal, a successful entrepreneur, we can analyze his
characteristic traits, skills and motivational drivers for which he has been known in Pakistan.

Creativity

The idea was to set a restaurant in Islamabad at hilly area, which people can enjoy having their
meal and also the view that is eye capturing from the hilly area of Islamabad. This creativity
helped him to be a successful entrepreneur as no one was willing to take a risk and open a
restaurant at the mountains of Islamabad.

Passion
We can see he was passionate about his idea because he opened a small café when he was still
at LUMS and soon after finishing his graduation, He took lease from the government and
opened a restaurant in Lahore, Gulberg town.

Risk taking

As we know entrepreneurs love taking risking, but we don’t know that if that risk is calculated
by them or not. Mr. Luqman risk was calculated I guess because in 2 consecutive years he
opened two new restaurants in the same town and eagerly waiting to open Monal in Islamabad
if he gets permission from the officials.

Leadership

Leader styles are made not born because they change according to the business environment.
There are many examples of people that are doing business and we can analyze that is their
leadership style was made or they were born with it. We can say that Mr. Luqman leadership
style is effective which is why a successful entrepreneur to this date is.

Teamwork

Teamwork plays a vital role in the success of your business. We have discussed that Mr.
Luqman has an effective leadership; this means he is putting effort in team work and working
as a main team player for his employees.

Problem solving

Problem solving skill is also important for a successful entrepreneur. Doing business is not easy
because there will be problems on daily basis that you to tackle and make sure to run your
business smoothly.

Learning outcome 4

P7 Examine, using relevant examples, how background and experience

can hinder or foster entrepreneurship.

SOCIAL FACTORS
A society that is rational in decision making would be favorable for decision making. Education,
research and training is given less importance in less developed countries therefore there is very
little vertical mobility of labor.
CULTURAL FACTORS
Religious, social and cultural factors also influence the individual taking up an entrepreneurial
career, in some countries there is religious and cultural belief that high profit is unethical. This
type of belief inhibits growth of entrepreneurship.
PERSONALITY FACTORS
In less developed countries the entrepreneur is looked upon with suspicion. Public opinion in the
less developed nations sees in the entrepreneur only a profit maker and exploited.
MOTIVATION
Motivation is the act of stimulating someone or oneself to get a desired course of action, to push
the right button to get the desired results.

FACTORS Hinder ENTERPRENURESHIP

The emergence of entrepreneurs in a society depends upon closely interlinked social, religious,
cultural, psychological, and political and economic factors.
FAMILY TRADITION: Individuals who for some reason, initiate, establish maintain and
expand new enterprises generate entrepreneurship in society. It is observed that entrepreneurs
grow in the tradition of their families and society and accept certain values and norms from these
sources.
RELIGIOUS, SOCIAL AND CULTURAL FACTORS: Religious, social and cultural factors
also influence the individual taking up an entrepreneurial career, in some countries there is
religious and cultural belief that high profit is unethical. This type of belief inhibits growth of
entrepreneurship.
PSYCHOLOGICAL FACTORS: The psychological factors like high need for achievement,
determination of unique accomplishment, self confidence, creativity, vision, leadership etc,
promote entrepreneurship among individuals. On the other hand psychological factors like
security, conformity and compliance, need for affiliation etc restrict promotion of
entrepreneurship.
POLITICAL FACTORS: The political and also the political stability of country influence the
growth of entrepreneurship. The political system, which promotes free market, individual
freedom and private enterprise, will promote entrepreneurship.
ECONOMIC POLICIES: The economic policies of the government and other financial
institutions and the opportunities available in a society as a result of such policies play a crucial
role in exerting direct influence on entrepreneurship.

M4 Analyze the link between entrepreneurial characteristics and the

influence of personal background and experience to specific successful
entrepreneurs.
There is a clear link between entrepreneurial characteristics and the influence of personal
background and experience to specific successful entrepreneurs. The entrepreneurial
characteristics include the followings:

· Strong desire to a reward- People with entrepreneurial qualities has a strong desire to
achieve a higher goal and make their dreams come true.

· Commitment- Entrepreneurs are always committed to achieving their goals.

· Risk-taking capacity- Entrepreneurs always take moderate risks instead of taking high
risks. They do so because they are aware that moderate situation under risk has a fair
chance of winning.

· Identification of opportunities- Entrepreneurs are quick to see and grab opportunities.

They show an innovative turn of mind and convert difficulties into possible opportunities.

· Situation analysis- Entrepreneurs can analyze the situation quickly and make the
management run smoothly.

· Powers of observation- Entrepreneurs have a strong power of observation. They can

predict the future market situation easily.

· Accepting ups and downs- The entrepreneur should be able to cope up with problems.

· Self-confidence- The entrepreneur should know about his/her strengths and

weaknesses.

· Innovation-The entrepreneur must innovate something unique for his/her enterprise.

· Leadership- Every entrepreneur is a leader as he/she leads the team of his enterprise.

From the above entrepreneurial characteristics, it is clear that these characteristics have a
strong link with the influence of personal background and experience to specific successful
entrepreneurs. The reason behind this statement is that all the characteristics are incepted
if the entrepreneur has a strong background or proper experience on a particular field.

D4 Critically evaluate how background and experience influences

entrepreneurs, both positively and negatively, by comparing and
contrasting examples.
For the evaluation of the above statement, it is needed to give examples of positive and
negative influences. For positive aspect, the background and experience play a huge role in
influencing entrepreneurs. For example, Bill Gates showcases how background and experience
helped him to be such a successful entrepreneur. He is one of the most prominent
entrepreneurs who were responsible for Microsoft Corporation. In Bill Gates’ case, his early
family life or background, the competitive nature around his family environment, joining a
private school where he embraced early computer technology and finally meeting with Paul
Allen at Seattle School were his integral motivation which let him pursue entrepreneurial
opportunities. Beside that Gates’ long hour of dedication helped him also. He spent long hours
in the computer lab and learned about computer codes. Gates’ parents instilled a love of
learning. This intrinsic motivation drove Bill Gates to achieve his goals. His background and
experience highly influenced him to achieve his goal.

For negative impact of background on entrepreneur we can use an example of Multigrain

business that was run by Mr. Sohaib in Islamabad. Now when I critically evaluate how
background and experience has influenced Sohaib it is evident that in this case these factors
have had a negative influence. His background was of employments spread over more than two
decades and a moderate resource base in terms of capital or wealth required to have
supported the gestation period of the venture and moreover having crossed fifty years of age
his ideal age in terms of background was beyond average successful entrepreneurs.
References

Discover Pakistan. 2019. Monal Restaurant. [ONLINE] Available

at: http://www.discover-pakistan.com/monal-restaurant.html. [Accessed 12 May 2019].
Oberlo. 2019. What Is Entrepreneurship? Learn Entrepreneurship Definition and
Meaning. [ONLINE] Available at: https://www.oberlo.com/blog/what-is-entrepreneurship.
[Accessed 12 May 2019].
Kimanzi Constable. 2019. The 5 Types of Entrepreneurs. [ONLINE] Available
at: https://www.entrepreneur.com/article/244210. [Accessed 12 May 2019].
HuffPost is now a part of Oath. 2019. HuffPost is now a part of Oath. [ONLINE] Available
at: https://www.huffpost.com/entry/small-businesses-can-make_b_13127000. [Accessed 13
May 2019].

Business Case Studies LLP. 2019. The importance and benefits of small businesses today -
The importance of entrepreneurship in small businesses - NFTE-UK | NFTE-UK case studies
and information | Business Case Studies. [ONLINE] Available
at: http://businesscasestudies.co.uk/nfte-uk/the-importance-of-entrepreneurship-in-small-
businesses/the-importance-and-benefits-of-small-businesses-today.html. [Accessed 13 May
2019].

Pakistan & Gulf Economist. 2019. Fiscal review of small and large scale manufacturing -
Pakistan & Gulf Economist. [ONLINE] Available
at: http://www.pakistaneconomist.com/2018/10/22/fiscal-review-of-small-and-large-scale-
manufacturing/. [Accessed 13 May 2019].

John Rampton. 2019. 5 Personality Traits of an Entrepreneur. [ONLINE] Available

at: https://www.forbes.com/sites/johnrampton/2014/04/14/5-personality-traits-of-an-
entrepreneur/#1ae815133bf4. [Accessed 14 May 2019].

Investopedia. 2019. 5 Characteristics of Successful Entrepreneurs. [ONLINE] Available

at: https://www.investopedia.com/articles/personal-finance/101014/10-characteristics-
successful-entrepreneurs.asp. [Accessed 14 May 2019].

John Rampton. 2019. 5 Personality Traits of an Entrepreneur. [ONLINE] Available

at: https://www.forbes.com/sites/johnrampton/2014/04/14/5-personality-traits-of-an-
entrepreneur/#1ae815133bf4. [Accessed 14 May 2019].

From Snack Bar to World Class Restaurant: Luqman Afzal's Success Story. 2019. From Snack
Bar to World Class Restaurant: Luqman Afzal's Success Story. [ONLINE] Available
at: https://propakistani.pk/2015/11/09/from-snack-bar-to-world-class-restaurant-luqman-afzal-
story/. [Accessed 14 May 2019].

SmartMinds. 2019. Leadership Qualities for Successful Entrepreneur | SmartMinds. [ONLINE]

Available at: https://smartminds.io/leadersip-qualities-for-successful-entrepreneurship/.
[Accessed 14 May 2019].