Entrepreneurship and Small Business Management

This report explores the impact of micro and small businesses on the economy, the importance of small business and start-ups in social economic growth, and the characteristics and skills of successful entrepreneurs. It includes data and statistics showing the growth of small and micro enterprises in the UK, as well as the contribution of small businesses to employment and turnover. The report also discusses the traits, characteristics, and skills of successful entrepreneurs, using examples of Chay Blyth and Guy Riese. Study material and solved assignments on Entrepreneurship and Small Business Management are available at Desklib.

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION ..........................................................................................................................2
LO 1.................................................................................................................................................3
LO 2.................................................................................................................................................3
Data and statistics showing impact of micro and small business on the economy.....................3
Importance of small business and start-ups in growth of social economy..................................6
LO 3.................................................................................................................................................7
Characteristics, traits and skills of successful entrepreneurs .....................................................7
Entrepreneurial motivation and mindset.....................................................................................9
LO 4...............................................................................................................................................10
Examining how background and experiences can hinder or foster entrepreneurship...............10
CONCLUSION .............................................................................................................................11
REFERENCES .............................................................................................................................12

INTRODUCTION
Entrepreneurship is basically associated with a process of thinking and developing some
new ideas in order to grab some foresighted opportunity in form a new business organisation
with main aim of earning profit and creating value for society. On the other hand, an
Entrepreneur is a person or individual who is responsible for developing some new ides and
plays crucial role in effective execution and implementation of that idea in a unique way through
bearing all the associated risk and enjoys the maximum share of earned profit (Brush and et. al.,
2019). This report basically based on the Entrepreneurship and Small Business Management and
includes interpretation of relevant statistical data to evaluate the impact of micro and small
business on economy and also includes importance of business start-ups in the growth of social
economy. Further, various traits, skills and characteristics of successful entrepreneurs is also
their together with influence lead by background and experience in hindering or fostering
entrepreneurship.
LO 1
This part has been presented in form of PPT

LO 2
Data and statistics showing impact of micro and small business on the economy
The micro and small business organisation are playing a relevant and important role in
growth and development of economy of UK through creating fair and better job opportunity
(Dana, 2018). Beside this, small and micro business also facilitates improvement in productivity
which lead to enhancement in GDP and economic growth rate of a nation. Following statistical
data and graphs are reflecting positive impact and growth of small and micro enterprises in UK.
Illustration 1: Non-employing and employing businesses in the UK private sector, 2000 and
2015to 2019.
(Source: Non-employing and employing businesses in the UK private sector, 2000 and 2015to
2019)
On the basis of above line graph it can be interpreted that the number of small and micro
enterprises are increased by around 2.4 million that is +69% from 2000. it has been also seen that
the number of small employing business has been grew up by 27% where as medium sized
employees have been grown by 33%. On contrary the large business organisation are increased
only by 7% since 2000 (Essential Facts You Should Know about SMEs in the UK, 2019). Thus, it

can be evaluated that small and micro enterprises are having a maximum contribution in growth
rate and development of economy of UK.
Illustration 2: Contribution of different sized businesses to total population, employment and
turnover at start of 2019
(Source: Contribution of different sized businesses to total population, employment and turnover
at start of 2019)
The above bar graph is reflecting that small and medium sized organisation accounts for
more than three fifth of employment and near by half of turnover of total private sector of UK. In
2019, total employment provided by small and medium enterprises is around 16.6 million i.e.
60% of total. Apart from this, 48% of employment, 33% of turnover together with 99.3%
business are hold by small businesses in UK. Beside this, 12% employment, 14% turnover and
0.6% business is hold by Medium enterprise (Business population estimates for the UK and the
regions, 2019). On contrary large business accounts only for 0.1% of business of private sector
of UK with 40% employment and 53% turnover. Further, report of office of National Statistics
has showed that 2.6 million organisation of private sector are registered for VAT or PAYE out of
which 13% are sole proprietorship and 51% are partnership. Therefore, it can be evaluated that
small and medium enterprises are providing a larger number of job opportunity and have
significant share in total turnover and GDP of UK (Bryson and Daniels, 2015).

Importance of small business and start-ups in growth of social economy
The important and crucial role played by business start-ups and small enterprises in
growth and development of social economy is explained below:
Better job opportunity- The biggest advantage lead by small business is providing better
job opportunity to financial weaker section of economy as a large amount of finance is not
needed for establishment of a small business (Dominik and Banerji, 2019). Thus, small business
brings equality and create better chances of job for local people of society therefore lead to social
economic growth.
Contribution in innovation- The small business and start-ups provides fair chances and
opportunity to weaker section of society to show their creativity and innovation with requirement
of small monetary funds. Thus, lead to better ways and enhancement in creativity that lead to
better social economic growth of a nation.
Enhanced productivity- Another benefit of small business and start-ups is that it lead to
enhancement in overall productivity and GDP of economy thorough offering more creativity and
larger number of business venture (Fayolle, Verzat and Wapshott, 2016). Small business and
start-up therefore lead to better standard of living through providing more products and services
to local people at an affordable price thus, contributes in social economic growth.
Beside this, small business also lead to various positive impacts at different level of
economy which is provided below:
Local level- At local level small business yield better job opportunity for localities and
solve the problem of unemployment for local people.
Regional level- Small business yield better standard of living through offering better
quality product at affordable price to domestic customers at regional level.
National level- At national level small business lead to enhancement in GDP and
economic growth through better ways of production and creativity level which lead to increase in
overall productivity (Ferreira, Fernandes and Kraus, 2019).
International level- As small business improve GDP and economic growth rate of a
nation therefore create better image of economy at international level which attract more foreign
direct investment and lead to better flow of money that facilitates better growth opportunity at
global level.

Thus, it can be evaluted that Small businesses are important in UK as they provide better
opportunities for entrepreneurs and also create an meaningful jobs that yield greater job
satisfaction as compared with larger, traditional companies. The various SMEs like ThirdWay
group, Brightstar Financial, Clarasys, etc. has foster local economies and keeping money in its
domestic country and also supporting better neighbourhoods and communities with internation
economies and nations for improvement in overall economy of UK.

LO 3
Characteristics, traits and skills of successful entrepreneurs
There are various traits, skills and characteristics of an successful entrepreneurs that
makes them superior and better than other individuals and mangers. A description of these traits,
skills and characteristics of successful entrepreneurs are provided below in context of two
inspiring entrepreneurs of UK.
CHAY BLYTH
He is a Scottish yachtsman and rower who founded the challenge business in order to
organise British steel challenge. The Chay Blyth is not a born entrepreneur and has joined British
Army Parachute Regiment at the age of 18 but his life experience and sailing experience
enhanced his creativity and lead to development of various skills and traits of a good
entrepreneur. The main traits, characteristic and skills of chay blyth are as follows:
Traits Innovation- It is one of the most important trait of an entrepreneur as it make them able
to come up with new and unique idea. Chay blyth is having this trait of innovation thus,
he always come up with some exclusive and interesting ides to attract lager number of
customers which makes him successful (Galloway, Kapasi and Sang, 2015). Managers
are not much innovative and just perform their duties with traditional approach.
 Feedback taking approach- Chay blyth is also having a trait of taking regular feedback
and views from its customers and employees that facilitates regular and continuous
improvement in its business operations. Mangers does not emphasis much on taking
feedback or reviews from its customers and employees.
Characteristics Leadership- Chay blyth is a having the characteristics of being a good leader which
makes him able to properly guide and motivate his employees for better performance
and also facilities better collaboration thus makes him a successful entrepreneur
(Gartner, 2019). On contrary mangers lack this features and believes in ordering his
employees instead of guiding them.
 Risk taking- Chay blyth believes in taking all possible risk in order to grab a
opportunity for better results which makes him better than mangers who are basically
conservative and likes to avoid risk.

Skills Communication- Chay blyth is having an effective communication skills which makes
his conversation more interesting and influencing thus, it become easy for him to attract
and influence investors, customers and employees for better results. Managers are not so
good communicator thus, face difficulty in motivating and influencing its employees
(Julien, 2018). Strong motivator- Chay blyth is a kind of person that likes to motivate and appreciate the
efforts made by his employees and fellow team members through various types of perks
and incentives which make them more loyal and committed thus, facilitates a successful
business venture. Mangers dose not believes in sharing credit and appreciating its
employees thus, their employees feel demotivated which hampers their performance.
Guy Riese
He is co founder and CEO at Up Learn and provides effective education and pushing the
frontiers for learning. Guy Riese is a born entrepreneur as from his childhood he posses many
skills and traits that make him a successful business man and different and superior than other
individuals. The main traits, skills and characteristic of Guy Riese are as follows:
Trait Decisiveness- This trait of Guy Riese makes him capable to properly evaluate and
understand the prevailing situation and issues to have a better decision making to resolve
that issues in more effective manner. Managers are not having this trait of Decisiveness
thus, their decisions are not so effective as compared to a successful entrepreneur
(Kuratko and Morris, 2018).
 Experimental- Guy Riese always emphasis on experimenting and creating and
developing new things that are beneficial and helpful for customers and create value for
society. Mangers are not much experimental and likes to follow traditional lines of work.
Characteristics Problem solving- Guy Riese is having a crucial characteristics of properly analysing the
reasons and main cause of each problem and makes appropriate efforts to resolve and
overcome these issues well on time which makes him successful (McMullen, 2019)
(Pages, 2019). Managers are not having much capacity to solve and overcome all issues
which lead to their failure.

 Confidence- Guy Riese is a self confident kind of personality which makes him able to
believe on himself and makes his decisions and actions more firm that facilitates success.
Mangers are not so confident for their work thus, their decisions and actions are not so
firm to achieve success.
Skills
 Focused- Guy Riese always remain focused toward achievement of his goal and objective
and not get diverted from his work which improve his efficiency and facilitats success for
him. Managers are not much focused and easily get distracted from their work thus, their
gaols are not achieved on time.
 Mindfulness- Guy Riese is a person with sharp mind and also have a bold nature which
makes him able to face and counter all problems and issues quit easily therefore,
facilitates success and growth for him (Pelz, 2019). Managers are not have much sharp
mind thus, feel exhausted and unable to counter a complex situation.
Entrepreneurial motivation and mindset
Personality of an individuals depends on its behaviour, psychology and attitude that
forms a base for their decision and mindset (Turner and Gianiodis, 2018). Use of OCEAN
personality models is made to determine the mind set and motivation level of Chay blyth and
Guy riese which is described as below:
Openness- The persons having this personality trait are more curious about learning new
things and have high creativity and innovation traits and characteristics. Chay blyth is having
high Openness trait as he is very creativity and innovative in its work. This personality trait is
also seen in Guy riese as he is quite experimental in his work.
Conscientiousness- An entrepreneur having this trait is more thoughtful and likely to be
goal oriented and well organised person (Sassmannshausen and Volkmann, 2018). Guy riese
shows high conscientious trait as he is more focused towards his goal and objective also
motivates his employees for the same.
Extraversion- The person with this personality trait are characterised as more talkative
and out spoken together with a social and interactive personality. Chay blyth is high on
Extraversion trait as he is a very effective communicator and have the skills of motivating and
influencing other with his social and intercalative personality.

Agreeableness- It is one of the best personality trait for an entrepreneur that makes them
more trustworthy, affectionate and kind which is necessary to motivate employees and lead to
creation of positive and healthy workplace. Both Chay blyth and Guy riese are having
personality trait of Agreeableness.
Neuroticism- This personality trait is quite negative and reflects a emotionally unstable
and depressed personality trait that is not suitable for any entrepreneur (Brush and et. al., 2019)
(Bryson and Daniels, 2015). Both Chay blyth and Guy riese show low level of Neuroticism trait
as they not depressed or emotionally unstable kind of person.
LO 4
Examining how background and experiences can hinder or foster entrepreneurship
Entrepreneurship is a sole and sometimes mix efforts of people who aims at developing
their own business and sustaining in marketplace. Individuals develops an ideas and work on it
for building and scaling a successful business. These ideas which they develop are mixture of
their backgrounds and past experiences they had in their professional and personal lives.
Therefore, it is seen that backgrounds and experiences of entrepreneurs can hinder or foster their
businesses.
CHAY BLYTH
Background- Chay Blyth was born in Hawick and youngest child for his parents out of
other six elder siblings. Chay Blyth belongs to a blue collar family and use to live in a council
house with his parents (Dana, 2018). He has good education as compared to other children's
around him as they end up in mills working and earning their livelihood.
Experience- Chay Blyth had a really good swimming skills and experience by the age of
12 years. He soon proved to be a strong competitor for others for which he has to go through
several trainings and hard work.
From the discussion above about Chay Blyth it is clear that he has experience of
swimming and very much comfortable with water which made him courageous enough and
motivated to sail in wrong direction over the world (Dominik and Banerji, 2019). This signifies
that experiences of Chay Blyth played a very important role in his success. His experiences and
string family background foster his ideas and helped him in developing business and moving
towards success and earning huge profits. The life experience of Chay Blyth and his working

with British Army Parachute Regiment at the age of 18 has yield effective sailing experience that
has enhanced his creativity and lead to development of various skills and traits that makes him a
good and successful entrepreneur.
GUY RIESE
Background- Guy Riese is a tech savvy, he was very keen to learn about new things and
development taking placed in science. Also, his life use to just revolve around technology and
entrepreneurship. Studying the marketplace and about the new developments taking place in
science.
Experience- Guy Riese was innovative and creative, also vary passionate about technical
world, which encouraged him to start his first business at the age of 13. He entered into business
world in early time of his teenage and gained a lot of experience and knowledge which made him
a successful entrepreneur just by the age of 25 and still moving towards more success (Fayolle,
Verzat and Wapshott, 2016).
The discussion above has clearly states that experience of Guy Riese and his love for
technology and business entrepreneurship made him and his start-up a success. His increasing
interest in technology and innovative skills assisted him in developing a new idea and made him
and his business a success. Thus, the childhood passion and high level of knowledge and
creativity has made Guy Riese a successful entrepreneur.
CONCLUSION
The above report concludes that entrepreneurship has huge impacts on the economy.
Different entrepreneurial ventures has huge impacts on the economy, contribute their part in
improving living standards of individuals and creates flow of money. Some of these factors
enhance the economy's position and gets higher position amongst the world. The mindset of
entrepreneurs, unique characteristics and traits also determines the success of businesses
irrespective of their size. Along with it, the backgrounds and experience of entrepreneurs also
hinder or foster their ideas and methods of conducting business activities, attaining success and
be more productive.

REFERENCES
Books and Journals
Brush, C. and et. al., 2019. A gendered look at entrepreneurship ecosystems. Small Business
Economics. 53(2). pp.393-408.
Bryson, J. R. and Daniels, P. W. Eds., 2015. Handbook of service business: Management,
marketing, innovation and internationalisation. Edward Elgar Publishing.
Dana, L. P., 2018. ENTREPRENEURSHIP & SMALL BUSINESS.
Dominik, M. T. and Banerji, D., 2019. US community college entrepreneurship educator
practices. Journal of Small Business and Enterprise Development. 26(2). pp.228-242.
Fayolle, A., Verzat, C. and Wapshott, R., 2016. In quest of legitimacy: The theoretical and
methodological foundations of entrepreneurship education research. International Small
Business Journal. 34(7). pp.895-904.
Ferreira, J. J., Fernandes, C. I. and Kraus, S., 2019. Entrepreneurship research: mapping
intellectual structures and research trends. Review of Managerial Science. 13(1).
pp.181-205.
Galloway, L., Kapasi, I. and Sang, K., 2015. Entrepreneurship, leadership, and the value of
feminist approaches to understanding them. Journal of Small Business Management.
53(3). pp.683-692.
Gartner, W. B., 2019. A good man is hard to find: project management, entrepreneurship and
serendipity. International Journal of Managing Projects in Business. 12(1). pp.114-119.
Julien, P. A., 2018. The state of the art in small business and entrepreneurship. Routledge.
Kuratko, D. F. and Morris, M. H., 2018. Examining the future trajectory of
entrepreneurship. Journal of Small Business Management. 56(1). pp.11-23.
McMullen, J. S., 2019. A wakeup call for the field of entrepreneurship and its
evaluators. Journal of Business Venturing. 34(3). pp.413-417.
Pages, P. W. P. E., 2019. Professor Dr. Rüdiger KabstHuman Resource Management, Small and
Medium-Sized Businesses and Entrepreneurship.
Pelz, M., 2019. Can Management Accounting Be Helpful for Young and Small Companies?
Systematic Review of a Paradox. International Journal of Management Reviews. 21(2).
pp.256-274.
Sassmannshausen, S. P. and Volkmann, C., 2018. The scientometrics of social entrepreneurship
and its establishment as an academic field. Journal of Small Business
Management. 56(2). pp.251-273.
Turner, T. and Gianiodis, P., 2018. Entrepreneurship unleashed: Understanding entrepreneurial
education outside of the business school. Journal of Small Business Management. 56(1).
pp.131-149.
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Business population estimates for the UK and the regions. 2019.[Online]. Available Through:
<https://assets.publishing.service.gov.uk/government/uploads/system/uploads/
attachment_data/file/852919/
Business_Population_Estimates_for_the_UK_and_regions_-
_2019_Statistical_Release.pdf>
Essential Facts You Should Know about SMEs in the UK. 2019. [Online]. Available Through:
<https://www.market-inspector.co.uk/blog/2017/05/facts-about-small-medium-
businesses-in-the-uk>