Entrepreneurship and Small Business Management

This report covers the range of ventures types, evaluation of small business impact on the economy, determination of entrepreneurial mindset, and analysis of environments that hinder or foster entrepreneurship.

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT.......................................................................................................................1
TASK 2............................................................................................................................................1
P3 Interpret and assess relevant data and statistic to illustrate the impact of micro and small
business have on the economy...............................................................................................1
P4 Explain the importance that small businesses and business start-ups on the growth of the
social economy.......................................................................................................................3
TASK 3............................................................................................................................................5
P5: Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business........................................................................................................5
P6. Entrepreneurial motivation and mindset..........................................................................6
TASK 4............................................................................................................................................7
P7. Examination of how background and experience can hinder or foster entrepreneurship 7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

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INTRODUCTION
Entrepreneurship is considered as an integration of practices as well as procedures which
are considered through a person for managing and operating its own business concern.
Moreover, Ttheise practices are needed to be performed effectively as some risks are involved
for generating high profitability from that enterprise. This report covers illustration as well as
description of range of ventures types. MoreoverAlso, evaluation of small business impact upon
economy and determination of entrepreneurial mind set key aspects are described in this report.
Apart from this, analysis of various environments which hinder or foster entrepreneurship is also
discussed in this report.
TASK 1
Covered in PPT
TASK 2
P3 Interpret and assess relevant data and statistic to illustrate the impact of micro and small
business have on the economy.
A micro business is an organisation with very less number of employees. It is a kind of
business that operates its activities at a small scale (Cornwall, Vang and Hartman, 2019). It
consists of nine or very fewer staff members. Organisations with overall annual sales or assets
for less than $250,000 per years tends to have a micro business. According to a study, there are
around 5.9 million private sector business in United Kingdom out of which around 5.82 million
are comprises of small business (STATISTICAL RELEASE, 2019). Micro business plays a crucial
role in stimulating economic growth of the country by providing opportunities to people who are
not employed. Total number of business in UK private sector along with their associated
turnover and employees is discussed here.
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(Source: STATISTICAL RELEASE, 2019)
Interpretation: According to the above data it can be estimated that UK consist of about
5,867,770 business in total which has a major impact on overall economy. Out of which SMEs
consist of three fifth of the employment and around half of turnover rate in UK sector (Davies,
Haugh and Chambers, 2019). Total number of SMEs was found to be 5,860,085 in the year
2019. Turnover rate was estimated around 2,168,005. Employment in small business was found
to be 13,157 and turnover rate was 1,528,684. Medium sized business employment was
estimated to be 16,630 with a turnover rate of 2,168,005.
Thus, it can be interpretation that SMEs plays an important role in the economy of United
Kingdom as it dominates around three fifth of the total number of business. Contribution of
different business of different sizes to total number of population, employment and turnover in
the year 2019 is discussed here.
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Illustration 1: STATISTICAL RELEASE, 2019

Interpretation: According to the above graph, it can be estimated that percentage of
small business is 99.3 in the initial year of 2019. Overall employment of SMEs was about 15.7
million which 60% of the whole jobs in private sector of UK. Annual turnover of small and
medium sized business is 36.8% and 15.4% respectively.
Thus, it can be analysed that small and micro business of UK owns a large area of market
share. Small business contribute to economy of the country by means of three prime ways such
as they give an opportunity to individuals who are looking for a job and thus make them
financially stable. It create number of employment opportunities for the citizens of the United
Kingdom so that overall economical rate can be maintained properly and helps the country to
eliminate the ratio of unemployment (Donckels and Miettinen, 2019). Small size companies can
provide goods, services and jobs to the country in an effective manner. The rapid growth of small
and micro business organisations has a direct impcatimpact on economy of United Kingdom.
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Considering the above mentioned information, it is interpreted that overall Small and
Medium sized enterprises has enhanced the size band level around 2.0 million which is
particularly +59%. Including this, it is said that around 2000, more than 214,000 Small and
Medium sized enterprises and their employers grew businesses by +19%. including this, the
number of medium-sized employers grew by +24%, the number of large businesses is now the
same as in 2000, having fallen and then improvised performance level as well in specified time
frame.
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Illustration 2: Growth in the number of UK private sector businesses by size
band,2000 to 2016 (index: base year=2000)

Including this, if it is talked about the percentage change in the number of VAT/PAYE
registered and unregistered businesses by legal form then Small and Medium Sized Enterprise
has specifically shared total employment has remained relatively stable over time at around 60%
of total private sector employment.
Away with this, total employment in SMEs enhanced from 15.6 million at the start of
2015 to 15.7 million in 2016, with the majority of the increase being in businesses only
employing the owners.
P4 Explain the importance that small businesses and business start-ups on the growth of the
social economy.
Social economy refers to combination of various enterprises and institutions having a rich
diversity including associations, foundations, paritarian institutions & social enterprises,
cooperatives and mutuals. Start ups and small business are the important elements of the
business as it provides job opportunities and revenue for the individuals of a country (Feola and
et.al., 2019). The initiation of small sized businesses areis supported by government of the
country in context of providing support including loans. These new start ups are helpful in
providing more employment opportunities and enhance the living standard of overall population
of the country. Importance of such companies on economy in regards to growth of the country is
discussed here.
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Illustration 3: Percentage change in the number of VAT/PAYE registered and
unregistered businesses by legal form, 2015 to 2016

 Enhance standard of living: Small size organisations and start ups play a vital role for
the social economic growth of the company as they provide employment opportunities to
the individuals of the country which will eventually enhance the standard of living of
individuals. It helps in facilitating effective goods and services at reasonable cost for the
citizens of the country. However, it is also helpful to fulfil all the requirements of local
people which can be observed as a result of enhancing the living standards of individual.
As per the given data, small businesses are responsible for having around 99.3% of the
total business share in United Kingdom. Overall employment of SMEs was about 15.7
million which 60% of the whole jobs in private sector of UK which in turn helps
individuals to earn money and enhance their standard of living. Making money will help
individuals to fulfil all the necessary requirements and help them to achieve success in
their life. Thus, it has been proved that small size business and start-ups has a major role
in life of an individual.
 Economic development: Both start ups and small sized business plays a crucial role in
economic development of the country as it provides opportunities for job for local
citizens of the country and eventually enhance rate of per capita of the nation. Along with
the job opportunities, such enterprises also utilisesutilise less number of natural resources
such as energy and fuels which defines its contribution to the growth of economy of the
country (He, Lu and Qian, 2019). It gives around 47.8% of employment to the
individuals which is a large contribution to overall economy of United Kingdom. It
brings high flow of cash along with large number of employment opportunities. As it
gives an opportunity to individuals for earning money it is contributing to overall
economy of the country and it will enhance the financial status of the country eventually
as each and every citizen sustaining in the country would be able to make money with the
help of start- ups and small business organisations.
 Contribute to local government with taxes: Small business and start ups will generate a
high amount of revenue which means that the business will pay local property taxes and
high taxes (Hechavarria and et.al., 2019). Thus, this money could be used in education of
government schools and I local police departments. Small business can enhance property
values in a community through generating taxes for local government. As companies will
pay higher taxes to the government it will help in to collect funds for other important
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aspects of the country such as local healthcare organisations, local educational programs
and promotional activities.
TASK 3
P5: Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business
Within the competitive working culture or environment there are several kind of
entrepreneurs who have different types of characteristic, traits and skills that makes person
successful entrepreneurs within dynamic environment of business and also differentiate them
from other business man and women. There are several traits and skills of successful
entrepreneurs named as Anthony Rose and Mark Pearson, in deatildetail about both
entrepreneuresentrepreneurs, that are:
Anthony Rose
He is a serial tech entrepreneur whose career started across so many sectors through
including advent of 3D graphics, Social TV, social platforms and so on. Along with this, there
are skills and traits in regards with Anthony Rose, mentioned below:
Characteristics
Confidence: Anthony Rose has lots of confidence that brings feeelingsfeelings of self
belief which is essential for developing proper decision towards business. On the other side self
confidence entrepreneur help others to resolve each and every issues in a perfect way. This type
of characteristic makes him different from other managers of business while taking decision.
Energetic: This type of characteristic of respective entrepreneur makes him enthusiastic
in order to complete project on time. It provides motivation and positive vibes to another people
so that they can work in a better way. Therefore, it is very effective characteristic to learn
something.
Traits
Versatility: Anthony Rose perform every task in a perfect way as well as able to handle
every situtationsituation of business in a proper manner. It helps him to attain future goals and
objectives perfectly.
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Decisiveness: With the help of this trait respective entrepreneur is able to understand
each and every issue so that he can take decision in a better way. Herein, managers are not able
to take decision towards adverse situation.
Skills
Time management: It is an essential as well as important for entrepreneur in order to
gain successful goals and objectives through focusing on time. With the help of this skills
Anthony Rose able to work on time and inspire other people towards work. Whereas, manager
do not have effective time management skills so that they can not achieve target on time.
Resilience: It is helpful for him to difficult situations in a proper way. Herein, manager
needs to have large number of tools and techniques to solve their issues in firm.
Curiosity: Anthony Rose also consist of this skill, which helps him in discovering
specific and new problems. This has brought this serial tech entrepreneur in revealing potential
niche opportunities, and raised number of original business process considering the innovation at
marketplace.
Mark Pearson
He is a founder of Markco Media which is known as European discount network. In 2014
this is listed publically as mobile payment firms. The main skill, traits and characteristic are
given below:
Characteristics
High Perseverance: Mark Pearson always motivates other people through applying their
huge efforts over handling every situation of work. Thus, he has great personality and always
able to work properly. Whereas, Manager needs to follow few approaches to handle overall
situation at workplace.
Traits
Passionate: Mark Pearson is very passionate towards him work. Thus, he is highly
passionate about their work and achieve its target. Manager are not much passionate so that they
need to focus on their work.
Skills
Communication skill: Mark Pearson has effective communication skills so that he can
easily influence people as well as stakeholders, customers, clients and partners as well. Managers
do not have effective communication skills so they mainly face so many issues and conflicts.
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Strategic thinking: Another skill that came in front of Mark Pearson is learning to
decompose a problem to its core and reveal opportunities for growth. Figuring out creative
solutions and identifying the low-hanging fruits.
Entrepreneurial motivation and mindset
Entrepreneurial personality always reflects on other people towards behaviour and
attitude in order to set motivational mindset for others. In order to understand overall
characteristics and behaviour of entrepreneurial personality OCEAN model has been developed.
This model includes five stage those are going to be discussed below:
Openness- In this stage, individuals having openness in their nature so that they can
show their interest in a broad way.
Conscientious- According to this, individuals always finish their working goals within a
certain period of time.
Extraversion- In this people have power to express their emotions and communicate
with people. With the help of this they can handle each and every issues of firm.
Agreeableness- This type of personality towards individual always considered as a
faithful and trustable. So that entrepreneurs can cope up with social services in a proper way.
Neuroticism- This is considered as not suitable personality as people behave quiet weird
so they can be aggressive and unstable of mind.
All the personality traits mentioned above are common traits which are shared by
entrepreneurs including Mark Pearson and Anthony Rose.
Mark Pearson
By having different types of characteristic and skills he is able to make his personality
attractive and able to shape their lifestyle in a perfect way. Therefore, it is necessary for manager
as well to follow such kind of nature to make a successful person. He is CEO and founder of
Markco Media which is an European discount network. Marckco Media is parent company of
MyVoucher Codes.
Anthony Rose
He is one of the best entrepreneur, according to its nature he is able to manage their work
on time and it shows his personality in a perfect way. Therefore, his personality is very impactful
on others and motivates so many people among the work. He is serial tech entrepreneur whose
career has spanned across several sectors such as advent of 3D graphics, Video streaming, social
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TV, social platform, legal technology and many more. Anthony Rose is best known for his work
managing practices.
TASK 4
P7. Examination of how background and experience can hinder or foster entrepreneurship
In the aspect of becoming an entrepreneur, there are different types of factors which
influence an individual to become a successful entrepreneur. It overall depends on level of
education, past experience, family background and many more (Nowiński and et. al., 2019).
Herein, below some key factors are mentioned which helped Anthony rose and Mark Pearson to
become a successful entrepreneur: Level and type of education: The level of education is too crucial for individuals to
become an entrepreneur. Herein, this is important to know that education is not only
important to become a successful entrepreneur but also contributes in becoming a
successful citizen of any nation. Such as in the aspect of Anthony Rose, this can be find
out that he used “pick and place” machine and automatic machine in the study. He was
student of University of Cape Town. While in the context of another entrepreneur, Mark
Pearson it can be find out that he left school in the age of 16 in order to take admission in
a local catering college. During, study he won different competition of cooking across the
nation. It is indicating that both entrepreneurs did higher education in own fields. On the
other hand, if they had not study higher courses then this could be difficult for them to
become successful entrepreneur. So overall this factor makes a significant impact on the
individuals in order to become a successful entrepreneur. National culture: The term national culture can be defined as norms, beliefs and values
which are shared by population of a particular nation. Along with these aspect, under itits
other characteristics are also included like language, religion, cultural history and many
more (Radović-Marković and Tomas, 2019). All these elements affect to individuals
own capabilities and skills. Such as in the context of above mentioned entrepreneurs this
can be find out that both belong from different nations like Mark Pearson is from United
Kingdom and Anthony Rose is from South Africa. Both entrepreneur's career has been
influenced from culture of their country from which they belong. The culture of South
Africa is considered to be more peaceful and ethical. This helped the Anthony Rose to
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become a successful entrepreneur. On the other hand, in context of United kingdom's
culture this can be find out that it is helpful for grooming of individuals as well they can
get opportunity to be developed. It indicates that national culture of a particular nation
contributes huge in order to become a successful entrepreneur. Economic circumstances: Along with the above mentioned factors, economical factors
also help in order to become a successful entrepreneur. This is so because if in a country
economical condition will be suitable then it will be easier for managers to get financial
assistance from different institutions. In the aspect of both entrepreneurs, it can be find
out that they became entrepreneur because of better economic conditions in their nations
(Ramadani and et.al., 2019). Such as in the South Africa, economic condition helped to
Anthony Rose to get financial assistance from different sources at lower cost. from
different sources at lower cost. As well as in United Kingdom also, their economic
condition was stable which allowed Mark Pearson to extend own business by help of
financial assistance from different alternatives. This shows that economic circumstances
help to individuals in order to become a better entrepreneur. Family background: In addition, family background of companies also contributes in
becoming an entrepreneur. This is so because if family background will be educated and
supportive then it will be easier for individuals to become a successful person. Similar in
the case of both entrepreneurs, it can be find out that their family supported them to
become an entrepreneur. Their family supported them in all the aspects including
financial and non financial sources.
 Character traits: Definition of a trait is a distinctive quality or intrinsic value that
somebody has that they are unlikely to improve and that certainly makes a person into the
sort of person that he is. Examples of the character traits are compassion and sociability.
These traits contribute effectively to individuals to become an entrepreneur. This is so
because some basic traits like loyalty, sincerity, self control etc. then it can contribute to
become an entrepreneur (Satar and John, 2019). Such as above mentioned entrepreneurs
Mark Pearson and Anthony Rose have all the traits which are needed to motivate others.
They are able to influence their subordinates from their traits.
So overall, in accordance of above mentioned factors this can be stated that all these help
individuals to become entrepreneur. These all factors have significant impact on perception of
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individuals to become a successful entrepreneur. Apart from it, if individuals will not have
enough character traits then this can be difficult for them to influence others to follow their rules.
As well as another factor which influence highly to individuals is the family background. This is
so because if an individual will have family support then no one can prevent him to become
entrepreneur.
CONCLUSION
As per the above report, it has been concluded that entrepreneurship is an efficacious
practice which have to be adapted through person for managing as well as starting its own
business. This is very crucial that various kind of entrepreneurial ventures are analysed with
exploration of difference as well as similarities among them as it permit an effective insight upon
nature and performance of different entities. Moreover, SME's has an evident as well as vast
affect upon economy of United Kingdom. Also, start-up and small enterprise are vital for social
economy. Along with it, this is more imperative that entrepreneur’s traits, skills and
characteristics are recognised that represent its personality as well as distinguish them from
another manager. In addition to this, analysis of experience and background effectually shows
that how entrepreneurs can foster or hinder by social aspects.
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REFERENCES
Books and journal
Cornwall, J.R., Vang, D.O. and Hartman, J.M., 2019. Entrepreneurial financial management: an
applied approach. Routledge.
Davies, I.A., Haugh, H. and Chambers, L., 2019. Barriers to social enterprise growth. Journal of
Small Business Management. 57(4). pp.1616-1636.
Donckels, R. and Miettinen, A., 2019. Entrepreneurship and SME research: on its way to the
next millennium. Routledge.
Feola, R. and et.al., 2019. The determinants of entrepreneurial intention of young researchers:
Combining the theory of planned behavior with the triple Helix model. Journal of Small
Business Management. 57(4). pp.1424-1443.
He, C., Lu, J. and Qian, H., 2019. Entrepreneurship in China. Small Business Economics, 52(3),
pp.563-572.
Hechavarria, D. and et.al., 2019. High‐growth women’s entrepreneurship: Fueling social and
economic development.
Kunaka, C. and Moos, M.N., 2019. Evaluating mentoring outcomes from the perspective of
entrepreneurs and small business owners. The Southern African Journal of
Entrepreneurship and Small Business Management. 11(1). pp.1-11.
McGee, J.E. and Peterson, M., 2019. The long‐term impact of entrepreneurial self‐efficacy and
entrepreneurial orientation on venture performance. Journal of Small Business
Management. 57(3). pp.720-737.
Minto-Coy, I.D., 2019. From the periphery to the centre: start-up and growth strategies for
minority diaspora entrepreneurs. International Journal of Entrepreneurship and Small
Business, 36(1-2), pp.189-215.
Ndoro, T.T.R., Louw, L. and Kanyangale, M., 2019. Practices in operating a small business in a
host community: a social capital perspective of Chinese immigrant entrepreneurship
within the South African business context. International Journal of Entrepreneurship
and Small Business. 36(1-2). pp.148-163.
Nowiński, W. and et.al., 2019. The impact of entrepreneurship education, entrepreneurial self-
efficacy and gender on entrepreneurial intentions of university students in the Visegrad
countries. Studies in Higher Education. 44(2). pp.361-379.
Radović-Marković, M. and Tomas, R., 2019. Globalization and Entrepreneurship in Small
Countries. Routledge, New York, United States.
Ramadani, V. and et.al., 2019. Beekeeping as a family artisan entrepreneurship
business. International Journal of Entrepreneurial Behavior & Research.
Satar, M.S. and John, S., 2019. The critical success factors of social entrepreneurship in India: an
empirical study. International Journal of Entrepreneurship and Small Business. 37(3).
pp.309-341.
Sebikari, K.V., 2019. Entrepreneurial performance and small business enterprises in
Uganda. International Journal of Social Sciences Management and Entrepreneurship
(IJSSME). 3(1).
Online:
STATISTICAL RELEASE, 2019 [Online]. Avaialble through:
<https://assets.publishing.service.gov.uk/government/uploads/system/uploads/
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attachment_data/file/852919/
Business_Population_Estimates_for_the_UK_and_regions_-
_2019_Statistical_Release.pdf>
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