Entrepreneurship and Small Business Management: A Comprehensive Analysis

This assignment delves into the multifaceted world of entrepreneurship, exploring various types of entrepreneurial ventures, their impact on the UK economy, and the characteristics of successful entrepreneurs. It examines the role of small businesses and start-ups in driving economic growth, analyzing the entrepreneurial mindset and the influence of personal background and experience on entrepreneurial success. The assignment utilizes real-world examples to illustrate key concepts and provides insights into the factors that foster and hinder entrepreneurial ventures.

Entrepreneurship and Small Business Management
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Table of Contents
Introduction................................................................................................................................3
Task 1.........................................................................................................................................4
Task 2.......................................................................................................................................10
Task 3.......................................................................................................................................12
Conclusion................................................................................................................................17
References................................................................................................................................18
Appendix..................................................................................................................................20
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Introduction
Entrepreneurship is the setting up a business which involves a lot of risk. In this assignment
the different ventures of entrepreneurship will be discussed. The impact of small business and
start ups in the UK economy is also some that will be discussed in this assignment. The
assignment will also focus on the different aspects of entrepreneurial mindset. In the end
there is also explanation on the environment that fosters and hinders entrepreneurs.
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Task 1
Executive Summary
In this particular section the researcher will discuss about the various aspects of
entrepreneurial ventures. This study discusses the
Introduction
A person who starts and operates business on limited resources and is responsible for all the
risk and crisis of the business is call entrepreneur and his business is known as
entrepreneurial venture. In this report the researcher will discuss about the types and
functions of entrepreneurial ventures.
In the given scenario, Sir Richard Charles Nicholas Branson has shared his views regarding
entrepreneurial ventures. Branson is the founder of Virgin Group which currently owns 400
companies under the brand name. The company operates in Financial Services, Travel &
Leisure, Music & Entertainment,Telecoms & Media and Health & Wellness sectors.
1. Identify the various types of entrepreneurial ventures, and explain on how they relate
to the type of typology of entrepreneurship.
Entrepreneurship is the process of setting up a business venture and the process involves
taking financial risks in order to succeed. There are four main types of entrepreneurship,
which will be discussed in the following section.
Small business entrepreneurship: As the name suggests the business ventures which are
small scale are part of this type of entrepreneurial ventures. The main goal behind a setting a
small business is mostly to support the individuals not taking over the industry (Schaper et
al., 2014).
Scalable start up entrepreneurship: the main difference between the small business and
scalable start up is their purpose. The scalable start ups though begin small scale but the
investors are aware that the business has the scope of taking off and making it big. The
purpose behind the scalable start ups is to make a change in the world(Rasmussen, and
Tanev, 2015).
Large company entrepreneurship: Large companies have a long life cycle and they often
invest in or acquire business, which are innovative in nature. Sometimes they even expand or
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start producing new products as well. These types of ventures are called large company
entrepreneurship (Kuratko et al., 2015).
Social entrepreneurship: Social entrepreneurship is the type of venture where a social
problem is focused. Products or services that this type of business ventures provides are
intended to solve a problem that the society is facing. Technical entrepreneur are part of this
type of entrepreneurship. Sustainable entrepreneurship is also part of this type of
entrepreneurial ventures (Dees, 2017.).
In the end it can be said that the type of entrepreneurship is very important and it has great
impact on the economy of a country. The products and service that the entrepreneurs provide
are oftentimes innovative and benefit the society in some way.
2. Investigate the similarities and differences between entrepreneurial ventures.
There are some basic differences and similarities in the different entrepreneurial ventures
which will be discussed in the following section.
Economic goals: depending on the size of the entrepreneurial venture the economical goals
are set. The small business are mostly has low financial goals and they support families or
individuals. Scalable start ups in the beginning the financial goals are low but as they grow
the company have greater scope acquiring better economic goal. On the other hand the
companies which are part of large companies have the financial support. Social
entrepreneurial ventures are less concerned with the finances and more focused on bringing
change in the society (Kellermanns et al., 2016).
Reward and risk profile: the reward and risk is depends on the type of the venture. If the
reason for setting up a entrepreneurship is to generate living than the risk factor is less. If the
purpose is greater than just generating a living like innovation in technology and in the
commercial sector or even social problem is another focus then the risk is high.
Entrepreneurship in corporate or public sector is therefore has high risk but at the same time
reward is also high.
Finance strategies: Finance strategies are different on the basis of the type of
entrepreneurship. The corporate entrepreneur are therefore incorporate that will help them
grow in business. On the other hand small and scalable entrepreneurship ventures rely on the
investors and therefore some time strategies are made in consideration by thinking about the
future of the venture (Parker, 2018).
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Environment: The environment on the all the type of entrepreneurship venture is very
similar. The entrepreneurs are very driven and creative. These ventures maintain this trait in
their business environment as well. all types of venture social to corporate entrepreneurship
ventures gives a challenging business environment and the employees are also encourages to
utilise their creativity (Pinkse, and Groot, 2015).
There might be some differences in the way different types of entrepreneurship ventures are
operated but the basic purpose is always related, which is to bring a change with innovation
and creativity.
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3. Discuss the diverse range of entrepreneurial ventures to demonstrate an
understanding of entrepreneurship in both the public and corporate sector.
Entrepreneurship on public sector: Entrepreneurship in public sector refers to the internal
growth of an economy through entrepreneurship. The entrepreneurship ventures has great
impact on the public policies and the internal economy is grows as well. There is also the
matter of technological advancement which is happening all due to the entrepreneurship and
that is also part of the growth. There are sustainable entrepreneurial ventures, which are
helping in finding sustainable alternatives. The creativity and the innovation is a huge benefit
entrepreneurship in public sector. Public sector is not focused on profit bearing like private
sector. The policies in public sector are more complicated and inflexible (Mazzucato, 2015).
Entrepreneurship in corporate sector: The entrepreneurship is generally associated with
private sector. The private sector companies, that are large scale use entrepreneurship to grow
and utilise innovative business venture. The corporate innovation is the key of economic
success. The high risk taking attitude of the corporate sector is also something that helps
entrepreneurial ventures to grow (Burns, 2016). The scope in the corporate is much bigger as
well. The entrepreneurial ventures in the corporate sector are also much more profit bearing
sector and chances are these ventures succeeding are much higher. The independent work
approach is also very important and this gives them courage to try very different strategies
and excel. Corporate ventures also can be beneficial for the society in terms of technology or
any other aspect.
The entrepreneurial ventures of both corporate and public sectors have their own pros and
cons and influence the different entrepreneurial ventures in their respective manner.
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4. Critically examine the scope, development and growth of entrepreneurial ventures.
In this dynamic economy there is a lot of scope in the growth and development of the
entrepreneurial ventures. The small scale businesses are increasing day by day and the people
are more interested in being self employed and bringing change through innovation.
Entrepreneurs are helping the economy and not only that the constant innovation in products
and services are changing the modern day lifestyle. The technology is a huge part of it. There
is also great scope of employment that is being generated through entrepreneurship ventures,
which is again will support the growth and development economy. All these factors prove
that supporting the development of the entrepreneurial ventures will be beneficial. Currently
in the UK market the scope is very much present being the 4th most entrepreneurial economy
in the world (DeSantola, and Gulati, 2017).
Technological advancement is also going to create scope in the entrepreneurial venture. The
environment and the economy is both supporting the entrepreneurial ventures and the scope
is increasing but at the same time this entrepreneurial attitude also over saturating the market.
Therefore careful implementations of policies are also required to support this for long lasting
growth process.
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Conclusion
To conclude with it can be said that the entrepreneurial ventures are defiantly influencing the
society and economy. In this section the different types of entrepreneurial ventures are
discussed. The differences and the similarities of the entrepreneurial ventures are discussed
and how they are conducted in public and private sector is also explained. In the end the
growth and development of the entrepreneurial ventures is also evaluated.
Recommendation
 For better growth and development of the entrepreneurial ventures there should be
better policies and guidelines so that the life cycle of the venture can be organised and
long.
 The government of UK should definitely support these ventures with required
financial help as well so that the growth rate will be faster and contribute to the
country’s economy.
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Task 2
a. Evaluate critically the contribution of micro and small businesses to the U.K
economy in the last three years. Please support your analysis with recent data.
The contribution of small and micro business on the economy of United Kingdom is huge. In
1919, a small business was started for selling groceries. After two decades, the company is
now employed more than 472,000 people and generates £6,000 profits each day (Schaper et
al.,2014). This business is now well known as Tesco. In reality, small businesses, which
grows at such tremendous rate, provides sixty percent of the private sector jobs in United
Kingdom and contributes fifty percent towards the growth domestic product of United
Kingdom. In United Kingdom, small and micro enterprises (SME) have contributed over £2
trillion last year and appointed 2 million people in their private sector employment. It is
particularly said that the small enterprises have boosted the growth by incorporating
innovation by taking calculated risks. In addition, they encourage competition and fresh ideas
that could possibly challenge the status quo. It is found that big business house grows almost
half as much the small business can grow.
(Source: Erase et al., 2015)
Statistics have shown that last year United Kingdom had over 5.5 million private sector
businesses among which ninety-nine percent was small and micro enterprises. In addition,
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over the past five years, the small and micro enterprises have brought more than fifty percent
of the external funding in the form of business start-up loans, government loans and others.
The Federal of Small Business (FSB) believes that the small and micro enterprises hold the
key for growth in United Kingdom.
b. Examine the role of small firms and their contribution to the economy at local,
regional, national, regional and international levels.
According to the World Bank, small and micro enterprises have less than 50 employees at
micro scale, 50 employees or more for small scale and up to 200 employees at medium scale.
The small and micro enterprise contributes a lot towards a country’s economy. The small
firms have narrow focus and it offers a handful of products and services. Moreover, small
businesses are launched in market with exceptionally generous financial backing. The small
business enterprises are capable of providing specialized goods and services at local
level.The small businesses contribute at local level by introducing new products and therefore
provide new jobs at regional level. They meet the needs for larger organization at national
level and inject a considerable amount of money into the economy with establishing small
business on a national level. The small companies take the risks for growing internationally,
which the larger companies scare to take and avoid risks. The small firms have several
objectives, which differs from those of large companies. The small businesses have more
freedom to innovate and they can take more calculated risks and therefore find it easier to
take quick decisions according to marketplace. The small and micro enterprises hold a great
importance in contributing towards a country’s economy at international levels, because they
are an effective antipoverty program(Cowling et al., 2015).
c. Discuss the importance of small businesses and business start-ups to the growth of the
UK economy.
Small business and start ups are thriving in the UK and creating a lot of opportunity is being
created. In the year 2013-2014 a record number of SMEs and start ups created in UK and so
far UK can be counted on the top 4 countries, which has the largest number of entrepreneurial
support. Following are some of the factor of importance of small business and start ups in UK
economy.
Turnover: The first thing about the SMEs and start ups are that the huge number of turnover
that is happening in UK is a lot. Yearly almost more than 1.4 billion dollar turnover happen
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in UK. This accounts for the almost 45% of the turnover of the private sectors, which is
impressive(Burns, 2016).
Employment generation: The growth and development in the SMEs and the start-up also
helping generating a lot of employment in the country, which also a very encouraging factor.
The government is therefore supporting the SMEs and start ups very much. The people
attitude towards also have changed as well. Almost 50% of the employees of private sector
now part of SMEs and start ups.
Growth: The growth of the economy is definitely an influencing factor and a huge number
of revenue also being generated from these SMEs and start ups. Other than economical
growth there is also a lot of innovation that is happening in UK due to SMEs and start ups.
Industry: The growth inthe industry such as retail and manufacturing are also very much part
of the growth. Industries are now growing faster with the help of innovative technologies and
services, which are happening rapidly due to SMEs and start ups.
Task 3
1. Determine and analyse the characteristic traits and skills of a successful
entrepreneur that differentiates them from other business managers. Illustrate
your answer with examples from the case study.
The successful entrepreneurs have certain traits and characteristics and to some extent these
characteristics are responsible for their success (DeNisi, 2015). Following are some of
characteristics of successful entrepreneurs:
Risk taker: the risk taking is one of the key traits that can be seen in the entrepreneurs. For
example Steph croft Simon started out; there was no other business venture in UK like that.
This seemed like an opportunity for her instead of a risk.
Positive in attitude: The positive attitude is a must for the people who succeed in life.
Entrepreneur like Steph croft Simon who knows that even though there are huge competitions
in this industry but this never stopped her from pursuing her goals.
Self confident: Self confident is definitely needed for success in entrepreneurship business.
Step croft Simon before coming into this business was not sure anything but the fact that
there is a market for healthier popcorn and her confident has helped her built this business.
Goal oriented: This is another trait of a successful entrepreneur. The goal should be never
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out of focus. For Steph Simon, her goal to transform her idea into a successful business was
her constant focus and with her determination, she has become a successful entrepreneur of
UK.
There are also certain skills than an entrepreneur should poses in order to make their idea of
business a successful business.
Business skill: the business skill is definitely necessary to establish a business. The
entrepreneur should posses a business instinct. Whereas managers will be organises the
entrepreneur creates and inspires.
Communication skill: The communication is very important and the ability to convey and
motivate people is what an entrepreneur utilises this skill.
Decision making skill: The decision making skill is very necessary as well. The
entrepreneurs have to make a lot of tricky and risk taking decision regarding their business.
Problem solving skill: like decision making skill, problem solving skill very necessary in for
establishing a business. The entrepreneurs have to always ready with solutions if there is a
tricky situation that the business is about to face.
2. Access and analyse how aspects of the entrepreneurial personality reflect
entrepreneurial motivation and mind-set?
Mindset of the entrepreneur is different and it reflects on their personality. Following are
some of the motivational mindset that is required to become an entrepreneur. The personality
of an entrepreneur also shaped around these mindsets (Burns, 2016).
Optimism: Being optimistic is one of the first personality traits of entrepreneurs. This shows
their confident towards their passion and no matter what the odds are they are very much
optimistic. This also motivates them to keep pursuing their goals until it becomes a reality.
Curiosity:Curiosity is again a very common personality trait that can be seen in the
entrepreneurs. The curiosity is part of innovation that comes with entrepreneurial ventures.
This mindset of the entrepreneurs all ways pushes them to go the extra mile and this is also
what differentiates them from just a business man.
Commitment:the commitment is something that needs to be present in a entrepreneurs
personality. This mindset motivates them to never give up and keep them set on the path until
they succeed.
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Leadership:Entrepreneurs are born leaders. They have leadership capabilities and they
utilise this capability to motivate the other people that is part of the ventures. They inspire
and motivate others and always push others to excel as well.
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3. Explore and examine different arguments relating to entrepreneurial characteristics,
such as are entrepreneurs born or made? Can anyone learn to be an entrepreneur?
The distinct personality traits of entrepreneurs set them apart from others but there is a
conflict between the fact that, are these traits acquired or entrepreneurs are born with it.
According to some that the entrepreneurs are born with these traits and these needs to be
instilled in them from the birth.In the recent times a study has shown that there is actually a
thing called “entrepreneur gene”, which means that people with certain genetic characteristics
will much likely to be a successful entrepreneurs. There is also matter of the background and
the lifestyle that also affects an individual (Piperopoulos, and Dimov, 2015).
The education is also something that is a big part of the entrepreneurial base. Some studies
have proved that specialised study regarding entrepreneurs ill definitely influence the
entrepreneurial attitude. Certaintraits need to present in entrepreneurs inherently like business
instinct, leadership skills. Certain skill can acquired though education and life like,
communication and problem solving skill, which helps in shaping a successful
entrepreneurial venture. So it can be said that the yes it is possible that the entrepreneurs has
specific qualities that they are born with but it does not mean that they do not need to learn
anything. Their individual personality and the skill they acquired through experience are both
important for a successful entrepreneurship.
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4. Examine, using relevant examples from the case study, how background and
experience can hinder or foster entrepreneurship
Background plays a huge role in shaping an entrepreneurial mind set. The experience of an
individual is always important for directing them towards their goals. The entrepreneurs who
are successful always have received support from their family and the environment they grow
in. For example the in the case of Steph Croft-Simon who has built an empire out of her
mother kitchen would not have been possible if the she did not received any support from her
environment. She left the safety of her teaching job to start her own business and the stakes
were high but she did not give up on her dreams and the support system is necessary for that
kind of attitude (Blumberg, and Pfann, 2016).
Experience on the other hand something that is acquired as one pursues their dream. People
like Steph Croft-Simon are self made and the support they received is more psychological but
the resources were her own and the ideas as well. In this journey of setting up something
innovative there are obstacles and to overcome these obstacles the entrepreneurs utilise their
experience. Therefore a person who has not been coddled is morelikely to be successful in
entrepreneurship. An entrepreneur, who belongs from a wealthy background and has no life
experience are prone to failure in entrepreneurship. This kind of background does not foster
entrepreneurial characteristics.
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5. Analyse the link between entrepreneurial characteristics and the influence of
personal background and experience to specific successful entrepreneurs. Critically
evaluate how the background and experience influences entrepreneurs, both positively
and negatively. Illustrate your answer by comparing and contrasting examples that you
have researched independently from the case study.
Personal background is always an influencing factor for the entrepreneurs. Steph Croft-Simon
a successful self made entrepreneur and the situations in life she has faced has helped her
shaping up a successful carrier in entrepreneurship. Behind starting her business was the
circumstance she has faced in life. She has developed some allergies towards certain food and
she was also intolerant of sugar and dairy. Her health conditions lead her to finally start her
own business, whichprovided healthier, vegan option of snacking. This shows that the
personal circumstances always playa huge part in entrepreneurship. If a person comes from a
very privileged lifestyle they are not likely to survive in the business for long period
(Rasmussen, and Tanev, 2015).
On the other hand if a person, who has almost no support, form family, it is hard for them to
be optimistic when faced with hard circumstances. Being self made is important and if the
family background is supportive it becomes even easier. For Steph Croft-Simon her family
was supportive in the process she even started her business from her mother kitchen, which
states that the support of the family definitely plays a part in success of an entrepreneur. On
the other hand the pressureishigh and the need to prove that the he or she is capable can make
the entrepreneur stressed out.
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Conclusion
To conclude it with it can be said that the entrepreneurship is very much important for the
economy of the UK. In the assignment the different types of entrepreneurial venture is
discussed and there is also discussion on the private and corporate entrepreneurship. There is
an also small businesses and start ups, which has huge impact of the UK economy which is
discussed in this assignment. In the end there is an evaluation on the motivation and mind set
of the entrepreneurship. To discuss all these, the different entrepreneurs like Richard Branson
and Steph Croft-Simon is taken as example for better understanding of this study.
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References
Blumberg, B.F. and Pfann, G.A., 2016. Roads Leading to Self–Employment: Comparing
Transgenerational Entrepreneurs and Self–Made Start–Ups. Entrepreneurship Theory and
Practice, 40(2), pp.335-357.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Cowling, M., Liu, W., Ledger, A. and Zhang, N., 2015. What really happens to small and
medium-sized enterprises in a global economic recession? UK evidence on sales and job
dynamics. International Small Business Journal, 33(5), pp.488-513.
Dees, J.G., 2017. 1 The Meaning of Social Entrepreneurship. In Case Studies in Social
Entrepreneurship and Sustainability(pp. 34-42). Routledge.
DeNisi, A.S., 2015. Some further thoughts on the entrepreneurial personality.
Entrepreneurship Theory and Practice, 39(5), pp.997-1003.
DeSantola, A. and Gulati, R., 2017. Scaling: Organizing and growth in entrepreneurial
ventures. Academy of Management Annals, 11(2), pp.640-668.
Fraser, S., Bhaumik, S.K. and Wright, M., 2015. What do we know about entrepreneurial
finance and its relationship with growth?. International Small Business Journal, 33(1), pp.70-
88.
Kellermanns, F., Walter, J., Crook, T.R., Kemmerer, B. and Narayanan, V., 2016. The
resource‐based view in entrepreneurship: A content‐analytical comparison of researchers' and
entrepreneurs' views. Journal of Small Business Management, 54(1), pp.26-48.
Klotz, A.C. and Neubaum, D.O., 2016. Article Commentary: Research on the Dark Side of
Personality Traits in Entrepreneurship: Observations from an Organizational Behavior
Perspective. Entrepreneurship Theory and Practice, 40(1), pp.7-17.
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.245-253.
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Mazzucato, M., 2015. The entrepreneurial state: Debunking public vs. private sector myths
(Vol. 1). Anthem Press.
Obschonka, M. and Stuetzer, M., 2017. Integrating psychological approaches to
entrepreneurship: the Entrepreneurial Personality System (EPS). Small Business Economics,
49(1), pp.203-231.
Parker, S.C., 2018. The economics of entrepreneurship. Cambridge University Press.
Pinkse, J. and Groot, K., 2015. Sustainable entrepreneurship and corporate political activity:
Overcoming market barriers in the clean energy sector. Entrepreneurship Theory and
Practice, 39(3), pp.633-654.
Piperopoulos, P. and Dimov, D., 2015. Burst bubbles or build steam? Entrepreneurship
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Rasmussen, E.S. and Tanev, S., 2015. The emergence of the lean global startup as a new type
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Schaper, M.T., Volery, T., Weber, P.C. and Gibson, B., 2014. Entrepreneurship and small
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Appendix
Slide 1
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Slide 2
22

Slide 3
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Slide 4
It is particularly said that the small enterprises have boosted the growth by incorporating
innovation by taking calculated risks. In addition, they encourage competition and fresh
ideas that could possibly challenge the status quo. It is found that big business house grows
almost half as much the small business can grow. Statistics have shown that last year United
Kingdom had over 5.5 million private sector businesses among which ninety-nine percent
was small and micro enterprises. In addition, over the past five years, the small and micro
enterprises have brought more than fifty percent of the external funding in the form of
business start-up loans, government loans and others. The Federal of Small Business (FSB)
believes that the small and micro enterprises holds the key for growth in United Kingdom.
24

Slide 5
The small companies take the risks for growing internationally, which the larger companies
scare to take and avoid risks. The small firms have several objectives, which differs from
those of large companies.
25

Slide 6
The government is therefore supporting the SMEs and start ups very much. The people
attitude towards also have changed as well. Almost 50% of the employees of private sector
now part of SMEs and start ups.
Other than economical growth there is also a lot of innovation that is happening in UK due
to SMEs and start ups.
Industries are now growing faster with the help of innovative technologies and services,
which are happening rapidly due to SMEs and start ups.
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Slide 7
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Slide 8
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Slide 9
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