Entrepreneurship & SME Management: Skills, Traits, and Impact

This report provides a detailed analysis of entrepreneurship and small business management, examining different types of entrepreneurial ventures, including small business entrepreneurship, scalable startup entrepreneurship, large company entrepreneurship, and social entrepreneurship. It highlights the similarities and differences between these ventures, focusing on objectives, risk, and workforce size. The report also assesses the scope, development, and growth of entrepreneurial ventures, emphasizing the impact of small, medium, and large-sized businesses on the UK economy, particularly the significance of SMEs to socio-economic growth. Furthermore, it identifies key skills and traits of successful entrepreneurs, such as ambition, willingness to learn, creativity, and risk-taking, and explores how background and experience can either hinder or foster entrepreneurship. The report concludes that entrepreneurs play a vital role in driving economic growth and innovation, with SMEs making a significant contribution to the UK's socio-economic development. Desklib provides access to this and other solved assignments for students.

ENTREPRENEURSHIP AND SMALL
BUSINESS MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION.......................................................................................................................................3
Entrepreneurial ventures and connection to typology of entrepreneurship..................................................3
Similarity and difference between entrepreneurship ventures.....................................................................4
Impact of small, medium and large size business firms on economy of nation...........................................5
Significance of SME to growth of socio economy in nation........................................................................7
Skills and traits of successful entrepreneurs................................................................................................7
Aspects of the entrepreneurial personality reflect entrepreneurial motivation and mindset.........................8
Way in which background and experience can hinder or foster entrepreneurship and link of characteristics
to background as well as experience............................................................................................................9
CONCLUSION...........................................................................................................................................9
REFERENCES..........................................................................................................................................10
Figure 1Number of business firms from 2000 to 2018................................................................................6
Figure 2 SME numbers and employment in 2018........................................................................................6

INTRODUCTION
Entrepreneurship is the common topic on which lots of articles are written in newspapers
and detail discussion is carried by experts. In the current report different type of entrepreneurial
ventures are discussed in detail. Apart from this, skills that entrepreneurs possess are also
explained briefly. Specific entrepreneur is selected and reason behind its success is explained. At
end of the report, it is identified whether family background and experience foster or hinder
entrepreneurial growth in the nation.
Entrepreneurial ventures and connection to typology of entrepreneurship
There is different type of entrepreneurial ventures and same are explained below.
 Small business entrepreneurship: These are newly opened business firms which have
very small number of employees. Firm may be based on innovative or old business idea.
Usually, in such kind of venture profit is low and company aimed at developing its
products and services so that profitability can be increased in the business. Thus, it can be
said that in such kind of business threats are very high.
 Scalable startup entrepreneurship: This type of business firms have some innovative
business ideas and seek investment from venture capital firms. These firms main focus is
one adding more and more new features to their products and services (Sallehudin,
Razak and Ismail, 2015). Risk of failure is much higher in such kind of business because
people are not aware about company business idea. In case mistake made in
implementation of business plan then in that heavy loss can be faced in business.
 Large company entrepreneurship: Large business firms are normally MNC and believe
in technology innovation. Such kind of business firms makes heavy investment in
research and development project’s and develop in-house technology infrastructure. Such
kind of efforts helps these firms in increasing their business operations across the globe at
fast pace.
 Social entrepreneurship: These sort of firms develop product and services which make
people life easier. In other words, it can be said that people faced some problem in day to

day life. Such kind of problems is solved by social entrepreneurship firm’s products and
services.
Similarity and difference between entrepreneurship ventures
There are lots of similarity and difference between above given entrepreneurship ventures
which is discussed below.
Factors Small business
entrepreneurship
Scalable startup Large company Social business
Objectives There is absence
of specific
objectives. Main
target is to cover
cost in the
business and earn
medium amount
of profit.
Main aim is to
make available
innovative
products and
services to the
customers.
These firms
aimed at
increasing firm
operations across
globe and
focusing on
innovating
technology
infrastructure.
Main focus is on
developing
products and
services that
solve people
problems.
Risk Risk is low
because very
high price
fluctuation not
happened.
Risk is high
because heavy
investment is
made in R&D. In
case project
failed investment
may be locked
(Sener and
Hacioglu, 2017).
Risk is low
because company
have established
brand name it
managed to earn
sufficient profit
in the business.
Risk is low as
firms received
support from
government.
Workforce size Workforce may
be of size of 100.
Workforce size
depends on
company size.
Large workforce
is employed in
the business.
Size of business
determines
workforce size.

Entrepreneurship in both public and private sector
 Public sector: In public sector role of entrepreneur is performed government. It makes
heavy investment in the business in order to ensure long term survival of the business and
to ensure well being of people.
 Corporate sector: In case of corporate sector business owner or Board of Directors
prepare plan in respect to business expansion and investment in the business. Thus, both
sort of entrepreneurship are different from each other.
Examining scope, development and growth of entrepreneurial ventures
As per views of Eze and Gladys, (2016) entrepreneurial ventures are increasing at rapid
pace across the nation. There are different sort of entrepreneur ventures and their objectives are
also different from each other. However, firms need to develop products in such a way that can
meet needs of the general public. All these things will lead to increase in scope and business
development.
According to Akpoviroro, and Amos, (2018) entrepreneur ventures must make an effort
to innovate their business operations so that cost can controlled and business operations
increased at rapid pace. In this regard entrepreneurs need to prepare strategy so that economies of
scale can be generated in the business.
Impact of small, medium and large size business firms on economy of nation
It is observed that small, medium and large size companies have positive impact on the
economy of UK. From 2000 to 2018 unemployment rate decline significantly in the nation.
Along with this, it is observed that people now are believed in self employment. Due to this
reason employment percentage in small, medium and large size firms decline to some extent
(Ugorji and Ani, 2018). Thus, it can be said that SME have positive impact on the nation
economy. People now believe in opening their own startups and consequently unemployment
rate is very low in the UK.

Figure 1Number of business firms from 2000 to 2018
(Source: Business statistics. 2018)
Figure 2 SME numbers and employment in 2018
(Source: Business statistics. 2018)

It can be seen from the image given above that number of SME are increasing regularly from
2000 to 2018 and from year 2000 to 2008 growth rate on yearly basis way very high near to 28%
to 30%. However, after 2008 this growth rate decline to 24% to 27%. In the second table it can
be seen that micro business firms cover high rate of employment in SME section. This reflects
that large numbers of people are employed in retail sector firms. Regular increase in employment
opportunities increases per capita income of people and their spending capacity. All these things
lead to fast growth of the economy of the nation. Thus, it can be said that SME play crucial role
in improving economy of the nation.
Significance of SME to growth of socio economy in nation
Small and medium size business firms have huge positive impact on the socio economy
of the nation. It is observed that in UK living standard of people improve to great extent as they
believe in opening business. Due to consistent growth in business units over years economy of
UK become more stronger then before (Aniodoh, 2018). So, it can be said that SME have
positive impact on economy of the nation. Apart from this, positive impact of SME is observed
in society of UK. This is because due to increased employment opportunity and income per
capita spending increased at fast rate in the UK. Living standard also increases in UK. Thus, it
can be said that SME play a very important role in bringing UK economy out of recession. On
different level of economy which is local, regional and national small and medium size
enterprises play a vital role in making it strong. In international market also medium size firms
are importing and exporting large number of items. Thus, it can be said that small and medium
size enterprises are not only performing well in local and regional market but also in
international market they are performing well.
Skills and traits of successful entrepreneurs
There are some of skills and traits of successful entrepreneurs and same are given below.
 Ambition: Entrepreneurs are very ambitious by nature and they always want to achieve
new heights in their business. They make difficult to achieve goals and takes a lot of risk
and use energy to achieve that objective. It is their ambitious nature which make
entrepreneur energetic in nature.

 Willingness to learn: Entrepreneurs always have very strong will to learn new concepts,
ideas and technology. It is their willing to learn new things which make them successful
businessman. This sort of characteristic is commonly observed among entrepreneurs. Ability to listen: Entrepreneurs have strong ability to listen. They with full patience listen
front person message even same is negative (Nwokike, 2018). Thus, it can be said that
communication skills are very good among entrepreneurs. Creativity: Entrepreneurs are creative by nature and it is their basic core strength and this
thing also made them different from business managers. It is creativity which play crucial
role in success of the entrepreneurs in their business. Assertiveness and confidence: Entrepreneurs are very positive by nature and they are full
of energy. It is observed that they see profit in every situation and aims at taking
advantage of every situation whether it is positive or negative. Due to positive attitude
they are always confident about their success and this is the main reason behind their
success. Risk taking: Entrepreneurs are risk taker by nature and it is common characteristic that is
observed among them. It is their risk taking behaviors which make them different from
managers.
Aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mindset
There are certain aspects of entrepreneurial personality like risk taking behavior,
ambitious, confidence on self and positive behavior etc which reflect entrepreneurial motivation
and mindset. As mentioned above entrepreneur are ambitious by nature and this acts as
motivating factor for them. They have very high positive attitude and due to this reason their
mindset is clear towards actions they need to take in order to improve performance and achieve
goals(Trofimov, 2017). Thus, it can be said that traits stated above certainly indicating
motivation level and mindset of entrepreneur. David and Simon Reuben are one the entrepreneur
of UK. They possess multiple characteristics of entrepreneur and ambition is one of them. Both
brothers have dream to have their own company. They make investment in metals and property
take risk and preparing optimum strategy which lead to huge success in the business (Tucker.,

2019). Ambition was one of the motivational drivers for them in respect to opening business in
UK. It is their positive attitude and self confidence which make them successful in their business.
Way in which background and experience can hinder or foster
entrepreneurship and link of characteristics to background as well as
experience
It is true fact that background and experience can hinder or foster entrepreneurship. This
is because if one has experience of business then in that case it can become successful
entrepreneur (Muiruri and Kwasira, 2015). Apart from this, those who have background in
business or have family business then in that case automatically entrepreneurial traits comes in
individual. There is very high probability that if individual does not have family business and
work experience newly open business can be failed to sustain fro long time period. Thus, it can
be said that background and experience can hinder or foster entrepreneurship. There is close link
between entrepreneurial characteristics and background as well as experience. This is because if
one have family background in the business then in that case entrepreneurial characteristic
evolved in individual. Thus, it can be said that skills development base if formed in individual
through family business or work experience that individual obtained by doing job at the
workplace.
CONCLUSION
On the basis of above discussion it is concluded that entrepreneurs are playing vital role
in making nation successful. Entrepreneurs open small or medium size business and do
innovation in products or services. They are full of zeal and energy as well as confidence which
make them successful in their efforts. It is also concluded that economic growth is largely
supported by entrepreneurs. This is because they promote economic activity in the nation and
also provide employment to number of people. There are number of traits that are required to
become successful entrepreneur, risk taking, confidence on self and ambitious nature are one of
them. These traits developed due to family business or work experience on job.

REFERENCES
Books and journals
Akpoviroro, K.S. and Amos, A.O., 2018. The Efficacy of Counseling in Eradicating the
Problems of Entreprenuership Education. Acta Universitatis Bohemiae Meridionalis. 21(2).
pp.1-16.
Aniodoh, A.N., 2018. Promoting Youth Entreprenuership in The South East, Nigeria Through
Co-Operatives. International Journal in Management & Social Science. 6(1). pp.148-163.
Eze, I.U. and Gladys, E., 2016. Entreprenuership Education in Tertiary Institutions of Nigeria:
Functional or Chimerical. NG-Journal of Social Development. 417(3947). pp.1-8.
Muiruri, J. and Kwasira, J.W., 2015. EFFECT OF OCCUPATIONAL HEALTH SAFETY
PLANNING IN THE IMPLEMENTATION OF OCCUPATIONAL HEALTH AND
SAFETY PROGRAMS IN STATE CORPORATIONS IN NAKURU TOWN, KENYA.
INTERNATIONAL JOURNAL OF MANAGEMENT & INFORMATION TECHNOLOGY.
10(9). pp.2470-2478.
Nwokike, F.O., 2018. PROMOTING ENTREPRENUERSHIP IN BUSINESS EDUCATION
PROGRAMME IN UNIVERSITIES IN SOUTH EAST NIGERIA. Nigerian Journal of
Business Education (NIGJBED). 4(1). pp.123-134.
Sallehudin, H., Razak, R.C. and Ismail, M., 2015. Factors influencing cloud computing adoption
in the public sector: an empirical analysis. Journal of Entrepreneurship and Business. 3(1),
pp.30-45.
Sener, S. and Hacioglu, V., 2017. INNOVATIVE ENTREPRENUERSHIP UNDER
UNCERTAINTY. Journal of Business Economics and Finance. 6(2). pp.168-176.
Trofimov, I., 2017. Systemic Analysis of Trade Liberalisation: Policy Entreprenuership and
Behavioural Variables in a Two-Legal Game Framework. Economia
Internazionale/International Economics. 70(2). pp.217-244.
Ugorji, U. and Ani, F., 2018. ENTREPRENUERSHIP EDUCATION: A PANACEA TO
GRADUATE UNEMPLOYMENT IN A DWINDLING ECONOMY. Nigerian Journal of
Business Education (NIGJBED). 4(1). pp.69-75.
Online

Business statistics. 2018. [PDF]. Available through:<
file:///C:/Users/MY%20PC/Downloads/SN06152.pdf>.
Tucker., J., 2019. [Online]. 10 of the uk’s greatest entrepreneurs. Available through:<
https://www.headspacegroup.co.uk/10-of-the-uks-greatest-entrepreneurs/>.