Understanding Entrepreneurship and Small Business Management

Entrepreneurship and small business management
Unit 9: Entrepreneurship and Small Business Management
Submitted by:
(Manish Hamal)
Pearson Reg, no:
BTEC HND in Business Studies
International School of Management and Technology (ISMT)
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ASSIGNMENT COVER SHEET
STUDENT DETAILS
Student ID Manish Hamal Reg No.
Family Name Hamal Given Name Manish Hamal
Enrolment Year 2019 Section A
Semester 2 Email manishhamal@ismt.edu.np
UNIT DETAILS
Unit Title Entrepreneurship and Small Unit Code T/508/0495

Business Management
Assessor Name Nabin Gajurel Issued Date 04/13/2021
Assignment Title Understanding Entrepreneurship and Small Business Management
Assignment No 1/1 Submission Date 06/12/2021
Qualification BBA Campus ISMT
STUDENT ASSESSMENT SUBMISSION AND DECLARATION
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When submitting evidence for assessment, each student must sign a declaration confirming
that the work is their own.
Student Name Manish Hamal Assessor Name Nabin Gajurel

Issue Date 04/13/2021 Submission Date 06/12/2021
Programme BITEC HND in business
Unit Name Entrepreneurship and Small Business Management
Assignment Title Understanding Entrepreneurship and Small Business Management
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Pearson Education 2018

Higher Education Qualifications
Contents
Introduction:...............................................................................................................................................5
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Types of entrepreneurial ventures :............................................................................................................5

Small business entrepreneurship............................................................................................................5
Scalable startup entrepreneurship:.........................................................................................................7
Large company entrepreneurship:..........................................................................................................8
Social entrepreneurship:.........................................................................................................................9
Typology of entrepeneurship:...................................................................................................................10
Relation of typologies with entrepreneurial ventures:..............................................................................11
Similarities and differences between etrepreneural ventures:.................................................................12
Diverse range of entrepreneurial ventures to understand entrepreneurship in both public and corporate
sector.........................................................................................................................................................14
Scope, development and growth of entrepreneurial ventures:................................................................15
Impact of small business in the economy:.................................................................................................16
Importance of small business in the social economy:...............................................................................21
Evaluation of SMES and large business in the economy:...........................................................................22
SME’S ADVANTAGE:..............................................................................................................................22
Disadvantage:........................................................................................................................................23
Disadvantage of large business:............................................................................................................23
Impact of Small business in different level of economy:...........................................................................24
Characteristics of a successful entrepreneur:............................................................................................26
Entrepreneurial personality and their reflection on entrepreneurial motivation and mindset:................27
Some arguments relating to entrepreneurial characteristics:...................................................................29
Motivational drivers of successful entrepreneurs:....................................................................................30
Background and experience that can hinder or foster entrepreneurship.................................................33
Background and experiences that influence entrepreneur positively and negatively:..............................38
Conclusion:................................................................................................................................................39
References:................................................................................................................................................40
Introduction:
An entrepreneur is a person who starts a new firm and bears the most of the risks while reaping
the majority of the benefits whereas entrepreneurship refers to the process of starting a business.
The entrepreneur is frequently portrayed as a pioneer, a provider of novel ideas, products,
services, and/or business processes. (hayes, 2021)
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Entrepreneurs are critical to any economy because they have the ability and initiative to
anticipate requirements and bring good new ideas to market. Entrepreneurship that succeeds in
taking on the risks of starting a business is rewarded with revenues, fame, and chances for
continued expansion. Entrepreneurship that fails results in losses and a lower market presence for
those involved. High returns with a high level of uncertainty are the goals of such entrepreneurial
enterprises. The entrepreneur is willing to put his or her financial stability and career on the line
for an unknown enterprise, investing time and money to secure the necessary funding, raw
materials, production locations, and experienced people. Other crucial factors that the
entrepreneur controls are marketing, sales, and distribution. Even if part of these functions are
outsourced, the entrepreneur is still responsible for the risk. This differs entrepreneurship from
inheriting and/or running an existing business, salaried work for a startup or entrepreneur,
commissioned sales, or selling already existing goods or services as a franchisee or dealership.
Trading goods such as purchasing large quantities of branded shampoo at wholesale prices and
reselling it at retail prices in store or online is not considered entrepreneurship.
Entrepreneurship, on the other hand, is defined as developing own new herbal shampoo,
acquiring a patent for it, and marketing it for profit utilizing the same sales channels. There is no
such thing as free in this world. The entrepreneur takes a risk by investing the time, effort, and
money required to make the herbal shampoo, obtain the relevant licenses, and handle legal
challenges stemming from consumer complaints and competitions
Types of entrepreneurial ventures :
Small business entrepreneurship:

A tiny business is one that is privately owned and operated, has a limited number of employees,
and sells a low amount of goods or services. Small businesses are usually sole proprietorships,
partnerships, or corporations operated by private individuals. Friends, family, savings, and small
business loans are all common sources of funding for small firms. Grocery stores, travel
agencies, carpenters, plumbers, and storefronts are all examples of businesses. The principle
behind their success is to simply create a sufficient profit. They don't want to take over the
industry because it's already profitable enough.
The members are less than 20.
EXAMPLE OF SMALL BUSINESS ENTREPRENEURSHIP:

NEPAL ECO ADVENTURE(TRAVEL AGENCY)
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SOURCE: Adventure, N. (2021). About Us | Nepal Eco Adventure. Nepal Eco Adventure. Retrieved 13
June 2021, from https://nepalecoadventure.com/about-us/.
Introduction: Nepal Eco-Adventure is located in the heart of Thamel City, Kathmandu, in the
busiest tourist city in Nepal. Nepal Eco-Adventure provides customers with the best services to
satisfy them. The Nepal Ecological Expedition is a team composed of experts and experienced
people in the trekking field. The only goal of Eco Adventure Nepal is to satisfy its customers by
providing the best services in Nepal. Nepal Eco Adventure is located in the center of Nepal Eco
Adventure in Thamel, Kathmandu and Nepal's busiest tourist city. Provide customers with the
best service and satisfy them. The Nepal Ecological Expedition is a team composed of experts
and experienced people in the trekking field. The only goal of Nepal Eco Adventure is to satisfy
their customers by providing them with the best services in Nepal.
The members are less than 20.The founder of ECO adventure Nepal is Chhatra karki.
Some of the small business entrepreneurship are:

Private enterprises:
A private company is owned by a small number of shareholders, member companies or an NGO
and does not offer its shares to the public. Instead, its shares are offered for sale, owned or traded
privately among a small number of shareholders or even owned by an individual. A sole
proprietorship is also referred to as a sole proprietorship, limited liability company, limited
liability company or private company, depending on the country in which they are incorporated
and how they are structured.. Since these companies do not have access to the public foreign
exchange market, they can only raise capital through private investments, corporate profits or
loans from lenders.
Types of private enterprises

A sole proprietorship transfers the ownership of the enterprise to one person. A sole
proprietorship is not its own legal entity; its assets, liabilities, and all financial obligations
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depend entirely on the individual owner. Although this gives individuals complete control over
decision-making, it also increases risk and makes it difficult to raise funds. Associations are
another ownership structure for private companies; they share the unlimited liability aspects of a
sole proprietorship, but include at least two owners.
A limited liability company (LLC) usually has multiple owners who share ownership and
responsibilities. This ownership structure combines some of the benefits of partnerships and
businesses, including income tax and limited liability, without the need to merge.
Scalable startup entrepreneurship:

Scalable entrepreneurship can be defined as a business model in which an organization is based
on unique ideas. It involves everything from making a plan to starting a business. This form of
entrepreneurship involves a lot of work, education, and experience.
This type of entrepreneurship starts with the vision that they can make some changes in the
world. Their investment comes from venture capitalists and the hiring of efficient employees.
Their goal is to discover a repeatable and scalable business model. Once they found this model,
they began to raise funds from venture capitalists to promote business growth. Due to venture
capital and outstanding performance, a small part of all operations are scalable startups.
Facebook, Instagram, and online shopping for electronic products are some examples of scalable
startups.
Source: About Us. Pages.daraz.com.np. (2021). Retrieved 13 June 2021, from

https://pages.daraz.com.np/wow/i/np/about-us/about-us?
spm=a2a0e.11779170.footer_top.8.287d2d2bE7MIul&hybrid=1&scm=1003.4.icms-zebra-100024112-
2954385.OTHER_5486967089_2597685.
Daraz, which was founded in 2012, is South Asia's leading online retail marketplace, with
operations in Pakistan, Bangladesh, Sri Lanka, Myanmar, and Nepal. Daraz has 30000 vendors
and 500 brands, and serves 5 million customers across the region, thanks to a variety of
specialized marketing, data, and service solutions. Daraz has over 2.5 million products to offer
and is rapidly expanding Daraz has a wide range of categories to choose from. Daraz is
committed to providing a superior client experience, including convenience of purchase,
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thorough customer service, and a hassle-free shopping and returns process. Alibaba Group
purchased Daraz in May 2018..
Large company entrepreneurship:
Large-scale entrepreneurship can be defined as businesses with a well-defined life cycle. There is
a strong commitment to long-term innovation that results in new types of products. It entails both
customizing customer preferences and coping with new competition. In layman's terms, it
involves starting a new firm within an existing firm. Large corporations introduce new products
or services in response to client demand, new competitors, regulation, and other factors, and they
launch versions of their main products.
Public enterprises:
A public limited company is a company that can not only obtain a large amount of funds from its
promoters, close relatives, or investors, but can also obtain a large amount of funds from the
general public by selling its securities on the open market. The shares of a corporation are a free
trade item that can be traded on the stock exchange for sale, purchase and delivery in real time.
On the other hand, the compliance requirements are very high, which is expensive and time-
consuming. To protect the interests of investors, especially small investors, the law establishes
strict controls and regulations. Due to its huge size and structure, decision-making is slow here.A
company limited by shares is suitable for capital-intensive and large-scale industries.
Source: ntc logo - Google Search. Google.com. (2021). Retrieved 13 June 2021, from
https://www.google.com/search?
q=ntc+logo&sxsrf=ALeKk017UR2jv7lkx0RZQ2GIXevuCvwGPA:1623234878049&tbm=isch&source=iu&ic
tx=1&fir=GtDw3dA3m3mgQM%252CPlZuIsrqd9vsRM%252C_&vet=1&usg=AI4_-kQsaHM1Nyylx-
tWXYjBjTYLLG4mIg&sa=X&ved=2ahUKEwic16uSrYrxAhWm63MBHR0iCxQQ9QF6BAgQEAE#imgrc=Gt
Dw3dA3m3mgQM.
The first communications service in Nepal was established in B.S. 1973. However, formal
telecom service was first offered after MOHAN AKASHWANI was founded in B.S. 2005.
Telecommunication Department was founded in B.S. 2016 as per the plan stated in the First
National Five-Year Plan (2012-2017). Telecommunication Department was renamed
Telecommunications Development Board in B.S. 2026 to improve and extend
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telecommunications services during the third five-year plan (2023-2028). It was legally founded
as a completely owned Government Corporation called Nepal Telecommunications Corporation
in B.S. 2032 for the purpose of providing telecommunications services after the enactment of the
Communications Corporation Act 2028. Nepal Telecommunication Corporation (NTC) was
renamed Nepal Doorsanchar Company Limited (NDCL) on Baisakh 1, 2061, after serving the
country for 29 years with pride and accomplishment. The Nepal Doorsanchar Company Limited
was established in accordance with the Company Act of 2053. However, as its registered trade
name, the corporation is known to the general public as "Nepal Telecom."
Social entrepreneurship:
Social entrepreneurship is the use of business principles, processes, and operations to understand
social issues and achieve social change. It involves conducting research to fully define specific
social problems and then organizing, creating and managing social risks to achieve the desired
changes. This change may or may not include the complete elimination of social problems. This
can be a lifelong process, with the goal of improving the existing environment.
Entrepreneurs in this field are related to non-profit organizations and sectors. But this does not
eliminate the need for profit. After all, entrepreneurs need capital to continue this process and
make positive changes in society.
In addition to social issues, social entrepreneurs also pay attention to environmental issues. The
Children’s Rights Foundation, Waste Treatment Plant and Women’s Empowerment Foundation
are some examples of social entrepreneurship. Social entrepreneurs can be individuals associated
with non-profit organizations and non-governmental organizations that raise funds through
community activities and events.
Source: Dokorecyclers.com. (2021). Retrieved 13 June 2021, from https://dokorecyclers.com/about.

Doko Recyclers: A social company that manages and recycles dry waste. Their top priority is to
get rid of our dependence on waste dumps that do not provide environmental protection, and
switch to a waste management system that preserves useful resources in national economy.
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Separating waste at the source plays an important role in achieving a sustainable future. The core
of their waste management vision in Nepal is to treat waste as a resource with the highest value
from extraction, recycling, recycling and reuse.
They believe in wise sustainability-to maintain wise practices in our consumption and disposal
choices, to understand how they affect us and our environment, and to act on them.
For them at Doko Recyclers, just as a society, they work together and actively protect resources
by reducing, reusing, repairing, reusing and recycling, in order to achieve a sustainable and green
future. Therefore, their service is focused on enabling you and our clients to do the same.
Typology of entrepeneurship:
Although entrepreneurship is the entire process of developing, starting, and operating a business,
there are many different types of entrepreneurship. People have different wishes and visions for
the type of business they want to create. Each runs their own business according to their own
personality, skills, and characteristics. Some people think that they can achieve success through
hard work, while others can use capital to help them achieve their goals. For some entrepreneurs,
profit is not as important as providing social welfare.
Although every type of entrepreneur faces similar challenges, they may choose different
methods to deal with them. Each type of entrepreneur looks at challenges in a unique way and
has different resources to overcome them.
Innovative entrepreneur:
Entrepreneurs that are continually coming up with new ideas and inventions are known as
innovative entrepreneurs. They take these concepts and turn them into profitable businesses.
They frequently seek to improve people's quality of life. People that are highly motivated and
passionate are more likely to be innovators. They look for ways to differentiate their products
and services from the competition. Steve Jobs and bill gates are examples of innovative
entrepreneur.
Hustlers entrepreneur:
Entrepreneurs who are willing to work hard and put in consistent effort are known as hustlers.
They frequently begin small and work their way up to a larger company via hard labor rather
than capital. Their ambitions drive them, and they are willing to go to any length to achieve their
objectives. They don't give up easily and are eager to face hardships in order to achieve their
goals. For example, someone who is a hustler is willing to cold call many people in order to
make one sale.
Imitator entrepreneur:
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Entrepreneurs who imitate others' business concepts yet try to enhance them are known as
imitators. They strive to improve and profit from certain products and services. An imitator
combines the qualities of an inventor and a hustler. They are eager to come up with fresh ideas
and work hard, yet they begin by imitating others. People who imitate others have a high level of
self-assurance and determination.
Buyer entrepreneurship:
A buyer is a type of entrepreneur that invests their money in their firm. Their specialty is
investing their riches in enterprises they believe will succeed. They seek out prospective
businesses to acquire. They then make any management or structural adjustments that they
believe are required. Their goal is to expand their revenues through growing the firms they
acquire. This kind of entrepreneurship is less risky because they are purchasing already well-
established companies.
Relation of typologies with entrepreneurial ventures:

Technology entrepreneurship with SMES.
Compared with other fields such as economics, entrepreneurship and management, the field of
technology entrepreneurship is still in its infancy. However, we are at a time when insights from
previous work can be used to create a clearer definition of technical entrepreneurship work.
Technological entrepreneurship is about collaborative production decisions, not about making or
delegating decisions by one person. The company's senior management team jointly decides to
invest in a project and a team of professionals who create and obtain value for the company.
Personal and professional assets can be in the hands of a single entrepreneur-manager, or they
can be allocated. Technological entrepreneurship involves professional human resources, who
use their skills and abilities to jointly explore and use technological changes for the benefit of the
company. Company owners and employees cannot know or predict the relevant attributes of all
assets. You need to discover the attributes of the assets. Technological entrepreneurship
identifies, selects and develops new attributes in order to create and obtain value for the
company.
Corporate entrepreneurship with larger enterprsie
Entrepreneurship within an established organization is called corporate entrepreneurship or
internal entrepreneurship. All companies want organic growth, but few organizations have
processes to support and sustain long-term growth. Organizations need to create a framework to
support innovation and new business growth. Enterprise entrepreneurship (intrapreneurship) is a
process used to develop new businesses, products, services or processes within an existing
organization to create value and generate new revenue growth through entrepreneurial thinking
and actions. Entrepreneurship lays the foundation for innovation and growth. It provides a
systematic view of the resources, processes and environment necessary to support, inspire and
engage organizations in business thinking and action.
Social entrepreneurship with social enterprise:
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Social entrepreneurs are interested in starting a business for greater social benefit, not just for
profit. Social entrepreneurs may seek to produce environmentally friendly products, serve
underserved communities, or focus on charitable activities. Along with socially responsible
investing (SRI) and environmental, social and governance (ESG) investing, social
entrepreneurship is a growing trend. Social entrepreneurs may also try to address those
availability imbalances, the root causes of those social problems, or the social stigma associated
with being a resident of those communities. The main goal of social entrepreneurs is not to make
a profit. Instead, social entrepreneurs seek to achieve widespread improvements in society.
However, a social entrepreneur must still be financially competent to be successful in their
business.
Example- In modern times, social entrepreneurship is often combined with technology assets: for
example, bringing high-speed Internet connections to remote communities, giving school-age
children more opportunities to obtain information and knowledge resources.
Similarities and differences between etrepreneural ventures:
Ventures Objective Role Characteristics
Small business To get the most out of These businesses These businesses are
entrepreneurship the local and regional assist employees in mainly limited to the
market that already gaining technical local and regional
exists knowledge and market and have
expertise. The fewer members. The
empowerment of the production scale is
workers is the tiny, as is the working
responsibility of these space. The maximum
entrepreneurial number of workers is
groups. five to ten.
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Scalable startup Their primary goal is These types of The founders

entrepreneurship to rise to the top of entrepreneurship are themselves govern,
the market and gain led by individuals monitor, and manage
the maximum who serve as leaders. these types of start-
proportion of the They look at internal ups. They intend to
market. as well as external alter the current
strengths and market and gain a
shortcomings. larger piece of it.
(Anderson, 2017).
These businesses have
a strategic plan in
place to gain market
share.
Large company The major goals of They've taken on a These have a finite
entrepreneurship this business are to competitive role. lifespan and are
provide a high return These ventures susceptible to fierce
on investment, concentrate on quality market competition.
earnings, and income. and long-term Their success is
viability for this aim. contingent on product
innovation.
Social The society benefits As a responsible These can be non-

entrepreneurship from the development business, the primary profit and contribute
of effective services goal is to benefit to the betterment of
and products (Parker, people, the society and the
2018). environment, and environment.
society.
Common Similarities:
The most obvious similarity between the two companies is that they both have the purpose of
creating value. By definition, it is the core of entrepreneurship. The barber on the street corner
brings value by cutting hair, eBay brings value by creating an online market for second-hand
products, young scientists bringing value by developing treatments or drugs, and Bank creates
value by realizing easy microfinance. Without this concept of value transfer, entrepreneurship is
nothing (Nambisan, S.2016). Another similarity is that they all have innovative elements (except
for small business entrepreneurship). In order to deliver value in more ways, companies must
move beyond their inherent mindset (Phillips, 2010). These companies must focus on innovative
ideas; otherwise, the ways to provide value will remain limited. For example: before DARAZ, no
one could sell their products unless they knew many people and one of them was interested in
the product. Now, thanks to DARAZ’s innovative invention of the online marketplace, anyone
can advertise on the Internet.
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Common differences:
Obviously, the differences between different types of companies outweigh the similarities. For
example, social enterprises are not for profit. Other types of adventure create value only for
profit, while social entrepreneurs create value to improve the world. Another difference between
them is the required capital or initial capital. Small businesses can start without a lot of money.
On the other hand, scalable businesses need a lot of venture capitalists. These companies have
also received support from different sources. Entrepreneurs who start small businesses use their
own money or borrow money from family or friends. Scalable business risks require more help
from large institutional investors and venture capitalists. As the name suggests, the
entrepreneurship of large companies is supported by the company itself (Phillips, 2010). The
risks of these business ventures are not the same. It's easy to see that small businesses aren't that
risky, but scalable businesses funded by large investors have high risks. This is because small
businesses are based on known models, so the associated risks are also known. But the ideas or
concepts adopted by large, scalable companies have yet to be tested (Casson, 2010)
Diverse range of entrepreneurial ventures to understand entrepreneurship

in both public and corporate sector.
The entrepreneurial project is divided into three stages. The description is as follows:
Entrepreneur:
An entrepreneur is a person who starts and runs a business with limited resources and resources,
taking into account all the risks and rewards of his business ventures. A business plan is usually a
brand new innovation, product or service, rather than a link to an existing business model.
The goal of these startups is high returns, with a high degree of uncertainty. Entrepreneurs can
put their money and the safety of their business at risk without any problem, take unlimited risks
in inspiration, and still spend time as capital in uncertain partner companies.
Intrapreneurship:
Intrapreneurship is like an entrepreneur in an organization of mistakes. They are usually highly
motivated, proactive and action-oriented people, who even within the organization, can easily
make their own decisions or initiatives to adopt innovative products or services. Most
importantly, the intrapreneur is in the comfort zone because he believes that failure will not
involve any personal cost, just like an entrepreneur, because the organization will compensate for
the loss caused by failure.
The intrapreneur always focuses on specific issues, his domain encompasses the company's
processes more than the entire business. The specific problem may be the direct need for skills or
higher productivity, etc. Intrapreneurs have the ability to promote some stages of innovation and
provide a better situation for the organization by providing goods and services.
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Entrepreneurs love freedom, whose characteristics cultivate their autonomy and independence.
They are basically effective in developing workflow diagrams and can imagine the next
competition of the company and how to alleviate these competencies in a comprehensive way.
Management:
Management personnel in the organization to complete the work of the individual is called the
management workforce. They are basically salaried employees and have the right to make any
changes within the organization with prior approval. They are also highly tactical in nature,
always eager to manage others or subordinates. They are basically responsible for daily
activities. If there are no innovative ideas on their side, it seems fine, because they have done
regular work in the organization. They can think about how to make others more efficient, how
to connect one thing with another, etc.
Scope, development and growth of entrepreneurial ventures:

Scope:
The scope of the business model is in the fields of industry, service and agriculture. Among the
three, the service industry has the strongest momentum. There are also many challenges. For
example, the market is always volatile and competition is increasing. Therefore, in order to
maintain their position and business growth, entrepreneurs must continuously improve their
operations. Another challenge is the lack of funds, especially for SMEs and micro-enterprises.
The biggest challenge is the lack of experience and knowledge of the management team
(Mukherjee, 2016)
Startups are equally important to businesses at all levels. People are now investing in new
businesses in addition to themselves, and the younger generation is more focused on their own
business, despite any job. In this sense, the scope is expanding. On the other hand, without these
three forms of startups, no organization will run smoothly. People are now very innovative and
are trying to develop more companies in the organization. Also an entrepreneur has good
opportunity and vast scope in selling services rather than manufacturing a product. The
entrepreneur can achieve results if the size of the business is small. This is also a reason that
small firms have higher productivity, greater efficiency and low labor turnover. However,
statistical data clearly shows that the scope and development of these companies are completely
open to SMEs, because of the companies, approximately 96% are carried out by SMEs in Nepal.
So it is very likely that one day, all small businesses will adopt businesses in the competitive
field.
Development and Growth:
Entrepreneurial development can be defined as the ideas, initiatives, and actions that assist a
company become more successful. Enhancing revenues, expanding the firm, increasing
profitability through strategic partnerships, and making strategic business decisions are all
examples of this. Sales, marketing, project management, product management, and vendor
management are just a few of the departments involved in business development. There's also a
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lot of networking, negotiating, forming alliances, and trying to save money. The entrepreneurial
growth goals motivate and align all of these distinct departments and operations.
There are no conventional procedures or guidelines because the scope of entrepreneurial
development and activity is so broad. Everything falls under the entrepreneurial development
umbrella, from finding new prospects in external markets to implementing efficiencies in inside
business procedures. Entrepreneurial development professionals must come up with innovative
ideas, however their suggestions may be impracticable or unrealistic. It's critical to be adaptable.
Employees in charge of business development should seek out and accept constructive criticism,
and keep in mind that this is a process.
Impact of small business in the economy:

Small business is defined as a private company, partnership, or sole proprietorship, whose
number of employees and annual income are both lower than a regular-sized company or
enterprise. Although small companies can usually implement the same quality management
system as large companies, they may face different challenges in the process. For example, small
businesses tend to have fewer human resources and fewer start-up capital to commit to quality
programs. However, the participation and accessibility of senior management in small companies
may be greater, and internal communication may be easier.
A microenterprise is a very small business that produces goods or services for cash income.
Generally speaking, microenterprises have limited access to capital, have a small number of
employees and tend to be family-based. Not all micro-businesses are family-run, but when
family members work for the business, they often do so for free. Small cooperatives can also be
micro-enterprises. Microenterprises generally operate in the "informal sector" of a country's
economy, do not pay taxes, and are not recorded in official government statistics. Informal sector
entrepreneurs are more likely to start a business because they lack other employment
opportunities and have a lower average education level. Compared to formal sector
entrepreneurs, informal sector entrepreneurs employ fewer workers, are less likely to own
permanent premises, and use less business financing
Small businesses are small and familiar, and they usually operate at home. This may have an
adverse impact on the home environment, depending on the business (eg poultry, wool carding,
chemical dyeing, welding, and furniture repair). Since this influence originated in the family, it is
rarely documented. Despite these limitations, micro-enterprises are often more profitable entities
due to the unvaluation of domestic work and the reduction of general expenses. In
underdeveloped countries such as Nepal, micro-enterprises are one of the most viable options for
creating jobs and thereby reducing poverty. In addition, due to the characteristics of social
exclusion in Nepalese society, the development of enterprises such as can provide employment
for the relatively large segments of the Nepalese population, thereby reducing the income gap. A
large number of small businesses are located in the informal sector. These companies are not
regulated by various industrial laws in Nepal. Although they generate considerable income and
local employment opportunities, they are often ignored by the government. A study of small
informal forestry enterprises in Banke, Bajhang, Humla and Dolakha regions showed that a large
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part of the non-timber enterprises and wood enterprises belonged to the informal sector, and their
contribution was hardly reflected in the official statistics. There is no universal definition or
universal policy for micro-enterprises in the world. Because of the size of the economy, it varies
from country to country (Ghimire, 2021)
Due to globalization and formally closed economies, countries economy are continuing to
integrate, and entrepreneurship is on the rise. Entrepreneurs are generally viewed as national
assets that should be nurtured, driven, and rewarded to the fullest extent feasible. Entrepreneurs
have the ability to alter the way we live and work. Their discoveries, if successful, may raise our
level of living, and in addition to earning riches through their entrepreneurial endeavors, they
also create jobs and establish the conditions for a prosperous communication.
Some impacts of small and micro business in economy are:

Increase in productivity:
FIG 1: Contribution to GDP

Source: What small business will be best for Nepal and why? - Quora. Quora.com. (2021). Retrieved 10
June 2021, from https://www.quora.com/What-small-business-will-be-best-for-Nepal-and-why.
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One of the benefits of increased economic competition is that individuals and businesses
continue to look for ways to enhance their operations, make better use of resources, and, most
significantly, save costs while increasing value. All of this frequently leads to an improvement in
an economy's productivity and its gross domestic product (GDP), which is certainly beneficial to
the economy. Opponents argue that when productivity rises, unemployment rises as well. We can
see in the above graph the contribution of GDP in different past years
Entrepreneurs create new business:
Large 856 0.24 9,81,326.79 65.93

Scale No. of Percent Total Percent
of industry capital
indus
Medium 1,482 0.42 1,23,922.52 8.32
try
Small 4,186 1.17 64,159.81 4.31
Cottage 3,48,870 98.17 3,19,330 21.44
Total 3,55,394 100 14,88,739.12 100
FIG 2: summary of industry registered.

SOURCE: bahadur khatri, m. (2019). SMALL AND MEDIUM SCALE ENTERPRESES AND THEIR
ROLE IN EMPLOYMENT GENERATION IN NEPAL. Kathmandu: TRIBHUWAN UNIVERSITY. Retrieved
from https://www.nepjol.info/index.php/TUJ/article/view/28688/23403
Above figure shows that cottage businesses account for about 98.17 percent of overall industries
with little investment (21.44 percent) and. In compared to big scale industries, cottage, small,
and medium scale industries cover about 99.76 percent of total industries with little investment
(34.07 percent).
One of the most reasons that individuals tend to become entrepreneurs is because they are unable
to find suitable jobs. As a result, by being enterprising, creative and finding a market niche, not
only are they ready to generate an income for themselves but also to use other individuals in their
business operations. Therefore, one among the foremost positive impacts that entrepreneurs
make on an economy is job creation and therefore the reduction of unemployment levels. In
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developed countries we see that nearly 40 – 50% of the workforce are employed in small and
medium scale business enterprises that were started up by very enterprising individuals.
Therefore it's apparent that entrepreneurs can cause an excellent degree of impact on an economy
through job creation and income generation.
Growth of employment and industries.
FIG 3: growth of employment and industries:

SOURCE: bahadur khatri, m. (2019). SMALL AND MEDIUM SCALE ENTERPRESES AND THEIR
ROLE IN EMPLOYMENT GENERATION IN NEPAL. Kathmandu: TRIBHUWAN UNIVERSITY. Retrieved
from https://www.nepjol.info/index.php/TUJ/article/view/28688/23403
Figure 3 shows that total employment rises in accordance with total industry growth (i.e. cottage,
small and medium scale industries). In the Nepalese economy, there is a direct relationship
between total employment and total industries. As a result, the Nepalese government should
support these industries in order to create job possibilities.
Increased competition in the marketplace can lead to saturation, and as a result, many
entrepreneurs are likely to adapt to new markets or go-to-market tactics for their products and
services. However, such a phenomenon of increased competition, which ultimately makes
individuals find new markets, can be seen as a positive impact on the economy. Therefore, it can
be considered that entrepreneurs play a very important role in the economy. As the integration of
the economy continues due to globalization, entrepreneurs tend to explore markets that are
outside their national sphere, thus generating foreign income and increasing the prosperity of the
economy as a whole.
Community Development:
Entrepreneurs frequently support the enterprises of other like-minded people. They also support
local charities by investing in community projects and providing financial assistance. This allows
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them to expand their development beyond their own businesses. Some well-known
businesspeople, such as Bill Gates, have donated money to good causes ranging from education
to public health. The attributes that drive entrepreneurs to pay it forward are the same traits that
drive them to pay it forward.
Importance of small business in the social economy:

Employment opportunities:
Small companies contribute to local economies with the aid of bringing increase and innovation
to the community in which the enterprise is mounted. Small companies additionally help
stimulate monetary increase by way of offering employment possibilities to those who won't be
employed by way of large agencies. Small groups generally tend to attract talent who invent new
products or put in force new solutions for current ideas. large companies also regularly gain from
small corporations in the same local network, as many large businesses depend on small
companies for the final touch of various business features thru outsourcing.
Adapting to changing Climates

Many small businesses also own the potential to reply and adapt speedy to changing economic
climates. this is because of the reality that small organizations are often very client-oriented and
apprehend the wishes of the community. Many nearby clients continue to be unswerving to their
preferred small companies in the midst of an financial crisis. This loyalty way that small
businesses are often capable of live afloat all through hard times, which can in addition improve
nearby economies. Small companies additionally accumulate less sales than large organizations,
which means they may have much less to lose in times of financial disaster.
Contributing to local authorities with Taxes

whilst customers patronize local small groups, they're basically giving money back to their
nearby network. A small business will generate excessive degrees of revenue, which means that
the commercial enterprise can pay higher taxes, including neighborhood belongings taxes. This
money is then used for local police and fire departments in addition to faculties. A thriving small
enterprise also can enhance property values during a network, improving every home owner's
backside line while producing greater property taxes for nearby governments.
The small enterprise impact on social financial system boom also takes the form of sales tax
series. nearby agencies price sales tax based totally on their location and can be the backbone of
unique taxation districts centered on specific projects, together with lighting fixtures and
sidewalk initiatives to enhance ancient shopping districts and entice extra customers.
Growing a small business to corporation:
Small companies do no longer usually stay small. huge agencies, such as Nike and Ben and
Jerry’s, commenced off as small groups and grew to emerge as principal players within the
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country wide and worldwide marketplace. Many laptop-industry leaders started as “tinkerers,”
operating on hand-assembled machines out in their garages. Microsoft and Amazon are prime
examples of the way a small enterprise concept can trade the world. Small organizations that
develop into huge businesses regularly continue to be within the network wherein the
commercial enterprise become first mounted. Having a huge enterprise based in a community
can in addition assist provide employment and stimulate the local economic system, growing a
marketplace that favors the improvement of extra small organizations.
Evaluation of SMES and large business in the economy:
Fig 4: employment by different businesses

Source: Adnan, S. (2021). Useful SME Statistics to Make a Difference in 2021. WordPress ERP.
Retrieved 11 June 2021, from https://wperp.com/34395/useful-sme-statistics-to-get-the-success/.
SME’S ADVANTAGE:
SMEs have considerable capacity to stimulate economic growth. They create new job
opportunities, spur innovation and expand the tax base. SMEs are also intensifying competition
among companies in their sector and heating up the market scenario.This creates a situation that
benefits both suppliers and consumers. It also improves overall productivity as well as the
efficiency of the economy as a whole. New entrepreneurs bring innovations, ideas and skills.
Recently, SMEs are experiencing higher growth rates than the global industrial sector. The main
advantage of the SME sector is the ability to create jobs with low investment costs. There is a
strong association between the level of social poverty, hunger and financial well-being and the
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general situation of domestic SMEs. In most countries, SMEs make up a significant proportion
of all domestic enterprises. In most developing and developed countries, over 90% of SMEs are
improving their employment rates. In fact, as large companies downsize, small businesses
continue to grow and create more jobs. SMEs are rapidly adapting to the dynamic business world
by switching to e-commerce and selling goods and services online. Advances in technology not
only simplify the sales process, but also help reduce your advertising and marketing costs.
Various e-commerce platforms make life easier for small and medium-sized businesses. SMEs
play an important role as service providers and traders for key industries. SMEs not only produce
services but also produce finished products. SMEs are contributing significantly to the
development of various sectors such as manufacturing, agriculture and ICT services. There is a
two-way relationship between SMEs and the economy. Economic development ensures the
creation of more small and medium enterprises. The birth of small and medium enterprises led to
a revival of the economy.
Disadvantage:
The jobs created by small businesses are great, but sometimes they are temporary. This leads to
more unemployment. Small businesses can fill the market with cheap products and services to
survive and compete. While these products may temporarily replace the original products, they
are often less competitive. This completely destroys the brand image and values of aspiring small
businesses. In addition, SMEs lack the basic capital needed to establish themselves and grow
beyond certain limits. Money goes deep into the fibers of small businesses and eats away. SMEs
rely on innovation for survival. But innovation, the constant pressure to create new options,
creates uncertainty and confusion. But innovation is the best choice for the survival of small
businesses. For SMEs to survive, they need a glassy, rubbery environment. Political instability
and strict government rules and regulations have limited creativity and development. There can
be many strange things that can go wrong with just one decision. However, small businesses
with limited budgets do not take the risk of insuring your business. SMEs also face tax problems
if the government is less interested in developing business-friendly policies. Finding the right
person for a particular job remains a major challenge for SMEs. Qualified people don't want to
risk working in a small business, or being too expensive for a small business.
Disadvantage of large business:

The growth of large businesses can adversely affect the profitability of small businesses. Large
companies can deploy more marketing specialists and product designers to gain market share in
new markets. Small businesses are often at a competitive disadvantage because they do not have
the same resources. Small businesses start out as a flat organization, but as they grow, they
become complex. But as long as the decision-making process is decentralized, complexity does
not impede innovation. Innovation becomes more difficult and approvals increase as key
decisions are concentrated in large enterprises and go through multiple levels of management.
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Large corporations often provide well-paying jobs and generate tax revenues at various levels of
government. But some of them are "too big to fail". In short, the failure of one of them can lead
to widespread financial chaos. Problems in a single business unit can lead to bankruptcies,
unemployment and financial difficulties for large corporations. Large corporations often have the
financial resources to lobby on behalf of consultants.
Impact of Small business in different level of economy:

Some of the impacts in local economy:
Community development:
Entrepreneurs frequently support the enterprises of other like-minded people. They also support
local charities by investing in community projects and providing financial assistance. This allows
them to expand their development beyond their own businesses. Some well-known
businesspeople, such as Bill Gates, have donated money to good causes ranging from education
to public health.
Create a unique community identity:
Local restaurants reflect fresh food from different regions. For example, local farms sell fresh,
locally grown vegetables, fruits, meat and hunted meat. This place gives the community a unique
character and shows a unique appreciation for the chef and owner's community. From shops to
professional services, small local shops reflect the characteristics of the city. Walking downtown
the business district gives visitors the opportunity to experience the community, its values and its
identity. From cozy cafes to everyday banking, law and city services, the local business district
within walking distance invites shoppers to stay longer and connect with friends and neighbors.
A thriving shopping street gives an impression of vitality and affluence and makes a good
impression on the entire community.
Increase local tax
Local businesses pay local taxes to increase the income of cities that can be used to improve
local roads, schools and green spaces. When buyers spend money locally, taxes help the
community and make their lives better. For example, in online shopping, tax revenue may not be
found. Small business owners also spend most of their time locally. A tax on raw materials used
to make products enhances the financial health of the city. Small business owners can fulfill their
role by supporting other small business owners. Mixed-use urban centers tend to outperform
larger malls. Performance improved hundreds of times in some areas.
Impact in regional level and national level:
Job creation: Entrepreneurs are primarily job creators, not job seekers. Simply put, when we
become an entrepreneur, we lose a job seeker in the economy and offer jobs to many other job
seekers. The creation of jobs by these start-ups is one of the key objectives of economic
development. All of this constantly creates jobs and helps raise our standards globally.
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Balanced regional development: Few entrepreneurs create new commercial or industrial units,
set up in less developed areas and promote regional development. Industrial and commercial
growth in this region will eventually lead to improvements in infrastructure. Enjoy better road
and rail connections, airports, stable power systems, schools, hospitals, shopping malls and other
be public and private services. All new businesses located in a very limited development area can
create their own direct and indirect jobs and help improve the local economy. The aggregate
expenditure of all new labor in new firms and the related supportive employment of other firms
is added to the output of the local and indigenous economies. The central and state governments
are promoting the development of these areas by offering a variety of benefits and discounts to
registered SMEs.
Standard of living: Raising the standard of living of individuals in the same community is
another important goal of economic development. Entrepreneurs play an important role in
improving the quality of life in society. They do this by developing and adopting innovations that
not only create jobs, but also improve the quality of life for employees, customers and other
stakeholders in their community. For example, automation that lowers production costs and
enables faster production can increase the productivity of business units while providing
customers with similar products at lower cost.
Exports: Any growing business will want to start exporting to expand its business into overseas
markets. It is an important factor in economic development as it provides access to larger
markets, an influx of funds and access to the latest advanced technologies and processes used in
emerging markets, and overseas markets are further developed. Another important advantage is
that this expansion will generate more stable commercial profits during the downturn of the
domestic economy. Hundreds of times depending on the area.
Impact in national and global economy:
Adds the national income:
Entrepreneurial ventures generate new wealth. Existing businesses may remain confined to the
scope of existing markets and should hit the cap in terms of income. New and improved
products, services or technology from entrepreneurs enable new markets to be developed and
new wealth to be created. Additionally, increased employment and better earnings contribute to
higher value within the sort of higher taxation and better government spending. This revenue are
often employed by the govt. to speculate in other, struggling sector.
Create social change:
Entrepreneurs break away from convention and indirectly encourage freedom by lowering
reliance on old systems and technologies through their one-of-a-kind offerings of innovative
goods and services. As a result, people have a better quality of life, higher morale, and more
economic independence. Today, we see the field of social entrepreneurship expanding at an
exponential rate, which is a very positive sign because it has helped to lift millions of people out
of poverty, reduce unemployment, reduce the number of people on social assistance, and
generally improve the living standards and quality of life of millions. Furthermore, social
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entrepreneurship efforts are frequently referred to as "green initiatives," which evaluate the
influence on the natural environment and aim to limit it to a minimum.
Increased competition:
Another beneficial effect of entrepreneurship on an economy is the increased level of
competition as new businesses enter existing domestic markets. While some may argue that this
will simply result in market saturation, the advantage is that it will force all market participants
to re-evaluate their operating skills, boost value addition, cut expenses, and become more
efficient. As a result, competition minimizes the chance of monopolies and oligopolies in the
marketplace, which benefits both the customer and the overall economy.
ENTREPRENEUR
An entrepreneur is a person who creates a business based on a new idea. They are in charge of
the company and bear the risk of its success. An entrepreneur is defined by the personal risk they
are willing to take in order to start a new firm, innovate, or engage in some other sort of business.
They frequently benefit the most from their company's success in exchange for taking on that
risk. (Duermyer, 2021)
Characteristics of a successful entrepreneur: (rojas, 2021)

Entrepreneurs are inherently motivated. After all, they spend a lot of time starting a business and
investing a lot to make their dreams come true. They do all this, knowing that it can take months
or even years to enjoy the benefits of their labor. And, despite their efforts, they know that their
efforts may not be rewarded with material success. But they refuse to surrender to the fear of
failure. To continue working for a long time, you need to be motivated as well as pay close
attention. Passion is another characteristic of entrepreneurs. While a decent payday at the tip of
the tunnel is nice for motivation, entrepreneurs tend to be more driven by a passion for his or her
offering yet as by a desire to form a difference. This passion or drive also helps to sustain
entrepreneurs in periods where discouragement might otherwise happen. The best entrepreneurs
have a vision on what they need to realize, how they'll accomplish their objectives, and whom
they have on their side to succeed in their goals. Their vision acts sort of a compass that points
them within the direction of opportunities that perhaps nobody else has found. They even have
the power to translate their vision in a very way that staff and investors can understand. Through
networking opportunities, entrepreneurs can find people they need to align with.
Furthermore,Without confidence or self-belief, entrepreneurs cannot possibly succeed. They
need to be confident both within themselves and in the products or services they sell. If they
believe themselves, they'll have the power to remain the course regardless difficulties or
discouragement. get. They even have the stomach to require risks — finally, they believe that
they're going to succeed. Being able to create decisions quickly is a vital characteristic for
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entrepreneurs because it are often the difference between success and failure. Entrepreneurs not
only have to have good decision-making skills, but also must have the capacity to form those
decisions quickly so as to avoid missing opportunities. This necessitates quickly considering the
facts then deciding. As entrepreneur will be able to see, there are definitely some key
characteristics of entrepreneurship. As a innovator at the company, entrepreneur will be able to
use these traits to more capably and confidently perform their duties.
Entrepreneurial personality and their reflection on entrepreneurial

motivation and mindset:
Extraverted, Observant, Thinking, and Prospecting personality qualities define an entrepreneur
(ESTP). They are usually dynamic and action-oriented, expertly handling whatever obstacles
they face. They enjoy exploring life's possibilities, whether they're mingling with people or
engaging in more personal pastimes. Entrepreneurs always have an impact on their immediate
surrounds; during a party, look for the whirling swirl of individuals flying around them as they
travel from group to group to spot them. Entrepreneur personalities enjoy being the center of
attention, laughing and entertaining with a direct and earthy sense of humor. Theory, abstract
concepts, and drab conversations about global concerns and their ramifications do not spark the
interest of entrepreneurs for long. Entrepreneurs keep their conversations lively and intelligent,
but they prefer to talk about what is or, better yet, to simply go out and do it. Entrepreneurs help
stimulate economic development, create jobs and invent products or services that will make the
planet appear bigger. To become a successful entrepreneur, entrepreneur need original thinking
and big ideas. Anyone can come up with a new idea, but building a successful business around it
is the job of the entrepreneur. The entrepreneurial mindset is exceptional: you must be creative,
communicative and highly motivated to be successful, but also tolerant of risk and failure.
A positive attitude and outlook could be a must for successful entrepreneurs. The mindset of
the top of the corporate sets the tone for the remainder of the corporate and influences corporate
culture. Negative thoughts undermine progress and also the progress of the corporate to not
mention the management’s ability to guide staff and motivate employees. a part of what gives
entrepreneurs the strength to weather the business downturns is positivity. one in every of the
advantages of being the boss is that you just get to specific creativity each and each day.
Entrepreneurs get to do out creative tactics to raise their business and make changes. whether or
not individual are in a very creative field their understanding ways to optimize business
operations could be a creative act. When entrepreneur are heading up their own company, they’ll
be able to apply power to their sales, PR, hiring etc. The most effective entrepreneurs are
persuasive individuals. The ability of persuasion can facilitate their negotiate, close a purchase,
or score a lower cost on inventory. persuasive people tend to be inspiring leaders, they have a
tendency to be stellar bosses. While some people are more naturally persuasive than others,
persuasive communication skills are often learned and practiced. Learning to speak and present y
ideas will cause to a higher entrepreneur,no matter what the industry is. When people are starting
a business, they hope that their business are going to be a wild success. It’s true that success is
wonderful, but failure is where growth and alter happen. The key to learning from failure is to
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truly learn and embrace mistakes in order that they make better, not breakdown. Failure is
inevitable, but reaction to failure is what people create of it.
For e xample, MR Binod Chaudhary, who recently named him on Forbes Magazine's list of the
wealthiest men in the world. He has always dreamed of growing and expanding beyond his
normal abilities. He was never happy with his performance. It made him more and more
dreaming about the business world. Lack of preparation, training and experience was no excuse
for him to move on. Strong will and a high level of optimism are central characteristics of
entrepreneurs. He works hard and dreams of achieving it and now he has proved to be a
successful entrepreneur. His entrepreneurial journey from the small Arun Emporium, a retail
store in New Road Kathmandu, founded by his late father Lun Karan Das Chaudary, varies
around the world, including FMCG, hospitality and energy companies. Expanded to include
retail sectors. Today he is the wealthiest man in Nepal and the first recognized Nepalese
billionaire in the world. He owns the Cinnovation / Chaudhary Groups of Industries, owns Nabil
Bank, and invests in the hospitality industry around the world. He took a great risk by setting
up a noodle factory in Kathmandu, despite the advice of Thai market experts who came to Nepal
to observe the noodle industry market. Despite many disagreements among contemporary
people, Mr. Chaudary saw ample market opportunities within the changing framework of Nepal.
In the near future, WaiWai Noodles will expand to 35 countries and already have a 70% market
share in Nepal. Failure has always prompted Chaudhary to success. The thing to know is that
he faced difficulties. He developed institutional mechanisms to deal with technical issues, for
example, hiring a certified public accountant and experts in his company was his decisive step.
When the initial plan failed, they used their trade and political connections to increase
investment in various sectors. He also developed his leadership skills at the financial policy level
by joining various umbrella organizations such as CN, the Federation of Nepalese Chambers of
Commerce and Industry (FNCCI) and others. Reaching the centers of power, he overcame
controversy and baseless allegations.
Mr. Chaudhry's entrepreneurial Features: ("Binod Chaudhary: Always Expanding and Growing",
2013)
 Excellent aspiration is always a businessman's dream and he works hard to achieve it

through dedication and dedication.
 To address a business problem, a culture of institutional mechanisms (e.g., hiring experts)
is essential to overcoming specialized knowledge in the area.
 Doing business is more than just being a market analyst. Mr. Chaudhry refrained from
relying on ideology and followed the knowledge provided by practice and living
experience.
 To secure the market for the product, a businessman created a demand and made a profit.
In addition to being optimistic, a businessman has to brainstorm as a result of his
decision, his critical thinking plays an important role in providing a safe direction.
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 A business person should always minimize management and other costs and invest as
much money and time as possible in improving market efficiency for the product. A
businessman is also a leader, he should have a bright, moral and disciplined personality.
Some arguments relating to entrepreneurial characteristics:

Entrepreneurs are born with the will to succeed.
Many people believe that entrepreneurs are born with specific innate talents and that only those
with certain talents can be entrepreneurs. The truth is that practically anyone who can gain the
requisite skills can become an entrepreneur. True, some people adapt to the demands of the job
more rapidly than others, but there's no rule that says only certain people can start businesses.
Entrepreneurs can be gregarious extroverts or quiet introverts, big picture thinkers or detail-
oriented when it comes to executing a business plan. Entrepreneurship is an acquired skill rather
than a natural talent. (krach, 2017)
3. Starting a new business ensures independence.
Many people are drawn to the possibility of starting their own business because it allows them to
break free from the standard 40-hour work week. Many people discover that, while leaving
behind their old schedules and creative restrictions, they are replaced with new demands. Sure,
there will be more freedom in certain ways, but entrepreneurship frequently necessitates
significant sacrifices. It has the potential to dominate every waking moment of your life; the job
doesn't stop when the clock strikes 5 p.m. (krach, 2017)
The entrepreneur bears full responsibility.
Another myth about starting a business is that it is entirely dependent on the entrepreneur. This
may be true in the beginning, but adopting this concept too seriously is the surest way to burn
out. Collaboration and delegating are important aspects of a company's health. Nobody can
accomplish it all by themselves. (krach, 2017)
At the helm of a company, an MBA is required.
When it comes to entrepreneurs and business degrees, conflating value with necessity is a
mistake. On the one hand, a formal education has incalculable advantages. Entrepreneurs, on the
other hand, are not required to hold an MBA or other business degree by the market. Some
company founders, for example, have degrees in engineering and use their in-depth technical
knowledge to uncover technology gaps and design solutions. Other successful startup founders
do not have a college diploma. (krach, 2017)
Quitting is a last resort for losers.
One final misunderstanding is that entrepreneurs must put everything on the line – no matter
what. But the reality is that not every idea will turn into a viable business. Successful
entrepreneurs frequently cycle through and test a variety of concepts before settling on one that
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sticks. Quitting may appear to be a failure, but it's actually a frequent aspect of the entrepreneur's
journey and can teach you a lot. It's crucial to know when to walk away and move on to the next
idea. (krach, 2017)
Motivational drivers of successful entrepreneurs:

entrepreneurial motivation is the process of transforming a regular person into a powerful
businessman who can generate possibilities and contribute to the growth of wealth and the
economy. Various elements inspire wants and generate excitement in entrepreneurs, causing
them to achieve a specific goal. Entrepreneurship is the process of discovering strengths and
opportunities that aid in realizing one's aspirations of establishing, creating, and running a new
firm while effectively dealing with dangers and hazards.
Source: The Importance of Motivation in Social Enterprises. Eoi.es. (2021). Retrieved 14 June 2021, from
https://www.eoi.es/blogs/imsd/the-importance-of-motivation-in-social-enterprises/.
To become an entrepreneur, one must first recognize one's own abilities and prospects in the
outside world. Motivation is important in finding one's own talents in order to become great
leaders or powerful entrepreneurs who are willing to take risks and face uncertainty in order to
achieve pre-determined goals.
Some internal motivational factors:
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Source: https://www.shutterstock.com/search/maslow
Physiological: These are basic physical requirements such as drinking when you're thirsty or
eating when you're hungry. Some of these wants, according to Maslow, involve our efforts to
meet the body's need for homeostasis, which involves maintaining consistent levels in various
biological systems (for example, maintaining a body temperature of 98.6°). 1.Physiological
requirements, according to Maslow, are the most important of human requirements. If a person is
lacking in more than one need, they will most likely prioritize meeting their physiological needs.
When someone is extremely hungry, for example, it is difficult to concentrate on anything else.
The requirement for proper sleep is another example of a physiological requirement. Safety: The
next demand that arises once people's physiological needs are addressed is a safe environment.
Our safety needs are evident as early as childhood, since children have a desire for safe and
predictable situations, and when they are not provided, they often react with fear or worry. Safety
requirements are more obvious in emergency situations (e.g., war and disasters) in adults living
in industrialized countries, according to Maslow, but this need might also explain why we choose
the familiar or why we buy insurance and contribute to a savings account. Belonging and
Love:Feeling loved and accepted, according to Maslow, is the next need in the hierarchy. This
requirement include romantic relationships as well as friendships and family ties. It also
encompasses our desire to be a part of a social group. This urge, it's worth noting, covers both
feeling loved and loving others. For example, having social ties is linked to greater physical
health, while feeling lonely (i.e. having unfulfilled belonging needs) has negative health and
well-being repercussions. Esteem:The urge to feel good about ourselves is one of our esteem
demands. Maslow defines esteem requirements as having two components. The first entails
having self-assurance and a positive attitude toward oneself. The second component is to feel
valued by others, i.e., to believe that our accomplishments and efforts have been acknowledged
by others. People feel secure and regard their contributions and accomplishments as significant
and meaningful when their esteem requirements are addressed. Self-ActualizationSelf-
actualization refers to a sense of fulfillment or living up to one's full potential. One
distinguishing element of self-actualization is that it takes on diverse forms for various people.
Self-actualization may entail assisting others for one person, while it may entail success in an
artistic or creative sector for another. Self-actualization is defined as the sense of doing what we
believe we were born to do. Maslow claims that self-actualization is a rare occurrence, citing
Abraham Lincoln, Albert Einstein, and Mother Teresa as instances of notable self-actualized
people.
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Some other motivational drivers of successful entrepreneurs:

The sense of accomplishment that comes from accomplishing something outstanding:
In a lecture titled "How to Live Before You Die," Steve Jobs summarized his intrinsic drive in
2005 at Stanford. “Your work will occupy a significant portion of your life, and the only way to
be truly satisfied is to do work that you believe is great,” he stated. And loving what we do is the
only way to produce great work.” (Zwilling, 2015)
Personal development and achievement.
It's impossible to be a successful entrepreneur if you don't keep moving forward. The best
entrepreneurs are equally enthusiastic about the road as they are about the destination. They have
a passion for information that will benefit both their business and their personal development.
This combination generates a sweet spot where their impact is maximized. If we don't know how
to master internet marketing, for example, we have no choice but to cultivate the talents of
studying internet marketing. we might look for numerous online marketing techniques in this
scenario, such as a local internet company directory Australia.
Assisting others in achieving their objectives.
Help others attain their goals if you want to achieve your own. Great entrepreneurs are always on
the lookout for complementary businesses in their industry. Elon Musk has made Tesla
automobile battery patents available to everyone, which will certainly help both his and their
businesses.
Making a positive impact on the world.
Bill Gates had no idea how wealthy he would become when he carried out his aim of placing a
computer in every home and on every desk since all he wanted was to make a difference.
(Zwilling, 2015).Extrinsic drives frequently work against entrepreneurs, causing them to set
unattainable and burdensome goals.
Build a business that has personal importance for you.
Guy Kawasaki urges entrepreneurs to focus on generating significance rather than money in his
book "The Art of The Start 2.0." (Zwilling, 2015)"You're doomed," he has remarked many times if
your objective for your company is to expand it only to sell it to a huge corporation or to take it
public and cash out. Do it for the sake of significance. (Zwilling, 2015)
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Background and experience that can hinder or foster entrepreneurship.
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Entrepreneurship is mostly hindered or fostered by an individual's experiences or background. It

has been discovered that people who have had positive food experiences in the past have
confidence in their ability to perform the job. Bad experiences or backgrounds, on the other
hand, hinder entrepreneurship. After a child's senses developed, they began to learn a variety of
things. Education allows them to get technical skills that will assist them in successfully
launching their firms (Hoffman et al. 2013). It has been seen that educated individuals can begin
their firms with more technique or strategy, allowing them to reach more sustainability. A
positive culture fosters productive attitudes, behaviors, and values in the pursuit of
entrepreneurship.
Economic issues are always important when it comes to entrepreneurial growth. In today's
competitive market, each company's performance is largely determined by the country's
economic situation. Poor economic conditions have been found to hinder entrepreneurship by
limiting the ability of enterprises to generate income (Bell et al. 2014). Self-sacrifice, self-
confidence, and the ability to take risks are all characteristics that make an entrepreneur succeed.
Additionally, family support is essential for the development of successful entrepreneurships
because it boosts the entrepreneur's confidence. Effective business experiences and expertise
foster any entrepreneur in obtaining greater success by assisting in the more effective alignment
of the business' resources with the corporate aim.
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Some other factors that background and experience can hinder or foster entrepreneurship:
Family background:
Since family is historically represented a fundamental type of social organization, it is an
important dimension of culture (Chrisman et al 2002). Family involvement in a person's choice
to establish a business can have a beneficial or negative impact, depending on whether they
endorse and support the decision or try to discourage the potential entrepreneur. Families offer
practical support to aspiring and established entrepreneurs, and they can also assist with
fundraising.
Example: Samsung is one of the most well-known brands in South Korea, and no one needs to be
told about it. Lee Byung Chul was the catalyst. This well-known company was founded by him.
He was not wealthy, so he began working at numerous occupations before deciding to work for
himself. He took out a business loan at initially, but it didn't work out for him or his company.
He wasn't in the trucking business before, but after seeing the forthcoming innovation in the
field, he decided to start his own. Taking out a business loan might put a company in a difficult
predicament. The term "loan" refers to a debt that will become a burden for the company.
Education:
Everyone benefits from education since it allows them to learn about a variety of topics. Through
various articles, books, and training courses, an entrepreneur can gain knowledge about
numerous elements of company. It is not necessarily true that only those with a high level of
education may be successful entrepreneurs. A person can become a successful entrepreneur if he
or she has the drive and understands the fundamentals of business. For example, Steve Jobs
(founder of Apple), Jan Koum (founder of Whatsapp), and many more well-known individuals
were college dropouts who demonstrated that a college diploma is not required to achieve
success (Neck and Greene, 2011, p.63).
Personal factors:
Personal considerations might also impact a person's decision to become an entrepreneur or not.
Entrepreneurs with vast imaginations, maturity, optimism, foresight, risk-taking ability
efficiency, self-confidence, leadership ability, dynamic thinking, hard effort, honesty, and other
attributes are certain to succeed.
Cultural factors:
Social organizations, traditions, educational levels, personal behavior, situational conditions,
caste or class system, familial training, and another ethical level of society are examples of social
and cultural elements that influence entrepreneurship or entrepreneurial development. The
entrepreneur must be familiar with the culture of the country in which he or she currently resides.
Customers' demands for products and services varies from one country to the next, influencing
their purchasing decisions. The business pattern and operations are also influenced by national
36 | P a g e
culture. Entrepreneurial enterprises must adhere to the norms and regulations of the legislation in
the country in which they seek to operate.
Experience:
In order to access and sustain a great business idea, entrepreneur must have prior experience. An
entrepreneur's experience makes them aware of the situations they can confront in the market
while running their business.
Background and experiences that influence entrepreneur positively and

negatively:
Motivational factors:
In the development of an entrepreneur, motivation is crucial. It is a powerful internal urge and
energy that motivates him to pursue entrepreneurial endeavors and urges him to attain his
objectives. Entrepreneurial motivation is beneficial to the growth of a business. Important
aspects include achievement motivation, power motivation, and expansion motivation. The
motivation to succeed Focuses on a person's ambition to pursue goals, try new things, and work
efficiently. He will be inspired to start a business if he has the interest, temperament, and
dedication to do it otherwise he will not.
Entrepreneurial skills:
For an entrepreneur, the following three categories of abilities are required:
For the purpose of developing an industry, an entrepreneur must be able to collect numerous
facts and information, formulate projects, consider various stages of projects, and make
investment decisions.
For successful management and operation of the industry, the entrepreneur must possess
managerial skills. He must plan work, arrange numerous activities, make effective judgments,
communicate effectively, give orders, and exercise effective control, among other things.
In order to carve out a separate identity in the industry, an entrepreneur must be able to think
creatively and seize possibilities.
Entrepreneurial knowledge:
Entrepreneurs must be well-versed in the following three areas: He should be aware of the
environment's physical, social, cultural, political, legal, technological, and ethical aspects. He
should be knowledgeable about a variety of topics connected to alternative industries, such as the
best option among several options, the raw material to be used (foreign or domestic), the
manufacturing process, product distribution, competitive businesses, and so on. Following the
selection of the best industry, the entrepreneur should have a thorough understanding of many
technological aspects of the industry, such as appropriate production techniques, expenses, and
expected profits, in order to facilitate the growth of the business.
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Normative behavior:
The ability to accept risks and uncertainties indicates that a person is not afraid of challenges or
obligations. They put in long hours, and these facilities encourage entrepreneurship. In the
growth of an entrepreneur, family expectations or incentives play an essential role. If the family's
leader and other members want to make a lot of money by conducting independent work and
involving all family members, the family's social standing rises, and the likelihood of starting
their own business rises. The desire to live an independent and self-sufficient existence is also
beneficial to a man's development as an entrepreneur and aids overall entrepreneurship
development.
Socialization:
Accepting risks and uncertainties demonstrates that a person is not afraid of difficulties or
responsibilities. They work long hours, and these facilities motivate them to start their own
business. Family expectations or incentives are crucial in the development of an entrepreneur.
The family's social standing rises, and the possibility of beginning their own business rises, if the
family's leader and other members wish to make a lot of money by conducting independent work
and involving all family members. The desire to be self-sufficient and independent is also
advantageous to a man's development as an entrepreneur and promotes overall entrepreneurship
development.
Government policies and incentives:
Various government economic and commercial policies, such as industrial policy, licensing
policy, farm policy, monetary and fiscal policy, labor policy, export-import policy, and so on, all
have an impact on the development of entrepreneurship. Government economic policies that are
appropriate, progressive, and sound may support the growth of entrepreneurship. The
government can entice entrepreneurs by informing them about the government's favourable
attitude toward businesses and industries through these policies, as well as by giving incentives
and other benefits.
Conclusion:
Many young people have been encouraged by the entrepreneurial process to become
entrepreneurs. Entrepreneurs have had a lot of success turning their unique ideas into profitable
businesses. Their innovations and expertise are reflected in the products and services they
provide. These entrepreneurial enterprises have helped to boost economic growth and improve
the economic conditions of many countries by offering millions of job possibilities.
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Understanding Entrepreneurship and Small Business Management

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Entrepreneurship and small business management

Unit 9: Entrepreneurship and Small Business Management

ASSIGNMENT COVER SHEET

Student ID Manish Hamal Reg No.

Family Name Hamal Given Name Manish Hamal

Enrolment Year 2019 Section A

Semester 2 Email manishhamal@ismt.edu.np

Unit Title Entrepreneurship and Small Unit Code T/508/0495

Assessor Name Nabin Gajurel Issued Date 04/13/2021

Assignment Title Understanding Entrepreneurship and Small Business Management

Assignment No 1/1 Submission Date 06/12/2021

Qualification BBA Campus ISMT

STUDENT ASSESSMENT SUBMISSION AND DECLARATION

Student Name Manish Hamal Assessor Name Nabin Gajurel

Student signature: Date:

Pearson Education 2018

Types of entrepreneurial ventures :............................................................................................................5

Types of entrepreneurial ventures :

Small business entrepreneurship:

EXAMPLE OF SMALL BUSINESS ENTREPRENEURSHIP:

Some of the small business entrepreneurship are:

Types of private enterprises

Scalable startup entrepreneurship:

Source: About Us. Pages.daraz.com.np. (2021). Retrieved 13 June 2021, from

Source: Dokorecyclers.com. (2021). Retrieved 13 June 2021, from https://dokorecyclers.com/about.

Relation of typologies with entrepreneurial ventures:

Similarities and differences between etrepreneural ventures:

Ventures Objective Role Characteristics

Scalable startup Their primary goal is These types of The founders

Social The society benefits As a responsible These can be non-

Diverse range of entrepreneurial ventures to understand entrepreneurship

Scope, development and growth of entrepreneurial ventures:

Impact of small business in the economy:

Some impacts of small and micro business in economy are:

FIG 1: Contribution to GDP

Entrepreneurs create new business:

Large 856 0.24 9,81,326.79 65.93

Small 4,186 1.17 64,159.81 4.31

Cottage 3,48,870 98.17 3,19,330 21.44

Total 3,55,394 100 14,88,739.12 100

FIG 2: summary of industry registered.

FIG 3: growth of employment and industries:

Importance of small business in the social economy:

Adapting to changing Climates

Contributing to local authorities with Taxes

Evaluation of SMES and large business in the economy:

Fig 4: employment by different businesses

Disadvantage of large business:

Impact of Small business in different level of economy:

Characteristics of a successful entrepreneur: (rojas, 2021)

Entrepreneurial personality and their reflection on entrepreneurial

 Excellent aspiration is always a businessman's dream and he works hard to achieve it

Some arguments relating to entrepreneurial characteristics:

Motivational drivers of successful entrepreneurs:

Some other motivational drivers of successful entrepreneurs:

Background and experience that can hinder or foster entrepreneurship.

Entrepreneurship is mostly hindered or fostered by an individual's experiences or background. It

Background and experiences that influence entrepreneur positively and

About Us. Pages.daraz.com.np. (2021). Retrieved 13 June 2021, from

Bailetti, T. (2021). Retrieved 13 June 2021, from https://timreview.ca/article/520.

Corporate Entrepreneurship | Corporate Entrepreneurs. Corporate Entrepreneurs. (2021). Retrieved 13

Dokorecyclers.com. (2021). Retrieved 13 June 2021, from https://dokorecyclers.com/about.