Entrepreneurship and Small Business Management

This assignment explores the role of entrepreneurship and small business management in the growth and success of an economy. It includes an assessment of the impact of small businesses on the economy, characteristics of successful entrepreneurs, and the importance of business start-ups for social economic growth. The assignment also discusses the skills, traits, and characteristics of successful entrepreneurs through the examples of Tania Boler and Stephen Fitzpatrick.

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION ..........................................................................................................................3
LO 1.................................................................................................................................................3
This part is covered in PPT.........................................................................................................3
LO 2.................................................................................................................................................3
P3. Interpretation as well as assessment of relevant statistical data for illustrating how small
business along with micro businesses impact economy.............................................................3
P4. Explanation of importance of business start-ups addition to small businesses for social
economic growth.........................................................................................................................6
LO 3.................................................................................................................................................7
P5) Characteristics, traits and skills of successful entrepreneurs ...............................................7
P6) Entrepreneurial motivation and mindset ............................................................................10
LO 4 .............................................................................................................................................12
P7) Impact of background and experience on entrepreneurship...............................................12
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Entrepreneurship is basically a process that defines the various actions of an entrepreneur
who is an individual who always remain in search of new ideas and having the capability to grab
and exploit such ideas and covert them into profitable opportunities through accepting risk and
uncertainty associated with a business enterprise. This assignment is basically based on the
entrepreneurship and small business management that are plying a crucial role in growth and
success of an economy (Wu, Chen and Pan, 2019). This assignment includes an assessment and
analysis of impact lead by small business on the economy. Further, determination of
characteristics, traits and skills that makes an entrepreneur successful and different from mangers
are also included in this report. Beside this, an evaluation of entrepreneurial personality and its
reflection on their mindset and motivation together with impact of background and experience of
entrepreneurship is also form a part of this report.
LO 1
This part is covered in PPT.
LO 2
P3. Interpretation as well as assessment of relevant statistical data for illustrating how small
business along with micro businesses impact economy
Small businesses are those owned corporations which have fewer manpower along with
less annual revenue. In other terms, small businesses operates with limited employee size
addition to revenues that depends on pertaining industry in which they work (Renton and
Richard, 2019). Similarly, micro business are defined to as the one that operates at very small
size and scale. SMEs have significant role for developing economic position of a particular
nation.
The data and its interpretation related to SMEs are as follows:

Illustration 1: Data for SMEs. 2019
(Source: Data for SMEs. 2019)
According to above data, it can be interpreted that in the beginning of 2019, it is analysed
that there were around 5.82 million small businesses covering total business population of
approximate 99.3%. Moreover, 1.4 million small companies are there who are part of employing
bu2,168,005sinesses that provides huge employment to local and other residents of the nation. It
is also analysed identified that in UK, there are 5860085 businesses that are considered as SMEs
and around 1.6 million employments are provided by them. Annual turnover of SMEs are around
£ 2,168,005 millions In UK. These businesses share around 60% of total employment in 2019
that resulted in improvement of proportion from 16.3 million to 16.6 million of employment.
Furthermore, registered business for VAT and PAYE are around 2.3 million, that is 45% of
approximation of entire population.

Illustration 2: Proportion of employment,business as well as turnover in various sector of
UK, 2016)
(Source 1 : Proportion of employment,business as well as turnover in various sector of UK,
2016)
According to above graphical data, it can be said that small business have crucial position
in UK's economy as they are accountable for 48% of employment, 33% of turnover and around
99.3% of other business. While medium businesses holds 12% employment and 14% turnover.
At same time, large businesses only provides 40% employment and generate 53% turnover.
Hence, it can be said that SMEs increases employment opportunities for UK and also contributes
in various infrastructural development through paying taxes that impacts positively on economic
growth as it develops the nations at faster speed (Arend, 2019). Moreover, providing aspects to
other business in different nations impacts positively on cash flows and strong relationships that
improves growth situations of nation for development.
Evaluation of difference among small, medium and large businesses makes to economy with
application of relevant statistical data.
There are huge types of businesses which makes the economy. SMEs are the businesses
that operates at small scale as well as generates limited turnover. From the above graphical data,
it is evaluated that small business are generally accountable for 48% of employment and makes

around 33% turnover for taking the economy to development path. Whereas, medium sizes
businesses provides employment to 12% population and only makes 14% turnover. But, in
context to large businesses, they provide employment to 40% population and achieves turnover
of 53% as whole for making the economy developed.
P4. Explanation of importance of business start-ups addition to small businesses for social
economic growth.
Social economy is mentioned to the totality of associations, mutual companies, paritarian
institutions as well as social business which shares common characteristic. There are huge
number of assistances and subsidies that government of nation provides to SMEs for overcoming
from dominance of large enterprises along with frequent changes in market. As per the above
mentioned data, few of the importances of small businesses and start-ups for social economic
growth are as explained:
Contribution to innovation: Start-ups business and small businesses have talented
people who forecast needs of customers and accordingly innovate commodities that have
potentiality to satisfy demands through new idea or thought that attracts customer base
(Meshram and Rawani, 2019). In this context, it has been analysed that these businesses offer
innovative and quantitative products in national and international market that further leads in
attracting potential investors for making investments for achieving social economic growth.
Employs localities: Start-ups and small businesses generally stimulates growth of
economy by providing employment to localities that were rejected of not engaged by large
organisational businesses. With this, SMEs will attract and hire competent talent so to implement
new solutions by using current ideas. Moreover, it will uplift social economic growth through
increasing employment aspects fr the community members that increases living standards.
Critical examination of how small businesses impacts different economic levels as well as
international context.
Small business contributes huge for improving economic level in diverse contexts. Few
of the ways these businesses impacts are examined below:
Local level: SMEs initiates activities for satisfying demands of their surroundings or
local customers. Through understanding needs associated with different homogeneous segments,

entrepreneurs of small businesses performs actions to meet preferences of targetted ones
effectively (Gu and Qian, 2019). Moreover, they also hire local people and pays huge taxations
for infrastructural development that impacts positively at local level of economy.
Regional level: SMEs also works to develop regional level of economy by enhancing
living standards, making availability of demanded commodities and stimulating investors for
investing huge amount to develop regions which impacts positivity of development of social
economy at regional level.
National level: SMEs generally contributes in local and regional development for
earning predicted revenues that leads in low or negligible impacts of social economy at national
level.
International level: SMEs earns limited turnover and revenue as well as executes
activities for improving only local situations. Hence, they do not contribute in developing
economy at international level because of operating at limited scale (Lee and Kelly, 2019).
LO 3
P5) Characteristics, traits and skills of successful entrepreneurs
There are many skills, traits and characteristics that makes an entrepreneur great and
different from other successful businessmen and mangers (Eager and Cook, 2019). Great
entrepreneurs are one who are having the capability to do extraordinary things in an
extraordinary ways. To have a look into the skill, characteristic and traits of great entrepreneurs,
a discussion about two inspiring entrepreneur is provided below:
Tania Boler
She is the founder and CEO of Elvie company that provides a range of health and
pregnancy products for women. The main characteristics, skills and Traits of Tania Boler are as
follows:
Characteristics
Confidence- For becoming a great enterpriser confidence is must that provide a level of
self belief on work. Tania Boler is having characteristics of self confidence that makes her able
to take stiff decisions and provide a level of courage to face and tackle adverse situation that
makes her different from other managers and entrepreneurs who are not so capable of making
tough decisions at time of adverse situation (Karimi and Nabavi Chashmi, 2019).

Energetic- A High level of energy keeps a great entrepreneur cheerful and positive
toward their work thus, makes them able to have creative and better ideas. Tania Boler is
characterised as highly energetic person which makes her more enthusiastic and motivated
towards her work, high energy level provides a positive feeling to Tania Boler and boost her
interest in work that enhance the capability of having better ideas and innovation (Salter, 2019).
On the other hand, mangers and other unsuccessful entrepreneurs are quilt lethargic and lack
enthusiasm for their work.
Traits
Versatility- The trait of versatility makes Tania Boler able to handle and perform many
activities at a single time that is necessary to become a great entrepreneur as they need to manage
a large number of activity and operations. Tania Boler is able to effectively perform all the
management tasks together with keeping a balance between all other activities and function of
her organisation (Sathish and Rajamohan, 2019). This trait if Versatility is lacked in mangers that
makes them inefficient and hinder their performance.
Decisiveness- This trait made Tania Boler able to have proper understanding of a
situation and enhance her capability of making effective decisions to cope up with and counter
problems through better understanding of root cause of issue. This trait makes Tania Boler
different from mangers and other entrepreneur as they lack trait of decisiveness thus, not bale to
analysis a problem effectively therefore, adverse situations are not overcome by them.
Skills
Resilience- This skill of Tania Boler makes her able to positively handle the rejections
and failure with a calm and patience nature. The great entrepreneur takes failure and rejections
an opportunity that enhance their knowledge and experience. Tania Boler accept all challenges
and failure with a positive attitude and works hard with all determination to handle and cope with
that situation on the contrary, mangers are sacred of rejection and lack determination for their
work.
Time management- It is most essential and crucial skill for a greet entrepreneur as it
makes them disciplined and efficient towards their work. Tania Boler is having good time
management skills and is very punctual and dedicated for her and well plan all activities to
complete all task on time which makes her able to achieve desired goals and objectives with in a

specific time-frame (Guerrero and Urbano, 2019). On the other hand, mangers are not so good at
time management thus, delays are seen in their work and achievement of objectives.
Stephen Fitzpatrick
He is a well known British Businessmen and founder and CEO of OVO energy and also a
former owner of the Manor Racing team. In 2016, he has founded Vertical Aerospace which is
bring a revolution in air travel that makes him a great entrepreneur. The main skills, traits and
characteristics of Stephen Fitzpatrick are as follows:
Characteristics
High Perseverance- It is characteristics that motivates an individuals to make continuous
efforts with full determination to achieve success in-spite of all failures and obstacles. Stephen
Fitzpatrick is having this characteristics of high perseverance that keeps him directed towards his
goal and objectives through positively meeting all challenges and obstacles. Mangers and other
entrepreneur lack this characteristics thus, leave out their work in mid because of issue and
challenges.
Risk taker- Great entrepreneurs are having the thinking of higher the risk higher will be
the profit earned thus, this characteristics of Stephen Fitzpatrick makes him a great entrepreneur.
Characteristic of high risk taker makes Stephen Fitzpatrick able to grab and exploit foresighted
opportunities which yield better results and success for him. On contrary, managers are having a
conservative behaviour thus, do not take much risk (Peterlin, 2019).
Skills
Leadership skills- Stephen Fitzpatrick posses good leadership skills that makes him able
to effectively motivate and guide its fellow members and employees for achieving desired goals
and objectives. This influencing and directing power of Stephen Fitzpatrick makes him better
and superior than other entrepreneur and mangers who believes in ordering their employees
instead of providing guidance.
Communication skill- An entrepreneur require to communicate and built relation with
various associated parties like partners, business associates, employees, suppliers, etc. thus, a
good communication is required to have healthy relation with them (Borquist and de Bruin,
2019). Stephen Fitzpatrick is having a great communication skills that makes him able to
properly clarify his views and ideas that makes it easier to guide and direct employee and also

reduce the chances of chaos and Confusion where as mangers are not having much efficient
communication thus, faces many hindrance in maintaining relationship with stakeholders.
Traits
Passionate- Stephen Fitzpatrick is keen towards his work and highly passionate for his
revolution made by him in air travel which maintain his interest therefore, never feel bored or
tired of his work. This level of determination and passion is not seen in mangers and other
entrepreneur thus, they are not able to become great entrepreneur.
Creativity- It is trait that makes Stephen Fitzpatrick able to think in an extraordinary way
and enhance capability of bring better innovation and new idea in business for better success.
Regular modification and new revolution are made by Stephen Fitzpatrick because of this trait of
creativity which makes him better than other entrepreneur and mangers who likes to move and
traditional path are not much creative (Froese, 2019).
P6) Entrepreneurial motivation and mindset
The mindset and level of motivation of an entrepreneur is highly depended on its attitude
and behaviours that in as immense part of their personality. Thus, to have better understanding
about various personality traits and to evaluate their reflection over entrepreneurial mindset and
motivation use of OCEAN model is made which is described below:
OCEAN model
It basically consists of five personality traits that are mainly possessed by an individuals.
A description of all theses personality trait is provided below:
Openness- High insight and effective imagination power are the main characteristics of
this personality traits. A person having Openness personality trait are very dynamic and have a
wide range of interest and willing to explore different activities of world. These kind of
entrepreneur are quite bold and creative and loves to take new challenges (Canziani and Welsh,
2019).
Conscientious- The individual with this trait are characterised as goal oriented person
and have highest level of thoughtfulness. Highly conscientious entrepreneur are having
exceptional organisational abilities and plan everything in advance thus, good at time
management and planning.
Extraversion- The individual with this personality traits are emotionally expressive and
have an habit of asserting their idea with others that makes them extrovert. The entrepreneur

belongs to extraversion personality traits are characterised as highly talkative and socially
excitable person and are also very courageous and energetic that makes them easily visible to
other people.
Agreeableness- It is the best personality trait for any entrepreneur as these kind of
individuals are full of kindness, affectionate and most trustable person. They are also very
helpful and generous person and most cooperative with its employees and other fellow beings
(Sá, Casais and Silva, 2019).
Neuroticism- The person with Neuroticism personality traits are characterised as
emotionally unstable, unhappy and sulkiness person thus, not suitable and not seen in great
entrepreneur. These persons are bouts with anxiety, mood swings and sadness and easily get
irritated with small things and problems.
In Tania Boler a mix personality of Conscientious and Extraversion is seen as she is a
good planner and have effective time management that makes him belong to the category of
Conscientious (Allen, 2019). Because this, Tania Boler is highly energetic and possess high level
of self confidence that makes her extrovert personality and lead to positive mindset and effective
decision making that makes her a great entrepreneur.
Stephen Fitzpatrick is having Openness personality trait as he very bold and having a
multidimensional interest that includes F1 racing and revolutionary ides for air travel. Beside this
he also posses good communication and leadership skills that makes him able to effectively
motivate and guide his employees together with good decision making policy and strategy.
LO 4
P7) Impact of background and experience on entrepreneurship
Background and personal experiences of an individual lead to significant influence over
their personality and traits that determine the nature of any successful entrepreneur. These
influence and impact can be negative and positive (Minto-Coy, 2019). To analysis the effect of
background and experience on success of an entrepreneur a discussion of personal experience
and background of two great entrepreneur is provided below:
Tania Boler
Background- Tania Boler is an inspiring UK entrepreneur residing in London, UK. She
is a Ph.D. Holder from London school of Hygiene and tropical medicine and compete her master
degrees from Stanford University.

Experience- Tania Boler is the Founder and CEO of Elvie, a health and lifestyle brand
developing smarter technology for women. The first product created by Elvie Trainer, is a
category-defining Kegel trainer that has more than 800 health professionals recommending it,
was profitable within six months and is sold in major retailers, including Nordstrom and John
Lewis (Otache, 2019).
The life experience and background of Tania Boler has supported her to become a great
entrepreneur as her own experience of pregnancy has made her realise that a little and efficient
use of technology can help women and can make their pregnancy more comfortable Beside this,
her Ph.D and other educational qualification and skills also supported her in this field and lead to
foundation of Elvie in 2013.
Stephen Fitzpatrick
Background- He is a famous British Businessman who was born in Belfast and
completed his study from Our Lady and St Patrick's college and University of Edinburgh and
received hid master's degree from this collage.
Experience- After his education Stephen Fitzpatrick, founded a real state advertisement
business for which he was nominated as young entrepreneur of the year. In 2009, he founded
OVO energy and also shows interest in Formula one racing. Further in 2016, he founded Vertical
Aerospace that brings a revolution in air marvel through idea of carbon- free inter city taxis
(Singh and Bisariya, 2019).
The life experience of Stephen Fitzpatrick is showing that from childhood he was very
creative and possess entrepreneurial skill that helped to become and mange the business
enterprise effectively. Beside this, openness personality trait of Stephen Fitzpatrick has made
him bold and provided interest in different fields that includes energy sector, aerospace and also
the Formula one racing.
CONCLUSION
On the basis of above assignment it can be concluded that a crucial role is played by
entrepreneurship and small business management in success and effective growth of organisation
as it enhance the level of job opportunity and also lead to better productivity of nation. Further, it
can be concluded that there are various traits, skills and characteristics like communication skill,
time management, confidence, etc. makes a great entrepreneur superior than other managers and

individuals. At last, it can be summarised that background and personal life experience of an
entrepreneur also lead to success or failure of a business enterprise.
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Online:
Data for SMEs. 2019 [ Online]. Available through:
<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>

Small business statistics in UK. 2020. [online]. Available through: <https://www.fsb.org.uk/uk-
small-business-statistics.html>