Entrepreneurship and Small Business Management

This document discusses the various aspects of entrepreneurship and small business management. It covers the impact of small and micro businesses on the economy, the importance of start-up businesses in the social economy, and the traits and characteristics of successful entrepreneurs. The document also explores how the entrepreneurial personality impacts mindset and motivation.

Entrepreneurship and
Small Business
Management
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO1 covered in ppt..........................................................................................................................3
LO2..................................................................................................................................................3
P3 Impact of small and micro business on economy...................................................................3
P4 Importance of start-up business in social economy................................................................4
M2................................................................................................................................................5
P5 Describe various traits and characteristic of successful Entrepreneurship.........................5
P6 Discuss how various aspect of the entrepreneurial personality impact on the mindset and
motivation of entrepreneur...........................................................................................................7
M3 Describe various line of arguments that are related to the characteristic of entrepreneurial 8
P7 Explore through examples about various ways personal backgrounds as well as experiences
that may foster or hinder entrepreneurship.................................................................................8
M4 Evaluating the link between impact of the personal background and entrepreneurial
characteristic and experience to appropriate successful entrepreneurs........................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Entrepreneurship is considered as an act of creating a business while scaling and building
it to make a profit (Hopp. and Sonderegger, 2015). There are various kinds of ventures that have
various entrepreneur requirement ans ownership structures hat have specified characteristic and
skills regarding the development as well as management of a business. Present report lay
emphasis on the Various types of the Entrepreneurial ventures and describes that how they are
connected to the typology regarding entrepreneurship. Describe the difference and similarities
among the entrepreneurial ventures. It also focuses on the influence of the economy within small
businesses. Furthermore, explore and analysis key aspects of the entrepreneurial mindsets.
Describe various environment that hinder or foster entrepreneurship.
MAIN BODY
LO1 covered in ppt
LO2
P3 Impact of small and micro business on economy
Micro-enterprises
Micro enterprises have a great impact on the overall growth of the economy of United
Kingdom. Micro enterprises forms the major part of the country and hence contributes to the
great extent by managing their entire profit and loss. Micro enterprise are generally increasing
over time in UK and thus due to their increasing number, the amount of revenue which is being
generated by them is also raising. According to the report of 2018, the number of micro
enterprise that prevails in the market of UK as increased from around 3.2 million to more than
4.5 million (Osunde, 2017). This means that these enterprises contributes to more than 84.3% of
the total economy of UK. Hence the revenue which is being generated by thee micro enterprises
become one of the major contributor towards GDP of UK. Among all businesses, around 96%
are micro business which mainly employees around 0 to 9 people. These business not only helps
to increase the GDP of UK but contribute to around 33% towards employment. As per the report
of 2019, it has been seen that the number of micro enterprise are much high in comparison to the
medium and large enterprise and thus has now become an important of overall economy of UK.
In United Kingdom, the micro enterprises earns around 23% of the turnover and in collaboration
with the small enterprises earns up to 37% of the turnover.
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Small businesses
Not only does the micro enterprise provides their support in boosting the economy of UK
but various small enterprises also extend their hand towards promoting the GDP and economic
position of UK. According to the national report of 2017, it is estimated that around 5.2 million
of the businesses which operates in UK are the small business. However, majority of the small
business are not the employers but are the sole traders which work independently. These small
business make up the 59% of the private sector in UK. Thus, small business are mainly
considered as backbone of economy in UK. Talking of the employment number, small business
contributes to more than 48% towards increasing the employment in U&K and thus the profit
which is being generated b them is more than half of the profit of micro businesses (Haider and
et.al.,2017). The small business in UK majorly earns up to 14% and hence forms a major link
between improved economic conditions and high employment rate. Since the emergence of
Brexit in UK, the number of small firms in UK has increased from 4.5 million to more than 5
million and thus this has eventually increased the amount of revenue. These small enterprises are
constantly striving towards providing innovative products to the customers and hence becoming
innovation-oriented. This commitment of the small firms towards innovation has eventually
raises their profit ratio as well as the living standard of people in UK. The high living standard is
one of the major determining factor in the improved economic growth.
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P4 Importance of start-up business in social economy
For maintaining the growth of the social economy, start-up businesses poses a great and
immense influence within different countries. The most important role which the small
businesses as well as start-ups play is bringing innovation in each and every aspect. The major
exciting feature of startup businesses is that they often comes with various innovative ideas for
products which have the power to meet the certain requirements of people. Thus, when these
businesses present innovative ideas in market then it eventually leads to the growth of the social
economy as the needs of society are fulfilled (Peric and Vitezic, 2016). Besides this, the various
innovative products helps the people tom solve their problems and thus become the effective
problem solver.
Startup businesses and small business are not only known for their innovative ideas but
they contribute their significant fraction towards meeting the social purpose of the country. Most
of the startup as well as small business are often related to to wide variety of the CSR activities
that are associated with social, economic as well as environmental problems for enhancing their
brand value. Within this process, these startups provide education as well as commit to educate
people in the rural areas and those belonging to underprivileged area having poor financial
condition. These people later on can use this education for getting work that eventually become a
part of growing economic growth. Thus, by providing the education startup meets the most
important purpose which is social purpose (Marshall and Williams, 2019).
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Besides this, the small businesses as well as startup businesses often contribute towards
the great employment rate of country and hence helps to provide job to large number of people.
When these first initiate their business then in order to stimulate the innovative ideas, these
organizations looks for people who are highly skilled and have the ability to generate innovative
solution to problem. Thus, by providing jobs to these people, small business often create the
employment opportunities for them. In this manner, startup businesses helps to provide jobs and
employment to people even living in the rural areas.
M2
The small, medium as well as large business often contributes to the great extent towards
the economy of the country. Where on one hand, small organizations brings innovative ideas for
the society and increases employment opportunities on the other hand, medium and large
organizations depend on these small organizations for their work. The number of small
organizations have now a days raised to high level and this has given a kick to the overall
economic development of country. Besides this, these all organizations helps to improve living
standard of people (Hillary, 2017).
P5 Describe various traits and characteristic of successful Entrepreneurship.
Difference between manager and entrepreneur as a manager is considered as a leader in a
well-established firm who can lookout the work of the staff members in a specified department.
They delegate tasks ,trouble shoot problems as well s provide guidance and assure the deadlines
are also met. While entrepreneur are some who identifies the problem of the consumer, provide a
solution as well as build a business around solution available to the persons. They have idea
regarding product or services and many more(Allen. and Truman, 2016) .
Entrepreneurs are the persons who are highly motivated to bring their ideas to the execution
as well as exude a great deal regarding result. Good managers are all excited about the firm
where they work as well as interact positively to the staff members. They are the personality who
are not afraid of taking risks but at the same time have the ability to face the failures when it
comes. They often see challenges as a part of their leaning experience as well as takes it as an
opportunity so that they can discover better answer. Entrepreneurs are also considered to be
passionate about their firms as well as willing to be work hard as they excel at the networking as
well as becomes skilled to the product of the firm and their services.
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Mention below are some traits of the Entrepreneurs.
For example- Mark Zuckerberg is known as for his innovative work that he was done through the
platform of the social media platform as he is the founder of the Facebook. He is known as a
cultural icon due to his entirely new way to communicate with the help of the internet
(Fayolle, Verzat. and Wapshott, 2016).
Vision oriented- Through the medium of the Facebook he offers a product that gives a more
connected and open world. He has a mission of offering a product that provides values to the
people and also building a build that is more empathetic.
Critical thinking skills - He is a kind of the personality who adapts the situations quickly. When
Facebook is facing the security issues as so many people are criticized Mark's about the privacy,
after this incidence Zuckerberg provides users to more control over the security and privacy.
2. Steve jobs- When it comes to the passionate man Steve job is the man which listed
within this list as per his saying passion is the key that can fuelling the Journey of a
person. He was truly the passionate about his work as he was self-confident man and self-
centred man.
Ambitious personality- True ambitions is claimed by some many people but it can achieved by
only few, Steve jobs is not a person who can find successful regarding himself but his ambitions
can change all over the world with his work ( Morris, Neumeyer. and Kuratko., 2015).
Rebellious – He was kind of the personality who was rebellious within his nature. Job was
knowing to do things a per his own way, no matter how much difficulties after that but at the
same time it was considered as the key regarding his innovations, he was knowing for the
things that are different and not afraid to thinking out of the box.
Far sighted- He is a kind of man who wasn't talk about the imaginary products but discuss he
projects that are already existed within his mind. According to him his products changing the
world inside his mind first and then the outer world.
Characteristics
Risk takers- There are various types of the risk takers as risk takers are considered as someone
who are able to takes the risk within the hope regarding achievement and have the great potential
regarding loss within decisions able to tolerate such kind of loss. Mark Zuckerberg is a risk taker.
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Passionate and dedicators- Entrepreneurs are the motivating personality as they are emotionally
positive ad have internal drive also they are dedicated towards their world and motivates others
also.
Skills
Time management- Entrepreneurs are the good time mangers as they are able to do things
according to their schedule. Steve Jobs did all his work in proper time.
P6 Discuss how various aspect of the entrepreneurial personality impact on the mindset and
motivation of entrepreneur
Entrepreneurship is considered as a rewarding and challenging path. There are Different
characteristics that is shared by the various successful Entrepreneurs. Such as
Curiosity- Inquisitiveness is a key element of the various successful people as are the person
who scrutinized about how the world works as well as where the things tie together. It will
strengthen the capacity of a person in a fresh context. Such as learners and examine the lives of
the achievers ,achievements and many more. Also, highly scrutinized their work and analyses
that what made them great. Ask as many questions ,look the things to do in more innovative way
and more (Yadav. and Unni, 2016).
Optimism- Various successful entrepreneurs see the challenges as a learning opportunity as
they also maintain the buoyant kind of attitude. Optimistic made them realize about the
possibility of a situation that can be explored, they tries to build their confidence as well as
utilizes the lesson from each and every situation so that they can refine and develop their ideas
and develops a mentality how to be optimistic in each and every situation.
Flexibility- Despite being entrepreneurship is considered as a challenging arena. Unexpected
problems and demands appear continuant. To battle on it, it assists to be more flexible within
their thinking so that they able to roll in punches ,recover the declensions more quickly.
Building more critical structured approach regarding the problem solving , keep their journal as
well as records their thoughts. For that there is list to face challenges as well as limitations to
prevent them within advancing (Allen. and Truman, 2016) .
Ownership- Entrepreneur who are successful within their career have a high internal locus
regarding control. They able to trust within their ability that determines their success. They have
almost pathological needs and also they see their own decisions, actions as well as responses
apart from what life's throws at them will able to make them or break them. That focuses on that
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by taking the responsibility for doings the things that must be done. By building the confidence
that able to conquer .
Leadership-To become an effective entrepreneur , there must be a need of the guidance as well
as motivation required for the team and also empower them. It is also equally important to share
their vision within a way that it can inspire. Here clear interaction is a crucial key. Through the
evolvement of the team and developing focuses ,entrepreneurs have a great chance regarding
realizing that their greatness regarding vision. Here the main aim is to create vision,frame it
correctly as well as model it regularly ( Morris,, Neumeyer. and Kuratko., 2015)..
Connection- Entrepreneur must have to create a network such as tribe to pick out persons that
will assist from the collaborative bonds that required to grow the idea. By making the
connection that can do as an effort rather than any official reward can create. Also, build the
strong relationship with family, colleagues and friends. They must take time to invest the
relationship that matters for them.
Self respect- They have to take care of their mind and body as same as their business. They have
to take care of their own as there are the crucial steps for the sleep ,time to regain their energy.
Such as walk and exercise and gym whatever they can enjoy, Also diet such as nourish the
body accompanied by health choices as well as few treats. Pleasure is also kind of body as well
as spirit to be successful within their life.
M3 Describe various line of arguments that are related to the characteristic of entrepreneurial
The entrepreneur's characteristic have a kind of the similarities as compare to the leader's
characteristic. Within this procedure, they require to set goals regarding their business , tries to
deal with the risk as well as make suitable plans to accomplish goals. They require dealing with
various types of people for example investors, employees suppliers, employees, distributors For
example- Mark Zuckerberg possess critical thinking skills. Besides that they require planning as
well as allocating resources as well as shows path to the staff members and at the same time
show path to the staff members to achieving the needs of the organizational objectives. They also
have to deal with the conflicts within an organization, for that they posses good management
skills so that they can easily manage the firm ( Morris,, Neumeyer. and Kuratko., 2015).
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P7 Explore through examples about various ways personal backgrounds as well as experiences
that may foster or hinder entrepreneurship.
Personal experiences and background can have high impact on a business as it able to hinder or
foster the entrepreneurship. Support from friends as well as family, motivation and financial
background falls under the personal background. Within this process if someone get the proper
support from their friends as well as family as they can motivate to set up their business. The
support can increases the risk taking ability and motivation that able to adoptive the
entrepreneurship. The personal experience also impact within entrepreneurship. Here by using
relevant examples, how background and experience can hinder or foster entrepreneurship. Here
if the experience was good that an individual will continue their business for longer period and a
the same time motivated to set up such kind of business. Also, of the experience was not good at
all then the entrepreneurs might be afraid to set up business (Hoang. and Yi, 2015).
National culture- It is considered as a set of behaviors, norms, beliefs and customs as well as
shared through population of a nation(sovereign).It also known as particular characteristics such
as religion, language, cultural traditions' ad history.
Economic circumstances- These are the factors that plays all the crucial trends within the
economy that assists the firm to achieve its aims as well as objectives.
M4 Evaluating the link between impact of the personal background and entrepreneurial
characteristic and experience to appropriate successful entrepreneurs.
The personal experience and background can enable an individual to set up a business which is
successful. Mr Steve Jobs was a businessman who is a setup business named Apple group.
Within this procedures, he and his team members recruit new staff members as well as make
strategies regarding marketing as well as dealing with the risks. He is self-motivated person as
well as uses his office to work for so that he was not getting bored and also work effectively. He
is a self-motivated and ambitious person and also took participation within business programs.
He was also conducted future planning within as well as the focuses on the financial
management, he also works hard to run their operations. Mark Zuckerberg is owner of the online
website called Facebook that provides the social media facilities services as well as provide
support to the people by connecting them from their friends and family. He is also self-
motivated as well as set up a business. He takes the risks ,interact with people that can be crucial
part of the business ( Morris,, Neumeyer. and Kuratko., 2015).
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CONCLUSION
From the above report it had been concluded that Micro enterprises increasing over time
in UK more than 4.5 million micro enterprise provides 59% of the private sector in UK. Micro
enterprises increasing over time in UK more than 4.5 million micro enterprise provides 59% of
the private sector in UK. For maintaining the growth small businesses innovative ideas to meet
the certain requirements of people. Various innovative products associated with social,
economic enhancing their brand value. It also focuses on the Mark Zuckerberg founder of the
Facebook is Vision oriented person Through the medium of the Facebook offers a product that
gives a more connected and open world as well as Critical thinking skills While Steve job was
self-confident man and self-centred man. It also focuses on the Personal experiences that have
high impact on a business and get the proper support from their friends family increases the risk
taking ability.
REFERENCES
Books and journals
Allen, S. and Truman, C., 2016. Women in business: Perspectives on women entrepreneurs.
Routledge.
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.
Haider, S.H and et.al.,2017. Microfinance and Performance of Micro and Small Enterprises;
Does Training have an Impact. Indicators.4(1).
Hillary, R., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Hoang, H. and Yi, A., 2015. Network-based research in entrepreneurship: A decade in
review. Foundations and Trends® in Entrepreneurship, 11(1), pp.1-54.
Hopp, C. and Sonderegger, R., 2015. Understanding the dynamics of nascent entrepreneurship—
prestart‐up experience, intentions, and entrepreneurial success. Journal of Small Business
Management, 53(4), pp.1076-1096.
Marshall, S. and Williams, S., 2019. An Investigation into the Sustainable Actions of Micro-and
Small Businesses. In Responsibility and Governance (pp. 237-255). Springer, Singapore.
Morris, M.H., Neumeyer, X. and Kuratko, D.F., 2015. A portfolio perspective on
entrepreneurship and economic development. Small Business Economics, 45(4), pp.713-
728.
Osunde, C., 2017. Family businesses and its impact on the economy. Journal of Business &
Financial Affairs.6(1). pp.1-3.
Peric, M. and Vitezic, V., 2016. Impact of global economic crisis on firm growth. Small business
economics.46(1).pp.1-12.
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Yadav, V. and Unni, J., 2016. Women entrepreneurship: research review and future
directions. Journal of Global Entrepreneurship Research, 6(1), p.12.
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