Entrepreneurship and Small Business Management

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.