Entrepreneurship and Small Business Management

This report discusses the impact of micro and small businesses on the economy, the importance of small businesses in social economy growth, characteristics and skills of successful entrepreneurs, and the role of background and experience in fostering entrepreneurship.

9: Entrepreneurship
and Small Business
Management

Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
TASK 2.......................................................................................................................................................3
P3 Interpretation of statistics for showing impact of micro and small business on the economy.............3
P4. Importance of small businesses and business starts-ups in growth of social economy......................5
TASK 3.......................................................................................................................................................6
P5 Characteristics, skills and traits of successful entrepreneurs...............................................................6
P6 Aspects of the entrepreneurial aspects personality reflect entrepreneurial motivation........................7
TASK 4.......................................................................................................................................................8
P7 Background and experience can hinder or foster entrepreneurship.....................................................8
CONCLUSION...........................................................................................................................................9
REFERENCES..........................................................................................................................................10

INTRODUCTION
The Entrepreneurs are the one that are involved in the new idea and innovation that is
shaped by him/her. The ideas are turned into reality so that the demand of the market is satisfied.
They are considered as the back bone of the economy as they are involved in the generation of
maximum revenues and job opportunities for all so that their standard of living is raised. They
are initially involved setting the small or medium sized enterprise and then through their hard
work makes the business grow and survive in the high competition (Singh and Gaur, 2018). This
report shall cover the kinds of ventures and its link with entrepreneurial typology, the similarity
and difference between the two, impact of small and micro business on the economy using
statistic and importance of growth of this business on social economy. Further it will cover the
traits, skills and characteristics of entrepreneurs, how their personality reflects motivation and
background and experience of entrepreneurs.
TASK 1
Covered in PPT
TASK 2
P3 Interpretation of statistics for showing impact of micro and small business on the economy
The businesses plays an essential role in developing the country as they contribute to the
economy by selling their offering to customers and generating job opportunities and revenues so
that the country can develop its schools, infrastructure, etc. there is a huge impact on economy of
country wherein the business operates. The different types of businesses are-
 Small- These are such organizations that employee less than 50 employees and have a
annual turnover of £5 million. They generate revenues and job opportunities in the
economy but at low level.
 Medium- These types of businesses are engaged in employing more than 50 employees
but less than 250 employees and are engaged in generating revenues of £5 million but

less than £22 million. They offer high employment to people and satisfy the demand of
consumers by generating huge profits.
 Large- These kinds of companies works at high level with more than two hundered and
fifty employees and has annual turnover of more than £2.2 trillion. These places heavy
impact on the economic development as they offer huge job opportunities to many people
as they operates at global and national level (Mupfasoni, Kessler and Lans, 2018).
Figure 1 Role of SMEs in UK, 2020
Impact of small and micro businesses on economy
 Local impact- The SME firms impacts the local economic environment of country
directly as they provide goods and services to the people so that their wants are fulfilled.
These are formed after analysis of wants and needs of people. With this analysis, the
company determines its purchasing power to provide the products. It provides job
opportunity to the people so their living standard is improved which in turn assist in
development of local economy.
 Regional impact- Small and micro enterprises also impacts the economy of regional level
as it offers employment to the people living in that region by preventing the
unemployment issues of that area. It positively impacts the economy as there is high rate

of employment which helps in expansion of business operations because of talented and
sufficient workforce.
 National impact- It impacts the economy at the national impact as perform its operations
by using less money. They are focused on the innovation and innovative ideas so that
their productivity and profitability of company. Their profits assist in government’s
revenue generation. Approximately around 16 million people are having jobs by SME in
economy of UK that has positive impact on UK development (Kraus and et. al., 2018).
P4. Importance of small businesses and business starts-ups in growth of social economy.
Gross domestic product of the country gets better development and growth by taking
support from the SMEs and new startups. It generates hue job opportunities and revenues so that
positive impact can be made on the growth of GDP. In United Kingdom, there are many small
businesses that impact to the growth of GDP and because of this, the UK government provides
adequate support to small enterprises by meeting their financial requirements and also provides
flexible procedure for the registration. Its importance in economy is discussed below-
 Economic growth- The small businesses generates large income by providing quality
offering to the customers but at reasonable rates. This makes them capable of paying
taxes to government that result in increased financial health of the country. This
motivates other entrepreneurs to initiate their own business so that more profit is
generated and economic growth is availed.
 Job creation- The small businesses contributes in creation of employment opportunities
as they have requirement of workers which supports local people indirectly in order to
increase their standard of living.
Improved standard of living- The Small business and start-ups provides maximum contribution
to the improvement of living standard by meeting the requirements and needs of people. Income
opportunity is provided to support livelihood which in turn enhances living standard (Jones,
Maas and Pittaway, 2017).

TASK 3
P5 Characteristics, skills and traits of successful entrepreneurs.
There are many entrepreneurs in UK that have their unique characteristics, traits and
skills which makes the ordinary person as a successful entrepreneur. Two entrepreneurs are
being discussed who has achieved huge success and growth in their career because of their
attributes and skills. This also makes them different from the business managers. The traits, skills
and characteristics of entrepreneur is illustrated below-
Characteristics-
 Hard work and self- belief- It is one of the most essential characteristic of entrepreneur
which helps it to perform its work effectively. This attribute has helped both Tom Mercer
and Elizabeth Gooch in carrying on their work as they have self confidence that assist
them in making appropriate decisions for the growth and success of business.
 Passion- This characteristic helps the entrepreneur to continue their work without any
bareness and issue. Both Elizabeth and Tom Mercer have passion to do something which
makes them focused towards their work on daily basis (Morris, 2021).
Skills
 Leadership- It is an essential skill as it assists in leading the team towards the pre-
determined goals. Tom Mercer and Elizabeth Gooch both has this skill which the help of
which they both helped and supported the people and guided them to accomplish the
organizational goals. This skill is not present in manager as managers only allot work but
leader provides roadmap to complete the work.
 Innovative thinking- This skill helps in bringing innovative idea in order to solve
complex business issues. With the help of this skill, Tom Mercer and Elizabeth Gooch
both resolved the complex problem of society through their offering. Manager does not
have this skill rather it only ask for solution rather bringing solution.
Trait
 Disciplined- It is very important to have discipline in order to ensure success as it helps
entrepreneurs to have balance between the professional and personal life. This trait is

present in both Tom Mercer and Elizabeth Gooch which makes them focused on their
goals without being distracted.
 Confident- It is an important trait in order to make better decisions so that there is no
negative outcome out of it. Both Elizabeth and Tom Mercer are confident enough with
their ideas, decision and working which make them successful in their careers (Ferreira,
Fernandes and Kraus, 2019).
P6 Aspects of the entrepreneurial aspects personality reflect entrepreneurial motivation
The entrepreneurs had many traits, characteristics and skills which makes them different
from managers. These factors help in representing the entrepreneurial mindset and motivation as
well. It directly affect the motivation as well as the mindset of entrepreneur. OCEAN model is
being used to reflect the mindset and motivation of entrepreneurs. The 5 aspects of this are
enumerated below-
 Openness- It is associated with adventure, emotion and idea. It reflects creativity ad
curiosity which helps entrepreneurs in making better decisions and helps them in learning
new things.
 Conscientiousness- It is linked with reliability and flexibility. It provides that the
entrepreneurs must stay focused on their targets rather than getting involved in other
unproductive activities so that they can achieve their goals effectively.
 Extroversion- It provides that entrepreneurs must stay assertive, energetic social and
talkative so that they can influence others. This helps in maintaining good relations with
staff thereby resulting in staff retention.
 Agreeableness- It provides an entrepreneur to remain trustworthy and cooperative so that
they can coordinate with workers. It helps in building trust which makes healthy
relations.
 Neuroticism- It is linked with fear, anxiety, jealousy, envy and frustration where
entrepreneurs may react negatively on situations. It must prevent these elements and treat
all workers equally (Dabić and et. al., 2020).

TASK 4
P7 Background and experience can hinder or foster entrepreneurship.
The entrepreneurs earn profit by selling goods or services to customers and their
background and experience helps it to get more involved in working that can guide towards
success.
Tom Mercer
Background- Tom Mercer has done graduation from Cambridge University and has the
experience in working in Bain & Co. as management consultant. While working with various
companies, it thought of starting something of its own and he began to observe that human
beings has many choices for dinner and lunch but there are limited option for the breakfast so
had an idea of starting the business in the year 2006 by blending healthy drinks that included
smoothies and oats.
Experience- Tom had an experience of working as the city working so he knows the
struggle of people who cannot get healthy breakfast. He was late for his work often and just gets
involved in thinking about new ideas. At the time of beginning, he cuts the fruits itself at night
and keeps it in bottles and sold them at railway station in order to know demand of people.
Elizabeth Gooch
Background- She began working in HSBC Bank in their teenage and after one year left
the job and switched to consultancy firm. Soon she left that job began to collect funds and started
her own business with £1,000. She began giving consultancy and training services to the
financial companies about their operations management. She recruited Rodney baker Bate’s
CEO as chairman of her company.
Experience- Initially, she faced many problems like lack of support from friends and
family, lack of money, etc. But she managed to handle it. Her father also told her o get a job.
Later she recruited the CEO of Rodney Baker Bates who advised her to develop the software
instead of providing consultancy service. She faced potential loss in 2008 and 2007 but she
managed to overcome loss and gained profit in future.

CONCLUSION
It is concluded from the above report that entrepreneurs are the one who convert their
idea into reality and earn maximum profits. There are different types of ventures such a large,
small and social which are linked to entrepreneurial typology. The SMEs help in uplifting the
economy as it offers revenue and job opportunities to the economy. The entrepreneurs have
many skills, traits and characteristics which makes them distinguishable from managers.

REFERENCES
Books and Journals
Singh, S.K. and Gaur, S.S., 2018. Entrepreneurship and innovation management in emerging
economies. Management Decision.
Mupfasoni, B., Kessler, A. and Lans, T., 2018. Sustainable agricultural entrepreneurship in
Burundi: drivers and outcomes. Journal of Small Business and Enterprise Development.
Kraus, S., and et. al., 2018. Digital entrepreneurship: a research agenda on new business models
for the twenty-first century. International Journal of Entrepreneurial Behavior & Research.
Jones, P., Maas, G. and Pittaway, L., 2017. New perspectives on entrepreneurship education.
In Entrepreneurship Education. Emerald Publishing Limited.
Morris, M.H., 2021. Poverty and entrepreneurship in developed economies. In World
Encyclopedia of Entrepreneurship. Edward Elgar Publishing.
Ferreira, J.J., Fernandes, C.I. and Kraus, S., 2019. Entrepreneurship research: mapping
intellectual structures and research trends. Review of Managerial Science. 13(1). pp.181-205.
Dabić, M., and et. al., 2020. Immigrant entrepreneurship: A review and research agenda. Journal
of Business Research. 113. pp.25-38.