Entrepreneurship: SMEs, Success Factors, and Economic Impact Report

This report provides a comprehensive analysis of entrepreneurship and small business management. It begins with an introduction to entrepreneurship, emphasizing its role in establishing businesses and maximizing profits. Part 1 focuses on the impact of micro and small businesses on the economy, using data and statistics to illustrate their contribution to employment, innovation, and GDP growth, particularly in the UK. The report also explores the importance of small businesses and startups for economic growth, including their role in reducing unemployment, fostering innovation, and providing opportunities for women. Part 2 delves into the characteristics, traits, and skills of successful entrepreneurs, using Kim Antoniou and Richard Blain as case studies. It examines their innovative approaches, feedback mechanisms, and leadership skills. The report also assesses the impact of personality traits, using the OCEAN model, on entrepreneurial motivation. Finally, it concludes with a discussion on how experience and background, including entrepreneurial education, economic circumstances, and culture, influence entrepreneurial success.

Entrepreneurship and
small business
management

Table of Contents
INTRODUCTION...........................................................................................................................4
PART 1............................................................................................................................................4
Covered in PPT.......................................................................................................................4
TASK 2............................................................................................................................................4
P3 Interpret and asses data & statistics for understanding impact in micro & small business on
economy.................................................................................................................................4
P4 Importance of small business & start ups for growth a economy.....................................7
M2 Evaluation of contribution made by SMEs and large businesses towards a economy....8
D2 Impact of small business on various levels of economy national, regional,, local &
international context...............................................................................................................8
PART 2............................................................................................................................................9
TASK 3............................................................................................................................................9
P5 Successful Entrepreneur and their respective traits & skills.............................................9
P6 Asses different aspects of personality of entrepreneur and its reflect on entrepreneurial
motivation.............................................................................................................................12
M3 Exploring of various arguments related to Characteristics of Entrepreneurs with respect to
a example. ............................................................................................................................13
D3 Analysing skills, Characteristic & motivational drivers for entrepreneurs ..................13
TASK 4..........................................................................................................................................14
P7 Experience and background of a person can effect entrepreneurship education, economic
circumstances, traits and culture...........................................................................................14
M4 Link between entrepreneurial traits and effect of cultural background in ambition of
becoming successful.............................................................................................................15
D4 Evaluation of positive & negative influence on entrepreneurs by various examples ....15
CONCLUSION..............................................................................................................................16
REFERNCE...................................................................................................................................17

INTRODUCTION
Entrepreneurship is a tool which can be used by entrepreneurs for establishing their own
business by undertaking of various risks for earning of profits. Entrepreneurs have a main aim to
maximize profits by bearing of all the risks. In every organisation there are various function
which have to be performed this includes collection of resources to produce quality goods &
services (Aldrich, , 2017). This includes differences & similarities between different
entrepreneurial ventures. This report is based on discussion of skills, characteristics and traits of
a successful entrepreneur. Lastly, there is a discussion on effect of experience of various
entrepreneurs on their success journey.
PART 1
Covered in PPT
TASK 2
P3 Interpret and asses data & statistics for understanding impact in micro & small business on
economy.
Micro & small business organisation have a major role in growth of a economy. These
are various business organisations that employ approx 50 employees or less than 50 employees.
Micro enterprises are mostly a sole proprietorship type of business or partnership firms. They are
responsible for creation of various business opportunities for people of a country.
Entrepreneurial ventures are responsible for maintenance of profitability and ensuring
sustainability in the market (Fatoki, 2019). Small and micro enterprises play a major part in
making a positive contribution towards economic development of a particular country. Various
economic issues can be solved because of emergence of such type of enterprises. Such as
unemployment problem, competition in the macro environment are various factors that are
related to economic growth of a country. This is major reason why government supports such
type of enterprises and also makes policies and programs for encouraging people to start these
type of ventures. Such business have a major contribution towards bringing if innovation and
creativity in a country.

Illustration 1: percentage of SMEs

From above mentioned graph it can be said that SMEs have a major contribution in UK's
development (Harris, 2019). There is a contribution of micro enterprise approximately 18.9%,
small enterprises have more contribution that is of 23.4% and medium enterprises have
approximately 30 percent. So, it can be said that maximum contribution is made by medium
enterprises and minimum by micro. But it can also be seen that such ventures provide lot of
employment opportunities, help in bringing innovation in the society. All such factors play a
very crucial role in increasing GDP of UK.
Illustration 2: Contribution of different size of business towards total
population, employment and turnover

From above graph it can be seen that there is presence of SMEs approximately 99% in
the industry sector. Sam ll business for 99.3% for private sector business since the starting of
year 2016 & there were approximate 99.9% were if small and medium sized business. Total
employment opportunities in SMEs were approximately 15.7 million that is total of 60% of the
private sector in UK. There is yearly turnover of 1.8 trillion (Frederick, Connor,. and Kuratko,
2018).
P4 Importance of small business & start ups for growth a economy
Small business contribute towards achievement of growth and development in a
economy. Importance of these business is discussed below:
Reduction of unemployment problems: Small and micro business contribute towards
development of a economy by enhancement of growth & innovation in a country. Small business
are willing to attract talented employees who are willing to work on a new or innovative idea.
Many large business organisation are attracting talent so that new process or new products can be
implemented to exiting ideas (Henry, Hill. and Leitch, 2017). Many times lager organisation are
depended on small business by outsourcing of various function with the help of outsourcing of
many activities.
Innovation: Small business are developing more patents in comparison with to large
business. The main reason behind this is in case of small Companies employees are having more
focus towards creation of new products or enhancement of exiting process.
Opportunities for Women: Small business are able to caret more opportunities for
women who are willing to work in a organisation. Majority of small business are started and
owned by female entrepreneurs. They do not posses adequate capital but have innovative idea.
They can make use of such ideas in
Contribution towards Government revenue: When there are small business it leads to
increase in revenue business are willing to pay higher amount of taxes. This money can further
be utilised for making developments in a economy of a country. Indirectly it is said that micro
and small business are doing significant contribution for economic development of a country.

Standard of living: Small business are playing a major role in increasing standard of
people. There are new ideas, concepts, innovative products which help in increasing the level of
comfort of employees (Honyenuga, , 2019).
M2 Evaluation of contribution made by SMEs and large businesses towards a economy
The overall contribution made by Small and micro enterprise & large business towards
economy is that it accounts for 99.96 percent of whole private sector business in the year 2016
and 99.9 percent was done by small- medium size business. There was total employment 15.7
million that is 60% of whole private sector employment in UK. There are 25-27 small business
which is providing 60-80 percent of total Jobs in UK (Jrungu, 2019).
D2 Impact of small business on various levels of economy national, regional,, local &
international context
Small business posses a positive effect on local, regional, national and international
context. From local point of view it can be said that small business help in creation of new
opportunities for people. From regional view point it can be said that small business leads to
increasing competition in market which is very necessary in a economy for encouraging
entrepreneurs to work towards implementation of new ideas to their existing business processes.
From point of nation SMEs help in enhancement of economic development in a country as there
is solving of many economic problems and issues which are prevailing in a country, increasing
of GDP growth. Government of UK is also supporting growth of such small and micro
enterprise as they are providing start-up loans and schemes that can encourage small
entrepreneurs.
PART 2
TASK 3
P5 Successful Entrepreneur and their respective traits & skills
Kim Antoniou: Kim Antoniou is one of famous entrepreneurs who owns a application
known as Kafoodle. Her venture is based on inspiration which she got from her husband being
resuscitated on a restaurant floor as he was provide wrong information regarding ingredients.

This venture was based on a motivation which she for from her personal experience (Top 30
inspiring UK entrepreneurs, 2019).
Richard Blain: Richard Blain is owner of Earth-i which is in private sector of UK. This
company is having constellation of satellites he is founder of aeroscope company. He is also a
licensed pilot (Terjesen, , Hessels. and Li, 2016). Apart from this he also owns a healthcare
company which is dealing in professional sports players.
There are some skills, traits and characteristics discussed below possess by these two
entrepreneur which has helped them in becoming successful :
Kim Antoniou Richard Blain
Traits  Innovation: The
innovative idea on
which entrepreneurial
venture of Kim
Antoniou are based on
are very different and
innovative from
already existing
concepts. This was the
main reason why
people were attracted
towards it. She decided
to educate people
regarding the food
products which people
are consuming in
restaurants .
 Feedback approach:
Kim Antoniou is an
entrepreneur who has
been involved in taking
regular feedbacks from
Innovation: Products &
services offered by Richard
Blain is very innovative and
different. He is a license pilot
and owner of healthcare
company and innovative
feature of this company is that
it deals in professional sports
players.

her viewers, if there is
a positive feedback
then it acts as a
motivation tool and of
feedback is negative
then the loopholes can
be directed.
skills Motivator: Kim Antoniou is a
entrepreneur who has
successfully able to manage an
motivate their overall
workforce. This has appeared
as a major contribution
towards success of this
entrepreneur.
Focussed: Richard Blain is a
great entrepreneur and skills of
having a strong focus has
played a role in laying
emphasis on a single goal.
There are many responsibilities
of a entrepreneur as he is the
sole person responsible for
managing all the working and
operations of a venture.
Characteristics Strong communicator: It is a
very important requirement for
a entrepreneur to possess
influential communication
skills. Kim Antoniou is a
entrepreneur who has this skill
which she used in her
application to educate her
users and this is major role in
enhancement of probability of
success of a entrepreneur.
Leadership : Richard Blain
has a very strong leadership
skills that is helping in
achievement of various
business objectives and
moulding the performance of
various subordinates. Skills
and traits of leaders is very
helpful in achievement of
organisational objectives.
Difference between Manager & Entrepreneur
Manager Entrepreneur

Focus Focus of a manager is ensure
that all business functions and
operation are taking place in a
smooth manner without any
disruptions (JOSEPH and
SHASHIKALA, 2020).
Focus of a entrepreneur is on
creation of a innovative
venture so that there is
achievement of objectives
apart from monetary profits
there are some other benefits
also which have to be achieved
by entrepreneurs.
Main objective Managers of a business pay
importance towards
achievement of end objectives
Entrepreneurs have to focus on
all aspects of business and how
will the ned objectives will be
achieved in the given course of
time.

P6 Asses different aspects of personality of entrepreneur and its reflect on entrepreneurial
motivation
There are various aspects of personality of a entrepreneur that has a impact on
entrepreneurial motivation and developing their mindset (Julien, 2018). Some of the aspects of
personality of Richard Blain and Kim Antoniou can be discussed below with the help of
OCEAN model:
OCEAN model
It is a five factor model commonly known as five personality traits. This is helpful in
analysing different personality traits of individual. There are five personality traits in this model
are discussed below:
 Openness: This trait is related to various characteristics like insight and imagination.
People who posses this trait have broad interest. They are very curious of learning new
things. They have openness of trying new things and facing all challenges (Kuratko,
2016).
 Conscientiousness: There are certain features such as high thoughtfulness, impulse
control and behaviour that is goal directed. In case of Kim Antoniou she is a entrepreneur
who has focussed on small details and this has made her different from others
(Harrison,Leitch and McAdam, , 2019). Similarly Richard Blain has focussed on their
behaviour as he believed that the way in which entrepreneur is behaving has a major
impact on employees and whole organisation.
 Extraversion: This trait is related to various characteristics such as sociability,
excitability, assertiveness. People with this trait are very outgoing and they are high in
energy (Lucy, 2019). This trait is present in both Richard Blain and Kim Antoniou the
high energy level creates enthusiasm which leads to smooth functioning of all business
functions and achievement of organisational objectives.
 Agreeableness: This dimension of ones personality includes some attributes like
altruism, kindness, affection and pro social behaviour. People with high agreeableness are
cooperative and at same time competitive. Richard Blain is an entrepreneur who holds
company reproducing high resolution images & videos and this organisation is
competitive enough so that they are able to survive in the high competition.