Entrepreneurship and Small Business Management

This report covers various topics like several entrepreneurial venture, its difference and similarities, interpretation of micro and small business data and statistics, importance of small business for social economic growth and characteristic traits and skills of successful entrepreneurs.

Entrepreneurship and
small business
management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 & M1: Examine different types of entrepreneurial ventures and typology of
entrepreneurship.....................................................................................................................1
P2 & D1: Explore the similarities and differences between entrepreneurial ventures...........3
D1 Scope, development and growth of venture.....................................................................4
TASK 2............................................................................................................................................4
P3 & M3: Interpret the data and statistics for micro as well as small business.....................4
P4 & D2: Importance of small businesses for the growth of social economy.......................6
D2 Small business impacts at different economic level.........................................................6
TASK 3............................................................................................................................................7
P5 & D3: Determine the characteristic traits and skills of successful entrepreneurs that
differentiate them from other business managers...................................................................7
P6: Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mindset...........................................................................................................................11
D3 Characteristics traits, skills and motivational drivers.....................................................12
TASK 4..........................................................................................................................................12
P7 & M4 & D4: Examine, using relevant examples, how background and experience can
hinder or foster entrepreneurship..........................................................................................12
D4 Impact of background and experience on entrepreneurs, both positively and negatively:13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Entrepreneurship is defined as the process to introduce, operate as well a design new
enterprises. Individuals who develop their own business is considered as an entrepreneurs.
Moreover, the willingness of person for creating its own business plan for gaining profitability as
well as fulfilling its aspiration are known as Entrepreneurship (Akehurst, Simarro and Mas‐Tur,
2012) . These procedures leads towards huge risk but an entrepreneur have to effectively utilise
inputs like capital, labour and others for exploiting the opportunity efficaciously in certain time
duration. This report covers various topics like several entrepreneurial venture, its difference and
similarities, interpretation of micro and small business data and statistics, importance of small
business for social economic growth and characteristic traits and skills of successful
entrepreneurs. Moreover, how aspects of entrepreneurial personality reflect entrepreneurial
motivation and mindset are also mentioned. Apart form this, various environmental factor which
can hinder the functioning of an entrepreneurship are also discussed in this report.
TASK 1
P1 & M1: Examine different types of entrepreneurial ventures and typology of entrepreneurship
Entrepreneurship is defined as the purpose of person for expanding the ability of human
as well as create efficacious usages of resources with the assistance of appropriate leadership
style to coordinate effectively for new idea execution. Entrepreneur is accountable for
performing organisational and managerial functions through seeking opportunities as well as
organise whole inputs for manufacturing new units (Berglund, Johannisson and Schwartz, 2012)
. Moreover, they has proactive vision which aids them to analysis future needs as well as perform
activities for longer business success.
Kinds of entrepreneurial ventures:
Entrepreneurial venture is defined as the business that is formed with the aim to gain
more profitability through effective business functions. As ventures are totally based upon
creative ideas because of which they substantially develop huge wealth that is more in compare
to traditional enterprises. Hence, there are several kinds of entrepreneurial venture which are
discussed below: Small entrepreneurial venture: Mostly, this includes those entrepreneur who are very
much concern to perform their enterprises for accomplishing their basic requirements.
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These are consultant, electrician and others. Herein, entrepreneurs are focused toward
earning appropriate amount of profitability and sustain into competitive market for long
term so that they can able to fulfil the requirements of their family members. Social entrepreneurial venture: These types of entrepreneurial venture perform for
societal welfare so they are not so much concern about the profitability. They perform
their enterprises for catering the societal requirements as well as accomplish the business
goal effectively and efficiently (Blackburn, Hart and Wainwright, 2013) . Large entrepreneurial venture: While performing this kinds of ventures, entrepreneurs
are focused towards the changing tastes and preferences, lifestyle of clients during
developing creative products. These ventures generally come up with innovation as well
as new technology for gaining more profitability and cope up with the challenges
effectively.
 Scalable start up entrepreneurial venture: Generally this is distinguish from the small
one as it grab the attention of external party such as venture capitalist for taking the
monetary help as well as explore whole business operations in appropriate and effectual
manner. They are concentrated upon rapid enterprises enhancement for which it performs
expected actions too produce enormous funds.
Entrepreneurship typology
The role of entrepreneur typology is to categorise business as per the its functions,
leadership style and structure (Bridge and O'Neill, 2012). Hence, few of the typologies are
discussed below: Survival firm: As typology is formed for various group like public, corporate and person
therefore survival firm is developed with the aim to accomplish the needs of whole
important group. It aids in accomplishing basic needs like monetary requirements of
business. Therefore, they are related with the small entrepreneurial venture as both are
focused to fulfil the basic requirements.
 Lifestyle firm: These are usually developed within single location a well as provide
comparatively stabilised revenue for entrepreneur. This based upon workable model of
enterprises and are able to maintain competitiveness within local market place. It is
related with the large entrepreneurial venture as both of them are focused to improve the
lifestyle as well as living standards of people.
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P2 & D1: Explore the similarities and differences between entrepreneurial ventures
There are several aspects which differentiate entrepreneurial venture with each others but
also there are few similarities between them. Entrepreneurial venture is defined as the enterprises
which is regulated by businessman and they are answerable for handling overall activities of the
business (Burns and Dewhurst, 2016). Several types of entrepreneurial ventures differences and
similarities are discussed below:
Basis Large
entrepreneurial
venture
Small
entrepreneurial
venture
Scalable
entrepreneurial
venture
Social
entrepreneurial
venture
Definition It is the venture
that run their
business at large
scale and more
concentrated
upon developing
goods along with
innovation which
assists them to
always stay
competitive into
market area.
This venture is
operated at small
scale through sole
traders. It is the
start- up
enterprises which
grow to make
profitability
through expanded
business
opportunities.
This venture
invest its fund in
start ups which is
scalable in nature
with enterprises
which possess
potentiality for
obtaining revenue
with less
increment cost.
This venture also
run at large scale
and perform with
the intent of
providing
effective quality
product for
gaining
profitability with
social welfare.
Purpose The purpose of
this venture is to
stay competitive
through
developing
creative goods or
providing
services.
Its purpose is to
be competitive
through creating
goods or services
for common
person.
Its purpose is to
reach at huge
number clients
through
approaching its
hidden
requirements
appropriately.
This venture are
developed with
the aim of public
welfare through
gaining
profitability.
Examples Microsoft, Dry cleaners, hair Facebook, Ma Wellcome trust
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Google and
others.
dressers and so
on.
baker and others. etc.
Similarities between whole entrepreneurial venture:
 All the venture such as small, large and others are concentrated to grab the attention of
various clients and many others.
 Whole entrepreneurial venture has to compete wit its rivals in their respective sectors and
build strategies to deal with several issues.
D1 Scope, development and growth of venture
Entrepreneurial venture is dynamic in nature through which new business ideas are
introduced. When new business ideas are introduced at small scale then no higher level of
technical changes are introduced and this serves as a huge scope to grow and develop. Scope an
business idea depends on the level of operation through which business organisation operates to
satisfy needs and wants of targeted number of consumers. Online media is supporting and
enhancing scope, development and growth of an business opportunity and must considered to
introduce towards entrepreneurial growth.
TASK 2
P3 & M3: Interpret the data and statistics for micro as well as small business
Small as well as micro business are known to the backbone of economy. Micro enterprise
are referred to be those business who performs at small scale. In this, there are around five or less
than this employees. Whee as small enterprise are usually main maintained and controlled by
few individuals. It has less market share within particular industry as well as should have about
50 staff. It includes computer science, event planning and others (Fatoki, 2014). The UK
government supports businessman as by this they can able to develop their economy
appropriately. This will grow person in such manner so that most of the people get employed.
There are few positive affects of micro and small ventures upon country's economy. Few of
them are discussed below: Increasing job opportunities: When an entrepreneur starts micro and small venture, they
need person who performs efficaciously within enterprises. Because of this opportunities
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of job increased at domestic, foreign and local level. Hence, due to this the government of
UK supports both micro and small enterprises.
 Increase per capita income: It is defined as the income that is gained through person
within the economy of UK. It will find the country's average income for evaluating the
growth rate and development effectually. In addition to this, in respective country there
are several micro and small venture because of which country's per capita maximises.
Moreover, it also develop the nation's living standards.
According to the above graph, this has been examine that both micro and small ventures
plays very significant role within the economy of UK. It is identified that there are around 5.7
million micro and small enterprises which involves private sector company about 99%. these
venture are answerable for various opportunities of job within UK. As this consists about 60% of
overall private sector employment. Both small and micro business are creating approx 2 million
jobs from the year 2010 as well as accountable for 73% of whole private sector employment.
 In respective country, there are around 5 million business such as both micro and small
which involves about 60% private sector jobs.
5
Illustration 1: Brexit’s impact on small businesses: the experts may be spot on after all
(Source: Brexit’s impact on small businesses: the experts may be spot on after all. 2018)

 Both micro and small business are answerable for the development of United Kingdom
by developing approx 2 million employment opportunity into country.
With the assistance of the graph, this has been analysed that SME's has impact upon
economy by the formation of employment opportunities. This is considered as the main reason
for the development of UK economy.
P4 & D2: Importance of small businesses for the growth of social economy
There are several micro or small business which perform according to its areas of interest
that at the end facilitate long term benefits into economic function. Social economy is usually
established through rich business diversity like cooperative, foundation and others which share
common value and features (Lucky and Olusegun, 2012) . It is also considered as economy as
well as social enterprises. The organisations which are performing within social economy are
providing benefits to society in order to increase profit. Moreover, start up enterprises are
defined as producing innovative goods to fulfil l the needs and wants of clients. So, importance
of both start up and small business on social economy growth are discussed below:
 Living standards of society: Both the business start up and small business have
facilitated the opportunities of employment at large scale to person within United
Kingdom. As an outcomes, this will enhanced the options related to monetary with the
assistance of this living standards get improved. Thus, by this spends more money to buy
luxurious and standard things that has maximised on through its living standards.
 Maximise in export: Both start ups and small business are vital to maximise the export
of products to many countries. They develop goods which can be exported to new
location and this is beneficial for country's economic development. This attracts the more
number of clients from different several countries in order to purchase their products.
Exporting of goods to other nation will leads in enhancing sales as well a profitability of
firm and economic development.
D2 Small business impacts at different economic level
Small business is largely operated at local and regional level and changes that takes place
in small business possess grate impact on growth and opportunities served at regional level.
When a small business is serving to a particular region then it helps in serving growth and
opportunities to enhance business operational at regional level. When business is operated at
national level then number of products needs to be served on the basis of taste and preference in
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different culture. For this small business take government permission and taxes are paid to
contribute towards economic development.
TASK 3
P5 & D3: Determine the characteristic traits and skills of successful entrepreneurs that
differentiate them from other business managers
Successful entrepreneurs are mainly focused on the role model regarding to rest of
business. The entrepreneurs take risk and effectively introduce new enterprises through scratch.
They had inbuilt traits and characteristics that help to make them different from others.
Characteristics, traits as well as skills are usually referred to the attitude of person which describe
their personality. It includes honesty, decision and many others. A successful entrepreneur
possess their skills which assists them to improve and develop their reputation (Nakara,
Benmoussa and Jaouen, 2012). An entrepreneurs James Dyson, which is a British inventor who
invented the dual cyclone bagless vacuum cleaner. Also, he established the Dyson Limited that is
a technology firm which produce as well as designs hand dryers, bladeless fans and many others
Another entrepreneur take Philip green who is a British billionaire businessman and the
chairman of Arcadia group. He is operating retail company where consist of Topman, Top shop,
Evans, miss Selfridge etc . His characteristics, traits and skills are discussed below:
Entrepreneurs Characteristics Traits Skills
James Dyson Risk taking: This is
considered to be the
vital traits for
entrepreneurs. Without
risk taking, they can
not able build any new
as well as creative
ideas for enterprises.
The effectual
entrepreneur have to
be ready to invest
capital as well as
Innovative: This
considered as the
developing something
new in their existence
products that
differentiate them
from others. It is the
trait that is possesses
through all
entrepreneur who want
to set up its
enterprises. James
Problem solving
skills- There are many
issues that can raise
within firm that have
to be resolved
effectually and
efficaciously so that
this can not harm
enterprises as well as
their issues and
functions. So,
entrepreneur have to
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spend time through
establishing back up
plans for the upcoming
risk (Ratten, 2014).
As James Dyson
compute whole
possible risk in
advance only in order
to get effectual results.
It assists them to
perform its task
appropriately. This
characteristics
differentiate them
from manager as they
do not have to bear
more risk because they
come or join the firm
that is already
established earlier so
they do not have to
bear more risk. Where
as entrepreneur are
establishing new
venture which is very
risky.
Dyson have innovative
style for considering
whole thing as well as
used within practical
life. This help them to
develop innovative
products such as blade
less fan, vacuum
cleaner and so on.
Entrepreneur initiate
business with
innovative ideas. This
differentiate them
form other business
manager as they
focused to motivate
their employees for
innovation where as
entrepreneur develop
by themselves.
very much capable to
resolve whole kinds of
issues that raise within
organisation. James
Dyson main focused
upon all the aspects as
well as resolve the
issues so that this can
not raise in future.
This makes them
distinguish from the
business managers as
they do not solve the
issues, they
communicate that to
senior authority where
as they resolve that by
itself.
Philip Green Stubborn resistance:
Mostly entrepreneur
are stub born to
execute their work
effectively and take
Passionate: The
successful
entrepreneur operate
their business
activities with full
Resiliency skill:
Resilience is told to
potentiality to handle
of the uncertain
circumstances in
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decision to introduce
new company or
product in the market.
Unlike other business
men Philip Green
characteristics of stub
born resistance
regarding to acquiring
activities as per the
changing mentality. It
is said that good talent
can not be concealed
behind the age.
passion and complete
with hard work. Philip
green have passion to
learn new things and
any time and take
interest to meet
businessman to lean
new terms of business
that helps to spread out
the business activities
effectively. He is
curious, courageous
and committed top
execute exemplary
work that different
from the other
businessmen. As well
as Philip green curious
for the learning
activities regarding to
business terms. They
always learn from kid
to old people.
effective manner.
Every business did not
blessed with this skill
but Philip green have
this skill. The
particular skill help
them bring out forward
work even in critical
situation.
Delegation Skill: An
entrepreneur should
have the skill of
delegation that helps to
businessmen to
recognise the strength
and weakness of co
workers of their team.
It is helping to know
who have sufficient
ability to done work
without entrepreneur
and easily delegate the
responsibility at the
absence of the
entrepreneur. To
delegate work of
another worker require
to have fully trust and
work according to
businessmen. Philip
green have skill of
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delegation. He is
providing roles and
responsibilities equally
that helps to conduct
the activities of the
business properly.
Differentiation of characteristics of successful entrepreneurs with business manager:
Characteristics/skills Entrepreneur Business managers
Strategic vision An entrepreneurs have the
good vision to see future
because they have guts
regarding to their business and
produced goods for people
which is different from the
competitors and help him to
gain advantages of competitive
environment. Philip green
have clear vision to execute
business functions properly
and spread out the business
activities in order to become
leading entrepreneur in UK.
A manager adopt the vision
that set for certain period of
time by the board of directors.
The manager responsible for
the plans as well as strategies
to arrange resources effectively
to acquire vision and mission
in set period of time.
Communication To explore the new business
ideas an entrepreneurs require
to have good communication
skills that assist them to reach
at the new and produced item
for the target customers. Philip
green is have good
It is essential skill that
manager have to communicate
with the team regarding to
provide task. Manager mainly
communicate about the
mission and vision to
encourage of people regarding
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communication skills ad attract
to customers to purchase their
products.
to roles of workers.
P6: Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mindset
There are exist opportunity into external environment for establishing the new venture an
entrepreneur required to show innovation as well as bring creative ideas for performing the
enterprises efficaciously (Sahut and Peris-Ortiz, 2014) . Few aspects that reflects the
entrepreneurial personality are mentioned below: Openness: This explains about person traits regarding its innovation as well as creativity
and how they are interest to gain new things. Moreover, this concentrate upon managing
several types of challenges which they face as well as path through which it can able to
solve that in effective manner. In respect of James Dyson, as it keen to gain innovative
things as well as attributes so in this personality traits is high on him. Conscientiousness: This reflects the tier of thoughtfulness which assist them to control
the person behaviours effectively. In this predetermined goals plays crucial role so on
continuous basis an entrepreneur have to be clear with the aim as well as adapt effectual
action for appropriate execution of plan. Hence, it can aids them to maximise profit as
well as obtain sustainable success. As James Dyson goals are clear so it has high on this
particular trait. Extraversion: As entrepreneur perform with various stakeholder that develop this vital
for them for discussing the business objectives (Shaw, 2014). It will aids them to explain
the situation of enterprises as well as efficaciously way of communication build fair and
long term relation with one another. So, this personality trait aids him to communicate
effectively with other person and create good relation from their staff. Agreeableness: Entrepreneur and its employees required to share longer relation with one
another. In addition to this, this is essential that workers depends upon their decisions so
that it staff can able to support as well as coordinate with one another for attaining the
shared goals. Therefore, agreeableness leads towards development of innovative ideas
for appropriate business functioning.
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 Emotional stability: Entrepreneur required to stabilise its emotion in such way which
may aids the overall firm to effectually face negative situation (Smallbone, Welter and
Ateljevic, 2014). This leads towards formation of strategic decision through knowing
situation as well as leads towards long term development of organisation.
D3 Characteristics traits, skills and motivational drivers
A successful entrepreneur has unequal traits, skills and motivational drivers that make
different from other and get work done from employees effectively. It helps to motivate
employees to face the changes and respond properly that helps to meet with organisational
objectives. For instance, Peter Jones having passionate and work delegation characteristics and
networking and Management skills that helps to build relationship with all people and create
business opportunities in order to attain business goals. Moreover, Larry page also have
communication and leadership skills that motivates employees to work properly and increased
profitability.
TASK 4
P7 & M4 & D4: Examine, using relevant examples, how background and experience can hinder
or foster entrepreneurship
There are various aspects that act as hindrance for entrepreneurship as well as restrain the
effort of people whole executing plans. This involves experiences, family background and many
others which act as hindrance as well as impact their performance (Solomon and Matthews,
2014). These elements which hinder successful entrepreneur performance are discussed below: Personal Background: James Dyson is known to be the most revolutionary
entrepreneurs. He is the innovative thinker as well as develop the technology for the
development of whole society. As he is passionate for the innovation so a innovat9ive
machine is developed through him named as vacuum cleaner. He was born in outskirts of
England and belongs from the middle class family as well as spend their life as any
ordinary children. But after the death of his father family become financially unstable
and thereafter James Dyson initiated performing several experiments for becoming
successful. Philip green was born on March 15, 1952 in the particular city of Surrey,
England,. He belonged from middle class family.
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 Education: As James Dyson Green are focused towards artistic things and innovative
technology because of which entrepreneur did some courses such as furniture as well as
interior designing. His family supports are with him for accomplishing their dreams as
well as provide society an innovative products. At starting its various innovative ideas
like dual cyclone get failed but that frustration of performing something innovative help
him to overcome from those failures as well as obtained sustainable position. Social environment: An entrepreneur required to perform innovation in such manner that
this do not restraint the external atmosphere. In context of James Dyson perform their
activities through doing efficacious usages of energy as well as secure surroundings by
making environment friendly techniques and tools. Philip Green always focus on new
things and become friendly with every one easily that helps in their business activities.
 Experiences: James Dyson have technical knowledge as well as completed its studies in
their interest areas that maximised the entrepreneur knowledge as well as aids them to
formulate effective decisions. In addition to this, the course he opted such as designing
etc. assists him to overcome from the failures and make innovative products as well as
utilise that knowledge through manufacturing appropriate design and products
(Vanevenhoven, 2013). Philip Green is famous business tycoon and philanthropist that
started the career from the shoe importer. In the starting he is importing jeans from
different types of nations to sell out in his nation. Green in his life become important part
of controversial problems such as tax avoidance, knight hood, sexual harassment and
many others.
Experience and background of both entrepreneurs to help to take effective decision and
become successful in the business. Both are learning different things from the background and
face different types of challenges that impact on the mentality and face risk effectively.
D4 Impact of background and experience on entrepreneurs, both positively and negatively:
Positive impact: Philip Green and Dyson have been faced critical situation and belong
from the middle family that encourage them to do different and think different from others
regarding to future activities. Both are trying to introduce new ideas that helps in innovative
ideas to become success in the business. They have learned different things on the basis of past
activities.
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Negative Impact: Both are coming middle family so they have problem of resources to
execute their business idea on time and it was influenced on the education life.
CONCLUSION
As per the above report it has been analysed that entrepreneurs is considered as the vital
part of an economy which leads business as well as produced large amount of profit through
accomplishing goals effectively. There are many kinds of entrepreneurial venture and all of them
have their own objectives like social venture performs for maximising the unprivileged part of
society. Moreover, small enterprises works for economic development through enhancing
employment rate. In addition to this, the role of entrepreneur is continuously developing its skills
as well as take all firm and staff towards the appropriate track by dealing with hindrances.
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REFERENCES
Books and Journals
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positioning, penetrating, promoting. Edward Elgar Publishing.
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strategy and owner-manager characteristics. Journal of small business and enterprise
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Bridge, S. and O'Neill, K., 2012. Understanding enterprise: Entrepreneurship and small
business. Macmillan International Higher Education.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Fatoki, O., 2014. The entrepreneurial intention of undergraduate students in South Africa: The
influences of entrepreneurship education and previous work experience. Mediterranean
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Nakara, W. A., Benmoussa, F. Z. and Jaouen, A., 2012. Entrepreneurship and social media
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Ratten, V., 2014. Future research directions for collective entrepreneurship in developing
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Sahut, J. M. and Peris-Ortiz, M., 2014. Small business, innovation, and entrepreneurship. Small
Business Economics. 42(4). pp.663-668.
Shaw, G., 2014. Entrepreneurial cultures and small business enterprises in tourism. The Wiley
Blackwell companion to tourism, pp.120-131.
Smallbone, D., Welter, F. and Ateljevic, J., 2014. Entrepreneurship in emerging market
economies: Contemporary issues and perspectives. International Small Business
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Solomon, G. and Matthews, C., 2014. The curricular confusion between entrepreneurship
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Vanevenhoven, J., 2013. Advances and challenges in entrepreneurship education. Journal of
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Online
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Brexit’s impact on small businesses: the experts may be spot on after all. 2018. [Online].
Available through: <https://theconversation.com/brexits-impact-on-small-businesses-
the-experts-may-be-spot-on-after-all-90561>
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