Report on Entrepreneurship and Small Business Management - UK Economy

This report provides a detailed analysis of entrepreneurship and small business management, with a specific focus on the UK economy. It explores the significant impact of small and medium-sized enterprises (SMEs) on the UK's GDP, employment, and various industries, including retail and construction. The report also examines the importance of start-ups and small businesses in fostering social economic development and generating new wealth. Furthermore, it delves into the characteristics and traits of successful entrepreneurs, contrasting them with managers, and highlighting the role of passion, creativity, and other key attributes. The report also touches upon the impact of entrepreneurial mindsets and backgrounds on their work.

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION ..........................................................................................................................4
TASK 2............................................................................................................................................4
P 3 affects of the smal and medium-sized enterprises on UK economy......................................4
P 4 Importance of small business and start-ups to the growth of the social economy................6
TASK 3 ...........................................................................................................................................7
P 5 Characteristics and traits of the successful entrepreneurs ....................................................7
P 6 Entrepreneurial personality motivate their mind set .............................................................9
P 7 background and experience of the entrepreneur .................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneurship refers to the act of developing the enterprise or business with the aim of
generating the more profit. It can also be mean as to transform the world or solving the problem
of the world by building the enterprise with innovative ideas. This assignment is based on the
entrepreneurship and management of the small business and how the entrepreneurs manage their
enterprises. This assessment will include the importance and impact of the small medium-sized
enterprises on the different European countries and further more the impact of the small medium
enterprises on the different industries like retail and construction can be seen with the help of this
report. From the help of the different data and statics impact of the micro and small enterprise
would be identified. Different skills and traits of the successful entrepreneurs that differentiate
them from the others. Mind-set of the entrepreneurs will be defined that motivate them. Lastly
experience and family background of the entrepreneurs affect their work.
TASK 2
P 3 affects of the smal and medium-sized enterprises on UK economy
Small and micro business have the great impact on the growth of the UK economy as they
contribute a lot in the GDP of the country and directly help to increase the economic value of the
UK country
As, in the beginning of 2018 year, there were 5.6 million Small business in the UK country. A
compared with the last year data and statics, private sector business of the UK had fallen down
by 0.5% i.e. (-27,000 business) and the employment of private sector have increased by 2% i.e.
(+304,000). Small businesses in the UK country have been accounted for 99.3% which is the all
of the private sector business (Burns and Dewhurst, 2016). In the beginning of the 2018 small or
medium sized enterprises are 99.9% of all the private sector business.
Between the year of 2000 and 2017 there have been sustainable growth in the business
population in each year. But between the year of 2017 and 2018 a great fall have been noticed
which was 27,000 (-0.5%) but even after that still more business in the year of 2000 (Hatten,
2015). Majority of the growth have been recorded with the non-employee business in the year of
2000 which accounted for 87% of overall increment.
As according to the new findings by the Hampshire trust Bank, in the top 10 cities of the
UK, small medium enterprise will contribute around 24 billion t the economic growth of the Uk

economy by the year of 2025. In which in year of 2016, 19% increase from the 20 billion
contributed. London, which has the large number of small medium enterprises are operated than
any other city, has contributed a lot to the growth of the economy by adding the gross value
figure of 152 billion in 2016. It has forecast that, it can be rise up by 19% to 181 billion in the
year of 2025.
As SMEs are being referred, that type of the companies which have less than 250 employees
working in it. But in the UK country micro business has been accounted for the majority of the
SMEs which helped to made up around 96% of total in the year of 2013. Whereas micro
businesses are being referred as the enterprises in which fewer than nine employees work. These
kinds of the micro business help to make 4.6 million companies in the UK country (Burns,
2016). However as according to the figure of the parliament, these micro companies have
majority of enterprises in Britain, which accounted for the 32% employment and 18% of the total
turnover.
Impact of political region
SMEs of the UK country, not only affect the economy of the country and its growth, but
also affect the political region of the country as well. By the help of the economic development
of the country they affect the political situation and affect the its strategies. These small medium
enterprises force the political situation of the country to make the strategies and policies for the
growth of the their samll and medium enterprises as well so that they can contribute more in the
country's development.
Impact of SMEs on retail and construction industry
SMEs affect a lot to the retail industry of the UK. As this give the high percentage of the
employment to the retail industry in the UK by adding the large number of the retail stores in the
country. The turnover of the retail industry was £500,00 which has been arises in the year of
2017 from 54 pc to 64pc. Retail industry with the help of the SMEs represent the large number
of the and majority of the GS1 Which is UK's 39,000 strong community. In this supermarket
business are the most common way to increase the market for the SMEs and specially in food
and drinks product. In this way the SMEs of the UK country has affect a lot and helps to increase
its business at great extent.
However the SMEs also affect the construction business of the UK country as well.
These are the vital element of that helped to the increase the and drive it better to construction

industry. In this Germany can be seen as the highly successful driving expansion of the UK
economy in the construction industry through the growth of the small construction business. This
also provide the large amount of the opportunities within the construction industry. It has been
found that 76% of the employment in the construction industry. But as according to the Home
builder federation report visibility of the supply chain and approx 7% of the UK construction
workforce are been seen as the EU nationals.
Impact of SMEs on EU countries
SMEs has great impact on the Germany country. In the year of 2014 it has been noted
that, between 20 to 499 employees were sharing the exporting of the SMEs which is almost the
90% of the total number, and through which SMEs of the German country earn the turnover of
50.9% from the direct and indirect manufacturing.65.5 percent of the manufacturing earned the
went to the Europe. Only SMEs constituted the 17.5 % of the export in the Germany in the year
of 2015. In the year of 2015 gross value added per person employed by the German micro
enterprises was 42,000 euros. On the other hand through the small enterprises 10 to 19 and 20 to
49 employees has gross value added per person of 40,800 and 46,900 euros.
In the UK small medium enterprise affect the lot to the economic and regional
development of the country. As according to the report of the RSA 55 percent of the small and
medium enterprise are not being affected by and survive more than five years. In the year of the
2014, 5.2 million of the UK business are from SMEs that constituted the high growth of the
economic development of the UK country. At the time of Brexit there were 66 percent of the
company had affected and then 22 percent of the small businesses started to preparing their
business.
P 4 Importance of small business and start-ups to the growth of the social economy
Small business and start-ups play the vital role in the social economic development of the
UK country. In which one of the biggest importance in the development of the number of
employment in the country, through which social economy of the country get help to become
better country.
Entrepreneurial ventures play the important role by generating the new wealth. They help
the society by creating new improved products in the market so that can help to make
improvement in the society and increase the living standard of the people. Small business and

start-ups not only help the society but also help the local market of the UK country by
developing new wealth products.
However by offering the new developed and improved unique products in the market and
services start-ups and small business break down the traditional market and their products. This
has also reduced the dependency on the obsolete system and the further technologies. This will
help the people to increase the productivity of the business and income of the society. This kind
of the innovation helps the people and makes enable them to be focus on their job without taking
any tension and worrying about basic necessity like water. So that they can give more time to
increase the economic growth of the country.
Some of the famous start-ups use their finance in the good deeds like education to the
public, provide health support etc. in this way small enterprises and start-ups play important role
by contributing a lot to the social economic.
It has been also predicted that, in the next three year SMEs will provide the extra 250,000
new jobs (Runyan and Covin, 2019). Along with the job creation, SMEs and start-ups also helps
to provide the sufficient proportion of the turnover of the UK. As according to the DBIS, SMEs
provide the annual turnover of £1.8 trillion combindly which is 47% of the total private sector
turnover.
TASK 3
P 5 Characteristics and traits of the successful entrepreneurs
Entrepreneurs are the one who take the risk and start their enterprise in the market with
having the innovative ideas that make them successful in the market as compare to the other
entrepreneur. They are the initiator or the leaders that brings the new business idea with their
ventures (Amato and et.al., 2017). Entrepreneurs are the owner of the any business ventures.
They are the responsible person of their enterprise and also a risk Bering person who can take
any kind of the risk for their business.
Whereas managers are not the owner of the enterprise but responsible for all the
management activities of the enterprise. And group of the people. Day to day job of the manager
is to manage all the people and employees of the organization and make sure that organization is
running smoothly. Managers also possess same qualities like entrepreneurs like, leadership,

accountability etc. but they have differences as well. However managers of the enterprise also
the most responsible person but they not have the ability like entrepreneur to take any kind of the
risk.
Entrepreneurs are the owner of the business and the managers are not the owner but are
the responsible for all the management and administrative activities f the enterprise (Schaper,
2016). Entrepreneurs are visionary people and bear all the financial risk whereas manager is only
the employee of an enterprise, who only does their jobs for the share of salary. They does not
bear any risk. Entrepreneurs only focus on the starting their business and later to expand their
business on the other hand managers only focus on the daily activities of the business to smooth
running the business operations.
Characteristics and traits of the entrepreneur
Passion: One of the traits of the successful entrepreneur is the passion towards to their business
that make them different from the other entrepreneur (Saleem, 2017). This passion helps them to
do anything and take risk for their business because they love their business a lot and give hours
to their business to make it successful and flourish in the market as compare to the other
entrepreneur.
Creativity: Another trait or the characteristic is the creativity. They have creative mind, which
help them to do something new and try to bring some innovative products and services n the
market with their products. This creativity of the entrepreneur liked by the customers as they do
not get those innovative and new products from anywhere else in the market. And this creativity
make their business successful.
Confidence: Confidence is another traits, that make the successful entrepreneur different from
others. They have the confidence in their all deeds for the business to make it successful in the
market (Doern, R., 2016). As all the strategies, and policies and decision have been taken by
entrepreneur after the deep research of the market. In this way they have confidence in their
decisions for the business.
Risk taker ability: Risk taking ability is one of the important traits for the successful
entrepreneur. They do not hesitate to take any risk that can helpful for their business to make it
successful in the market. They always ready to bear risk whether it is for their business or for
their employees that help to increase the productivity of their business and gain the competitive
advantage (Dunne and et.al., 2016).

P 6 Entrepreneurial personality motivate their mind set
In order to identify the mind set and personality of the Croft Simons the Ocean model or
the big 5 model of the personality trait can help. In this model the five dimensions are being
considered that underlying the personality trait of the individual. These five dimensions are:
Openness: As Croft Simons is not a close minded people, she is the open minded personality,
which gives the imaginative and insightful personality to her. This openness help the Croft
Simons to start its popcorn business with new mind set in the market (Goss, 2015). As she knows
that, there is already variety of popcorn business are running but this openness personality of the
entrepreneur Croft Simons will help her to become successful in the market. With having the
open mind, this give the wide scope to think beyond their boundary and can make strong
strategies for their business.
Conscientiousness: This includes the people with high degree of Conscientiousness that means
people are prompted and reliable. This personality trait explains the personality of the people that
are methodical, organized and thorough (Storey, 2016). As according to this trait Croft Simons
also have conscientiousness personality, through which they planned all the strategies for their
business. She has organized personality that helps her to organize all their work and strategies
with the perfect method. This also helps the Simons to effective operations of their corn
business.
Extraversion: This personality trait descried that the personal has the good ability and energy to
interact with the number of people and also include the personality trait like talkative, energetic
and assertive. As according to this, personality of Croft Simons is same like extraversion this
will help Croft Simons to interact with number of people and make strong relation with their
customers and promote their business of organic popcorn. This helps to make the new contact
with the suppliers, investors and customers that can help the Simons in their business and growth
of its business.
Agreeableness: This personality trait of the big five model explained that, people are friendly,
cooperative, kind and affectionate (Welter and Gartner, 2016). Croft Simons is also like this, her
personality also match with this dimension. As Croft Simons have kind, affectionate nature and
also cooperate with their staff in running the business and production services. This helps the
Simons to effective operations and performance of their staff, by helping and guiding them and
cooperate them in every step when they feel difficulty.

Neurotics: This kind of the people sometimes called as the emotional stable, this considered as
the people are moody and tense. As Croft Simons have also emotional stability, she does not get
emotional on every little thing that makes her weak and can affect her business and its
operations. Emotional stability helps the Simons to make balance and give the stability to make
strategies and decision making ability. Else this emotional ability can affect the decision of their
business.
Maslow’s Personality theory
In this theory of the personality and motivational theory five level of the motivational stages
have been explained that help the people to get motivated by fulfilling their all needs in their life
(Karadag, 2015). These needs of the people also help to get motivated to the entrepreneur when
they see that their enterprise helps to fulfil all their needs. In this theory hierarchy needs are:
When Croft Simons is able to fulfil its all the basic or physiological needs through their
business like food, air water, excretion, then she get motivated to do more hard work for their
enterprise. Simons feel that it is the best way to fulfil their basic needs through her business of
Corn and this motivates her a lot.
As her business of the organic popcorn gives her security like, she is owner of enterprise
so no one can exchange her position this give the security and motivate her to run their enterprise
successfully. This security of the job and she do not have to be follow any others order, that have
to motivate her to do more for their business of Corn and grow it to earn more profit.
In the enterprise she get attached to each and every staff, and work as family, where she
feels like belongingness and love from others and from customers as well. This love and
belongingness help her to get motivate and work with passion. As through this belongingness
motivate her to take any kind of risk when their staff is supporting and cooperate with each and
every situation.
Her business of the popcorn give her confidence, self-esteem and respect from others as
she has the ability to run its business in her own terms. This motivates her to bear any risk for
their business which makes it successful (Mugler, 2017). This also give the self confidence to
their business when she runs their business in her own terms and condition for the benefits of the
customers and employees.

Another need is the self-actualisation, through their enterprise, Croft Simons get the
problem solving skill, get more creativity from their employees and other clients. Which give her
self-actualisation that which is suitable from her in the business.
P 7 background and experience of the entrepreneur
Background and experience of Jeff Bezos
Jeff Bezos is the founder and chief executive of the biggest online store Amazon and ahe
alos be considered as the richest people in the world by his successful business ventures. He was
born in the year of 1964 in New Mexico. Jeff had extreme love for the computers and that is why
he studied electrical engineering and computer science at Princeton University (Mugler, 2017).
after completing the graduation then he started to work for wall street and then become the
youngest vice president and became the youngest senior vice president in the year of 1990 of the
D.E. Shaw investment firm. After some year he left his job only to open Amazon.com online
store.
He started his work in the direction to open Amazon in his garage with the help of the
umber of their friends and employees, and there they started to develop software for the Amazon
site. And named it after the South American river, Amazon. He sold his first ever book in July
1995. After in few times Amazon had become the leader in e-commerce, which was user friendly
site and open 24 hours. In 1999 he offered some CDs, then videos as well. Later he invested in
other virtual sites as well.
Background and experience of Bill gates
Bill gates is famous American entrepreneur and the computer programmer, who is the
founder of the largest company microsoft. software company Microsoft. Bill Gates was born in
the year of 1955 on October 28. His father was lawyer and mother was the board of directors for
first interstate Bancsystem. He studied in Lakeside school, and where his interest toward
computer had developed. At the only 13 year he created the first computer program on school
computer. And in the high school he had computerized school’s payroll program along with
some friends.
In the year f 1975, Gates and Paul Allen founded Microsoft with collaboration, they used
BASIC programming language. In year of 1980 approached by international business machine
(IBM), and then wrote the BASIC interpreter for IBM (Oviatt and McDougall‐Covin, 2015).

Soon Microsoft developed operating system named windows which had become very popular,
and also acquire 90% of the market share.
In this way Bill Gates and Jeff Bezos’s educational background, family financial status,
support from friends and family, passion toward the work all make up the mind of them and
encourage them to be an successful entrepreneur in the world as compare to other by having the
innovative ideas and bearing risk as well.
CONCLUSION
From the above assessment has been summarized that micro small medium enterprises and
start ups play the vital role to development and growth of the economic development of the UK
country. As the 99.6% of the employment has generated by the small medium entrepreneurship
and start ups of the UK country. social economy of the UK country also being get increased by
these small medium enterprises by providing innovative products and services which are not
being provided by the other large companies. It has been also concluded from the report that
entrepreneur and manger both are the different personality and have different job role, as
entrepreneur is owner whereas managers employee of the enterprise who manage all the
managerial activities. It has analysed that being a successful entrepreneur must have some
characteristics and traits like passion, creativity etc that make them different from others. From
the big five model and Maslow’s motivational model it has been identified that different needs of
the people motivate them to be an entrepreneur.