Entrepreneurship and Small Business Management

please find attached ,brief and booklet

ENTREPRENEURSHIP AND
SMALL BUSINESS
MANAGEMENT
TASK 2

INTRODUCTION
The term entrepreneurship can be termed out as capacity and willingness to develop formulate,
organize and manage a business along with risk in order to make profit. It is process of designing,
launching and running the new business. Thus, to earn profitability the main aim of entrepreneurs
is to satisfy the customer by providing better quality of commodities. It is the act of creating the
business or businesses while building and scaling it to generate the large amount of profitability.
In the other words, it can be defined as transforming the world with help of solving the big
problems.

P3 INTERPRET AND ASSESS RELEVANT DATA AND
STATISTICS TO ILLUSTRATE HOW MICRO AND SMALL
BUSINESS IMPACT ON ECONOMY.

CONTINUE.
1. In above graph employment, number of business and turnover of SME's are given in UK industry.
2. Graphs shows there are 99.3% small size business are working in industry, where medium
enterprises has 0.6% share in market and big company's number remain limited to 0.1% only.
3. Total sale of SME's are 33%, for medium-sized it is 14% and big start up enjoying 53% of total
revenue of industry.
4. Employment opportunity given by small firm are 48%, which can consider as significant
contribution. Medium size creates only 12% jobs, and large size render 40% in total jobs.

CONTINUE.
1. Small size business contribute a large share in employment generation, which clearly shown in
graph, 48% (in whole UK economy) of employment is given by small enterprises.
Employment is one the key element economy.
2. There are approximate 25-27 million small enterprises which contributes 80% in private job.
Small size business create sense of financial independence among people, which encourage
investment in self employment opportunities.
3. Like an individual have enough capacity to earn but do not have employment, in such case
people can use their own money to get money inflow and SME directly render job to people.

CONTINUE.
1. Micro enterprise are aimed to bring innovation, these new idea and technology bring
improvement in society.
2. Like a small size SME's develop new road engineer machine, by its own effort. And, this
innovation will help in big infrastructure development project and road making.
3. Apart from these many economic actives are generated because of these business, which
multiply the employment too. Like an organisation need logistic, finance, insurance,
consultation services, in such case people working in these sectors also get more money
inflow, when they give service to company.

CONTINUE
1. SME's has 33% turnover in UK economy, where large size enterprise rendering 44% of
turnover, though small company's gives comparatively lower turnover than large size. But, as
absolute contribution, 33% can be considered as significance share.
2. Higher turnover further help in growth and expansion. Apart from it when, customer give
priority to local business, they indirectly help government to develop economy at national
level. For instance when buyer by from local small business, this will increase the sale and
revenue of firm.

P4 DESCRIPTION ON THE IMPORTANCE OF SMALL
BUSINESS AND BUSINESS START UPS TO GROWTH OF
SOCIAL ECONOMY.
1. Small medium-sized enterprise plays crucial role in the economy. Thus, small enterprise has
been facing an uncertain future from the time of referendum decision to leave Europe.
2. The major contribution of small businesses to local economies by bringing growth and
innovation to the community where it is established. It is also very assistive to stimulate to
economic growth with help of providing the employment opportunities to the people. Hence, it
can be true to said that UK's small business are key to economic growth.

CONTINUE.
1. The Thurrock is one of the unitary authority area and it is the part of the London. There are
also number of the enterprise and this are also contributing maximum economic growth. This
area offers flexible ‘easy-in, easy-out’ tenancy terms for professional office space and under
this Business provides a unique local environment in order to start-up businesses to Grow.
2. For example- The New Delhi Indian Grey is restaurant that is located in Thurrock they have
also with minim amount of capital. This has earned a lot of amounts of the profitability by
providing the better employment opportunities to employees. Thus, this area of UK has
contributed maximum to GDP.

CONTINUE.
1. After the issue of Brexit, it has been noticed that there was 0.5% of decline in growth rate of
GDP. This things have affected the larger entrepreneurial venture as compared to the micro
enterprise. It is the thing that has negative impact on the economy of the UK. In order to
access the impact of the Brexit on small level enterprise the government is taking various
initiative steps in order to take survey from UK SME’s.
2. This also has affected the economic development within the country. Small businesses playing
crucial role in economy as this ventures are enhancing the competition of emerging sectors and
this kind of enterprise are crucial for economic growth and having high innovation capacity.

CONTINUE.
1. The small business enterprise leads to have job creation and economic growth that aids to
guaranteeing social stability. Furthermore, small medium enterprise also works as to stimulate
entrepreneurship and innovation and these are very crucial for boosting competitiveness and
employment.
2. It is putting the impact on the economy at the huge level.
3. The medium sized organisation nimble because it is very easy to adapt the changing
marketplace conditions and product innovation in the fastest mode.

P5 DETERMINE THE CHARACTERISTICS TRAITS AND
SKILLS OF SUCCESSFUL ENTREPRENEUR AND IT
DIFFERENTIATES FROM OTHER BUSINESS
MANAGERS
1. An entrepreneur is a person, who put extra ordinary effort to establish and run the business.
These excel practice help them to cross the traditional way to perform the business and enjoy the
reward. When, it comes to successful people in today era, Richard Branson and Philip Green
does not need any introduction.
2. Richard is founder of virgin group. He took huge risk as virgin diversifies its business to more
than 10 industries. According to Branson, there are so many situational influence which
motivates a person to cross the thin line between concentration and remarkable personalities.
Richard asserted, risk is not only challenge a person, even they are essential for personal growth.

CONTINUE.
1. These people are self starter, if they find any required change, they do it by themselves. They
like to take proactive actions in place of reactive one because reactive actions have money and
time wastage associate with it.
2. These people set organization vision, mission, procedure, path because they are very much
aware about capacity and outcome expectations. Entrepreneur always tries to do something
new and innovative. And, innovation is result of creativity.

CONTINUE.
An entrepreneur always seek to stay competitive in market because they know they
can render the best service in which they have specialised knowledge, better
experience, and interest. For instance lifestyle ventures are established on the basis
of hobbies. People skill are related to communication and required skill for
interaction with other person. They have sound listening, speaking, motivational,
understanding and empathising skill. These qualities help them in good relation with
personnel and customer. People feel emotional attachment and valued. An efficient
owner also able to solve conflict effectively.

CONTINUE.
Generally people broke down when they face difficulty and repetitive failures, even
they failure as part of success not the final result. Strong entrepreneur likes to come
in new for their work not for personal life. They even do not get scary and affected
by criticism and negative comments. Like Philip Green frequently get accused with
relation with politician and celebrities, but he still manages to focus on his work,
rather than entertain negativity. Ordinary people waste their time in throwing the
stone to braking dogs, where leader catch those bricks and make business out of it.
They are so much committed to their goal, so that they are ready to make very
endeavour, which is required. Apart from it they choose important work over urgent
work to maintain the discipline. They try to remove every destruction which hinder
their work quality. Integrity is chosen set of action in ethical manner, even when
nobody watches. A successful initiator makes its decision in such manner which will
not adversely impact the individual, group, society and nation.

CONTINUE.
Successful leading people know the stress, financial, failure and relationship
management. Personal relationship is matter them. They also have sound marketing
skill, Richard Branson reflect its life's philosophy in marketing too. He tries to bring
fun and adventure in very single business function as well as marketing. They know
how to launch product, when and where to render service. Generally, Manager have
lack of creativity, they just know how to follow the instruction, they are not able to
make something fresh and brand new in industry. Their prediction and forecasting
power help them to identify and grab the market opportunity. Taking risk is not
everyone's cup of tea, only few people has dared to accept the risk, but this leading
people are even welcome risk for their ambition. But they take calculative risk not
absolute risk. Their confidence in their knowledge, skill and experience motivate
them internally to go ahead.

P6 ASSESS HOW ENTREPRENEURIAL PERSONALITY
REFLECTS ENTREPRENEUR MOTIVATION AND
MINDSET.
1. Motivation help in be continue in efforts even in saviour and adverse conditions. On the other
side mind set decide how things are presumed by one.
2. Entrepreneurs are blissed with some positive traits which is not easy to acquire by everyone.
Five factor is ideal to identifies these personalty traits and it's dimensions are quite matched
with personalty requirement of starter.
3. Following model is used to know the mindset of two most prominent entrepreneurs in UK i.e.
Richard Branson and Jean Paul Getty. james dyson is a famous industrialist who made
Dual Cyclone bagless vacuum cleaner. James is famous for his engineering innovations.

OPENNESS:
1. This trait comprises imagination, foresight and insight ability in person. An entrepreneur
having high openness trait has wider range of interest.
2. These people eager to know new thing, people and world. They want new experience as they
are more flexible in change and want to explore as they can.
3. Richard is the best example of open personality trait. His open mind help in creativity.
4. Branson also knowns for his adventurers marketing efforts and method, which is result of his
perception.

CONSCIENTIOUSNESS
1. People having high level of Conscientiousness are equipped with objective
oriented behaviour.
2. These people assert all the required action on time, which is necessary to achieve
the goal. Like Jean Paul Getty is punctual and organised person and he does not
procrastinate his work.
3. All the detail of minute change in petroleum industry is observed by him, even
after become a successful leader already.

EXTRAVERSION
1. It shows the emotional expressiveness in person.
2. A person who is talkative and gives promptly reaction to stimuli are more able to tackle social
situation successfully.
3. Richard has high extraversion, which make him extrovert, vibrant and activate on social
platforms, where Jean Paul Getty is intro-ward type of personality.

AGREEABLENESS
1. It contains all the good socially ethical behaver like affection, trust, respect and kindness.
People who are at positive side of Agreeableness are care for their belongings, treat other with
empathy and ready to help others.
2. Richard and Jean Paul Getty both are at same level In this point as they both try their best to
take care their people.

NEUROTICISM
1. It deals with psychological behaver of a person like high Neuroticism means person can have
frequent mood changes, worries, anxiety and stress.
2. This is not good for individuals who decide to do something risky as these people easily get
demotivated, stress in tough situations.
3. Low Neuroticism are favourable create positive mindset In starers.

DETERMINATION
1. People are who are more determined to their objectives, knows how to cross the bridge with
broken leg.
2. It means these people know how to tackle the adverse condition.
3. Like James Dyson won the long run race, even just after death of his father.
4. His determination to won the race, help him as emotional intelligence.

ABRAHAM MASLOW THEORY
1. According to the maslow motivation theory, every individual has five basic need, namely ,
Physiological needs, safety, Love and belonging needs, self actualization need. Individual
always seek to full fill the these requirements.
2. Sometime these need work as motivation factor to do something out of the box. For instance
some people have full-time job, decent salary, all the amenities. But they still not feel satisfied
due to lacking in self actualization need.
3. There are many examples are available who left their job in order to achieve dependency,
respect and dignity.

P7 EXAMINE, HOW BACKGROUND AND EXPERIENCE
CAN HINDER OR FOSTER ENTREPRENEURSHIP
1. There are so many factors which contributes in constitution of leader. Background factor
sculpture the personality of person where experience changes their mind-sets. For instance a
person having free environment and creative surrounding has prominent feature of leader,
where child who brought up with high restriction has less creativity.
2. These kinds of people hesitate in making big decision, also they possess sense of fear all the
time. Some factor are work in complimentary manner. For instance only creativity and
freedom cannot do anything if person do not have enough financial resources.

CONTINUE.
1. Richard know how to identify and grab the opportunity, which he learned in childhood
because his mother left him at countryside as punishment for misbehaviour at the back-seat.
2. He also learnt to receive direction from other before doing anything.
3. He put this lesson in his business too, his marketing team always ask people for their
requirement before develop anything for them.
4. This particular incident make him more fearless and confidence with his decisions.

CONTINUE.
1. Experience directly affect the risk taking decision making, as an individual who has more
positive experiences, welcome the risk and change.
2. Contrary, bad experiences lead to resistant of change.
3. Some unpleasant experience like corruption, lack of security, poor access, weaken utilization
work as hinder forces. For instance Mr. A Want to diversifies its business in construction
industry, though his information technology company is performing well.
4. In such case financial resources, huge investment requirement, ransom demanded by
government official lower the morale to go further.

CONTINUE.
1. Family size, nature of family member and economic status of family can not be neglected as
part of entrepreneur formation process. For instance child inheritance wealth, skill, and base of
business from his old generation, if one is born in family having manufacturing business,
definitely it prepares basis for future generation for industrial entrepreneurship.
2. Some times' failure works as foster factors too, they put challenge in front of entrepreneur,
which they want to overcome. For instance Richard had faced huge failure in business of
Virgin Cola and virgin car, but these disappoint works as basis of his milestone achievement
Virgin Atlantic.

CONCLUSION
From the above study is has been summarised that entrepreneur now play a significant role in
development of any nation. Government should encourage the start- ups as these new business try
to balance the dissimilar in economy by rending employment opportunities, enhance skill and
knowledge of human capital to become more competitive for further growth. There are so many
factors which directly and indirectly contribute in making of leader. Most of the incidents happens
at early stage of life, these incidents and experience latter play an important role in business
decisions too. So, this must be consider that Children should acquire non academic skill too,
which eventually help in getting the personality.

REFERENCES
Antoncic, B and et.al., 2015. The Big Five Personality–Entrepreneurship Relationship:
Evidence from S lovenia. Journal of Small Business Management.53(3). pp.819-841.
Bronfenbrenner, M., 2017. Income distribution theory. Routledge.
Coffie, S. and Blankson, C., 2018. Strategic prescriptive theories in the business context of
an emerging economy. Journal of Strategic Marketing. 26(5). pp.373-384.
Czarniewski, S., 2016. Small and medium-sized enterprises in the context of innovation and
entrepreneurship in the economy. Polish Journal of Management Studies. 13.
DeTienne, D. R., McKelvie, A. and Chandler, G. N., 2015. Making sense of entrepreneurial
exit strategies: A typology and test. Journal of Business Venturing. 30(2). pp.255-272.
Dunne, C., 2017. Can Intercultural Experiences Foster Creativity? The Relevance, Theory
and Evidence. Journal of Intercultural Studies. 38(2).pp.189-212.

THANK YOU