Impact of Small Businesses: Entrepreneurship Management Report

This report delves into the multifaceted world of entrepreneurship and small business management. It begins with an introduction to entrepreneurship, highlighting its practices and the associated risks. The report then analyzes the impact of micro and small businesses on the UK economy, using statistical data to illustrate their contribution to employment and turnover. Furthermore, it explores the importance of small businesses and start-ups in fostering the growth of the social economy, emphasizing their role in enhancing living standards, driving economic development, and contributing to local government through taxes. The report also identifies the characteristic traits and skills of successful entrepreneurs, differentiating them from other business professionals by examining the attributes of Anthony Rose and Mark Pearson. The report concludes with a summary of the key findings, providing a comprehensive overview of the subject matter.

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT.......................................................................................................................1
TASK 2............................................................................................................................................1
P3 Interpret and assess relevant data and statistic to illustrate the impact of micro and small
business have on the economy...............................................................................................1
P4 Explain the importance that small businesses and business start-ups on the growth of the
social economy.......................................................................................................................3
TASK 3............................................................................................................................................5
P5: Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business........................................................................................................5
P6. Entrepreneurial motivation and mindset..........................................................................6
TASK 4............................................................................................................................................7
P7. Examination of how background and experience can hinder or foster entrepreneurship 7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

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INTRODUCTION
Entrepreneurship is considered as an integration of practices as well as procedures which
are considered through a person for managing and operating its own business concern.
Moreover, Ttheise practices are needed to be performed effectively as some risks are involved
for generating high profitability from that enterprise. This report covers illustration as well as
description of range of ventures types. MoreoverAlso, evaluation of small business impact upon
economy and determination of entrepreneurial mind set key aspects are described in this report.
Apart from this, analysis of various environments which hinder or foster entrepreneurship is also
discussed in this report.
TASK 1
Covered in PPT
TASK 2
P3 Interpret and assess relevant data and statistic to illustrate the impact of micro and small
business have on the economy.
A micro business is an organisation with very less number of employees. It is a kind of
business that operates its activities at a small scale (Cornwall, Vang and Hartman, 2019). It
consists of nine or very fewer staff members. Organisations with overall annual sales or assets
for less than $250,000 per years tends to have a micro business. According to a study, there are
around 5.9 million private sector business in United Kingdom out of which around 5.82 million
are comprises of small business (STATISTICAL RELEASE, 2019). Micro business plays a crucial
role in stimulating economic growth of the country by providing opportunities to people who are
not employed. Total number of business in UK private sector along with their associated
turnover and employees is discussed here.
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(Source: STATISTICAL RELEASE, 2019)
Interpretation: According to the above data it can be estimated that UK consist of about
5,867,770 business in total which has a major impact on overall economy. Out of which SMEs
consist of three fifth of the employment and around half of turnover rate in UK sector (Davies,
Haugh and Chambers, 2019). Total number of SMEs was found to be 5,860,085 in the year
2019. Turnover rate was estimated around 2,168,005. Employment in small business was found
to be 13,157 and turnover rate was 1,528,684. Medium sized business employment was
estimated to be 16,630 with a turnover rate of 2,168,005.
Thus, it can be interpretation that SMEs plays an important role in the economy of United
Kingdom as it dominates around three fifth of the total number of business. Contribution of
different business of different sizes to total number of population, employment and turnover in
the year 2019 is discussed here.
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Illustration 1: STATISTICAL RELEASE, 2019

Interpretation: According to the above graph, it can be estimated that percentage of
small business is 99.3 in the initial year of 2019. Overall employment of SMEs was about 15.7
million which 60% of the whole jobs in private sector of UK. Annual turnover of small and
medium sized business is 36.8% and 15.4% respectively.
Thus, it can be analysed that small and micro business of UK owns a large area of market
share. Small business contribute to economy of the country by means of three prime ways such
as they give an opportunity to individuals who are looking for a job and thus make them
financially stable. It create number of employment opportunities for the citizens of the United
Kingdom so that overall economical rate can be maintained properly and helps the country to
eliminate the ratio of unemployment (Donckels and Miettinen, 2019). Small size companies can
provide goods, services and jobs to the country in an effective manner. The rapid growth of small
and micro business organisations has a direct impcatimpact on economy of United Kingdom.
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