Small Business Growth and Entrepreneurial Skills Analysis

This report examines the critical role of entrepreneur skills and risk tolerance in small business growth. It begins with an introduction that reviews the literature, highlighting the importance of entrepreneurial abilities such as innovative thinking, decision-making, and effective management in ensuring business success and profitability. The report delves into the nature and complexity of small business enterprises, considering both the UK and global contexts, and the influence of external factors like economic, social, and political conditions. The main body of the report discusses the argument that small business growth hinges on the entrepreneur's skills and attitude towards risk, supported by real-world examples of successful entrepreneurs like Bill Gates and Richard Branson. It also addresses the challenges faced by small businesses, such as government regulations and employee satisfaction, and the entrepreneurial process, including discovery, business plan development, resourcing, and company management. Finally, the report concludes by reiterating the significance of entrepreneurial skills in fostering business growth and adaptability.

Issues in Small
Business and
Entrepreneurship

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
‘Small Business growth is solely dependent on the skills of the entrepreneur and their attitude
towards risk.' Discuss. ................................................................................................................3
Nature and complexity of small business enterprise in the context of prevailing conditions in
both the UK and a global context................................................................................................5
Determinants of business growth and analyse alternative theories on the entrepreneurial
process.........................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

Project title :
‘Small Business growth is solely dependent on the skills of the entrepreneur and their
attitude towards risk.'
INTRODUCTION
Literature review is a survey which is trough certain sources like books, journals, articles
etc. these are related with specific topic and research question. In literature review, investigator
researched about the research objectives question which are discussed in the research report. It is
the written part of research, dissertation (Gupta, Wieland, and Turban, 2019). In order to
analyses the work. The title of this literature review is small business is solely dependent on the
skills of entrepreneur and their attitude towards risk. This report covers the nature and
complexity of small business enterprise in the conditions of UK country and in a global context.
There is also a discussion of evaluation of determinants of business growth. Also there is the
analyses of alternative theory on the entrepreneurial process.
MAIN BODY
‘Small Business growth is solely dependent on the skills of the entrepreneur and their attitude
towards risk.' Discuss.
According to the views of Sayal (2021), Entrepreneur is the French word which means
“To undertake”. Now in this era, this term is applied to the person who is starting up of new
businesses and enterprise. Then next is Entrepreneurship is refers to the recognition of
opportunities like demands, wants, challenges and issues. There is a use of innovative ideas and
innovation which are to be used for new businesses, thoughtfully and planned venues. An
entrepreneur is an individual who is engaging into entrepreneurship. In context of UK economy,
it has given more importance to small and medium enterprises in today era. According to the
research small business enterprises fail within 2 years and has set up 50% in 5 years (Role of an
Entrepreneur in the success of an SME, 2021). Even, small medium enterprises has lead to
increase in employment rates which has results in increase in GDP rates. According to the
author, it is found that businesses are started off for various reasons, numerous aspirations and
attitudes. Researcher now a days focusing on small business growth and the role of small
business owners and business man. It is argued that small businesses growth is mainly depends
on skills of entrepreneur and their capability. As this argument is true because it depends truly on

entrepreneur that how they are using their skills in managing their enterprises. If the entrepreneur
is well qualifies and use hi proper skills like innovative skills, proper decision making skills then
small business could earn more profits (.Roundy, 2017). On the other hand if entrepreneur is now
suing his skills on appropriate manner then this results in deceasing of their profitability. Also
there could be dissatisfaction among employees. And they could leave from the business very
early.
According to Pierce (2021), The small medium enterprises can have a significantly role
on economy. Therefore, the growth of business is surely depends on the development of
entrepreneurial skills. For the smooth running of small businesses, they needs well entrepreneurs
to start them and this will results in building their growths and opportunities. But on the other
hand there are some of the challenges which have to faced by small business and entrepreneurs
in running of their business (Biggest Challenges Small Business Owners, 2021). These
challenges are government rules and regulations, federal income taxes, hiring of new employees
and employees satisfaction. These challenges could decrease the business productivity and
efficiency. As entrepreneur should have to use effective skills to solve all theses challenges and
issues. So that employees could work according the provided direction or guidance. Entrepreneur
should providing proper training and development sessions to the employees so that they can
perform their functions in effective manner. Entrepreneur skills like proper communication,
leadership skills, risk tolerance skills, financial skills and critical thinking skills. These skills
should be used by entrepreneur to enhance business functions and enhance employees
productivity. There are certain successful entrepreneurs who are currently running their
enterprises in successful manner. These are Bill gates, Richard Branson etc. these entrepreneurs
have make use of their skills and make successful enterprises. So, this is concluded that small
business growth depends on the skills of entrepreneur and their attitude towards risk.
Entrepreneur process helps the entrepreneur in making effective running of the small business.
Skills and capabilities helps the entrepreneur in presentation good and right information to public
and employees both. In further, small business growth depends on culture business is using, the
product and services they are providing. In addition to this, if there is a lack of entrepreneurial
skills then this will results in decreasing in productivity of business (Kallmuenzer and et.al.,
2019). If entrepreneur lack his knowledge then this will seen on that business.

Nature and complexity of small business enterprise in the context of prevailing conditions in
both the UK and a global context.
According to the Gupta and Guha (2021), complexity level is depends on the number of
interconnection and the effects on small business. A small business relates to the number of
integrated stakeholders that might be small scale to the proprietor of business. It defines that if
the business of management grows then the number of interconnection also get to grows. The
process of decision making takes is complex in organisation that takes for long periods. It
concentrates on the business surrounding that defines the term of forces that are not internally
attached with the business and the forces of the management (Journal of Innovation and
Entrepreneurship, 2021). The economical, social, political, technological and other factors that
operates the external source of management in the business. As there are various sort of factors
that will contribute to management success. It might be also analysed in the form of qualitative
features that relates to the market position, quality of product and goodwill of the brand.
On the contrary, a small business owner's concentrates on the goals and targets of the
management to manage their stability, growth, sales and profit. It termed as the revenue
generation, value components and contraction in terms of product of the business management.
Small business enterprise is advised as the backbone of the economy. It contributes their factors
as importantly in high level of development of employment, output, promotion of goods ad
services. Market situation have changed for small industries as economic reforms in an
organizations that are in constant pressure to perform well the deliver quality to support their
functional expenditure. It is important to preserve in present market place to meet consumer
manner on the basis of abilities and skills.
Government of UK has involves various promotional terms and policies for the
promotion of this section that include small scale business product reservation, structural
support, undeviating and grants, specialise classification in acquisition of equipments, facilities
of roles and responsibility, attributes of power (Levushkina, and et.al., 2018). Small scale
company provides the support to large scale industry by supplying product and services in
limited quantity to accommodate the competitive advantages as effectively. Development of a
business is ascertained by the proportion at which experts of management staff might set their
programs and execute them in a settled manner. Small scale sector has explained that the
extrinsic surrounding of the business is terms as the representation in the mind set of the

enterpriser. Organizational actions that are governed by productive opportunities and challenges
that are termed a dynamic action as between the internal and the external surrounding of
business. The primary objective of the task is to scope the break even factor to manage the
capable cash flow that are can be retained for meeting day to day needs of improvement and
regenerate in the small scale enterprise.
Determinants of business growth and analyse alternative theories on the entrepreneurial process
According to the views of Linton and Solomon (2017), it can be concluded that an
entrepreneur is an individual who uses innovative ideas for staring a new business. The
Entrepreneurial process consists of different steps which includes following - Discovery- It is the
initial stage in entrepreneurial process which includes generation of business ideas by a person.
This stage is important because in this stage after the generation of ideas is done, a proper
evaluation of the ideas is also performed. In the discovery entrepreneur demands various ideas
and choices from various stakeholders in a business like employees, channels and technical
partner in order to identify various opportunities for a business (Entrepreneurial process., 2021).
It is essential for a business to drive new opportunities in the market and to explore various
options available to perform business functions. Developing a business plan- After the
evaluation and identification of various opportunities available in the market an entrepreneur
formulates a business plan for conducting business operations. Developing a business plan is not
easy for an entrepreneur so, assistance of business advisor is important in the development.
Developing a business plan includes all the necessary strategies which a business has to follow in
a specific period of time.
Resourcing- Resourcing is defined as a process of arranging manpower and finance for a
business. After the development of a proper business plan, it is important to arrange human
resource and funds for the business. An entrepreneur performs various operations to arrange
effective human power for conducting business operations. It depends on the nature of business
that what type of resources it needs to survive in the market (Linton, and Solomon, 2017).
Managing the company- Once the business is ready to perform its operations, an entrepreneur
starts managing the business by deploying professional management in the operations. It is
important to have a proper management system in the business as operations are hard to handle,
for a business management acts as a backbone. Managing the company is one of the most
important stage in entrepreneurial process, an entrepreneur has to also define hierarchy and

structure of management in a business in order to achieve favourable results. Harvesting-
Harvesting is the final stage of entrepreneurial process which includes planning related to growth
and development in a business. It is important for a business to expand its operations in the
market in order to generate more revenue. Harvesting provides expansion of business in the
market as well as it generally facilitates development in a business. In harvesting stage an
entrepreneur formulates a strategic plan which contains all the necessary measures to achieve a
sustainable growth in business (Malecki, 2018). An entrepreneur has different ways to manage
the innovation and do something new that is different from normal individuals. It is
responsibility of entrepreneurs to use their skill for enhancing the business performance and
productivity.
CONCLUSION
From the above report it has been concluded that entrepreneurship is the process of
function of all business activities which is performed in a business or organisation. As to start a
business an entrepreneur should have to focus on its skills and abilities which will helps them in
making all decision perfectly and results in smooth running of the business. There are various
successful entrepreneurs who are running a successful enterprises. These are Bill gates, Richard
Branson, Laurence Graff etc. They are all using their entrepreneurial skills to motivate their
employees and applying better marketing and promotional strategy which helps them in running
effectively their organisation.

REFERENCES
Books and Journals
Gupta, V.K., Wieland, A.M. and Turban, D.B., 2019. Gender characterizations in
entrepreneurship: A multi‐level investigation of sex‐role stereotypes about high‐growth,
commercial, and social entrepreneurs. Journal of Small Business Management, 57(1),
pp.131-153.
Kallmuenzer, A and et.al., 2019. Entrepreneurship in tourism firms: A mixed-methods analysis
of performance driver configurations. Tourism Management, 74, pp.319-330.
Levushkina, S.V and et.al., 2018. Methodology for assessing the sustainable development of
business structures. Research Journal of Pharmaceutical, Biological and Chemical
Sciences, 9(4), pp.938-950.
Linton, J.D. and Solomon, G.T., 2017. Technology, innovation, entrepreneurship and the small
business—technology and innovation in small business. Journal of small business
management, 55(2), pp.196-199.
Malecki, E.J., 2018. Entrepreneurs, networks, and economic development: A review of recent
research. Reflections and extensions on key papers of the first twenty-five years of
advances.
Roundy, P.T., 2017. Social entrepreneurship and entrepreneurial ecosystems: Complementary or
disjoint phenomena?. International Journal of Social Economics.
Sheikh, A.A., Shahzad, A. and Ishaq, A.K., 2017. The growth of e-marketing in business-to-
business industry and its effect on the performance of businesses in Pakistan: Marketing
success. International and Multidisciplinary Journal of Social Sciences, 6(2), pp.178-
214.
Online
Role of an Entrepreneur in the success of an SME, 2021. [online] Available through
<https://www.academia.edu/22246863/Role_of_an_Entrepreneur_in_the_success_of_a
n_SME>
Biggest Challenges Small Business Owners, 2021. [online] Available through
<https://www.entrepreneur.com/article/362771>
Journal of Innovation and Entrepreneurship,2021. [online] available through <https://innovation-
entrepreneurship.springeropen.com/articles/10.1186/2192-5372-2-15>
Entrepreneurial process. 2021.[Online]. Available
through<https://businessjargons.com/entrepreneurial-process.html>