Impact of Entrepreneurship on Social Economy

This report discusses the impact of entrepreneurship on social economy, including the statistics showing the impact of small and medium-sized enterprises (SMEs) on the economy. It also explores the characteristics and skills of successful entrepreneurs and the importance of small businesses in economic growth. The report concludes with an analysis of how background and experience can hinder or foster entrepreneurship.

ENTREPRENEURSHIP
AND SMALL
BUSINESS
MANAGEMENT

Contents
INTRODUCTION...........................................................................................................................4
Task 1...............................................................................................................................................5
Task 2.............................................................................................................................................18
P3 Interpretation of statistics for showing impact of micro and small business on the economy
..............................................................................................................................................18
P4 Importance of small businesses and business starts-ups in growth of social economy. .20
Task 3.............................................................................................................................................22
P5 Characteristic, traits and skills of successful entrepreneurs............................................22
P6 Aspects of the entrepreneurial aspects personality reflect entrepreneurial motivation...24
Task 4.............................................................................................................................................25
P7 Background and experience can hinder or foster entrepreneurship................................25
Conclusion.....................................................................................................................................27
References......................................................................................................................................28

INTRODUCTION
Entrepreneurs are the one who have an aim to do something new which can be easily
acceptable by the people in a less time span. It creates competition in the market which good and
better influence upon the lifestyles of people due to having options to generate income and spend
rationally. The current report is upon the topic of entrepreneurship and its wider impact on social
economy. In addition with this, types of ventures and its linkage with different typologies are
also discussed under this report. The report also describes skills, traits and characteristics that an
individual must have to become an entrepreneur. Two successful entrepreneurs are also taken
into consideration with their respective backgrounds and experiences.
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Task 1
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Task 2
P3 Statistics which shows the impact of SME’s in an economy
The organization firms have a much vital portion to play into the growth and up gradation
of any country. These businesses contributes into the growth by building up the required
infrastructure, technology, changes into amenities and facilities and so on. These businesses
bring growth and prosperity into any economy. There are in total 3 types of business into the
business market which are as below:
Small: In such kind of organisation, there are about 1-49 employees working into the
organisation who helped the organisation into the attainment of their goals and objectives which
they have set for themselves. The revenue generated by these small-scale industries is less than
$5 million. Though the revenue generated by these companies are low and that’s why the
contribution done by these businesses is comparatively less (Barringer, 2015).
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Medium: In this kind of organisation the employees which are working into the
organisation is more than 50 and the maximum employees can be 250. The revenue generated by
this business is between $5 million and less than $ 22 Million. Such business put up to the
upgradation of nation’s economy as they generates the quite higher income comparatively to
small scale industries (Baum, Frese and Baron, 2014).
Large: These organisations are the major employer for the economy as they hire huge
number of employees. The minimum number of employees which is been hired by these
company is more than 250. And these companies usually generates a profit which is more than
$22 m. These organisations operates in a huge amount and they gives the work opportunities to a
large group of people.
Influence of Small and medium Scale businesses on nation
Local impact: these SME’s firms straightforwardly sway the nearby economy as they
gives their items and administrations to the neighbourhood people to fulfil their needs and wants
requirements. Such type of firms framed in the wake of dissecting the urgency and desires of the
people. From this research, businesses can ascertain their purchasing power so to provide the
products as needs be. These businesses likewise give opening for work to individuals with the
goal that they can gain cash for improving their each day assumptions comforts and way of life
which will likewise aid the improvement of nearby economy.
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(Source: The Role of Startups and Small Businesses in Today’s Economy, 2018)
Regional impact: These businesses gives work opportunities to the individuals of
regional economy. These businesses help the economy in eliminating the poverty into their
economy by providing the people with employments. These businesses have the good and
significant impact upon the economy as they help the economy in generating the employment
rates which also helps the people in increasing their living standards. Apart from this they also
contributes into the income generation for the economy (Carsrud and Brännback, 2011).
National impact: These SME have the positive impact upon the nation as they help the
economy 8in building up the infrastructure, schools, technologies advancements, innovative and
creative products and services which ultimately helps into the growth and prosperity of the
nation. They also help in generating the national income which is a good for the growth of
economy. These businesses also help the nation in increasing the living standards of the people.
According to a survey SME employees more than 15.7 million people in UK country which
shows a positive impact of SME’s.
P4 Advantages of SME’s nation economy
Country’s GDP gets huge up gradation and improvement by receiving commitment
through small business ventures and just started businesses. Such small organizations creates
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Illustration 1: Influence of small and medium scale businesses

gigantic work open doors just as incomes which has constructive outcome on development of
country’s GDP. In united Kingdom, there are enormous percentage of small firms endeavors
which influence development of economy. Because of this, the legislature of UK likewise offers
a sufficient help to the these small endeavors as far as meeting their money related prerequisites
just as give unwinding in enlistment procedure. This is the locus which depicts the significance
of small undertakings for the up gradation of economy:
Job Creation: these latest and minute business generates employment jobs onto the
economy and that to in large amount, due to this the local and regional people gets help. Also
this enables the people to explore more into the area where they have more interest and forte.
Providing the goods and services at a prices which are reasonable to the people increases the
competition among the market which ultimately benefits the people or the consumers (Choi and
Majumdar, 2014).
Improve living standard: Small organizations and new businesses gives top level
augmentation to the increasement of life of individuals by addressing their necessities and
prerequisites inside their reasonable financial plan. Giving them chance to gain salary for their
own job additionally bolsters in upgrading their way of life.
Economic growth: The businesses which are small in nature or are start ups produces huge
amount of revenue each year. They also provides the goods and services of good quality and that
too at affordable prices. They are capable enough for paying the taxes to the government builds
the infrastructure and facilities for public through the amount which it receives as a tax. Tax
helps the economy in building up a strong financial economy. These things generates the
motivation in other entrepreneurs also for starting their own businesses so that they also can
generates more profits for themselves (Dees, 2017).
Above mentioned paragraphs, it came to realize that commitment of small organizations
and new businesses for the up gradation of a country are most extreme by giving creative
thoughts and wellsprings of livelihoods to the individuals which in results expanding their way
of life. Making business chances to the people groups makes them increasingly competent to
address their issues and prerequisites.
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Task 3
P5 Behavioural traits and skills that in inculcated into an entrepreneur
There are plenty of entrepreneurs in united Kingdom who have unique and different skills,
features , knowledge, thinking ability and so on which is very much extra ordinary from normal
people. And possessing of these skills is very much necessary to become a successful
entrepreneur. They say that these entrepreneurs can achieve huge into their lives due to the
unique skills they possessed with themselves for becoming successful. The skills and
characteristics which they possess makes them different from managers (Fassin, Van Rossem
and Buelens, 2011). Thus, it can refer that an individual can be a successful entrepreneur when
they possess the skills and characteristics which is much more different from any ordinary
person. Some of these skills or traits are as follows:
Features Passion: passion is the primitive attribute of business visionaries through so that they can
continue their task or business with zero problems or weariness. Through this trademark,
the two business visionaries for example Elizabeth Gooch and Tom Mercer can take as an
great example as they both has acquired too much and perfectly ideal ordinary objective
for achieving the ideal goal of the business. This trademark separate these guys from
organization supervisors as administrators looses their understanding while at the same
time working because of which they couldn't take the best possible way. . Self belief and hard work: This is likewise a basic trademark through which the business
people can play out their work viably. This trademark help both of the business
visionaries for example Elizabeth Gooch and Tom Mercer has achieve their goals and
objectives because they had a believe in themselves. They had a fire in themselves which
taught them to not to give up and to believe in themselves. They knew that their goals ad
objectives ca only be achieved through mere hard work. (Grégoire, Corbett and
McMullen, 2011).
Skills Innovative thinking: These aptitudes are significant for the business visionaries with the
goal that they can enhance new thoughts for settling the issues of work environment.
Through these aptitudes, both Elizabeth Gooch and Tom Mercer got fruitful as they
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settled their issues which emerges in their working and conquer them for getting the ideal
achievement in a compelling way.
 Leadership: leadership is a degree to lead and influence the individuals or a group to
proceed into a certain direction. They are the people who forms the vision and mission
for the organization. In the case for both Tom ad Elizabeth, they both had these qualities
and the ability to influence the others so well that they follows the path which you have
seen or decided.
Traits
 Confident: it is a vital characteristic which must in build in business people so as
for making good choices because of the accomplishment of their endeavour. Both of the
Elizabeth Gooch and Tom Mercer were very much confident for their ideas and
objectives. They had a confidence and courage into their steps and action which they
have planned and are taking into their lives.
 Disciplined: It is additionally essential for business people for the achievement of
their endeavor as through this, they can keep up equality among their own and expert life.
This quality additionally exist in Elizabeth Gooch and Tom Mercer because of which
they remain concentrated on their objectives without getting diverted from different
things (Kiss, Danis and Cavusgil, 2012).
 Passion: It is a fundamental characteristic of business visionaries through which
they can continue without any problems or errors. Through this trademark, the two
business visionaries for instance Elizabeth Gooch and Tom Mercer can focus on their
work on standard purpose behind achieving their optimal target s and destinations. This
trademark separate them from business directors as chiefs looses their comprehension
while simultaneously working in view of which they couldn't take the right decision
(Martin, McNally and Kay, 2013). Self conviction and difficult work: This is moreover a basic trademark through which the
business people can play out their work feasibly. This trademark help both of the
business visionaries for instance Elizabeth Gooch and Tom Mercer continues their work
as they have courage and self confidence, furthermore help them in taking authentic
decisions for the accomplishment and advancement of their associations. This will isolate
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the business visionaries from other administrator in view of having devoted qualities and
self confidence in their decisions.
P6 Personality reflect of entrepreneurs and their aspects for motivation
Entrepreneurs have various trademark, characteristic and abilities which separate them
from the others or administrators. These variables likewise speak to the enterprising inspiration
and mentality also. These variables straightforwardly sway the inspiration and mentality of
entrepreneurs because of which they couldn't get fruitful. OCEAN model can be utilized for
mirroring the pioneering inspiration and outlook. The OCEAN model has 5 factors as examined
beneath: Openness: this is the trait which entails about how and at what degree the person
is open and broad with respect to his thoughts and ideas. More welcoming the person would be
regarding his thoughts and feeling regarding any topic more expressive and understandable it
would be. Openness is very much crucial for the entrepreneur as more open would, more clear
his followers can understand him. (Aspects of Entrepreneurial personality, 2017).
Conscientiousness: This factor states that the entrepreneur should be very much
confident and focus upon his goals and objectives. He should be motivated and very much
mentally available regarding his work or business as it does required a lot of hard work and
conscientiousness.
Extroversion: This factor states that the person should be expressive and must be social
that he listens and speaks with the people. The more expressive he will be to the people, the more
people would understand his ideas and objectives which he has in his mind in relation to the
work .
Agreeableness: the person should have the ability to listen to other also and should be
very much adaptive to the other people opinions. He should not consider other people’s ideas as
dumb and not acceptable. He must listen to everybody and should take the decision accordingly.
Neuroticism: They say that huge power comes with the great responsibility. And
responsibility creates stress, confusions, headaches, over burden and all. The entrepreneur has it
all, he should be able to deal with all such factors. He should have that courage and mind to
handle all such to take its business at a new heights. (Scarborough, 2016).
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Task 4
P7 Factors that can damage the entrepreneurship
Business people maintains their organization for gaining benefit by giving their items and
administration to the clients. The background and education of Business people encourages them
in getting increasingly engaged with the work which controls their organization towards the
achievement. The experience and foundation of the Elizabeth Gooch and Tom Mercer which
empowered them to become effective are as per the following:
Elizabeth Gooch
Background: Elizabeth began working at the HSBC bank at 18 years old and later
following one year, she left the activity and began job in an advisory firm. Before long, she
leaves that organization and assembled modest quantity of cash from the loved ones. She
gathered £1,000 from the loved ones for beginning her own organization. Through the
organization, she began giving consultancy and preparing for money services organizations with
respect to the activities the board. She needs abilities for social occasion the necessary data for
improving the efficiency and profitability of organization so she turned her business into a
software company. She reached Rodney Baker-Bates, CEO of Prudential Financial Services and
enlisted him as the director of the organization. Later she additionally float the organization in
the market for interest so as to pull in more financial specialists.
Experience: She began her business however at the same time confronted a few issues,
for example, absence of assets, support from loved ones and so on. She figured out how to deal
with such issues and decided for the development of her business. Her dad additionally advised
her to find a decent line of work as opposed to maintaining her own business. Afterward, she met
with Rodney Baker-Bates who gave his plans to her in regards to the advancement of software as
opposed to giving consultancy services. She likewise pulled in potential financial specialists for
her business however confronted misfortune in the year 2007 and 2008. Nonetheless, she figured
out how to conquer the misfortune and in further years, she picked up profit once more.
Tom Mercer
Background: He was a pass out from the Cambridge University. He was a consultant in
the company called bain and Co which is located at London. During working in many company
and with many business he inculcates many ideas which he considers very innovative and new
for doing a business. He observed properly that there is a not so huge alternative available
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morning and lunch. He introduced his own business in 2006 by mixing the good and healthy
drinks which combines of oats and smoothies. His business took a great speed and he successful
had employed.
Experience: he also faced and experience many difficulty in his business. He used to
went to railway stations and to metro where he analyse and survey about the taste and
preferences of customers so that he can provide such products to them to cater their needs. He
also used to cut the fruits at night by himself and prepares the drinks and smoothies at morning
for the customers by himself.
By the experience or say foundation, both the people stated above got fruitful into the
work and defeat the issues and disappointments so as to remain concentrated on the development
and advancement of an organization. Because of their constant center, they accomplished ideal
outcomes for the achievement and development of their business in the market. Both of the
business visionaries confronted different issues for a mind-blowing duration and gained through
such problems so as to determine these problems in the near future timespan.
Conclusion
The report which is presented above mentioned about the types of business venture, some
of them are small, medium, large and social and so on. The traits and characteristics which are
must for a business man to have has also mentioned, some them includes empathic, confident,
self value, leadership skills and so on. The report also includes the influence of small and
medium enterprises into a nation some of them are as increase in lifestyle, income, disposable
income and etc.
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