Entrepreneurship and Small Business Management

This report explores the concept of entrepreneurship and small business management, discussing their impact on the economy, the skills and traits of successful entrepreneurs, and the difference between entrepreneurs and business managers. It also highlights the importance of small businesses in the growth of the social economy. The report includes relevant data and statistics to demonstrate the impact of micro and small businesses on the economy. It also discusses the skills, traits, and characteristics that differentiate entrepreneurs from other managers. The report concludes with an analysis of the entrepreneurial personality and its reflection on entrepreneurial motivation and mindset.

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Covered in PPT...........................................................................................................................3
TASK 2............................................................................................................................................3
P3 & M2: Relevant data and statistics along with their interpretation that demonstrate impact
of micro and small business in economy\...................................................................................3
P4 & D2: Importance of small businesses towards the growth of social economy....................5
TASK 3............................................................................................................................................6
P5 & D3 Skills, traits and characteristic of an entrepreneur that differentiate from another
managers.....................................................................................................................................1
P6 & M3: Entrepreneurial personality reflect entrepreneurial motivation and mindset.............2
TASK 4............................................................................................................................................4
P7 & M4 & D4: The way in which background and experience can foster entrepreneurship....4
CONCLUSION................................................................................................................................5
REFERENCES ...............................................................................................................................6

INTRODUCTION
Entrepreneurship can be defined as the activity for starting new a businesses through
considering essential aspects which assist management to implement new, creative and unique
ideas in its operations. In simple terms Entrepreneur refers to those individual who learn and
adopts new techniques by utilising their skill, knowledge and capabilities for designing and
launching fresh and brand new products in market. This also depends on individual and market
needs or opportunity which motivate an individual to enter into market with appropriate plans
and strategies (Yan and Yan, 2016). Moreover, an entrepreneur and its business activities
contributes maximum support in the economy of country by generating employment opportunity
and also paying tax to government. This report is composed from point view of different
entrepreneurs and their ventures. Along with this it also highlights on similarities and differences
that demonstrate different kind of entrepreneurial venture. This project also demonstrate towards
contribution and impact small business that leads management towards contributing different
characteristic, traits, skills etc. that are attain by customers to become a successful entrepreneur.
In the last, background of two successful entrepreneurs will also be consider in this report.
TASK 1
Covered in PPT
TASK 2
P3 & M2: Relevant data and statistics along with their interpretation that demonstrate impact of
micro and small business in economy\
SMEs work with motive of developing economy for enhancing the national income of
country such as by increasing the local production in country. This results GDP of a country will
be increased which also helps to overcome from several issue that is impacting on business
operations. Decrease in national income, human outsourcing, fluctuation in finance market are
some of the issue which are improved by providing opportunity and flexible policy to Small and
micro business (Sarasvathy and Venkataraman, 2011). Moreover, there are various task are
performed by management of SME it includes to perform business with import and export
activities due to which foreign exchange is also involved in business. Economic changes impacts
on business organisation such as small and micro organisation to perform their work with new

and unique ideas that leads to enhance economy of country. With the provide of employment
opportunity to local residents SME also increasing income of country and its individuals.
On the other side, there are various challenges also impacts on micro and small business
such as lack of financial resources, lack of profits, ineffective management between fixed and
variable expenses etc. due to which instability is monitored between different HR division. There
are various limited resources are present in market due to which its impacts on profitability as it
works to earn high profits (Martin, McNally and Kay, 2013). Currently large organisation are
focused towards purchasing of small and micro business as it work with motive of expanding
their business that also helps management to earn more revenue as well as sustainability in
market. Some major impact which are monitored due to changes in small and micro business are
mention as follow:
Employment generation-Small business leads an organisation to create more
employment opportunity due to which earning and expenses of individuals is increased. It also
refers that if large of workforce is employed than small and micro business also able to perform
their work within effective manner by recruiting right employees for right role. In the last, high
employment also leads individuals to earn good amount of income.
Cash flow- Small and micro business enhances the flow of cash by generating more
employment opportunity due to which monetary resources are invested with in proper manner. It
also acquired to earn more cash which enhances economic strength of company.
Infrastructure development- Small as well as micro business leads the country for
developing economic perspective of organisation (Mamabolo, Kerrin and Kele, 2017). It also
leads government and authorities of UK to increase their national income. It also refers with tax
it is easy for management to build better roads, schools and bridge for a country.

Illustration 1: Source(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)
§
Their are various organisation to perform their work which leads to generate more employment
opportunity that enhances more employment opportunity to increase income of country. With the
use of relevant data and information it is also identified that organisation is performing various
task and this all are used to improve top position in market. SME provides support to UK
economy with 1,00,000 pound for each week. (www.ukstasticsme.com) On the other side, total
employment generated by SME is about 16.6 million. It also leads to manage work with a
turnover of £1.5 trillion that also work as positive aspects for increasing income of individuals
and organisation (Lechat and Torrès, 2017). Similarly different trend such as increase in
population for business also increases annual growth of business. From the past five years SME
are enhancing income of country and its residents.
P4 & D2: Importance of small businesses towards the growth of social economy
Social economy is developed or formed with the variety of companies, ventures, firms,
association and many more. Start-up business is also beneficial towards growth and contribution
in social economy. This is also important for government for supporting to manage small

business for dealing with economic challenges. In the context of UK economy it is well
developed as there are several issue are faced by country due to Brexit and its policy. This results
British left and remove them from European union. It also results large organisation faced
objections as revenue and profits of firm is decreased with rapid speed. Similarly small as well as
start-up businesses are able to deal with problems that impacts on efficiency of business such as
to deal with social problems which helps in increasing its business size and provides various
benefits to social economy, some of them are as follow: To provide various job opportunities- SMEs are providing large number of job
opportunity there were 21,000 more (+1%) employing businesses and 180,000 more
(+4%) non employing individuals but most of them are earning good amount of revenues
through engaging and utilising their skills in SME that helps to earn more amount of
income. This also refers that business is able to earn good amount of income by
performing all operations within effective manner (Klapper, Biga-Diambeidou and Lahti,
2016)).
 By increasing economic awareness- Their are several issue are faced by management
due to which its economic is impacted such as to increase awareness within public to
survive in market for longer period. Along with this it also helps to attract more
businessman for increasing profits for organisation.
 Innovative products and services- New ideas and innovation is one of the most crucial
aspect for a start-up. Government as well as UK residents are open to adopt new products
and services due to which social economy of organisation is increased that also increases
revenue for business.
 Enhancement of domestic business culture- The existing economy of UK faced several
challenges Brexit is one of the major problem that decreases profitability and productivity
of small and micro business. At this situation also impact on domestic level of
companies. Along with this by offering essential and new products it is also easy for
management to generate positive results for business that enhances profitability of small
business.
With the above mention points it is identified all challenges will reduces profitability of business
and helps to boost social economy of country in an effective manner. So to deal with this it is
analysed that management adopts new methods and techniques for performing their business in

effective manner (Hoogendoorn, 2016). This also refers that all of the new products and services
are developed with motive of overcoming from economical challenges of country.
TASK 3

P5 & D3 Skills, traits and characteristic of an entrepreneur that differentiate from another
managers
Characteristics of successful entrepreneurs:
Self motivated- Self motivation is one of the most essential characteristic of an
entrepreneur. A person is required to force themselves to get succeeded, they need to be fully
devoted to their plan and continue to move ahead. For example Ben Jeffries is self-motivated as
he executed several research activities about behaviour of online consumers to launch the
business in an effective manner. Similarly Guy Riese is self-motivated since he developed new
methods of teaching and excluded AI in learning for students which enter in business through
adopting idea of entrepreneurship.
Ready to take risks- A succeeded entrepreneur is always ready to undertake new
challenges and risks they are not timid to new challenges and any likelihood or risks in the
process to business. For example Ben Jeffries became a successful entrepreneur since he took
advancement of consumer behaviour as challenge and predicted that social media impacts a
customer in better way as compared to ads (George and Bock, 2011).
Similarly Guy Riese took challenge to reform new methods of learning for students who are
facing sickness through AI.
Traits of successful entrepreneur:
Strong communication skills- A successful entrepreneur is a person who is having
extraordinary communication skills to persuade people in order to buy their product or service
and to encourage employees working with them. For example Ben Jeffries communicated with
large number of audience to get to know about loop holes in dis satisfactory behaviour of
consumer and resultant launched his venture. Likewise Guy Riese established strong and
effective communication with students to get his idea of business.
Passion- A successful entrepreneur is dedicated for the products they manufacture and
services they cater. They are always passionate to make their venture successful and they always
cherish their deeds. For example Ben Jeffries was passionate about his venture so he successfully
established his business (Dunne and et. al., 2016). Similarly Guy Riese was passionate about his
idea of "Up learn" and that made him a successful entrepreneur.
Skills of successful entrepreneur:

Leadership- A successful entrepreneur is a person who takes all his subordinates together
and lead them, they lead whole entity and achieve common organisational goals and objectives.
For example Ben Jeffries adopted democratic style of leadership in his organisation and gave
identity to it worldwide on the other hand Guy Riese opted for Laissez-Faire Leadership style
and gave liberty on working to employees for making effective decisions at their own.
Problem solving- A successful entrepreneur is able to identify problem and solve them with
critical thinking and they convert problem into future opportunities. Like Ben Jeffries
identified problem of consumers and saw opportunity of doing business by understanding
consumer behaviour (Donckels and Miettinen, 2019). Guy Riese is one of the successful
entrepreneur who recognised problem arising for students by using AI and solved it with his
idea of business of new methods of tutoring.
Difference between Entrepreneur and Business manager:
Basis Entrepreneur Business manager
Characteristic They posses characteristic of
self motivation and risk taking.
They own characteristic of
time management and
reliability.
Traits They are passionate for their
work and a good
communicator.
They are creative and keep a
positive attitude.
Skills Leadership and problem
solving skills are adopted by
Entrepreneurs.
Multi tasking and decision
making are are skills acquired
by Business managers.
Example Guy Riese and Ben Jeffries
are examples of successful
entrepreneurs.
Adam Gallucci, Sagittarius
and Amad Tababa, Champions
are examples of business
managers.
P6 & M3: Entrepreneurial personality reflect entrepreneurial motivation and mindset
Entrepreneur owns, develops and adopts their own personality with the motive of
generating healthy relations with interested people. This also helps to generate more value in
products due to which customers loyalty is also increased (Djankov and et. al., 2010). It results

company is able to earn more amount of income due to which sustainability in industry and
market is also increased. For this company also invest huge amount to implement appropriate
characteristic and qualities for making business more successful. For supporting skills and traits
big five model of personality is also included in this report that support specific skill and trait of
entrepreneur. Openness to experience- This tactics is considered with six different facts that consider
variety, sensitivity, creativeness, imagination, sensitivity and curiosity to generate better
and positive feeling for an individual. An entrepreneur must adopt essential passionate
trait to make a business more successful. Along with this entrepreneur also adopts to
perform all work with an open mind as it allows individuals to learn new things for
achieving competitive edge in market that helps to increase market area as compare to
other organisation (Dana, 2018). Conscientiousness- Entrepreneur are more focused towards goals, vision and mission of
organisation that resist persons to perform their operations in effective manner. The main
motive is to complete work with motive of performing and managing activities as per
desired goals to accomplish them within specified time period. Therefore, with constant
efforts it is easy for individual and a entrepreneur to launch their business effectively. Extraversion- Individuals who adopt and aware about extraversion aspects perform all
their operations with energetic, talkative and positive approach. Due to which it is easy
for leaders and entrepreneurs to convey employees towards performing efforts for
accomplishment of organisational goals. This results goodwill of organisation is
increased because extrovert leaders motivate employees effectively. Agreeableness- Most of the functions and operations are performed by lower staff so
they are able to understand market with more effective manner. This refers if small
business wants to enhance their work performance that they must adopt new techniques
and methods which are suggested by lower level employees. Due to which business and
entrepreneur is able to overcome from challenges that resist them to achieve expected
outcomes (Carsrud and Brännback, 2011).
 Neuroticism- This is important for an individual to treat there staff with in proper
manner. It determines to control emotions such as anxiety, happinesses, anger etc. as it

generates barrier for organisation by affecting on their working behaviour. Like,
depressed entrepreneur dissatisfies staff by arguing and showing anger towards them.
TASK 4
P7 & M4 & D4: The way in which background and experience can foster entrepreneurship
Background of both entrepreneurs:
Ben Jeffries:
At the age of 15, Ben Jeffries started his first venture called Breeze, basically it was a
clothing company and at the age of 16 he analysed that he can make innovative solution to
advertise his product online with the use of ad blockers on internet browsing. He approached
influencer who are known as micro celebrities since he was unable to afford big celebrities for
advertisements. He made his successful collaboration with Jamal Blackman a reserve football
player of Chelsea FC and made motive of social media influencer very clear. In may 2015 he left
Breeze and decided to start influencer in the pioneer of influencer marketing organisation of
UK. Ben as an influencer upraise his first investment round just under 24 hours on Crowdcube.
In 2017 he won award for best entrepreneur by Alphr, The drum social buzz rising star in 2019,
BMW i UK tech founder of the year in 2018 and Mediaweek rising star in 2019 (Burns, 2016).
Currently he is CEO & Co-Founder of a influencing marketing company "Influencer".
Ben analysed that simple marketing techniques are not enough to promote your service or
product and then he promoted Influencer marketing of online marketing which is less costly than
a celebrity endorsement and highly effective. When he realised that simple marketing techniques
are hindering customer satisfaction so he fostered another method i.e. influencer marking.
Guy Riese
At the age of 22 Guy already established himself as an expertise entrepreneur who is
working from couple of years. He got his idea of business from his glandular fever so he scared
that he will fail in exams and remain behind from all other students. So he decided to develop his
own method of study. He researched a lot about method of learning but finally he concluded that
cognitive learning is the best suitable method for him since it is a mixture of cognitive science
with AI. When he gave his exam of chemistry when on going back to school he topped his class,

and this was the birth of his venture. He started his business named UpLearn which permits
student as well parent the right of gaining knowledge about subjects of their school and can learn
online on UpLearn with the help of cognitive science.
As CEO & Co-founder of UpLearn realised that due to illness many students are not able to
go to school and study so he took this challenge as window of opportunity and this fostered him
to start business of cognitive learning through internet at your doorstep (Boermans and
Willebrands, 2017).
CONCLUSION
In the last, by the above report it is concluded that small as well as micro organisation
plays an important role in increasing economy of country. To employ more number of
individuals and paying tax are some important aspects which provides economic benefits to
ruling government of country. Along with this there are different entrepreneurial ventures are
present in market that leads organisation to achieve their objectives effectively. Similarly, there
are different skill and traits are adopted by entrepreneur to perform their work in appropriate
manner through utilising specific aspects such as communication, leadership etc. In the last, two
successful business entrepreneurs are also included in this report to understand and analyse those
aspects which improves entrepreneurship in an individual.

REFERENCES
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Online
Aspects of Entrepreneurial personality. 2017. [Online].Available
through:<http://smallbusiness.chron.com/important-small-businesses-local-economies-
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