Entrepreneurship and Small Business Management

This assignment discusses the impact of small businesses on the economy, the traits and skills of successful entrepreneurs, and the importance of small businesses to the growth of the social economy. It also explores the characteristic traits and skills that differentiate successful entrepreneurs from other business managers.

Entrepreneurship
And
Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT.......................................................................................................................1
TASK 2............................................................................................................................................1
P3 Interpret and assess applicable data and statistics to illustrate how small and micro
businesses impact on the economy.........................................................................................1
P4: Explain the importance of small businesses and business start-ups to the growth of the
social economy.......................................................................................................................5
TASK 3............................................................................................................................................6
P5: Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers. .....................................................................................6
P6: Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mindset.............................................................................................................................9
TASK 4..........................................................................................................................................10
P7: Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship...................................................................................................................10
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
A small business is the of organisation, sole proprietorship and partnership which has less
resources and yearly income than a large of medium company. An entrepreneurial venture is
concept of beginning of small businesses to gives service or products with purpose of disruption
and organisation or increasing profits. It transforming the world thorough resolving the big issues
(Acs and et. al., 2016). For example developing an innovative product or presenting a newest
life changing solution. An entrepreneur is an individual who set up business with the goal to
create profit.
They are running, launching, designing a new business ideas in global market. Whereas,
the Entrepreneurs are persons who are taking hazards and risks for the development and growth
of business. They contribute more and more upliftment of economy of country in order to small
and new business are creating jobs for the local and general populations. New business is opened
by their creative and innovative ideas so that they are capable to develop new job opportunity for
persons in different areas. According to the ratio of unemployment is living and reduced their
standards of persons are increased as compare to old days. The government should help the
entrepreneurs financially so by this they can opened more small business in market place. (Acs
and et. al., 2017). In this assignment, it will discuss about various types of entrepreneurial
ventures and the way they relate to the typology of entrepreneurship. Moreover, it will discuss
about effect of small business on the economy and assess the main aspects of an entrepreneurial
mindset. Furthermore, it will discuss about the different environments that foster
entrepreneurship.
TASK 1
Covered in PPT
TASK 2
P3 Interpret and assess applicable data and statistics to illustrate how small and micro businesses
impact on the economy
The Economy is the term which is determining in different manner in that people are
created, wanted goods and services, use and exchange all needed. It is thing which permit them
for thrive and survive. In the country the economy is able to raise their contentious rate because
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of small and micro business. They develop job opportunities in around the world market, It plays
a vital role to enhance the national comer at a large level.
SME affecting on national economy:
Provides various Job opportunities- By the small business in the open market, it
created more job opportunities. They provides job to those peoples who are recruit by high and
top companies. Their demands is only for those workers who are hard worker and do work with
full dedication. As well as they hire skilled and capable employees as per their demands, in small
and micro business. By those employees who are supporting the company, so that, it will be able
to raise longer term sustainability. At a rapid scale level which indirectly increase the national
income through solving every issues that is linked to unemployment in the country. And by this
it is more important employment which enhances economy economy (Kuhn, Galloway and
Collins-Williams, 2016).
Furthermore, it identifying long term effect and sustainability that must be included in a
punctual way, that can be use any type of work generation program. In Economy, the occupation
provide income to those persons who are poor as well as their families, revives domestic
requirement for their growth and business and stimulates whole growth.
Poverty Alleviation- In small and micro businesses the employment assist to alleviate
poverty of workers who are poor. In different nations and countries most poor people deduct
their social unit income from self employment of marketing and their labours to other persons.
Hence, they developing opportunities for individuals to gain higher income and it is important
for poverty alleviation. The significant provision of employment opportunities to poor
populations and in that small and micro management is to reduce poverty in society. The SME
plays an important role in supporting and revitalizing the economy of Nation.
SME affecting on international economy:
Economic Development: It is the important process where national simple economy in
the low income are alter into modern industrial economy. But because of dawn the industrial
globalisation and modification as well as the contribution of SME raises later on economies of
scale is declined. This is the growth in standard of living persons in the country from their high
economy that means rich income economy and low income that is poor (Kuratko, Hornsby and
Hayton, 2015).
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Infrastructure development: In the country the economic phase is growing day by day,
due to the micro and small business contribute their work in a effective way. The cost is
collected and used by the government authorities for development and creation. If infrastructure
building bridges, schools, institutions and roads. The small scale infrastructure can frequently
created through local or firm collectives actions. But on the other hand the large scale
infrastructure is usually produced by public sector and publicly regulated monopolies.
With the help of diagram the impact of SME business that can be simply getting. The
graph is determined below:
From the Above graph, it is clearly determined that, In the country the business is
increased is year by year. In 2000, this can be interpret, from the above data, in which 3.5 million
s private sector has increased. Later on, it has raised approx 3.9 million private sector in 2005 for
upgrading their employment. On the other hand, 5.9 million companies has been increased in
2019. Private sector is increased and it enhance their GDP or has reduced poverty in the large
level national (Osiyevskyy and Dewald, 2015).
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From the above graph it can be concluded that small and medium businesses have
contributed towards the development of the country. Micro businesses contribute a total of
18.9% towards the economy, whereas small and medium enterprises contribute 23.4% and
29.2% each, respectively. It can be said that SME have a more positive chance of trading their
business overseas.
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Illustration 1: Brexit’s impact on small businesses
(Source: Brexit’s impact on small businesses: the experts may be spot on after all, 2020)

Illustration 2: SMEs and the Economy, 2016
(Source: BUSINESS POPULATION ESTIMATES FOR THE UK
AND REGIONS, 2016)
From the above graph it can be concluded that, there are nearly 99.3% small businesses
present in the United Kingdom with 33% workforce turnover as compared to medium and large
businesses that have the presence of 0.6% and 0.1% respectively. It can be seen that small
businesses have impacted the UK economy on a whole and have a great chance of being
successful even in the long run. Thus, in order to conclude the overall employment generated by
these businesses in the country has gone up to 15.7 million in the recent years.
P4: Explain the importance of small businesses and business start-ups to the growth of the social
economy.
There are some key points that are needed to promote their business growth of small and
start-ups businesses. These feature are described below.
Increasing awareness:- to sustain in market, it is necessary for business to create
awareness about barriers of economy. As many organisation are facing many challenges of
economy that are effecting their business activities. There are number of people who are
attracted towards the challenges of economic.
Motivating new products:- in this competitive world it is necessary to implement new
products of goods and services by innovative ideas that are promoted previously. The people
mostly attain unique services which result in update of their social economy of nation. This types
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of businesses results in increment of revenues in the market. As the new products can be made
according to customer needs which can help in promoting business expenditure to a higher level.
Providing job opportunities:- the new products demand new opportunities of people of
society. The entrepreneur can bring up innovative ideas to start a business. The new venture does
not need to be implement fresh candidates that can help the business in sustaining in market.
From this, the social economy can be increased through raising the economy of (Plotnikova,
Romero and Martínez-Román, 2016).
Enhancement of domestic culture:- the profitability and productivity of an organisation
has low down after Brexit. It has impacted on economic condition of various organisation. There
are number of barriers occur among organisation in UK. The small and start-businesses provides
essential products to customers. These products are needed by them mostly. The strategies of
small businesses includes increasing sales volume which result in positive impact on
organisation. This result in contribution in social economy by start-businesses through
maximized revenue.
Thus, from the above statistical data it can be said that small businesses are an important
component for economy of a country as they help in generating employment for people like
women who do not have access to jobs. Also, such businesses enable the economy to adjust to
and adapt changes quickly and thus fulfil the requirements of the customers. They serve as the
backbone of an economy as they provide access to various business opportunities which in turn
makes the market more competitive.
TASK 3
P5: Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers.
There are some characteristic, traits and skills which are needed in an entrepreneur from
which they can attain higher success in their business. The entrepreneur are able to take risks
from which they can gain higher profits in their business (Rainnie, 2016). By using their skills,
they can bring up innovative ideas in their businesses which can also increase their market share.
Some of the traits, skills and characteristic are described below.
Skills required in entrepreneurs
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 Ambition:- The entrepreneurs must have ambitious nature towards their goals. They
should have aspiring nature that can drive them to do work hard. The skills of both Brent
Hoberman and Ben Jeffries can help them to perform well in their business. This skills
are necessary to desire by entrepreneur as it can help in facing challenges of business.
 Ability to Listen:- This is an important skills which are needed to build effective
relationship with employees. It essential in businesses as it develops the interaction with
customers which is needed to make profits in the company. This skills of Brent
Hoberman and Ben Jeffries allows them to understand the work of their employees.
Traits required in entrepreneurs
 Flexibility:- This trait refers to flexibility of an individual to an extent in from which they
are able to handle the circumstances. This enhance their capability of thinking about
problems and solving them in a new and creative manner. The flexibility traits of Brent
Hoberman and Ben Jeffries help them in coping the situation that suddenly arises
company (Ramadani and et. al., 2019).
 Rule breaking:- This trait is a combination of smart and aggressive that come up with an
risk taking activities that can help in profit of business. In this, individual must have to
take risk by breaking rules of businesses. The entrepreneurs should believe on their
intuition of breaking rules and be conservative about their decisions. The Brent
Hoberman and Ben Jeffries are able to break rules which develop an positive outcome of
business.
 Passion and Dedication – Successful entrepreneurs are passionate about their work and
completely dedicated to it. This is what makes them different from other business
managers. They are always motivated towards achieving achieving the business
objectives and goals. For example – Mark Zukerberg, the founder of Facebook was
passionate and completely dedicated towards running his business of a social network
that helped him in being exceptionally successful that he is today.
 Being open minded – Entrepreneurs who are successful understand that every
opportunity that they get can be converted into a successful business opportunity.
Therefore, they never miss out any chance of interacting with new people and making use
of the opportunities that they get. For instance, Mark Zukerberg was an open minded
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person from the start and never missed out even on the smallest of opportunities to build
his business in to a success.
Characteristic required in entrepreneur
 Optimistic:- Those individual who are having this characteristic are always look on the
positive side. They always think such things that can bring things better. They see
challenges and problems as an opportunities from which they can develop positive side
of the business. The Brent Hoberman and Ben Jeffries enhance their business profits by
implementing optimistic environment in their (Rey-Marti, Ribeiro-Soriano and Sánchez-
García, 2016).
 Future-oriented:- The entrepreneur must have goal-oriented towards future. They must
have strong vision and mission which helps to develop proper establishment of their
goals. This skills of Brent Hoberman and Ben Jeffriess help them in achieving their
specific goals.
 Time Management – Successful entrepreneurs plan their tasks carefully and make sure
that no time is wasted in something that is not useful for the business and will not
generate output. As in the case of Mark Zukerberg, he allocates timelines to various
tasks and makes sure that he completes them within the deadline.
 People skills – Entrepreneurs who are successful also invest a proportion of their time in
networking with other business professionals. This is because networking provides
access to various business opportunities and to succeed in the market. This in turn results
in enhancing the overall performance of the business and creating a goodwill.
Difference between skills of entrepreneur and other business manager.
Skills Entrepreneur Business manager
Ability to listen This skills are adapted by
Brent Hoberman and Ben
Jeffriess in their business
strategies. The employees of
company are bale to express
their ideas which can develop
profits in the company (Frese,
The Steve Rowe can't able to
adapt this skills from which
employees are not feel
comfortable in sharing their
ideas to them.
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Hass and Friedrich, 2016).
Flexibility The Brent Hoberman and Ben
Jeffriess are expertise in
handling the sudden change of
circumstances that arise in
their business. With this, they
are able to deliver effective
services by developing new
and innovative ideas
This skills of Steve Rowe does
not appropriate to handle
sudden situation. This will
raise problems among
employees and manager to
implement innovative ideas in
their businesss (Elenurm and
Heil, 2015).
P6: Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mindset.
The entrepreneur must have such kind of personality that can enhance their business
profits. The personality can help entrepreneur in maintaining the businesses strategies from they
can acquires a specific goal of their business. These can affect their mindset and ideas which are
needed to be implemented in an effective manner so success can be achieved. The direction of
such implementation can effect their actions and activities which are needed to become a
successful entrepreneur (Dana, 2018). The entrepreneur can use OCEAN model in their
personality so that the skills can be effectively achieved. This model enhance some of other skills
in entrepreneur from which they can attain required objective of their business. The model of
personality traits is described below.
 Openness:- This is related to an entrepreneur personality traits in which they have open
mindset which helps them in imagination, curiosity, intuition and variety. The
entrepreneur needs to open about these factors so that risk of business can be prevented
and can developed into new and innovative ideas. This is needed to be implemented by
the entrepreneur in their business strategies. The openness of Brent Hoberman and Ben
Jeffriess help both of them in becoming a successful businessman. As they accept all
challenges which help them in gaining high profits and sustaining in the market
(Audretsch, Kuratko and Link, 2015)
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 Conscientiousness:- This is related with the concentration of entrepreneur which needed
in their businesses objective. This help both Brent Hoberman and Ben Jeffriess in
concentrating their work efficiently so that they can achieve high growth in their success.
The entrepreneur with concentration can become a highly disciplined and careful about
their decisions.
 Extraversion:- This factor refers to a person who is extrovert about his emotions and
share his experiences to others. This type of persons are very talkative, enthusiastic,
energetic and socially. The Brent Hoberman and Ben Jeffriess both are talkative and
extrovert which help both of them to share their ideas to their employees and customers
 Agreeableness:- This type of people are highly generous, empathy, trustable and
affectionate among others. With the help of this, the entrepreneur are able to implement
new ideas in their businesses so that positive environment can be promoted. This factor
helps both Brent Hoberman and Ben Jeffriess in evolving a affirmative environment so
that main objective of business can be achieved.
 Neuroticism:- It is related to anger, anxiety and stress that are needed to be control by
entrepreneur so that it can negatively impacted on the employees. This factor help
entrepreneurs in building communication and dealing well with staff members. The
Brent Hoberman and Ben Jeffriess both engage with their staffs members effectively.
They control their aggressive nature among employees from which they become a
successful entrepreneurs.
Thus, different entrepreneurs have different personalities that is relected in their level of
motivation as well as overall mindset. Thus, in order to understand the personality of an
entrepreneur effectively, the above stated model can be implemented.
TASK 4
P7: Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship.
The background and experiences of an entrepreneur directly impacted on their business
strategies. The Brent Hoberman and Ben Jeffriess have some good past experiences which help
them in becoming successful entrepreneur. It helps them to initiate innovative idea in their
business. Thee background and experiences of both entrepreneur are described below.
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Background and experiences of Brent Hoberman
He was graduated from New college, Oxford. He is a founder of founders factory in
which he encourage entrepreneurship through education. He has motivated from from his father
as his father is a successful business man of approx 650 shops around. In starting of his career in
a company but he fired from his first job which is of an investment banker. He believes that
business can be successful if entrepreneur is passionate about his work. With this skills, the
individual can break the rules from which the profits can be increases. He believes that an
optimistic behaviour can build a solution of any problem that may arise in businesses. The
entrepreneur has some good past experiences which motivates him to engage his skills in his
business strategies. His company has a type of accelerator which a company requires at the time
of starting their companies such as pre funding, best mentors, technologies. He came up of this
idea by getting out from his first company (Acs and et. al., 2016).
Background and experiences of Ben Jeffries
The experience of entrepreneur is that in past he set up his first business that is breeze. It
is a clothing company which is a small time business. After that he become an influencer. He
came up of becoming influencer comes from the back of his friend that usually throws around.
After it, the Ben needs an spark of inspiration in his life that leads to him drop out from the
university. Now he is one of the biggest influencer of companies. He worked in many companies
such as YouTube, Apple, Alibaba and many more. He believes that ability of listening and
communicating with others can help in increasing the interaction between customers and
influencer. The optimistic characteristic of entrepreneur motivates him to work efficiently which
is needed to be done in successful of a business.
The upbringing of children in a family that runs its own business is very different from
the family where parents are engaged in jobs. Children in former families have a high probability
of starting their own business ventures as compared to the later. Parents who run a business
support the idea of their children to start a business and provide advice and mentorship as they
have relevant experience and knowledge of the possible risks that may come in the way.
Whereas when a child who has been brought up by parents working in jobs puts forward the idea
of being an entrepreneur and starting his own venture, the parents might initially not support the
same as that would require a certain amount of capital, raw material as well as labour.
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CONCLUSION
From the above assignment, it has been concluded that there are different types of
entrepreneur projects that are occurring in market. The differences and similarities between
entrepreneur projects can help in understanding clear idea about them. The data of micro and
small businesses by using graph can help in developing important information about their
business. The small and start-businesses helps in growth of economy by providing unique and
essential needs of customers. Moreover, their strategies are also evaluated from which
improvements can be done socially. The characteristic, skills and traits of entrepreneur are
ascertained that are needed to improve some of their weak skills in a proper time. In this, the
entrepreneurial personality reflect entrepreneurial motivation and mindset is discussed so that it
can help in motivating others. The background and experience of two great entrepreneur that is
Brent Hoberman and Ben Jeffriess is determined to motivate others so that they can also attain
new and creative ideas in any change condition.
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REFERENCES
Books and Journals
Acs, Z.J., and et. al., 2016. National systems of entrepreneurship. Small Business Economics.
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Acs, Z.J., and et. al., 2017. The lineages of the entrepreneurial ecosystem approach. Small
Business Economics. 49(1). pp.1-10.
Audretsch, D.B., Kuratko, D.F. and Link, A.N., 2015. Making sense of the elusive paradigm of
entrepreneurship. Small Business Economics. 45(4). pp.703-712.
Dana, L.P., 2018. ENTREPRENEURSHIP & SMALL BUSINESS.
Elenurm, T. and Heil, P., 2015. Education and other competency sources for financially
successful entrepreneurship. International Journal of Entrepreneurship and Small
Business. 25(3). pp.314-330.
Frese, M., Hass, L. and Friedrich, C., 2016. Personal initiative training for small business
owners. Journal of Business Venturing Insights. 5. pp.27-36.
Hayes, J.P., Chawla, S.K. and Kathawala, Y., 2015. A comparative study of problems
encountered in the development of small businesses in the US and Mexico. The Journal
of Developing Areas. 49(3). pp.395-406.
Hoppe, M., 2016. Policy and entrepreneurship education. Small Business Economics. 46(1).
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Kuhn, K., Galloway, T. and Collins-Williams, M., 2016. Near, far, and online: Small business
owners’ advice-seeking from peers. Journal of Small Business and Enterprise
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Kuratko, D.F., Hornsby, J.S. and Hayton, J., 2015. Corporate entrepreneurship: the innovative
challenge for a new global economic reality. Small Business Economics. 45(2). pp.245-
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Osiyevskyy, O. and Dewald, J., 2015. Inducements, impediments, and immediacy: Exploring the
cognitive drivers of small business managers' intentions to adopt business model
change. Journal of Small Business Management. 53(4). pp.1011-1032.
Plotnikova, M., Romero, I. and Martínez-Román, J.A., 2016. Process innovation in small
businesses: the self-employed as entrepreneurs. Small Business Economics. 47(4).
pp.939-954.
Rainnie, A., 2016. Industrial relations in small firms: Small isn't beautiful. Routledge.
Ramadani, V., and et. al., 2019. Beekeeping as a family artisan entrepreneurship business.
International Journal of Entrepreneurial Behavior & Research.
Rey-Marti, A., Ribeiro-Soriano, D. and Sánchez-García, J.L., 2016. Giving back to society: Job
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Su, Z., Xie, E. and Wang, D., 2015. Entrepreneurial orientation, managerial networking, and
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Online
Brexit’s impact on small businesses: the experts may be spot on after all. 2020. [Online].
Available through: <http://theconversation.com/brexits-impact-on-small-businesses-the-
experts-may-be-spot-on-after-all-90561>.
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SMEs and the Economy. 2016. [Online]. Available through:
<https://assets.publishing.service.gov.uk/government/uploads/system/uploads/
attachment_data/file/559219/bpe_2016_statistical_release.pdf>.
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